infotrends briefing at graph · pdf file... production printing the future is now: dealing...

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InfoTrends Briefing at Graph Expo

Jeff Hayes President September 29, 2014

2 © InfoTrends www.infotrends.com

Charlie Corr 1953 – 2014

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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


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


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)


$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


What does my client need?


I Need to Know What Time It Is


I Need to Reach and Engage with Customers and Prospects


Ad Verify

Email Mobile

Media Buy

Search

Web Site Social

Display Ads

Lead Scoring

Print

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


Product

Platform

Service


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


Product

Platform

Service


Average response rate for emails is 0.12%


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


The Future is Now: Dealing with Disruptive Technologies

Barb Pellow Group Director September 29, 2014


The “David and Goliath” Effect: The Underdog Has Better Tools!


Advancements will transform life, business, and the global economy

Beating Goliath with Disruptive Technologies


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


Mobile Wins!

“The trend has been that mobile is winning. It has now won.”

–Eric Schmidt, Google CEO


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


Mobile is a Bridge, Linking the Physical with the Digital


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


From Signage to Packaging


• 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


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!


What about Apple?


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


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


Tools for Getting in the Game


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


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


Tools Abound!

• Adobe Digital Publishing Suite

• GTxcel

• iMirus

• Inkling

• Quark Digital Publishing 2.0

• Xerox FreeFlow Digital Publisher

• … and more!


A Video/Audio App from a Printed Document Data Collection from a Printed Document

Apps in Action at FulminologyLLC


Glass SCAN!


$14 billion in 2014 to over $70 billion in 2024

Source: IDTechEx Wearable Technology Forecast 2014-2024

Wearables


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







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


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


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

http://www.bathsheba.com/artist/


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)


Businesses are Getting in the Game!


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!


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


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


“The most effective way to improve productivity is to eliminate work!”

–Bill Conway, Carlyle Group

Automation is Everything!


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 …


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


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.

http://www.pepperglobal.com


Recommendations & Conclusions


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

http://www.goodreads.com/author/show/1439.Malcolm_Gladwell

http://www.goodreads.com/author/show/1439.Malcolm_Gladwell

http://www.goodreads.com/work/quotes/21445709

http://www.goodreads.com/work/quotes/21445709


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


Pick Up Those Stones and Fight!


The Evolution of Digital Color Directions in the Production Market

Jim Hamilton Group Director September 29, 2014


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


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


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


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


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


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


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

?


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

?


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


B2-format Digital Color Systems Must Have…

• Multiple paper sources

• Connections to in-line finishing

• Automatic duplex


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


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


Wide Format Requirements Mirror those of Production Digital Document Printing


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


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)


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


The Emergence of New Workflow Platforms Graph Expo Presentation

Kaspar Roos Director September 29th, 2014


Key Macro Trends

• Print Industry Fundamentally Changing

• Mobile / Cloud adoption

• Optimizing Customer Experiences; it’s all about Engagement


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


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


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


Key Macro Trends





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


Rise in Digital Publishing

From “Simple” Digital Publications … …to Sales Enablement Tools

Airbus A350 XWB Magazine


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.


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


Key Macro Trends





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


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


Enterprise IT Companies All Talk About Engagement


Customer Communications Segment Is Converging

Transactional Promotional

Digital

Print

• 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


Incredibly Condensed Playing Field

High Growth Lots of M&A

Low Growth

Low Growth

Solid Growth


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


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


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 […]


Heavy Mobile Focus

Customer Facing PSP Facing


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


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