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Content-Location: http://www.businessweek.com/print/technology/content/may2008/tc20080526_370615.htm
=EF=BB=BF
=20
News Analysis May 27,=20
2008, 12:01AM EST
The New Push to Get Rid of Paper
Three decades after "paperless office" entered the business lexicon, =
the=20
financial and environmental need to reduce paper is greater than =
ever
by Arik =
Hesseldahl
Thirty-three years ago this month the phrase "paperless office" =
entered the=20
business lexicon in a BusinessWeek article titled "The=20
Office of the Future ." In the article, George Pake, the legendary =
head of=20
the Xerox (XRX )=20
Palo Alto Research Center (PARC), foresaw technology that by 1995 would =
let=20
computer users summon on-screen documents "by pressing a button," =
eliminating=20
the need for much if not all the printed paper cluttering workspaces. =
Pake's vision was half-right. Offices brim with network-linked =
computers,=20
loaded with software that lets users create, read, duplicate, and =
distribute=20
digital documents. But the dream of a workplace where all that =
technology would=20
eliminate the need for printed documents remains just that=E2=80=94a =
dream.
Indeed, some of the very machinery that makes paper theoretically =
obsolete=20
has helped make it all the more ubiquitous. Devices that scan and =
convert=20
documents to a digital format double as printers and copiers=E2=80=94and =
they've become=20
so small, cheap, and easy to use that they're on=E2=80=94or =
near=E2=80=94every desktop. "The=20
decision to print has gotten much closer to the owner of the document," =
says=20
David Pineault, a paper economist and analyst at consulting firm InfoTrends .=20
According to RISI, a research firm that tracks forest products, in 1975 =
the=20
average U.S. office worker used 62 pounds of paper a year. By 1999, that =
figure=20
peaked at 143 pounds, but in 2006 it was still at 127 pounds.
Think Before Printing
Three decades on, the financial and environmental imperative to =
reduce paper=20
use is all the more real. Last year, U.S. companies printed 1.5 trillion =
pages,=20
according to research firm IDC. That's a 95,000-mile-high stack of =
paper, or the=20
equivalent of 15 million to 20 million trees. RISI analyst John Maine =
esimates=20
that companies will spend about $8 billion this year on paper alone; =
that=20
doesn't include costs for ink, toner, or running copiers, printers, and =
fax=20
machines. In the typical office, for every dollar spent on printing =
documents,=20
companies incur another six dollars in handling and distribution, =
according to=20
Xerox.
Little wonder that the will to go paperless remains strong in parts =
of=20
Corporate America. It's showing up in ways big and small, from =
admonitions at=20
the bottom of e-mails to think before pressing the print button, to =
notes posted=20
alongside printers asking whether all that printing is really necessary, =
to=20
companywide crusades to reduce paper use.
Pittsburgh-based PNC Bank (PNC ) is among financial institutions doing their part =
by sending=20
electronic statements and credit-card bills. "As late as five years ago=20
everything we did was paper-based," says Doug Lippert, a PNC =
vice-president.=20
"Our customers started asking for paperless statements because they're =
used to=20
having their information available immediately."
PNC Turns to PDF
After a series of promotions, 15% of PNC's 3 million retail customers =
began=20
getting their statements delivered by e-mail as documents in PDF, or =
Portable=20
Document Format, a system developed by Adobe Systems (ADBE ). In =
addition,=20
80% of internal company reports are created and filed electronically. =
The=20
company began printing all other documents on both sides of the page by =
default,=20
and replaced printers and copiers with multifunction devices that =
combine the=20
jobs of a printer, copier, scanner, and fax machine into a single unit.=20
Companywide paper use dropped by 20%. Lippert declines to disclose =
specific=20
cost-saving figures but describes them as "substantial." Postage for =
mailing=20
statements alone cost more than $1 million a month, Lippert notes.
Savings for other companies could be substantial too, though many =
don't pay=20
close heed to paper-related costs, says Forrester Research (FORR ) =
analyst Craig Le=20
Clair. Printers, copiers, and fax machines have a funny way of =
multiplying=20
haphazardly. One company advised by Le Clair thought it had 150 fax =
machines,=20
but a detailed search turned up 1,000, many of which were rarely used. =
And how=20
vital are those printed documents, anyway? Researchers at Xerox found =
that about=20
half of the documents printed in a typical office are thrown away within =
24=20
hours.
Of course, some of the financial and environmental benefits of =
reducing paper=20
use may be offset by the power and bandwidth consumption by machines =
that handle=20
digital document creation and distribution. But that's not deterring =
many=20
businesses from attempting to reduce paper waste.
Imposing Limits on Employee Printing
Other methods of limiting paper use include restricting the number of =
printers per employee. Printers are usually shared by two or three =
employees,=20
but boosting the employee-to-printer ratio to about 8 to 1 slows paper=20
consumption by making printing that much less convenient. "CIOs are =
realizing=20
how much waste is generated by their printers and copiers and fax =
machines," Le=20
Clair says. Valerie Mason-Cunningham, a Xerox vice-president, says it's =
not=20
uncommon for companies to find they can cut costs related to documents =
by 10%=20
but in some cases as much as 40%. "Everyone thinks about reducing =
printing=20
costs, but that's just the tip of the iceberg," she says.
Some companies track who's printing what and in some cases impose =
monthly=20
limits on how many pages an employee can print. PrintAudit is a =
Vancouver-based=20
maker of software that tracks how printers and copiers are used. "Once =
you have=20
that information you can help the customer figure out where you can =
reduce=20
costs, according to a set of rules," says PrintAudit President John =
MacInnes.=20
PrintAudit sells its software to large office equiment vendors like =
Xerox and=20
Ricoh =20
that in turn offer it as an option to customers. MacInnes estimates =
PrintAudit=20
software is in use by a half-million people at companies around the =
world, and=20
collectively their paper savings amount to about 90,000 trees a year, he =
reckons.
Digital Signatures Pave the Way
Anyone who's even come close to buying a house can attest to the =
mountains of=20
paper amassed by the mortgage industry. Peabody (Mass.)-based 1-800 East =
West=20
Mortage cut its annual paper use by two-thirds, in part by using a Xerox =
product=20
that replaces paper with Web-based forms, digital disclosure documents, =
and=20
electronic signatures, says Gary Roche-Bernard, the company's director =
of=20
information technology. Funding turnaround times went from an average of =
15 days=20
to 4, storage costs dropped by 75%, and the number of leased copiers =
went from=20
12 to 6. "There have been studies that put the paper costs of mortgages =
at $250=20
to $300," says Judson Phillips, a Xerox vice-president. "We can get =
those costs=20
down in the low teens on a typical mortgage."
Clearly, paper isn't going away any time soon, says Richard Harper, a =
Microsoft (MSFT )=20
researcher and co-author of The Myth of the Paperless =
Office (MIT=20
Press, 2001). Paper, he argues, allows the kind of collaborative work =
that makes=20
the modern office more productive. We can pick it up and hand it to =
another=20
person, spread pages of a document out before us, and consider each page =
out of=20
order or in ways that aren't possible on a screen. "One might argue that =
the=20
mind better grasps an argument when it has physical properties," Harper =
says.=20
But as more companies grasp the ease and cost benefits of going =
paperless,=20
change will come. "It always takes longer than we expect to change the =
way that=20
people customarily do their business," opined tech executive Evelyn =
Berezin back=20
in that 1975 article. She should know. At the time, she was president of =
Redactron, then the second-largest supplier of word-processing =
typewriters=20
behind IBM (IBM ).=20
For more on the paperless office , see BusinessWeek.com's =
slide show.=20
Hesseldahl is a =
reporter for=20
BusinessWeek.com.
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------=_NextPart_000_0000_01CB059B.2B635130
Content-Type: application/octet-stream
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www.businessweek.com/common_scripts/Tacoda_footer.js
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// Revision Authors:=0A=
// TTM: Thomas Mroczkowski=0A=
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// Notes:=0A=
// * This file is archived to /common_scripts/Tacoda.old/=0A=
// * tacoda footer voided 01.31.07, original content backed at =
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var akApiKey =3D "RecEngine-0D56B322-C5A9-C6E4-E8BC-1244BD9CB207";=0A=
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/* removed 6.24.08 - Related Items from SPHERE */=0A=
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// Revenue Science =0A=
//-----------------------------------------------------------------------=
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// * (see also Tacoda_AMS_DDC_Header.js) install with channel map =
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/* DM_cat removed 7.28.07 */=0A=
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/* iCrossing tracking code : removed 4/29/09 */=0A=
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//=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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// QuantCast=0A=
//-----------------------------------------------------------------------=
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// Notes:=0A=
// * First added on 9/19/2008=0A=
// * There is no corresponding code in header=0A=
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// * Added as per BBG DRQS 19807734=0A=
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// comScore=0A=
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//=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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$(document).ready(function(){=0A=
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------=_NextPart_000_0000_01CB059B.2B635130--