In 2001, the international research group, Gartner released a briefing paper titled 'Rightsizing Output Fleets – The Hidden Gold Mine'. This research paper identified total print costs to be as much as 1-3% of an organization's revenue, a figure far higher than anyone had previously suggested. Gartner argued that print costs are so high they offer a 'goldmine' for any procurement or IT manager looking for savings.
Breaking 'The Gartner Code'
The fact and the fiction behind
print reviewsIn 2001, the international research group, Gartner released a briefing paper THE RISE OF titled 'Rightsizing Output Fleets - The OFFICE PRINT COSTS1Hidden Gold Mine'. This research paper identified total print costs to be as much as 1-3% of an organisation's revenue, Against the prediction of the digital a figure far higher than anyone had pioneers, the age of the paperless previously suggested. Gartner argued that office remains a fantasy. People are print costs are so high they offer a 'gold printing more than ever before despite mine' for any procurement or IT manager the ubiquity of e-mail and electronic looking to make savings. information. According to the Office of National Statistics, paper consumption in The print and copier vendors seized the UK increased more than 16% between Gartner's report and twisted the data 1994 and 2004 and continues to rise. to promote multi-functional equipment Yet, the true extent of the rise in office as the simple answer to achieving printing costs has remained submerged the savings. So procurement and IT in a myriad of different budgets and departments have been inundated with cost codes. When Gartner produced a offers for a free 'print cost review' that briefing paper identifying total print costs will uncover Gartner's 'hidden gold in a typical organisation to be between mine' of potential cost savings. Yet 1-3% of their revenue, many senior many of those managers who have had procurement and operational managers a print review have been disappointed were shocked and printing suddenly by the results, discovering that it has became a target for cost control.been no more than a guise to sell more equipment. Gartner revealed that the spread of responsibility and budgets for office This White Paper uses NewField IT's printing (which covers all printed output analysis of more than 22,000 devices from copying to printing to faxing) meant in ten different countries over the last few companies had any idea of the total two years to separate the fact from the costs. Printers were the responsibility fiction behind print costs and clarify what of the IT department, printer cartridges makes a good print review. Our research were procured locally and copiers has identified more than £6 million of were controlled by the Facilities or direct savings for more than 20 different Procurement department. Gartner looked organisations. So, whether attempting at all the costs associated with office to understand the costs through in-house printing, from direct costs (hardware, research or using an external provider, consumables and maintenance) this document provides the reader with to indirect costs (power, wastage, the guidelines on what to look out for and procurement costs, and helpdesk calls). avoid the disappointment of uncovering Their analysis suggested that these costs 'fool's gold'! could be reduced by as much as 30%.
The Gartner report was seized upon by the copier and printer sectors as the justification for companies to adopt the new multi-functional technology they had developed. Within a few years every copier and printer vendor (and several of their resellers) was pedalling 1 Rightsizing Output Fleets - The Hidden Gold Mine, J.Lundy, Gartner Group, 2001
2a print cost review purporting to save than a multi-functional copier (false). between 20-40% of a company's print The confusion stems from the different costs. Each vendor had a different approach the copier based companies perspective on how to tackle Gartner's have taken to the printer based ones in 'hidden goldmine' and each one had its their pricing.own theory on how to best calculate the costs. So to help anyone looking to review their print costs and calculate a cost per page, In the excitement of discovering a new here is a quick overview of the main savings opportunity, several companies components of the direct costs.started print reviews, usually on the back of advice and reports from copier and printer vendors. Some even started Hardware Coststhe programme in-house, but all were frustrated by the difficulty in identifying Hardware costs cover the direct costs of the full costs and being able to compare acquiring a device. In the case of printers these against different technologies. this will be the purchase price, which if a Even the hardware vendors were small desktop w... [download for more]
