IT Asset Disposition – Best Practices & Case Studies Tools, Templates and Tips for success
Neil Peters-Michaud
Cascade Asset Management
October 19, 2016
Agenda
2
Identify elements of an ideal ITAD program
Case Studies – the road to ideal
Getting to compliance
Balancing security with cost
Making ITAD a strategic advantage to the organization
Tools
Templates, calculators, benchmarks, action plans
What is an ideal ITAD program?
What’s a totally ridiculous, messy ITAD program?
4
Elements of an ITAD program
5
Cost & Value
Security & Reputation
Convenience & Integration
How is your ITAD program?
It’s closely tied to the current state of
your IT Asset Management program
Reso
urc
e In
vest
ment
Strategic
Fully integrated solution with continual business process improvements in place. ITAM is a strategic organizational element that adds value to organization
Proactive
Control of assets. Policies, procedures and repository in place. Comprehensive, reliable and accurate data. Assurance controls work. ITAM improvement driven by audits.
Defined
ITAM policies, procedures and repository in place. Data gathered centrally, but not validated. Minimal use of data in decision making.
Reactive
Little control over assets. Limited policies and programs. Disparate lists of assets managed independently.
ITAM/ITAD Process Maturity Model
Chaotic
No control over IT assets. No policies, procedures or tools. Isolated decision-making
Business Process Maturity
Individual Departmental
Cross
Functional Organizational
Fully Integrated
Elements of a successful ITAD program
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Multi-stakeholder involvement
Understanding of requirements and goals
Comprehensive Policies and Procedures
Tools to manage asset disposition data and processes
Training and accountability of staff to implement processes
Integrated solutions with providers
Processes to evaluate and continually improve
Case Study #1: Getting to Compliance
9
Health care system with dozens of hospitals and clinics
Past issues with data breach incidents
Inconsistent policies and procedures
Disposition decisions made at facility level
GOAL Create a consistent disposition process that reduces risk of future loss of data
What’s important to the organization?
10
Security Cost
The solution:
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Benchmark current processes and costs at facilities
Identify the facility with “best practices”
Set new standard process around best practice
Define and communicate new process
Train staff and stakeholders
Test and review, update as necessary
Implement and compare costs to benchmark
12
Sites without
onsite
inventory jobs
Number
of Jobs
Assets from
Site
Current
Labor Cost
Avg Assets
per Job
Avg Hours/Job - if
onsite inventory
Total Labor if
Onsite Inv
Difference in
Labor Costs
Difference in
Inventory Charge
Total incremental
cost increase
A 4 630 $60.00 157.5 7.2 $1,718.18 $1,658.18 $315.00 $1,973.18
B 2 215 $30.00 107.5 4.9 $586.36 $556.36 $107.50 $663.86
C 12 1871 $1,065.00 155.9 7.1 $5,102.73 $4,037.73 $935.50 $4,973.23
D 3 542 $270.00 180.7 8.2 $1,478.18 $1,208.18 $271.00 $1,479.18
E 1 79 $30.00 79.0 3.6 $215.45 $185.45 $39.50 $224.95
F 8 657 $105.00 82.1 3.7 $1,791.82 $1,686.82 $328.50 $2,015.32
G 7 1432 $780.00 204.6 9.3 $3,905.45 $3,125.45 $716.00 $3,841.45
H 4 410 $150.00 102.5 4.7 $1,118.18 $968.18 $205.00 $1,173.18
I 3 72 $57.00 24.0 1.1 $196.36 $139.36 $36.00 $175.36
J 4 351 $270.00 87.8 4.0 $957.27 $687.27 $175.50 $862.77
K 4 116 $360.00 29.0 1.3 $316.36 -$43.64 $58.00 $14.36
L 1 246 $15.00 246.0 11.2 $670.91 $655.91 $123.00 $778.91
M 2 251 $15.00 125.5 5.7 $684.55 $669.55 $125.50 $795.05
N 2 232 $150.00 116.0 5.3 $632.73 $482.73 $116.00 $598.73
Grand Total 57 7,104 $3,357.00 1,698.0 77.2 $19,374.55 $16,017.55 $3,552.00 $19,569.55
On average, the increased cost to outsource onsite inventory and secure tracking is about $343 per job or $2.75/asset
Case Study #2: Balance Security & Cost
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Health care system with ~ 12,000 employees
Security policy requires destruction of IT assets at disposal
Reimbursement reductions impacting budgets
Considering sending electronics to scrap recycler
GOAL Protect security interests while reducing costs.
What’s important to the organization?
14
Security Cost
The solution:
15
Review security policy – and what drives it
Compare goals of policy to current standards and best practices
If data security is the goal, why destroy non-data items of value
during disposition? Lease returns and returns aren’t destroyed.
Perform financial analysis of alternative strategies
Update security policy
Test and review, update as necessary
Implement and compare costs to benchmark
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Items received and processed between Nov, 2012 and Oct, 2013
Count and unit of measurement
Rebates for Resale with
Cleared Media
Rebates for Resale with
Purged Media
% Evaluated for Resale
Opportunity Audio / Video Equipment 60 ea. 0% Batteries 799 ea./3,072 lbs. 0% Bulk Electronics 37,786 lbs. 0% Computer / Display Combo Unit 7 ea. 0% Computing Device 4,120 ea. $62,028.00 $47,416.80 74% Handheld Device 1,006 ea. 0% Hard Drive 1,201 ea. 0% Imaging Device 950 ea. 0% Inventoried Electronics 2,131 ea./25,807 lbs. 0% Laptop Computer 1,581 ea. $75,570.00 $70,736.40 64% Media (Bulk) 4,278 lbs. 0% Media (Inventoried) 929 ea. 0% Network Device 676 ea. 0% Rack Mount Server 213 ea. 0% Video Display Device 2,416 ea. $18,361.60 $18,361.80 80% TOTAL $155,959.60 $136,514.80 37%
Only HP laptops and desktops evaluated, assume 80% of monitors resellable Resale could generate ~$200,000
– making services “no net cost”
Value of Managed ITAD
On-site labor to collect and inventory data bearing assets
Secure transport of unwiped equipment to processing center
ITAD firm’s HIPAA compliance costs (background checks, trainings, building security, insurance, reporting)
Processing activities, including demanufacturing, testing, wiping and shredding
Environmentally responsible recycling (no hazardous waste sent to developing countries)
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The results
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Jun ’15 – May ‘16 Jun ’14 – May ‘15
Total Service/Pickup Fees $243,332 $185,098
Rebates Earned $247,323 $97,065
Net ITAD Cost (Credit) ($3.991) $88,033
Weight Received 193,913 lbs. 103,676 lbs.
“Thank you for the information. We are very pleased with the results.”
Case Study #3: Making ITAD a strategic
advantage to the organization
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>30,000 associates
Started ITAD program with Cascade in 2003
Turned from cost center into revenue generator
Take it to the next level
GOAL How can we leverage the positive value of ITAD with our company goals?
A consistent, value-generating program
20
21
Applying organizational
principles to ITAD
The solution:
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Educate associates about impact of ITAD program
Employee electronics recycling event
Over 60,000 lbs. of electronics collected each year
Protect security interests of Kohler
Promotes shared interest in environmental sustainability
Employee engagement and satisfaction
Feature ITAD and recycling programs in publications
Use as a strategic advantage
Tools for your ITAD program
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Templates
Security Policy
Business Associates Agreement
Calculators
Benchmarks
Action plans
For more information
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Neil Peters-Michaud, CEO
608-316-6637 (office)
Download toolkit information at:
www.cascade-assets.com/tools
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