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IT Underperformance Across Hungarian Business Results in Almost EUR 500 Million in Lost Productivity

Coleman Parkes conducted research on behalf of Epson about the usage of IT systems of small- and medium-sized businesses in the EMEA region including Hungary.

Miklós Fábián,  national sales manager at Epson Hungary

Coleman Parkes conducted research on behalf of Epson about the usage of IT systems of small- and medium-sized businesses in the EMEA region including Hungary. The comprehensive study shows a number of shortcomings regarding cost-effectiveness and the office technologies used. We asked Miklós Fábián, national sales manager at Epson Hungary about the reasons and possible solutions.

Do businesses even need to print anything in the time of digital revolution? 

More than 38 years have passed since British-American information scientist, Frederick Wilfrid, first envisioned a “paperless office” in 1978. Today, the reality is that printers continue to be used daily. Furthermore, three-quarters of Hungarian employees consider printing “vital” in terms of helping them work effectively and they print an average of 16 items per day, which is equal to 34 pages daily. Despite digital advances and 50% of businesses now digitizing documents in favor of keeping hard copy records, people still like to work with paper, preferring print rather than working on-screen for certain tasks. The major problem is not the usage of printers, but the fact that companies do not use the best printing technologies and solutions.

What is the connection between the strategic approach and corporate IT assets? 

Only a bit more than half of businesses in Hungary implement new IT as part of a strategic decision, and prior to purchasing, 44% do not even know how the right technology can affect the organizations’ performance and functionality. Some companies do not use IT in a strategic manner, and could be missing out on considerable savings on print costs and environmental impact reductions.

How much is the financial loss in businesses in Hungary caused by not properly using IT devices? 

The results of the survey shocked us. Businesses in the 14 reviewed countries of the EMEA region use old, inadequate IT technology which has a negative effect on performance, expenses and efficiency as well. IT systems and hardware failures equate to an annual productivity cost of EUR 497 million. Of this, more than half is attributed to printers, totaling `EUR 231 mln.

What kind of solutions can be considered for cost optimization? 

Flexible, project based and collaboration supportive technologies make a huge impact on work. In addition to maintenance and downtime issues, further time costs result from the distribution of printers with employees walking an average 9.4 meters to their nearest printer. This means that many businesses still operate a traditional centralized print fleet model. This distance adds up when you consider that respondents print on average 16 items each day. This is an issue that could be easily addressed through a more localized print fleet model. Modern workplaces and smaller workgroups are more suited to the flexibility that localized print models offer, removing frustrations and time associated with the need to leave workspaces to retrieve prints. All of these factors impact employee motivation and productivity, and ultimately business efficiency – meaning that small changes to printer type and fleet structure can deliver a big change to the bottom line. Replaceable Ink Pack System (RIPS) printers help businesses take advantage of the convenience benefits a localized printer fleet offer, but with the predictable costs of a centralized model – reducing the cost of printing by 50% compared to laser technology. Power consumption and waste can be decreased by 94-96%. Thanks to the managed print services; businesses can benefit from better control over print volumes and costs.