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The new business of printing
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“The New Business of Printing is all about capturing
fast-rising revenue streams and
increasing volume.
It is driven by a new breed of business
leaders and communications
professionals, who are using
new tools to make more
money.”
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Agenda Culture and Operating strategy ABB Mission and Vision ABB The 21th century: Knowledge sharing Market trends Critical Success factors of the systems and the workflow Current workflow Outsourced Documents The Xerox Solution Proposed workflow Benefits Financials Financial payback Next steps
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ABB Inc
Culture technology leadership, the pioneering spirit and the ability to be at home everywhere. Responsibility, respect, determination Corporate governance
Strategy striving for organic profitable growth. ensuring consistent top-quality products and systems – made in ABB – for customers around the world. delivering ABB’s customers broad and easy access to ABB’s offerings (client intimacy; internet).
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ABB Inc
Mission 2007: As one of the world’s leading engineering companies, ABB helps customers to use electrical power effectively and to increase industrial productivity in a sustainable way.
Vision 2007: ABB delivers attractive profitable growth by providing leading power and automation technologies to customers throughout the world. ABB helps them to improve their performance and productivity as well as to save energy and lower environmental impact.
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21th Century Knowledge sharing
Competition
Distinction
“Helping people find better ways to do great work”
Challenges for more profit and reduce costs.
Innovation, efficiency and success
Client IntimacyClient Intimacy
Operational ExcellenceOperational Excellence
Product LeadershipProduct LeadershipImprovement and
Innovation of products and services
GlobalisationGlobalisationDistance, more languages and cultures
Internet changes buyers attitude
The best processes and cost effectiveness
Return on Assets- financial performance
- less stock
Market Share- new clients
- more revenue per client
- accountmanagement
Client Satisfaction
Market trends …
14%
Source: CAPV
Print on DemandPrint on Demand
In 2006
Jearly growth in POD compared to the total market
JobsJobs
Source: Strategies for Management Commercial Print 2010
78%
Today
Of 4-colour jobs are less than 5,000
Variable contentVariable content
In 2007
60%
Source: Interquest
Of all digital colour jobs are
personalised and personified
DeliveryDelivery
Source: Frank Romano, RIT
In 2007
33%Of all jobs have a
delivery time of less than 24 hours
Vision in Digital Printing
Digital printing is complementary to offset Digital Production is not only printing
Workflow is Key
For each
$ 1 spent on one print…
Process Data
Design Compose RIP Finish Fulfill Distribute TrackResponse
Repository Print
$ 6 is spent on content and fulfillment!
Source: Rochester Institute of Technology
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Critical Success Factors ABB Calgary Printing on Demand Deadlines for proposals with high revenue impact Last minute finishing/changes Production printing path Make ready capability, scanning, imposing and merging documents Managing the process Services on the web Return on assets; financial performance, offset stock and printing on demand Market Share; new clients and revenue per client Customer satisfaction; excellent colour quality of the documents Product technological leadership; products and services; clean sheet design
and future technology Operational Excellence; processes and costs Globalization; distance to Switzerland, Benelux, Montreal and USA, different
cultures and languages
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Current workflow470 ST
470 ST
DC 3535
ABB employees
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Outsourced documents
ABB Review (offset printed in Austria, Europe)
ABB Group Sustainability Report (offset printed in Zurich, Europe)
ABB SupportLine (off set printed in USA)
Serving the Global LNG Industry (offset printed in Oslo, Europe)
Parts and Repair Lifecycle Services (offset printed in USA)
ABB University Training Services (offset printed in USA)
ABB Manuals (offset printed in USA)
ABB main Catalogue (offset printed in Canada)
ABB Annual report (offset printed in Zurich, Europe)
The Xerox Solution
The right business model
The right technology
The right workflow
The Right Business Model
Justification
ExecutiveWorkflow Analysis
Productivity Technology
Marjan Kwint/Perry Bank
Implementation
XGS Service Development
XGS Management Services1:1 advice in
FreeFlowTraining in new
Technology and Graphic Design
Growth
OperationsBusiness
DevelopmentXGS: Global ServicesMarketing Applications
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Proposed workflow
ABB Calgary
Xerox Global Services
Printing on Demand site
FreeFlow Web Services
ABB Ontario ABB British ColumbiaABB CalgaryABB Customers
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The Right Technology
XMPie® is a leader in solutions for cross-media dynamic publishing. The XMPie PersonalEffect™ software platform enables enterprises and their marketing service providers to develop and execute highly customized, information-driven, campaigns for print, email, Web on Demand, and wireless media. PersonalEffect’s three integrated applications—uPlan™, uCreate™, and uProduce™— flow together in an elegant workflow process. With PersonalEffect you can effortlessly blend creative concepts with database information to create full-color, fully personalized direct and interactive marketing campaigns and Web to print applications—much faster, at a lower cost, and with the utmost flexibility in creative design, data connectivity, and media selection.
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Benefits for ABB Canada Improvement of Technology & Workflow will increase both client and employee satisfaction
Improvement of Product leadership with Web Services
Improvement of Operational Excellence by:
using the best processes (technology, workflow and centralization of high volume colour)
reducing time required to generate colour and black & white reports for customers from 2 days 2 days to only 10 minutes – a 95% reduction
improving the production printing path
churning from off set to Digital in house On Demand Printing
less stock
no offset from Switzerland or USA; National (Canada) centralized digital printing on demand=
COST SAVINGS
Improve both Return on Assets and Market Share by:
limiting capital expenditures & improving the operating efficiency of those assets already in place
(Managed Services XGS)
decreasing manual operations with 95% driving operational and manual costs to new industry
levels.
Financials
Cost Group Costs (Estimated) per year
People $ 120,000.00
Process $ 50,000.00
Technology $ 50,460.00
Total $220,460.00
Technology Group Costs (Estimated) per year
470 ST $ 19,548.00
470 ST $ 19,548.00
Docucolor 3535 $ 13,064.00
Total $ 50,460.00
Future Costs: $ 127,845.00
The Xerox Solution
The right business model
The right technology
The right workflow
Next steps
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Examples of the New Business of Printing:
One to One Marketing
Plus 44%
Plus 45%
Plus135%
Plus500%
Bron: Romano & Broudy
ABB: Response To Mailings
3 4
1 25
Example Mail piece 5000 B/W
Development $ 3000 Printing
700 Paper
1000 Enveloppe
500 Fullfilment
1900 Porto
3900 Total
11000 Per mail piece
2,20 Response 2.5%
125
Price/response $ 88
Mail piece new
$ 6000 3500
100050019003900
Total 16800 Per mail piece 3,36 Response 12,5% 625
Price/response $ 26,88
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Financial Payback for ABB 1:1 Marketing Monthly Pay Back, For example: 300,000 prints per month for mail pieces (golf tournaments, skate events, automation world, marketing campaigns, etc) 300,000/5,000 = 60 60 x $ 61.12 = $ 3,667 more revenue per month* $ 44,006.00 revenue growth per year $ 66,006.00 revenue growth in 18 months
* $61.12 = $88 per mail piece - $ 26.88 per mail piece
Thank you !
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