Product Line Strategy, Dynamic Publishing Solutions Global, Frost & Sullivan s Global Research Platform

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1 Product Line Strategy, Dynamic Publishing Solutions Global, 2010 Frost & Sullivan s Global Research Platform Frost & Sullivan is entering its 50 th year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The Company s research philosophy originates with the CEO s 360-Degree Perspective,* which in turn serves as the foundation of its TEAM Research** methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2010 Global Product Line Strategy of the Year Award in Dynamic Publishing Solutions to Quark. Significance of the Product Line Strategy Award Key Industry Challenges As the market for publishing constantly evolves, organizations are beginning to realize the significance of maintaining and leveraging organizational assets. Dynamic publishing solutions, the value chain of software products that enables the creation, repurposing, publication, and delivery of content across a variety of mediums, gains traction each year as outmoded static, cut and paste-publishing models are abandoned. Dynamic publishing solutions, utilized in enterprise, educational, and government markets, play a powerful role in customer relationships, as creating customized collateral is now easier than ever before. Dynamic publishing enables content creators to reduce expenditures associated with the storage and repurposing of content, as well as allowing them to produce organizational materials that are more accurate, timely, and targeted for specific needs. Dynamic publishing plays an integral role in the shift towards organizational enterprise content management (ECM), integrating with software including marketing process optimization solutions (MPOS), and digital asset management (DAM). Dynamic publishing solutions are starting to emerge from the early market adoption phase, so awareness of these technologies continues to remain low. Fortunately, advocates of dynamic publishing have provided a broad range of literature on the market, describing usage scenarios, case studies, and success stories. This advocacy, paired with the flexibility of these solutions, opens the door for new deployments of dynamic publishing solutions. Since the market is also shaped by vendors, who provide solutions as well as client usage scenarios, the vendors play an integral role in articulating the value of dynamic publishing solutions to potential customers. The three market segments within the dynamic publishing solutions space include page layout and design tools, XML authoring tools, and publishing and rendering engines. Many vendors provide solutions that reach the need of one of these segments, but must be 2010 Frost & Sullivan 1 We Accelerate Growth

2 combined with other tools to create workflows. Recently, vendors such as Quark have changed that strategy, providing solutions that can meet the end-to-end publishing workflow requirements for customers across a variety of industries. Impact of Product Line Strategy Award on Key Stakeholders The Product Line Strategy Award is a prestigious recognition of Quark s accomplishments in the Dynamic Publishing Solutions Market. An unbiased, 3 rd party recognition can provide a profound impact in enhancing the brand value and thereby accelerating Quark s growth. As captured in Chart 1 below, by researching, ranking, and recognizing those who deliver excellence and best practices in their respective endeavors, Frost & Sullivan hopes to inspire, influence, and impact three specific constituencies: Investors Investors and shareholders always welcome unbiased and impartial third party recognition. Similarly, prospective investors and shareholders are drawn to companies with a well-established reputation for excellence. Unbiased validation is the best and most credible way to showcase an organization worthy of investment. Customers 3rd party industry recognition has been proven to be the most effective way to assure customers that they are partnering with an organization that is leading in its field. Employees This Award represents the creativity and dedication of Quark s executive team and employees. Such public recognition can boost morale and inspire your team to continue its best-in-class pursuit of a strong product line strategy for Quark Frost & Sullivan 2 We Accelerate Growth

3 Chart 1: Best Practices Leverage for Growth Acceleration Key Benchmarking Criteria for Product Line Strategy Award For the Product Line Strategy Award, the following criteria were used to benchmark Quark s performance against key competitors: Breadth of Product Line Size of Addressable Customer Base Impact on Customer Value Impact on Market Share Breadth of Applications/Markets Served 2010 Frost & Sullivan 3 We Accelerate Growth

4 Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 2. Chart 2: Performance-based Ratings for Decision Support Matrix This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Chart 3: Frost & Sullivan s 10 Step Process for Identifying Award-Recipients 2010 Frost & Sullivan 4 We Accelerate Growth

5 Breadth of Product Line Size of Addressable Customer Base Impact on Customer Value Impact on Market Share Breadth of Applications/Markets Served Weighted Rating BEST PRACTICES RESEARCH Best Practice Award Analysis for Quark The Decision Support Matrix, shown in Chart 4, illustrates the relative importance of each criterion for the Product Line Strategy Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2. Chart 4: Decision Support Matrix for Product Line Strategy Award Measurement of 1 10 (1 = lowest; 10 = highest) Award Criteria Relative Weight (%) 20% 20% 20% 20% 20% 100% Quark Competitor Competitor Criterion 1: Breadth of Product Line Quark continues to lead the industry in dynamic publishing evangelization efforts. The concept of dynamic publishing enables reuse of content, enabling enterprises and publishers to create content for multiple channels quickly and easily, leveraging information for different usages, geographies, and markets. Dynamic publishing not only reduces inconsistency and errors, it also keeps content up-to-date, streamlining the otherwise cumbersome workflows associated with traditional publishing. Quark offers multiple products to facilitate high-impact publishing workflows for any media channel. Products span point solutions, such as Quark XML Author, to full-scale publishing solutions including Quark Publishing System and Quark Dynamic Publishing Solution. Quark Dynamic Publishing Solution provides automation for layout, enabling rapid customization and adaptation of documents. Quark Publishing System works at the core of publishing workflows easing automation of both Adobe InDesign with InCopy as well as QuarkXPress and QuarkCopyDesk by centralizing the management and collaboration of projects from start to finish. Enterprises can track changes from start to finish maintaining 2010 Frost & Sullivan 5 We Accelerate Growth

6 a centralized control of their projects. Quark s continual innovation and introduction of new products and solutions is unsurpassed by its competitors. Criterion 2: Size of Addressable Customer Base The dynamic publishing solutions market is poised for substantial growth in the coming years. Enterprises are increasingly recognizing the power of reusable XML content, understanding that it not only shifts the burden away from existing resources, but also reduces time to publication, saving potentially hundreds of thousands of dollars every year. Dynamic publishing eliminates cutting and pasting, or recreating documents on a per instance basis. It is also important to note that nice to have dynamic publishing solutions are now viewed as mission critical across many industries. The market for dynamic publishing solutions continues to expand, as more organizations bring publishing workflows in-house, realizing unified control of their content. Companies are increasingly leveraging digitized content, which has resulted in dramatic growth for the dynamic publishing solutions market. Frost & Sullivan s research shows that innovations and integration of dynamic publishing technologies promises significant growth across the industry. Criterion 3: Impact on Customer Value Quark is the only vendor in the dynamic publishing market place to provide a full line of dynamic publishing software and page layout solutions to meet the unique needs of enterprise and media publishers. Directly competing against Adobe InDesign in the page layout solution market, Quark s product portfolio has evolved to incorporate all stages of the dynamic publishing process. Many of Quark s competitors provide components to endto-end XML workflows. However, Quark provides rich workflows that leverage page layout and design to create high-impact results. Quark s portfolio of dynamic publishing products reduces the cost of integration with third party solutions. Furthermore, the Quark Publishing System offers integration with Adobe InDesign, providing further flexibility. Quark s partnerships to integrate with content management solutions from Microsoft, IBM, EMC, and Alfresco provide an extremely deployable system for enterprise-class publishing. This end-to-end solution offers seamless integration and flexibility. Criterion 4: Impact on Market Share Quark s multifaceted approach enables successful penetration of media and corporate publishing verticals. Currently, Quark is the second largest vendor in the dynamic publishing solutions market, accounting for 28.3 percent of total market share. Impressively, Quark has demonstrated market stability amidst recent economic difficulties Frost & Sullivan 6 We Accelerate Growth

7 Throughout the last five years Quark has undertaken significant restructuring efforts. These changes, marked by a new executive team, introduction of new products, and strengthening of customer relationships, have reenergized the company and enabled a unique market position. Criterion 5: Breadth of Applications/Markets Served Quark enables professional publishers to reconfigure publishing processes to reach new audiences via media channels including the Internet and mobile devices. Additionally, Quark assists enterprises by improving marketing outreach. Relying on a single source for content, a publisher can create once and leverage content again and again across all desired media channels. Customers including agencies, magazine and print publishers, marketing communicators, and enterprise publishers enable Quark to provide flexible products that meet the needs of even the most challenging workflow. Creative enterprises can streamline workflows, creating high-impact marketing collateral, while enterprise publishers can boost up-todate, accurate customer facing messaging, achieving up-to-date, accurate, cross-media communications. Quark continues to gain traction in enterprise publishing across industries including financial services, retail, and life sciences, as marketing and engagement strategies increasingly incorporate digitized content. Furthermore, Quark has addressed the K-12 market, offering QuarkXPress at a heavily discounted rate in an effort to educate the next generation of content creators and facilitate content creation by faculty and staff. Further evidence of Quark s entrance into this market includes partnerships formed with digital publishing companies and e-reader software firms. Realizing the dynamic nature of educational content, Quark has quickly captured the attention of educators across the country. Based on the aforementioned research findings, Frost & Sullivan is pleased to recognize Quark with the 2010 Global Product Line Strategy of the Year Award for Dynamic Publishing Solutions Frost & Sullivan 7 We Accelerate Growth

8 The CEO 360-Degree PerspectiveTM - Visionary Platform for Growth Strategies The CEO 360-Degree Perspective model provides a clear illustration of the complex business universe in which CEOs and their management teams live today. It represents the foundation of Frost & Sullivan's global research organization and provides the basis on which companies can gain a visionary and strategic understanding of the market. The 360-Degree perspective is also a must-have requirement for the identification and analysis of best-practice performance by industry leaders. The 360-Degree model enables our clients to gain a comprehensive, action-oriented understanding of market evolution and its implications for their companies growth strategies. As illustrated in Chart 5 below, the following six-step process outlines how our researchers and consultants embed the 360-Degree perspective into their analyses and recommendations: Chart 5: How the CEO's 360-Degree Perspective Model Direct s Our Research 2010 Frost & Sullivan 8 We Accelerate Growth

9 Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process: it offers a 360-Degree view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that the successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 6: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 9 We Accelerate Growth

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