Sons Company, was founded in 1864 by Richard Robert
Donnelley, father of Reuben H. Donnelley.
A privately held, Family run
Went public in 1956
Become the world’s largest commercial printer in 1995
Generated 60% of its revenues from directories, catalogs, and magazines
Organized into 38 divisions collected into 8 business group which were part of 3 sectors
Church Goodman & Donnelley building at 108-110 Dearborn Street, Chicago, 1868 . Digital Reproduction . R . R . Donnelley & Sons Company Archive . the ruins of the Lakeside Building at Clark Street and Adams Street, after the Chicago Fire, [ 1871 ]. R . R . Donnelley & Sons Company Archive . Lakeside Building at Clark Street and Adams Street, built following the Chicago Fire, [ ca . 1873 ]. R . R . Donnelley & Sons Company Archive .
The Evolution of a Graphic Identity : The R . R . Donnelley Indianhead
From the late nineteenth century onward, RR Donnelley's corporate identity was associated with its distinctive Indianhead trademark .
exterior decoration of the Plymouth Court building, [ 20 th century]. R.R. Donnelley & Sons Company Archive. Joseph C . Leyendecker's design first appeared as architectural decoration on RR Donnelley's Plymouth Court building .
Early Advances in Technology
RR Donnelley's position as the printing industry's leader depended on a continuous program of research and development .
printing press #D2, 1949. R.R. Donnelley & Sons Company Archive. Another of RR Donnelley's specialty printing technologies, "Watercolor" printing used rubber plates.
Sales and Customers by Business Category (% of Consolidated Sales) Financial-5% Memill Lynch Smith Barmey Paine Webber Goldman Sachs Schwab & Co. Books-13% Random House Simon & Schuster Harcount Brace HarperCollins Bantam Doubleday Software/Harware-16% Microsoft IBM WordPerfect Quicken Telephone Directories-21% Sprint Ameritech Nynex Bell Atlantic Southwestern Bell Us West Retailers Wal-mart JC Penny Kmart Service Merchandise Toys “R” Us Metromail-5% Procter & Gambles First Card Mutual of Omaha Whirlpool Magazine-18% TV Guide Family Circle Time Glamour People Reader’s Digest Catalogs Land’s End LL.Bean Eddie Bauer J.Crew
Organization & Incentives
Most sales forces were aligned with business groups rather than divisions
Division-level incentives became group wide in 1991
And became sector-wide in 1993
So, salespeople sell work to their business group only
The Traditional Print Business
Used gravure and offset/web presses
Cost about $12million for offset, and considerably more for gravure
Considered long-term relationships
High fixed cost and low variable cost
Industry Shifts & New Technologies
Change of customer’s wanted
Largely become of the rapid spread of office computing
Digital four-color and computer-to-plate were expected to have an even more profound impact.
In 1995, digital growth was forecast at around 16% annually
Traditional printing was expected to grow by 3%
Reduce cycle times
Reduce chemical pollution
Can print directly from computer files
Could be delivered in variable quantities as often as desired
Low cost and small size
In 1995, at least 55,000 printing companies operated worldwide. Most had fewer than 25 employees
Donnelley was larger than its next 9 rivals combined.
Smaller printing companies were building alliances, among themselves and with firm that had high-capacity networks for transmitting files.
A New Business Model
Need to develop :
A transaction management system
A system for royalty accounting and payment
An object-oriented database
A manufacturing database
Cost would be higher than offset/web or gravure for long runs, but lower for short runs.
On-demand printing would have an enormous effect on customer’s total system cost.
Total cycle time would be reduced by orders of magnitude – from 20 days to 2 or 3 or single day.
More tailored marketing and better sales
So…A new division would be required, rather than imply spreading digital technology throughout the company.
Economic & technical validation
Research the capabilities and costs of new imaging technologies by Technology Center
Began by close contact with technology suppliers such as Xeikon
Oversight and monitoring on Xeikon’s development work
ผลวิจัยที่ได้ คือ costs were higher than expected แต่ว่า digital per unit costs were lower than the costs of offset printing
ปรับ target อยู่เรื่อย ๆ ตามที่บอกว่า they were continually updated based on
experience in the marketplace
สรุปว่า target มี 1. magazine reprints, 2.corporate literature, 3.marketing and product literature for pharmaceuticals and health care, and 4.advance, liquidation, and prospecting catalogs
ที่สำคัญก็คือที่พูดว่า “ we sometimes say we’re not selling printing anymore, we’re selling marketing tool” คือ สอนลูกค้าเรื่องการตลาด เรื่อง information ลูกค้าจะได้รายได้เพิ่มขึ้นจาก by allowing greater market segmentation and more focus on selling
มี 3 ประเด็นคือ division’s own sales reps , the ISG sales force, sales force of other business group
business group leader, sales managers, sales representatives มัน did not always see eye to eye.
Challenges of Internal Acceptance
เจอปัญหา expected sales had not yet materialized, and under intense financial pressure.
ผู้บริหารต้องการ see profits by 4th quarter, and a breakeven year in 1996
profit from our new business. It’s hard to be unprofitable around here for even a few year แต่ระยะยาวมันไม่รู้
ไม่ยอมขยายต่อ จนกว่าจะพิสูจน์ได้ว่า Memphis was working well
ทาง Donnelley ไม่มั่นใจว่าจะ work ในระยะยาวหรือไม่ ในการประชุมก็พูดกันแค่ว่า let’s see คือ ยังไม่เกิดขึ้น
The RR Donnelley Today…
The world’s premier full-service provider of print and related services
Serving organizations worldwide
Doing business for more than 144 years
Deep experience in meeting your market’s unique challenges
2008 sales in millions: $11,581.6
Stock trading symbol (NASDAQ): RRD
Nearly 60,000 employees serving customers with locations across the globe
Building RR Donnelley to Succeed May 2003 February 2004 June 2005 April 2006 Acquisitions (1) Divestitures December 2005 October 2004 Package Logistics July 2005 Sept 2005 Poligrafia January 2007 May 2007 December 2007 March 2008 January 2009 PROSA
Positioned to Serve You … Combined Worldwide Resources Argentina Austria Australia Barbados Belgium Brazil Canada Chile China Costa Rica Italy Japan Korea Luxembourg Mexico Philippines Poland Puerto Rico Russia Singapore Czech Republic El Salvador France Germany Guatemala Honduras Hong Kong Hungary India Ireland Spain Sri Lanka St. Lucia Switzerland The Netherlands Trinidad United Arab Emirates United Kingdom United States Venezuela
An Unmatched Portfolio
Serve over 50,000 customers
Serve 100% of Fortune 100 and 93% of the Fortune 500, and have approximately 15% of their print spend
Opportunity to continue to grow our Fortune 500 Relationships
Blue Chip Customer Relationships
Business Process Outsourcing
Global Turnkey Solutions
Printing operations in the U.S.
Variable statement printing
Office products, document organization & storage
U.S Print & Related Services International U.S Print & Related Services 74% International 26% RR Donnelley Segment descriptions
Over 50% of Chinese directories and a significant portion of the regional directories in Asia/Pacific
Books for more than 30% of global publishers
Produces three of the top consumer brand magazines in China
Products Commercial Print: magazines, catalogues, retail Telephone Directories In-box materials Expertise Production facilities located in or close to all major markets Flexible service platform geared to local needs and languages ISO certification (9001; 14001; OHSAS 18001) Titles* Produced Magazine: 472 titles Catalogs: 245 titles Retail Inserts: 65 titles Volume of Copies Magazines: 530m copies Catalogs: 246m copies Retail inserts: 438 copies RR Donnelley Bindery in Krakow, Poland RR Donnelley Global Print Solutions - Europe
Largest Printing company in the region
Locations in Mexico, El Salvador, Costa Rica, Venezuela, Brazil, Chile, Argentina, Puerto Rico, St. Lucia, Barbados and Trinidad
15 Manufacturing facilities
Main product groups: Magazines, Catalogs, Inserts, Books, Premedia, Print/Forms, Labels, Variable Print (Outsourcing), Direct Mail, and Computer Print Out (CPO) paper
RR Donnelley facility in Tambore, Brazil RR Donnelley-Latin America
ACROSS 14 DIFFERENT TIME ZONES, ON FOUR CONTINENTS, AND IN NEARLY 40 COUNTRIES, RR DONNELLEY IS COMMITTED TO DELIVERING EXCEPTIONAL VALUE.