Improving Profitability by Leveraging Technology and Best Practices

Improving Profitability by Improving Profitability by Leveraging Technology & Best Leveraging Technology & Best

PracticesPractices

Graham Riley & Mike Theis

Iron Mountain

Education code: MO02-2582

Learning Objectives

Identify inefficient workflows Build a cost and benefit analysis model Identify key stakeholders Communicate the fiscal value of best

practice adoption to senior management Make recommendations for workflow

improvements based on best practices

Agenda

The Financial Landscape– Value– Organizational spend– Total cost of ownership of informational assets

Case Studies

Next Steps

Understanding Value, the Corporate Cost Structure &

RIM Spend

Definition of “Value”

Number represented by a figure– relative worth, merit, or importance– monetary worth, as in commerce or trade– equivalent worth or return in money– estimated or assigned worth; valuation– denomination, as of a monetary issue– quality of anything which renders it desirable

or useful

Positioning RIM Services Value

RegulationAccording

Information Growth

ChangingRegulatoryEnvironment

Physical & DigitalRecords

Positioning RIM Services Value

Bear

Bull

BrandRisk

Security

BrandRisk

Security

Organizational Spend

Cost

Direct Indirect

Managed UnmanagedUnmanagedSoft $$$’sSoft $$$’s

Examples of RIM Indirect Spend

Real estate (Storage)– Rent or tied capital– Security– Fixtures & fittings– Heat & light

Information technology– Hardware– Software– Services & support

Labor– RIM– Legal & Admin– Tax & Audit– Facilities

Transportation– Own or outsource

RIM Resources: Usage/Access

Current

Very High

Medium

Some

Low

Very Low

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Fre

qu

ency

Time

Records

Current Spend Pattern

Year 7Year 6Year 5Year 4Year 3Year 2Year 1

$10’s

$100’s

$1000’s

$10K’s

$1 M

$10’s M

Co

sts

Time

ServicingBusiness

Needs

Servicing

Compliance Needs

Records

Desired Spend Pattern

Year 7Year 6Year 5Year 4Year 3Year 2Year 1

$10’s

$100’s

$1000’s

$10K’s

$1 M

$10’s M

Co

sts

Time

ServicingBusiness

Needs Servicing

Compliance Needs

Records

Reduced Spend Pattern #1

Reduced Spend Pattern #2

Case Study Selection Criteria

All represent a minimum of a 10% reduction in the overall cost of ownership for that RIM function

All have the ability to be implemented without capital expenditure

All have a reporting mechanism and data that is currently available to the RIM professional FREE of charge

Case Study Disclaimer

You have full and open access to your organization’s workflow and cost metrics

Best practice must be presented to and championed by appropriate authority and decision-maker within your organization

Without the organization’s openness to change behavior, then no guarantees of any improvements in profitability!

Case Studies

- Private technology company- Over $250 million in revenue- Multiple locations within single campus

- Offsite (Tape) Media Management Services- Tape storage for disaster recovery & backup- Specifically transportation and internal tape delivery & distribution

- Need for “special delivery” trips- Under utilizing distribution device capacity- Unknown media requirements- High transportation cost

Imp

act

Bu

sin

ess

RIM

F

un

ctio

n#1: Technology (IT) Company

#1: Technology (IT) Company

$ $ $$

$$

#1: Technology (IT) Company

Wheeled Container

Capacity of 480 Tapes Each

#1: Technology (IT) Company

$ $ $$

$ $ $$

#1: Technology (IT) Company

Hand Held Containers Capacity

of 40 Tapes Each

Pro

fita

bil

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Imp

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#1: Technology (IT) Company- 1 trip per week for tape drop off / pickup- Requires 2 special delivery trips per month- Use 3 x 480 wheeled containers- Peak tape activity does not exceed 120

- Add additional scheduled trip per week- Double existing trip frequency per month- Implemented use of 3 x 40 pack containers- Managed vs. unmanaged costs

- $22,206 cumulative savings- Savings of 48% per annum- Eliminate need for “special” trips- Free up other “budgetary” dollars

#1: Technology (IT) Company

Old WorkflowNew Workflow$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$20,000

$15,000

$10,000

$5,000

Year1

Year2

Year3

Year4

Year5

Year6

Year7

#2: Healthcare ServicesIm

pac

tB

usi

nes

sR

IM

Fu

nct

ion

- Under utilization of shred container capacity- Seeing costs for shredding increase- Under-utilized real estate

- Secure document destruction (shredding)- Specifically shred container placement

- 20 yr old healthcare services company- Multiple locations on campus- Over 8,000 employees

#2: Healthcare Services

#2: Healthcare Services

#2: Healthcare ServicesP

rofi

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pro

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Bes

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& T

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- $55,692 cumulative savings- Savings of 25% per annum- Adoption of “shred all” policy- Free up needed space

- Conducted a shred container audit- Little or no paper in many consoles- Managed employee awareness

- Large # of shred consoles in single facility- Billed per container regardless of volume - Consoles located next to each other

#2: Healthcare Services

Old WorkflowNew Workflow

Year1

Year2

Year3

Year4

Year5

Year6

Year7

$50,000

$100,000

$150,000

$200,000

$250,000

#3: Local GovernmentIm

pac

tB

usi

nes

sR

IM

Fu

nct

ion

- Enhanced building security requirements- Duplicated delivery efforts- Budget restrictions

- Offsite Records Management- Specifically offsite record retrieval workflow

- Local government body (Top 20 metro area)- Established in 1850’s- 2010 budget of $1 Billion+- Multiple locations with over 9,000 employees

#3: Local Government

Daily File Delivery

Multiple 3rd Party Delivery

$$$$$

Internal Delivery$

#3: Local Government

Daily File Delivery

Internal Delivery$

Pro

fita

bil

ity

Imp

rove

men

tB

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Tec

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ow - Multiple packages shipped to single facility

- Packages delivered daily to end-users- Individual delivery trips per package

- Multiple deliveries to one central location - Package delivered by internal workflow

- $143,780 cumulative savings- Savings of 84% per annum- Improved building security- Centralized delivery process

#3: Local Government

#3: Local Government

Old WorkflowNew Workflow

Year1

Year2

Year3

Year4

Year5

Year6

Year7

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$60,000

$40,000

$20,000

#4: Law FirmIm

pac

tB

usi

nes

sR

IM

Fu

nct

ion

- Handling costs for 19,000+ cubic feet annually- Unnecessary transportation of files- Onsite workflow distribution costs

- Offsite records management workflow- Specifically retrieval & handling fees

- Top 200 Law Firm in US- Employs in excess of 400 attorneys- Revenues in excess of $200 MM per annum

#4: Law Firm

Retrieve Receive

25-30 Boxes/Day

3.0 Cube Box

Requestor Documents

End User

#4: Law Firm

Retrieve Receive

25-30 Boxes/Day

1.2 Cube Box

Requestor Documents

End User

#4: Law Firm

Retrieve Digital Repository

End User

Scanned

Pro

fita

bil

ity

Imp

rove

men

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ow - Variety of box sizes storing records

- Record retrievals at the box level- 96% of boxes retrieved 3cf or greater

- Move material to smaller (1.2cf) boxes- File retrieval activity remained the same- Possibly retrieve records without retrieving box

- $297,255 cumulative savings- Savings of 64.32% per annum- Eliminate costs related to lost files

#4: Law Firm

#4: Law Firm

Old WorkflowNew Workflow

Year1

Year2

Year3

Year4

Year5

Year6

Year7

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$200,000

$150,000

$100,000

$50,000

- Private technology company- Under $10 million in revenue- Records located in multiple US locations

- Records Management- Physical records located on-site and offsite- Specifically internal records workflow management

- Significant response time to address issues- Low customer satisfaction- Revenue retention issues- Lost documentation

#5: Educational ServicesIm

pac

tB

usi

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Fu

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ion

#5: Educational Services

Client

Location A

Location B

1 Day

Copy MachineCustomer Service

2-4 Days

1 2

3

3

1-3 Day4

5

6 Out of State

#5: Educational Services

Client

Location A

Location B

1

Out of State

Digital Repository

Scan

Shred

Customer Service

2

3

3

4

5

0-1 Day

#5: Educational Services

Digital Repository

0-5 Minutes

Customer ServiceClient

DayForwardProactive Scan

#5: Educational ServicesP

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- $394,000 cumulative savings- Year over year continued reduction- Improved customer satisfaction- Free up high cost real estate

- Store documentation in centralized location- Image new files as received- Image legacy files as requested- Access real time

- Retrieve records from both on and offsite- Records received and copied internally- 1-4 day turn time to address customer issue

#5: Educational Services

Old WorkflowNew Workflow

Year1

Year2

Year3

Year4

Year5

Year6

Year7

$500,000

$600,000

$700,000

$800,000

$900,000

$1m

$400,000

$300,000

$200,000

$100,000

- Fortune 500 manufacturing company- $15 Billion+ in annual revenue- Global

- Offsite Records Management - Electronic Document Management - Specifically imaging critical records

#6: Manufacturing CompanyIm

pac

tB

usi

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sR

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Fu

nct

ion

- Increased risk of transporting Int. Property- Long turn times to access information- Unreliable data delivery to end users- Escalating transportation costs

#6: Manufacturing Company

Digital Repository

2-3 Days

3rd PartyStorage

End User

2-3 DaysData

CD/DVD

RemoteScan Local

2-3 Weeks

2-3 Days

UPS3rd Party Internal Mail FedExUSPS

#6: Manufacturing Company

1 Day

Digital Repository

End User

Prep & Barcode

3rd PartyImage & Store

FTP3 Days

UPS3rd Party Internal Mail FedExUSPS

#6: Manufacturing Company

- $641,480 cumulative savings- Savings of 59% per annum- Improved access time for users

Pro

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- Stage information upon initial arrival to HQ- One vendor for transportation, imaging and storage of both physical and digital records

- IP information received from global locations- 3-4 week turn time for imaging- Excessive transportation costs

#6: Manufacturing Company

Old WorkflowNew Workflow

Year1

Year2

Year3

Year4

Year5

Year6

Year7

$4000,000

$600,000

$800,000

$1m

$1.2m

$200,000

#7: Medical Device CompanyIm

pac

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- Unmanaged costs with multiple vendors- Fragmented process: Policy but no practice!- Increased exposure to risk of information leakage

- Fortune 1000 company- Over $4.5 Billion in revenue- Global

- On and offsite records management- Secure document destruction- Specifically multi-vendor management

StoreVendor 2

MicroficheInternal Resource

ScanVendor 1

End User

#7: Medical Device Company

Digital RepositoryVendor 4

FilmVendor

3Store

Vendor 2

ShredVendor

2

ScanVendor

2

ShredVendor

2

ScanVendor

1PrinterInternal

Resource

#7: Medical Device Company

Digital RepositoryVendor 1

FilmVendor

1Store

Vendor 1

ShredVendor

1

ScanVendor

1

ShredVendor

1

ScanVendor

1

StoreVendor 1

MicroficheInternal Resource

ScanVendor 1

End User

#7: Medical Device Company

- $1,087,000 cumulative savings- Savings of 36.8% per annum- Improved response time to users- Standardized policy & practice

Pro

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- Consolidate all functions within one vendor- Single-repository for all digital assets- Standardized indexing & access mechanism

- Utilize four different service providers- Storage, imaging, fiche/film, shred, DMS- Inefficient access to data

#7: Medical Device Company

Old WorkflowNew Workflow

Year1

Year2

Year3

Year4

Year5

Year6

Year7

$1.5m

$2m

$2.5m

$3m

$3.5m

$1m

$500,000

Next Steps

What You Cannot Control!

Economic viability of your organization What your management & end-user

community see as valuable Access to the final decision-maker Federal, State or County laws and

regulations appropriate for your industry Organizational “culture” or openness to

change

#1: Subject Matter Expertise Development

We communicate with far greater confidence,conviction and clarity when we are comfortable

with the topic under discussion.

What YOU Can Control!

#2: Improve your presentation quality

There are two kinds of presentations, product or service-focused presentations

& business function-focused presentations.

What YOU Can Control!

#3. Help your organization focus on future

90 percent of life's excitement is in the future; however, most challenges today are due to

decisions made in the past.Not that all past decisions were bad, they

simply reflected what was known at the time and business needs change over time!

What YOU Can Control!

“I am improving the profitability of the company by providing the Enterprise

(location, division or department), with the ability to securely manage ALL information regardless of the format, media type or location in a

cost-effective & compliant manner!”

Your Response

Improving Profitability by Improving Profitability by Leveraging Technology & Best Leveraging Technology & Best

PracticesPractices

Graham Riley & Mike TheisIron Mountain

graham.riley@ironmountain.commichael.theis@ironmountain.com

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Education code: MO02-2582