Topics

Background

Paper Usage and Trends

Scanning and Case Studies

Looking Forward

Introductions

Lexmark

Tim Rowland

Star Trek

Trends

Shift to Distributed Printing

Mass Publication

Offset Printing

On-site Print Center

Convenience Center

Workgroup

Desktop

Internet / Intranet

~ 5-6% DistributedSource: LXK Estimate

~ 60 TrillionWorldwide Pages

Our current economic environment is unprecedented in our lifetime.

Allocation of resources (money, people, time) must be managed in a more aggressive manner.

“Copiers, printers, faxes and scanners havenever been an enterprise’s top priority, but the coststo maintain separate fleets of output equipment are staggering...”

“Bottom Line: Output fleets represent a hidden gold mine of cost savingsto enterprises...”

Unprecedented Economic Environment…

Unmanaged Output

67% of all organizations have no idea how much they print.

13,000 pages / year

X 2,000 employees

= 26,000,000 pages annually

O’Keefe Study: US Government Printing

US Civilian government spends $1.3B on printing

35% or $440M is spent unnecessarily.

92% “print more than they use”

No generational difference

64% indicate they can print less.

89% say, to their knowledge, their agency has no printing policies in place

Paper Today

Lexmark's view of the use of paper today

Creation

Collaboration

Transportation

Communication

Interface

Storage

An Output Model

A Strategy of Managing Output

Business Optimization

Proactive Management

Fleet Optimization

The ObjectiveFleet

Optimization

2,000 1,100 800 500Poor Typical Good Best-in-Class

1:1Poor

4:1Typical

8:1Good

12:1Best-in-Class Desired

State

Scanner

Fax

Copier

Printer

Device ConsolidationFleet

Optimization

Optimized DeploymentFleet

Optimization

Management of the Entire Fleet

.

.

.

Proactive Management

Case Study

30% Savings in the first year

Initial Current

Devices Pages

Initial Current

45%Reduction

Initial Current

30,000

16,500

Initial Current

1B

600M

40%Reduction

Proactive Management

Output Devices as Office Equipment“Marks on Paper”Ad Hoc AcquisitionDecentralized BudgetingLack of Monitoring, Visibility and Control

Output Devices as Process EnablersPrint

Capture

Scan

Route

Fax

Automate

Integrate

Distribute

Archive

Copy

Bridging the Digital and Paper WorldsIncreasing ProductivityReducing Cost and CyclesSpeeding ProcessesEnhancing Business Performance

Changing the Paradigm of TCOBusiness

Optimization

Salaried Professionals…

Spend 40% of their time working with documents

50% of that time is spent searching for information

Print/Copy an average document 19 times

Rethink Paper-based ProcessesBusiness

Optimization

Scanning

Scanning Trends

Content Management Software forecasted CAGR of 6.5% through 2013 (IDC)

Capture and Image Management (a subset of content management) forecasted CAGR of 8.6% through 2012. (IDC)

Central Scanning Facility

Imaging &Archiving

Workflow &Collaboration

Database

Back-end process(enterprise applications)

Centralized Scanning“Ship and Scan”

Los Angeles

Seattle

Atlanta

Boston

Enterprise App

Distributed Scan / Document Capture

Los Angeles

Seattle

Atlanta

Boston

ScanningCase Studies

World largest provider of dialysis products and services35K Employees, 1,500 clinics, 115,000 patients, 15 million treatments/yrFaxed or Shipped to Central Processing

Lost, Supporting Data, Shipping Costs, RetrievalDrivers: Reduce paper, reduce storage cost, accelerate revenue

FMC, Dialysis Clinic: Patient On-Boarding

Boston

Los Angeles

Chicago

eCubeDocumentImaging

ClinicalSystems

eSF-based, Scanned and Indexed to Location

Results•Eliminate need for 1500 dedicated Scanners•Ease of Use•Eliminate Extra Copies•Accelerate Processing, cash Flow

reviewscan & routeactual total time50 minutes43% cost reduction and an ongoing

savings of over $1M per year

2

makecopy

1

completeapplication

3

file atbranch

4

send bycourier

5

unpack,sort & prep

6

scan &index

7

post toEDMS

8

review by underwrite

Loan Application Process

JPMC

legacypaper-basedprocess

complete

estimated total time5 days +

digital workflow

Roadway

TerminalBilling Center350 Terminals

43 Billing Centers

Terminal

Before

Terminal

Terminal

Billing Center

2 Billing CentersAfter

St. Francis Medical Center

• 800 Physicians, Level 1 Trauma Center, Children’s Hospital• 1,500 Daily Pharmacy Orders from

• Doctors to Pharmacy, to Nurses, to Patients• Pneumatic Tubes to Faxes and Manual Time Stamps

• Legibility, Speckles bred errors, patient risk• Availability of Phone Lines• 6-7 min per order• No management – faxes piled up, lost STAT info

• Phased• Scanned at Nursing Station MFPs, Printed to Pharmacy• Identified Stat Orders with Colored Paper and Alternate Bin

• Pediatric Orders Coded via Barcode, Read, Stamped• Via Shortcuts Patient Barcode Attached, Viewed (only)

• Never Printed, Visibility to Status, Affords Remote • Results

• Increased patient safety• 10 sec Process• Reduction of 1,500,000 pages of output annually, • Eliminated approximately 100 fax machines

NYC Dept of Education• 1.2 Million Students• Up to $10 Billion in attendance budget• Pre-printed forms ($0.08 per, $2.4M annually)• Dedicated Scanners (aging, high maintenance)• Manual Process

• Consolidation of 1,400 single-use scanners, use of MFPs• Forms Redesigned to Plain Paper ($0.01), Bar Code added• Process

• Mainframe data, merged into form with student info (encoded within a bar code)

• Printed daily (on demand)• Scanned into Mainframe for processing and Storage

• Savings: • $1.5M scanner purchases • $1.4M scanner maintenance savings • $1.0M consumables savings • $1.4M consultant cost savings

Scanning: in Summary

Other Areas

Testing and Grading

Travel Expense Receipts

Contracts

Invoices

The Savings…

Usage of Paper

Next?

Output Technology S-Curve

Paper is the driver..... not a machine ?

We are here

Extensions that Exist Today

Solutions Tools (eSF, XML, etc.)

Direct Attach Visibility

My MFP, Widgets and Solutions Store

Enhanced User Interfaces at MFP

Inkjet AIO eTask Touchpanels

“A bit out there”InkJet Page Wide Arrays

Distributed Server Farm

Paperless Sightings

Airline Tickets, Home Loans, Tax Filing,

Student Work, HC EMR, Design Catalogs,

Newspapers, Magazines, Advertising,

Banking, Paying Bills, POS Checks,

Financial Statements, Clinical Processing,

Photo Repositories, Resume Submission,

Maps, Phone Contracts, Receipts

Web 2.0, Social Influences, New Mediums

Themes Affecting Output

Communication choices – voice, v-mail, e-mail, video, video & tele conference, collaboration platforms, IM, virtual environments (de-emphasis of print)

New application models like SOA and SaaS change the access and expense, hosting (machine to machine communication via the web)

IBM, Microsoft, Google, Cisco endorsing SaaS(accelerates broad acceptance)

GREEN is in (accelerates the reduction of print)

Themes Affecting Output cont’d

Web 2.0 with its focus on virtual environments drives a compute power thirst. Multi-core development is a response. (printers and printed pages are less important)

Increasingly management and staff will be “digital natives” – those desiring, using and expecting business to be conducted electronically (printing less desirable)

Paper Adverse

Technology Natives

Social Networkers

Environmental Zealots

Digital Natives or Millennials

Digital Natives or MillennialsPost 1980, grown up with internet, PC’s, mobile devices,

No need to understand technology …they just use it

Appliance mentality drives a different approach:They do not consult manuals for explanationDo not call the help desk… turn to friends insteadDo not phone in… they go to the web

Their focus is on the results not the mechanics

Use and Access – touch, gesture, weight, strength, voice

Social networking a part of their life

Information in smaller bits - long complex documents passé

Prefer alternatives to print (e.g., wikis, blogs, e-mail, IM)

Driving ForcesCommoditizing the Tech Sector

Web 2.0

Social Networking

Millennials

Virtualization

Wireless

SaaS

Green IT

A Paper-less Perfect Storm

1.Technology

2.Millennials

3.Environmental

An Output ModelWhere we live today

Printer

MFP

Possible Actions from the Output GuysWhere we live today

1. Print Release 2. Release outside Firewall

1. Virtual Office Scan

Further Possible Actions AlternateI / O

Where we live today

1. Print Release 2. Release outside Firewall

1. Virtual Office Scan

1. Tablet Paper (IR) 1. E Paper Signage2. E Paper (Kindell) Tablet

Input and Output Device

The Keystone

Information is the keystone to your organizationDesign your organization around the informationNot around IT equipment or peopleMake the IT equipment and people meet the needs

of your organization

My Best Offer…

Minimize Single Function / Single Purpose Devices

Minimize (Eliminate) Personal Devices

Gain 100% Fleet Visibility

Manage to “Printing Less”

Maximize Return on MFP Investments – Scan to…Store, Collaborate, Process

Thanks