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Internet-enabled strategic sourcing Successful graphic communication service providers are focused on leveraging the Internet in an effort to become strategic sourcing partners with their clients. They are positioning themselves as trusted outside providers that can costeffectively and efficiently manage document processes, while offering new technologies to make overall service levels more robust. In difficult economic times, corporations will seek partners that can cost-effectively take over non-core processes like print production, document management, warehousing, kitting, and fulfilment (print and electronic). Successful service providers have created a Web-to-print infrastructure to manage these processes. • • • • • Pharmaceuticals Healthcare and medical services Utilities and energy (particularly alternative sources) Environmental services Education In terms of specific companies within an industry, it is important to consider the fundamental strength of the firm. Regardless of industry, companies with any of the following attributes will likely be the most impacted by any economic contraction: • • • • • • Limited cash/access to credit/weak balance sheet Small market share High fixed costs Concentrated customer base in weak industries and/or regions No recurring/locked-in revenue stream Customer base and/or products dependent on financing or disposable income Multi-channel communications with demonstrable ROI Typically, one of the first line items cut in difficult times is the marketing budget…unless, of course, the programmes are delivering a clear ROI. According to research from various Direct Marketing Associations across Europe, the most common approach to measuring the success of a campaign is seeking an increase in short-term sales or customer inquiries. In difficult economic times, marketers need to rationalise their spending. In addition to having a measurable ROI-driven programme, having the right customer dialogue and using the right channels are essential. In stepping up direct marketing activities, marketers are turning to multi-channel communications to garner more consumer attention, blending mail with e-mail, the Web, and mobile communications. Successful graphic communications service providers realise that in addition to delivering ROI-driven printed communications, they must participate in lower-cost Internet message delivery. Figure 2: Direct marketing channels used InfoTrends anticipates that the following types of companies will be affected more strongly by an economic downturn: • Medium-sized and large enterprise customers in select industries (see above categories) • Start-ups without an established customer base • Cash-strapped retailers and resellers • Print service providers tied to traditional methods Lean manufacturing and automation As run lengths get shorter and margin pressures increase, graphic communications service providers are increasingly focusing on lean manufacturing and automation, beginning with customer-driven Internet orders and extending through fulfilment. Service providers are implementing operational strategies that provide a new dimension to competing. They are quickly introducing new, customised, high-quality products and delivering them with short lead times and unprecedented turnaround times, making swift decisions about appropriate production technology. In a recent study entitled The Future of Commercial Printing in the United States, InfoTrends found that the top two categories for annual investment plans were digital printing technology (33 percent) and software tools (19 percent). Figure 3: In describing your company’s annual investment plans for the coming year, how do you expect the spending to be split? An emphasis on print products (B2B or B2C) While not totally recession-proof, some firms have experienced success by focusing on print products that can be made to order via Web-based interface and delivered to the end customer. For example, Amsterdam, Netherlands-based Albumprinter offers personalised photo books to consumers online. The company was founded in 2003, grew from two to 130 people in four years’ time, and realised a turnover of €15 million in 2007. Even in the most difficult economic times, people still share memories with specialty photo items. A focus on somewhat recession-proof markets As the economy reaches record-breaking levels of volatility, determining which markets are recession-proof is not necessarily easy. Nevertheless, history demonstrates that certain markets and industries perform better than others during trying times. Examples of somewhat recession-proof markets include: 8 e• views Journal, Xplor UK & Ireland Edition Issue 7 January 2009

Table of Contents Feed for the Digital Edition of e views - January 2009

e views - January 2009 Contents Technology Management Creating a Print Intelligent Enterprise The Future of Broadband Connectivity: @ 320 kph? TPE Master Class Cover Story TransPromo and the Credit Crunch Xplor Europe News Service Directory

e views - January 2009

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