Konica Minolta’s Guide to Greater Savings

Optimized Print Services White Paper

Konica Minolta’s Guide to Greater Savings “White Paper” is designed to walk you through the process

we follow to help clients maximize the print environment. This is the area we see as having the greatest

potential for cost savings within most all organizations.

Gartner estimates that for every eight traditional printers in an environment there is one Multi-

Functional Device (MFD). As a percentage of overall imaging costs, the printer fleet typically accounts

for 60%-70% of that cost. Most companies are well aware of the MFD lease price and cost per image;

but the same cannot be said about the traditional printer fleet. In order for organizations to see

significant cost reductions, they must consider the output to traditional printers when considering a

future state.

Konica Minolta’s approach is a holistic one. We know that in order for clients to realize true cost

savings in their imaging environment, all output devices need to be considered. Our process involves

analyzing, monitoring, consolidating, controlling and optimizing the output and imaging infrastructure.

Teledyne can benefit from a true document output strategy and realize significant savings. If we assume

that Teledyne has an 8 to 1 printer to MFD ratio, that implies that Teledyne has approximately 140

printers. These devices operate at a much higher cost per impression. All while most MFDs are being

underutilized in terms of volume.

Our solution can level the playing field between MFDs and printers; bringing the entire fleet to a cost

per image model. By looking at a global approach to output, Konica Minolta can help Teledyne craft a

plan to maximize your MFD investments and drive down costs and administrative requirements.

Do you know howmany print devices

you have?

How much isyour printerfleet costing

Do you have theright # of print

devices for yourorganization?

Optimized Print Services is a staged approach to managing the imaging devices and workflow within anorganization. As we move along through the stages of OPS we improve an organizations optimization oftheir assets and resources.

Our first step is to control the fleet. In order to control the fleet we need to know what you have,where it is, what is it used for and how much it is costing you.

Once we understand what we have, we work to Optimize the Fleet. This is where we can make rightsized recommendations to reduce your environmental footprint, # of devices, resources required tomanage those devices and overall cost.

Finally, we can work to Enhance Business Processes. This is where we look at overall workflow toidentify additional areas of opportunity to reduce costs and improve work processes.

In order to navigate effectively through these 3 stages, we have to follow an effective assessmentprocess. This process is detailed below.

Konica Minolta’s OPS Assessment Process

1 Analyze & MonitorKonica Minolta Team will:- Complete a thorough assessment of the state of your current document output environment.- Provide a detailed report of your current-state technology, along with associated costs and processworkflows

2 Visualize: By providing an optimized Future StateKonica Minolta team recommends a future state focused on:- Total cost of ownership (TCO)- Process Improvement- Security Enhancement- Environmental Impact

3 Implementation and IntegrationKonica Minolta Team will help you migrate to your future state recommendation.- Coordinate implementation of solution.- Provide administrative and end user training- Implement Change Management materials to ease the transition for end users.

4 Manage, Govern, & ImproveKonica Minolta Team provides on-going governance of output and solutions- Work with Teledyne to establish goals and benchmarks for success and cost savings.- Regular Quarterly Business Reviews to ensure savings and other project goals are being met.- Continuous adjustments to recommendation to maximize savings and process improvement goals.- On-going Change Management support for end-users to ensure adoption of new environment.

1. Analyze and Monitor

Konica Minolta’s OPS Team will perform a detailed and thorough analysis of your copy & printenvironment. Through our Managed Print Assessments, our team will document and report uponvarious unique needs and challenges through multiple departments. Our goal in performing this analysisis to better understand the current make-up of Teledyne’s device population and the day-to-dayrequirements for future solutions. This is accomplished through a two pronged strategy.

Konica Minolta performs a two phased assessment.

(1) Managed Print Assessment(2) Strategic Assessment.

The typical engagement begins with the Managed Print Assessment and closely follows with theStrategic Assessment. Having a grasp of the current fleet demographics via the Managed PrintAssessment provides the Konica Minolta Team with a solid understanding of your print environment.The strategic assessment looks at your departmental workflow, looking for additional opportunities forcost savings. Both of these assessment strategies are outlined below.

Managed Print Assessment

The Managed Print Assessment is a standardized assessment of the output fleet. The first phase wouldbe to identify current state, which would include an inventory of all imaging devices including MFDs,faxes, printers, scanners, and any desktop devices. Konica Minolta will document LAN and fax lineavailability, electrical configurations, workgroup and faculty mapping. Konica Minolta will also run anetwork audit tool to automatically capture historical usage information on your output fleet. Once wehave mapped your current state and looked at historic volumes and device usage, we will then provide aproposed future state for Teledyne’s review. This allows us to exposed costs that are typically hiddenwithin departmental budgets and show a significant cost reduction across your output fleet.

Strategic Assessment

In addition to the information collected in the Managed Print Assessment, Konica Mniolta can take theassessment process one step further by conducting interviews with department heads and power userswithin each department. We engage in a process called “Follow the Document”, meaning we follow thedocument from cradle to grave and analyze the associated workflow. We focus on document creation,who handles each document and why, how the document moves through the organization, and finallyhow the document is either stored for retention or destroyed. Once we have this information, we canstart to assign costs to document workflows and make recommendations to make these processes moreefficient, thereby reducing costs.

2. Visualize

MDS Design & Improvement

Based on an in-depth analysis of the data garnered from our Managed Print and Strategic Assessments,we will custom tailor a solution for Teledyne. The goal of this phase is to present a comprehensivesolution that lays out, in detail, specifics for the program such as device configurations, future statemapping, business process improvement benefits, increased security measures, and goals for reductionsin environmental impact. In short, this phase provides complete details on Konica Minolta’s enterprisewide solution.

Defining the Future State

The map for the “Future State” at Teledyne will have mutually agreed upon benchmarks and metrics.The Future State of the imaging devices at Teledyne will take into account the TCO goal of theorganization and involve all stakeholders in the process of device consolidation and lower overall cost ofoutput. The justification of this cost reduction can be measured only through a prescribed siteassessment. At this point, the Project Manager will design a detailed Managed Print Assessmentprocess plan.

Konica Minolta will work with Teledyne to understand the objectives most important for the futurestate. Most often, a reduced Total Cost of Ownership (TCO) is top priority. For this reason, KonicaMinolta will work to optimize the existing fleet by combining industry standards and assessmentfindings. Once the existing infrastructure is optimized in the MFD segment, we utilize our OPSmethodology, which will drive TCO reduction, efficiency and productivity. Successful TCO reductionstarts with an accurate numerical representation that reflects the total cost spent on a given project,including one-time purchases and recurring costs, not just the initial investment in products, service,resource, time, etc. These costs are to be measured across the entire document management projectlife cycle, ranging from planning, design, and installation, and moving on to integration training, ongoingservices and maintenance.

Another future state objective that is top priority for many organizations today is reducing theenvironmental impact of the imaging devices. Konica Minolta’s focus is on working with our customersto reduce emissions from their imaging device fleet. All print devices output carbon emissions which areharmful to our environment. During the assessment phase, Konica Minolta documents all makes andmodels of the current devices in the fleet. We can then capture the energy consumption and carbonemissions of each of those devices. Once the old devices are upgraded, Konica Minolta can provideTeledyne with a detailed analysis on the reduction of energy consumption and carbon emissions. Mostoften, we can reduce carbon emissions by over 30% in the first year alone.

Konica Minolta will help manage your output while delivering a host of value added services and allowyou to concentrate on your core business. Our ongoing analysis sets the scene for mapping future yearover year TCO reduction, identifying any bottlenecks or inefficient workflow or device distribution. Thedata inventory collection tools allow us to provide Konica Minolta with data on how the devices in yourenvironment should be rationalized to achieve required cost savings. This will also help us to identifyopportunities for workflow improvements with the ultimate goal of reducing costs.

If Teledyne decides to engage Konica Minolta in the Strategic Assessment process which involves our“Follow the Document” methodology, additional value will be added along with device consolidation.This assessment, detailed in Phase I, looks at capture and workflow processes by department and setsthe stage for process and workflow efficiencies. Konica Minolta will analyze the workflow in each ofyour departments in an effort to identify any existing bottlenecks.

Konica Minolta will focus on improving document-related workflows and ensuring that your employeescan share information effortlessly company-wide, and provide management of documents, output, andassets, as well as targeting goals in the shape of Key Performance Indicators (KPI). Our ability to measurethis through consolidated enterprise reporting is one of our unique and compelling services. This

method of managing information will assist you in making well – informed, data driven decisionsregarding your input or output state.

Environmental Impact Analysis

Green is the hot topic in every boardroom in America and large companies are trumpeting ambitiousenvironmental goals. Corporate officers continue to look to IT Departments to develop IT SustainabilitySolutions that are truly measurable. The TEC (Total Energy Consumption), ECE (Estimated CarobEmissions) and total kilowatt in Energy Star mode are three components that make up the carbonfootprint of any single imaging device.

Konica Minolta has a definable process designed to provide IT/Facilities with definitive measures ofbefore and after and on-going progress of their imaging device fleet down to the level of how manytrees are necessary to replace the carbon use associated with the imaging device fleet. Konica Mnioltahas two methods to perform this service, which is detailed below.

Sample Before State

Our Optimized Print Services Process allows us toidentify areas of over-redundancy and makerecommendations for rightsizing your fleet

Sample After State

Fleet consolidation & savings typically runs inthe 10-30% range.

Konica Minolta’s Green Floor Program

During the Managed Print Assessment process Konica Minolta documents your current fleet of imagingdevices and footprints the TEC, ECE and kilowatt standards provided by each manufacturer’senvironmental website. Once the current environmental state is identified and benchmarked, KonicaMinolta will total the carbon footprint as a baseline. Next we calculate the new fleet demographicsafter implementation of the Future State and define your environmental savings.

OPS Implementation & Integration

In keeping with Konica Minolta’s collaborative approach to any OPS project, our team will work closelywith your facilities and IT Departments to ensure a seamless transition to the new Konica Minoltasolution. The plan is followed closely for all installations and the new inventory; location and contactinformation are all then entered into Konica Minolta’s database to ensure immediate customer support.Below is the detail behind the implementation process.

Project Plan – Benchmarks and Metrics

The planning stage lays the groundwork for defining the implementation of the future state and ongoingmanagement stages of the project. Konica Minolta develops realistic plans by working collaborativelywith you to develop these clearly defined roles and responsibilities. This provides the following:

Elimination of surprisesPro-active identification and rapid resolution of issuesEffective rollouts and a strong program foundation

An OPS Project Manager will be responsible for Teledyne’s planning and implementation stage. KonicaMinolta’s team of technology specialists includes members who are dedicated to planning andimplementing installations. Konica Minolta’s Project Managers are experienced and have been trainedin Project Management standards. They make sure the project is planned, managed and completed onschedule.

Planning and scheduling are the most critical components of an implementation. The extensiveexperience of Konica Minolta’s Project Managers is invaluable in proactively addressing and handling allmatters involved, resulting in a highly successful installation. These individuals have in depth experienceand can customize strategies to best meet the unique change management issues for you that can varygreatly from one location to another. Experience gained while transitioning many accounts to newprograms, greatly enhances the Konica Minolta Project Manager’s ability to plan a seamless transition.

The Project Manager is responsible for all aspects of your implementation. The Project Manager willbecome the one source of accountability during the planning and implementation stages and will workclosely with you, the Account Manager and the Konica Minolta project team.

The Konica Minolta Project Manager will be the primary Konica Minolta representative for Teledyne.The Project Manager’s day-to-day activities include project planning, communicating project status,delegating tasks, coordinating project activities and documenting progress according to the KonicaMinolta project management methodology.

Project planning is completed by the collaborative efforts of the Konica Minolta Team. As the teamleader, the Project Manager’s overall responsibilities include:

Provide overall project leadership

Assist in the formalization of the technical solution

Understand and communicate project requirements

Locate required personnel resources

Develop a transition plan

Develop project plans

Define project tasks and delegate these tasks to the team

Manage internal and external reporting

Maintain high level of client satisfaction

The Project Manager in conjunction with the System Engineers and Account Manager will design astatement of work. The statement of work will include all services and processes required to initiate,implement and manage your program. Content may include:

Equipment install/move/removal procedures

Change management

Training/educational services

Hardware and software support

Project management

Tracking and reporting

Escalation procedures

Lastly, the backbone of this phase is the detailed plan for project implementation and the support staffbehind it.

The Support Team

Based on the philosophy of team account management, your Konica Minolta Team has an averagetenure of over 10 years of industry experience and every single member of the Team will play a vital rolein the success of this project. The Team’s activities post implementation will follow the Project Plan andFuture State detailed at the beginning of this document.

Implementation Plan – Project Teams

Konica Minolta – Denise Blackwell – Regional Vice President of Corporate AccountsKonica Minolta – Tom Menton – Director of Major AccountsKonica Minolta – Dan Arwine – Corporate Accounts Sales ManagerKonica Minolta – David Abrahams – Key Account ManagerKonica Minolta – Michael Pond – Solutions Development ManagerKonica Minolta – Len Zeilinski – Systems EngineerKonica Minolta – Richard Dablin – Area Service ManagerKonica Minolta – Saul Guzman – District Service SupervisorKonica Minolta – Michele Austin – Training Team Lead

Manage, Govern, & ImproveThe key to a successful Managed Document Services Implementation lies in the effective on-goinggovernance of the output environment.

The first step in ensuring that the changes made achieve the cost savings and process improvementgoals intended is to make sure the population adopts and adapts to the changes. This is achievedthrough Change Management.

Change Management

Konica Minolta understands that true success cannot be gauged in the planning of any project. This iswhy Konica Minolta’s team of sales professionals is especially dedicated to the adoption of newsolutions and the on-going management of their use.

What is Change Management?Change Management is the foundation of a solid Document Management Program. A well thought outChange Management plan ensures that new solutions are not only adopted by end users, but maximizedfor optimum benefits.

Konica Minolta utilizes a six step model for Change Management. We follow these steps to ensure on-going sponsorship of the program long into its implementation.

1. Develop a ChangeManagement Team among theproject team

2 . Build Awareness of theupcoming change and thereasons for it: Awareness

3. Create ownership over thechange among the end-usercommuity: Desire

4. Establish foundationalknowledge of how to make thechange: Knowledge

5. Hone the skill sets of theend-user community throughcontinuous training: Ability

Konica Minolta’s proven process provides on going assessment and optimization governance to ensureadoption and help you stick to the plan so projected cost savings and productivity gains can be realizedon a continuous basis. Our Change Management experts will work with your project team lead to:

Identify Key Teledyne InitiativesDevelop Training schedulesCreate User Guides

Our experts will also help you to create information to help communicate the new strategies

Marketing materialsInternal/external communication

These materials will be used to explain the benefits of the new Konica Minolta solution. The goal here isto increase the level of user-ship among campus employees and create a sense of ‘sponsorship’ amongall end-users.

Active Management of Entire Output Fleet

With the use of our Opt Monitor software, Konica Minolta is able to manage and monitor your entireoutput fleet remotely. This software provides the following benefits:

Service Monitoring and Notification on ALL output devices

Automated Meter Collection

Automated supply replenishment to the desktop

Detailed fleet and device reporting

Quarterly Business Review Meetings

Finally, Konica Mniolta will map your Future State with goals, metrics and benchmarks from the ProjectPlan and provide a true vision of the future and foundation for our relationship. These benchmarks,along with other KPIs (Key Performance Indicators) can be reviewed in a regularly scheduled opendiscussion on a quarterly basis.

Konica Minolta will work together with you to determine the monthly or quarterly review plan.Additional Konica Minolta specialists are often included in these meetings to discuss various programareas. The agenda typically includes, but is not limited to, the following topics:

Total Spend (Hardware/Meter)

Drilldown of spend by product (MFD vs. printer)

Service call history (By location and in aggregate)

Total service escalations

Uptime/Downtime with detail

Addressing any fleet-related issues or questions

Discussing ideas for ongoing improvements

Review of any escalation occurrences, if applicable

Management reports will of course be generated according to Teledyne’s requirements. Programmetrics will be tracked through Konica Minolta’s database tracking tool and data will be captured on theopt Monitor, Pagescope and vCare tools. All reports can be posted on MyKMBS for viewing bydesignated authenticated users. Konica Minolta customizes reports to measure program components,adherence to SLAs and fleet data.

In Summary

In order for organizations to realize true cost savings and efficiencies in their output environment, theymust follow a holistic approach. We need to take into account all output devices and the associatedworkflow. Konica Minolta has a tested process that can realize real, significant cost savings andefficiencies.

According to IDC, an organization that goes through an assessment of this type can realize the followingaverage savings:

40% reduction in IT Help Desk calls25% or greater reduction in consumables costs20% reduction in unscheduled maintenance costs

Savings for a company taking advantage of the above areas as well as cost reductions ininstallation/upgrades and acquisition will average 23%.

In addition, you will be able to realize an improvement in device up-time, employee satisfaction with theoutput fleet and a significantly reduced burden on IT.

Please let Konica Minolta know if you would like us to perform a sample assessment today.