fespa global summit blue print: innovation – the way forward

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FESPA Global Summit Blue Print: Innovation – the Way Forward 1 This FESPA Blueprint is the distillation of the key themes, discussions and presentations that came from the FESPA Global Summit on 25-26 March 2010 in Miami, Florida. The Summit successfully connected leading innovators from Europe and the USA. In addition, the event also benefited from delegates from outside of these two main regions including Hong Kong, New Zealand, Canada, India and Brazil. The purpose of the Summit was also to create a practical outcome. It was a gathering of leaders, brought together to discuss the challenges, problems and opportunities for our market. Its aim is to create a programme of action for attendees and the wider community. This ‘FESPA Blueprint’ attempts to outline the themes, discussions and presentations from the Summit. And it also outlines some of the ideas, agreements, models and behaviours deemed necessary for a successful, innovative print oriented business of the future. Using the broad themes of change, leadership and innovation – the FESPA Blueprint is an outline of ideas for success, by embracing and integrating innovation into printers’ businesses for the future. 1 Change The Summit agreed that significant macro and micro change has impacted our marketplace and that print production volume has been universally affected across the world. FESPA surveys with InfoTrends outline a dip of 15% to 20% in volume demand for print. The pressure this has placed on the market has resulted in many businesses closing and many businesses along the supply chain being bought or consolidated by others. This has also resulted in an even more intense focus on price and speed of production. That said, the market is most certainly in a more positive state than that of 12 months ago. According to the FESPA/InfoTrends Economy Survey 1 & 2, the marketplace has responded to this downturn by focusing on efficiencies. This has been a sensible short term reaction but is not sustainable, profitable, long term behaviour for any business. With a focus on efficiencies, the desire to take risk is muted. And risk is a vital component of innovation. Innovation and progress don’t exist without creativity and risk. Throughout 2009 we saw a focus on the reduction of price and on a focus on increased efficiency and the consequent reduction of decision making. This is defensive activity. Many print businesses were able to survive 2009 by running their businesses this way. However, as the market returns to a more positive state, this behaviour is not sustainable. The Summit also accepted that, despite a more positive economy, the market had not returned to its previous position. This ‘new normal’ is a more competitive environment. On the shop floor competition has intensified further and, consequently, there is a more intense focus on speed of production. Decisions on retail promotions are being made later and print shops are expected to respond to this fierce demand whilst charging less for an enhanced service. This is reinforced by findings from the World Wide Survey 3 report, a FESPA research project in partnership with InfoTrends. This altered landscape demands a more focused, higher performing and innovative business able to continually meet production demands and enhanced value for their customers. Wider change in consumer and marketing trends and how the buying population interfaces with information were also accepted and noted as another core motivator for change amongst the wide format community. The FESPA Global Summit tackled the need to use innovative technologies to produce conceptual marketing solutions for customers. Global Summit Blueprint

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This FESPA Blueprint is the distillation of the key themes, discussions and presentations that came from the FESPA Global Summit on 25-26 March 2010 in Miami, Florida. The Summit successfully connected leading innovators from Europe and the USA. In addition, the event also benefited from delegates from outside of these two main regions including Hong Kong, New Zealand, Canada, India and Brazil.

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Page 1: FESPA Global Summit Blue Print: Innovation – the Way Forward

FESPA Global Summit Blue Print:Innovation – the Way Forward

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This FESPA Blueprint is the distillation of thekey themes, discussions and presentationsthat came from the FESPA Global Summiton 25-26 March 2010 in Miami, Florida. TheSummit successfully connected leadinginnovators from Europe and the USA. Inaddition, the event also benefited fromdelegates from outside of these two mainregions including Hong Kong, New Zealand,Canada, India and Brazil.

The purpose of the Summit was also tocreate a practical outcome. It was a gatheringof leaders, brought together to discuss thechallenges, problems and opportunities forour market. Its aim is to create a programmeof action for attendees and the widercommunity.

This ‘FESPA Blueprint’ attempts to outline thethemes, discussions and presentations fromthe Summit. And it also outlines some of theideas, agreements, models and behavioursdeemed necessary for a successful, innovativeprint oriented business of the future.

Using the broad themes of change, leadershipand innovation – the FESPA Blueprint is anoutline of ideas for success, by embracingand integrating innovation into printers’businesses for the future.

1 ChangeThe Summit agreed that significant macro andmicro change has impacted our marketplaceand that print production volume has beenuniversally affected across the world. FESPAsurveys with InfoTrends outline a dip of 15%to 20% in volume demand for print. Thepressure this has placed on the market hasresulted in many businesses closing and manybusinesses along the supply chain beingbought or consolidated by others. This hasalso resulted in an even more intense focus onprice and speed of production.

That said, the market is most certainly in amore positive state than that of 12 monthsago. According to the FESPA/InfoTrendsEconomy Survey 1 & 2, the marketplace hasresponded to this downturn by focusing onefficiencies. This has been a sensible shortterm reaction but is not sustainable,profitable, long term behaviour for any

business. With a focus on efficiencies, thedesire to take risk is muted. And risk is a vitalcomponent of innovation.

Innovation and progress don’t exist withoutcreativity and risk. Throughout 2009 we sawa focus on the reduction of price and on afocus on increased efficiency and theconsequent reduction of decision making.This is defensive activity. Many printbusinesses were able to survive 2009 byrunning their businesses this way. However,as the market returns to a more positive state,this behaviour is not sustainable.

The Summit also accepted that, despite amore positive economy, the market had notreturned to its previous position. This ‘newnormal’ is a more competitive environment.On the shop floor competition has intensifiedfurther and, consequently, there is a moreintense focus on speed of production.Decisions on retail promotions are beingmade later and print shops are expected torespond to this fierce demand whilst chargingless for an enhanced service. This isreinforced by findings from the World WideSurvey 3 report, a FESPA research project inpartnership with InfoTrends.

This altered landscape demands a morefocused, higher performing and innovativebusiness able to continually meet productiondemands and enhanced value for theircustomers. Wider change in consumer andmarketing trends and how the buyingpopulation interfaces with information werealso accepted and noted as another coremotivator for change amongst the wideformat community. The FESPA GlobalSummit tackled the need to use innovativetechnologies to produce conceptualmarketing solutions for customers.

GlobalSummitBlueprint

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to out-perform developing economies withregards to innovation being the driver ofvalue, differentiation and growth. Competingon price is impossible.

1c) Consumer ChangeWith increased expectations, a more affluent,time poor, demanding, informed andempowered consumer expects products thatperfectly match their needs. The modernconsumer is more concerned about personalimage and demands that their products arepersonalised. They want to receive productsquickly, at the right price and to a highstandard. The advent of social media meansthat groups and individuals have the powerand motivation to make or break a newproduct. The brands that market to this newbreed of consumer recognise this change andare continually attempting to engage thecustomer with experiential, emotional stylemarketing that enlists the advocacy and loyaltyof the consumer. There is significantopportunity in any business that can help abrand to reach a customer by producingarresting, innovative marketing that generatesimpact, creates differentiation and deliversresults. The World Wide Survey researchprojects have charted increases in this regard(over a 2 year period when comparingresponses to questions around demand forpersonalisation, speed of production etc) of upto over 20% reinforcing that consumer demandis also driving digital inkjet innovation.

1d) Marketing ChangeSocial Media

Simon Burton and Alex Hunter talked aboutthe need for anyone in business to be ‘part ofthe conversation’ that is taking place online.The astronomical growth of social media as aparticipative forum for bloggers, networkers,opinion formers and activists has turned themedia world on its head. Traditionalbroadcast media is in decline.

Niche and ‘user generated’ communication iscoming to the fore. This style of mediaenables personalised consumption andparticipation and enables the user to generatevalue for free – this connection is bypassingtraditional media which is unable to compete.

The newspaper industry in the USA was heldup as an example of how this shift has led todecline in business further compounded bythe economic downturn.

the summit attendees regarded complementarytechnologies, such as social media, digitalsignage as well as other printing and signmaking technologies, as an opportunity tointegrate print into the wider, strategicmarketing objectives customers may have.Delegates did not see new marketingtechnologies as threats to print but accepted,for example with social media, that perhapsthey themselves were not exploiting thepromotional opportunity social media provides.In fact some delegates had successfullydeployed digital signage with their printedproducts to great effect through effectiveblending of technologies. QR Codes (which wasalso highlighted at the Summit) is also a newcomplementary technology that can integrateprint with new interactive technologiesdesigned to enhance communicationperformance in outdoor advertising.

1a) Market ForcesJeff Hayes, President of InfoTrends, in hispresentation, outlined that in the U.S, in atypical year, 1,000 print shops close down. In2009, more than 6,000 closed down due tothe economic downturn. He described theneed for operational refinement andinnovation as the most effective ways to moveahead in today’s wide format marketplace. AsDenise Gustavson commented, this isinevitably increasing the level of over-capacityin the market as the volume is yet to return tothe pre-recession position.

Jeff also asserted that a blend of technologies(print and IT) will be required to meet the newdemands of both production and sales andmarketing. The successful companies that areemerging from this economic downturn aregoing to be faster, leaner, more opportunisticand smarter. Jeff said that companies in thesign and display market have to re-evaluate;they are really integrated promotional servicesproviders, and as such they should invest inthe kind of IT systems that will enablecompetition in this new, “print-plus” world.

1b) Economic ChangeIn the opening session Summit delegateswere reminded that the economic balance ofpower is in the process of shifting from thewest to the east. China’s economic growthcontinues to affect economic and foreignpolicy. This relentless shift is unstoppable;however, according to economiccommentators, China isn’t necessarily anenvironment rich for innovation. Establishedmarketplaces have an opportunity to continue

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Denise Gustavson comments on social mediafor print businesses, ‘twitter and social mediaallows companies to extend their brand andinteract in real-time with customers andpotential customers. A presence both on theweb and in social media is required thesedays, because in many cases, this might bethe first impression a PSP is giving a newcustomer. Print buyers are looking at thesemediums increasingly to determine who theywill want to work with for upcomingcampaigns’.

The Change SummaryThe Summit’s closing remarks outlined theneed to recognise change and innovateaccordingly. The successful business isaware and has compensated for this changestrategically, using a positive approach tomoving the business forward via innovation.Leading the change and being at the forefrontis a proactive approach that enhances thelikelihood of business success. Reacting orresponding to change means that you don’tcontrol the future of your business. Change isin control of your business and this isdramatically reducing the likelihood ofsuccess.

2 LeadershipThe Summit was a gathering of leaders so itwas particularly relevant to outline theimportance of leadership. Innovation requirescommitment from the top. The leader sets thetone, environment, culture and creates thevision for the business.

However, the summit challenged thetraditional notion of leadership being one ofpower, hierarchy and dictatorship.

The modern leader isn’t necessarily a ‘largerthan life’ figure that assertively andinstinctively knows the right thing to do andmobilises workers to reach goals laid down byhim or her. The modern innovative businessbenefits from both a leadership team and aninnovation team. Even in a small business, aninnovation culture can be created. In manyrespects, it is easier to mobilise and motivatea smaller number of people around a sharedfuture vision of success.

In the ‘Change’ section of the event we sawhow consumers want information and how,as Alex Hunter described ‘Content is Queen’and ‘User is King’. The wider spectrum ofconsumption is now participation. This, itwas suggested, should also be prevalent in

successful, innovative businesses. From thelowliest administrator to the leader, everyonehas a voice and should be given the forum toair their views and ideas.

The organisations that innovative leaderscreate are flatter, more informal and inclusive– as opposed to autocratic, structured andhierarchical. This was seen as integral tosuccess in future oriented, innovative mediabusinesses of the future.

The hierarchical structure of informationconsumption has changed. And the hierarchytypified in modern, innovative businesses hasmoved also. The notion of an autocraticstructure with the ‘boss’ at the top making allof the important decisions and a reactive,subservient workforce executing demands isalso outdated.

The modern, innovative and less autocraticbusiness allows for autonomous action and ahigh level of trust amongst the employeesthat work for it. This is typified by manyleading online brands, where all employeesfeel part of the vision, are allowed andencouraged to grow and innovate in theirown sphere.

Denise Gustavson adds to this point byexplaining that in her experience, ‘speakingwith owners of many PSPs, they’ll alwayssay that their most valuable asset in theircompanies is their employees. And while thatis true, I’ve also found that the mostsuccessful shops are the ones who are ableto find employees that have complimentaryand strong skills but maybe don’t necessarilyfit the “traditional” mould. This gives them aunique perspective on the market and theirbusiness. If owners are able to harness theideas and innovation from their staff as awhole—combining traditional employees withnon-traditional employees—and find ways to“make it work” they can find themselves in ain a much better position with theircustomers and their business.’

As well as the right mix of people, thestructure has to be more flat. In this type oforganisation, team members communicatemore consistently and proactively and aculture of innovation is stimulated. Googlehas demonstrated an enlightened approachby allowing key workers to dedicate 20% oftheir working time to developing new ideas.Innovations as iGoogle and Gmail have comefrom this approach, proving that an

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empowered environment results in cool,applicable, practical innovation.Sophie Matthews-Paul expands on this point:‘It also is clear that people provide a majorkey to innovation and diversity. However,resistance from existing establishedcompanies has caused a chasm betweenyounger individuals who have a youthful andfresh attitude to all communications’channels and their older counterparts. A freshapproach is apparent with recently formedbusinesses, including those with no priorprint experience; these have an open book inhow they utilise their technology.’

The Summit didn’t suggest that being aninnovative business is easy. But a businessthat is likely to want to grow and remain atthe forefront of the marketplace mustembrace innovation at its very core. Andinnovation isn’t defined as purely investing ininnovative technology.

The leader has responsibility for defining theenvironment and ambition of the business.With the right people in place, an innovativeand successful business can be created.

3 Innovation –an organisational

commitmentTo be a leading innovative business demandsa commitment. The innovation doesn’t haveto be purely technological. In fact, innovationin printing should be more about how aleader creates the right fertile environment forinnovation. This requires a holistic approachand a strategic commitment in order for abusiness to position itself fully for innovation.

‘Innovation calls for a special type of creativity– team creativity’ says John Adair, inLeadership for Innovation.

But what does innovation mean? Nova = Latinfor ‘New’. For our businesses it is a new ideathat generates value. This may be profitablevalue created by a new idea or product thatenables efficiencies or differentiation, througha service or technology.

What do Google, Apple, Virgin, Nintendo,Starbucks, IKEA, Honda have in common?Apart from success, all of these businesseshave a strategic commitment to innovation.

They place innovation at the core of theirstrategy. They manage and have successfullymanaged change by innovating. They are also

seen as leaders in their respective fields. AsSteve Jobs says, ‘Innovation distinguishesbetween a leader and a follower’.

The Summit agreed that there has possiblybeen an over-reliance on technologicalinnovation. The market, in order to begin togrow once more, needs to innovate in allareas, not just by investing in the latestinnovative technology. This doesn’t reallymean you are an innovative business. Itmeans you have invested in innovativetechnology. And this is something that theprinter’s customer does not value. They wanttheir printed product cheaper and quicker,remember!

In the eight steps to innovation, we outline aprocess that will increase the likelihood ofsuccess for your innovation venture. Thisprocess can be used but will only succeedwhen the ‘innovation vision’ of theorganisation has been successfully created.

‘Soft innovation’ could work as well astechnological innovation!

Innovation doesn’t have to be purelytechnological innovation - it could also berelated to a process, service or a concept. Theessence of brands like Virgin is in experienceas opposed to technology. The print businesscan innovate through service differentiation,increased value of consultancy, thegeneration of valuable creative ideas and aninspiring customer experience.

Getting the right people on board

On the theme of recruitment, the Summit feltthat one benefit generated by the recession isthat all businesses are running lean and, asthe market recovers, there is an opportunityto pay particular focus on recruiting the rightpeople to do the right jobs in a recoveredmarket. This, it was felt, was worth spendingtime and effort in doing as the cost ofrecruiting the wrong people can have adevastating effect on a small business.

Over reliance ontechnology?

In a blog post on www.fespa2010.com –‘Don’t sell the plant list’! We tackled thecommon activity that print businessesundertake when trying to enlist new businessin ‘Don’t sell the plant list’! Printers tend to talktechnology to customers who are moreinterested in the output. Not only that, the

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If the wider print marketplace became more‘media savvy’, the likelihood is it will be rated asa higher value industry in the eyes of the brandsand agencies that are responsible for buyinglarge volumes of printed products. Print needsto achieve parity in the eyes of the customer, theagency, the print buyer and marketer.

Print companies need to develop relationshipswith customers on a strategic level. If thecustomer feels there is competitive advantageto be gained by working with a supplier thatprovides them with access to innovation, thisrelationship ceases to become transactionaland becomes a partnership. The printerbecomes an extension of the customer’sbusiness and is therefore more valuable.

ExperimentationThe Summit agreed that not all innovationneeded to be radical, disruptive innovation.The innovation could also be incremental andshould and could also be applied throughexperimentation. This is effective in that itenables the company to see the innovationwork and allows time for any ‘glitches’ or‘imperfections’ to be ‘ironed out’.

Recruiting Young TalentThe summit agreed that recruiting the rightpeople and keeping them was absolutelycritical to the chances of success. But the factthat print isn’t necessarily viewed as acontemporary medium, as it should be, alsoimpacts on the recruitment of young peopleinto the community. The fight for the bestpeople, it was felt, by the Summit issometimes lost to other areas of mediaincluding agencies, online, design, publishingetc. The Summit felt that as a marketplace weare not on the radar of universities’ curriculaand not taken seriously enough.

Again, Sophie Matthews-Paul agrees: ‘Thelack of awareness amongst school andcollege leavers doesn’t encourage a career inthe wide format sector. Yet computer skillsare in evidence throughout the youngergenerations and these capabilities arebecoming increasingly necessary as web-driven content is used throughout allcommercial and industrial environments aswell as for social and recreational purposes.’

The irony of our market being incrediblyvisually arresting and not being visuallyconnected to young people is contradictory andsomething Summit delegates felt this offered

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reliance on technological innovation has meantthat the development of creative, innovativemarketing concepts may have suffered.

Sophie Matthews-Paul agrees: ‘There is adefinite tendency for “older school” printservice providers to cling onto their existingbusiness models and show reluctance tochange or refresh either the work theyprovide or the way in which they promote it— or both. Enormous attention and effort areput into trying to win orders on price or turn-round but less emphasis seems to be givenon bringing something different to the party.’

This was agreed within the media panel,which featured some of the leading editorsand among the leading printers in theinnovation debate.

Although digital technology allows a raft ofinnovative applications, the major battles havebeen fought over price and process. Thetechnology has fought the battle and speed isstill the biggest concern amongst printerswhen purchasing new print technology. TheSummit agreed that as a marketplace/industrywe are too reliant on the technology and not onhow we develop our businesses by embracingtechnology. The relationship that print serviceproviders have with print technologymanufacturers was seen to be a very positiveone, and one that is vital for a print shop interms of continuing to produce product in linewith demands from the customer.

The summit also agreed that selling the ‘plantlist’ was no longer an effective approach tomarketing and communicating credentials tocustomers.

Behaving like a mediaand not

a trade!Selling a ‘plant list’ is not effective selling –historically printing has been regarded as a‘trade’. This has consequently shaped itsbehaviour with its customers and how itcommunicated. The Summit agreed, forexample, that ‘selling the plant list’ was noteffective selling. The fact that print is lookedupon as a ‘trade’ has led to the customer andsupplier relationship being one of ‘master’and ‘servant’. This, it was felt by the summitattendees, has to adapt in order for printproduction to be sustained as a viablemedium and in order to grow its share of the‘media pie’.

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an opportunity, with the new breed of digitallyled print businesses being more engaged withcurrent media, trends and fashion.

CommunicationPerformance

The Summit agreed that as a marketplace,community or industry, print is not a leader interms of communication. Print is moreprocess oriented and less about engaging andinspiring customers. The ‘transactional’approach is seen as a possible way toconduct business when times are good andorders are coming in but it is not sustainablein the ‘new normal’. A vital component of anyinnovative business is the ability tocommunicate these innovations. The mostinnovative business will not enjoy the samelevel of success if they fail to communicateeffectively. This weakness, it was seen, wasa core problem hampering print’s ability tocompete with other media which are moreeffective, proactive and consequently moreattractive. It has also allowed the existence ofprint management and broker companieswho provide a communication bridgebetween printers and printers’ customers.

In addition to highlighting the problem,Simon Burton, an independent marketingimpresario toured the Summit through anumber of options available to any business,for free, or at very little cost, on the Internet.The perception amongst us all is thatmarketing has to cost us a lot of money andinvestment. Burton’s presentation pointed tothe eventual demise in the need for agencies.With the increased availability of a number ofresources on the Internet, the individual isnow empowered to market himself withoutthe need for a expensive marketingconsultant or agency.

Simon Burton showcased all that waspossible with the Internet in terms of utilisingfree marketing tools available to anyone. Theshocking reality is that some print shops stillexist without feeling the need to have awebsite. Burton identified dozens of webtools that would facilitate marketing in adigital era – presenting PSPs with tips andideas for reaching wide format print buyers innew ways, many of which are free or verylow cost.

FocusBurton also discussed focus in his session.He highlighted the story behind the successof the Matthew Pinsent and Stephen

Redgrave partnership that dominated rowingfor a number of years. ‘Scarred after notwinning the European Championships, thepartners decided that they would not allowthemselves to be distracted from their coreaim of winning the Olympic Gold in Athens.They agreed that any training activity orprogramme related to their preparationswould be assessed against this maxim. Doesit make the boat go faster?

‘If it didn't make the boat go faster, they simplyrefused to do it. They won the gold medal.

But how often do we stray from our corevision and how often do we simply not writedown and agree what the aims and visions ofour businesses are? If we had a simple maxim,vision statement or goal that was agreed uponby the whole organisation – success wouldundoubtedly be increased as a result.

So, does it make our print shop faster?Leaner? More profitable? More innovative?Your goals are up to you to define and decide!

Blending TechnologiesWith the advent of the digital revolution andthe consequent convergence of technologies,processes and businesses – there is a trend toblending technology and processes. In fact, itwas suggested that the word ‘print’ may nolonger be an accurate way to describe abusiness within the ‘imaging’ sector. Researchindicates that the marketplace we inhabit isdescribing itself differently and fragmenting.

This was occurring anyway, but theeconomic crisis has increased the speed ofthis change. The downturn has forced manybusinesses to look to niches and the relativegrowth of wide format has enticed newentrepreneurs into the industry who describethemselves differently and serve differentniches – for example: photography, interiordesign, design, architecture, fine art. Thisfragmentation also means that technology isblended with other processes that would nothave normally been possible throughanalogue. For example a screen printer canvary between one of only three differenttypes: Graphic, Textile and Industrial.

The modern printing business may havemultiple processes that allow the business toprovide value for their customers. This mayalso be in-house design, marketing services,concept creation and build, direct mailing,smaller format print and web services. At the

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top end of the scale there is a move towardsintegrated marketing services or ‘one stopshops’, while at the smaller end of the scale,niches are fragmenting the landscape.

In the middle, we believe that there has beenthe most negative change with businessclosures and consolidation. These businessesare the most difficult types of businesses tosustain as their speciality is less clear, theirpricing less competitive and their future moreuncertain.

The Pro-SumerOpportunity

Undoubtedly, consumers are interfacing withwide format digital printing far more nowthan ever before. Their knowledge of thetechnology is increasing and in some cases,as with photography, they are activelyseeking this technology to add value toimages they have taken. This links in with themega-trend around consumption andpersonalisation. As wide format is nowcommonplace in interior design, retailers,manufacturers et al are successfullyexploiting the potential of digitalpersonalisation as a commercial revenuestream. This is an exciting trend and a digitalprint specialist would do well to leap ontothis by experimenting with how to createnew applications, then grasping theopportunity by going out and selling this toretailers. Michael Ryan in his presentationshowcased his successful approach to sellingdigital print for the construction industry.

Personalisation through software

The increase of demand for sophisticatedcommunications from the retail sector hasresulted in a heightened demand forpersonalisation, versioning andcustomisation. This affects point of saleprinting through versioning or variable dataprinting, shorter runs and faster turnaround.This means that the effective use oftechnology improves the power ofcommunication and the value in the eyes ofthe retailer. This also addresses the eventualimpact of digital signage and othercompetitive media which are able to quicklymessage and personalise to differentaudiences, different products, at differentpoints of the day.

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Sophie Matthews-Paul stated:‘Customisation, variable data and versioninghad been considered by remarkably few as avaluable and time saving tool in wide-formatdigital print on higher volumes where one ormore text or graphic elements needed to bechanged. The education on this facility hasbeen lacking and, in a round table I chairedlast year, an advertising agencyrepresentative present had absolutely no ideathat such a facility was possible in the displaysector. No-one had passed on thisinformation or determined whether there wasa viable interest in producing personalisedprint in our market sector. My own findingsand reports on variable data are finally beingtaken up, although my views are that this is afeature unique to digital print which shouldhave been addressed in the wide-formatsector several years ago.’

Print Management Kills Innovation!

In the breakout sessions the groupsdiscussed the strengths, weaknesses,opportunities and threats to our marketplace.Tim Greene of InfoTrends feeds back from hisparticular group session: ‘The session I wasin focused on the idea that it is critical toprotect margins in a business that has a lot ofcompetition, and the best way to do that isthrough continuously offering better serviceand services in spite of the downturn. Thepeople I was in session with seemed to thinkthat print buyers are both a blessing and acurse.. Print buyers offer business, yes; butthey also price-shop and can be verydemanding, which reduces profitability. Someof them also reported that overcapacity is abig problem – I don’t believe this – I thinkcompanies buy capacity to allow them tomeet the demand of their busiest times,which could be one to two days per week.’

Collaborate and Innovate!

Print management companies and printbrokers exist as they make life easier forcustomers who believe they get the bestpossible price for their print. At the Summitwe heard how some print businesses arecollaborating to counter the effect of printmanagement by, in essence, beating them attheir own game. Collaborating with otherprint businesses can enhance the value andpower of your business. Smart printersdevelop a network of like-minded businesspartners that complement their core productoffering, serve another type of market orextend their regional reach.

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The Summit heard from Christian Duyckaertsfrom Print and Display in Belgium of howcollaboration with other print businesses ispossible. POP Europe is designed to extendthe reach and the value of four businesses inthe UK, Belgium, Germany and Italy, makingit easier for customers to produce large crossborder campaigns and for the printer toprotect and extend their business.

Digital Textile PrintingThe Summit saw some great presentationson innovation in digital textile printingproduction. Clearly, this application has seensignificant growth over the past two to threeyears and has been led by the Europeanmarket. The benefits that digital textileproduction brings for customers are ease andrelative low cost of shipping and transfer, aflexible substrate that can be used to createbig impact environments that can be createdand built very quickly and changed andaltered at a lower cost than physical build orwith solid substrate graphic production.

Andreas Skantze of Big Image, whose HQ isin Sweden, delivered another inspiringpresentation as to how print can be producedto meet and exceed customer expectations.Big Image have been at the forefront of digitaltextile printing and have revolutionisedtheatre set design through innovative printingonto black utilising light effectively to createmulti-dimensional environments that take afraction of the set up time and allow forimpressive backdrops that require minimalinstall. They have since extended theirbusiness from this creative and innovativebase. Big Images’ work includes a 40,000 sqmetre concave print of Everest at Base Camp4 which was commissioned to commemoratethe first successful ascent of the highestmountain in the world.

The Summit agreed that digital textile printproduction is making inroads into many areasof digital print production, including softsignage, and has some compelling benefitsincluding its lightweight, flexible naturemaking it easy to move and install, and itssoftening texture helping to create a differenteffect and new and exciting results.

New Niches driven by New

ApplicationsWithout question the notion of the ‘long tail’(that the mainstream is now challenged by a

long tail of niches that serve a fragmented setof needs from more diverse consumer groups)mirrors the demand from the market forspecialist print to fulfil a specific need. Manyprint shops have responded to the pressureon volume by downsizing and looking atmore profitable niche applications. This hasresulted in success for some traditionalgraphic print production specialist companieswho were no longer able to sustain acommercially viable business by competingon volume and on price. The commoditisedvalue of print declines when a customer nolonger sees a price advantage with thesupplier he uses. In the presentation byMichael Ryan from Brilliant Graphics we sawhow ‘thinking out of the box’ could havedramatic results.

Michael had successfully used digital inkjettechnology to solve a technical problem for aconstruction brand that produces ceramictiles for the consumer marketplace. Byprinting the tile samples, Michael was able toprovide the client with a high quality samplethat was more lightweight, flexible and userfriendly in the confines of a sample book.

Being Planet Friendly - Environment

This mega-trend continues to be as importantto us despite the adverse effects of theeconomy. It may have temporarily suspendeditself in the pecking order, but its importanceremains intact. The emphasis on planetfriendly print production, certainly fromestablished economies, continues to progress.

Research taken from World Wide Survey 2comparing developing economies withestablished economies, shows that this isn’tentirely a global trend. For example,developing economies still favour solvent overmore environmentally responsible printproduction methods.

Denise Gustavson also added to thediscussion about the environment, ‘Accordingto a recent InfoTrends survey, print buyers(while are not prepared to pay anadditional/higher price) are looking for greensolutions – and some of it is because ofpersonal preference. It was interesting to seehow much personal preference was startingto play in terms of print purchase.’

Clearly this issue is having an impact onpersonal opinion as well as corporate agenda.

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technologies, the traditional description of abusiness will change from ‘screen printer’ or‘digital printer’ to ‘graphics solutions’. This isleading to convergence in the market asbusiness leaders invest in technologies thatenable them to build their business andprovide solutions for their customers thatexist beyond one single process.

Denise Gustavson also commented that, ‘in away, innovative PSP’s need to be “mediumagnostic”. They need to be able to be flexibleand work with their partners to provide a vastarray of marketing collateral – from wideformat display graphics and variable datapieces and small-format brochures and directmail pieces to integrated web and textcampaigns – to really broaden the reach/touchpoints of their customers and connect withthe target markets.’

The World Wide Survey 3 also highlights thatthe adoption of digital print technology hasfragmented. This is due to the fact that thetechnology is easier to use and apply inbusiness. Previously, organisations may haveoutsourced this print service simply becauseit required craftsman like skills to reproducethe necessary results through screen printing.In addition, print businesses are adoptingnew digital print processes to deliver a morecomplete service to customers who maywant to source all of their requirements fromone source as opposed to multiple sources.

Future TechnologyWith the continuing digital revolution in otherspheres of technology, such as social media,hand-held cellular technology and onlinetechnology, time at work and time at homeconsuming information through similartechnologies is growing exponentially. TheSummit enjoyed two key sessions thatdelivered insight into the future of the printedworld. The presentations included highlightsof sophisticated marketing techniquesutilising QR codes that enable marketingposters to talk directly with you via youriPhone. The Summit also heard about printsplace in a world of augmented reality wheretechnology and ‘real life’ interplay to providethe consumer with an enhanced, enrichedliving experiences.

QR CodesSudhir Ravi delivered a fascinatingpresentation into the marketing potential ofQR codes and print. Clearly, out of homemarketing will continue to evolve in terms of

Both Mike Horsten and Paul Lilienthalpresented sessions from Europe and the USon sustainability and how to minimise wasteand increase your carbon footprint. In termsof profitability there are businesses that areprospering. Nonetheless, the transition to asustainable model for some may be too big astep to take. But as the opening sessionoutlined – the notion of the minoritycampaigner ‘saving the planet’ has shiftedmainstream as leading retailers pledge carbonneutrality. Being able to produceenvironmentally sound product is going to bea necessity.

Tim Greene commented: ‘Paul Lilienthal gavea good talk about how his company PicturaGraphics has embraced sustainability andmade it one of the differentiators for hiscompany. Pictura was the first SGP-certifiedprinter in the US and Paul has been on theforefront of the SGP since its inception. Paul’smajor point on sustainability was that, whilesome of the “green” substrates andprocesses may cost more, Paul’s companyhas integrated sustainability, which has infact reduced many of the perceived additionalcosts associated with ‘going green’.

Sophie Matthews-Paul comments that in herexperience, price is still the determining factorwhen customers are buying print. So whilstsustainability is still very much a key factor inthe future of how consumers buy products, inthe short term, price is overriding anyconcern buyers have for the environment.

Print ConvergenceRegions, technologies and trends areconverging and this is taking place in printalso. In terms of printing processes, this is anopportunity for an innovative business personwho isn’t constrained by the process or theprevious heritage of their business. It wasmentioned that perhaps print would actuallycease to be a word that is used to describe acompany that has print technology deployedwithin it. Technologies used withinbusinesses continue to fragment and thenames used to describe these businesses arenow more varied than before.

As we noted in ‘blending technologies’,processes need to be combined to createprint for customers who are looking toconsolidate their suppliers and enhance theirefficiencies and printer would do well torecognise this change. With blending

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its sophistication and its ability to connectdirectly with the consumer. Tim Greene fromInfoTrends enthused about this presentation:‘Smart print really got me excited. I think oneof the missing factors in wide format printingis the lack of a measure on how effectivesignage really is. The talk on smart printsuggested that, through inexpensiveintegration of QR codes and othertechnologies, wide format printers could gaina bigger share of advertising budget and trulymove toward becoming a partner for adagencies and advertisers. In my opinion, thiswas one of the most powerful presentationsof the Summit because several of the printersthat I have spoken to subsequently wereplanning to go back and start working on asmart print strategy right away.’

But what is a QR code?Wikipedia defines a QR Code as: a matrixcode (or two-dimensional bar code) createdby Japanese corporation Denso-Wave in1994. Although initially used for trackingparts in vehicle manufacturing, QR Codes arenow used in a much broader context,including both commercial trackingapplications and convenience-orientedapplications aimed at mobile phone users(known as mobile tagging).

QR Codes storing addresses and URLs maynow have a number of applications, mostinterestingly for print in magazines, on signs,buses, business cards, or just about anyobject that users might need informationabout. This act of linking from physical worldobjects is known as a hardlink or physicalworld hyperlinks.

Users can also generate and print their ownQR Code for others to scan and use by visitingone of several free QR Code generating sites.The applications and uses are very interesting.For example with mobile/cellular phonetagging, a consumer can enter a shop and bewelcomed personally by in-store marketingtechnology that could communicate directlythe products that the person may beindividually interested in knowing about. Thiscould reduce the need for browsing for theshopper and could dramatically enhance thepower of an in-store marketing method. Anyprinter able to integrate this technology couldprovide their customers with a very clevertechnique for in-store retailers and brandslooking to increase the pull and performanceof their communications. Whilst this is anevolving technology, its implementation is

bound to happen at some stage and abusiness well placed to exploit this newtechnology will get the value from being thefirst to be able to do so.

Augmented Reality Wikipedia defines ‘augmented reality’ as a termfor a live direct or indirect view of a physicalreal-world environment whose elements areaugmented by virtual computer-generatedimagery. The technology functions byenhancing one’s current perception of reality.

Augmented reality research explores theapplication of computer-generated imagery inlive-video streams as a way to expand the real-world. Advanced research includes use of head-mounted displays and virtual retinal displays forvisualization purposes, and construction ofcontrolled environments containing any numberof sensors and actuators.

Roman Wiesphal of TrendOne presented anamazing glimpse of the future – one where printbecomes integrated with futuristic technologiesto augment the environments and theapplications that we interact with. This glimpseinto the future certainly had a place for print asboth a platform and as a tangible and semi-permanent feature from which augmented realitycan perform. For an example of how augmentedreality may look, check out this new applicationthat will be soon available for the iPhone.http://www.youtube.com/watch?v=U2uH-jrsSxs

The Wrap UpTim Greene concluded neatly: ‘The wrap-upsession identified the greatest strengths andweaknesses, opportunities and threats thatthe wide format printing industry faces.These were identified by the groups andprioritised by the consensus or comparing ofnotes among the groups. The opportunitiesranged from emerging applications (interiordécor) to expansion of the digital print valueproposition (variable data) all the waythrough to the attraction of new talent andadvanced marketing techniques. The conceptof cross media integration and digital assetmanagement platforms as dis-intermediatingfactors presents a kind of structural changethat will take time to create and explore, butworth developing.

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There are also very real threats, includingnon-printed signage and other advertisingmethods that have grabbed a greater share ofadvertising spend, such as web advertisingand digital signage. There are also a lot ofunknowns related to sustainability andregulation of the signage (especially outdoorsignage) market that has to play out – but tothe extent that it is possible, industryassociations have to help membership withthese issues, and have to help the print buyingpublic and government regulators understandthe reality of the issues being addressed; forexample, is digital signage more sustainablethan printed signage? Are signs and billboardsdrivers of economic activity?

There is a new and higher level of leadershiprequired to meet the challenges of the nextdecade – the people in the room generallyrecognise that times are changing and that tocompete in the market now they have to beevery bit as tough, opportunistic, and creativeas they ever have been, but now they mustuse the tools and technologies of today andof the future to develop innovative businessmodels and business practices.’

The Summit agreed that in order to continueto succeed, a modern print business mustrecognise change and lead their businessesby creating an innovative culture andcontinue to challenge their customers withinnovative solutions to their communicationproblems.

The future is exciting, but the future,undoubtedly demands innovation at every level.

Author: Marcus TimsonContributors: Tim Greene, SophieMatthews-Paul & Denise Gustavson.