By: Louise Marsland


The problem is, commercial printers have not been able to see their future, according to Xerox. "We talked to the designers, creatives, art directors, marketers, and so on," said Steenburgh. "They told Xerox what they wanted and Xerox made it happen, changing the paradigm of printing and enabling marketers to be more effective."

Everyone wants to grow their revenues, says Steenburgh, the question is how do you do it? "Through better marketing campaigns, personalization, doing it in colour... The big word is content - and the new value chain is worth $1 trillion!"

Up to 1999, Xerox dealt mainly with commercial printers. "At the turn of the century we started dealing more with creative people. And then we put a team in place to deal with the marketing people. We started a content value chain that is worth $1.2 trillion dollars - 78% of it is marketing and sales oriented."

Xerox Corporation is calling for a transformation in the commercial printing arena, urging the industry to develop a new order where innovation and services move commercial printing out of the marketplace fight of a commodity business.

Said Steenburgh: "Digital printing is a complement to offset, not simply a replacement. Unlike offset, digital printing is about much more than just printing."

These so-called producers of the "colour copier" - like Xerox - are revolutionizing the print industry by producing innovative marketing and sales solutions today. Brochures, like a targeted marketing campaign by a UK airline partnering with a travel agency, are enabled by innovative print solutions: the airline ticket is issued in a personalized cheque book format, with airline tickets, personalized luggage tags, vouchers, adverts, special offers, discounts, and so on...

So what has this got to do with Xerox and the like? According to Steenburgh, it is developments in printing, work flow and finishing that has enabled target marketing and made innovative campaigns of this nature even possible for marketers.

"This is a new revenue stream. Our printers are our customers and we are working with them to become more effective, to liaise with their customers, to bring in the marketers and start the dialogue on this new technology... Marketers, designers and creatives need to know what is possible!"

Frank Romano, professor emeritus of Rochester Institute of Technology's School of Print Media, estimates the worldwide revenue generated from content creation to production and distribution amounts to a staggering 1.2 trillion dollar global market, which is more than double the global printing market.

"If we go beyond the traditional view of printing and align with those who want to do business in new ways, then we are on our way to new opportunities for revenue and profit," Steenburgh noted. "Today Xerox is working with customers who are leading completely new graphic communications business models. It involves a combination of the right business model, printing technology and the right workflow."

Steenburgh added that the industry is moving toward a services model, where digital technologies are employed, enabling print providers to deliver a broader set communications services that meet the needs of their customers. "It is a model that takes us from make-then-sell to sell-then-make, from mass marketing to mass customization - and from a primarily paper-based world to a web-based world."

Research shows that the 'Print on Demand' market will grow 14% next year. One-third digital colour work will be personalized by next year. Research also shows that by 2010, 20% of all print jobs will be turned around in 24 hours. And today, 78% of four-colour jobs are shorter than 5000 pages.

Studies of print operations show that the majority of printing costs and revenue opportunities are locked inside workflow. InfoTrends/CAP Ventures reports that 80 - 85% of the cost in printing operations is in non-printing activities, such a preparation work and customer approvals.

Digital workflow is about reducing these costs and capturing the additional revenue opportunities, from creation to distribution. It is for this reason that Xerox is expanding partnerships with Adobe, Creo, EFI and others, as part of its FreeFlow Digital Workflow initiative to combine workflow tools based on open industry standard workflow innovation, driving our industry.

For example, in South Africa, digital workflow is transforming the printing, tracking and delivery of examination papers for schools in KwaZulu Natal, the Northern Cape and in the Western Cape. Their new system uses Xerox DocuTech Production Publishers, Xerox FreeFlow Makeready and multiple partner products to improve security, cut costs, reduce errors and increase on-time deliveries for the provinces' school systems.

Steenburgh added, "the right technology, combined with the right workflow and the right business model, can reposition the printing industry to meet customers' needs and to become more strategically relevant to their businesses. In the process we can breath new life into an industry that otherwise faces a tough road of cost reduction and price pressures. The 'new business of printing' creates a path to revenue growth, relevance and responsiveness on behalf of customers and clients everywhere. It is no longer just about printing - it is about partnerships that drive sales and profits. This is what the future of print is about."

He emphasized that printers which embrace the new technology can go after new business. "This is the business of marketing - to grow marketing and sales. Print won't go away... but the future opportunity is in colour, the personalization, and direct marketing solutions. That is where the excitement is."

[26 Jan 2005 14:23]

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