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September 2015, IDC #IDCWP34W

White Paper

Are Your Business Processes Stifling Your Market Opportunity? Cost-Efficient Print and Document Management Through Smart MFPs

Sponsored by: OKI Europe Ltd

Jacqui Hendriks September 2015

EXECUTIVE SUMMARY

All companies need to consider whether they have the internal scalable systems in place to cater for a growing business. In addressing expanding IT challenges, companies must make crucial decisions about what to prioritise and where to invest to support further business growth, remain competitive, and retain as well as increase the customer base. Many businesses assume that the only answer is to make a significant investment in an enterprise resource planning (ERP) system. Although greater process automation and integration is required for employees to work effectively and efficiently, often smaller investments in customising workflow tools can provide sufficient automation and integration in a short timeframe to drive up productivity.

Today's smart multifunctional printers (MFPs) are more powerful and capable than printing devices of the past. Acting as on-ramps and off-ramps to the cloud, smart MFPs extend the utilisation of the device from primarily printing and copying paper-based pages to a customisable digital transformation tool, enabling companies to capture, integrate and communicate information. Smart MFPs are helping to redefine how workflow is performed. They can act as a platform for growth by providing cost- and time-efficient workflow solutions aligned with and in support of companies' business objectives — for example, improving compliance and security, while supporting mobility and cost-cutting initiatives.

Improving workflow is more than driving growth and productivity: it ensures the company is not bound by outdated paper-based processes (including physical storage) and inefficient workflows, injecting greater flexibility and agility into the organisation. The potential benefits allow the business to reinvest in core areas including reallocating existing resources to revenue-generating activities. This IDC White Paper discusses how smart MFPs address the needs of the evolving workplace, in terms of device and contract management, information management (capture, distribution, document and content management), mobility, security and output.

THE EVOLVING WORKPLACE

There are three key workplace trends that are driving initiatives to improve business process efficiency:

1. Exponential growth in information access. There has been an explosion in the growth of both information access capability and delivery. IDC predicts that the volume of data we

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receive will have increased sixfold over the past five years to 2015. The challenge is managing the information — making sense of the information accessed and delivering it in the most cost-effective and time-efficient way. An IDC study among information workers showed that they waste a significant amount of time each week on document-related challenges, which results in over a 20% loss in productivity per year1.

2. Balancing operational cost reduction versus increased productivity. As a result of the information explosion, companies have paid closer attention to their print-related operating costs. Over time, this key objective to reduce and better manage these costs has been extended to the overall business process and to better streamline activities to improve business efficiency and increase employee productivity. In reviewing leading initiatives on SMBs' business agendas, reducing costs is balanced with the need to improve productivity, to protect sensitive data and enhance customer care2 (see Figure 1).

3. Impact of the growing mobile workforce. By 2018, IDC predicts that 75% of the workforce will be mobile3. This includes employees working from mobile devices from home, on the road, from business premises or at customer premises. The growing mobile workforce has created a critical need for "anytime and anywhere" access to secure and accurate information. This valuable business intelligence is required in order to maintain and increase the productivity of the workforce.

FIGURE 1

European Business Initiatives

Q. Using a scale from 1 to 5, where 1 is "not at all important" and 5 is "most important", could you rate the following business initiatives in terms of how much they are leading your company's business agenda for the next 12 months?

Source: Extracted from Western Europe SMB Business and IT Priorities, 2014: IT Goals to Meet Business Need for Data Protection and Improved

Productivity — An IDC Survey (IDC #MM03W, June 2014)

0 20 40 60 80

Reducing operational cost

IT organisation contribution to business goals

Customer care enhancement

Sensitive data protection

Improving productivity

Top 5 Business Initiatives

% SMB respondents


Although there are a variety of solutions on the market to address print and document management challenges — combining hardware, software and services — the target customer market is typically the large enterprise.

When IDC asked SMBs about their opinions on business process efficiency (on a scale of 1 to 5 where 5 is "completely agree"), they agreed strongly that they needed to improve processes (score of 3.8) — with employee mobility a strong driver in support of digitisation (score of 3.6) — but they also need to justify the investment (score of 3.5)4 — see Figure 2.

FIGURE 2

SMB Business Process Efficiency Challenges

Source: Extracted from European SMB Print and Document Solutions Trends (IDC #KD57W, February 2014), n = 352

For many companies, the challenge of improving overall business process efficiency, and consequently employee productivity, seems overwhelming, but it is high on the SMB business agenda. They recognise clear advantages in improving processes through automation, but initiatives still take into account the need to reduce and control print-related costs balanced with key efficiency gains (see Figure 3)5.

This highlights how important it has become for companies to find ways to optimise existing human resources, for example, through easier access to information as a result of the introduction of or use of improved digital archiving and data search tools. Companies want to accelerate processes to drive revenue growth.


FIGURE 3

Key Benefits of Business Process Automation

Q. What are the key benefits of automated business processes? ALL that apply

Source: Extracted from European Hardcopy Usage Study: Print Services Market Trends (IDC #KD54W, February 2014), n = 302

THE ROLE OF THE SMART MFP

The smart MFP is a highly valuable tool for SMBs planning to improve and transform their processes. Print and document management solutions that once needed to be implemented separately to MFPs are now integrated into the hardware device to provide a richly featured cost-efficient tool designed for today's workplace. The dumb device has transformed into a smart print and document management solution.

IDC defines a smart MFP as being a printer-based multifunctional device that is network and/or Internet ready with a customisable graphical user interface (GUI) panel. In addition, it must have an open embedded platform that allows the MFP to be programmed to perform functions that are modified to specific requirements (e.g., addressing specific customer workflows). These functions are driven by software that is either embedded or server based (e.g., inside the firewall or in the cloud)6. It is built with an MFP architecture that allows a variety of document-related software solutions to be used with the device. As a result it extends its utilisation from primarily printing and copying paper-based pages to a device that is also integral for digitised processes.

For companies upgrading their hardware and reviewing how to better manage business processes, smart MFPs provide three key benefits:

1. They are easy to use, incorporating an intuitive touch-screen user interface not dissimilar to a tablet or smartphone, ensuring there are no inhibitors to end-user adoption.

% respondents

0% 20% 40% 60% 80%

Extraction of valuable and meaningful information f rom paper documents in an ef f icient way

More ef fective collaboration with business partners/suppliers

Archiving of documents in one place

Increased employee productivity

Reduce print-related costs


2. Set-up can be customised to provide only what your company needs, what a group of employees requires or should have access to (including security restrictions) with fast additional solutions deployment and upgrades.

3. They integrate affordable print and document management solutions for easy deployment across organisations for everyday time-consuming business processes. They introduce tools for greater efficiency and increased employee productivity.

In considering hardware and solution requirements, a smart MFP should include the following for everyday workplace usage:

Device and contract management: effective management for optimised device usage

Mobility: applications to support mobile working

Information management: easy-to-use solutions for capturing documents for searchable access and further distribution providing effective document and content management options

Security and output: ability to provide rights to specific users for access and control to protect companies' intellectual property

Although many print services focus on print hardware rationalisation — that is, reducing the number of devices available in a location — in many situations there will be justification for having a more distributed, rather than a centralised, approach. For example, in a customer-facing environment, where the value is one-to-one contact with a customer. As a result, distributed smart MFPs provide convenient options for processing information while still simultaneously engaging with customers.

Smart MFPs can provide many features which enhance the ability to conduct in-house printing, instead of outsourcing this activity to a third party. Also, by integrating a smart MFP with a company's core systems, such as enterprise resource planning systems, even greater streamlining of key processes is achievable.

Device and Contract Management

SMBs are accustomed to investing in device management solutions, rather than print and document management solutions. Figure 4 shows the common types of device management software deployed by company size. The investment in these solutions can be easily justified — they help both SMBs and their MFP providers to better manage both the partnership and contracts based on accurate information. It is a highly valuable means of clearly understanding user behaviour and actual quantifiable usage, enabling automated billing and providing accountability. In assessing which users conduct which activities at the device, companies are promptly aware of device utilisation, particularly in a distributed environment. Service providers can deliver proactive consumables replenishment and be alerted to service and maintenance requirements, reducing device downtime. Often overlooked is the ability to monitor a device's energy and toner consumption in line with sustainability initiatives that many companies have implemented or are considering.

Companies can also compare usage against service level agreements and modify contracts due to company changes, for example, in user behaviour and/or overall requirement.


FIGURE 4

Common Types of Device Management Software Deployed

Q. What types of printing and document management software does your company use on a regular basis?

Source: Extracted from European SMB Print and Document Solutions Trends (IDC #KD57W, February 2014), n = 352

Mobility

Organisations need to have greater control over how people work from their own personal (BYOD or bring-your-own-device) and business mobile devices to secure sensitive company data. In 2013, a third of companies allowed their employees to use their own personal smartphones, laptops and tablets, and the incidence was higher in companies of 1–249 employees — 45% for smartphones, 35% for laptops and 34% for tablets respectively5.

SMBs agree that employee mobility is driving the need to streamline processes and digitise documents. In addressing these needs, smart MFPs must offer secure printing from mobile devices to guard against any threats or viruses, to control access and to protect a company's intellectual property. Mobile print applications are becoming easier to use and more mobile devices are provided with print applications readily available. Consequently a smart MFP needs to be able to print seamlessly from all types of mobile devices.

Information Management

Companies are using a combination of paper-based and digital documents in their day-to-day operations, but a third of European companies are planning for a digital world (see Figure 5). Many companies would like to digitise documents to reduce physical storage in premium office or offsite space and one of the key benefits of business process automation is the ability to archive documents in one place. As a result, a third of SMBs use some kind of digital document storage software solution4.

0% 10% 20% 30% 40% 50% 60%

Device usage and reporting

Device management and remote diagnostic

All cases 250–499 employees 100–249 employees 10–99 employees Fewer than 10 employees

% respondents


However, it is the ability to extract valuable and meaningful information from paper documents in an efficient way that provides the key benefit of digitisation (see Figure 3). By providing access to scanning functionality, users can digitise information for searchable access and scan direct to a specified destination, eliminating the need for a paper trail.

FIGURE 5

Plans for a Digital World

Source: Extracted from European Hardcopy Usage Study: Print Services Market Trends (IDC #KD54W, February 2014), n = 302

Key features that a smart MFP can provide include:

Scan direct to email (employees' own or someone else's address), to a specified folder that may be on a network or cloud-based for further utilisation, or for archival. 66% of European companies see one of the key benefits of automating business processes as having archived documents in a single location5.

Various document formats can be scanned for output in PDF or PDF/A format, the latter meeting the need for longer-term digital archiving.

For scanned information to be of business value, users must be able to search within documents for relevant information quickly and efficiently. An improvement in workflow by providing "search and find" functionality would significantly improve employee productivity. Scanning and leveraging online optical character recognition (OCR) software enables users to electronically convert scanned documents into computer-readable text for editing, indexing, searching, processing and displaying in a more valuable way. For example, some smart MFPs allow users to convert tables into Excel format for further use.

An enhanced feature is for corporate email distribution lists and user email address books to be available from the device and, where smart MFPs are integrated with enterprise resource planning systems (ERPs), the ability to access the ERP's contacts database for rapid processing and communication.

For frequent workflow processes, user settings can be customised for easy access on the smart device. Ideally, as well as being able to scan to the cloud from the device, users

Q. Thinking about hardcopy outputs at your company, where do you think your organisation is currently?

Q. How likely is your company to move away from paper-based processes in favour of digitised document workflow?

1 - Not at all

likely, 8% 2 -

Somewhat unlikely,

16%

3 - Neither likely or unlikely,

41%

4 -Somewhat likely, 25%

5 -Completely likely, 9%

0% 10% 20% 30% 40% 50%

1 — 100% paper

2

3

4

5 — Mixed paper/digital

6

7

8

9

10 — 100% digital


should be able to retrieve information from the cloud at the device, performing selected printing — for example, a required single page from a large document.

28% of SMBs have implemented document capture software4, and in a separate study, 25% of respondents indicated that they planned to capture documents to workflow from a multifunction device in the next 12 months7. That is capturing documents as part of a process such as expense reimbursement, an accounting process and processing an insurance claim.

Security and Output

Providing "anywhere and anytime" access to employees raises many security concerns. Faced with access to greater volumes of sensitive digitised corporate information, companies need to pay closer attention to identifying which employees require access, should have restricted access, what information can and cannot be printed and by whom. Looking at IT workplace investment plans for Europe, IT security is a top priority (53%)8.

Smart MFPs can be programmed to provide customised tools for individual end users or departments. These can be accessed through the use of a secure ID card, secure PIN code or mobile device. Pull printing is a more common feature on MFPs today, enabling users to send a print job to a device. The print job is then only released once the user is physically at the device and has swiped a security card or entered a PIN code. 25% of European SMBs have implemented document security solutions (including user ID). The use of personal secure device access also provides companies with in-depth usage information beyond print, which is specific to an employee and a department.

Practical Examples

Increasingly, companies will be compelled to submit documents electronically, due to changing national and international processes driving demand for streamlined document workflow. There have been a number of initiatives among European public administrative bodies in an effort to streamline their operations. Here are just two examples9:

Austria, one of the first European countries to implement a complete digital platform to support its national justice system processes, offers one of the best examples. Through a six-year project, the country managed to shift 85% of civil actions and 60% of civil enforcements to digital processing on its electronic legal communication platform, which automated the processing of more than 3.5 million cases per year. The switch to digital court journals alone resulted in 95% cost cutting of publication costs.

The Italian justice system has a history of disappointing performance, scoring poorly against European peers on the time needed to resolve administrative, civil and commercial cases. In addition to this problem, cost-effective automation and general streamlining measures were needed to compensate for heavy budget cuts suffered by the justice system in the last few years. There was a three-year transitional period but as of July 1, 2014, all legal professionals operating in Italy were required to have access to a connected PC preset with a certified digital signature, certified electronic mail, an access point registered with the general registry of the justice system and text software for PDF creation and submission. They also have to use special legal document management software authorised by the Ministry of Justice.

In order to crystallise how smart MFPs can help your business, here are a few examples of simple process changes enabled by the use of smart MFPs that have a very positive effect on organisations.


Horizontal — Accounts Receivable

Scenario

Companies that currently use preprinted stationery to prepare and send customer invoices, often generated from a CRM system, for mailing (by post), can improve this process by utilising a smart MFP to automate the entire process and respond to growing customer demand for emailed communication rather than mailed hardcopy documents.

Solution

Using a smart MFP, the usual "print" output is routed via a core system to the correct electronic template and merged with the input data. By relating this to a customer account or reference number, specific customer details, such as delivery preference, can be leveraged and actioned. Where customers have stated that they prefer email communications, invoices can be emailed (the invoice is generated in PDF format and sent as an email attachment) but they can still be printed and posted if this is what the customer prefers. Businesses can then file information by customer in their document management system — indexed by customer name, customer number and invoice/credit code number for each search and retrieval.

Benefits

The key benefits to companies is that they can eliminate the use of preprinted stationery — for customers who want physical documents, their information can be merged with an online template before being printed. It also significantly reduces postage costs. It improves the productivity of the accounts department while increasing the accuracy, reliability and speed of invoice delivery, resulting in improved cash flow. Their customers are more satisfied with the delivery method, timeliness and accuracy of the invoice.

Healthcare (Hospitals) — Patient Records

Scenario

Key hospital staff such as doctors, surgeons and radiologists work in different locations but need to share accurate patient information. They need a central repository to retain all patient documents, often in different formats (x-rays, patient history, prescriptions, etc.) with the ability to quickly gather all relevant information for each patient, also keeping in mind the need for patient records in support of health and insurance policies.

Solution

Hospitals can use a single customised button on the smart MFP's touch-screen panel to scan all documents and convert each page to searchable PDF format. The user can be prompted at the smart MFP to enter a patient number or scan a barcode unique to a patient within a document to recognise the correct patient to route sensitive documents for archiving and indexing. Indexing could be by a unique patient number, insurance policy number, name, etc.

Benefit

The key benefit to the healthcare service is that all inbound documents are scanned, indexed and stored efficiently. The information for a single patient is available in one file for easier access and review, providing the healthcare service with the ability to vastly improve patient services.


Retail — Human Resources Management

Scenario

The retail industry moves rapidly and improvements that can divert more employees to increasing revenues are greatly welcomed. In terms of recruitment, there are many applicants for each job vacancy. Details for unsuccessful applicants, with potentially valuable skills for future job openings, are often placed on file but the details are often difficult to find and, as a result, the former applicant needs to reapply or is overlooked. Retailers have various approaches to advertising job vacancies — for example, through local agencies, via corporate websites, on job boards in stores, etc.

To make the process efficient for both applicants and retailers, the ability to hold all applicants' information electronically and to easily extract information about skills aligned to new job vacancies would accelerate the recruitment process — particularly valuable where staff turnover is seasonal and in sectors where there is rapid turnover of staff. A shortfall in resources in some environments can have a rapid negative impact on customer satisfaction and retention as well as brand image.

Solution

Retailers' human resources (HR) departments can leverage the tools available on a smart MFP. Through a single customised button which is configured to scan documents and convert each page to searchable PDF format, HR can directly store applicants' information in the cloud — for example, application forms or curricula vitae, indexed by the applicant's name, type of position, as well as other metadata for complex searches. Secure and fast access is enabled via a web portal repository such as MS SharePoint or SalesForce.com and linked to the corporate web page for fast access to a database of potential candidates for shortlisting.

Benefit

This provides HR departments with an efficient way of finding potential candidates for new positions by reviewing more recent applicants already on file, aligning skills with the vacancy's requirements. It eliminates the frustration of trying to locate previous applicants and enhances the image of the organisation with applicants, highlighted by an efficient recruitment process. The recruitment process is accelerated, diverting more of the HR department's time to other employee issues.

SUMMARY: FIVE REASONS WHY SMART COMPANIES USE SMART MFPS

Given the changing market conditions and new workplace requirements, smart MFPs offer all organisations a hardware and software solution that can be customised to meet specific day-to-day business requirements. IDC has highlighted some practical examples in the section above and, in summary, identified five key reasons why companies should adopt smart MFPs.

1. Enhanced MFPs provide integrated software tools for affordable business process solutions:

A third of companies are planning for a digital world5

European SMBs are balancing their efforts to reduce operational costs with initiatives to improve productivity, protect sensitive data and enhance customer care2


2. SMBs are increasingly aware that they need business process solutions to help them increase productivity. Smart MFPs respond to their demand for these productivity solutions to meet the diverse business automation needs of the new workplace:

Almost 70% adopt business process automation tools for increased employee productivity5

Digitisation is strongly driven by employee mobility4

A key benefit of business process automation is seen as archiving documents in one place with the ability to extract meaningful information easily5

3. Easy and secure access to integrated productivity tools:

Customised functions on smart MFPs provide secure access to sensitive patient/employee/customer data that is essential to accelerating critical processes

Alignment with workplace concerns and priority investment on IT security (53%)8

4. Use of an intuitive user interface:

Increasing ease of use of the device interface accelerates end-user acceptance and adoption of integrated device tools

Mirroring the interface of typical mobile devices — laptops, mobile phones, etc.

5. Easy activation and upgrade of additional software features:

Very similar to laptop, tablet and mobile phone software upgrades

Integration with other IT projects and also a variety of provider solutions5

SOURCES

1. Bridging the Information Worker Productivity Gap: New Challenges and Opportunities for IT (IDC #233098, 2012)

2. Western Europe SMB Business and IT Priorities, 2014: IT Goals to Meet Business Need for Data Protection and Improved Productivity — An IDC Survey (IDC #MM03W, June 2014)

3. Western European Mobile Workforce Forecast Update, 2013–2018 (IDC #LM58W, April 2014)

4. European SMB Print and Document Solutions Trends (IDC #KD57W, February 2014)

5. European Hardcopy Usage Study: Print Services Market Trends (IDC #KD54W, February 2014)

6. IDC MarketScape: U.S. Smart Multifunction Peripheral 2013 Vendor Assessment (IDC #245058, December 2013)

7. Document Processes Survey 2013: User Needs and Strategies (IDC #247675, March 2014)

8. European Enterprise Survey 2014: Buyers' Attitude to Workplace and Mobility Services (IDC #AE02W, July 2014)

9. Emerging Process Automation Opportunities: Italian Justice System Goes Paperless (IDC #KD60W, June 2014)

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.

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