Welcome & Introduction

Transcription

1 97 Libbey Industrial Parkway - Suite 300 Weymouth, MA Phone: Fax: Welcome & Introduction Charles A. Pesko, Jr. Managing Director September 13, InfoTrends/CAP Ventures 1

2 Strategic Consultants for the Digital Imaging and Document Solutions Industries London Boston Tokyo InfoTrends/CAP Ventures 2

3 New Services Commercial Printing Strategies Service Enterprise Document Assessment Services InfoTrends/CAP Ventures 3

4 POD China 2006 Co-Produced with China Printing Group Corporation and KeyinPrint Media November 14-16, 2006 Beijing Exposition Centre, P.R. China 20,000 visitors expected The ONLY event focused on print on demand technologies in China Digital printing technology Digital workflow Digital direct-to-plate InfoTrends/CAP Ventures 4

5 Publication & Association Sponsors The Printing Technology Association of China Digital Printing Subassociation China Publishing Group Corporation Digital Printing Magazine Printing Technology Magazine Printing Manager Magazine Printing Quality & Standardization Magazine China Printing Material Market Magazine InfoTrends/CAP Ventures 5

6 Multi-Client Studies 2005 The Evolving Digital Color On Demand Printing Opportunity (NA) Document Process Outsourcing: Business Strategies for Successful Market Engagement (NA) Document & Content Solutions: The Professional Services Opportunity (NA) The Global Digital Label Printing Opportunity (WW) Colour in the Office: A European Perspective (Europe) House and Store Brands: Disrupting the Imaging Supplies Industry (NA) Japan Print On Demand Study (Japan) China Print On Demand Study (China) InfoTrends/CAP Ventures 6

7 Recently Completed Multi-Client Studies Corporate Printing Services The European In-plant Printing Opportunity (Europe) The Global Print Production Workflow Market: Enabling Fundamental Business Change in Graphic Arts (WW) The Changing Print for Pay Market: The Future of Commercial Print (NA) Mobile Imaging: Technology Trends, Consumer Behavior, and Business Strategies (WW) InfoTrends/CAP Ventures 7

8 Private-Client Research Services Combining industry expertise with market research services Working with individual clients on specific assignments Market opportunity assessment Business plan development Products/service concept testing Customer requirements Brand awareness Mergers, acquisitions and partnerships InfoTrends/CAP Ventures 8

9 97 Libbey Industrial Parkway - Suite 300 Weymouth, MA Phone: Fax: Printing and Page Migration Print 05 InfoBriefing Charlie Corr Group Director September 13, InfoTrends/CAP Ventures 9

10 Total Worldwide Printing Estimate of entire printing market All types of printing regardless of technology - Three environments: Personal, Workgroup, & Production (attended) Based on worldwide 2002 gross domestic product (GDP) figures Cross-checked using per capita print revenue calculations InfoTrends/CAP Ventures 10

11 Equivalent Images By impression we mean an 8.5 x 11 (A4) side or image. Process color is counted as one impression (not four). Printing on two sides would be two impressions. An 11 x17 sheet printed on both sides would be four impressions. A single sheet of paper could be imaged multiple times InfoTrends/CAP Ventures 11

12 2004 Global Retail Value of Production Print: $761 Billion Asia & Oceania, $72.32 Western Europe, $ Africa, $7.06 Central & South America, $19.41 Eastern Europe and Former U.S.S.R., $17.35 Japan, $84.03 Middle East, $4.08 North America, $ InfoTrends/CAP Ventures 12

13 Global Value of Production Print & POD $900 $800 $700 $600 $B $500 $400 Global Print Global POD $300 $200 $100 $ InfoTrends/CAP Ventures 13

14 Global GDP Growth & Value of Production Print Growth 5% 4% 3% 2% 1% Print Growth GDP Growth 0% % -2% -3% InfoTrends/CAP Ventures 14

15 Global Production & POD Impressions 70,000 60,000 50,000 Trillions of Images 40,000 30,000 20,000 Global Impressions Global POD Impresions 10, InfoTrends/CAP Ventures 15

16 Global Impressions by Environment Trillions of Images CAGR Production - 2.3% Personal % Workgroup - 9.5% InfoTrends/CAP Ventures 16

17 Conclusions: Images Images are growing faster than paper use Printing in the home and workgroup is growing faster than production With minimal increases in images, the images printed must provide more value (e.g. convenience, color, variable data) to drive revenue growth A relationship between GDP and print remains, print growth lags GDP growth InfoTrends/CAP Ventures 17

18 The U.S. Variable Data Printing Opportunity InfoTrends/CAP Ventures 18

19 Definition A variable data job contains unique printed data Examples: name & address, account information, custom catalog It does not include electronic collation, JIT, or POD Impressions are measured in 8½" x 11" (A4) equivalent impressions - Process color is counted as one impression (not four) and spot color pages are counted as one impression (not two) - Black & white is counted as one impression. Two-sided black & white printing is counted as two impressions. An 11" x 17" (A3) two-sided black & white page is counted as four impressions InfoTrends/CAP Ventures 19

20 Segmentation Variable data jobs are printed on the following types of digital printing equipment (using InfoTrends/CAP Ventures market segmentation): POD Convenience Color Copier/Printers (less than 24 ppm) POD Production Process Color (24 + ppm) POD Spot Color POD Mid-Range Black & White POD High-Speed Black & White Data Center Spot Color Data Center Mid-Range Black & White Data Center High-Speed Black & White InfoTrends/CAP Ventures 20

21 The Total Digital Printing Market 3.3% CAGR Billions of 8.5 X 11 impressions Data Center POD InfoTrends/CAP Ventures 21

22 Total Digital Printing Variable Data Market % CAGR Billions of 8.5 X 11 impressions POD Variable Data Center Variable InfoTrends/CAP Ventures 22

23 Total POD Variable Data Market % CAGR Billions of 8.5 X 11 impressions Color B&W InfoTrends/CAP Ventures 23

24 Total POD B&W Variable Data Market % CAGR Billions of 8.5 X 11 impressions InfoTrends/CAP Ventures 24

25 Total POD Color Variable Data Market % CAGR Billions of 8.5 X 11 impressions InfoTrends/CAP Ventures 25

26 Most Variable Data is Simple Dynamic fields, graphics 13% Fixed fields, graphics 22% Fixed fields, data 40% Dynamic fields, data 25% InfoTrends/CAP Ventures 26

27 Conclusions: Variable Data The variable data market is driven by transaction documents Beyond statements, the market is still in the early adopter stage Full deployment of ERP systems will lead to CRM initiatives that will drive growth for 1:1 marketing Most variable data jobs are not complex, but almost all are mailed InfoTrends/CAP Ventures 27

28 97 Libbey Industrial Parkway - Suite 300 Weymouth, MA Phone: Fax: Bridging the Color Divide Jim Hamilton Director September 13, InfoTrends/CAP Ventures 28

29 Production Color and Monochrome Digital Print News InfoTrends/CAP Ventures 29

30 The Color Divide Historical progression: Monochrome Multi-color Process color Process plus Issues: It s expensive to print black & white pages on a dedicated color device It s inconvenient and unproductive to produce them separately and collate InfoTrends/CAP Ventures 30

31 Top Trends Color POD is driving the market The color market has moved to 24+ ppm devices Retail value of 24+ ppm color print expected to increase at a 26% compound annual growth rate between 2004 and 2009 Black & white volume will move to color devices Black & white POD retail value of print will show a CAGR of only about 2% Universal Copier/Printers (UCPs) will pick up much of that transferred volume in black & white or light coverage color pages Data processing and high-speed copying environments are in decline InfoTrends/CAP Ventures 31

32 Annual Impressions (Production Copying & Digital Printing, U.S.) B Overall 2% CAGR 928B 900 Annual Impressions (B) POD 9% CAGR Data Proc. -6% CAGR H-S Copy. -6% CAGR InfoTrends/CAP Ventures 32

33 Annual Impressions (U.S. POD) B 600 Annual Impressions (B) B Color 27% CAGR B/W 4% CAGR InfoTrends/CAP Ventures 33

34 Annual Impressions (U.S. POD) Annual Impressions (Billions) B&W Mid-Range B&W High-Speed Spot Color Color Copier/Printer Production Color Direct to Press InfoTrends/CAP Ventures 34

35 24+ Copier/Printer and Printer Impressions Per Month Per Duty Cycle 1,200, ,100,000 Impressions Per Month 1,000, , , , , , , , , , K 101K-999K 1 Million ,424 68, , ,098 71, , ,817 78, , ,993 87, , ,115 97, , , ,967 1,152, InfoTrends/CAP Ventures 35

36 24+ Copier/Printer and Printer Impressions Per Month Per Speed Class 800, Impressions Per Month 700, , , , , , ,000 0 PRINTERS COPIER / PRINTERS ,332 72, ,538 32,921 41, ,208 80, ,694 34,045 43, ,508 90, ,348 35,419 44,855 49, , , ,317 37,021 46,769 54, , , ,535 38,776 49,978 59, , , ,726 40,810 54,176 64, InfoTrends/CAP Ventures 36

37 What s Next? Universal Production Devices By design By service and consumable incentives InfoTrends/CAP Ventures 37

38 97 Libbey Industrial Parkway - Suite 300 Weymouth, MA Phone: Fax: A Business Process Approach That Drives Industry Revenue Holly Muscolino Director September 13, InfoTrends/CAP Ventures 38

39 Business Document Services Request Obsolescence Customer Interface Supply Chain Management Concept, Design Warehousing/ Archiving Creation, Imaging, Input Fulfillment/ Distribution (multi-channel) Printing/Finishing Data Management, Proofing Personalizing InfoTrends/CAP Ventures 39

40 Evolution of Document Services Document Process Outsourcing Phase 4 Transfer of an entire business process to the outsourced service provider Customer Value Outsourced print and Value- Added Services Outsourced Print (on, off site) Phase 3 Evaluates the entire document life cycle to help customers improve internal business process components Phase 2 Print production and fulfillment with elements of complexity and customization that require a understanding of customers core business requirements Traditional Spec and Bid Print Phase 1 Printing and Finishing on a project basis Complexity InfoTrends/CAP Ventures 40

41 U.S. Document Outsourcing Market Forecast ($ millions) 3.8% CAGR $30,000 $25,591 $25,000 $21,228 $20,000 $15,000 $10,000 $6, % CAGR $8, % CAGR 15.3% CAGR $5,000 $2,565 $2,676 $749 $1,525 $0 On-Site Contracted Services Statement Printing Off-Site Contracted Services Document Process Outsourcing Source: InfoTrends/CAP Ventures, U.S. Document Outsourcing Market Forecast InfoTrends/CAP Ventures 41

42 Evolution of the Document Services Value Proposition: Early 1990 s Cost Savings, Higher-Value Documents Inventory reduction Reduced labor Reduced cost Reduced obsolescence Faster turnaround Faster time to market More time to prepare Shorter run length More targeted (or even personalized) documents InfoTrends/CAP Ventures 42

43 Evolution of the Document Services Value Proposition: Late 1990 s Greater Efficiencies, One-Stop-Shop Document design Document distribution and print Document management Digital Printing Customer fulfillment Consulting and integration services Digital Print Services Customization/ variable print Web page design Electronic job submission Source: C. Pesko Keynote, On Demand Conference 1998 Media replication Digital Document Services Database management InfoTrends/CAP Ventures 43

44 Evolution of Document Services Value Proposition: Early 2000 s Business Process Approach Business process approach What is your customer really buying? How can you help your customer reach their business goals? How can you make them more successful? How can you be an integrated services partner? InfoTrends/CAP Ventures 44

45 Market Busting Strategy Identify the fundamental thing that you charge customers for your unit of business and the key metrics used to measure how profitably you re selling it. Change one or both to better meet customer s needs. Source: Rita Gunther McGrath and Ian C. MacMillan, MarketBusting: Strategies for Exceptional Business Growth, Harvard Business Review, March InfoTrends/CAP Ventures 45

46 For Example Is your customer buying brochures or a way to improve communications with customers and prospects? InfoTrends/CAP Ventures 46

47 For Example Is your customer buying financial print or a way to easily and accurately comply with government regulations? InfoTrends/CAP Ventures 47

48 For Example Is your customer buying manuals or a way to provide updated materials for training programs in multiple geographies InfoTrends/CAP Ventures 48

49 Adopting a Business Process Approach Understand your customer s business challenges, industry situation, and strategic situation beyond just print Includes vertical market knowledge and business process knowledge Look for adjacencies to current portfolio of services and competencies Consider subcontracting to provide additional services InfoTrends/CAP Ventures 49

50 97 Libbey Industrial Parkway - Suite 300 Weymouth, MA Phone: Fax: Thank You Holly Muscolino holly@capv.com InfoTrends/CAP Ventures 50

51 97 Libbey Industrial Parkway - Suite 300 Weymouth, MA Phone: Fax: Print Marketing An Oxymoron Print 05 InfoBriefing Frank Romano Lead Strategist September 13, InfoTrends/CAP Ventures 51

52 Print Is a Business $160 Billion to $200+ Billion Depending on who counts And what they count InfoTrends/CAP Ventures 52

53 Vive la Différence! All printers have presses All printers produce high quality All printers have good service So, what s the difference? InfoTrends/CAP Ventures 53

54 The Difference is Marketing Understanding the customer s business Solving problems Innovating InfoTrends/CAP Ventures 54

55 Peter Drucker... the business enterprise has two and only these two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business. Management: Task, Responsibilities, Practices InfoTrends/CAP Ventures 55

56 Printers Must Be More Individualistic If everyone is thinking alike, then no one is thinking. Benjamin Franklin InfoTrends/CAP Ventures 56

57 The Future of Print is Marketing InfoTrends/CAP Ventures 57

58 NEW Definition of Marketing Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. AMA, August InfoTrends/CAP Ventures 58

59 50 Percent of Print from Four Sectors 2000 (%) 2010 (%) 11 Agriculture Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation Information Finance and Insurance Real Estate Professional Services Educational Services Health Care and Social Arts, Entertainment and Rec Accommodation and Food Ser Other Services (ex Pub Admin) Public Administration InfoTrends/CAP Ventures 59

60 B2B Marketing Business marketing involves building profitable, valueoriented relationships between two businesses and the many individuals within them. Print buying is no longer a major factor. You must influence the originator InfoTrends/CAP Ventures 60

61 Printers Define Themselves by Their Press The web press market The 40-inch sheet-fed market The duplicator press market The digital printing market InfoTrends/CAP Ventures 61

62 Printers Define Themselves by Their Niche Forms printer Book printer Catalog printer Commercial printer InfoTrends/CAP Ventures 62

63 Printers Define Themselves by Their Market Healthcare Insurance Legal Casinos InfoTrends/CAP Ventures 63

64 The Print Customer Base About 2,000 major corporations About 24,000 medium-sized firms About 1,200,000 small businesses InfoTrends/CAP Ventures 64

65 The Good and Bad of this Example They operated a print on demand business, a Web site that ed job tickets. It was an electronic means of job submission and the internal workflow was very similar to a conventional job. They used JDF to connect a Web site to a digital digital printer to automate their process. Since implementation, they have gone from 25 orders processed per month to over 700 while maintaining an 85% reduction in print costs and a 92% reduction in customer processing costs InfoTrends/CAP Ventures 65

66 Conclusions Print no longer grows as it once did Print is no longer press-centric Print is no longer sales-oriented Print is marketing-oriented Printers must learn how to market InfoTrends/CAP Ventures 66

67 The Last Word from Peter Drucker The purpose of marketing is to make selling unnecessary InfoTrends/CAP Ventures 67

68 Digital Printing in China Haixiang Shen President of China Printing (Group) Corporation Chairman of Digital Printing Sub-association of China Sept. 13th, 2005 at InfoTrends/CAP Ventures Breakfast

69 The Status of Digital Printing in China Digital Printing Installation from 2002 to Sept Total: 871 sets installed Sets Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to shen@keyin.cn

70 Number Of New Digital Print Enterprises Increases Over the Years 25% 20% 15% 10% 5% 0% Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to

71 others 25% Digital Printing in China Geographic Allocation South east 30% North east 20% East 25% Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to

72 Major Applications of Digital Printing Equipment in China 70% 60% 62.50% 66.10% 51.80% 57.10% 50% 44.60% 40% 30% 20% 10% 23.20% 28.60% 0% commercial documents construction drawings and files advertisement variable data print print on demand Personalized print others Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to

73 The Utilization Rate of Installed Digital Printing Equipment underloaded <30%, 12.5% Overloaded 7.1% About 50%, 38.1% about 80%, 38.1% Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to

74 Intention to Open Multiple Shops depends 48% yes 39% no 13% Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to

75 92% Indicate Confidence in the Future of Digital Printing in China Normal, 0 No confidence, 7.70% Strong confidence, 34.60% Moderate confidence, 57.70% Survey conducted by KeyinPrint Media China For more detailed info., pls. browse or send to shen@keyin.cn

76 Ⅱ.Outlook to the Future Development of Digital Print in China 1. Four major trends of digital print in China a. Franchise become ones of the most important business modes for Chinese digital print players b. Generating new profits by providing value-added services to customers c. Quick response and network services based on digital, network, and database technologies becoming one of the core competitive advantages for digital print enterprises. d. Digital print more and more integrated with traditional print, becoming another value-added service of the traditional printing industry.

77 2.Five Hot Business Areas of the Future Digital Print in China a. Commerce b. Direct mail c. Personalised products d. Customized packaging and exhibition goods e. Publication on demand

78 POD China 2006 Date: Nov , 2006 Venue: Beijing Exhibition Center, China Exhibiting Area: 10,000 sqm

79 KeyinPrint Media China Seven major business areas of KeyinPrint Media Publishing Periodicals Publishing Books Conferences and Trade Fairs Network Publishing: Consultation and Research Industry-Related Activities National Technical Committee 170 on Printing Of Standardization Administration of China Training

80 Digital Printing Sub-association of China The Date of Foundation: Aug. 17, 2005 Chairman: Mr. Haixiang Shen Major digital printing vendors and users are mumbers of this association

81 KeyinPrint Cup Digital Printing Award, China 2005 Digital Printing in China Forum, 2005 Aug. 18, in Beijing, over 250 Audiences Aug. 24, in Shanghai, over 200 Audiences Aug. 30, in Guangzhou, over 200 Audiences Keynote speaker: Mr. Haixiang Shen

82 National Printing Technical Committee IS0/TC 130 The general secretary office placed in KeyinPrint Media

83 KeyinPrint Media China Digital Printing Magazine Cycle: Monthly Circulation: 12,000 copies Languages: Chinese Pages: about 100p/issue

84 Thanks! Seeing you in Beijing, China Nov More Information, Pls. Browse or send to -end-