Freeman, Kent

Morning Keynote

Kent Freeman, CTO/COOIngram Digital Group

Copyright 2008 Ingram Industries, Inc.Copyright 2008 Ingram Industries, Inc.

About Ingram

• One of the largest privately-owned companies in the USthe US

• Ingram Barge Company Transportation• Ingram Barge Company – Transportation• Ingram Lightning Group– Book wholesale, distribution

and Print on Demand • Ingram Digital - e-Content storage, management and

distribution


Some Key Historical Milestones

1857 Orrin Ingram starts up his own lumber company

1880’s

1930’s

Orrin becomes an investor in Weyerhaeuser Timber Company

Hank Ingram diversifies into Oil and Barge

1964

1978

Ingram acquires Tennessee Book Company

Bronson Ingram and his brother divide the companies

1979

1982

Ingram Book installs IBM mainframe, delivers microfiche catalog

Ingram Book launches Ingram Video and Ingram Software

1986

1986 – 1989

Ingram Distribution begins move to LaVergne, TN

Ingram acquires companies to form Ingram Micro


Some Key Historical Milestones

1995 Bronson Ingram passes away

1996

1997

Ingram Micro IPO

Ingram Entertainment splits off from Ingram Industries

1998

1998

Barnes & Noble announces intent to acquire Ingram Book

Ingram launches print on demand – Lightning Print

1999

1999

Ingram and Barnes & Noble withdraw request to FTC

Ingram Book launches significant B2B legacy systems integration

2000

2006- 2008

Lightning Print changes name and launches ebook fulfillment

Ingram creates Ingram Digital, grows organically and via acquisition


Ingram Content CompaniesInteresting Book on Nashville’s Business History

Available only at Davis-Kidd Booksellers


The Power of Print-on-Demand

50 million books printedpCurrently 1.2m books per monthAverage print run 1.8Operations in USAOperations in USA and EuropeRepository of 1m titles Paperback, hardback colorhardback, colorPlans for global rollout

An integrated approach to content d di ib imanagement and distribution

• Printing 1 4m books per • 18 000 publishers • 185 000 online titlesPrinting 1.4m books per month• Average print run 1.8• 1m titles • 8 000+ publishing partners

18,000 publishers• 30,000 customers • 1.5m titles in stock• 5.4m title records• Over 100m books shipped

185,000 online titles• 7,000 audio files• 200,000 downloadable e-books• Over 1 000 library8,000+ publishing partners• Paperback, hardback,

color

Over 100m books shipped per year

Over 1,000 library customers• 50,000 titles in asset management system

Changing Marketplace

• Retailers ramp up e-commerce operations

• Web 2.0 introduces new ways to drive content discovery -and sales - online

• Libraries worldwide looking to expand without expanding physical footprint

Large print market• Large print market

• Long-tail opportunities

• Worldwide opportunity


An “Either/And” World

• Print and “e”Print and e•Press run and print-on-demand•Individual sales and chapters and subscriptionsand subscriptions

• Print + online e-books + downloadable e-books + audiobooks+ mobile enabled files…


New Marketplace Dynamics

• Consumer increasingly in lcontrol

• Audience fragmentationg

• “iTunes” pricing model becoming the normbecoming the norm

• Sales no longer concentrated


Which Road to Take?

Why not all of them?• Print• Digitized Files

• Print on demand• Downloadable e-book

• Full book or chapters• Multiple formats• Mobile devices

• Online Subscription• Collection• Stand alone• Stand alone

• With print on demand option reach more than 30,000 customers through Ingram Book Group sales channels


Ingram Digital Organization

• Retail Solutions• Tools to market, promote, sell and deliver digital content

through online retailers and booksellers

• Content SolutionsDi it l h t t f ti d di t ib ti• Digital warehouse storage, transformation and distribution services

• Institutional Solutions• Online e book and audio services for libraries• Online e-book and audio services for libraries

• Education Solutions• Portable interactive digital textbooks for students and

educators


Retail SolutionsRetail Solutions


Retail Capabilities

• Transparent eBook distribution to retailers (MBS, Fictionwise Powell’s )Fictionwise, Powell s …)

• Delivery to mobile devices• Phones

• iPhones, WinMobile, Android and Palm

• E-Ink readers• Sony Reader, iRex

• eBook and digital audio fulfillment from publisher Web sites

• Search and Discover• Search and Discover• Widgets


Retail Channels

A Book Company, LLC eChapterOne, LLC

At A Glance Bookstore

Books on Board

Fictionwise, Inc. / eReader.com

Interead Ltd

Cokesbury

Computer Manuals Ltd

Landmark Ltd

Lybrary.com

Content Realtime

Diesel eBooks

MBS Books

MINDREIGN

Digital Pulp

eBook Mall

PayLoadz, Inc

Powell's Books


e-Book FulfillmentWeb services approachFlexible, seamless integrationFlexible, seamless integration


MOBILE DEVICESMOBILE DEVICES

Cart and Card

Branded solutiona ded so ut oSeamless cartTax collectionInternational support


CoreSourceCoreSource Digital Asset Distribution

March 2009


What is CoreSource?

• CoreSource is a hosted technology platform that provides archive and distribution services for digital content files and metadata forand distribution services for digital content files and metadata for publishers

• The system is SaaS (Software as a Service), leveraging Ingram’s IT i f t tinfrastructure

• Data center located at Ingram’s headquarters in La Vergne, TN USA

• Software architecture based on custom-developed ingestion, transformation, and distribution modules plugged into the Artesia DAM system

• Configured with SAN-based storage including 400 TB working space


Increased opportunities…


…present logistical challenges


Manage, Repurpose, and DeliverAny 3rd

Party Vendor

ID Publisher Portal

Printers

Aggregators

•Validate exportrequests

• Prepare/customizecontent for vendor specific transfer

• Export content

• Publisher Sign‐in

• Authenticate user/role

• Determine permissions d i il f

ID Publisher Portal

Search

• Export contentand metadata

• Report on actionsperformed

and privileges of user

• Record export requests

Audio and eBook

Distributors


e-Books have arrived … the sequelq• Amazon sold ~ 240,000 Kindles in 2008*

• Kindle announced in UK in September 2008Kindle announced in UK in September 2008• 30,000 sold by year end, along with 75,000 books

• Sony has sold ~ 300,000 readers since 2006

• Apple anticipates over 21 million iPhone/iPod Touch units to be sold in 2009• Over 800 million apps have been downloaded to date

• Over half a million downloads of the eReader app alone

• Book publishers starting to build content-rich apps through ScrollMotionand other development companies

* source techcrunch

CoreSource Services

• Digital Asset Distribution System• Facilitates syndication of digital assets along with metadata to• Facilitates syndication of digital assets along with metadata to

digital channels through intelligent technical systems• Search Channels

• Amazon Google Barnes & Noble etc• Amazon, Google, Barnes & Noble, etc.• Institutional Channels

• MyiLibrary, NetLibrary, ebrary, etc.• Retail Channels

• Sony, Amazon Kindle, Fictionwise, etc.

• Audio ChannelsAudio Channels• Audible.com, OverDrive, GoSpoken, etc.


CoreSource Services

• Content PreparationCon ersion to req ired digital formats incl ding EPUB and• Conversion to required digital formats, including EPUB and e-book optimized PDF, and scanning services

• Hosted Archivingg• Provides offsite disaster recovery coverage

• Digital File Repositoryg p y• Storage and versioning of materials used in key publishing

operations including cover images and production source files with full access to the Artesia DAM interfacefiles with full access to the Artesia DAM interface


Current Live Customers


Library Solutions: MyiLibraryLibrary Solutions: MyiLibrary


e-Content Aggregation Platform• 175,000 titles, many unique to the MiL platform

• 7 000 downloadable audio titles7,000 downloadable audio titles

• Over 1,000 existing library customers in the

d i bli t d K 12 libacademic, public, government and K-12 library

markets

• Comprehensive full text searching across platform

• Unique, flexible DRM security

• Metadata integration

• Customers can buy across publishers/subject areas


• Customers can buy across publishers/subject areas

MyiLibrary Publishers

• Elsevier S&T• Springer

• U. California Press• Yale U Press• Springer

• Wiley Blackwell• Wolters Kluwer

• Yale U. Press• Princeton U. Press• MacmillanWolters Kluwer

• Oxford U. Press• Cambridge U. Press

Macmillan• Taylor & Francis• Encyclopaedia

• IGI• McGraw Hill

Britannica• World Bank

W ld S i tifi• Pearson Education• SAGE

• World Scientific+over 300 more…


Nashville Public Library

• Taking on responsibility for the management of K 12 school librariesmanagement of K-12 school libraries

Employing MyiLibrary solution to• Employing MyiLibrary solution to extend key titles in digital form to K-12 school market12 school market

Planned for Fall 2009• Planned for Fall 2009


Education Solutions: VitalSourceEducation Solutions: VitalSource


VitalSource Functionality• Unique delivery platform • On- or offline access• Ability to organize and work with content;

• note taking and sharing• highlight and search relevant content

• Integrate interactivity – audio, animation, videoU ll l d it f t t d d t• Unparalleled security of content and saved notes

• Integrate other types of digital content; PDF, Word, Excel Audio VideoExcel, Audio, Video


VitalSource Functionality

• Build and sell unique products:• Select chapters• Select chapters• Bundle books• Add variable time-availability• Set pricing

• Distribute codes for reviewers, prospective t P Ecustomers or P+E


Major Publishers Rely on VitalSource…

• ElsevierM G Hill• McGraw-Hill

• Wiley• Cengage


VitalSource Storefront

Branded solutionFeatured itemsFeatured itemsTaxonomyCustomizable

objects


VitalSource Bookshelf

OfflineO liOnlineMobile


“Ingram Industries’ solid and rapid growth isIngram Industries solid and rapid growth is founded on the firm belief that success is a function of, and dependent on, the very best professional people at every level of the organization.”

E. Bronson Ingram


Questions/Thank You!

Feel free to contact me at [email protected]


Technology

Freeman, Kent