IT Asset Disposition Best Practices & Case Studies Tools, Templates and Tips for success
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1 IT Asset Disposition Best Practices & Case Studies Tools, Templates and Tips for success Neil Peters-Michaud Cascade Asset Management October 19, 2016
2 Agenda Identify elements of an ideal ITAD program Case Studies the road to ideal 2 Getting to compliance Balancing security with cost Making ITAD a strategic advantage to the organization Tools Templates, calculators, benchmarks, action plans
3 What is an ideal ITAD program?
4 What s a totally ridiculous, messy ITAD program? 4
5 Elements of an ITAD program Cost & Value Security & Reputation Convenience & Integration 5
6 How is your ITAD program? It s closely tied to the current state of your IT Asset Management program
7 Resource Investment ITAM/ITAD Process Maturity Model Chaotic No control over IT assets. No policies, procedures or tools. Isolated decision-making Individual Reactive Little control over assets. Limited policies and programs. Disparate lists of assets managed independently. Departmental Defined ITAM policies, procedures and repository in place. Data gathered centrally, but not validated. Minimal use of data in decision making. Cross Functional Business Process Maturity Proactive Control of assets. Policies, procedures and repository in place. Comprehensive, reliable and accurate data. Assurance controls work. ITAM improvement driven by audits. Organizational Strategic Fully integrated solution with continual business process improvements in place. ITAM is a strategic organizational element that adds value to organization Fully Integrated
8 Elements of a successful ITAD program 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 8
9 Case Study #1: Getting to Compliance 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 9
10 What s important to the organization? Security Cost 10
11 The solution: 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 11
12 Sites without onsite inventory jobs 12 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 $ $1, $1, $ $1, B $ $ $ $ $ C $1, $5, $4, $ $4, D $ $1, $1, $ $1, E 1 79 $ $ $ $39.50 $ F $ $1, $1, $ $2, G $ $3, $3, $ $3, H $ $1, $ $ $1, I 3 72 $ $ $ $36.00 $ J $ $ $ $ $ K $ $ $43.64 $58.00 $14.36 L $ $ $ $ $ M $ $ $ $ $ N $ $ $ $ $ Grand Total 57 7,104 $3, , $19, $16, $3, $19, On average, the increased cost to outsource onsite inventory and secure tracking is about $343 per job or $2.75/asset
13 Case Study #2: Balance Security & Cost 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. 13
14 What s important to the organization? Security Cost 14
15 The solution: 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 15
16 16 Rebates for Resale with Cleared Media Rebates for Resale with Purged Media % Evaluated for Resale Opportunity Items received and processed between Nov, 2012 and Oct, 2013 Count and unit of measurement 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, $47, % 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, $70, % 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, $18, % TOTAL $155, $136, % Only HP laptops and desktops evaluated, assume 80% of monitors resellable Resale could generate ~$200,000 making services no net cost
17 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) 17
18 The results 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. 18
19 Case Study #3: Making ITAD a strategic advantage to the organization >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? 19
20 A consistent, value-generating program 20
21 Applying organizational principles to ITAD 21
22 The solution: 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 22
23 Tools for your ITAD program Templates Security Policy Business Associates Agreement Calculators Benchmarks Action plans 23
24 For more information Neil Peters-Michaud, CEO (office) Download toolkit information at: 24
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