Where are we going?Paper Chain Forum

Eddy Hagen

VIGC – 5/11/2014

ideas.inspire.growth

VIGC

• Flemish Innovation Center for Graphic Communication• Not for profit organisation

• Originated from within the industry

• Located in Turnhout

• Known worldwide, e.g. Live Preflight Profiles

• Mission VIGC (short version): • Informing the printing industry as a whole

about and supporting with the implementation

of innovation and best practices.

• How do we do that?• Collective services, e.g. seminars

• Individual services, e.g. consulting

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Agenda

• Short version of a much broader seminar: ‘Where are we going? Figures, Trends and Strategy’• Standard seminar, next session: 4/12 (in

Dutch)

• In company possible (also in English), even

including time for extensive discussion

• This leads to interesting discussions and insight!

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Truths about Innovation

Gartner Hype Cycle

Every new technology knows these phases!

Truths about Innovation

• The perfect storm • Innovations will only succeed if all elements

are in place: the time needs to be right

• E.g. digital photography

• Good, cheap cameras

• Cheap memory, storage

• Everybody has a computer, with

internetconnection

• Printing of digital pictures

• Easy tools for assembling personalized photo books

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

Evolutions at Customers

Evolutions at Customers

• Publishing• Information consumption, reading culture is

changing

• Shift towards web / tablet / mobile / e-readers

• Young people

• Business models based on advertising are not

as easy as they used to be

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

Advertising budgets for print get smaller each year…

Yet: influence of printed ads is higher than sociale media

Stong decline in advertising revenue newspapers US: one man!

Evoluties bij Customers

• Commercial Printing (CP)• Large part of CP is related to marketing and

publicity

• What keeps marketers awake?

• Marketing = integrated approach

• ‘Functional’ print

• E.g. administrative documents, envelopes, …

• Can we replace it by something more efficient?

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

Need to measure respons, also from print!

Source: Adobe, DIGITAL DISTRESS: What Keeps Marketers Up at Night? (2013)

Where is the place of print in this landscape?

Technological Evolutions

Technological Evolutions

• When do technological evoluation make sense?• Efficiency gains (= cost)

• Shorter run lengths (= ‘micro jobs’)

• Getting attention (= ROI of marketing)

• Measuring response (= ROI of marketing)

• Generating added value (= answering a need

of customers)

• Stability & reliability

(= guaranteed production)

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

Everything evolves, also ‘old’ technologies

Inline controlesystems are a must: faster setup, smaller deviations

What does this mean for the logistics around the press?

Offset press anno 2014: 169 jobs in 24 hours… Offset vs digital…

Also in finishing short make ready

Flexo also for high quality jobs

Superfast job changes in flexo: minimum run length gets shorter…

Desktop label printing and converting…

These devices are placed in offices, competing with PSPs…

Short run lengths, to convince print buyers to buy more expensive print

Print can ‘seduce’ people: demand for better paper qualities

Many helpful, affordable ‘workflow’ tools outside the printing industry

Big data (good data mining) + ‘personalised’ folders = $$$$$

3D printing = ‘manufacturing’, other market than ‘printing’

Industrial printing: usually part of a much bigger production process

Figures

Figures

• Why do things happen the way they happen? What is the real reason?

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

What is this strong

growth (1981-1994)?

Be careful with figures: know the background!

Changes in buying behaviour are difficult to turn back…

Evolution ‘Other Graphic Papers’ top 2007 > 2013: -32%!

An Interessing Example

Changed label is solution to ‘missed sales’: added value! $$$

Conclusion

(and Strategy)

Conclusion

• The world is changing, fast…• Customers of the printing industry

• The printing industry itself

• Knowing what happens is essential, keeping

up-to-update is a very important task

• This is the added value of VIGC!

• E.g. weekly ‘Verplichte Lectuur’

• Influence of digitisation, intern is huge

• IT = key to succes!• Even of strategic importance!

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

Conclusion

• Print, printing companies do have a future!• On condition that companies take the right

approach…

• Strategic options for succes?• Come to our seminar!

© VIGC - 5/11/2014 Where are we going? (Paper Chain Forum)

Content

•Truths

•Customers

•Technology

•Figures

•Example

•Conclusions

Thanks! :-)

Titel seminarie

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