the us on demand market update: separating the flowers ... · 00000000 16 some advice tprint...

CAP Ventures, Inc. 600 Cordwainer Drive Norwell, MA 02061 Phone 781-871-9000 www.capv.com00000000 1

The US On Demand Market Update: Separating the flowers from the weeds

Charlie Corr

Group Director

00000000 2

Forecast OverviewProduction Copying & Digital Printing

ProductionProcess Color

ConvenienceCopier/Printers

Data Center/MIS Printing Systems

Print-on-DemandSystems

High-SpeedCopiers

Direct-to-Press

ProductionSpot-Color

Color

High-Speed

ColorBlack & White

Mid-Range

ProductionSpot-Color

Black & White Black & White

High-SpeedSegment 690+ cpm

Mid-Range Segment 570-89 cpm

ColorServers

00000000 3

U.S. Print On Demand Market

$26

$55

$117$129

$0

$20

$40

$60

$80

$100

$120

$140

2001 2006

Bill

ions

PODPrimary Industries

POD 16%CAGR

2% / Year

Retail Value of Print

00000000 4

U.S. Print On Demand MarketB&W CAGR = 22% Color CAGR = 14%

$17$32

$9

$22

0

16

31

47

62

2001 2006

$26 Billion

Color

B & W

$ Billions

Color

$55 Billion

B & W

Retail Value of Print

00000000 5

Some markets are blooming

Copier class B&W POD devicesFueled by Segment 5 & 6 Analog replacements

Production Digital Color 24+ ppmNew products, new price points, new opportunities

Direct to Press

00000000 6

Some markets are holding their own

Production class B&W POD devicesDocuTech and 9110

Convenience Digital Color Copier/PrintersCopier based devices, less than 24 ppm

00000000 7

Some markets are in decline

Analog Copiers

Data Center B&W

Spot Color

00000000 8

Certain Applications are Growing

Variable data and 1:1 Print programs

Fulfillment

Print On Demand

Distribute & Print

Books

Direct Mail

00000000 9

Certain Applications are Stable

Checks

Forms

Tech Manuals

Statements

00000000 10

Certain Applications are in Decline

Sys Out Reports

Analog copying

00000000 11

Expected Change in Print Spending in 2002

Increase34.5%

Stay the same48.0%

Decrease17.5%

Given trends in the economy and activities of your company, along with various electronic delivery initiatives your company may have (e.g. email, Web), over the next 12 months would you say your print spending will ...?

The Next Generation Digital Color On Demand Printing Opportunity

00000000 12

Net Anticipated Change in Print Spending

0.0%0%

2%

4%

6%

8%

10%

All Respondents

Net change in print spending

(35% indicated an average increase of 17%)

Minus

(18% indicated an average decrease of 23%)

00000000 13

Every Vertical Market had Winners and Losers

Best opportunitiesCompanies with more than 500 employeesCompanies that buy between $500,000 and $999,999 annuallyManufacturing and Health Care

00000000 14

Critical Trends

The combination of changing business requirements and technology improvements in POD price/performance will combine to drive pages towards digital technology

Shorter run lengthsJust In TimePersonalization/Customization Faster turnaround time

00000000 15

Critical Trends

The Production Color POD Market is set to take off

It will have a much greater impact on the printing industry than did B&W POD technology

It will transform the industry

Single largest inhibitor is retail price

00000000 16

Some advice

Print service providersDrop the price of production color to $.25Focus on process improvementsUnderstand what clients want and sell the values of digital printLook for customers who are growing

Equipment VendorsProvide honest cost data to the marketPromote the value of Print On Demand to end-usersFocus on open solutionsExtend substrate support and provide Pantone Matching on digitalcolor devices

00000000 17

Some advice

Paper CompaniesDevelop more substrates for digital equipmentForget the past, the digital color opportunity is just unfoldingPrice for market development

Solution ProvidersDevelop metrics to facilitate market knowledgeAdopt open standardsClearly illustrate benefits and value proposition


Integrated Production Workflow Solutions: “Killer Apps” for an Industry in Transition

Holly MuscolinoAssociate Director

April 24, 2002

00000000 2

The Three Stages of Killer App Design

Redefine The

Interior

Source: Downes, Larry and Chunka Mui, Unleashing the Killer App, Harvard Business School Press, 1998.

00000000 3

Business Process

Requirements

Delivery to Recipient

Why Software Solutions and Services?Changing Roles for the Service Provider

DesignCreation

Prepress

Press

Finish

FulfillmentFull Business

Communication Service Provider

Database Management

Document Management

Variable Data Printing

Document Repository

Electronic DistributionData Mining

Distribute & PrintKitting

00000000 4

Fewer Printers Provide Broader Range of Products & Services

CreationDesign

PressPrepress

Press

FulfillmentFinish

Design

PressFulfillmentFinishPressPressPrepress

2000

2010

Design

Creation

Prepress PressFinish

Fulfillment

00000000 5

ConceptDefine project

Determine project team, schedule, budgetGain approvals

PreparationLayout

Proofing

CreationEditorialDesign

Photography/ScanningIllustration

Digital Asset ManagementDocument management

Order ManagementBidding

Supplier SelectionOrder Processing

PrintingPreflightPrepressImpositionProofing

RevisionsImaging

FinishingTrimming, Folding,

Collating, Drilling, BindingMounting

LaminatingShrink-wrapping

Shipping to Client

Warehousing/Archiving

Inventory ManagementArchiving Tools

Reorders

BusinessDocumentLifecycle

Fulfillment/Distribution

Mailing ListsLabels

Pick and PackShipping

Obsolescence

The Process

00000000 6

Printing Costs: The Tip of Iceberg . . .

CAPV Cost of Business Communications 2001

+16% Obsolescence+16% Obsolescence

00000000 7

The Interfaces

Production Processes

CustomersReal-Time CommunicationSuppliers

Business Processes

00000000 8

Production Workflow Solutions

00000000 9

U.S. Document Outsourcing Forecast by Environment ($ Millions)

$6,170$2,507

$19,167

$6,787$2,683

$20,509

$7,670

$2,898

$22,354

$8,897

$3,187

$25,037

$10,587

$3,570

$28,542

$12,955

$4,087

$32,963

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2000 2001 2002 2003 2004 2005

Facilities Management Statement Printing Contract Printing

12% CAGR

00000000 103

$6.10

$2.50

$12.90

$4.10

$-

$5

$10

$15

Facilities Management Statement Printing Contracted Print Services

20002005

16%CAGR

10%CAGR

11%CAGR

The Document Outsourcing Market ($ Billions)

$35$32.90

$30

$25

$19.20$20

00000000 11

Key TrendsGrowing focus on process innovation and workflow efficiency

Wider acceptance & growth of outsourcing

Continued growth of non-print services

Changes in end user requirements & processes

Rapidly growing role of the Internet & e-business

New digital technology and growth of print-on-demand

Redefine The

Interior


Thank You!

Holly [email protected]

mailto:[email protected]

CAP Ventures, Inc. ▼▼▼▼ 600 Cordwainer Drive ▼▼▼▼ Norwell, MA 02061 ▼▼▼▼ Phone 781-871-9000 ▼▼▼▼ www.capv.com00000000 1 100000290

CAP Ventures OnDemand Breakfast

CAP Ventures, Inc.. ● 600 Cordwainer Drive ● Norwell, MA 02061 Phone 781 871 9000 ● Fax 781 871 3861 ● http://www.capv.com

Getting to the Root of Your Content

Strategy

Michael Maziarka

00000000 2 Copyright 2002, CAP Ventures, Inc.

Why is a Content Strategy Necessary?

▼ A Dramatic Change Underway in How We Communicate:➤ The Internet, Extranets, & Intranets➤ Print & Discard➤ Mobile Devices

▼ Proliferating Sources of Information & Contributors

▼ One to One Communication

▼ Geographically Dispersed Teams

▼ Competitive Mandates to Increase the Speed of Decision Making


Business Drivers for a Content Strategy

N=33

12.1%

54.5%

60.6%

63.6%

66.7%

66.7%

69.7%

0% 20% 40% 60% 80% 100%

Other

Customer RelationshipManagement

Support a technology architecturefor eBusiness

Establish a secure repository forbusiness content

Support external marketing andcommunications

Automate content-focused businessprocesses

Knowledge Management andCollaboration

Which Business Needs are the Motivation for Developing a Content Strategy?

CAP Ventures, Dynamic Content Software Strategies Research, Dec 2001


Considerations for a Content Strategy

▼ How is Information Created and Managed?

▼ How is Information Obtained and Aggregated?

▼ How is Information Exchanged and Distributed?

▼ How will Knowledge Workers Collaborate?

▼ How will Users Interpret and Place Value on Information?

▼ How will Users Make Decisions Based on Information?


Fundamental ROI Expectations

Critical

2.1

2.2

2.3

2.5

3.0

3.1

3.1

3.1

3.4

1 2 3 4

Ability to reduce or redeploy staff

Incremental revenue

Ability to address legal/liability issues

Improved innovation

Improved quality

Cost savings

Shorter business process cycles

Improved customer service

Productivity gains

N = 45 companies with content initiatives

Not important at all Critical

2.1

2.2

2.3

2.5

3.0

3.1

3.1

3.1

3.4

1 2 3 4

Ability to reduce or redeploy staff

Incremental revenue

Ability to address legal/liability issues

Improved innovation

Improved quality

Cost savings

Shorter business process cycles

Improved customer service

Productivity gains

N = 45 companies with content initiatives

Not important at all


How Important are Various Business Considerations When Assessing Content Projects?


The Need for a Content Infrastructure

▼ Information anytime, anywhere: Multi-channel delivery

▼ Knowledge management: Collaboration

▼ Capturing attention: Rich-media

▼ Customer Service: Personalization

▼ Global markets: Localization

▼ Time-to-market: Productivity and efficiency


Corporate Expectations for Vendors


Which are the Most Important Elements that a ContentSolution Vendor Should Demonstrate?

32.0%5.9%

34.6%23.5%

53.9%76.4%

76.0%64.7%

80.0%58.8%

84.0%53.0%

84.6%82.3%

88.0%52.9%

92.3%88.2%

92.3%64.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Business problem understanding

Solving specific requirements

Ability to demonstrate ROI

Overall stability

Technology vision

References and case studies

Technical support

Evaluation software

Market share

Geographic presence

N = 17 small companies (<1,000) 26 large companies (>1,000)


Summary▼ Industry is Undergoing a Dramatic and Profound Shift in How We

Communicate:➤ Improved Business Processes➤ Methods of Communication➤ Computing Infrastructures

▼ Information Creation and Delivery Processes Need to Span Media: Print, Web, Mobile, etc.

▼ Driving Need for a Content Infrastructure to Support:➤ Business Goals➤ Information Contributors & Users

▼ Content Solution Vendors Need to:➤ Understand Business Problem➤ Meet Technical Requirements➤ Show a Return on Investment


Michael Maziarka

[email protected]

the us on demand market update: separating the flowers ... · 00000000 16 some advice tprint...

Documents