Ricoh Document Governance Index Oct09

Ricoh Document Governance Index - October 2009 Conducted across Belgium, France, Germany, Italy, Netherlands, Spain and the United Kingdom & Ireland

An exclusive research report from Coleman Parkes Research

Contents 1.0 Introduction to the Ricoh Document Governance Index

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2.0 Executive summary

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3.0 Overview of key findings

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4.0 Spend on document governance is essential to the business yet not managed strategically

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5.0 Control of document spend is sporadic and uncontrolled

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6.0 Responsibility for document governance is decentralised

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7.0 Surface level view of benefits overlooks long term gains

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8.0 Summary

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9.0 Conclusion

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10.0 Ricoh’s solutions to govern documents effectively

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1.0 Introduction to the Ricoh Document Governance Index This study was conducted by independent research firm Coleman Parkes Research. It was conducted to provide a fresh insight into document management, how it is governed in Europe and how it fits in today’s economic and technological climate. The term document governance is being used and is defined as the way an organization controls and manages its business documents. It includes effectively managing the costs, technology, sustainability and security of documents across its operations. A total of 311 detailed interviews were conducted during July and August 2009 with senior decision makers (C-level or equivalent) in Belgium, France, Germany, Italy, Netherlands, Spain, and the United Kingdom & Ireland. All respondents work in either medium or large companies in the Financial Services; Professional Services; Public and Telecommunications / Utilities and Media sectors across Europe. They are responsible for document management within their respective organisations. The survey was conducted under controlled conditions to ensure it provides representative information across Europe and within each targeted vertical sector.

2.0 Executive summary This study shows that, despite the fact that 77 per cent of European leaders are aware of the benefits of a document governance strategy, more than three quarters of them have not yet fully implemented a plan within their business. The lack of cost management is having a direct impact on their bottom line. Moreover, the processes that are in place are sporadic and uncontrolled, with overall responsibility fragmented and decentralised. In many cases several people across the organisation are responsible and the ownership of the process is not clear. The absence of a strategic approach means businesses are missing out on the benefits of a more efficient, sustainable and secure working environment. Therefore, they are leaving themselves vulnerable to duplication of activity and inefficiencies that are affecting their costs and their overall business performance. The reality is that implementation of such a strategy can be easily addressed. The next step for business leaders is to move away from the conventional and short-term view of managing documents to a long-term governance model that complements the wider business needs. A document governance strategy can be integrated seamlessly into an organisation’s existing infrastructure. It simplifies business processes and offers both short and long term benefits such as, reducing costs and environmental impact, increasing security and applying more effective allocation of resources. This enables business leaders to focus on driving the growth of their core business.

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3.0 Overview of key findings • Document governance is essential to the business but is not high on the strategic agenda Total spend on document management in Europe currently exceeds an estimated €14 billion per year 1, with companies spending up to 5 per cent of annual turnover. Just over a third (39 per cent) of companies have implemented a document governance strategy to manage this important area for the business. • Control of document spend is sporadic and uncontrolled This lack of strategic governance of document activity underpins some interesting findings with regards to cost control. With just 45 per cent of companies in Europe monitoring costs on a regular basis, businesses are leaving themselves vulnerable to duplication of activity and inefficiencies that are directly impacting the bottom line. • Responsibility for document governance is decentralised The Index finds that responsibility for document governance is decentralised with no single function accountable for this area. In many cases, several people are accountable for the often limited document governance policies in place but more often, responsibility is devolved either to department heads or individuals. • Short term view of benefits overlooks longer term gains Encouragingly, the report found that the majority of senior executives – 77 per cent – appreciate the potential to make cost savings as a result of document governance, but the results highlight lower awareness of the longer term benefits. Whilst lower printing costs are acknowledged by 81 per cent of respondents as a key benefit, senior executives were less aware of the benefits of document governance in terms of improved security, document workflow efficiency and employee productivity.

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Based on estimated spend on document management as a percentage of monthly turnover

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4.0 Spend on document governance is essential to the business yet not managed strategically Just over a third of European organisations have a fully developed document governance strategy in place The report reveals that business leaders estimate that they spend around €14 billion per year on document management and up to five per cent of their annual turnover. Despite being an important and integral part of day to day business, few companies demonstrate formal processes to manage and monitor their activity. At first sight the existence and implementation of document governance policies appears to be encouraging with around 4 out of 10 companies across Europe implementing a fully developed strategy and a further 14 per cent saying they will implement one soon. However, closer examination of the data reveals that over half are not implementing a strategy at present with one third doing no more than issuing a series of guidelines or leaving departments to decide their own approach. Figure 1 – Implementation of formal document governance strategies

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At a country level, the findings are consistent and even in Belgium (where companies are most likely to have a document governance strategy compared with their European peers) just over half of organisations currently implement a fully developed document governance strategy. At the other end of the scale, in the UK & Ireland just over a third (34 per cent) of companies have implemented a document governance strategy and in France, this level drops to one quarter (26 per cent) of companies. Interestingly, a sizeable proportion of companies leave the responsibility of document governance to individual departments. In Spain, almost a quarter of companies (24 per cent) are taking this approach and in the Netherlands, 1 in 5. We will explore the issue of a decentralised approach much more in Section 3 but on initial observation, with such a fragmented approach and so few companies focussing on document governance, it’s highly likely that companies are exposing themselves to cost and environmental inefficiencies, and an increased risk of security breaches. Figure 2 – Implementation of formal document governance strategy

Where respondents did not have any form of document governance in place, the most cited reason – almost 1 in 3 – was that there was no perceived need. Others felt that they do not have the internal resources to manage such a policy (24 per cent) or that there was no senior management support for such a strategy (20 per cent). These responses highlight some of the challenges that lie within business and the need to raise awareness of the key benefits of a strategic approach to document governance.

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5.0 Control of document spend is sporadic and uncontrolled 38 per cent review document costs only ‘sometimes’ and as many as 17 per cent never review these costs at all. Despite the existence of document production at all levels within an organisation, the management of the costs is sporadic and uncontrolled. Almost half of the organisations questioned recognise that their investment in document governance is increasing year-on-year, yet the monitoring of these costs is unstructured, and the full potential to measure their investment is not being realised. Less than half (43 per cent) actively monitor document costs on a regular basis and a sizeable minority of nearly 1 in 5 (17 per cent) do not monitor costs at all. Figure 3 – Monitoring document governance costs

Overall, relatively few European companies are monitoring document governance costs regularly across the whole organisation. Belgian and Spanish companies were least likely to actively monitor costs (32 per cent and 36 per cent respectively). In Italy, just 10 per cent of companies said that they do not monitor document costs and almost half (44 per cent) only monitor costs ‘sometimes’, therefore not gaining a consistent view of document activity and how it is supporting their business. 7

Interestingly, when asked how much their company spends on its document governance activities in an average month, around one fifth of those claiming to monitor costs were unable to provide figures.

Overall, it’s also clear that in many European organisations, the group wide figures are buried deep within the organisation and knowledge of the costs involved is often vague or incomplete. Those companies that did provide data indicated that most of the costs were related to an individual or division rather than providing a figure that considered the business as a whole. Therefore, it is likely that the total estimated investment by the respondents is a modest indication of the real value. This is perhaps not surprising given that responsibility for document governance frequently resides with department managers such as the HR Director or Office Manager. One third of senior managers, rising to 42 per cent in Belgium, admit that they do not know the average monthly cost to their business (or presumably, where to find such a cost). Such limited awareness of the costs involved is worrying given that effective management relies on visibility. Figure 4 – Lack of knowledge of printer costs

Certainly, there is an understanding of the need to monitor and manage costs, but for as many as 57 per cent it isn’t a regular occurrence, meaning that clear opportunities to drive efficiency, increase productivity, reduce environmental impact and enhance security are being missed.

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6.0 Responsibility for document governance is decentralised In most cases, several people are responsible for document governance and no single function holds total responsibility. Across European companies, the responsibility for overseeing and managing document governance is diverse and widely distributed with departmental managers (including HR Directors, Office Managers, sales and marketing heads, etc.) holding at least partial responsibility in 6 out of 10 organisations. In most cases, no single function holds total responsibility. Figure 5 – Job function responsibility for document management

A decentralised approach overlooks the key benefits to be gained from a central strategic approach to document governance. Where individual departments are managing their own document needs, duplication is increased and companies miss out on the opportunity to optimise their workflow. A silo approach may suit the needs of the individual departments but without central accountability and governance practices, the business isn’t gaining a single view of its document activities and an accurate understanding of where improvements can be implemented to increase security, productivity, decrease environmental footprint and drive efficiency.

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The solution is to adopt a centralised, controlled approach with re-engineered processes that align directly with the specific needs of the business. When document governance practices are led by a senior company executive, the solution is integrated into the overall company strategy and benefits are amplified across the broader organisation. This means that departmental managers can also focus on what they do best, helping to grow the company.

57 per cent of senior executives think individuals should be capable of managing their own document and printing requirements In addition to devolving responsibility for document governance to departmental managers, 57 per cent of senior executives across Europe believe individual staff members should be capable of managing their own document and printing requirements. However, while a majority of Boardrooms feel their employees should be making their own printing decisions, many believe employees are not always printing with efficiency or sustainability in mind. Using a 10 point scale where 10 equals ‘care a lot’ and 1 equals ‘do not care at all’, companies were asked to rate their employees’ behaviour with respect to making printing errors and duplicating documents already in existence. Figure 6 – Senior Executives’ impressions of employee attitudes

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Senior executives scored their employees at 5.3 out of 10 with regards to making printing errors and 5.4 when it comes to duplicating documents. These scores are relatively low and show that senior management in most companies across Europe lack some confidence in their approach to document governance internally.

In devolving responsibility for document governance to individuals, business leaders are increasing the potential for duplication and security breaches. In addition sustainability goals become more challenging as there is no central automated policy in place. It is therefore encouraging that half of those interviewed believe their board colleagues are committed to fully training employees in this area. However these results indicate that employees may not be receiving the governance required to ensure they work in the optimum way. Whilst it is essential that employees should practice a certain level of responsibility when it comes to how they manage their documents, companies are overlooking the opportunity to manage this role centrally and let their employees focus on running the business.

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7.0 Surface level view of benefits overlooks long term gains The perceived benefits of optimised document governance include lower costs (81 per cent), environmental benefits (73 per cent), improved staff productivity (74 per cent) and improved security (68 per cent) An interesting discussion arises when we start to look at the perceived benefits of document governance across Europe. Most companies associate a wide range of benefits with improved or optimised document governance. The most widespread perceived benefit of an optimised document governance approach is lower printing costs, said to be beneficial by 81 per cent of companies surveyed and very beneficial by nearly half (46 per cent). Nearly as many (77 per cent) cite reduced maintenance costs as an important benefit, although fewer (35 per cent) regard this as very beneficial. Other notable widely perceived advantages of an optimised document governance approach are environmental benefits (73 per cent), improved staff productivity (74 per cent) and improved security (68 per cent). Figure 7 – Benefits of optimised document governance

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Clearly the potential for cost saving is widely recognised and accepted. In total, 77 per cent of companies across Europe say that an improved document governance policy would lead to at least some cost savings and one quarter believes these savings would be significant. Overall, very few believe such improvement would generate no cost savings. Figure 8 – Cost impact of improved document governance

But there are some benefits where awareness is lower. For example the benefits associated with workflow improvements were recognised by just 55 per cent of respondents. If senior executives in Europe are less aware of the opportunities to streamline processes and optimise their workflows, perhaps there is lower awareness of the long term benefits of document governance, which may indicate why so few (39 per cent) have implemented a strategy within their business.

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8.0 Summary • The situation with regard to effective document governance across Europe is mixed. 39 percent of medium and large organisations have a well defined and strictly implemented strategy whilst a further 14 per cent say that they are implementing one soon. • Over half are not implementing a strategy at present and one third do no more than issue a series of guidelines or leave their departments to decide their own approach. • There is a generally low awareness of the costs involved in managing documents and spend is rarely audited. Less than half of companies actively monitor document costs on a regular basis and one third admit that they do not know the average monthly cost of document production to their business. • The minority are operating a centralised policy with as many as 6 out of 10 companies leaving the responsibility for document governance at least partially in the hands of heads of department. • Such decentralised control and responsibility suggests that business do not have an overall view of document governance across their organisation and are unable to manage the costs involved or run a solution that integrates with the overall needs of the business. • There is wide recognition and acceptance of the importance of document governance policies, procedures and protocols. The vast majority of companies associate improved document governance with a wide range of benefits, especially and not surprisingly reduced costs (81 per cent). • But senior executives in Europe are less aware of the opportunities to streamline fleets, optimise workflow and increase available resources internally suggesting lower awareness of the longer term benefits of document governance.

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9.0 Conclusion It is evident that whilst the majority of companies in Europe understand the benefits of document governance, most have an ad hoc approach to implementing it and many either delegate accountability for their area to colleagues or apply limited audit processes to monitor investment. Perhaps therefore, one of the biggest challenges in this marketplace is changing the mindset of business leaders and supporting them to better recognise the role document governance plays within their business and how they can play a part in its success. In reality, effective document governance is relatively easy to address and can have a positive impact on the profitability and efficiency of a business if implemented correctly. In addition, perhaps there is a tendency for companies to miss the opportunities that lie beyond the short term benefits. If governance is viewed only as a way to cut costs, it will certainly deliver savings in the short term but it is not addressing the longer term impacts on the day-to-day business operations, how it is meeting the needs of the business and supporting the overall business strategy. Importantly the business will not gain the long term benefits that add real value to the bottom line. What is required is greater control and centralisation of document governance and for business leaders to step forward and take ownership of this area so that an effective solution can be closely integrated into the organisation at all levels. Only when companies truly recognise the strategic importance of optimised document governance, and view it as a key driver of efficiencies and productivity both in the short and long term, will they be able to realise the true long terms benefits. Ultimately, it’s about the right balance of people, processes, tools and the latest products that help businesses to uncover inefficiency and implement solutions that help them to drive their business forward.

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10.0 Ricoh’s solutions to govern documents effectively Ricoh offers a range of products and solutions that help companies to take a simple and effective approach to managing their documents. With a world-class portfolio of hardware, software, services, outsourcing and consultancy, Ricoh solutions integrate seamlessly and reliably into any organisation leaving customers free to focus on driving their businesses forward.

Managed Print Services For Ricoh, the practice of document governance can be directly addressed through its Managed Print Services offering. Managed Print Solutions (MPS) can easily reduce costs up to 30 per cent and through continued governance will yield long term benefits. Additional benefits include increased efficiency and productivity combined with decreased environmental impact and security breaches. Available as a global or local implementation it offers a full lifecycle approach to document governance. The holistic solution can be easily embedded into the workflow of an organisation to meet its unique and specific needs. It includes consultancy, hardware, software, maintenance, management services, office solutions and document process outsourcing throughout the entire document lifecycle.

Security Solutions Enhanced security is an important benefit gained as a result of a strategic and centralised approach to document governance. It enables organisations to gain greater control over document activity. Ricoh solutions include encryption-enabled technology and intelligent authentication. They are easily integrated into the document workflow to ensure maximum security for the sensitive data that flows around any organisation.

@Remote By integrating solutions into a company’s existing infrastructure, Ricoh can help to uncover the hidden costs of business documents – ultimately putting companies back in control. Ricoh’s @Remote turns collected data into detailed knowledge. This solution gives the user peace of mind that their costs are being managed in the most effective way, automatically.

Document Process Outsourcing Document Process Outsourcing is one way that companies can create a centralised document governance strategy that is structured, secure, compliant and cost-effective. It includes managing the processes, people and technology that deliver an organisation’s documents, and therefore information, into and out of its core business processes. With the focus on improved responsiveness and enhanced quality, significant productivity gains can be realised, by giving knowledge workers immediate access to the information they need, where they want it and how they want it. The result is increased financial efficiency, improved employee morale and customer satisfaction, ultimately enhancing business performance.

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Ricoh Pay Per Page Green Consultancy The Ricoh Pay Per Page Green Consultancy is a three phase fact-based approach that audits and quantifies a company’s CO2 emission and makes total cost of ownership more transparent. Based on the existing situation of the organisation, Ricoh builds an optimisation scenario to reduce operational cost, energy and paper consumption and carbon emission. As costs decrease so too does overall carbon footprint and in one effort, the efficiency of document production is improved. Fact-based cost and sustainability process conducted in three phases: • Audit and analysis of your current CO2 emissions and Total Cost of Ownership (TCO) of print/copy. • Drawing up a plan to reduce your CO2 emissions and TCO while optimising processes. • Periodic verification of CO2 and TCO reduction at your company.

Useful links www.ricoh-europe.com Ricoh Solutions Advisor Ricoh Managed Solutions

Sales queries Tel: +44 (0)20 7465 1182 Email : [email protected]

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About Ricoh Ricoh Company, Ltd (“Ricoh Company”) is a global technology leader, specialising in the office and production printing markets. Ricoh works with organisations around the world to modernise work environments and optimise document efficiency. With over 108,500 employees worldwide, it operates in Europe, the Americas, Asia Pacific, China and Japan. Ricoh Global Services provides strategic support and long-term partnership to Ricoh’s multinational companies across the world. With an unrivalled direct sales and service network model, Ricoh Global Services continuously drives value for customers with its standardized, consistent end-to-end solutions. Ricoh’s customers can rely on one partner for all their global needs. Ricoh Europe Holdings Plc is a public limited company and the EMEA headquarters of Ricoh Company with operations located in London, United Kingdom and Amstelveen, the Netherlands. The EMEA operations comprise over 35 sales subsidiaries and affiliates.

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