InfoTrends Briefing at Graph · PDF file... Production Printing The Future is Now: Dealing...
Transcript of InfoTrends Briefing at Graph · PDF file... Production Printing The Future is Now: Dealing...
1 © InfoTrends www.infotrends.com © InfoTrends
InfoTrends Briefing at Graph Expo
Jeff Hayes President September 29, 2014
2 © InfoTrends www.infotrends.com
Charlie Corr 1953 – 2014
Remembering our colleague and friend …
3 © InfoTrends www.infotrends.com
Support the future of our industry …
Contribute to the Electronic Document Scholarship Foundation www.edsf.org
Make a contribution
Join the EDSF Board
4 © InfoTrends www.infotrends.com
How InfoTrends Works with Clients
Strategy
Operations Sales
5 © InfoTrends www.infotrends.com
InfoTrends Products and Services
Custom Projects
Multi-client Studies
Advisory Services
Databases & Tools
6 © InfoTrends www.infotrends.com
Current Multi-client Studies
• Opportunities and Challenges in B2 Digital Printing
• Profiting through Digital Printing in the Décor Marketplace
• Disruptive Supply Chain Strategies for the Wide Format Printing Industry
• Enterprise Document Capture: Process Gaps and Revenue Opportunities
7 © InfoTrends www.infotrends.com
Strategy & Operations Consulting
• Strategic planning
• Operations assessment
• RFP development
8 © InfoTrends www.infotrends.com
InfoTrends Business Development Services
Licensed Content
- White papers
- Case studies
- Newsletters
- Blogs
Interactive Support
Customized Tools
InfoTrends Business
Development Services
- Calculators - Metrics - Competitive guides
- Webinars
- Customer events
- Sales training
- Strategy planning
- Leadership groups
Extensive library of content that can be customized for your needs
Business Development
Services
9 © InfoTrends www.infotrends.com
Helping You Engage with Customers
10 © InfoTrends www.infotrends.com
Breakfast Agenda
The Disruptor is the Platform
The Evolution of Digital Color - Jim Hamilton, Group Director, Production Printing
The Future is Now: Dealing with Disruptive Technologies - Barb Pellow, Group Director, Business Development Services
1
2
3
The Emergence of Next-Generation Workflow Platforms - Kaspar Roos, Director, Production Workflow and Customer Communications
4
11 © InfoTrends www.infotrends.com
Functional $20B*
Decorative $480B
Packaging $400B
$1.6 Trillion Global Production Print Markets
Materials Ink & Toner
Functional & Industrial Graphic Arts
Paper Paper/Board/Plastic Industrial Substrates Objects
*Inkjet-related
Communications $700B
• Digital print
• Mass customized
• On demand workflow
12 © InfoTrends www.infotrends.com
Commercial Printing Industry – No Growth
$0
$20
$40
$60
$80
$100
$120
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14F
Source: U.S. Department of Commerce, InfoTrends
U.S. Commercial Printing Value of Shipments ($B)
13 © InfoTrends www.infotrends.com
$0
$40
$80
$120
$160
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Analog Print
Digital Print
The Industry Transformation
U.S. Print and Online Advertising ($B)
Segments: U.S. Commercial Print, Quick Print, In-Plant, Data Center, Photofinishing
Source: U.S. Department of Commerce, IAB, InfoTrends
Digital Advertising
14 © InfoTrends www.infotrends.com
What does my client need?
15 © InfoTrends www.infotrends.com
I Need to Know What Time It Is
16 © InfoTrends www.infotrends.com
17 © InfoTrends www.infotrends.com
I Need to Reach and Engage with Customers and Prospects
18 © InfoTrends www.infotrends.com
Ad Verify
Email Mobile
Media Buy
Search
Web Site Social
Display Ads
Lead Scoring
Workflow
W2P
Print Mgmt.
RTB/Ad Exchanges
Campaign Mgmt.
Data Mgmt. 3rd Party
Data
Prefer. Mgmt.
Person- alization
Compo- sition
Schedu- ling
Locali- zation
DAM
WCM
Compli- ance
Fulfill- ment
Postal
KPI Dashboard
Cloud Connectors
App Market-
place APIs
CRM
ERP Call
Center
POS
E- Commerce
Security
Analytics
Tag Mgmt. MRM
19 © InfoTrends www.infotrends.com
20 © InfoTrends www.infotrends.com
Product
Platform
Service
21 © InfoTrends www.infotrends.com
Company Cultural Types
PLATFORM
Modules, instances Subscriptions
Assemble, integrate Usage/Tiers
Partners/Network Community-oriented
Agile Logarithmic/continual
Scale, disrupt
SERVICE
Projects, programs Proposals, retainers
Manage Hours/Billings
Sub-contractors People-oriented
React Multi-directional
Serve, retain
PRODUCT SKUs, jobs, versions Orders, contracts Manufacture, develop Unit Cost/Price Supply chain Process-oriented Plan Linear/incremental Repeat, update
22 © InfoTrends www.infotrends.com
Product
Platform
Service
23 © InfoTrends www.infotrends.com
Average response rate for emails is 0.12%
24 © InfoTrends www.infotrends.com
25 © InfoTrends www.infotrends.com
26 © InfoTrends www.infotrends.com
27 © InfoTrends www.infotrends.com
Strategy Recommendations
• Determine your application focus and client needs
− Communications – Decorative
− Packaging – Functional
• Add some “platform” to your company’s culture
− Assemble, agile – Partners
− Integrate – Scale, disrupt
• Make print an integral part of the digital marketing platform
− Robust API – Automated, mass customized
− Partner engagement – Integration, program management
28 © InfoTrends www.infotrends.com © InfoTrends
The Future is Now: Dealing with Disruptive Technologies
Barb Pellow Group Director September 29, 2014
29 © InfoTrends www.infotrends.com
The “David and Goliath” Effect: The Underdog Has Better Tools!
30 © InfoTrends www.infotrends.com
Advancements will transform life, business, and the global economy
Beating Goliath with Disruptive Technologies
31 © InfoTrends www.infotrends.com
Print Service Providers: Arming Your Business
• Mobile Wins
− Making Print Interactive
− Content on the Go!
• Wearables
• The 3D of Everything
• Send in the Clouds!
• Automation for Optimizing End-Customer Productivity
32 © InfoTrends www.infotrends.com
Mobile Wins!
“The trend has been that mobile is winning. It has now won.”
–Eric Schmidt, Google CEO
33 © InfoTrends www.infotrends.com
The Mobile Facts
• 1.8B smartphone users; up 25% since 2013
• Smartphone sales will reach 1.7B in 2018
• 227M tablets sold in 2013; surpassed portable PCs
• 55% of U.S. adults have smartphones, 42% have tablets
• More Americans use smartphone and tablet apps than PCs to access the Internet
• U.S. adults spend 2.8 hours per day on mobile devices
Sources: eMarketer, IDC. Pew Research Center
34 © InfoTrends www.infotrends.com
Mobile is a Bridge, Linking the Physical with the Digital
35 © InfoTrends www.infotrends.com
15%
18%
19%
21%
23%
30%
47%
59%
0% 20% 40% 60%
Make a purchase
Download mobile app
Contact info
Download music
Enter sweepstakes
Testing a code
Coupon/deal/discount
Additional info
Why do you interact with mobile barcodes?
N = 428 Consumers who have interacted with mobile barcodes
85%
24%
88%
43%
0%
20%
40%
60%
80%
100%
Familiar withMobile Barcodes
Interaction withMobile Barcodes
2011 2013
Have you ever seen a mobile code? Have you ever interacted with a mobile barcode?
Sources: Mobile Technology: Making Print Interactive (2011) and Consumer Media Trends Survey (2013), InfoTrends
Mobile Barcode Use Among Consumers
36 © InfoTrends www.infotrends.com
From Signage to Packaging
37 © InfoTrends www.infotrends.com
• Close proximity radio communications between NFC devices or unpowered chips (tags)
• NFC tags can be affixed to any surface
• Enables offline-to-online engagement
• 1 billion+ NFC-enabled phones by 2015
Near-Field Communications: Enabling Interaction
38 © InfoTrends www.infotrends.com
Comparison of NFC Tags vs. QR Codes
NFC QR Code
Image Recognition (Augmented
Reality)
Time required to read 1 second 15+ seconds 15+ seconds
Lighting and line-of-sight restrictions
No Yes Yes
Outside app required to read
No Yes Yes
Standardized & interoperable
Yes Yes No,
proprietary
Graphic design integration
Invisible or sticker
Visible, as large as possible
Invisible
Source: NFC Forum
NFC Will Win…Maybe!
39 © InfoTrends www.infotrends.com
What about Apple?
40 © InfoTrends www.infotrends.com
12%
50%
17%
57%
0%
20%
40%
60%
Familiar (No Examples)Familiar (w/ Examples)
2011 2013
Are you familiar with the concept of Augmented Reality?
2011 N = 1,192 Consumers | 2013 N = 1,126 Consumers
12%
13%
17%
19%
21%
26%
27%
35%
50%
0% 20% 40% 60%
Help make a purchase
Coupon/deal/discount
Testing out AR app
Enter sweepstakes
Access video
Additional info
Find location
Gaming
Fun/Entertainment
Why do you interact with Augmented Reality applications?
N = 159 Consumers who have interacted with AR applications
16%
25%
0%
10%
20%
30%
2011 2013
Have you ever interacted with an AR application?
2011 N = 591 Consumers | 2013 N = 639 Consumers
Sources: Mobile Technology: Making Print Interactive (2011) and Consumer Media Trends Survey (2013), InfoTrends
Augmented Reality is Gaining Awareness
41 © InfoTrends www.infotrends.com
There is Money in Augmented Reality!
• Nearly 900M smartphones will be AR-enabled in 2014
• AR software revenues will reach $5.1B by 2016 (CAGR: 95%)
• Mobile AR apps generate $300M in sales; expected to reach $5.2B by 2017
• Over 2.5B mobile AR apps will be downloaded by 2017
Sources: Semico Research, Global AR Summit, Juniper Research
42 © InfoTrends www.infotrends.com
Tools for Getting in the Game
43 © InfoTrends www.infotrends.com
Mobile Apps for Content on the Go!
• Enormous market expansion
• The continued growth of mobile devices:
− Enables the creation of digital documents
− Creates a need for efficient, readable,
mobile-optimized documents
− Opens up an emerging market
• Printers can make money!
− They can protect their existing revenues by becoming full service providers
− Print-to-mobile adds a new product offering for clients
− It also provides high margins and an ongoing revenue stream
“By 2017, there will be more than 905 million tablets in use on a global basis.”
–Forrester’s 2013 Mobile Workforce Adoption Trends
44 © InfoTrends www.infotrends.com
Tools that:
• Provide multi-channel publishing
through workflow automation
• Support a broad mix of customer
communication needs
• Deliver rich content where and how
consumers prefer it—print, Web,
mobile, app, social, etc.
• From marketing to customer service
and support documentation
• With robust analytics: watch, track,
and measure usage
Publishing Content Where it is Consumed: A New Revenue Opportunity
45 © InfoTrends www.infotrends.com
Tools Abound!
• Adobe Digital Publishing Suite
• GTxcel
• iMirus
• Inkling
• Quark Digital Publishing 2.0
• Xerox FreeFlow Digital Publisher
• … and more!
46 © InfoTrends www.infotrends.com
A Video/Audio App from a Printed Document Data Collection from a Printed Document
Apps in Action at FulminologyLLC
47 © InfoTrends www.infotrends.com
Glass SCAN!
48 © InfoTrends www.infotrends.com
$14 billion in 2014 to over $70 billion in 2024
Source: IDTechEx Wearable Technology Forecast 2014-2024
Wearables
49 © InfoTrends www.infotrends.com
Major Data Implications for Healthcare Marketing
“21% of Americans already use some form of technology to track their health data. As the market for wearable devices and health apps grows, so too will the mountain of data about our behaviors and vitals. Next year, we may see more of this data incorporated into our day-to-day medical care.”
–Pew Research
http://www.pewinternet.org/Presentations/2013/Jun/Health-Datapalooza.aspx
50 © InfoTrends www.infotrends.com
A Whole Different World
• A different dimension of time and relevance
• Valuable feedback and information (health)
• Volume of data for real-time personalization
• It’s time to learn!
− New data management applications
− Delivering content for wearable consumption
51 © InfoTrends www.infotrends.com
RFI
D
Packaging
Flex
ogr
aph
y
Dig
ital
Folding carton Flexible packaging
Co
rru
gate
d
Tick
et,
Tag
&
Lab
el
Color
Decorative printing
Gla
ss
Metal Wo
od
Ceramics
Text
ile
Material Science
Consumer
Production
Functional printing
3D Printing
Deposition
Apparel
Arc
hit
ectu
re
Prototyping
Rapid development
Small batch manufacturing P
last
ics
Resins
Pap
er
Mic
roel
ect
ron
ics
Printed electronics Pro
du
ct d
esi
gn
Pro
sth
etic
s
The 3D of Everything
52 © InfoTrends www.infotrends.com
3D Printing Will Change the World
Artwork by Bathsheba Grossman
• Faster design prototyping
• Enables custom manufacturing
• Enables miniaturization
• Enables parts to be made out of new materials
• Creates new markets, from toys to jewelry
53 © InfoTrends www.infotrends.com
3D: Migrating from Hobbyists to Commercial Manufacturing
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2012 2017E
Enterprise Consumer
Source: 3D Printers, Worldwide, Gartner, September 2013; Wells Fargo Management 2014
2012-2017E CAGR = 95%
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2012 2017E
Enterprise Consumer
2012-2017E CAGR = 82%
3D Printer Shipments (# of Units) 3D Printer Revenues ($Millions)
54 © InfoTrends www.infotrends.com
Businesses are Getting in the Game!
55 © InfoTrends www.infotrends.com
Source: Disruptive Technologies, McKinsey & Company, May 2103
“By 2025, most IT and Web applications/services could be Cloud delivered or enabled, and most businesses could be using cloud facilities and services for their computing resources.”
–McKinsey & Company
Send in the Clouds!
56 © InfoTrends www.infotrends.com
9%
13%
13%
13%
14%
15%
18%
20%
20%
23%
36%
0% 10% 20% 30% 40%
No need to install client software
Browser-based software
Support for mobile devices
Cost benefits
Access to value-added software, services
Back-up facilities
Flexible licensing
Fewer IT staff
Operational expense vs. capital expense
Better integration
Always up-to-date
Cloud Drivers
Multiple Responses Permitted
What are the most important benefits for your organization in moving print production software to the cloud?
N = 623 Respondents Source: InfoTrends
57 © InfoTrends www.infotrends.com
Transforming Davids into Goliaths
• Lower capital expenses
• Less infrastructure
• Fewer IT staff
• Ability to deliver more solutions and services to customers
• Enables small enterprises and entrepreneurs to level the playing field with larger rivals
58 © InfoTrends www.infotrends.com
“The most effective way to improve productivity is to eliminate work!”
–Bill Conway, Carlyle Group
Automation is Everything!
59 © InfoTrends www.infotrends.com
Your Customers Want to Automate…MARKETING! (1)
• Experiencing double-digit growth
• Over 50% adoption rate by 2015
• $4.6B revenue by 2016 (10.7% CAGR)
Source: Sirius Decisions, Forbes.com
Marketing automation …
60 © InfoTrends www.infotrends.com
Your Customers Want to Automate… MARKETING! (2)
Interest Research Evaluation Selection Decision Experience Engagement Up/Cross-Sell
Prospects Leads
Interested Leads
Qualified Leads
Customers Satisfied
Customers Loyal
Customers Long-Time Customers
Lead Generation Lead Nurturing Lead
Conversion Maximizing Customer Value
Leads Customers
61 © InfoTrends www.infotrends.com
Who Are the Leaders? How Can You Integrate?
29% 21% 11% 11% 6%
Marketo Eloqua (Oracle)
Hubspot Pardot (SFDC)
Act-On
Source: www.pepperglobal.com 2/5/2014
The use of Marketo is highest among small and medium-sized
businesses, while Eloqua is more prominent in large enterprises.
Hubspot is the leading platform among very small
companies.
62 © InfoTrends www.infotrends.com
Recommendations & Conclusions
63 © InfoTrends www.infotrends.com
Conclusions
“There is a set of advantages that have to do with material resources, and there is a set that have to do with the absence of material resources. The reason that underdogs win as often as they do is that the latter is sometimes every bit the equal of the former.”
–Malcolm Gladwell
http://www.goodreads.com/author/show/1439.Malcolm_Gladwell http://www.goodreads.com/work/quotes/21445709
64 © InfoTrends www.infotrends.com
The “David Difference”
• An information advantage: Closer to customers
• A time advantage: Nimble, ability to turn on a dime
• A scope advantage: The ability to focus on a niche
• A scale advantage: Get in the door early and defend
• An innovation advantage: Rapid adaptation of technology vs. legacy infrastructure
65 © InfoTrends www.infotrends.com
Pick Up Those Stones and Fight!
66 © InfoTrends www.infotrends.com © InfoTrends
The Evolution of Digital Color Directions in the Production Market
Jim Hamilton Group Director September 29, 2014
67 © InfoTrends www.infotrends.com
Functional Decorative Packaging
Production Digital Printing Application Landscape
Brand Protection Coding/Barcodes Consumer Labels Corrugated Direct-to-Shape Flexible Packaging Folding Carton
Ceramics Glass Architectural Automotive Consumer Electronics Consumer Goods Laminates Wall/Floor Covering Wood Textiles
Addressing CAD Photo Promotional Publishing Sign and Display Transactional
Materials Ink & Toner
3D Prototypes Tooling Manufacturing Printed Electronics Semiconductors Displays Solar Panels Biomedical Pharmaceuticals Organs
Graphic Communication
Functional & Industrial Graphics Arts
Paper Paper/Board/Plastic Industrial Substrates Objects
68 © InfoTrends www.infotrends.com
Inkjet Developments Are Enabling New Applications
• Increased resolution
− 1,200 by 1,200 dpi and higher (at high speed)
• Range of drop generation (as small as one picoliter)
− Enabling gray scaling and adaptive content based drop generation
• A new era of line print heads
− Any width for any application
• MEMs manufacturing (cost reduction and improved reliability)
• Material science innovation (in inks as well as functional fluids)
• New business models
− Proprietary systems become available for OEM partnerships for integrators
69 © InfoTrends www.infotrends.com
Production Color Themes at Graph Expo
• Light to mid-production color digital
• Cut-sheet inkjet color
• B2-format digital print
• Roll-fed inkjet for commercial print
• Wide format printing in commercial print and other production environments
• Production digital printing in industrial applications
70 © InfoTrends www.infotrends.com
Light to Mid-Production Digital Color Evolution
• Speeds steadily move up
− 70, 80, 90, 100 ppm
• Formats expand
• New features enter
− Edge-to-edge printing, long-sheet
• High end features move downmarket
− 5th station, long sheet
71 © InfoTrends www.infotrends.com
Ultra-high volume production (10M+)
High-volume production (1M-10M)
Mid-volume production
(301K-999K)
Light production (101-300K)
Entry-level production
(less than 100K)
Speed
Du
ty C
ycle
0 ipm 50 ipm 100 ipm 150 ipm 200 ipm 250 ipm
Exclusively MFPs
Note: MFP stands for multi-function peripheral, in other words, a copier/printer
Exclusively MFPs
Printer only
Printer only
• 5th station • 350 gsm
support • Long sheets • 100 ppm • Rated speed
printing on all stocks
• Production class finishing
• Registration accuracy
Roll-fed
printer only
The Production Color Digital Market
Edge-to-edge printing
Encapsulated production
72 © InfoTrends www.infotrends.com
Ultra-high volume production (10M+)
High-volume production (1M-10M)
Mid-volume production
(301K-999K)
Light production (101-300K)
Entry-level production
(less than 100K)
Speed
Du
ty C
ycle
0 ipm 50 ipm 100 ipm 150 ipm 200 ipm 250 ipm
Exclusively MFPs
Note: MFP stands for multi-function peripheral, in other words, a copier/printer
Exclusively MFPs
Printer only
Printer only
Roll-fed
printer only
Light to Mid-Production Color Digital
73 © InfoTrends www.infotrends.com
Two Classes of Production Digital Color Products
Throughput (A4 / Letter images per minute)
0 50 100 250 1,000 2,500 5,000
Acquisition Price (list)
$5,000,000
$1,000,000
$500,000
$100,000
0
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
• Less than 200 ppm • Short-run, quick turnaround,
print-on-demand • Low to mid-volume
• 600+ dpi resolution at high speed • Capable of very high volume • Big success in transaction, books,
and direct mail
?
74 © InfoTrends www.infotrends.com
Cut-Sheet Inkjet Color
Throughput (A4 / Letter images per minute)
0 50 100 250 1,000 2,500 5,000
Acquisition Price (list)
$5,000,000
$1,000,000
$500,000
$100,000
0
?
75 © InfoTrends www.infotrends.com
B2-Format Digital Print
• Relatively few placements except for HP Indigo 10000
• Most B2 vendors are at least one year behind previously announced schedules
Product Status
Delphax elan 250/500 In beta testing now
Fujifilm Jet Press 720 Available since 2013
Fujifilm Jet Press F No launch date
HP Indigo 10000 Available since late 2013
HP Indigo 30000 Available now
Komori IS-29 Beta units in 2014
Konica Minolta KM-1 Beta units in 2014
Landa S10 2014 beta planned (B1 format)
MGI AlphaJet No launch date
Miyakoshi/ Ryobi No launch date
Screen TruePress SX Available since late 2012
76 © InfoTrends www.infotrends.com
B2-format Digital Color Systems Must Have…
• Multiple paper sources
• Connections to in-line finishing
• Automatic duplex
77 © InfoTrends www.infotrends.com
What about Roll-Fed Inkjet for Commercial Print?
Source: U.S. Digital Production Printing Application Forecast: 2013-2018, InfoTrends
General Office
Promotional
Publishing
Transaction
Packaging
Utility
Consumer
58.1 billion pages 2013 U.S. Print Application Volume
10M+ Color Duty Cycle
Business cards
CAD/rendering
Letterhead, other office documents
Presentations
Proposals, reports
Brochures
Catalogs
Direct Mail
Inserts, coupons
Posters, banners, signage
Books
Directories
Greeting cards
Magazines
Manuals
Newspapers/newsletters
Bills, statements
Checks
Sys-out
TransPromo
Flexible packaging
Folding cartons
Labels
Forms
Proofing
Security Print
Fine art
Photo merchandise
General Office
Consumer
Utility
Packaging
Transaction
Publishing
Promotional
78 © InfoTrends www.infotrends.com
Wide Format Printing in Commercial Print and Other Environments
$16B+ Wide
Format Graphics
Copy Shops
Comm’l Printers
Sign Shops
Repro Shops
Screen Printers
Photo Labs
Art Studios
In-Plants
79 © InfoTrends www.infotrends.com
Wide Format Requirements Mirror those of Production Digital Document Printing
80 © InfoTrends www.infotrends.com
Production Digital Printing in Industrial Applications
Printed electronics
RF
ID
Packaging
Fle
xogra
phy
Dig
ita
l
Folding carton Flexible packaging
Corr
ugate
d
Tic
ke
t,
Ta
g &
Label
Color
Decorative printing
Gla
ss
Metal Wood
Ceramics
Te
xtile
Material Science
Consumer
Production
Functional
printing
3D Printing
Deposition
Pro
sth
etics
Apparel
Arc
hitectu
re
Prototyping
Rapid
development
Small batch
manufacturing
Pro
duct
desig
n
Pla
stics
Resins
Paper
Mic
roe
lectr
on
ics
81 © InfoTrends www.infotrends.com
Top Graph Expo 2014 Exhibitors by Booth Size
2014 Rank Company 2013 Rank*
1 Canon USA 2
2 Konica Minolta Tie 3/4
3 Xerox 1
Tie 4/5 Ricoh Tie 7/8
Tie 4/5 EFI 9
6 HP Tie 5/6
7 Pitney Bowes 13
8 Standard Finishing Tie 7/8
9 Muller Martini 12
Tie 10/11/12 KBA 15
Tie 10/11/12 Xeikon 16
Tie 10/11/12 Kodak Did not exhibit
*2013 was not a Graph Expo (it was Print 2013)
82 © InfoTrends www.infotrends.com
All of these Trends Are Reflected on the Show Floor
• What’s driving this?
− Productivity
− Economics
− Just-in-time manufacturing
− Process improvement
− The move from mass production to mass communication
• Don’t overlook the digital document market adjacencies
Canon
KM Xerox
Ricoh St.
Fi.
PB
EFI HP
Muller
Martini
KBA
Xeikon Kodak
83 © InfoTrends www.infotrends.com © InfoTrends
The Emergence of New Workflow Platforms Graph Expo Presentation
Kaspar Roos Director September 29th, 2014
84 © InfoTrends www.infotrends.com
Key Macro Trends
• Print Industry Fundamentally Changing
• Mobile / Cloud adoption
• Optimizing Customer Experiences; it’s all about Engagement
85 © InfoTrends www.infotrends.com
Industry Structure Is Changing, Small PSPs Hit Hard
38.0%
53.4%
27.8%
35.4% 6.8%
6.4% 27.4%
4.9%
0%
20%
40%
60%
80%
100%
2007 2013
<$4M
$4M-$10M
$10M-$100M
$100M+
£15.1B £14.1B
British Printing Industry Revenue
Company Size
Source: PrintWeek, British Print Industry Federation (BPIF)
11,500
232
237
31
# of PSPs 9,500
187
275
38
# of PSPs
86 © InfoTrends www.infotrends.com
Industry Getting Divided Between Weak & Strong
Strong
Weak
Industry Structure
$5M
• High software spend • Acquirers • Looking for growth
• Low software spend • Acquisition targets • Focusing on cost
reduction
Companies with more than $5M in annual sales
Companies with less than $5M in annual sales
The top 2.5% of print companies generate nearly 80% of British print industry revenues
87 © InfoTrends www.infotrends.com
Implications
• Growth in production workflow software tapering off
− Addressable market shrinking
− High adoption of workflow software among “strong” PSPs
• Rising gap between strong and weak PSPs
− Weak companies will continue to exit the market
• Workflow vendors need to rethink their strategy
− PSPs operate in an increasingly convoluted world
− A significant portion of PSPs struggle to keep up
88 © InfoTrends www.infotrends.com
Key Macro Trends
• Print Industry Fundamentally Changing
• Mobile / Cloud adoption
• Optimizing Customer Experiences; it’s all about Engagement
89 © InfoTrends www.infotrends.com
45%
25%
9%
4%
17%
38%
26%
4%
20%
12%
0%
10%
20%
30%
40%
50%
TV Online Print Mobile Other
2009 2010 2011 2012 2013
Mobile: Drastic Change in Consumer Media Behavior
Rapid Rise in Mobile
Consumer Time Spent by Media, U.S.
Source: eMarketer, 2013
Over 33% of Global Web Traffic is Mobile
0%
20%
40%
60%
80%
100%
'09 '10 '11 '12 '13 '14
Desktop Mobile (incl. Tablet)
Source: statCounter, Sep. 2014
90 © InfoTrends www.infotrends.com
Rise in Digital Publishing
From “Simple” Digital Publications … …to Sales Enablement Tools
Airbus A350 XWB Magazine
91 © InfoTrends www.infotrends.com
Similar Transition in Transactional World
Statements, Invoices (B2C)
Mobile Apps on CRM platforms • HP Relate (Salesforce.com) • XpertDoc (Dynamics)
Document Generation, Claim Processing (B2B/B2C)
Offered by financial companies, insurance, brokerages, etc.
92 © InfoTrends www.infotrends.com
Plans to Migrate Documents Exclusively to Digital Format
0% 20% 40% 60%
Business cards
Labels
Signage
Packaging
POP materials
Brochures, collateral
Direct mail
Inserts, and coupons
Proposals, Contracts
Books
Financial, Legal
Magazines, Journals
Presentations
Forms
Catalogs
Training materials
Accounting, payroll
Investor publications
Statements, Invoices
Reports
Directories
Newsletters
Source: Understanding Vertical Markets, InfoTrends, 2012
N = 1,026 Enterprises (U.S.)
Communications
Publishing
Office
Promotional
Packaging
High
Low
Dig
ital
Mig
rati
on
93 © InfoTrends www.infotrends.com
Key Macro Trends
• Print Industry Fundamentally Changing
• Mobile / Cloud adoption
• Optimizing Customer Experiences; it’s all about Engagement
94 © InfoTrends www.infotrends.com
3%
15%
15%
18%
18%
18%
18%
21%
25%
42%
49%
0% 10% 20% 30% 40% 50% 60%
Don’t know
Other
Improve marketing strategy
Improve data management
Leverage customer data to improve relevancy
Manage customer delivery, payment preferences
Improve mobile access
Increase paper turnoff rates
Security & compliance
Reduce costs
Improve customer experience
Three Responses Permitted
Improving Customer Experience is Top Priority
Q: What are your organization’s top three priorities for the NEXT YEAR relative to critical communications?
N = 250 Business respondents in the U.S.
Source: 2014 Customer Communications Business Survey, InfoTrends, 2014
95 © InfoTrends www.infotrends.com
1%
2%
4%
8%
11%
11%
11%
12%
15%
16%
27%
28%
38%
47%
56%
0% 10% 20% 30% 40% 50% 60%
Other
Improve transactional document channels
Channel expansion
More Testing (A/B or multivariate)
Measure and improve channel effectiveness
Improve buying experience
Channel expansion - more digital
Market / geographical expansion
Better collection/analyzing of customers
Increase upsell/cross-sell
Improve ROMI
Better engagement with existing customers
Better engagement with prospects/leads
Create more brand awareness
Generate more leads
Marketers Also Focusing On Better Engagement
Q: What are your top three marketing priorities for 2014?
Source: North American Marketing Investment Outlook, InfoTrends, 2014
Multiple Responses Permitted
N = 525 U.S. Marketers
96 © InfoTrends www.infotrends.com
Enterprise IT Companies All Talk About Engagement
97 © InfoTrends www.infotrends.com
Customer Communications Segment Is Converging
Transactional Promotional
Digital
• CCM • ECM • Output Management
• CRM • WCM • ERP • DAM
• Marketing Automation • Campaign Management • Digital Marketing • Social Media Marketing • MRM
• Cross Media Marketing • Variable Data Printing
Convergence
98 © InfoTrends www.infotrends.com
Incredibly Condensed Playing Field
High Growth Lots of M&A
Low Growth
Low Growth
Solid Growth
99 © InfoTrends www.infotrends.com
Partnerships Emerging Everywhere
WCM / DAM
CRM
ERP
CCM
ECM Cross Media
Marketing Automation/
Campaign Mgmt
Many CCM with ECM vendors
CRM vendors with many Marketing Automation vendors
SAP- Opentext
SFDC & HP
ADAM - Opentext
Marketo & Mindfire
100 © InfoTrends www.infotrends.com
Implications
• Print becoming entangled with digital marketing
− Successful PSPs understand this
• Emergence of new workflow platforms
− Most PSPs need help to succeed in this new marketing & publishing world
• Vendors should develop/connect with new platforms to deliver more relevant products & services
101 © InfoTrends www.infotrends.com
Case Study of Gelato Group
UNICEF has never sold photo cards online before […]. "We set up and teach them how to think about AdWords and advertising in social media when selling photo cards" says Styrbjörn Holmberg, Product owner Gelato Air. "In order to secure a good growth as well as profit you must be able to manage significant complexity within the online marketing world - we help our partners with that. We have decided to support our partners with much more than just the online web store - we want to help them grow a meaningful business.“ "The alternatives we were looking at were offline and disconnected from the reality of our customers who want to order online and have gone mobile" Bjørnerud says […]
102 © InfoTrends www.infotrends.com
Heavy Mobile Focus
Customer Facing PSP Facing
103 © InfoTrends www.infotrends.com
Platform Approach Demonstrates Success
$0
$20
$40
$60
$80
'08 '09 '10 '11 '12 '13 '14 '15F
Million USD
Source: Gelato Group, including Optimal Print
Built on Partner Solutions
Very High Customer Ratings Exponential Revenue Growth
0%
50%
100%
'08 '09 '10 '11 '12 '13 '14 '15F
Web Mobile
Site Traffic Shifting to Mobile
104 © InfoTrends www.infotrends.com
What Should Workflow Vendors Do?
• Provide your customers with building blocks for success
− Allow them to easily create & deploy end-to-end workflows
− Tie in with digital marketing & digital publishing trends
− Mobile where possible, both front-end and back-end
• Create flexible licensing options for your customers
− Subscription revenues taking hold
− Helping smaller PSPs to become more competitive
• Position more aggressively against the digital marketing players
− Benefit of providing true “omni-channel” offering
105 © InfoTrends www.infotrends.com