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Next-Gen Print Infrastructure Services: Leveraging Cloud and IoT to Accelerate Your Digital Transformation Strategy An IDC White Paper, Sponsored by Lexmark Author: Robert Palmer US46761020TM Document #US46761020TM ©2020 IDC. www.idc.com | Page 2IDC White Paper | Next-Gen Print Infrastructure Services: Leveraging Cloud and IoT to Accelerate Your Digital Transformation Strategy IDC OPINION The Role of Print in the Digital Office Print remains a valuable and integral business function, but organizations struggle to understand how print infrastructure fits within the context of broader strategic IT initiatives, such as IT outsourcing, cloud migration, and digital transformation (DX). Most enterprise organizations today are engaged in a headlong battle to modernize IT infrastructure fueled by a digital-first mantra. However, the desire to move quickly often results in a myriad of disconnected digital and historical legacy processes, leaving businesses stuck in a hybrid environment where new digital processes are less effective and legacy processes are no longer supported. This White Paper leverages data from a recent IDC study that examines how businesses are prioritizing strategic IT investments to drive digital transformation and look more specifically at how those investments could be mapped to long-term requirements around the usage of paper and print. The Future of Business Is Digital First Over the past few years, two trends have dominated the office technology landscape: the integration of mobile technology as a business computing platform and the ongoing progression toward a digital-first strategy. Digital transformation is now foundational for organizations of all types, and significant IT spend is allocated to these broader DX programs. According to IDC’s 2019 Digital Transformation Executive Sentiment Survey , an average of 3.7% of an enterprise’s revenue is spent on digital transformation initiatives. These efforts are fueled by many different variables; however, the targeted goals remained unchanged. Operationally, businesses need to become more agile, innovative, responsive, and customer centric to stay competitive. Next-Gen Print Infrastructure Services: Leveraging Cloud and IoT to Accelerate Your Digital Transformation Strategy Sponsored by: Lexmark Author: Robert Palmer August 2020 Highlights

of an enterprise’s revenue is spent on digital transformation initiatives.

of business operations already rely on digital infrastructure.

of organizations are still in the beginning stages of digital transformation. Only 4% of organizations are fully transformed.

of organizations prefer as-a-service or consumption-based models over traditional financing methods to reduce upfront costs. Document #US46761020TM ©2020 IDC. www.idc.com | Page 3IDC White Paper | Next-Gen Print Infrastructure Services: Leveraging Cloud and IoT to Accelerate Your Digital Transformation Strategy Meanwhile, organizations are striding quickly into a new digital economy, where consumption- based billing and software-as-a-service (SaaS)-based models are preferred over conventional financing methods. At the same time, IT is focused on requirements to drive better performance, improve security, ensure system availability, and create a path for continued innovation. Key stakeholders are often identified to lead specific DX programs within the enterprise, and significant resources have been allocated to manage and monitor these programs along the way. Operational goals are critically important — the simple fact is that the future of business is digital first. As a result, a high level of IT/business transformation is required to support the business over the next five years. Although it varies by organization and vertical, approximately 49% of business operations already rely on digital infrastructure (as opposed to physical), moving to 57% over the next five years. Even so, it has become clear that digital transformation does not occur with the flip of a switch. The desire to become 100% digital at the onset has led to numerous failed attempts as companies try to accomplish more than they are able to achieve. According to IDC MaturityScape Benchmark: Future Enterprise Worldwide, 2020 (IDC #US45863318, January 2020), 46% of organizations are still in the beginning stages of digital transformation, and only 4% of organizations are fully transformed. The defining characteristic of the digitally determined organization is a single enterprisewide strategy, not multiple digital strategies rooted in the various lines of business (LOBs). Meanwhile, organizations are striding quickly into a new digital economy, where consumption-based billing and software-as-a-service (SaaS)-based models are preferred over conventional financing methods. A recent study from IDC shows that organizations overwhelmingly prefer subscription-based billing when it comes to financing their strategic DX initiatives. In fact, 70% of organizations prefer as-a- service or consumption-based models over traditional financing methods to reduce up-front costs, realize benefits of moving from capex to opex, and facilitate more predictable monthly billing structure. Prioritizing Strategic IT Investments Demands for operational efficiency, increased productivity, and better business performance continue to drive changes in how organizations view IT infrastructure. The focus is less on what is needed to support current business requirements and more on what is required to remain competitive as business evolves. As enterprises continue shifting to a cloud-native architecture, IT automation becomes more imperative. The agility and flexibility to effectively respond to changing market dynamics require modernization of applications and infrastructure. As a result, digital first should be embedded in the enterprise DNA to “future proof” the business. Document #US46761020TM ©2020 IDC. www.idc.com | Page 4IDC White Paper | Next-Gen Print Infrastructure Services: Leveraging Cloud and IoT to Accelerate Your Digital Transformation Strategy Without question, organizations are making sweeping investments in IT infrastructure in support of their digital transformation initiatives. While there are multiple components within the technology stack to consider, the desire to move IT infrastructure to the cloud is the number 1 business priority (see Figure 1). FIGURE 1 Top 5 IT Initiatives Supporting Strategic DX Investments Q. What are the main IT initiatives supporting the strategic DX investments being made by your organization? Note: Multiple responses were allowed. Source: IDC’s Next-Gen Print Survey, May 2020 Methodology To help organizations update and optimize their print infrastructure to better support digital transformation efforts, Lexmark partnered with IDC on a variety of customer research focused on the role print plays in an organization’s digital transformation efforts, associated challenges, and preferred solutions. Primary research included customer focus groups, interviews, and a global web survey (n = 1,511) with organizations actively involved in digital transformation. Situation Overview When it comes to IT outsourcing, enterprises are swayed not just by the productivity issues already described but also by the ability to deploy resources more effectively. Most IT departments are stretched thin supporting companywide issues while also dedicating resources to strategic projects. To address these resource

Operations

Supply Chain

Distribution

Sales

Marketing

HR

Finance

Data analytics including AI/ML

IT outsourcing

Multicloud/hybrid  cloud integration

Internet of  Things (IoT)

Cloud Migration

Security  (endpoint  protection) of  the print  devices Amount of  internal  resources  required to  manage and  support  associated print  infrastructure Security of the  overall print  infrastructure Cost and  maintenance  of physical (on  premises)  print servers Security of  print/docum ent content

of knowledge workers report  spending 21-30% of their work  week on document-related  tasks (paper and digital). of documents used each day  are paper documents. Knowledge workers  create 

documents per week… 

electronic documents  per week.

E ssential Work fl o w