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Technology
Blazing a Paper Trail
Collaborative product development has finally come of age allowing transnationals to harness brainpower from around the world.
It's ironic that despite advances in the digital age, companies are producing more documents than ever before. To cope with rising costs many are turning to Xerox document-management solutions.
We are far enough into the digital age to officially debunk one of its myths: that everyone will work in a paperless office. Now we realize this was just a pipe dream.
Not long ago companies assumed everything would be electronic, but paper hasn't gone away. Research firm IDC, based in Framingham, Mass., found that some companies estimate they spend 10% of revenue on document production, management, and distribution. This figure varies widely, but it's almost always a significant outlay. Factor in the surging tide of documents being produced—1.84 trillion printed pages in 2006, up from 1.49 trillion in 2002, according to IDC—and you've got a money drain that few companies have a handle on.
"Companies spend enormous amounts of money but have no idea what they're spending," says IDC senior research analyst Riley McNulty. "It's because there are so many diffuse environments where documents are created."
When it comes to printing, copying, faxing, and distributing documents, companies should approach the process as an enterprise-wide challenge if they are going to rein in costs and be more productive. To that end, Xerox provides the products and consulting services necessary to implement a total document-management solution.
A Complete Portfolio
This spring Xerox Corporation rolled out 21 new and enhanced products, including nine digital copiers, multifunction products (MFPs) that print and copy, and advanced MFPs that print, copy, fax, scan, and e-mail. The new line comes in speeds ranging from 16 to 90 pages per minute, at prices starting as low as $899.
But as a one-stop provider of products and professional services, Xerox also leans heavily on the expertise of its Global Services division to help companies get the most out of its industry-leading products.
"These days a service provider must demonstrate it can immediately remove inefficiencies and cost from a document- management process or it can't get in the door," says Larry Wash, vice president, managed services of Xerox Global Services. "Today we don't lead with technology or consulting. We start every client engagement with an assessment of their environment and focus on streamlining inefficient, document-intensive processes."
One of its most effective services is the Xerox Office Document Assessment (ODA). The Xerox ODA is a Six SigmaÐbased consulting tool designed to evaluate a company's entire document-workflow environment and identify areas where operating costs can be reduced, processes simplified, and productivity improved. Xerox has completed more than 200 ODAs for companies such as Microsoft, EDS, and Dillard's. At EDS, Xerox estimated the company could reduce its cost of hardware, consumables, and operational support by as much as 25% worldwide.
"The ODA pinpointed areas of overlap in our print and output infrastructure and the inefficiencies they created," says James Cook, director of enterprise operations for EDS Enterprise Information and Technology. "The results were important to the design and implementation of an improved, streamlined digital office environment."
Of course, when companies see that document management is more than printing and filing, some realize they're not good at it, and turn over responsibility for document management to another firm. According to IDC,the U.S. outsourcing market for document management will grow to $7.8 billion in 2006, from $5.8 billion in 2001. Service providers either operate on-site or handle certain document-management duties in their own data centers.
When BP Canada Energy Co. handed hardware, software, and services duties to Xerox Global Services, it saw operational costs drop 22%. The company also hired Xerox to handle its document-management software solution, which allows it to save 50%.
Ultimately it doesn't matter whether companies do it themselves or hire help, as long as they develop a savvy corporate document-management strategy.
—Brad Grimes
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