I D C C U S T O M E R S P O T L I G H T. H o s p i t a l Optimize Its Print Envi r o n m e n t a n d
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1 I D C C U S T O M E R S P O T L I G H T K Y OCERA H e l p s B u r n s i de War Memorial H o s p i t a l Optimize Its Print Envi r o n m e n t a n d Gain Substantial Bottom - L i n e B e n e f it July 2014 Sponsored by KYOCERA Document Solutions Introduction Burnside War Memorial Hospital is a nonprofit, community hospital located just outside of Adelaide, South Australia. The facility, which employs more than 300 people, operates 24 hours a day, 365 days a year and is committed to providing acute medical, surgical, and obstetric healthcare for patients and clients as well as their families. Approximately five years ago, the hospital embarked on a plan to rationalize its fleet of printers, fax machines, copiers, and multifunction devices. The genesis of this effort came from a growing dissatisfaction with existing printer and MFP equipment and providers. This dissatisfaction was related to issues such as service quality, the expense of outsourcing color to meet quality requirements, and the general lack of awareness around the hospital's total costs of printing. The contract agreements associated with this legacy equipment were coming to a near-term end, so the hospital's IT staff determined that a change might be warranted. This effort Solution Snapshot Organization: Burnside War Memorial Hospital Operational Challenges: Existing printing assets were old and not well supported; print costs were not understood Solution: Managed print services (MPS) with KYOCERA Document Solutions Project Duration: Ongoing Benefits: Reduction in direct printing and print parts/supplies storage costs; increased staff work efficiency resulted in opening up the business opportunity to vendors other than present suppliers in order to gain insight into making improvements in the hospital's print and document processes. This first engagement led the hospital to make a substantive change in its approach to print with a managed print services (MPS) contract with a new provider KYOCERA Document Solutions. This yielded not only a fundamental change to the hospital's print environment but also significant cost savings. A recent contract renewal has enabled the hospital to make some tweaks and adjustments to the original agreement in order to demonstrate continuous improvement. IDC 1728
2 Implementation Since Burnside was initiating the exploration of a dramatic change to its existing printing and imaging fleet, the hospital opened up the business opportunity to several vendors, including current and new suppliers. As part of the evaluation process, each supplier candidate had to conduct an assessment of the hospital's current print environment. The assessment included analyzing print behavior across the organization, determining requirements, and making recommendations based on the proposed program. Burnside's IT staff also visited the candidates' product showrooms to test equipment and to make sure that products could adequately perform conventional print tasks as well as produce output for unique applications done in the hospital. Discussions between Burnside's IT department and a number of the hospital's department heads were an important element in the process. These discussions detailed print usage in each department and identified a number of areas of specific concern that needed to be addressed in the rationalization of Burnside's printing fleet: Service. One area of concern was that Burnside's maintenance expectations were not being met, and the situation seemed to be worsening, with a notable decline in service response. Because Burnside is a 24 x 7 operation, a 4-hour turnaround time on service calls was deemed a "must have" in any future print partnership. Costs. Print costs were unknown and unmanaged. Thus, the selected provider needed to uncover present costs and offer a plan in which costs could be measured and reduced. Part of this initiative was to improve printer supplies management. In a facility that never closes, running out of toner was not an acceptable option for Burnside. Software compatibility. The hospital standardized on a specific third-party document accounting software program to track print usage. The selected printer/mfp platform had to work with this application, or it would be eliminated from consideration. Some vendors that recommended their own branded solution made the mistake of thinking this optimization for their own platform was an advantage. In actuality, Burnside desired a more "device agnostic" solution in order to have the flexibility to track any brand in its printing fleet. Specialty applications and media support. While the hospital produced most of its output on conventional office paper, the printers and MFPs also had to support certain specialty media types. Frequent mass mailings required envelope printing support in an envelope-dedicated tray (not fed through a multipurpose tray). Another specialty application was the ability to print on an A4-sized sheet of labels to produce patient wristbands or print information to be adhered to documentation in a patient record. Ease of use. The existing portfolio of multiple brands led to some user confusion over device drivers and settings. Burnside wanted to consolidate its perceived "disjointed" fleet, which was difficult to manage under multiple service contracts. While there was some initial skepticism about being a lesser-known brand in South Australia, KYOCERA won the opportunity by demonstrating the benefits of its MPS approach, particularly with emphasis on cost per page and overall cost management. KYOCERA's message resonated with this nonprofit community hospital, where costs are closely scrutinized. Additionally, KYOCERA was able to meet the hospital's requirement for a 4-hour service response time, and KYOCERA's printer and MFP fleet met all the software, media, and ease-of-use requirements mandated by the hospital in the product evaluation testing period IDC
3 Specifically, KYOCERA took the following actions as part of this beginning engagement: Replace legacy single-function printers, faxes, and copiers, as well as older MFP equipment from multiple vendors, with KYOCERA printers and MFPs. The consolidation provided a number of benefits, including a single device management solution and one servicelevel agreement for the fleet that met Burnside's 4-hour response time requirement. The same print drivers used across the fleet offered an ease-of-use consistency for hospital staff that was previously unavailable with a mixed fleet. Automate processes. Automated meter reads and supplies replenishment provided efficiencies for managing equipment and ordering toner once current supplies dropped to a specified level (an estimated 10 15% toner capacity remaining in any device triggered an order). Create consistent cost per page. Both monochrome and color costs per page were standardized across the fleet so that users did not have to be concerned about which device to use from a cost perspective. Under the latest contract, Burnside indicated some current cost variability but determined that it was minor. The hospital is also taking advantage of KYOCERA's 3-tier color pricing program, which allows cost flexibility on color by charging different per-page costs, depending on coverage. Instead of being charged for a full-color page when a black-andwhite text page incorporates a small color logo, Burnside is charged at a much lower rate. Challenges The customer did not note any major challenges in the implementation. In fact, Burnside indicated that KYOCERA's service flexibility was especially appealing. Specifically, Burnside mentioned that KYOCERA technicians who have responded to service calls have gone beyond the original requirements of the calls to check other devices, even non-kyocera equipment. Prior to bringing in KYOCERA as its printer/mfp supplier, Burnside felt that other technicians would check only the equipment on their work order. If there are any challenges, Burnside pointed out that they are mostly related to the usability of the equipment. That is, more frequent education, training, or demonstrations could show how much more could be done on the KYOCERA printers and MFPs. While document accounting is currently used on the equipment, Burnside is looking toward more fully exploiting the MFP scanning capability as part of a digital workflow solution in the future. Benefits Burnside staff members did their own internal examination and calculations to determine the benefits of the KYOCERA managed print solutions. The results from the initial MPS endeavor were impressive. An 85% administrative workload reduction. Burnside estimates that an 85% administrative workload reduction was achieved by automating processes. Much of the older equipment that was near end of life was not covered under warranty or under any regular maintenance contract. The heavy onus of supporting this older equipment, which was showing signs of deteriorating performance, was left to the hospital's internal IT staff. The MPS contract with KYOCERA reduced the overall device fleet to lessen support needs, brought in new equipment that didn't require as much maintenance, and automated support calls that were logged and more efficiently managed in software IDC 3
4 The elimination of a $4,000 storage cost. An additional administrative workload gain was made in directly shipping toner to the location of the KYOCERA printer or MFP versus a centralized storage location for toner and parts. This helped eliminate $4,000 of inventory costs to store parts and toner cartridges. IT staff time savings allowed for deployment to other critical IT tasks. Burnside's IT staff achieved a 30% time savings by reducing print support requirements. The hospital maintained the same number of IT staff employees, but the improved workload efficiency enabled this group to work on more complex IT issues that revolved around server and network management rather than printing equipment. A 35% reduction in overall printing costs. A 35% print cost reduction was achieved by using third-party document accounting software to gain knowledge of what each printing device was producing. The increased knowledge of employees' printing behavior has enabled Burnside to improve its IT decision making. Regular reviews are now conducted to ensure that the print environment continues to run at peak efficiency. The document accounting knowledge has also helped change employee printing behavior. Burnside estimates approximately $450 in savings per month by using the software to better manage employees' printing behavior. For example, if an employee attempts to print in color, a pop-up alerts the user to the costs of printing in color versus printing in black and white and asks if the user wants to proceed. Oftentimes, the user will choose to print in black and white as a result of knowing the cost differential between black-and-white printing and color printing that is charged back to his or her department. Another substantive cost savings was achieved with respect to color use. The hospital is now producing more of its marketing materials in-house with KYOCERA's color printers and MFPs to save on expensive outsourced print costs. Greater printer/mfp ease of use. While not a direct financial influencer, employees are generally happier about the consistency and "look and feel" from a sole vendor versus having multiple brands that operate differently from each other. A high level of satisfaction around KYOCERA's sensitivity to the environment. KYOCERA printers, MFPs, and toner cartridges are packed with cardboard versus a lot of plastic. While KYOCERA's environmental efforts were not a factor in the decision-making process, they have been noticed by hospital staff as a strong demonstration of the company's "green" credentials. Burnside reported that its overall satisfaction with the first MPS engagement led to a recent contract renewal with KYOCERA. The hospital indicates that ongoing refinement of the relationship will enable it to make continued gains in its print environment. Burnside's advice to companies that are considering a print management initiative is to first make the effort to better understand their current print environment. Potential print management adopters need to gather the supporting statistics that identify the costs and where the greatest needs are located. Consistent monitoring over a three- to six-month period will help an organization make the best decision possible around the deployment of devices and ongoing management of these assets. Methodology The project and company information contained in this document was obtained from multiple sources, including information supplied by KYOCERA, questions posed by IDC directly to Burnside War Memorial Hospital employees, as well as other information provided by the hospital IDC
5 A B O U T T H I S P U B L I C A T I ON This publication was produced by IDC Custom Solutions. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC, unless specific vendor sponsorship is noted. IDC Custom Solutions makes IDC content available in a wide range of formats for distribution by various companies. A license to distribute IDC content does not imply endorsement of or opinion about the licensee. C O P Y R I G H T A N D R E S T R I C T I O N S Any IDC information or reference to IDC that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For permission requests, contact the IDC Custom Solutions information line at or gms@idc.com. Translation and/or localization of this document require an additional license from IDC. For more information on IDC, visit For more information on IDC Custom Solutions, visit Global Headquarters: 5 Speen Street Framingham, MA USA P F IDC 5
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