e views - January 2009 - (Page 9)

The state of the economy From a near-term budgeting perspective, more than 50 percent of respondents indicated plans to purchase colour digital equipment over the next 12 months. Out of all commercial printers surveyed, almost 70 percent indicated that their strategic focus was on integrating vertical services, followed by moving offset jobs to digital (37 percent). These numbers clearly indicate that providers recognise the need to rely more heavily on advanced technologies and software to deliver more efficiently. Leveraging software-as-a-service solutions Graphic communications firms and outsourcing providers must expand their solutions portfolios and focus on client cost savings to ensure a sound ROI. ‘Solutions’ will sell better than ‘capabilities.’ By offering more immediate value to customers and absorbing costs through more efficient development and leveraging of software-as-a-service (SaaS), providers can build margins and offer a stronger value proposition. Smaller providers should also look to partnering or forming alliances with other service providers that are complementary to their business model, thereby ensuring they can respond to any larger opportunities that arise. SaaS is a model of software delivery in which the software company provides maintenance, daily technical operation, and support for the software they provide to their client. From the software provider’s perspective, a SaaS model frees the service provider (and corporate client) to do what it does best. Industry-wide, there is a significant emphasis on solutions in which the service provider can build out the right product and services portfolio, leveraging the high-quality and reasonably-priced SaaS solutions that are available. One benefit of SaaS is that upgrades and bug fixes to the base application are automatically updated in realtime for every user of the solution, as opposed to requiring users to apply software upgrades individually. Although only ten percent of all print service providers have a SaaS in place (as opposed to hosting on-premises), vendors are making investments to build a European data infrastructure. In addition, cloud computing is a general IT trend that may accelerate this shift. • Regular communication and interaction with employees, business partners, and customers to keep people focused and eliminate any misperceptions or industry speculation • Placing an emphasis on cost efficiency in terms of internal operations and ‘value proposition’ to customers • Continually providing responsive service and support as a means of keeping a customer satisfied and as a means for gathering information • Remaining flexible in terms of pricing, product configuration, and other aspects of getting a deal done • Positioning your company as a trusted brand and valued business partner that can be relied upon to get through this period. The bottom line More than ever, now is the time to assess investments in infrastructure to ensure profitable solutions delivery for a company and its clients. InfoTrends recommends the following strategies: Recessions expose inefficiencies and clarify what the market values most. Companies that are entering this recession in a weak position in terms of product line, market share, cost structure, or access to cash will suffer, and their management will need to consider strategic alternatives to maximise shareholder value and preserve longterm viability. There will be opportunities for companies to capture market share, acquire attractive assets at heavily discounted prices, and establish a strong position for robust growth when the economy eventually rebounds. For more information on InfoTrends European research and the state of the economy, visit www.infotrends.com Barb Pellow Group Director InfoTrends, Inc. barb_pellow@infotrends.com “Economic challenges are forcing enterprises to return to a sound economic review process for potential new investments.” 9 Issue 7 January 2009 e• views Journal, Xplor UK & Ireland Edition http://www.infotrends.com

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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