what's next - epublishing in asia

8/7/2019 What's next - ePublishing in Asia

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ePublishing in Asia:Whats Next?

November 2010


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Innodata Isogen, Inc. (NASDAQ: INOD)

We are a global services company specializing

in helping publishers and other companies

create, manage and distribute content.

Our customers rely on us to help them keep

pace in rapidly changing segments of the

information services market.

We are a global services company specializing

in helping publishers and other companies

create, manage and distribute content.

Our customers rely on us to help them keep

pace in rapidly changing segments of the

information services market.


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Broader

Enterprise

Opportunity

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Our Markets

Other

Publishing &

Information Services

Professional &

Educational

Publishers

Knowledge intensive

Complex evolution

Stable media segment


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Where we come in...

We essentially take over a wide range of critical processes forour customers:

Production

Data conversion

Data enhancement

Copy editing

Composition

Production

Data conversion

Data enhancement

Copy editing

Composition

Editorial

Authoring

Indexing

Abstracting

Editorial

Authoring

Indexing

Abstracting

Information Technology

Application development

Application maintenance

System integration

Information Technology

Application development

Application maintenance

System integration

Consulting

Product strategy Global sourcing

Content architecture Process reengineering

Supply chain optimization Organizational alignment

Consulting

Product strategy Global sourcing

Content architecture Process reengineering

Supply chain optimization Organizational alignment


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Our Value Proposition

Domain expertise

Focus on complex, process and knowledge-intensive content businesses

Tight client collaboration and transparency

Economics

Transform a fixed cost into a variable cost Speed time to market

Labor savings

Multi-shore delivery model

Depth and breadth of global resource pool

Optimize processes over geographies

Technology innovation and scale

Mature processes

End-to-end methodologies

Quality assurance

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Recent Client Studies

Global leader in legal

publishing

New product launch for

Indian market

Dedicated KPO team of

100 people

Editorial development of

more than 300,000 files

WestLaw IndiaWestLaw India

WestLaw IndiaWestLaw IndiaOpen RoadOpen Road

Integrated MediaIntegrated Media

Open RoadOpen Road

Integrated MediaIntegrated Media

High profile, venture-backed

publisher

Rich media eBooks for iPad &

other platforms

New authors and backlist

works

Exclusive production and

editorial services partner

LeadingLeading

Medical PublisherMedical Publisher

LeadingLeading

Medical PublisherMedical Publisher

Client confidential

Household-name medical

publisher

Leader in pharmaceutical &

other clinical information

Need to transform from print-

centric to web-centric

Strategic roadmap for process

reengineering

More at www.innodata-isogen.com


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Flexible Onshore / Offshore Model

Over 5,500 staff

Many with advanced degrees in law, medicine, business, engineering and

social science

Operations spanning 12 major cities, 7 countries

North America, Europe, Middle East and Asia

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ePublishing

If not a radical break, surely an historic moment

Fire? Agriculture? More like Automobile

Chapter in Computing epic

Geo-contemporaneous like its cousin,

mobile telecom

Everywhere at once

Non-linear leapfrogging prior

patterns Tools (press), systems (shops),

product (units)

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COMPUTERS COME IN TWO VARIETIES: THE PROTOTYPE AND THE OBSOLETE."

-- ANONYMOUS SAGE


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ePublishing in Asia

Japan, Korea, Philippines, others

defining devices, features, platforms

and products

Expansion of Asian markets is no

less energetic than North America

and Europe Expected to account for 50% of

worldwide mobile services

subscribers in 2010, hitting $1

billion subscribers

Asia is investing more heavily than

West in publishing drivers, like

post-secondary education

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But the big story is China

Most Populous Country: 1.33 billion people1

Most Widely Spoken Language: 1.12 billion

Mandarin speakers1

(Second) Largest Economy: $5 Trillion in 20091

Growing Middle Class: Rising purchasing power1

Historically, China has driven global innovation inPublishing

Invented Paper, Press and Publishing2

Bookstores 2

Original Knowledge Economy

Emerging Publishing Powerhouse

More titles published annually today

than total from 1911-19932

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Source: 1 - World Bank Data File, 2010

2- Professor Ping Situ, Development of Books in China,

University of Arizona


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China is embracing digital publishing

Revenue from digital publishing sector nearly 80 billion yuan or roughly $12 billion in 20091

More than 50% rise from revenue of 53 billion yuan in 20081

50% growth expected to continue over next several years1

Revenue to exceed 100 million yuan in 20101

Of 40 newspapers in a national survey, 30 have online editions and 22 have mobile

newspapers sent via cell phone messages1

About 90% of China's 578 publishing houses have digital products1

China will account for 30% of global reading devices sales in 2010

Numbers of digital products users will grow by 30% annually for the next several years1

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Source: 1 - General

Administration of

Press and Publication

(GAPP)


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Thresholds crossed

1 in 4 Chinese ages 18-70 use digital asprimary reading format

Under age 29, 2 in 4 Chinese use digital as

primary reading format

91% of 20,000 people in a recent survey

said they would not buy a book if it werenot available digitally

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IN 2009,THE VALUE OF DIGITAL PUBLICATIONS

SURPASSED THAT OF TRADITIONAL MEANS. THE

INTERNET,EBOOKS,COMPUTERS AND MOBILEPHONES ARE NOW THE PREFERRED CHOICE FOR

SOURCING READING MATERIAL IN CHINA.

-- GENERAL ADMINISTRATION

OF PRESS AND PUBLICATION (GAPP)


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Challenges persist

Most stubborn barriers:

Management Thinking

Fledgling Business Models

Lack of Qualified Tech Staff

Inadequate Copyright Protection1

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Source: Zhang Li, Annual Report on Digital Publishing Industry, Chinese Institute of Publishing Science

Of 335 Chinese newspapers with digital editions in 2008, only 322updated those editions only when updating their print product.

Just ONE updated content in real time.2


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Whats Next in China

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Truth is you know better

Our clients know their business and their markets

But we work with every major device maker in

Western markets, in most cases as a preferred

provider

Amazon (Kindle), Apple (iPad), Sony (eReader),

Barnes & Noble (Nook), Kobo and Skiff

And hundreds of global publishers

Reed Elsevier, Thomson, WK, Wiley, Pearson,

ProQuest, McGraw-Hill, Simon & Schuster,

Random House

Can humbly offer a few observations


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Whats Next in China

Continued rapid expansion

Overtake print, traditional channels as

means of distribution

ePub is a beginning, not an end

Continued device proliferation

Continued technology disruption

Nano-

Flexi-

Insta-

Auto-

New roles SW developer, processdesigner, service provider

Processes, not archive

Enablement, not access

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Reading the World, Writing the Future

Leading International publishingbusinesses will continue to invest,

funding digital development and

global integration1

Wolters Kluwer

Reed Elsevier

Wiley

Pearson

ProQuest

Springer

Penguin

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Source: Outsell

Chinas economy will continue to fuel

international expansion; Chinese

publishing houses will increasing lookinternationally for markets F

ueled by licensing and distributionagreements, strategic partnership and

direct investment Springer with China Press, Tsinghua University

Press, Higher Education Press, Zhejiang university

and the Chinese Academies of Science to create

CLoS with more than 90 journals


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Questions

Thanks Very Much

Al Girardi

Vice President

Innodata Isogen

Email: [email protected]

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