Whole of Chain Workshop

Multi-channel Publishing project

12 June 2002

MCP Project 2

Agenda

Welcome and introduction

1. Background

2. Overview from 3 previous workshops

3. Case Study 1: Mercury Printeam

4. Case Study 2: Gale Thomson

5. Case Study 3: UQP

6. CAL Presentation

7. Small Group Discussion

Background

MCP Project 4

Selection of segments

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

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

and• Out-of-print general books

1. Background

MCP Project 5

Project hypothesis based on market pull

The project posed the following hypothesis:

• By understanding end users’ purchasing patterns based on format outputs …

… the economics of production could be reconfigured to pull more product through the POD chain

1. Background

MCP Project 6

Initial project findings

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

• Content availability and content management emerged as the primary issues

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

1. Background

MCP Project 7

Towards a new hypothesis

• It appears that technology push is a more powerful force than market pull

• There are three major sources of ‘friction’ to be addressed in relation to Multi-channel Publishing:• digital workflow friction• digital content aggregation friction• rights management friction

1. Background

MCP Project 8

POD, market pull & technology push

Market Pull or Push?

Digital workflowfriction

Printers Publishers interests

Rightsmanagement

frictionAuthors Publishers

interests

Digital content aggregation

frictionEnd Users Publishers

interests

•“findability”• accessibility• granulisation• validation

1. Background

MCP Project 9

Reflective questions

• In what ways might you take advantage of current trend in Multi-channel Publishing?

• How might the project make clearer the ways in which you could take advantage of these trends?

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

1. Background

MCP Project 10

Today’s objectives

• All three Supply Chain Workshops focused on discussion around the dynamics of frictions within the book production supply chain

• The objective of today’s workshop is to identify and begin to develop strategies that might manage the forces of friction in order to maximise POD opportunities within each of the five market segments

1. Background

MCP Project 11

Today’s Objectives

Stage 1: Overview of workshop findings highlighting frictions

Stage 2: Presentations from four contributors to the digital book production supply chain, providing practical illustrations of how to deal with the frictions

Stage 3: Preliminary formulation of strategies to manage frictions and maximise POD opportunities

1. Background

Overview from three Supply Chain Workshops

Booksellers/Consumers

Publishers

Printers

MCP Project 13

Overview

• At each workshop,discussion of the frictions within the digital book production chain highlighted the need to develop a new industry infrastructure to maximise POD opportunities

• It also gave clues as to what form that infrastructure may take and the necessary supply chain reforms that need to be facilitated

2. Overview

MCP Project 14

Overview

• At all levels of the supply chain, the expressed preference is for focusing on core business activities

• At this stage there is little perceived commercial advantage in reform activities

What is necessary to motivate existing industry players to participate in supply chain reform and/or encourage new entrants to develop industry solutions?

2. Overview

MCP Project 15

Printer-based fulfillment Providers

Infrastructure for Order Fulfillment via POD Mass Content Customisation Market

Retailer

Corporation

Public Institution

Permissions & Payments

Infrastructure

Publishers(DAM)

Digital Asset Management

Content Management and File aggregation

End User

2. Overview

Content Aggregator (as required)

Aut

omat

ed P

erm

issi

ons

& P

aym

ents

Physical Order

Fulfillment Process Digital Workflow &

Content Management Friction

Rights Management Friction

Desktop printing

Online order fulfillment Providers

Online Order Fulfillment Process

MCP Project 16

Workflow frictionsPrinters Publishers• The shift within publishing from print to electronic

publishing is the key driver of digital workflow reform

• The required elements of reform are:• a shift from books as application files to books as

tagged content (digital repositories and file format and management systems are in their infancy)

• development of micro transaction systems that encompass all elements of the supply chain

• automated ordering, production scheduling and logistic fulfillment services

• business models which profitably remunerate content managers for storing digital files

2. Overview

MCP Project 17

Workflow frictionsPrinters PublishersWho has the interest, skills and investment capital

to enable digital workflow reform?Where will digital files reside and who should be

responsible for content management – printers or publishers or intermediate party?

Issues to bear in mind• In general, publishers are not engaging printers in

the process of undertaking workflow reform• There is clearly a need for greater cooperation

between printers and publishers• The short term market signals indicate that

intermediate parties may form to provide digital workflow solutions

2. Overview

MCP Project 18

Content aggregation frictionsEnd Users Publishers• Mass content customisation requires access

to “bits”

• To deliver this efficiently requires a seamless permissions and payments system, DOI numbering system and agreed protocols for data identification

• Underpinning this industry infrastructure there is also a need to develop new business models at institution or enterprise levels

2. Overview

MCP Project 19

What will encourage publishers to make ‘bits’ of content available and on what basis is this likely to happen?

What needs to be done to facilitate the uptake of DOI services?

Issues to bear in mind• Some publishers perceive that traditional

print offers the only “safe” way to protect the value of their content (this minimises their aspiration to invest in content management systems)

Content aggregation frictionsEnd Users Publishers

2. Overview

MCP Project 20

• Others perceive that offering their content for aggregation compromises their competitive position

• Are end user signals getting through to publishers regarding customisation of content?

Content aggregation frictionsEnd Users Publishers

2. Overview

MCP Project 21

Rights management frictionsAuthor Publishers• All parties within the chain understand that

POD requires more efficient permissions and payment systems

• Any rights management system has to deal with the inherent tension between a cultural view that content should be freely available and a commercial view that creators deserve a return for the use of their content

2. Overview

MCP Project 22

Rights management frictionsAuthor PublishersWhat kind of rights infrastructure would you

want to see emerging to support the POD/ content management industry?

How would you wish to access appropriate permissions and payments systems?

Issues to bear in mind:

• Australia has just established a DOI agency

• CAL and the NLA are discussing new forms of digital legal deposit

2. Overview

MCP Project 23

Rights management frictionsAuthor Publishers• Enhanced rights infrastructure might facilitate

new publishing opportunities

• For example, Australian academics require additional pathways to publish (this requires new forms of peer review)

2. Overview

Mercury Printeam

Roger Bryant

Gale Group

Paul Mercieca

University of Queensland Press

Greg Bain

Copyright Agency Limited

Tony Scander

Small Group Discussions

MCP Project 29

Questions• What is necessary to motivate existing industry players to

participate in supply chain reform and/or encourage new entrants to develop industry solutions?

• Who has the interest, skills and investment capital to enable digital workflow reform?

• Where will digital files reside and who should be responsible for content management – printers or publishers or intermediate party?

• What will encourage publishers to make ‘bits’ of content available and on what basis is this likely to happen?

• What needs to be done to facilitate the uptake of DOI services?

• What kind of rights infrastructure would you want to see emerging to support the POD/content management industry?

• How would you wish to access appropriate permissions and payments systems?