Can you do more with less

Can you do more with less?
Jule Limoli, President Xerox International Group explains how the seemingly impossible can be done

BDEE: Companies are being asked to do more with less, why is this particularly the case in Eastern Europe?
JL: Organisations are constantly searching for ways to increase revenue and improve profit, while at the same time trying to improve their service to customers, in an increasingly competitive marketplace. Hence the focus on re-engineering, re-structuring, outsourcing, quality initiatives and going digital. Underpinning all of this was the belief that technology, and only technology, would be the universal answer.

In the old world, IT was made up of a little i, and a big T. The focus was always on the technology. The new world of IT is made up of a big I and a little t. Today the focus is on what really matters – information, not just how technologies work. For the past half-century, we’ve been thinking just the opposite.

BDEE: What particular problems are faced by the eastern European bloc with regard to data management?
JL: The systems that existed until only fairly recently to manage information and data were designed for a different environment to the one that we have today, by governments and the commercial sector alike.

From our experience in working these markets, we see this as a potentially huge opportunity. Problems arise only where an organisation does not understand how data, efficiently managed, can create a more commercially progressive environment.

The transition in eastern Europe to new technology, allied to efficient data management is progressing at a much stronger rate than in western Europe. There, companies are working within the framework of cumbersome legacy systems that did not always support business. Here in eastern Europe we have the benefit of being able to take advantage of leaps in technology and management systems in what is a newer, more vibrant commercial economy.

BDEE: Enterprise resource planning and customer relationship management have been the big growth areas. What do you predict will be the next one?
JL: Yes that’s true. Businesses have spent heavily on technology, yet research shows that for every dollar being spent on printing, for example, another €5 is spent on the rest of the workflow.

To address this businesses need to transform their processes, particularly through the effective transformation of paper to digital formats in key business processes. Increasingly businesses are adopting a series of outsourced services that allow them to capture documents electronically, convert and index them for storage and make them accessible online. This service provides a firm foundation for records management and regulatory compliance, issues that are becoming ever more pervasive.

Too often we find that business critical information, required to support key business processes and transactions, is trapped inside paper documents. Our experience has shown there is a significantly bigger market opportunity to address beyond pure imaging, for example in the areas of document management, workflow, content extraction/ conversion and data processing services.

Historically imaging has been seen as just a scanning service, converting paper document to digital images for convenient storage. Today, mass digital documents need to be securely managed, and highly accessible. Xerox Global Services helps clients achieve this, ensuring that they are compliant with all the standards and regulations that apply to their market, while optimising critical business processes and workflows.

Critical to Xerox’s approach is the ability to deliver innovation and added value to clients. Our expertise enables us to intelligently extract critical business content from electronic documents, and convert and feed this information directly into our clients core business processes. This ensures the information is of real value to the client, rather than just presenting a static electronic image.

BDEE: The amount of data flowing into businesses is increasing dramatically year on year. How are they handling it in your experience?
JL: You mean how are companies not handling it! I would argue, we must pay attention to the role the document plays in delivering business value. We at Xerox believe that documents remain a hidden and misunderstood aspect of business productivity and IT infrastructure.
For example, over 750 billion emails are sent each year and half of them are printed. More than 7.5 billion new documents are created in the office each year – resulting in over 1 trillion pages. One in five workers spends at least 60 percent of their day dealing with documents – that’s equivalent of 29 weeks per year. Office workers spend over 50 percent of their time looking for documents – and only half the time do they find it.

And those are not our figures – that is what IDC has found.

BDEE: Should businesses appoint one person to oversee all the data issues in a company? Why/why not?
JL: According to The Outsourcing Institute, 80 percent of Fortune 500 companies outsource some or all of their information management functions. It’s easy to see why. Outsourcing frees up management time and allows you to focus on your core business – essential when you’re operating in a tough business climate.

The best way to do that is to partner with an expert, such as Xerox Global Services.
A dedicated partner to manage data enables businesses to mine untapped efficiency opportunities that exist within their business processes. The success of a business is just as critically linked to business process and people, as it is to technology alone.

BDEE: Which do you think is more important to businesses struggling to handle massive amounts of (not always useful) data, technology or organisation?
JL: We see the efficient management of data, of information as key, where technology and the right organisation as enablers.

In a series of studies across the US and Europe we found consistent results, and they really are a wake up call. Only 48 percent of senior managers think IT makes their job easier. In fact, one third believe IT makes work more complicated. Technology has also created a world documents can paralyse business and hamper productivity.

BDEE: What new services is Xerox offering to the European market and more importantly, how and why do you think these will benefit business?
JL: We see big opportunities in imaging and what we call document management services. Much business critical information that is required to support key business processes and transactions is trapped inside paper documents.

To manage that Xerox is offering a series of outsourced services enabling customers to capture documents electronically, convert and index them for storage and make them accessible online. This service provides our customers with a foundation for records management and regulatory compliance and a way that is cost effective

BDEE: Are most businesses aware that by investing in data management systems, they could actually save money in the long run?
JL: We did a study with IDC that showed companies that focus on how documents and information are managed are better equipped to reduce costs and increase profits. In fact, 68 percent of the executives interviewed said effective document management helps drive innovation, profits and revenues. We found that more than half of the information companies share with customers is on paper. Yet 60 percent of respondents are not integrating hardcopy documents into their digital workflow.

Most CEOs can tell you exactly how much they’re investing in manufacturing, sales and human resources. Most CIOs know precisely how much they’re spending on office costs, computer technology, telecoms. But how many know what their total document spend is? Research shows organisations spend between at least 5 to 10 percent of revenue on documents. How many companies know that? How many are doing anything about it?

BDEE: What advice would you give to companies that are only now starting to think about data and document management?
JL: Wake up – the train has already left the station! We’re finding that document management and our consultancy services are among our fastest growing areas of our business, as more and more organisations understand the wake up call.

Customers in industries like financial services, health care, manufacturing, retail, government and technology realise the power of effective document management and we’re providing those customers with document services that range from the office to the print shop.
Think about services that meet the need to capture, store, and secure information that can be performed on-site or off-site, that add intelligence to documents, that automate error-prone workflows and deliver integrated end to end solutions.

BDEE: Can you give an example of a success story where a company has turned around a problem situation into a well-organised data management structure?
JL: T-Mobile in Czech Republic decided to consolidate its four separate office locations into a single headquarters building. This created the problem of what to do with the company’s 12 million hardcopy document archive that could not be housed at the new location – and how to consolidate four different mail rooms with different processes into a single, consolidated service. The challenge too was to deliver a faster response time to customers.

Working with Xerox Global Services, T-Mobile was able to integrate and re-engineer its imaging, archiving and mail room services. An economical offsite document archive was established and managed by Xerox Office Services, reducing the need for expensive office space by 10 percent and provides faster, more efficient document access and retrieval.

Savings of up to 13 percent in mailroom costs were achieved as well as savings in headcount, representing annual savings of as much as $80K. The new document management system is scalable and is able to incorporate additional types of documents, such as work orders and invoices generated by the customer service and finance departments. In all T-Mobile has leverage a corporate move to introduce significant business process improvements and added value to the cost of the move.

[Go Back]