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GET PRINTING BUSINESS ADVICE AT DRUPA 2016

Do you want to take your printing business to the next level? Do you have a question about digital printing technology? Or any other question about industrial printing applications and business innovation? We will answer it at Drupa.

ESMA appointed a dedicated Expert Team consisting of specialists in industrial printing, digital inkjet technology and printing business innovation. Eight experts will offer their advice free of charge at ESMA Lounge in Hall 3, B70.

Please register now for a one hour free consulting!

 

Or Please complete a short survey and we will contact  with a printing expert per email or at Drupa.
Not a Drupa? We will still answer your question, per e-mail.

WHEN SHOULD YOU INNOVATE YOUR PRINT BUSINESS MODEL?
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What are the external circumstances that might suggest it is time to innovate your business model? They can be grouped into threats and opportunities.

EXTERNAL CIRCUMSTANCES: THREATS

First, there are two basic threats to the incumbent business that require the digital printing business model to be changed. Or, as Peter Drucker would say, times when “the theory of the business is no longer working.”

One of those threats is the process of commoditisation. Generally speaking, industries go through a fairly predictable progression. The basis of competition moves from performance – making the better widget or print run – to reliability. It means making that widget more reliable, longer-lasting, and more durable.

business that had to change due to external forces. A great example of the convenience play is Dell Computer which came into the personal computer market and said, “We are going to make a play for convenience and customisation” and introduced a fundamentally different direct-to-customer, manufacture-just-what-the-customer-wants business model (sound like web to print, doesn’t it?).

Xiameter is a good example of escaping the profit-killing effects of commoditisation. Dow Corning, long-time maker of high-end silicon products sold through a high-margin, high-

umbrella It will lead to making multiple different widgets and making them more convenient and customised for individual tastes like print on demand. At the end it leads to commodity, when everyone is competing only on price and cost.In the evolution of that lifecycle, business model innovation starts to play a role at the point when you get to customisation and convenience, and is fairly imperative as a way to escape commoditisation.
Let us look at business like the printing touch business model, similar to print enhancement digital or analogue, created a whole new business called Xiameter to address decreasing demand for technical support among some segments of its customer base. Rather than cede those customers away to a competitor,it created a radically different business model in which it lowered costs, not only by stripping away support (which would just lower its margins) but by sourcing its product on the spot market, thus dynamically lowering its costs (Vistaprint

and Exaprint model).

The point is two-fold. Xiameter did not try to address this new customer need by shoehorning it into its existing business model, which would never have worked. And it did not put its head in the sand and say, “Well, we can’t serve those customers profitably, so we won’t, and we hope no other competitor does either.”

Those are the two clear-cut threats that require new business models, and they are circumstances in which incumbents find themselves in a reactive mode.

But companies can employ business model innovation proactively as well, not to counter threats but to create or capitalise on opportunities. In that case there are two particularly fruitful

circumstances in which a new business model can enable businesses to take advantage of opportunities.

EXTERNAL CIRCUMSTANCES: OPPORTUNITIES
When should you innovate your print business model?
The first opportunity is the chance to “democratise” the market – that is, to open it up to people who have previously been entirely shut out because all current alternatives are either too expensive, time-consuming, complicated, or inaccessible for them (with print app marketing for example). To use the computing world as an example, we went from mainframe computers to minicomputers, to personal computers, to laptop computers, to netbooks and handhelds. And each of those democratising moves, where computing became more ubiquitous and accessible to more people, required a different business model. There’s a lot more to it than that, but that’s a fairly simple example.

The final circumstance in which business model innovation is needed is to capitalise on an internal innovation that does not mesh well with your current business model. Xerox PARC is the classic sad example – scientists there famously came up with the graphical user interface and the mouse. But those technologies would have required Xerox to take a different approach than just saying, “How does this apply to copiers and the copier business model?” So those technologies ended up in the Apple computing business model. The Ethernet technology went into 3Com, and Adobe used the PostScript technology when it started up. could capture the new opportunity (or address the threat) and compare it with its current model. The Swiffer, for instance, although it was highly disruptive to the traditional mop makers, fit squarely within Procter & Gamble’s Established Reboot Moments tab in the crowd intelligence of your company members. model for making and distributing household consumables in high volume.meeting Really, those technologies required three different business models. Xerox was not willing to come up with new business models and therefore did not end up with any part in commercialising any of those technologies.The only way an individual company can determine for sure whether a particular threat or opportunity requires an entirely new business model is to work up an initial estimate of the business model that could capture the new opportunity (or address the threat) and compare it with its current model. The Swiffer, for instance, although it was highly disruptive to the traditional mop makers, fit squarely within Procter & Gamble’s established model for making and distributing household consumables in high volume.
INTERNAL: LOOK AT YOUR CURRENT BUSINESS MODEL
The only way an individual company can determine for sure whether a particular threat or opportunity requires an entirely new business model is to work up an initial estimate of the business model that That is why it is imperative for companies to judge opportunities and threats according to their own capacity to meet them (internal innovation workshops and staff educatio deploy internal an innovation culture). Looking how
these opportunities fit with their own business models rather than judge how near or far the opportunity might be to their competitors. Going after a seemingly lucrative opportunity with the wrong business model is the reason so many companies fail in their efforts at transformational growth. Failing to respond to a disruptor in your market because it requires you to develop a new business model can be suicidal, as the big integrated steel companies found out. Match the four external circumstances to the internal capabilities of your current business model. If responses to those circumstances require changing any of the things I have mentioned above, then.
you are probably not just looking at a tweak of the business model, but something fundamentally different.
Conversely, though, failing to grasp opportunities like P&G had with Swiffer to disrupt other markets using your current business model is just throwing money away – something companies can ill afford in the current economy. That said,
if the opportunity requires a business model that features smaller margins, a much smaller overhead structure, or a
dramatically changed resource velocity (that is, a dramatic change in the speed with which assets need to move through
the business system, like digital printing allows), it is a good bet that it can only be addressed by setting up a separate unit to run this separate business model. The same goes for models that need to run under different metrics, norms, or
business rules (different gross margins, unit pricing, unit margins, quality measures, time to break-even, individual
rewards and incentives, etc.).
Really, those technologies required three different business models. Xerox was not willing to come up with new business models and therefore did not end up with any part in commercialising any of those technologies.The only way an individual company can determine for sure whether a particular threat or opportunity requires an entirely new business model is to work up an initial estimate of the business model that could capture the new opportunity (or address the threat) and compare it with its current model. The Swiffer, for instance, although it was highly disruptive to the traditional mop makers, fit squarely within Procter & Gamble’s established model for making and distributing household consumables in high volume.
INTERNAL: LOOK AT YOUR CURRENT BUSINESS MODEL
The only way an individual company can determine for sure whether a particular threat or opportunity requires an entirely new business model is to work up an initial estimate of the business model. That is why it is imperative for companies to judge opportunities and threats according to their own capacity to meet them (internal innovation workshops and staff educatio deploy internal an innovation culture). Looking how these opportunities fit with their own business models rather than judge how near or far the opportunity might be to their competitors. Going after a seemingly lucrative opportunity with the wrong business model is the reason so many companies fail in their efforts at transformational growth. Failing to respond to a disruptor in your market because it requires you to develop a new business model can be suicidal, as the big integrated steel companies found out. Match the four external circumstances to the internal capabilities of your current business model. If responses to those circumstances require changing any of the things I have mentioned above, then
you are probably not just looking at a tweak of the business model, but something fundamentally different.
Conversely, though, failing to grasp opportunities like P&G had with Swiffer to disrupt other markets using your current
business model is just throwing money away – something companies can ill afford in the current economy. That said,
if the opportunity requires a business model that features smaller margins, a much smaller overhead structure, or a
dramatically changed resource velocity (that is, a dramatic change in the speed with which assets need to move through
the business system, like digital printing allows), it is a good bet that it can only be addressed by setting up a separate unit to run this separate business model. The same goes for models that need to run under different metrics, norms, or
business rules (different gross margins, unit pricing, unit margins, quality measures, time to break-even, individual
rewards and incentives, etc.).

MEET LUCIEN MOONS AT ESMA LOUNGE (HALL 3, B70) DURING DRUPA

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