supply chain workshops booksellers/book buyers publishers printers multi-channel publishing project

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Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

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Page 1: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

Supply Chain WorkshopsBooksellers/Book buyers

PublishersPrinters

Multi-channel Publishing project

Page 2: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 2

Agenda

Welcome and introduction

1. Background

2. Project findings

3. Issues to address

4. Market segments

5. Conclusion

6. Other relevant research

7. Next steps?

Page 3: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

Welcome and Introduction

Page 4: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 4

Reflective questions

• In what ways can you take advantage of current trends?

• In what ways can the project make clearer ways in which you can take advantage of these trends?

• In what ways can you imagine engaging with the emerging industry supply chain(s) represented in this presentation?

Introduction

Page 5: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

1. Background

Page 6: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 6

Background

• Meeting between EPICS Client Manager, IPR Systems and Fuji Xerox at PacPrint

• 3 Page summary of project

• ITR’s involvement

• Project definition with Fuji Xerox

• ABA’s invitation to lead

1. Background

Page 7: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 7

Project objectives:output format orientated• Investigate five publishing segments

• Articulate market segment end consumer desires in regards format outputs

Purpose:

• To design new production pathways

• To respond to customer requirements

• To facilitate new investment points within 12 and 36 months

1. Background

Page 8: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 8

Selection of Segments

• The specific market segments chosen were selected because they were thought to be most open to POD opportunities:

• Tertiary• Primary/Secondary education• Professional/Reference• Specialist/Niche

• Out of print general books

1. Background

Page 9: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 9

Caveat: Print 21 objectives

• The project’s outputs had to comply with Print 21’s objectives

• The various stakeholders were uncertain as to whether certain conflicting objectives could be achieved

• In the end, the project stakeholders agreed to an ambiguous project framework

1. Background

Page 10: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 10

Caveat: Print 21 objectives

• The project enshrined this ambiguity

• Initially called a ‘POD’ project, this was later changed to the ‘multi-channel publishing’ project

• This name change was symptomatic of the challenges that lay ahead

1. Background

Page 11: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 11

Project management

The rationale behind inviting the ABA to lead the project:

• The ABA was thought the best place to get close to the customer, whilst staying within the domain of the book industry

• EPICS needed an eligible applicant

1. Background

Page 12: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 12

Framing the DiscussionsBook Industry Market Size Estimation – Total Printing $511.7 M

Printing outside Australia• $236.7 m

Printing for Australian Publishers• $255.4 m

4 Colour Printing• $129 M total• $101.7M OS• $27.2m AUST

Printing in Australia• $275 m

Printing for Other Australian Sources

• $256.3 m

Other/Mono Printing• $383 M total• $135.7 OS• $247.4m AUST

1. Background

Page 13: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 13

Market segments

• The black and white market is the focus because of the segments chosen

• The project was conceived around format outputs based on POD … reflecting manufacturing perspective

1. Background

Page 14: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 14

Accenture, JIS and this project

• Both these studies focused primarily on the mass production book market

• This project was intended to focus primarily on the mass customisation market

1. Background

Page 15: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 15

Project hypothesis based on market pull• By understanding end users’ purchasing

patterns based on format outputs …

• … could the economics of production be re-configured to pull more product through the POD chain?

1. Background

Page 16: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 16

Market pull

• Market pull is the concept behind lean manufacturing, mass customisation and inventory management …

• The unfilled demand for global content

• The unfilled demand for local/regional content

1. Background

Page 17: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 17

Methodology

• Design of the questionnaire’s structure

• The primary focus was on format output preferences consistent with the project’s hypothesis

• Content questions were also posed

• 54 interviews have been carried out

1. Background

Page 18: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 18

The sample

• Production supply chain: publishers (multinational and independent, large and small, specialist and general), authors (including self publishers), integrated POD/offset printers, university presses and printers etc

• Retail segment: University bookshops, trade bookshops, etc

• Consumer segment: Students, academics, teachers including curriculum coordinators, librarians, book buyers and project managers etc

• Industry representation: Professional associations representing consumers (e.g Teachers, Adult Education Councils etc)

1. Background

Page 19: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

2. Project findings

Page 20: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 20

Immediate findings

• Consumers appeared to be fully satisfied with the current output format choices

• The issues of content availability and management emerged as the primary issues

• The project’s hypothesis was immediately called into question!

2. Project findings

Page 21: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 21

Working group response

• This forced a re-evaluation of the over arching objective of the project

• The project is still evolving to adapt to this re-evaluation

• This workshop is a part of the journey

2. Project findings

Page 22: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 22

Presentation format

• Framing presentation around:– The POD industry

• an analysis of lead and lag segments

– The emerging content management industry• an analysis of lead segments

2. Project findings

Page 23: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 23

POD, market pull & technology push

Market Pull or push?

Digital workflowfriction

Printers publishers interests

Rightsmanagement

FrictionAuthors publishers

interests

Digital content aggregation

frictionConsumers publishers

interests

Project findings 5

•“findability”• accessibility• granulisation• validation

2. Project findings

Page 24: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 24

Digital workflow friction

Author Editor

GraphicDesign

Production

MS WordApplicationSoftwareQuark, pagemaker, Adobe

PDF

Publisher’sdata asset

management

Printer

Printer’sdata asset

management

Formatoutputs

Electronicviewable PDF’s

Physicalbinding outputs

Multi-channel

distribution

2. Project findings

Page 25: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

3. Issues to address

Page 26: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 26

Related issues

• Uncertainty

• Defining of POD

• The right to copy

• Digital industry infrastructure

3. Issues to address

Page 27: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 27

Nature of demand

Demand for Reading Material

Preferred Format

Preferred Content

Preferred Channel of Purchase

Increasing demand for reading material, available in mixed formats, with more niche content, available from multiple purchasing channels

Steady demand for reading material, mainly in paper-

based format, containing content with mass appeal,

available mainly via bookshops

What and how much will be demanded?

The context – demand uncertainty3. Issues to address

Page 28: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 28

The Nature of demand uncertainty

Preferred Format

Demand for Reading Material

Preferred Content

Preferred Channel of Purchase

Preferred ContentContent with mass appeal More niche content

Preferred channel of purchase

Mainly via physical bookshops Via multiple channels

Steady Increasing

Type of marketingMass Marketing One-to-one Marketing

Electronic StandardsNo industry agreement on eBooks eBooks standard

Media complementarity Opportunity of other MediaThreat of other Media

Textbooks based eLearningPreferred media for learning

Credibility of content Reduced credibilityHighly credible

Target marketMainly older readers Mainly younger readers

Preferred Format Mixed formatsMainly paper-based

Increasing demand for reading material, available in mixed formats, with more niche content, available from multiple purchasing channels

Steady demand for reading material, mainly in paper-based format, containing content with

mass appeal, available mainly via physical bookshops

Demand for Reading Material

Demand uncertainty3. Issues to address

Page 29: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 29

Natu

re o

f su

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ly

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Sco

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Bu

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Inte

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Ind

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Pa

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(Wh

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)

Some new companies, diversified along the book industry value chain, emerge in

a transaction based marketplace

Existing businesses remain specialised and collaborate to maximise

industry performance

What will industry structure be like?

The context – supply uncertainty3. Issues to address

Page 30: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 30

Bu

sin

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Sco

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Mainly specialised businesses

Self-publishing is not popular

among authors

Bu

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Bu

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Se

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Se

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Prin

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Mainly long print runs

Bu

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Inte

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Bu

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In

tera

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usi

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ss I

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Largely transactional

Highly collaborative

Tra

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(W

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Mainly existing players

More new entrants

Self-publishing is popular

Businesses diversify along the

Book Industry

value chain

Mainly short print runs

Some new companies, diversified along the book industry value chain, emerge in

a transaction based marketplace

Existing businesses remain specialised and collaborate to

maximise industry performance

What will industry structure be like?

Supply uncertainty3. Issues to address

Page 31: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 31

Defining POD

• There is widespread confusion about the core definition of POD

• POD is a way of producing an authorised version of a work in small volume at short notice from a digital file

• Some forms of photocopying have been perceived as POD

• Photocopying is an authorised or unauthorised secondary reproduction of an existing printed work

3. Issues to address

Page 32: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 32

The right to copy• In Australia, ‘fair use’ copying through educational

institutions and libraries is authorised under certain conditions

• The institutions and not the user tend to pay for the right to photocopy

• This feeds the culture that believes content should be free

• Widespread use of the internet and the free public library system feed this perception even further.

• There is a recognition that creators deserve return for the use of their content

3. Issues to address

Page 33: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 33

Digital industry infrastructure• To optimise the opportunities provided by POD

the primacy of intellectual property needs to be recognised

• POD systems need to be engineered to provide– an efficient system for finding and accessing

content– a seamless and transparent permissions system– a seamless and transparent system for direct user

payments and for distributing the payments to rights holders

• The system must be built on the principles of interoperability across the supply chain

3. Issues to address

Page 34: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

4. Market segments

Page 35: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 35

POD in the tertiary segment

• Training

• EPICS EDF shows that the training/technical manual market is the segment driving the most innovation in POD

• Investment is printer-based in internet related activities, such as web sites, for quoting and production process integration

4. Market segments

Page 36: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 36

The tertiary segment

Leading to:

• … printers taking over fulfillment functions?

• … provision of customer web site facilities?

• … even e-commerce fulfillment?

4. Market segments

Page 37: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 37

The tertiary segment

• The publishers’ business models are highly reliant on their printers

• … printers are leading the charge

• … in turn, the printers are reliant on innovative IT service providers to secure innovation

4. Market segments

Page 38: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 38

The tertiary segment

• There are (insignificant) examples of training manuals being sold via the retailing segment

• In principle, this is an opportunity, but limited by the size of the publishing businesses to build the market

4. Market segments

Page 39: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 39

The tertiary segment

• The real opportunity is document and print management

• The mechanism is process automation between publishers and printers

• Publishers are only intermediaries in the mature business model

4. Market segments

Page 40: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 40

The tertiary segment• Two main drivers of this market are:

– publishers preparing training manuals to service products of global manufacturers or software companies;

– RTO’s preparing customised training resource materials that support ANTA sponsored competency based training

• This will lead to new opportunities to service global vendors publishing technical manuals (this is the least developed market)

4. Market segments

Page 41: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 41

The tertiary segment

• This is leading to global business opportunities

• Printers have the potential to develop deep global alliance strategies based on document and print management strategies

4. Market segments

Page 42: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 42

Content supply opportunities in the tertiary segment

• Everywhere: language, literacy and numeracy materials

• Resource materials underpinning competency based training

• Across all ANTA segments

• Knowledge management to support decentralised training strategies

4. Market segments

Page 43: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 43

ANTA segment underpinned by publishing service systems

• Building of a training resource materials market to customise competency based training

• Underpinned by centralised/decentralised digital asset management systems

• … customisation strategies

• … e-commerce infrastructure

• … export of service system

4. Market segments

Page 44: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 44

Vendor manufacturer’s alliances

• Document and print management strategies to support training delivery

• … opens up direct relationships with global manufacturers / software vendor companies

• Leading to POD and print management of technical manuals

• Australia offering services to the region so as to service North American interests

4. Market segments

Page 45: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 45

POD in the university segment

• Best practice POD within the university segment occurs where:– the bookshop– the university publishing house – IT resources– publishing / curriculum service providers– and the printer

• all work together to service the corporate objectives of the university

4. Market segments

Page 46: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 46

The university segment

• This appears to enable a maximisation of:– effective IP publishing and management– service delivery for students– cost accountability across divisional lines of

responsibility

4. Market segments

Page 47: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 47

The university segment• The research highlighted that this segment requires

major reform• Symptoms of the problems are everywhere:

– marginalisation of print rooms

– divides between print rooms, University presses, and IT divisions

– bookshops photocopying textbooks

– copyright laws and rights management

• Protocols regularly disregarded– cost of print is being passed onto students

– overall uncertainty of POD business models within University segment

4. Market segments

Page 48: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 48

The university segment

• Content and format supply opportunities are everywhere:– Customised course pack manufacture– Digital content management to support JIT

delivery of ‘bits of content’– Lecturers notes, course notes, conference

and seminar proceedings– Electronic press, web purchase of physical

books

4. Market segments

Page 49: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 49

The university segment• Reform requirements:

– Rights management protocols (DOIs)– Access to electronic files– Royalty payment business models– Greater emphasis on providing integrated system

solutions, encompassing IT solutions– Greater cooperation between CAL and AVC– Staff training– Shift to learning objects and distance education

4. Market segments

Page 50: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 50

POD in the primary/secondary segment

• We encountered different production models

• … in–house printing (global publishers with content management experience)

• … in–house printing (local small scale publishing with traditional work flows)

• … outsourced printing

4. Market segments

Page 51: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 51

The primary/secondary segment

Model:

In-house printing – large multinational publisher

• … these business are investing in POD to reduce cost of offering POD services

• … rights management is the biggest issue

• … high volumes are required to maintain viability

4. Market segments

Page 52: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 52

The primary/secondary segment

Model:

In-house printing – small local publisher

• … these businesses are investing downstream in POD related productivity improvements

• … print protects the value of their content

• … they are uncertain of content management business models

4. Market segments

Page 53: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 53

The primary/secondary segment

Model:

Small scale publishers outsource POD

• … evidence these are beginning to invest up stream in e-learning technology, but it is so small scale it is insignificant

4. Market segments

Page 54: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 54

The primary/secondary segment

• POD is not well developed in this market (majority of market serviced through offshore offset printing)

• Being close to the coal face with regard to curriculum development is crucial

• Rights infrastructure required to strip out process costs is imperative to success

4. Market segments

Page 55: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 55

The primary/secondary segment

• Content supply opportunities:– Being close to the coal face to foresee

curriculum reform / changes is crucial– Resource materials to support Australian

content– Web based content aggregation to support

new e-commerce models

4. Market segments

Page 56: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 56

The primary/secondary segment

• Reform opportunities:– Strategic allocation of resources

(ICT/print/publishing service systems) to support new forms of innovation at coal face i.e. are the key drivers of innovation occurring via other supply chains?

– Colour POD if costs can be reduced

4. Market segments

Page 57: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 57

The primary/secondary segment

• Reform requirements:– Rights infrastructure and new business

models for content purchasing– Broadband infrastructure– Skills base to migrate to e-learning models– Achievement of marketing economies of scale

for SMEs

4. Market segments

Page 58: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 58

POD in the professional/reference segment• The lead segment in the emerging content

management industry

• The driver of change … the need to publish simultaneously via the web and print

• IT systems need to support multi purposing of data (multi-channel publishing)

4. Market segments

Page 59: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 59

Professional/reference segment

• Investigation of this market segment has highlighted the need for a radical change in work flow

• POD can only be driven by more effective content management

4. Market segments

Page 60: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 60

Professional/reference segment

• Multinational journal and information publishers are moving from SGML to XML

• This is the sign of the future, where content is not held in application files, but in databases

4. Market segments

Page 61: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 61

POD in specialist/niche segment

• What happens in this segment is most likely to influence the speed of uptake of POD in the traditional book mass market and out of print markets

• Publishing service system models are being pioneered in this segment

• These service models provide systems to deliver more diverse and shorter run product to market

4. Market segments

Page 62: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 62

The specialist/niche segment

• This gives rise to efficient production and on-line marketing systems

• Publishing and manufacturing service system providers mediate market forces for small scale publishers

• ... or for large scale publishers not interested in resourcing “non-mass market product”

4. Market segments

Page 63: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 63

The specialist/niche segment

• These markets give rise to a wider range of opportunities for authors to be formally published

• Effectively shed the full risk onto the author

4. Market segments

Page 64: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 64

The specialist/niche segment

• There is only one company known that is manufacturing one perfect bound book by POD

• …. manufacturing for an internet publisher/ book retailer, not a physical bookshop

• …. the publisher and the printer are driving innovation at this point

4. Market segments

Page 65: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 65

POD in the general book segment

Burch’s research hypthosises:

• The establishment of a viable POD is being diminished by activities of the large offset printers in the mass black and white market

• Publishers continue to focus on unit cost of production rather than life cycle costs

4. Market segments

Page 66: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 66

The general book segment

• Publishers are expressing an interest in using POD to keep books in print at the back end of their lifecycle

• This model precludes titles not currently in digital format

4. Market segments

Page 67: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 67

The general book segment

• This is because of:– cost of digitisation– market infrastructure costs to support an “old”

title

• In principle, there appears to be an opportunity for an intermediate party to offer a marketing and digitisation, POD and logistics infrastructure to support a push into the out of print market

4. Market segments

Page 68: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 68

Summary - tertiary segment• Lead POD sector driven by printers innovation• Reform opportunities

• Process automation between printers and publishers to reduce supply chain costs

• Printers becoming logistics and internet – web service providers

• Printers providing e-commerce infrastructure• Decentralised / centralised digital asset

management strategies• Longer term – printer offering publishing service

solutions including seamless rights management

4. Market segments

Page 69: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 69

Summary - university segment

• Supply side less vibrant that training

• Relies primarily on in-house printing model

• Reform opportunities– Dependent on digital and wider university infrastructure i.e.

seamless and electronic rights clearance systems, access to electronic files, royalty payment business models, cooperation between CAL and AVC, staff training and shift to distance education

– Dependent on management reform within Universities i.e. integrated approach to management within University to service corporate objectives encompassing the bookshop, University publisher, IT resources, library, IT resources, publishing / curriculum service providers and printer

4. Market segments

Page 70: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 70

Summary - primary/secondary segment• POD not well developed

• Models are in-house and outsource printing

• Reform opportunities– Rights clearance mechanisms – Digital workflow process automation (in-house)– Content aggregation business models– Investigation of ICT / e-learning models and strategies – Skills base to facilitate integration of ICT competencies– POD colour – SME marketing economies of scale– Business growth strategies

4. Market segments

Page 71: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 71

Summary - professional/reference segment• Lead sector is science journal market

• The driver – simultaneous web / print distribution of content

• Investigation points to a future radical change in workflow to content management

• This is a global opportunity for Australia

• The skills base in this sector are considerable, but small in scale

• This is a highly desirable point of intervention for industry development

4. Market segments

Page 72: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 72

Summary - specialist/niche segment• Beginning to take up POD for new publishing

markets

• Reform opportunities– Integration of publishing and manufacturing service

system models for small scale runs– Efficient distribution of rights management systems– Process integration between publisher and printers– Uptake of more effective knowledge management

frameworks within enterprises

4. Market segments

Page 73: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 73

Summary - general book segment

• Reform opportunities– Limited at the moment by

• wait and see approach of mainstream publishers• Competition in mass market offset printing (B/W)• Publishers lack of focus on whole of life cycle costs

(as compared to unit costs)

– But project confirmed interest in the prospect of keeping books in print

– Prospect of an intermediate party

4. Market segments

Page 74: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 74

Opportunities/Threats - tertiary segment -training

Opportunities

• New domestic training markets (by better mechanisms to link training with industry policy)

• Export of training services

• Publishing of training IP

• Linkages with global vendors (manufacture, software etc)

Threats• Lack of entrepreneurial business

skills• Lack of investment capital to

innovate• Lack of scale to service

international opportunities• Bureaucracy of the ANTA based

training infrastructure• Lack of interoperability between

RTO’s and printers• Insufficient uptake of ecommerce

and digital asset management systems infrastructure

4. Market segments

Page 75: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 75

Opportunities/Threats - tertiary segment -education

Opportunities

• Content brokering

• Publication of customised books and course backs

• Academic publishing of Australian IP

• Linkages of publishing with global education services

Threats

• Lack of corporate management skills within Universities

• Lack of investment in publishers systems

• Fragmentation of resources across university based bookseller, publishers, libraries, IT departments, curriculum developers and printers

• Insufficient uptake of ecommerce and digital systems infrastructure

4. Market segments

Page 76: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 76

Opportunities/Threats - primary/ secondary segmentOpportunities

• Resource materials content aggregation, web delivery and ecommerce

• Integration of ICT resources at coal face to transform learning processes

• Colour POD (if cost can be addressed)

• More Australian content

• Export of content

Threats• Lack of entrepreneurial

business skills• Unknown business models

for content management• Lack of capital to innovate

and develop markets• Changes to learning

strategies at coal face• Innovation occurring via

other industries such as innovative ICT companies

• Lack of capital to fund export growth

4. Market segments

Page 77: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 77

Opportunities/Threats - professional/reference segmentOpportunities

• Content management services for Australian and European publishing houses

• Regionally based content management activities

• Servicing of Asia Pacific

• New publishing markets and commercialisation of Australian IP

Threats

• Lack of entrepreneurial business and change management skills

• Lack of effective IP management within Australian universities

• Overseas competitors offering enhanced content management services

• Insufficient nos of trained workforce (at regional and metropolitan levels)

4. Market segments

Page 78: Supply Chain Workshops Booksellers/Book buyers Publishers Printers Multi-channel Publishing project

MCP Project 78

Opportunities/Threats - specialist/niche segmentOpportunities• New publishing markets for

small scale print runs• Publishing and

manufacturing service system models

• Regionally based content • Specialist bookshops going

global via internet• Bookshops brokering local

content• Publishers embracing this

new market via different channels

Threats

• Lack of entrepreneurial business skills

• Lack of investment capital to support growth

• Fragmentation of industry via problems of inter sector interoperability mechanisms

• Explosive growth underpinned by product and service exports

4. Market segments

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Opportunities/Threats - general books segmentOpportunities

• Keeping books always “in print” from now on

• New business models to support growth of out of print markets

• New content opportunities available via adoption of more service / user orientation

Threats

• Prevailing of a “global publishing” perspective

• Defensive organisational cultures resulting in lack of innovation via digital technology

• Primary focus on mass publishing

• Lack of interest in non current titles

• Lack of understanding of the need to take a “users perspective”

4. Market segments

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5. Conclusions

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MCP Project 81

Industry dynamics are changing

• Profit margins are dropping

• New workflows are replacing traditional workflows

• All segments are experiencing friction related to:– digital workflow– content aggregation– rights management

5. Conclusions

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MCP Project 82

New relationships are needed

• The industry is in transition from a product to a service orientation

• Old relationships are changing as the skills base shifts

• At the heart of this lies the necessity of alliance formation through the chain

• Core skills and innovation must relate to integrating IT competencies into print / publishing supply chains

5. Conclusions

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Technology push is likely to prevail

• Innovation will emerge from adopting new technologies, not from consumers making choices about existing products

• The industry is incredibly vibrant and innovation is occurring along the entire value chain

• There are frictions but they can be managed

5. Conclusions

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MCP Project 84

More digital infrastructure investment is required • To address friction, several layers of action

are required

• At the digital infrastructure level, CAL and the National Library are examples of deepening cooperative activity,

• Simply, POD can meet its full potential when rights management systems ensure simplicity and transparancy

5. Conclusions

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MCP Project 85

POD is already thriving in some segments• Demand for POD is driven in situations where

book products are part of a wider service system:– Training segment– Information publishing market (legal, travel)– Education text books– Service systems that make small production run

lengths possible

• Increasingly, publishers are actively experimenting with POD

5. Conclusions

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MCP Project 86

POD and booksellers

• Retailers want to be able to provide better fulfillment services for their customers

• While quality is paramount for some purchasers,book buyers generally do not differentiate between POD and offset book products

• While in-store POD is a possibility, do general booksellers want to become printers

5. Conclusions

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POD and booksellers• University bookshops are further advanced

with POD than most and already provide content mediation services

• However, at the moment, in most cases this appears to be a chaotic market

• Opportunities exist for university booksellers to cement their position as content brokers and deliverers

5. Conclusions

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MCP Project 88

POD and booksellers

• Retailers are primarily pre-occupied with other business realities

• Strategic partnerships in geographical areas may be an option to allow general booksellers to meet new demand

5. Conclusions

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POD and publishers• Traditional Australian publishing is taking a

‘toe in the water’ experimental approach to POD

• There is a growing acceptance that consumers in certain segments are insisting on ‘bits’ rather than the ‘whole’ and will access the bits however possible

• This is likely to spread to all parts of the market as technology and rights management issues are resolved

5. Conclusions

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MCP Project 90

POD and publishers

• The most likely cause for adopting POD will be to keep low demand titles in print and to retain title integrity

• Publishers currently see POD as a service that should be offered by printers. Should they?

5. Conclusions

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MCP Project 91

POD or customisation?

• In all markets, the real driver is not not necessarily print on demand, but customisation to support other services

• The core competency is not print, but content management

5. Conclusions

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MCP Project 92

POD or customisation?

• The project has highlighted the important role of publishing and manufacturing service system solutions

• For example, university bookshops and libraries appear to have a crucial role to play in content brokering. They are trialing solutions

5. Conclusions

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MCP Project 93

Is it POD or service delivery?

• Specialist bookshops, in principle, would like to find and access out of print material

• This might be crucial for their survival in an emerging era of electronic ink

5. Conclusions

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MCP Project 94

Is it POD or enhanced IP management?• Print rooms could facilitate greater volumes

of publishing within Australian universities

• There is a need to creatively address the challenge of peer review within this context

• Many libraries are already addressing this issue

5. Conclusions

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More POD -> more infrastructure

• Content brokering requires profound transformation of the traditional book production workflow patterns

• Rights management and digital content management infrastructure become imperative

5. Conclusions

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Project horizon

• These challenges are not insignificant!

• It was not expected that the horizon of this project would expand so significantly

5. Conclusions

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MCP Project 97

Contexts where content management is thriving• Science journal publishing in particular

• From a manufacturing perspective, only the typesetters and pre-press houses have the expertise to respond to the challenge to deliver integrated web and print based publishing

5. Conclusions

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Content management opportunities

• There is need to integrate new digital workflow models into other segments of the publishing industry

• This is becoming more and more urgent

• A large slab of the industry is waiting to migrate to content management, but is uncertain of the business case

5. Conclusions

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Content management complexities

• This is because content management raises as many questions as it answers

• For example, mark up languages, rights management, business models, interoperability between standards, etc

5. Conclusions

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MCP Project 100

Industry vision and structural impediments• The content management industry is a major

opportunity for Australia … if we can grasp the magnitude of the challenge

• But, at the large enterprise end of the industry, industry consolidation is limiting the speed of innovation in this space

5. Conclusions

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Technology push

• Innovation will emerge from adopting new technologies, not from consumers making choices about existing products

• This has a profound impact on the direction of the strategies to be adopted by the industry

5. Conclusions

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Sources of innovation

• The real drivers of innovation will not come from current POD / book industry supply chains

• We must look elsewhere for inspiration as to the future

5. Conclusions

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Sources of innovation

• C-2-C research has highlighted that the source of innovation is likely to be found at grass roots levels– How does learning happen?– Can ICT technologies be better applied to

these basic processes?

5. Conclusions

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6. Other relevant research

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PIRA research

Four emerging business models:

• The virtual warehouse model

• The in-store production model

• The direct to consumer model

• The in-home/office model

6. Other relevant research

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Considerations for the retail segment

• Retailing and production are combined, making wider choices available, though viability is still in question:

– Sprout Inc (US)– BoD/Libri (Wholesaler - Germany)

6. Other relevant research

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Considerations for the traditional publishing segment• Reorganization to leave production issues aside and

focus on publishing, content management and marketing, and internet retailing via publisher web sites - particularly suited to new publishers lacking investment in warehouses and stock

– Penguin (US)– Booktech.com (US)– Wiley (UK)– Gopher (The Netherlands)

6. Other relevant research

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MCP Project 108

Considerations for the traditional manufacturing segment• Print operations sited at point of distribution

(warehousing, distribution and production are being combined)– Lightning Source Inc (US)– Bertelsmann (Germany)– TJ International (UK)– Gardner’s and Antony Rowe

6. Other relevant research

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7. Next steps

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Next steps

• In what ways can you take advantage of current trends?

• In what ways can the project make clearer ways in which you can take advantage of these trends?

• In what ways can you imagine engaging with the emerging industry supply chain(s) represented in this presentation?

7. Next steps