The Transformation of the Print Industry Mind The Gap

Transcription

1 97 Libbey Industrial Parkway Suite 300 Weymouth, MA Phone: Fax: The Transformation of the Print Industry Mind The Gap Charles A. Pesko, Jr. Managing Director InfoTrends/CAP Ventures 2005 InfoTrends/CAP Ventures 1 Good afternoon ladies and gentlemen! Welcome to the twelfth annual On Demand Exhibition and Conference. Thank you for taking time out of your busy conference schedules to join us here this afternoon. In preparing for this presentation, I realized that we have been talking about revolutionary changes in the printing industry as far back as the early nineties. Back then, we noted the beginning of its transformation from a manufacturing industry to a service industry. We talked about the evolution of printers into business communications service providers. And we talked about the opportunities presented by disruptive new technologies like digital printing. Over ten years ago I told you in my On Demand keynote that this transformation was about to begin. Today I am telling you that it is well underway. The industry has reached a tipping point. Over the coming decade, the old way of doing business will disappear, and the new way will become the norm. Some of you know that InfoTrends/CAP Ventures has an office near London. During my last visit there, I was riding the Tube on my way to visit clients. The London subway system is over 100 years old. As I was waiting for the subway to arrive, I noticed the signs throughout the station warning riders to mind the gap ; in other words, to use caution when crossing over the space between the platform and the subway car. In some stations the gap is wide and dangerous. It occurred to me that this was an appropriate warning to our printing industry. Mind the gap! 2005 InfoTrends/CAP Ventures 1

2 2005 InfoTrends/CAP Ventures 2 This is a picture of the edge of the Tube platform. It is reminiscent of the gap that we have seen develop between those service providers who have embraced new business models and those who cling to old ways. This gap is widening as transformation progresses, driven by the adoption of digital technology. Mind the gap! The time for action is now. Those service providers who have crossed the gap have developed a new business strategy. They have the vision to successfully face the challenge of implementing that strategy. They understand the requirement for super-efficient workflows and the need to expand their product portfolios beyond print. They understand the opportunities offered by digital printing and the Internet. These service providers get it and they are leading the charge. They are actually driving industry transformation. If you are not part of this movement, the time to act is now! We are reaching a critical point in our industry s transformation. It is time to make a move. It is time to cross the gap, or it will be impossible to catch up. You need to have a strategy, a plan, and the vision to implement it. If you think you are going to just sit back and ride out hard times, you won t make it. And I don t just mean a notion or a wish. You need a strategic plan and a business plan similar to the one the U.S. Government Printing Office has published. The GPO s Strategic Vision for the 21st Century not only outlines what they are going to achieve but assigns a timeline, a budget and a specific plan to achieve it. This means that everyone on the staff can move towards the same, documented goals. More importantly, the plan provides a benchmark and metrics to assess progress as they advance towards those goals. In order to better understand the phenomenon of industry transformation, let s turn to business guru Michael Porter and his colleague, Jan Rivkin of Harvard Business School. Porter and Rivkin wrote about industry transformation back in the year 2000, when it was clear that the Internet would be a disruptive force across all industries. It is interesting reading! Transformation is sparked by a technology or event that allows us to do business in a significantly different way InfoTrends/CAP Ventures 2

3 2005 InfoTrends/CAP Ventures 3 We are all familiar with the concept. A good example is Wal-Mart, a company that effectively uses computing and communications technology to create a super-efficient supply chain. This allowed them to significantly reduce costs, lower prices, and transform the entire retail industry. In some cases entire U.S. downtown business centers were wiped out when Wal-Mart came to town. In some cases, towns are fighting to keep Wal-Mart out! Today, Wal-Mart is the world s largest retailer and the largest private employer in the United States with over 1 million US workers. Porter and Rivkin tell us that industry structure normally changes slowly. But during periods of transformation many related elements of industry structure change rapidly and at the same time. When transformation is complete, the competitive landscape is quite different from what it was like before transformation began InfoTrends/CAP Ventures 3

4 Transformation Drives Consolidation Transformation Number of firms 10 Years Likely Consolidation Time Source: Porter, Michael E. and Jan W. Rivkin, Harvard Business Review, July 10, InfoTrends/CAP Ventures 4 One of the impacts of transformation is industry consolidation and a reduction in the total number of firms. Porter tells us this consolidation takes about ten years to complete. The research says that roughly half of the companies in an industry at its population peak disappear in the subsequent shakeout. Let me repeat that. Roughly half of the companies disappear. They are either acquired or shut their doors InfoTrends/CAP Ventures 4

5 U.S. Print Industry Consolidation (000) 80-20% Over 14 Years Print Establishments Source: A.F. Lewis 2005 InfoTrends/CAP Ventures 5 All of you know that we are experiencing consolidation within the print industry. In fact, from 1990 to today we have already seen a 20% reduction in the number of printing plants in North America. According to A.F. Lewis an average of 170 plants and 390 presses have left the market each month between June 2000 and January Now this doesn t necessarily mean that all those plants have closed. It is not time to polish up your resume and switch industries. Many of these establishments have been lost to mergers and acquisition. And we don t think that this trend will slow down in the near future. We can still lose an additional 30% of these establishments. But the survivors are larger, more technologically savvy and will provide a greater range of services to a wider audience. They also have greater access to capital and are more likely to invest in technology. Most importantly, they will look very different from their pre-transformation predecessors. Print will be a continually shrinking share of their overall product and service offerings. So, Mind the gap! As the gap widens, this consolidation will accelerate. And the wider the gap, the harder it is to cross. You know, it has been fifteen years since digital printing first came on the graphic arts scene. As I mentioned before, this is the twelfth annual On Demand conference. In 1993, we met in the basement of the Javits Center in New York with 3,200 attendees. This year, we expect over 25,000 to attend the On Demand show here in Philly. And this year, for the first time, the U.S. Department of Commerce has recognized digital printers as a legitimate segment of our industry InfoTrends/CAP Ventures 5

6 Department of Commerce Acknowledges Digital Print Segment 99% of Growth from Digital Printing Year Commercial Printing Copy Centers/ Quick Printing Digital Printing Total Industry 1997 $50.0 $10.9 $0.4 $ $50.1 $10.9 $2.4 $ % 0% 600% 3.3% Billions of Dollars Source: 2002 U.S. Economic Census, November InfoTrends/CAP Ventures 6 Though this government agency defined a digital printing industry segment in 1997, and estimated its size, 2002 was the first time it was included in a full economic census of all businesses in the United States. For the first time digital printing is acknowledged as an important segment of our industry. Data from the 2002 economic census was published last November. If we look at this data, we find that revenue has been flat for general commercial printers and quick printers, while digital printers have thrived. Notice that even though the total number of establishments is in decline, overall industry revenue is growing, even through a period of recession. Notice also that those establishments that consider themselves digital printers account for 99% of this growth! Those figures do not represent all the digital printing revenue in our industry. Many commercial and quick printers also utilize digital printing technology. But those firms that identify themselves as digital printers tend to be more than just printers. Our most recent print market study indicates that over 90 percent of digital printers also have some offset equipment. However they also offer more value added services. They ve embraced super-efficiency. They ve embraced digital technology throughout their business. They understand the value that technology brings throughout their organization and the value that it brings to their customers. Their growth is being driven by the adoption of an entire new business model. Growth is being driven by the group that is on the right side of the gap! So the outlook for the industry is not as bad as some will lead you to believe. The total industry is growing, if you consider all segments. At InfoTrends/CAP Ventures, not only do we look at industry statistics, but each year we speak with thousands of printers and other document service providers, as well as their vendors and their customers. They all continue to predict moderate growth InfoTrends/CAP Ventures 6

7 Industry Technology Adoption: The Gap Widens Percent of printers that own each product category 60% 50% Commercial Printers In-Plant Printers 40% 30% 20% 10% 0% Print MIS System Customer- Facing Tools Production Workflow Solutions Variable Data Tools Mailing Software 2005 InfoTrends/CAP Ventures 7 Last year, InfoTrends/CAPV conducted extensive studies with almost one thousand print-for-pay and in-plant print shops in the U.S., including general commercial printers as well as quick printers and digital printers. We talked to these folks about their current and future strategies, including technology adoption. This chart shows the results, and it is the perfect example of the cup being half full or half empty. On the positive side, we see that about half of commercial printers embrace new technology. On the negative side, there about half who are late adopters. You know, in an era where every cell phone has a GPS, customers expect that a print service provider can tell them where their job is in the print shop. Yet only half of print-for-pay establishments surveyed had deployed a print MIS system or an automated production management system. For in-plants, well under half had a print MIS system and less than one-quarter had an automated production management system. In the year 2005, it is hard to believe that only half of print-for-pay establishments and less than one-third of inplants have deployed Web-enabled tools to submit jobs and communicate with their customers. In fact, we believe, that any service provider that doesn t offer Internet-enabled tools will not survive this industry transformation. Today, that is like not having a telephone! It is encouraging that almost half of for-profit printers and almost one-third of in-plants have variable data tools, though most of these are basic addressing tools. And only about one-third have the mailing software required to deliver these printed products into the mailstream. Once again we see the gap between those who are proactively using digital technology to re-engineer their business and those who are not. It is important to note that we see larger companies making the technology investments, while many smaller organizations lag behind. This will further fuel ongoing industry consolidation. But it s not all about technology. Technology alone won t allow you to be successful in a transformed printing industry. You must re-engineer every aspect of your business InfoTrends/CAP Ventures 7

8 Successful Business Communication Service Provider Customer Engagement Technology Employees Business Communications Service Provider Internal Business Processes Business Model 2005 InfoTrends/CAP Ventures 8 Transformation is driven by a change in what customers need, want and expect. In past years we have talked at length about the need to evolve the services that we offer. We have said that printers need to develop into business communications service providers, growing their business by offering new value-added services. We know that revenue growth for ink and toner on paper is relatively flat, and that auxiliary services offer the promise of higher margins and additional revenue growth. But more importantly, your customers are asking for a broader array of services. Think about it. What are your customers buying from you? Are they buying print? Or perhaps they are buying a way to improve their marketing communications with their customers and prospects? Perhaps they are buying a way to make their documents more relevant to their readers? Or are they purchasing the confidence that their documents are accurate, secure and delivered on time? So you need to change your business model to sell what your customers are buying! Transform your offering to match what your customer needs. Don t just sell print. Sell a way to transform monthly statements into vehicles that offer customer service as well as promote new product offerings. Sell a complete marketing communications program, including metrics to track effectiveness of that program. Sell accurate, up-to-date training materials that are delivered on demand wherever and whenever they are needed. Transform your business model from a manufacturing focus to a services focus InfoTrends/CAP Ventures 8

9 Successful Business Communication Service Provider Customer Engagement Technology Employees Business Communications Service Provider Internal Business Processes Business Model 2005 InfoTrends/CAP Ventures 9 In order to make this transformation, you will need to re-engineer your internal business processes. Think about making the transition from craft-based processes to automated processes. How efficient is the layout of your plant? How many customer touch-points are there? Who does preflight? Where and how is estimating done? What type of marketing do you do? Is it more than an ad in the yellow pages? How about customer training? What new processes must you add in order to support additional services? The answers, in part, depend on your strategic plan for growth. Any successful plan will address these important issues in a comprehensive and measurable way. Of course, you need the right people with the right skill sets, and they may not be the people who are working for you now. You must have employees who are innovators as well as those who are implementers. You need employees who are committed to maintaining high levels of quality and customer support. A key ingredient for success is an understanding of data management, computing and communications technology. Consultative selling requires salespeople who know the tools and the language of your customer set. And speaking of customers, you must re-evaluate and change the way you engage your customers. Instead of a supplier you must become a partner. And in order to do this, you must understand their industry, their business processes and what keeps them awake at night. You must be prepared to demonstrate to customers and prospects how you can offer them additional value, in order to drive demand for your services. Gone are the days where you wait for business to come to you and you simply quote on a request and take orders. You must actively market and sell your services and educate prospects. You must strive for continuous innovation and continuous process improvement in order to grow and maintain these important relationships and remain competitive. Finally, you must make it easy to do business with you by deploying Web-enabled tools that provide 24/7 access and that automate routine customer service tasks. You must deploy technology that helps you perform one of your most critical tasks, that of capturing your customers needs and translating it into products. Okay, so you have developed a strategy for success in this dynamic print industry. Your new strategy will impact all facets of your organization. You will need to address sales and marketing, customer service, training, and of course, operations. And by the way, all of these subjects are covered in depth at this years ON DEMAND conference. But the key word here is action. There are multiple strategies for success, but you must select one. You must develop a well-thought out business plan and then make the necessary changes and investments to implement it. The printers who are most successful at transforming their business have prepared a detailed written business plan. The one choice that you don t have is to do nothing. To remain competitive you need to re-engineer your business InfoTrends/CAP Ventures 9

10 Mega Trends Driving Industry Transformation Digital printing Software and solutions Document process outsourcing 2005 InfoTrends/CAP Ventures 10 Remember to mind the gap! Let s switch gears for a moment and take a look at three of the megatrends that we believe are driving and will continue to drive industry transformation. We ll start by discussing what s new in the evolving digital printing market. Then we will look at the software and solutions that are playing an ever-increasing role in defining workflow. Finally, we will discuss an emerging business process approach to delivering document services, that we have called document process outsourcing, or DPO InfoTrends/CAP Ventures 10

11 Significant Penetration of Digital Printing Today Digital Printer Commercial Printer In-Plant Printer Own Color POD Own Black & White POD 0% 20% 40% 60% 80% 100% Source: The Changing Print For Pay Market: The Future of Commercial Printing and Corporate Print Services: The In-Plant Printing Opportunity 2005 InfoTrends/CAP Ventures 11 For the traditional print market, it is no longer a question of if they will invest in digital printing, but rather when they will invest and how much print volume will be moved to digital output. Digital printing has crossed the chasm and gone mainstream. Our recent studies indicate a fairly high level of penetration of digital print technology in the print world today. We found that roughly half of general commercial printers offer high speed black & white or color digital printing. Almost half of in-plant shops offer high speed black & white and over 60% offer color digital printing. As we would expect, the numbers are much higher for those that define themselves as digital printing specialists. Almost three quarters offer high speed black & white digital printing and almost all of them offer digital color printing. And we expect to see penetration of high speed digital color increase dramatically over the next two years. Close to half of all respondents expect to purchase a digital color device that prints at speeds of 60 ppm or more by InfoTrends/CAP Ventures 11

12 Digital Printing Market: Penetration and Share of Revenue Digital Printers Commercial Printers Share of Revenue Own Digital Equipment 0% 20% 40% 60% 80% 100% Source: The Changing Print For Pay Market: The Future of Commercial Printing 2005 InfoTrends/CAP Ventures 12 Of course not all sectors reported the same level of digital print revenue. Just because a plant has digital print technology, doesn t mean that it is an important source of income yet. While the vast majority of commercial printers have digital printing equipment onsite, it only represents an average of 15% of their revenue today. On the other hand, for those who identify themselves as digital printers, 57% of their revenue comes from digital print. These printers also offer a greater range of value added services and have higher margins InfoTrends/CAP Ventures 12

13 2 Year Expected Change in Commercial Print Revenue Source Lithography -7.7% Digital Printing 5.5% Value-Added Services 2.3% Other -0.1% -10% -5% 0% 5% 10% Source: The Changing Print For Pay Market: The Future of Commercial Printing 2005 InfoTrends/CAP Ventures 13 But overall, commercial printers expect their share of revenue from digital printing to grow by over 5% over the next two years, while their revenue from conventional lithography is expected to decline by almost 8% InfoTrends/CAP Ventures 13

14 Print On Demand Market (Retail Value of Print) ($B) B&W Color Source: InfoTrends/CAP Ventures U.S. POD Forecast, InfoTrends/CAP Ventures 14 We have tracked the growth of print-on-demand in our annual forecasts for over a decade now. The retail value of print-on-demand in the U.S. has grown from about $6 billion in 1995 to $34 billion in And we project it to grow to $60 billion by 2009, for a healthy annual growth rate of 18% for the 14 year period. Digital color printing will lead growth, increasing from $3 billion in 95 to $49 billion in 09, a compound annual growth rate of about 22%. Black and white will also grow from $3 billion to over $11 billion in the same timeframe, at a compound annual growth rate of 10% InfoTrends/CAP Ventures 14

15 U.S. Print On Demand Market (Retail Value of Print) Growth Rates: Overall 12% B & W 3% Color 15% $60 Billion $34 Billion $11.4 B & W Color $9.8 $24.2 $ Source: InfoTrends/CAP Ventures Preliminary U.S. POD Forecast, InfoTrends/CAP Ventures 15 If we look just at the next five-years, we expect that the retail value of print in the U.S. print-on-demand market will increase from around $34 billion in 2004 to around $60 billion in This growth will be driven by a 15% year-on-year increase in digital color pages. Growth in 2004 was defined by several factors: an improvement in the U.S. economy, the release of some pent-up demand, and some significant new product introductions. Print-on-demand product placements increased by a healthy 17% yearover-year from 2003 to Within the print-on-demand market, color solutions represented the biggest growth area, particularly color copier/printers producing more than 24 pages per minute. Black & white solutions also did well, also driven by the success of copier/printers InfoTrends/CAP Ventures 15

16 Office & Production Digital Color Copier/Printers (U.S.) U.S. Shipments (000) Non-UCP UCP Source: InfoTrends/CAP Ventures Preliminary U.S. POD Forecast, InfoTrends/CAP Ventures 16 One key factor driving the color market is a new device category that InfoTrends/CAPV calls the Universal Copier/Printers or UCPs. We define a UCP as a multifunctional device that cost-effectively copies and prints in monochrome and color with only a marginal capital premium over comparable black & white-only devices. This disruptive technology is displacing both monochrome and color units with a single system that does both. As you can see from the graphic, UCPs are taking the production print and office market by storm. It is creating an entirely new market for light production digital printers and copiers InfoTrends/CAP Ventures 16

17 2003 Global Print Production Workflow Software Market by Geography $5.9 Billion Revenue 4% 10% Asia Pacific (Excl. Japan) Japan 6% ROW 46% North America 34% Western Europe Source: The Global Print Production Workflow Market: Enabling Fundamental Business Change in Graphic Arts, InfoTrends/CAP Ventures 17 The second megatrend that I want to talk to you about this afternoon is software and solutions. As you know, InfoTrends/CAP Ventures has sized the market for print-on-demand hardware for over ten years now, and we have presented that data during our On Demand Conference keynotes. In 2004, we broke new ground by delivering the first ever global study looking at the production workflow software market. We sized the market and forecasted the growth for eleven different categories of production printing software. The total worldwide market for print production software was almost $6 billion in 2003, and will grow at a compound annual growth rate of over 8% to almost $9 billion in The most mature markets are in North America and Western Europe. About half of this worldwide revenue can be attributed to North America, and over one-third came from Western Europe. The rest of the world beyond North America and Europe only makes up 20% of the market for production software today InfoTrends/CAP Ventures 17

18 Projected Growth for Global Production Software Hybrid Workflow Print e-business Variable Data Digital Workflow Mail Prep Prepress Print MIS Offset Workflow Creative Controllers/RIPs Datastream Transformation 20% 16% 15% 13% 11% 10% 9% 6% 4% 3% 98% Source: InfoTrends, The Global Print Production Workflow Market: Enabling Fundamental Business Change in Graphic Arts, InfoTrends/CAP Ventures 18 But looking at the market as a whole does not tell the entire story. It is not surprising that within this $6 billion production workflow software market, those categories that will grow the fastest are those that enable super efficiency and value-added services. Examples are e-business infrastructure, variable data design and production applications and digital workflow automation. A new product category, hybrid software that drives both offset and digital production from the same application, will grow at a very high rate, but starts from a very small base. This growth will be driven by the introduction of digital devices into traditionally offset establishments, by ongoing industry consolidation, and the requirement to streamline operations. Customer-facing e-business applications not only enable super-efficiency, but they open the door to an entire range of new value-added services, particularly when combined with print-on-demand and variable data applications. Software has always been important to our industry, but new business models in the transformed printing industry will be driven by software innovation. Software will enable both the super-efficient workflow and new, value-added services that will be critical to growth. And it is software solutions that will allow service providers to effectively address their customers specific business objectives InfoTrends/CAP Ventures 18

19 The Document Services Evolution Document Process Outsourcing Stage 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) Stage 3 Evaluates the entire document life cycle to help customers improve internal business process components Stage 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 Complexity Stage 1 Printing and Finishing on a project basis 2005 InfoTrends/CAP Ventures 19 The third megatrend that I would like to talk about is an emerging new segment of document services that InfoTrends/CAP Ventures has defined and called document process outsourcing, or DPO, one of the biggest opportunities for printers is document outsourcing. What I mean by document outsourcing is the delegation to a supplier of any task or process in the document lifecycle, from creation through delivery. The document outsourcing market has been evolving, with more complex business models offering greater value for customers and new revenue sources and higher margins for service providers. Next let s review how the document outsourcing model has evolved. The simplest model, stage one, is the traditional spec-and-bid model, in which a printer provided basic printing and finishing services on a project-by-project basis. In stage two, printing, finishing and fulfillment are provided on-site or off-site under contract. These contracts include elements of complexity and customization that require a basic understanding of a customer s core business requirements. In stage three, we incorporate additional value-added services into this model, and we must take into consideration the entire document life cycle and the role that lifecycle plays in helping customers improve their internal business processes. The fourth stage is Document Process Outsourcing. DPO refers to the outsourcing of an entire document-intensive business process. In order to effectively deliver DPO services, a provider must have an in-depth knowledge of a customer s internal business processes as well as vertical industry. In a DPO engagement, the contractual agreement is centered on a business process, and is measured by the metrics related to that business process. An example of document process outsourcing might be managing everything to do with the creation, maintenance and distribution of technical documentation for a manufacturer. The metrics used to measure the process might be timeliness and accuracy. The service provider has the flexibility to change the specific elements of the document lifecycle to continuously improve the process. For example, the service provider might switch from a centralized print and distribute model to one in which documents are distributed electronically and printed locally. Both service provider and customer share the benefits of continuous process improvement InfoTrends/CAP Ventures 19

20 U.S. Document Outsourcing Market ($B) % CAGR % CAGR 0.7% CAGR 15.5% CAGR 0 Off-Site Services On-Site Services Statement Printing Source: InfoTrends/CAP Ventures, Preliminary U.S. Document Outsourcing Market Forecast Document Process Outsourcing 2005 InfoTrends/CAP Ventures 20 Last year we began tracking the DPO segment in our annual Document Outsourcing Market Forecast. We expect the DPO market in the United States to grow at a compound annual growth rate of over 15% for the next five years. It is important to note, however, that this segment will grow at the expense of traditional document outsourcing market segments, which will experience more moderate growth. The traditional segments are: - onsite document services (formerly called facilities management), - offsite document services (formerly called contracted print services) - and statement printing InfoTrends/CAP Ventures 20

21 Final Thoughts Common reaction to transformation postpone or abandon efforts to set strategy Deliberate and explicit setting of strategy more important than ever Firms with clear strategy often play a role in defining post transformation industry Source: Porter, Michael E. and Jan W. Rivkin, Harvard Business Review, July 10, InfoTrends/CAP Ventures 21 Before we summarize and close, let s go back to Porter and Rivkin s paper on industry transformation for an important discussion on strategy. Porter discusses strategy during periods of transformation. - He notes that it is a period of uncertainty, and it is not unusual to try to wait it out, rather than develop a strategic plan. - However, he claims that is it more important than ever to set a deliberate and explicit strategy during times of transformation. - Those firms who do develop clear strategies will play a major role in defining the direction of the industry. The printing industry is in the middle of a major industry transformation that will leave the industry looking radically different from the way it looked a decade ago. Industry transformation has created a gap between those printers who embrace digital technologies and implement new business models and those who cling to the past. As time goes on, that gap is widening, and it will be more difficult to make the leap to becoming a successful business communications service provider InfoTrends/CAP Ventures 21

22 Crossing the Gap Invest in new digital technologies that enable super-efficiency and valueadded services Change your business model to sell what your customers are buying Invest in internal processes, staff and customer strategies to support your new business model Create a detailed strategic/business plan 2005 InfoTrends/CAP Ventures 22 So what do you need to do to cross the gap? - In order to make that leap, you must evaluate and invest in the technologies that will make your business super-efficient, and that will allow you to expand the range of services that you offer your customers. But remember that technology is only one piece of your overall strategy. Printers who want to reengineer their business must embrace technology, but must also develop a new business model and put into place the internal business processes, staff, and customer engagement strategies to support that business model. Sell what your customers are buying! You will need to develop a strategic vision and a new business model, and create a detailed business plan to implement it. Your plan must include all aspects of your business. It must be a written plan, with specific metrics, that you revisit and revise on a regular basis. You must have a methodology for evaluating new opportunities. These opportunities may include investments in digital printing, production software, or they may lead you into document outsourcing. No matter what your new business model entails, without a clear business plan, your probability of success is low. And please Mind the gap! The one thing you can t do is nothing. Thank You InfoTrends/CAP Ventures 22

23 2005 InfoTrends/CAP Ventures 23 And please Mind the gap! The one thing you can t do is nothing. Thank You InfoTrends/CAP Ventures 23