IT Asset Disposition – Best Practices & Case Studies Tools, Templates and Tips for success

Neil Peters-Michaud

Cascade Asset Management

October 19, 2016

Agenda

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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

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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

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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?

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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

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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?

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Security Cost

The solution:

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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

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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

npm@cascade-assets.com

608-316-6637 (office)

Download toolkit information at:

www.cascade-assets.com/tools