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The session is a review of eight individual case studies covering physical and digital records management. You will acquire practical tools that will deliver real cost savings to your organization. Each case study represents at least a 10% savings in overall costs and the ability to be implemented without capital expenditure. The tools presented will equip you with the information and training to initiate a cost-savings project immediately.
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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
ity
Imp
rove
men
tB
est
Pra
ctic
e &
Tec
hn
olo
gy
Wo
rkfl
ow
#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
tab
ilit
y Im
pro
vem
ent
Bes
t P
ract
ice
& T
ech
no
log
yW
ork
flo
w
- $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
est
Pra
ctic
e &
Tec
hn
olo
gy
Wo
rkfl
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
tB
est
Pra
ctic
e &
Tec
hn
olo
gy
Wo
rkfl
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
nes
sR
IM
Fu
nct
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
rofi
tab
ilit
y Im
pro
vem
ent
Bes
t P
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ice
& T
ech
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w
- $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
nes
sR
IM
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
fita
bil
ity
Imp
rove
men
tB
est
Pra
ctic
e &
Tec
hn
olo
gy
Wo
rkfl
ow
- 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
tB
usi
nes
sR
IM
Fu
nct
ion
- 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
fita
bil
ity
Imp
rove
men
tB
est
Pra
ctic
e &
Tec
hn
olo
gy
Wo
rkfl
ow
- 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
[email protected]@ironmountain.com
Please Complete Your Please Complete Your Session EvaluationSession Evaluation
Education code: MO02-2582