Enterprise Document Management, Part III: Centralized Production Printing

Integrating Data Center-Driven Print and Reprographics for Increased Asset Utilization, Cost Savings and Efficiencies

This article, the third in a series, is designed to provide you with an overview of the issues and costs associated with enterprise document management. Parts one and two are available for your review.

U.S. companies, financial services organizations included, spend an estimated $50 billion a year in their centralized print operations. In-house print shop or reprographics departments are producing everything from data center-driven account statements, customer notices and checks to company stationery, reports and compliance documents. Though centralized printing is typically more cost-effective than desktop printing, this advantage erodes quickly if equipment is underutilized or current contracts are misaligned with actual usage.

Critical Functions for Business Success
By looking at documents produced by financial services organizations as a whole, cost savings and process efficiencies abound. For most financial services organizations, printing occurs in several distinct environments; each with its own discrete management and reporting structure. For example, centralized reprographics, more commonly known as the print shop or copy center, may be a part of mail or graphics services, whereas data center printing remains steadfastly part of the information technology organization. 

Centralized printing in most banks and other financial services organizations is typically a data center-driven environment that produces a high volume of transactional documents, along with other data printing needed for the internal operations of the organization.  Data center-driven personalized documents and customized statements can bolster a financial institution’s marketing activities by capitalizing on knowledge collected about customers. 

Many financial institutions are challenged, however, to integrate dissimilar collections of customer data with the systems and technologies that support the document communications process.  For those organizations that overcome these technical hurdles and build documents tightly integrated with customer account information, more strategic results in market expansion and revenue growth can be had. 

Additional reprographic or copy center printing which accommodates moderate finishing requirements may also be centralized.  Typically, these centers produce manuals, directories, catalogs, and booklets, but the range of work depends on the nature of the organization, the management structure and outsourcing arrangements.

Real and Measurable Cost Reductions
Through close analysis of both data center and in-house print/copy center environments-their resources, technology, service levels and requirements-opportunity exists to integrate the printing environments, better utilize assets, and negotiate more appropriate services and supplies agreements to reach an optimized state.

According to a January 2006 InfoTrends survey, 17.5 percent of respondents in an in-house data center producing mostly bills, statements and business systems output indicated they are beginning to produce graphic arts applications, print on demand and reprographics, while another 22.5 percent indicated they plan to merge their facilities with a print shop that focuses on producing graphic arts applications, print on demand and reprographics.  Similar results were had among in-plant print or copy departments currently producing primarily publications, promotional and office jobs.  In both environments, the desire to merge facilities can be witnessed. 

On a cost-per-copy basis, it often makes sense to print documents in a centralized production center.  Compared to office printing, economy of scale generally provides centralized production facilities a much lower per-page cost than is found using desktop printers.  This cost advantage erodes quickly, however, if equipment is underutilized or if the current contracts are misaligned with current usage.  With trends leaning toward declining volumes and attention focused on desktop printing or other digital delivery methods, many centralized printing departments find themselves working under sub-optimal agreements or without sufficient volumes to sustain their investments.

Improvement goals for centralized printing centers focus on increasing utilization in copy centers, where appropriate, and reducing the total cost per copy to the enterprise in lieu of more expensive desktop printing. Experience has proven hard dollar savings of 21-75 percent in this environment. By reviewing contract and equipment levels for data center printing, efforts can be applied to identify appropriate equipment sizing through analysis of ongoing user demand. As needed, like processes can be consolidated, and equipment lease and service contracts renegotiated to be more flexible and cost-effective.

Next Insights: External Printing
The next issue of Insights will give you a closer look at the costs, trends and best practices associated with the external printing environment, commonly referred to as four color or process color printing.  However, if you want immediate information about gaining a comprehensive view of your enterprise, contact us now.