Xerox: Your Proven Managed Print Services Partner

Delivering Customer Value Through a Strategic Approach

Gartner Note: Magic Quadrant for Managed Print Services, Worldwide

InterContinental Hotels Group: Outsourcing Print Services to Improve Frontline Service

British Telecom: Maximizing Cost Savings by Focusing on Service Quality

Procter & Gamble: Treating Printing Worldwide as a Single Resource

Managed Print Services from Xerox

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Delivering Customer Value Through a Strategic Approach

Xerox: Your Proven Managed Print Services Partner is published by Xerox. Editorial supplied by Xerox is independent of Gartner analysis. All Gartner research is © 2011 by Gartner, Inc. All rights reserved. All Gartner materials are used with Gartner’s permission. The use or publication of Gartner research does not indicate Gartner’s endorsement of Xerox’s products and/or strategies. Reproduction or distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see “Guiding Principles on Independence and Objectivity” on its website, http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp.

Xerox Corporation45 Glover Avenue P.O. Box 4505 Norwalk, CT 06856-4505 United Stateswww.xerox.com

Xerox: Your Proven Managed Print Services Partner

1Gartner, Inc. “Magic Quadrant for Managed Print Services, Worldwide” By Ken Weilerstein, Cecile Drew, Yulan Li, October 25, 2011

“We wanted to save money, but we also wanted to be green. And it was the marriage of those two things that led to our partnership with Xerox.”

Jill JordanAssistant City ManagerCity of Dallas

Managed Print Services and the Journey to Transforming Enterprise Print

By Stephen Cronin President, Global Document Outsourcing Xerox

“Although most organizations could, in principle,

manage their own office print actively and

effectively, in reality, many lack the time, the staff,

the experience, the tools and the focus, and they

simply will not do it on their own.”1

Many organizations look to MPS providers to help. How do you know which

MPS provider is right for you? Read the Gartner Magic Quadrant report as

a useful starting point for identifying and evaluating managed print services

(MPS) providers.

Xerox is proud to be positioned as a leader in the Gartner Magic Quadrant

for Managed Print Services, Worldwide. Xerox has been in the MPS

business for more than a decade and we continue to invest significant

resources to shape its future. Our Enterprise Print Services expand the four

walls of the corporate office to include remote and home workers, as well as

reprographics and centralized print. We successfully provide MPS worldwide

to large multiregional and global customers, as well as to smaller local

ones; and we serve a wide range of industries. We believe our unparalleled

breadth of coverage and the scalability of our offerings allow us to meet the

needs of our small, medium, large and global clients worldwide.

MPS providers take different approaches to managed print services. The

Gartner Magic Quadrant report explains these approaches:

• “The low road customer – MPS providers snap up as many customers

of this kind as they can by reducing their MPS proposals to the

absolute lowest cost per page in return for a stripped-down and simple

hardware and service bundle…”1

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• “The high road customer – These customers want to optimize

their printer fleet as well as reduce the time IT spends on

supporting printing or to streamline their document-intensive

business processes...”1

“All the MPS providers in the Gartner Magic Quadrant mix the

high- and low-road approaches, but the proportions vary by

vendor and, most importantly, by customer.”1

So where does Xerox stand?

A Strategic Approach

We believe firmly that a strategic approach will save you more

and deliver a host of other benefits such as improved productivity,

security and environmental sustainability. To achieve these

benefits, you need an approach aimed at managing all of your

print services as a single enterprise-wide resource. It requires

a willingness to break down geographical, line-of-business and

print-service purchasing silos. It calls for a focus on processes as

much as on hardware and technology.

We begin with a metrics-based, Lean Six Sigma approach:

our Xerox MPS engagement starts with an assessment that

establishes an accurate Total Cost of Ownership baseline

from which to target and measure improvements. As a trusted

advisor, we listen to customer needs and work collaboratively to

drive value to your business. This proven, fact-based approach

underpins our ability to make smart decisions and deliver ongoing

cost savings over the life of your contract, as well as meet other

objectives such as reducing your environmental footprint.

We know that few organizations can break down every silo

at once, and all organizations have tactical priorities. A good

example is the InterContinental Hotels Group (IHG) case study

that follows the Gartner Magic Quadrant report. IHG created a

single service across office print and central reprographics, but

did so first in one priority corporate location before looking to roll

out the model to its hotels and other facilities.

Every organization’s approach to achieving their objectives will

be different; the only thing we discourage is not having a strategic

vision at all. As the British Telecom (BT) case study shows, it’s

possible to have a very urgent focus on cost-control without losing

sight of the bigger picture.

At Xerox we specialize in a strategic approach that builds over

time towards an enterprise-wide service that delivers value at

every stage. Following this approach – through our MPS offering

called Enterprise Print Services (EPS) – we frequently help our

clients save up to 20-30% of their print spend. Procter & Gamble,

our third case study, has, in the first year of implementation

alone, reduced its operating costs by 21% after implementing a

worldwide EPS contract across its office and printroom services.

Nevertheless there will be organizations that simply don’t see

print as a strategic issue. Xerox provides a full continuum of MPS

services to simplify your office print infrastructures and realize

cost savings.

Delivering What We Promise

With our deep-rooted expertise, we have a proven ability to

deliver sustainable cost savings over the life of a contract. Xerox

has been positioned as a Leader in the Gartner Magic Quadrant

based on evaluation of Ability to Execute and Completeness of

Vision. We are delivering results today and are well prepared to

deliver results in the future.

One More Reason to Trust Us

More than half of the devices we manage for clients are not Xerox

products. We’re not in the business of selling you something you

don’t need; we really want to be your trusted advisor. We led the

way to shape and define MPS – and we will continue that tradition.

We strive to be in the forefront of innovation – differentiating us

in a marketplace that is moving towards commoditization. Last

year alone, we received hundreds of awards for our services and

innovation. We continue to look for ways to deliver more value to

our customers, creating an environment where it is fun to explore

ideas, incubate concepts and partner with our customers in

developing high-impact services.

We’re looking forward to hearing from you. If you’d like to find out

more, just give us a call. m

Stephen Cronin

“We’re in good shape. Everything works, availability is at an all-time high and everything is taken care of for us. What’s more, we have a clear understanding of exactly what we’re spending and saving, and where.”

Nigel Smith IT Sourcing Manager Reuters

President, Global Document Outsourcing

Xerox

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Magic Quadrant for Managed Print Services, Worldwide

Although managed print services can reduce your office printing costs, do compare the competing providers carefully. Besides costs, look for reduced workloads, faster business processes, less waste and happier users.

What You Need to Know

Gartner’s managed print services (MPS) Magic Quadrant is a useful starting point for identifying and evaluating MPS providers. It is intended for Gartner’s client base of mainly midsize and large organizations, many of which operate throughout two or more regions, and some of which are truly global. Although not all MPS projects are multiregional or global at the outset, customers often choose to scale up one region at a time. In this way, they can manage their office printing in a unified manner globally. The providers in this Magic Quadrant have the geographical scale to attend to your office printing needs across world regions in a coordinated way.

Numerous other MPS providers approach their MPS projects locally or country by country and region by region and cater to like-minded customers, but they do not appear in this Magic Quadrant. Why not? As organizations progress from the prevailing loosely managed approach to an efficiently and closely managed one, it makes sense to manage the entire fleet in a unified way, rather than with today’s characteristically fragmented approach. Naturally, some MPS customers are organized in a way that makes a unified fleet impossible or are confined to one country or region.

Your provider selection should be based on a detailed evaluation of your office printing needs and goals compared with a service provider’s capacity to fulfill those requirements and expectations. Just because a service provider falls into the Leaders quadrant does not automatically make it the right choice for you. All selections are buyer-specific, so providers in the Challengers, Visionaries or Niche Players quadrants may sometimes be a better match for your requirements. For example, MPS providers in the Challengers quadrant are capable of delivering the services required by most enterprises and may have a long MPS track record. Customers whose needs are mostly at the local or national level, or whose interest in MPS

is limited to reducing their printer and MFP fleet costs, may find Challengers more than adequate. Those in the Visionaries quadrant match both the range of needs and the geographical scope of many midsize and large organizations. For smaller organizations or large ones situated mostly in a single locale, providers in the Niche Players quadrant may be the most attentive and most-cost-effective match. Some Niche Players cater to specific industries. All the providers ranked in this Magic Quadrant are large, established companies, so buyers should not assume that the Niche Players are likely to drop out of the market in the near future.

Note that MPS is not right for everyone, and if you are unprepared to revisit what equipment and services you need to do the job, MPS will not produce results for you. Also, if you can trust an outside vendor to do no more than sell you equipment, repair it and provide the supplies, then you should seek a traditional purchase or lease arrangement. In this case, the savings opportunity will likely be smaller – 5%, rather than 10% to 30%. You will also need to take full responsibility for choosing the right mix of equipment and services, which would be the provider’s responsibility under MPS.

Magic Quadrant

Market OverviewThe Big Picture: The Commoditization Challenge

Although it is called a service, MPS is an integrated bundle of services, consulting, equipment, parts and supplies. Some cost-driven customers now apply commodity-style purchasing methods to pick apart the various elements of these bundles, focusing on discrete components such as software license costs. Such customers zero in on the cost per page but often discount the value of the help they will need to customize the solution to their own business, or the value of the consulting help they will need to configure the solution, or the value of the integration and support they will need to make it all work. Some customers have also piled on SLAs that demand, for example, higher printer uptime levels than they ever imposed on their own IT organization, or shorter repair response times than they really need.

Research from Gartner RAS Core Research Note G00219329,

K. Weilerstein, C. Drew, Y. Li, 25 October 2011

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Source: Gartner (October 2011)

figure 1. Magic Quadrant for Managed Print Services, Worldwide

challengers leaders

niche players visionaries

completeness of vision

abili

ty to

exe

cute

As of October 2011

Xerox

RicohHP

LexmarkCanon

ARC

Konica MinoltaToshiba

OcePitney Bowes

MPS providers respond in two ways:

• Thelow-roadcustomer–MPSproviderssnapupasmanycustomers of this kind as they can by reducing their MPS proposals to the absolute lowest cost per page in return for a stripped-down and simple hardware and service bundle. The pull-printing option, for example, might still appear – but as an optional monthly charge – calling attention to the cost but playing down the fact that this option could pay for itself by cutting page volumes by 10%. We know vendors are wooing low-road customers when we see proposals titled “Managed Print Services” with an optional monthly service fee for managing the printer fleet. Rather than take the time to help customers understand and make a persuasive case for MPS, some providers have simply redefined their services in a way that minimizes the risk of losing the deal to cutthroat competition, but undercuts most of the benefits of MPS. What is more, some contracts also contain hidden costs that will be paid at the end of the term or in the event of even a small reduction in page volume,

and these could diminish the savings. Although watering down MPS may save a deal from cost-driven competitors, the consequences, such as the outages that some customers have reported because of razor-thin inventories of supplies, may sour them on upgrading to a better version of MPS later.

•Thehigh-roadcustomer–Thesecustomerswanttooptimize their printer fleet as well as reduce the time IT spends on supporting printing or to streamline their document-intensive business processes. In some cases the high-road customers start out shopping for an MPS engagement that will do all of this. In other cases they conduct needs assessments to demonstrate the savings and other benefits of MPS to the eager advocates in IT or the purchasing department, as well as to their skeptical colleagues in, for example, the claims department or finance department. Depending on their appetite for change, customers may actually roll out some of the solutions now, some later and perhaps forgo others.

All the MPS providers in our Magic Quadrant mix these high- and low-road approaches, but the proportions vary by vendor and, most importantly, by customer.

Hail the Middle-of-the-Road Customer

Does the low-road approach to MPS seem to be confining for your company; is the high-road version too demanding and aggressive? If so, you may be part of the emerging middle-of-the-road mainstream of 2011. These customers often have senior management support for optimizing print but no mandate to optimize business workflows. They proceed into MPS more gradually than high-road customers, and tend to test it out. They may start, for example, in one region of a global consumer company or in one division of an automotive manufacturer before rolling it out in others. If they optimize business processes, they tend to do so only gradually, building their confidence with proven results before they move ahead. Some middle-of-the-road customers follow a straight path through MPS, but others reset their goals as their comfort levels grow.

Middle-of-the-road customers should plan at the outset how they will expand the scope of their engagement. This way they can expand the scale and take on business process improvements once their first steps have paid off and proven the approach. If, on the other hand, they do not see the results they expected or if the vendor relationship never blooms, they can keep it narrow.

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They should write SLAs for the basics they know they will need, but let the MPS providers know what additions to the original scope they might consider.

It is especially important for them to plan who will monitor, control and advance their MPS project – first of all to make sure they get the full benefits of optimizing their printing, and second to advocate and advance the workflow initiatives and other added value, lest they be overlooked.

For MPS providers, middle-of-the-road customers present more of a challenge than the high-road customers or the low-road ones, whose needs are at least predictable and consistent. The scope or depth that middle-of-the-road customers require may or may not change. Contracting can be tough as they fight for tight SLAs at the outset, only to revisit their project midterm and make changes. MPS providers need to resist the temptation to treat middle-of-the-road customers as high- or low-road ones, and must keep a close finger on such customer’s pulse as their requirements change over time. The degree to which each MPS provider emphasized value over price, and how well they cater to the middle-of-the-road customers helps explain its position on the Magic Quadrant, as well as the changes to the vendors’ positions.

Implications for the 2011 Magic Quadrant

By 2011, most global MPS providers have invested the thought, leadership and funds to reach the Challengers or Leaders quadrant. Their task got a little easier as MPS technology and practices continued to mature, allowing enough stability and time for Niche Players to start to catch up with the Challengers. Some of the Challengers also began to catch up with the Leaders, continuing the trend that began in 2010.

Implications for CustomersDon’t Ignore Business Processes

Many MPS engagements focus on equipment, supplies and service, ignoring such goals as paper-based business process improvement and the alignment of the print strategy to other areas of IT. Buyers should seek to benefit from their MPS providers’ industry-specific expertise to incorporate their documents in electronic processes. By seeking to enlarge the scope of their MPS this way, organizations can maximize cost savings and process improvements. It is therefore important for organizations to ask their potential MPS provider to demonstrate solutions for specific vertical industries and applications.

Involve the Stakeholders

To manage their office printing more actively, customers need to involve more parts of their organization – not just purchasing or IT, but also the operations or line-of-business departments. The change is greatest for organizations accustomed to letting IT specify what is needed and then handing it off neatly to the purchasing department to get the best deal. Coordination is important, because MPS deals and the accompanying terms and conditions are much more complex than the customary purchase of hardware, and good results demand multidepartmental cooperation throughout the process.

Expect Longer Purchase CyclesMPS requires more planning than traditional printer and copier purchasing, so both buyers and sellers must readjust their time frames. Letting more people have a say in selecting a more complex package can easily double the three-month purchase cycles to six months and the six-month cycles to a year. The reward for the added complexity, however, is a 10% to 30% cost reduction instead of the roughly 5% possible under traditional purchasing practices. Buyers who skip the assessment and analysis upfront should not be surprised if they end up saving less than they hoped for, or perhaps even worse, living with the wrong choice of a provider or the wrong services and equipment for the next few years. Note that much of the value that MPS provides is determined in the assessment phase that takes place before the equipment is delivered, so prospective buyers should use their leverage to demand it be done carefully. Because the assessment often begins before the contract is awarded, customers should strive to use the clout they have at this point in the deal and not sign off until they have a solid case for MPS and understand what the vendor will deliver and how.

Exploit the True Value Proposition

Although most organizations could, in principle, manage their own office print actively and effectively, in reality, many lack the time, the staff, the experience, the tools and the focus, and they simply will not do it on their own. Organizations that manage their printer, copier and fax fleets can save between 10% and 30% of their print costs. This is something organizations can do on their own if they know exactly how to proceed and have the resources to do so. If not – as is often the case – then an MPS provider can help. MPS promises to help organizations carry out the needed changes and save them money by providing the

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staffing and expertise to determine their true needs, optimize the fleet to meet them, and track and monitor them to keep the optimal state in place afterward. MPS also allows customers to bring their best sourcing efforts to bear on what becomes a single, comprehensive multimillion-dollar deal that usually lasts at least three years. The deal may go beyond the printer, copier and MFP fleet to include better handling of documents with direct business benefits. The deal may also encompass centralized reprographics departments (CRDs, also known as copy rooms) and even mailrooms.

Market Definition/Description“Managed print services” is a generic Gartner term for a service offered by an external service provider to optimize or manage a company’s document output to certain objectives, such as driving down costs, improving efficiency and productivity, and reducing the IT support workload. Under MPS, a service provider takes primary responsibility for meeting the customer’s office printing needs, including the printing equipment, the supplies, the service and the overall management of the printer fleet. The main components provided are needs assessment, selective or general replacement of hardware (optimization), and the service, parts and supplies needed to operate the new and/or existing hardware. The provider also tracks how the printer fleet is being used, the problems and the user satisfaction. The MPS provider analyzes the information gathered in the course of tracking and makes (or recommends to the customer) the adjustments needed to ensure fleet efficiency and to meet changing user needs.

Who Uses MPS?

MPS is mostly adopted by organizations with more than 500 users, across all industries and in all world regions. Although MPS can benefit all but the smallest organizations, it is midsize and large organizations that ask Gartner about it the most. Large organizations, in particular, tend to have the most complex and least efficient office printing practices to begin with, and thus stand to benefit the most from optimizing them. These large organizations and many midsize ones, as well, typically have offices in multiple locations and world regions. Some seek MPS in all of their offices from Day 1, but most choose to start small and then add sites, divisions, countries and regions over time. For that reason, our Magic Quadrant is limited to providers that can serve as a single source for at least two world regions.

What Other Services Might Be Included in MPS?

MPS may also be expanded to include staffed services, such as copy centers, as well as telecommuters. It may also include enterprise content management services and workflow

optimization components, such as developing custom applications for smart MFPs that automate paper-intensive document workflows and route scanned pages to document management systems. It can also be extended to include the restructuring of document workflows. Some MPS engagements are also designed to improve document security or to reduce print volumes and power consumption for environmental reasons.

How Do Customers Pay for MPS?

MPS does involve a consolidation of spending, but the actual payment schemes vary. Generally, the external service provider either owns the hardware or (more typically) leases it from a financing company in its customer’s name. The customer usually pays a per-page charge, which covers the cost of the equipment, any leasing costs, the supplies, the parts, the service and other MPS elements. Some contracts stipulate a minimum number of pages per device per month, with unused pages forfeited. Others involve some variation on the monthly minimum, such as a sliding cost per page that decreases as the number of pages increases. Services are usually folded into the click charge, although in some cases, they are billed on a flat monthly or quarterly basis. Contracts that impose no minimum number of pages appear risk-free but typically obtain some other financial commitment on the part of the customer, such as a flat fee, a per-device fee or a per-seat fee. Some MPS contracts include guarantees of a certain result, but this hinges on agreeing to do things the vendor’s way.

Inclusion and Exclusion CriteriaInclusion Criteria

Only vendors that meet all the following criteria are included:

• Isabletoprovidetheequipment(vialeaseorasaprocurement service).

• Providesthesupplies.

• Performstherepairsandpreventivemaintenance.

• Providesthetechnicalsupport.

• Haveatleast25MPScustomersintotal,eachwith500ormore users.

• ProvidesMPSintwoormoreworldregionstoatleastonecustomer. The customer must be verifiable and have at least 500 MPS users. The regions are North America, EMEA, Asia/Pacific (including Japan) and Latin America.

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• Providesthelong-termtrackingandmanagementoftheprinter/MFP fleet.

• Performstheinitialassessment(s).

• Buysbackordisposesofexistingequipmentthatisbeingreplaced, if this is required.

• Billsonaper-pageorper-seatbasis.

Exclusion Criteria

The inclusion criteria exclude print-related services that fall short of MPS. These include traditional, narrowly drawn copier contracts, certain retail printer service packages, and most infrastructure outsourcing contracts. Some genuine MPS providers also did not qualify because they did not meet one or more of our inclusion criteria. Kyocera Mita and Sharp, for example, do have MPS programs. We mention them because they are well-established as suppliers of MFPs and printers worldwide, but did not demonstrate to us that they meet all of our inclusion criteria in 2011. Many small MPS providers operate in only one country or location, and thus do not meet the inclusion criteria for the Magic Quadrant either. Depending on your requirements and needs, you may want to also consider these providers as well. Gartner recommends you contact our analysts to discuss your specific circumstances and needs, and to help you determine which of the MPS providers makes sense for your shortlist, whether or not they are in this Magic Quadrant.

Added

American Reprographics Co. (ARC) has expanded its mix of printroom and office printer fleets services for the architecture, engineering and construction (AEC) market to now provide MPS. ARC developed this over some years and has begun to provide its MPS to its existing base of local and multinational customers, so that it now meets our inclusion criteria.

Dropped

No vendors were dropped from the Magic Quadrant in 2011.

Evaluation CriteriaAbility to Execute

The Ability to Execute axis position for each MPS provider is based on its success in delivering results today as well as its preparation to deliver results in the future. On this axis, Gartner verifies an MPS provider’s capability to deliver MPS based on direct feedback from extensive interviews with its clients and other provided customer references.

Gartner analysts evaluate MPS providers on the quality and efficacy of the processes, systems, methods or procedures that enable their performance to be competitive, efficient and effective, and to positively affect revenue, retention and reputation. Ultimately, MPS providers are judged on their capability and success in capitalizing on their vision.

Each criterion is weighted high, standard or low in importance and scored accordingly. Table 1 shows the criteria for evaluating providers’ ability to execute.

Product/Service: This criterion addresses core goods and services offered by the MPS provider that compete in and serve the defined market. This includes current product and service capabilities, quality, feature sets and skills. We probed how well the provider ensures that the customer ends up with the right mix of equipment and help throughout the MPS engagement.

Overall Viability (Business Unit, Financial, Strategy and Organization): Viability includes an assessment of the overall organization’s financial health, the financial and practical success of the business unit, and the business unit’s likelihood of continuing to invest in the service solution. We drew on all available sources to gauge how solidly grounded the MPS providers are today and how safe a bet they are for the future.

Sales Execution/Pricing: This criterion examines each MPS provider’s capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support and the overall effectiveness of the sales channel. MPS agreements can lock in customers for years and can do more harm than good if the terms, conditions and pricing are drawn up wrong. We examine how well the vendor ensures that the customer gets a fair deal that is appropriate for the customer’s needs.

Market Responsiveness and Track Record: This criterion looks at the MPS providers’ ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the provider’s history of responsiveness. Successful MPS engagements cater to the specific needs of the customer at hand. We looked closely at how far the vendor goes to ensure the success of the specific customer.

Marketing Execution: This criterion refers to the clarity, quality, creativity and efficacy of programs designed to deliver the organization’s message in order to influence the market,

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promote the brand and business, increase awareness of the MPS offering, and establish a positive identification with the service/brand and organization in the minds of buyers. This mind share can be driven by a combination of publicity, promotional activities, thought leadership, word of mouth and sales activities. Effective marketing is important, because customers struggle to understand exactly what each vendor will do for them and how this differs from one provider to another. We look from all angles at how well the vendor communicates this, and how easy it is for customers to obtain this information.

Customer Experience: This criterion evaluates the relationships, products and services/programs that enable clients to be successful with the MPS evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, and SLAs. Successful MPS turns on the provider’s relationship with the customer in ways that SLAs and contract clauses can never entirely anticipate and enforce. We look from numerous angles at how well the provider ensures it maintains a good all-around relationship with the customer.

Operations: This criterion reviews the MPS provider’s ability to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis. Office printing is one of those technologies that affect almost everyone, so even small disruptions matter. We look at how the vendor works hand in hand with the customer to minimize the disruption to the end users and key stakeholders in the customer organization.

Completeness of Vision

The Completeness of Vision axis reflects each MPS provider’s prospects for success by analyzing its view of the market, its service operating model, and its strategic plans for growth and service improvements. Gartner verifies an MPS provider’s vision based on presentations from the providers and direct feedback from extensive interviews with the MPS provider’s clients, as well as insight gained while answering Gartner client inquiries on that topic.

Each criterion is weighted high, standard or low in importance and is scored accordingly. Table 2 shows the criteria for evaluating providers’ completeness of vision.

Market Understanding: This criterion refers to the MPS provider’s ability to understand buyers’ needs and translate these needs into products and services. Vendors that show the highest degree of vision listen to and understand buyers’ wants and needs, and can shape or enhance those wants with their added vision. We look at key areas in which the provider can prepare the customer for tomorrow’s priorities as well as today’s.

Marketing Strategy: This criterion evaluates the MPS provider’s strategy and approach to marketing and promoting MPS. We looked for a clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.

Sales Strategy: This criterion reviews the provider’s sales strategy and its capability to sell MPS. It includes the strategy for selling MPS that uses the appropriate network of direct and indirect sales, marketing, service and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: This criterion addresses the MPS provider’s approach to MPS development and delivery that emphasizes differentiation, functionality, methodology and feature set as they map to current and future requirements. Across each of the main elements of MPS, we examined how the vendor maximizes the benefit of its MPS to customers.

Business Model: This criterion assesses the soundness and logic of an MPS provider’s underlying business proposition. A sustainable MPS business model must not only deliver savings and other benefits to customers, but also minimize the risks. We looked at how the vendor protects its customers against the risks inherent in MPS.

Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product/Service high

Overall Viability (Business Unit, Financial, Strategy, Organization)

high

Sales Execution/Pricing high

Market Responsiveness and Track Record

high

Marketing Execution high

Customer Experience high

Operations high

Source: Gartner (October 2011)

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Vertical/Industry Strategy: The experience that MPS providers gain and investments that they make in vertical markets will help them build and retain their customer base in an increasingly competitive market. We assessed the MPS provider’s strategy to direct resources, skills and offerings to meet specific needs of individual market segments, including verticals.

Innovation: This criterion includes direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, or defensive or pre-emptive purposes. As MPS matures, customers should expect continued improvements both in what vendors do for them and in how they do it. This depends on judicious investments. We look at the quantity and quality of the providers’ investments in MPS versus the value that they will likely provide to customers.

Geographic Strategy: This refers to the MPS provider’s strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the “home” or native geography, either directly or through partners, channels and subsidiaries, as appropriate for that geography and market. Many of Gartner’s clients have offices scattered across an entire country or region, several continents or the entire world. We evaluated the ability of the providers to accommodate the range of customers’ geographies, from local through national, regional, multiregional and global.

LeadersLeaders provide MPS to a wide range of customers, including the largest and most geographically dispersed, so they must demonstrate a truly global reach. They must demonstrate not only the skills to deliver today’s MPS, but also the understanding, initiative and resources to prepare for tomorrow’s MPS. Leaders characteristically augment the full scope of MPS with a wide range of added-value services. As a result, they are frequently shortlisted by large and midsize customers.

ChallengersAlthough Challengers have solidly demonstrated that they provide the core elements of MPS, they communicate a less complete view of the market direction than Leaders. The package of services they offer and the way it is marketed may also cater to a somewhat narrower range of company sizes and industries than that of Leaders. Even when the customers are the same as for the Leaders, the scope of engagement may be narrower.

VisionariesVisionaries thoroughly understand today’s market and also know how to address customers’ future needs and expectations. In the aggregate, they provide a wide range of MPS to a diverse range of customers. What differentiates them from Leaders is their ability to successfully market and deliver all of their services to customers of different scale and across different regions in a well-unified way.

At the current level of market maturity, there are no Visionaries in this Magic Quadrant.

Niche PlayersNiche Players meet all of our inclusion criteria but provide a more-narrow range of services to a more-narrow range of customers than the other vendors. They may be a cost-effective choice for customers whose requirements, scale and geographical scope happen to be a good match. They may also cater to specific industries. Some customers also report that the Niche Players pay them especially close attention and are generally more accommodating than large vendors.

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding high

Marketing Strategy high

Sales Strategy high

Offering (Product) Strategy high

Business Model high

Vertical/Industry Strategy high

Innovation standard

Geographic Strategy high

Source: Gartner (October 2011)

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Vendor Strengths and CautionsARC

Strengths

• ARCunderstandsexactlywhatAECindustries’customersneed, and knows from long experience what equipment and software will accomplish the job best. Unlike most MPS providers, ARC is not a manufacturer and does not need to use its MPS to sell equipment.

• ARCcaterstothespecialneedsofAECindustries,suchason-site and off-site print shops and cloud-based services that provide customers face-to-face help and rapid turnarounds, as well as specialized software for complex job accounting and client billback.

• AlthoughnewtoMPSassuch,ARCdrawsonexperiencewith on-site services and facilities management going back to the mid-1990s, and thus has the needed staff, supplier relationships and customer contacts to successfully deliver MPS.

Cautions

• ARCisstillbuildingupitsMPSpracticeandhasfewerMPScustomers under its belt than most competitors.

• AlthoughARCdoesservelarge,multiregionalandglobalcustomers, its business model is hands-on and its direct presence is greatest in North America. ARC relies mainly on partners to deliver MPS in Europe. It still does not operate directly in Latin America, one of the most rapidly developing world regions, and an important market for AEC.

• Giventherigorousdemandsoftoday’scustomers,ARCcan,in principle, provide MPS to customers in any industry, but in practice it has few customers and little experience with MPS outside of AEC.

Canon

Strengths

• CanonhasacquiredexperiencewithMPSinrecentyears,and its list of customers that have completed their first or even second MPS engagements has grown.

• Canon’sumbrellaapproachtoMPS,withastandardglobalframework and room for regional variations, allows it to

cater to the different customer needs in each of the world regions, while maintaining the consistency of the overall program and tools.

• CustomersreportedtheirsatisfactionwiththewayCanonhandles their supplies provisioning, showing a mix of remote monitoring and hands-on fulfillment.

Cautions

• CanonnowoffersMPSinmostworldlocations.Canon’sglobalstrategyfeaturesstandardizedcoreservices.However,as a customer, understand that you may also find much variation in the levels of MPS experience and business momentum between the different world regions and countries.

• Customersmustmaketheirgoals,suchasoptimizingtheirprinter fleet or reducing print volume or streamlining paperbound business processes, clear to Canon for MPS. Those who are unclear or ambivalent may end up with less than a full optimization.

• CustomerswhoareconsideringCanonManagedDocumentServices (MDS) should take the time to speak to its representatives to understand which of its various direct and channel operations could best serve them. If the sales rep cannot answer all of your questions, then request an MDS specialist.

HP

Strengths

• HPhasprovenitsabilitytosatisfyitsworldwidecustomerswith many widely dispersed offices and branches, even in remote locations.

• CustomersacrossallkindsofindustriespraisemostaspectsofHP’sMPS,andespeciallyhowwellittakescareofthem–with good account management.

• HPisunmatchedinitsabilitytotieMPSintothebroaderIT picture. It sets and meets SLAs similar to those found in otherIToutsourcingcontracts.HP’sMPScanbeintegratedwith offerings from its services and business systems divisions, and tightening this link is a top priority for the Managed Enterprise Solutions (MES) group responsible for MPS.

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Cautions

• Somemultinationalcustomerscomplaintheylackasingle,comprehensivepointofcontactatHP.Othersreportmoresubtle gaps, such as having to rely on their account manager to quietly fill in for minor limitations in the automated billing and reporting, and worry if the special help will continue when that person eventually progresses to another role.

• Ascertainwho,otherthanHP,willberesponsibleforyourMPSengagement,andhowHPwillensureitmeetsyourexpectations. Some customers have reported problems with thepartnersthatHPsometimesreliesontoprovidethemsupplies, equipment, maintenance and repairs in some countries.

• ConversationswithHPcustomersrevealthattheirsatisfaction with MPS often depends heavily on the capabilities of their account delivery manager. Before you finalize your MPS deal, ask about your account delivery manager.

Konica Minolta

Strengths

• KonicaMinoltahasbuiltonitsfirmlyestablishedsalesandservices organizations in Europe to win some truly global-scale customers. Its flexibility appears to be a winning point.

• KonicaMinoltahasroundedoutitsMPSprogramnicely,andcustomers report improvements over the last year in how Konica Minolta carried out such functions as deploying MPS, working cooperatively with the customer’s support team, and making sure the MPS engagement works in the overall corporate context.

• Customers’printingneedscanchangeduringthelifeoftheirMPS engagement. Customers reported their satisfaction with Konica Minolta’s MPS approach because it is flexible enough to allow for an upgrade without extending the contract term or lease.

Cautions

• KonicaMinoltaisinthemidstofrefiningitsMPS,withmoreto come over the next year. From experience with other MPS providers we know to expect more add-on packages and

services, better ways of delivering services, and perhaps more aggressive SLAs. Prospective customers should therefore probe about what future plans and enhancements are ahead, and ensure upfront that they will be able to take advantage of new ones they think they will want without having to either pay more or to extend their contract longer than planned.

• MPSoftenincludesdailyon-sitemaintenancetoreplenishsupplies and even paper in large, centralized sites. Konica Minolta typically makes routine daily visits only to sites with 5,000 or more workers, which is a higher threshold than some competitors. Speak up if you want this in smaller sites, as Konica Minolta prides itself on its hands-on service and will make exceptions.

• KonicaMinoltaseekstoengageallofyourkeyMPSstakeholders, such as IT, purchasing, senior managers and line-of-business managers. This practice will help you obtain the best results from MPS, but some Konica Minolta customers do not follow it, and instead limit their contact to a “gatekeeper.” Make sure you take the time to involve a wide-enough team.

Lexmark

Strengths

• SomecustomerspraiseLexmark’stransparencyupfrontabout what it can and cannot do for them. This is something we rarely hear about MPS providers.

• Lexmarkhasboththeglobalreachandtheonlinemonitoring and maintenance capabilities to successfully deliver MPS to far-flung, remote sites on a scale that some competitors would not even undertake.

• LexmarknowhasMPScustomersinmanyindustries,butis especially deep in its understanding of and experience in financial services, healthcare, manufacturing, retail, and pharmacies, among other verticals.

Cautions

• AlthoughLexmarkiscapableofacompleteneedsassessment, customers report that the quality of its assessments vary in practice. Ask how Lexmark will assess your needs, and be sure to inform them of your overall printing infrastructure, as well as any special printing needs of business systems or legacy systems.

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• Lexmarkhasagoodassortmentofsolutionstohelpcustomers with their business workflows, the sort of thing customers often add on after the main rollout. But some customers report that Lexmark does not take advantage of the meetings it holds with them to explain all it can do over the course of the MPS engagement.

Oce

Strengths

• Oceservescustomersinawiderangeofindustries,andhas the references to prove it. For example, Oce Business Services (OBS) has expanded from print rooms and copy centers to deliver MPS to its customers in manufacturing, professional services, education and financial services.

• Ocehasinvestedinthesoftwareandbusinesspracticesthat underlay its MPS offering, and customers report improvements in how MPS is deployed and how it is integrated with their existing IT support.

• Oce’sportfolioofdocument-relatedbusinessprocessoutsourcing services allows customers to extend their MPS engagement in ways that relate to the content of the documents, such as records management, document design, scan capture, digital dossier management, invoice processing and document control.

Cautions

• Foryears,Ocestoodoutasabest-of-breedsupplierthatdoes not manufacture most of the equipment it provides under MPS, and thus is more likely to recommend an optimal mix of products. Although the majority-share acquisition of Oce by Canon does allow Oce to sell other brands, and brings some other benefits, the loss of this brand independence is not one of them.

• OceremainsaseparatecompanyfromCanon,butthetwoare likely to integrate their MPS offerings. Customers who sign onto MPS now should ask for a clear road map so they understand what future enhancements and changes are planned, and can ensure that they will be able to take advantage of them over the course of the engagement.

• Customersreportminorcomplaintsofthekindweexpectwhen an established provider expands its MPS business. For example, problems with remanufactured supplies’ quality

on non-Canon equipment, device placements that required extensive corrections after deployment and personnel who were well-accustomed to facilities management contracts but new to MPS.

Pitney Bowes

Strengths

• PitneyBoweshaslessincentivetofavoronebrandover another than its competitors because it does not manufacture printers or MFPs, and all the equipment it supports under MPS comes from other manufacturers, such asSharp,KonicaMinolta,Xerox,Canon,LexmarkandHP.

• PitneyBowes’corecompetencyisdocumentdesign,routingand messaging, and records management, and it brings that expertise to bear for its customers.

• ManyprospectiveMPScustomersstruggletomakeastrong case for MPS in their organization and need more assessment than their providers deliver. Pitney Bowes’ assessment methodology and predictive modeling is spot-on for this purpose.

Cautions

• Althoughitiswell-positionedtomakesignificantMPS advances in the coming year, Pitney Bowes, as an independent MPS provider, faces tough price competition from rivals that are manufacturers and thus able to undercut its prices, even if they have to give up profits in order to win business. Customers must be prepared to look at Pitney Bowes’ value proposition closely, rather focus solely on the relative cost per page.

• PitneyBowescaterstocustomersthatarepreparedforMPSand have senior management backing for their project. If you do not fit that description, then discuss with Pitney Bowes how it would make the MPS engagement work for you.

• Somecustomersreportthatinitseffortstosavethemmoney, Pitney Bowes pushed them harder than they expected to replace the equipment they had in place with new MFPs, rather than allowing them to gradually phase it out.

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Ricoh

Strengths

• RicohhasinvestedheavilyinMPSsoftwareandmethodology, and its top management has promised publicly to sustain the investments in MPS over coming years.

• Ricohisabletodocompleteandthoroughneedsassessmentthat includes user interviews and analysis of printing behavior. Customers should be sure to press for this.

• SomecustomerscometoMPSwithnotonlyrequirements,but a detailed concept of how they will be met. Ricoh is more accommodating than most and has been able to win MPS deals that require it to work closely with the customer to understand its needs.

Cautions

• Whenitcomestosoftware,workcloselywithRicohfromthe start to explain your needs and confirm how they will be met. Use the pilot and initial rollout phases to check that its software satisfies all of your requirements and functions well in your environment; for example, that all equipment enrolled in your MPS actually shows up in the onscreen reports.

• AlthoughRicohhasdramaticallyimproveditsglobalcoordination over the years, some multinational customers have less of a single, comprehensive point of contact at Ricoh than they envisioned, and instead rely on separate contacts in different locations.

• EvenasRicohhasexpandeditsMPSoperationsinrecentyears, some customers still encounter glitches in billing and usage tracking. Consider upfront what details you will need to see in your billing and usage reports, and make sure you will be able to easily audit the bill for anomalies or errors.

Toshiba

Strengths

• CustomersthatwespeaktoinNorthAmericahaveexpressed much increased interest and receptiveness to Toshiba in recent years, and it is winning competitive bids.

• ThosewhouseToshiba’sMPSpraiseitfordeliveringonsuch fundamentals as tracking and reporting, and help desk support, and note its willingness to make sure users are well-trained, something competitors often ignore.

• Toshiba’sthoroughandsystematicalneedsassessmentmethodology is also scalable, which allows it to provide a solid needs assessment even to small and midsize customers.

Cautions

• ToshibahasprovidedMPStoU.S.customersforyears,but has only begun to establish a track record with MPS in Europe, Asia/Pacific and Latin America.

• TheToshibaMPScustomerswehavespokentosoughttooptimize their printer and MFP fleets, but most have not yet chosen to extend their engagement to streamlining document-centric business processes.

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• AskToshibaforreferencesinyourindustry.Althoughweare confident of Toshiba’s ability to understand and cater to specific verticals in a valuable way, we lack evidence of large-scale Toshiba MPS engagements in some of the industries to which Gartner’s clients belong.

Xerox

Strengths

• XeroxoffersthecompletesetofMPScapabilitiesunderone roof, and thus can accommodate a wide range of customers, starting with those who need a complete range of equipment, and extending to those whose MPS will entail re-engineering their business document workflow, or will tie into their high-volume printing and digital document distribution. Xerox’s MPS can also be tied into business-process or infrastructure outsourcing services from its ACS unit.

• Xeroxisabletosatisfycustomersnotonlyacrossaswideageographical range as any competitor, but it is also able to provide both remote and hands-on service in all kinds of isolated locations.

• CustomersoftenreportthatXeroxdoesathoroughjobofassessing their needs and establishing a reliable baseline on which to build its recommendations.

Cautions

• IftheneedsassessmentXeroxdoesforyouisnotdeepenough or broad enough to help you win the management backing you need to carry out your print optimization

goals, then be sure to ask them for more. Xerox serves an especially wide range of customers and some need more upfront help than others.

• SinceXerox’sMPSofferingisoneoftherichest,salespeoplemay overestimate or underestimate your appetite for business-process improvements or for industry-specific solutions. Ask about alternatives, rather than assuming a first proposal is the last word. For example, customers whose relationship with Xerox was limited to the purchasing or facilities management departments should treat the move to MPS as a chance to explore Xerox’s industry-specific solutions with its line-of-business departments.

• UnderstandthatXerox’slongtrackrecordwithMPSisno guarantee of success. The results you get will still depend to a large degree on your carefully planning the MPS engagement and overseeing its delivery and progress. You will need to involve the stakeholders from IT and purchasing as well the line of business for the best results.

Vendors Added or DroppedWe review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus

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Evaluation Criteria DefinitionsAbility to ExecuteProduct/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This includes current product/service capabilities, quality, feature sets and skills, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall organization’s financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization’s portfolio of products.

Sales Execution/Pricing: The vendor’s capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support and the overall effectiveness of the sales channel.

Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor’s history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization’s message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This “mind share” can be driven by a combination of publicity, promotional initiatives, thought leadership, word-of-mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products are evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: The ability of the vendor to understand buyers’ wants and needs and to translate them into products and services. Vendors that show the highest degree of vision listen to and understand buyers’ wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor’s approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.

Business Model: The soundness and logic of the vendor’s underlying business proposition.

Vertical/Industry Strategy: The vendor’s strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor’s strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the “home” or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.

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InterContinental Hotels Group: Outsourcing Print Services to Improve Frontline Service

With more than 4,500 hotels in 100 countries and territories,

InterContinental Hotels Group (IHG) is a complex global

business. To maintain leadership in its industry and accelerate

growth, IHG looks for ways to sharpen its focus on looking after

guests by outsourcing non-core business processes and back-

office operations to experts.

Challenge

IHG wanted to transform its approach to document management

at its Atlanta headquarters, which oversees operations in North and

South America. While its priority was to reduce costs and improve

the efficiency and cost-effectiveness of Atlanta’s print-related

infrastructure, the objective was also to create a model for document

management services that could be replicated at other IHG facilities.

Solution

Using our Lean Six Sigma approach, we thoroughly assessed

IHG’s corporate office environment before implementing an

optimization plan. We migrated the infrastructure from a hard-

to-manage, fixed-cost capital asset to a utility managed service

covering equipment, output, supplies, maintenance and support.

As part of the plan, we replaced inefficient devices with more

advanced and environmentally friendly multifunctional devices

(MFDs). To reduce the need for costly outside printing, we worked

with IHG to establish a state-of-the-art in-house print production

center.

Results

IHG now has a simplified pay-per-use pricing model for its printing

in Atlanta and has dramatically improved the quality and reliability

of the document services available to staff and guests. The in-house

print center has improved productivity, saved IHG over $1.5m a year

in external printing costs, and provided staff with an easier way to

produce professional documents and enhance the IHG brand.

Based on the outstanding results in Atlanta, IHG and Xerox have

begun to extend the optimization project to hotels and facilities

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Source: Xerox

“Xerox is ... making our back office so efficient ... that our managers and front-desk staff have more time to listen to our guests and make them feel comfortable. In our business, that’s what gives us the competitive edge.”

Paul Snyder Vice-President of Operations Portfolio (Americas) InterContinental Hotels Group

Before:

• In-house document management distracting from core

focus on guests

• Initial priority to address inefficiencies at corporate

headquarters

• High external print costs

Solution:

• Lean Six Sigma-based assessment of office

environment

• Optimization of infrastructure and replacement of

inefficient devices with state-of-the-art MFDs

• Utility pricing model for managed services

• Establishment of in-house print center

After:

• Improved quality and reliability of document services

for staff and guests

• Simplified pay-per-use pricing

• More than $1.5m saved per year on external printing

• International rollout

Xerox Enterprise Print Services in Action

In almost every industry across the world, organizations of

every size have turned to Xerox to help them manage their

print environments more effectively. As these three examples

show, we’re delivering on our promises to them and creating

both immediate and lasting benefits.

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British Telecom: Maximizing Cost Savings by Focusing on Service QualityIn the UK, where the majority of British Telecom’s 96,000 direct

employees are located, information flow is a complex affair between

more than 600 offices, exchanges, multi-building campuses and

other sites. Print is a major part of this flow of information, both

between colleagues and to customers and partners.

Challenge

Responding to new market pressures, British Telecom set itself

some aggressive targets to improve the quality of its services

while controlling costs and contributing to its green agenda.

With Xerox already responsible for British Telecom’s print and

reprographic services across the UK, the company looked to us to

help it meet these new challenges.

Solution

We worked closely with British Telecom to understand its priorities

and develop a service improvement program that is expected to

save £10.4m over four years.

The initial focus was on how to use the large fleet of office print,

scanning and copying devices at lower cost and with a smaller

carbon footprint, without sacrificing the quality and efficiency of

the services being delivered. A key element is the replacement of

end-of-life devices with ones that deliver a lower cost per copy, use

lower-cost consumables and are more energy–efficient. Another is

initiatives that encourage staff to reduce the amount they print.

Results

The office print service improvement program has improved

British Telecom’s user-to-printer ratio from 8:1 to 25:1, and its

print-related carbon footprint is assessed to be down by 50%.

Customer satisfaction ratings based on a regular survey of British

Telecom employees are exceeding target.

British Telecom recently renewed our contract for reprographic

services. As a trusted partner, we are working together to

gain even more efficiencies. We’ve committed to delivering

targeted savings of up to 40%, which will partly be achieved

by rationalizing 11 print rooms to 6, without loss of service

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Source: Xerox

“We’re building on an already strong partnership to improve a critical enterprise function … As a result we’re looking forward to achieving some really tough targets.”

Alan Quearns Services Manager British Telecom

Before:

• Aggressive targets for improving service and cutting

costs across 600 sites

• User-to-printer ratio of 8:1

Solution:

• Service improvement program, starting with office print

• Replacement of end-of-life devices with more efficient

ones

• Initiatives to reduce the number of pages printed

After:

• £10.4m targeted savings over four years

• User-to-printer ratio of 25:1

• 50% reduction in carbon footprint

• User satisfaction ratings exceeding target

• Targeted savings of 40% in reprographics

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Procter & Gamble: Treating Printing Worldwide as a Single ResourceWith 135,000 employees in 80 countries, Procter & Gamble

(P&G) produces millions of documents annually. Not long ago

the company was supporting 45,000 copiers, printers, scanners

and fax machines to produce this output: not a very efficient use

of resources with the average machine being used only by some

four employees.

Challenge

The problem wasn’t just operational costs. P&G’s staff was

dissatisfied with the reliability of office services and the company

had a corporate directive to operate more sustainably.

P&G realized that a big part of the problem was that its 200 facilities

worldwide were free to purchase their own devices and supplies

independently. The company needed centralized control. It wanted to

manage its worldwide print fleet as if it were a single printer.

Solution

Xerox addressed the problem by first applying our Lean

Six Sigma assessment process to P&G’s document-driven

processes, going so far as to measure employee activities with a

stopwatch to gather accurate data.

We identified a new process to improve productivity, reduce

waste and generate savings. We rationalized the printer fleet

and developed a web portal for online learning, procurement and

support. We delivered a change management program to support

staff during the transition to our managed Enterprise Print Service.

Results

With 130 out of 200 sites migrated to the managed service, P&G’s

office print fleet was down to just 10,000 devices, with an average

of 14.3 employees per device.

Process improvements are saving the company 138 business

days annually. Beyond these productivity improvements the

company has realized substantial savings and sustainability

benefits: reducing operating costs by 21%, paper consumption

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Source: Xerox

“Simplifying our global printing structure helps increase reliability and efficiency, transforming the way we work.”

Filippo Passerini Chief Information Officer and President Global Business Services, Procter & Gamble

Before:

• No centralized control across 200 sites worldwide

• Wasteful printing: devices used by only four

employees

• Staff dissatisfaction with reliability of service

Solution:

• Worldwide managed print service

• Up-front assessment leading to new processes

• Device rationalization

After:

• User-to-device ratio now 14.3:1

• Printing costs reduced by 21%

• Paper consumption down by 30%

• Energy costs down by 30%

• 138 business days saved annually

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Managed Print Services from Xerox The facts to back it up

• 20+ years delivering document- and print-related services

• Thousands of MPS deployments globally

• 30+ years developing environmental technologies such as

duplex printing, n-up functionality and solid ink

• More than 500 locations with 90,000 front-line delivery

professionals working in our services group

• Network of global ITIL-aligned shared delivery centers

delivering 24/7 client support

• Experts in Lean Six Sigma methods to reduce costs, process

variability and waste

• More than 9,400 active patents – a testament to our ongoing

dedication to innovation

About Xerox Services.

Xerox Corporation is a world leader in business process, information technology and document outsourcing services. Our unique

combination of industry expertise and global delivery capabilities helps you reduce costs and streamline operational processes while

clearing the way for you to focus on what you do best: your real business.

To learn more about Xerox Managed Print Services, please contact your Xerox representative or visit us at www.xerox.com m

©2011 Xerox Corporation. All Rights Reserved. Xerox® and Xerox and Design® are trademarks of Xerox Corporation in the United States and/or other countries. 02/11

A trusted partner

Thousands of businesses in more than 150 countries around the

world rely on us every day to manage their print environments.

Our technologies, expertise and services enable your business

to operate more efficiently and effectively in the office, whatever

the situation.

With Xerox at the heart of your company, you’re ready to take on

the world of real business.