Dallas Chamber of Commerce Page 1 October 05, 2018

HP Inc.
1501 Page Mill Road
Palo Alto, CA 94304
(650) 857-1501

October 23, 2018

Dallas Regional Chamber of Commerce
500 N Akard Street, Suite 2600
Dallas, Texas 75201

Dear Chamber of Commerce,

Corporate Social Responsibility is one of Hewlett Packard’s (HP) core values. As co-founder
Dave Packard once said “The betterment of society is not a job to be left to a few. It’s a
responsibility to be shared by all” (Horoszowski, 2014). All around the world HP has led
initiatives and projects to improve the local community and environment. HP has given IT
support and infrastructure to aid the Haiti earthquake recovery, created recycling centers in
Brazil and Kenya to reuse and properly dispose of electronic equipment and ink cartridges,
provided funding to build schools, and create workshops that offer training or scholarships for
students as prizes for competitions.

One specific environmental goal of ours is to “achieve zero deforestation caused by HP paper-
based products and packaging by 2020” (Hewlett-Packard 2017 Sustainability Report, 2017,
p.25). In 2016 we achieved that goal and maintained it in 2017. From schools to business to
government, paper is necessary in everything we do. However, with the rise of technology,
computers have begun to replace many documents and processes that have been relying on
paper. The result is increased efficiency and a reduction in waste as well as costs. As a
technology company, all of us at HP have experienced first-hand the incredible benefits of
embracing an integrated computer system, namely the massive reduction in paper and other
printer based waste. A perfect example is our Enterprise Content Management (ECM) software
which allows organizations to access and utilize documents and information across multiple
divisions to provide greater productivity and teamwork (Hewlett-Packard, n.d.). Therefore we
propose to implement an integrated computer system for the City of Dallas in an effort to
reduce the incredible amount to paper used and wasted.

Background

Paperless initiatives are something that an ever growing number of corporations across the
United States and the world are undertaking, not only is this a fiscally more efficient method of
doing business, it's also an environmentally beneficial practice by reducing the worlds need for
Dallas Chamber of Commerce Page 2 October 05, 2018

deforestation. The goal of our paperless initiative is to bring a significantly sounder practice into
the world and more specifically the city of Dallas. Dallas has a massive parks department that
makes the city a substantially more beautiful and recreationally enjoyable place to live in.
Dallas’ parks bring nature into the city and provide the critical role of delivering tranquility and
happiness into an area that can sometimes be overrun by the fast paced, chaotic lifestyle of
urban living. The paperless initiative will dedicate a percentage of all the savings from paper
related office expenses to the Dallas parks and recreations department, furthering not only the
environment globally, by reducing our dependence on deforestation, but also exemplifying the
beautiful alcoves of nature the Dallas park system fosters for its citizens and visitors.

Problem

Consumption of paper is a massive waste in virtually any office in the world. Over 12.1 trillion
sheets of paper are used in the United States in one year which is enough to build a 12-foot
wall from New York to California (The World Counts, 2014). Some other facts about paper
waste are that “pulp and paper is the 3rd largest industrial polluter of air, water and soil”,
“chlorine-based bleaches are used during production which results in toxic materials being
released”, and that “when paper rots, it emits methane gas which is 25 times more toxic than
CO2” (The World Counts, 2014). Until recently, this consumption was essentially considered to
be overhead due to its cyclical and consistent nature. This seemingly inescapable cost incurred
by almost any stand up organization is now a thing of the past. In the years to come, the
practice of using anything paper will seem as antiquated as using oil lamps for lighting.

The advantages of adopting our paperless system are threefold. First, there is the up front costs
associated with simply purchasing the required allotment of paper for your organization, this
averages out to be an astounding ten thousand sheets of paper per person per year (Petronzio,
2014). Since the City of Dallas employs thirteen thousand people, the amount of paper the
city’s employees consume is roughly 130 million sheets per year (City of Dallas, n.d.). Multiply
this times the cost of a sheet of paper, roughly 2 cents, and that leaves you with a total cost of
$2.6 million a year. The second cost associated with paper use is the cost of printers and ink
that must be purchased. This is a significant costs because according to Tercius Bufete’s article
on printer ink waste “many [printer] models delivered half or less of their ink to the page”
(Bufete, 2018). Third, you have the costs associated with filing and storing these massive
archives of paper files. This is an intrinsic cost of using paper for any organization which still
uses this antiquated medium of recording information. Under the paperless initiative, all of
these repeated and hefty charges will be swiftly displaced by our digital systems.

Purpose

The purpose of this proposal is to reduce the environmental impact of paper and ink based
products in the city of Dallas. The method we choose to accomplish this goal is to implement a
paperless system into the city government which currently generates a significant amount of
paper waste. With the use of computer systems, the offices will not require nearly as much
paper, resulting in less paper used and less paper wasted. One other benefit of this proposal is
Dallas Chamber of Commerce Page 3 October 05, 2018

to speed up the efficiency of the local government. By using digitized systems there will be less
need of manual filing systems and faster processing of city requests. With the city using less
paper, money can be saved on the massive amounts of paper that is currently costing the city,
and consequently the denizens of Dallas money. The money saved through this program will be
given to the parks and recreation department, maximizing the funding for the city of Dallas’
already stellar parks.

Proposal

We ask that the Dallas Chamber of Commerce cover half the costs of this venture, and advocate
to use the money saved through our highly developed paperless initiative to increase funding to
the Parks and Recreation Department of Dallas. The magnitude of money saved and reinvested
into parks through this program could rapidly transform the city of Dallas into a world class
example of what a cityscape could be. Additionally, we as HP employees are well equipped to
personally manage agencies through this potentially tumultuous transition. As previously
mentioned, paperless initiatives increase government efficiency greatly, something all
governments could use, as well as providing practically guaranteed and significant returns on
investment.

Plan

Software

The first category required in our plan is software. This software includes the programs and
operating information that allow the Enterprise Content Management system to increase
efficiency and reduce waste within the City of Dallas. The cost of software is typically broken
down into the price of licensing. The table below shows how quickly software prices rise with
the addition of more users. Part of the benefit that HP would provide for this project is massive
savings in this area.

At HP we have considerable discounts for the bulk purchase of software licenses. Outside the
cost of implementation our costs stay the same whether there are 50 users or as in this case,
13,000. This allows HP to forgo any additional profit and gift the software at our historic cost.
The “50+ users” column in Figure 1 displays the total cost of software of $57,000 and $20,000
allocated for the labor needed to implement this technology (Johnston, 2005).
Dallas Chamber of Commerce Page 4 October 05, 2018

Figure 1

Hardware

For our plan, some additional hardware must be installed to work in tandem with our
Enterprise Content Management software. Hardware includes the physical products that must
be installed. This is a considerable upfront cost but will lead to a huge reduction in physical
products. For the Digital Fax Base and Cloud Based Storage the quantity of 6,500 was assumed
based on 50% of the employees working in an office. Our hardware needs are as follows:

Item Price Quantity Total

Scanner $89.99 1,300 (1 per 10 $116,987

employee)

Double Monitors $190 1,300 (1 per 10 $247,000

employee)
Digital Faxes $8 6,500 $52,000
Base

Cloud Based Storage $15/user 6,500 $97,500

Total Cost $513,487

Services

The services category is comprised of one-time costs that insure our system is installed
successfully, that the multiple systems become integrated and run tests to make sure our
Dallas Chamber of Commerce Page 5 October 05, 2018

configuration was successful. These tests will confirm that all of our hardware and software is
running and that everything is in place for the City of Dallas employees. The costs listed below
are broken down by hour and the estimated time is used to calculate the total estimated cost
required for the services section of this project.

Program Estimated Time Cost per Hour Estimated Cost

Software Installation 12 hours $300 $3,600

Systems Integration 26 hours $420 $10,920

Test & Configuration 4 hours $275 $1,100

Total Cost $15,620

Support

Listed below are the options for level of continued support on our Enterprise Content
Management system. We recommend the Premiere Service and have included that cost in our
budget. This package provides 24/7 phone access (except for U.S. holidays) for City of Dallas
employees who may run into problems or have questions about the ECM system. This cost is
incurred annually and will therefore allow for continued success for this paper initiative for
years to come.

Option Delivery Dedicated Resources Annual Cost

Basic Phone (M-F, 8x5) Self Service Options $10,000

Except U.S. holidays

Premiere Phone (24/7) Self Service + 200 $18,000

Except U.S. holidays hours of on-site

Premium Phone (365, 24x7) Self service + $26,000

dedicated phone
support line

Total Cost $18,000

Training

The most important part of introducing new services into a workplace is the training involved
with it. Proper training not only decreases employee pushback and user frustration, but also
allows the full benefits of a content management system to be realized. Referenced below, the
e-Billing and e-Invoicing System should only take 2 weeks to be implemented. We recommend
Dallas Chamber of Commerce Page 6 October 05, 2018

a quick yet rigorous training process so everyone may learn at the same time. This should keep
the initiative fresh on everyone’s mind and allow for more advanced users to help others learn
the new technology.

Programs Delivery Method Duration Recommended

Audience

e-Billing System Instructor led 1 week Customer service

Hands-on lab Business office

e-Billing System Self study with 2 weeks Customer service

certification Business office

e-Invoicing System Instructor led 1 week Procurement

Hands-on lab Operations
Compliance

e-Invoicing System Self study with 2 weeks Procurement

certification Operations
Compliance

Staffing:

Staff Qualifications and Credentials

Hewlett Packard, having built an Enterprise Content Management (ECM) system from the
ground up, has proprietary knowledge that will aid in formulating a plan to best implement the
initiative. We have also spent considerable time studying how other cities throughout the
United States have worked to implement a paperless initiative and have selected Los Angeles
based on how successfully they underwent this initiative. In 2009, the County of Los Angeles’
Department of Public Works deduced:

how best to implement this new initiative through trials, flexibility, and innovation.
Challenges included developing and providing training; adjusting staff schedules in order
to accommodate occupying scanning equipment without disrupting other sectors of the
workforce; re-prioritizing assignments so that deadlines for both high priority and
routine assignments were met. (Proana, n.d., pg. 4).

This evaluated knowledge in tandem with creating our Enterprise Content Management system
and having worked hand in hand with other companies to implement their systems gives HP a
considerable leg up on competition in terms of the speed and cost of this initiative.

Staffing Requirements
Dallas Chamber of Commerce Page 7 October 05, 2018

The City of Dallas is composed of 13,000 employees and 71 districts. Due to the complex nature
of the City of Dallas’s structure, a paperless initiative would typically have to be implemented
department by department. HP suggests handling the dubious number of departments within
the City of Dallas by grouping them based on their size. Four groups: 25 and under, 25-50, 50-
200 and 200+ provides the simplest and easily managed arrangement. HP’s well trained
Implementation Specialists will be deployed according to their experience in respect to size of
enterprise they have managed. Only 5 Specialists are to be recommended, with the 200+ group
to be the sole group in need of oversight by 2 Specialists. These meticulously chosen employees
will be in direct contact with department heads to tackle any department specific conflicts and
work side by side to complete this initiative as efficiently as possible.

The specialists will be needed for the first two weeks to installed the e-billing and e-invoicing
system. Their salary and incurred costs are included in the installation section of our budget.
After this installation period ends, the only staff needed from HP will be included in our support
package. These employees are reachable by phone 24/7 and are specifically trained on the ECM
system and will continue to be the city's best source of help if any problems arise.

Budget

For our proposal, HP has already begun to accumulate individual costs and some have begun to
be added together in our “Plan” section. The Finance Department has decided to break down
the costs into five groups: hardware, software, implementation (labor), services and support.
Support as a cost needs to be handled differently because it is the only cost that will continue
to be incurred each year after completion of this project. Our value is calculated by taking the
present value of a perpetuity at the current discount rate of 2.75% (Amadeo, 2018). The overall
cost may seem very high but ““the cost of electronic records management...is less than 1/5th of
the cost of physical record management” (Kotze, n.d., pg. 15). The high initial costs will start to
pay for themselves within a few years.

Figure 2

Hardware Software Labor Services Support Total

$513,487 $57,000 $20,000 $15,620 $654,545 $1,260,652

Figure 2 and 3 are a complete breakdowns of the total costs needed to fully transition the City
of Dallas into a paperless organization. As mentioned before, this proposal only requires half of
this $1.26 million figure to be covered by the Dallas Chamber of Commerce. Figure 2 shows
these values in a basic side by side format to simply display the costs of this paperless
endeavor. Figure 3 is used in conjunction with Figure 2 in order to show the relativistic nature
of the costs that the City of Dallas with incur with this project. The two major costs of this plan
Dallas Chamber of Commerce Page 8 October 05, 2018

will be in hardware and support. The caveat to these two costs is that hardware will be up front
and essentially one time, disregarding repairs and replacements throughout time, whereas
support is a continual investment and is calculated in perpetuity. As seen in Figure 3 the labor,
services, and software costs are relatively negligible and do not contribute much to the overall
financial picture of this project.

Figure 3

Conclusion

In summary HP has long held the belief of using technology to empower communities and help
shape the world for the better, which requires environmentally conscious actions. Therefore we
desire to fulfil our wish of empowering the City of Dallas to become an example of a city that
preserves the surrounding environment; prioritizing nature does not hinder progress. Over the
course of one year HP will fund and provide the hardware, training, and support to convert all
departments of the City of Dallas government to a paperless system. The result will be a drastic
Dallas Chamber of Commerce Page 9 October 05, 2018

reduction in paper waste and an increase in office efficiency. This will provide a substantial
reduction in operating costs which will allow the city to spend the money instead on funding for
public parks and nature preservation. This results in helping the environment on two fronts,
paper waste being eliminated in the City of Dallas and additional funds for our Parks
Department.

Sincerely,

Evan Jorgensen Stephen Buerkert

Mihir Vashi Yen Huynh

Shane Tjiong

References

Amadeo, K. (2018, September 26). How the Federal Reserve Discount Rate Controls All

Other Rates. Retrieved October 11, 2018, from https://www.thebalance.com/federal-

reserve-discount-rate-3305922

Bufete, T. (2018, August 17). The High Cost of Wasted Printer Ink. Retrieved October 10,

2018, from https://www.consumerreports.org/printers/the-high-cost-of-wasted-

printer-ink/

City of Dallas. (n.d.). Linkedin. Retrieved from https://www.linkedin.com/company/city-of-

dallas

Horoszowski, M. (2014, November 22). 7 Thought Provoking Quotes from the 2014

Social Innovation Summit. Retrieved from https://blog.movingworlds.org/7-thought-

provoking-quotes-from-the-2014-social-innovation-summit/
Dallas Chamber of Commerce Page 10 October 05, 2018

Hewlett-Packard. (2017) 2017 Sustainable Impact Report. Retrieved from

http://h20195.www2.hp.com/v2/GetDocument.aspx?docname=c05968415

Hewlett-Packard. (n.d.) “Enterprise Content Management.”

http://www8.hp.com/us/en/software-solutions/ecm-enterprise-content-

management/index.html#!&

Johnston, R. P., & Spencer, R. H. (2005, June 01). Time to Go Paperless. Retrieved from

https://www.journalofaccountancy.com/issues/2005/jun/timetogopaperless.html

Kotze, D., Du Toit, I., & StQuintin, P. (n.d.). Is it time to go paperless? Retrieved October

11, 2018, from

https://www2.deloitte.com/content/dam/Deloitte/za/Documents/financial-

services/ZA_ItsTimeToGoPaperless_24042014.pdf

Petronzio, M. (2014, April 22). Average U.S. Office Worker Uses 10,000 Sheets of Paper

Per Year. Retrieved October 6 2018, from https://mashable.com/2014/04/22/earth-day-

paper-infographic/#koTZ4VR_tGqG

Proana, P. (n.d.). Paperless Office Initiative. Retrieved October 11, 2018, from

https://icma.org/sites/default/files/302919_Los Angeles County, CA 3.pdf

The World Counts. (2014, May 13). “Paper Waste Facts.”,

http://www.theworldcounts.com/stories/Paper-Waste-Facts.