MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP email@example.com THE TRANSFORMED MEDIA SUPPLY CHAIN The Transformed DEC 2011 Media Supply Chain Where Next For WHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT Enterprise Media Management?MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP DHANANJAY BALODI December 2011 Intermedia Global Marke�ng & Premedia Consul�ng Copyrights Intermedia Global, 2011
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP firstname.lastname@example.org The Media Supply Chain includes all businesses involved in the creation, production and implementation AUTHOR’S NOTE:WHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT of marketing customer communications in the print and electronic media as well as all ‘enabling’ businesses such as technology, consulting and logistics that help in the automation of processes and exchange of data goods across the supply chain. “Where Next for Enterprise Media Management” analyses current and emerging practices in managing print multi-channel communications media and its impact on business. This thoughtpaper focuses purely on ‘company-owned’ media (as against 3rd-party owned mass media such as newspapers, TV, magazines, billboards and online portals) and largely on a specific facet of media management - print. Your opinions are welcome. DHANANJAY BALODI email@example.com T: +91 (0) 98923 23661 www.intermediaglobal.comDEC 2011THE TRANSFORMED MEDIA SUPPLY CHAIN AUTHOR BIOGRAPHY: Dhananjay Balodi (DJ) is a Mumbai, India based consultant and entrepreneur with over a decade of experience in the media, publishing and graphic arts market. Over a 19 year career, DJ has successfully built two start-up BPO businesses in the graphic arts space, launched and edited a popular German magazine in the Indian market, designed and launched b2b e-Commerce services at Satyam Webexchange (part of a Top 4 IT services major) and has led the design and development of a collaborative publishing workflow system. DJ is Founder at Intermedia Global – a marketing and premedia KPO consulting firm and an Esko Artwork consulting partner. He is currently involved in the development rollout of a new global media services strategy for Eastman Kodak Co. DJ has also been consulting for several premedia marketing services businesses from the UK, Europe, Australia and North America interested in the India opportunity. Earlier, DJ was Managing Partner in a joint venture with India’s largest prepress company where he successfully led the business’ transition into a premedia KPO supplier for the global packaging, marcoms and magazine publishing markets. In October 2008, DJ was invited to be panelist at the US FTAA’s (Flexographic Technical Trade Association) annual conference to speak on “Premedia Offshoring” for the packaging graphics market. DJ can be reached on email (firstname.lastname@example.org) or on cell phone at +91 98923 23661. Cover photo sourced from photolibrary.com
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP email@example.com B usinesses communicate with their audiences - customers, employees, partners, suppliers, media and investors for one THE TRANSFORMED MEDIA SUPPLY CHAIN fundamental reason: to acquire, retain and build profitable relationships. A variety of communications platforms (websites, reports, transactional statements and information products) are used advertising, direct mail, newsletters, events, product literature, financial across both company-owned (1:1) and third-party (mass) media. While print has been a dominant medium of communications, the emergence of mobile and social media has offered a cheaper and more effective way to drive 1:1 engagements. The changing media mix has however, created both challenges and opportunities for business. As have a few other fundamental transformations which are driving DEC 2011 organizations to review and change their media communications management strategies. Some of these transformations include: WHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT The changing With media fragmentation, growing pressures on marketing budgets, reducing A shift from a mass marketing focus to : marketing media mix has dividends from mass-media such as print and TV and the emergence of new electronic media options such as the web, social media and mobile communications, however, created marketers are forced to drive a strategic shift in the way communications is both challenges managed and delivered. Not only is electronic media providing interactive, and opportunities personalized and on-demand communications platforms, print is beginning to for business. As acquire many of these attributes making it easier to integrate with electronic have a few other channels. Further, as CRM practices mature, the growing availability of organized customer data and growth of advanced analytics is catalysing the adoption of data- fundamental driven communications – the foundation for 1:1 marketing. transformations which are driving organizations to Organizations are no longer content with focusing on cost reduction. Business Cost management to Cost + ROI managementreview and change pressures are forcing marketers – primary spenders on communications media – to their media maximize return on investment from their marketing initiatives (ROMI). There is communications increasing focus on making communications more ‘effective’ and procurement is beginning to work more closely to align its cost reduction and spend management management goals with marketing objectives. strategies. While relying on traditional, print-centric communications and ‘centralized print Go-to-market speed is becoming a critical competitive asset and distribute’ processes seemingly offers better cost efficiencies (per page print costs), shipment, wastage, obsolescence and logistics delays greatly slow down go-to-market and therefore, dampen business competitiveness. In such a milieu, print’s role and effectiveness is being redefined. Best-in-class organizations are also going beyond reengineering and automating internal processes to weeding out inefficiencies across the entire marketing print supply chain with a strong focus on speeding up go-to-market. This includes building tighter collaboration and reducing delays both upstream in the creative processes as well as downstream in production logistics.
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP firstname.lastname@example.org As organizations grow in size with geographically distributed offices and with Rapid business growth creates complexityWHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT new departments, new product lines new profit centres, the process of managing communications becomes more and more complex. Wastage, over- spending, proliferating media brand assets, multiple supply chains, distribution While opportunities logistics and unorganized media management processes drive up costs, delay exist to drive product introductions, compromise visual brand integrity and reduce the overall dramatic cost competitiveness of business. reduction through automation of the media supply chain, Managing scaled up operations requires automation and efficient collaboration Media Management: A Strategic View there are far greater across the media supply chain. Across the industry spectrum not only do businesses gains to be achieved spend substantial amounts of money on communications media but also a significant portion of organizational resources – executive time, intellectual input through a more and administrative efforts - in the planning and execution of communications. comprehensive transformationDEC 2011 While dramatic cost reduction can be achieved through automation, there are of marketing far greater gains to be achieved through a more comprehensive transformation customer of marketing customer communications processes. Such an approach to media communicationsTHE TRANSFORMED MEDIA SUPPLY CHAIN management addresses the complete lifecycle of communications, both print processes. and electronic – all the way from planning through procurement to delivery and response management. Implementing a comprehensive media lifecycle management strategy requires a long-term commitment to addressing among others, three critical facets of media management: Print supply chain management Digital brand media asset management Data-driven communications Lifecycle of Communications Media - Marketing Customer Communications PLAN CREATE MANAGE PROCURE PRODUCE DELIVER MEASURE • Communications • Communications • Approval • Requisition • Print production • Stocking/ • Spend Analysis planning design Workflows Approval Spend • E-Publishing / Inventory • ROI Analysis • Budgeting Cross-media • Storage - Digital Tracking Multi-channel management • Campaign • Usage definition production Asset • E Procurement Communications • Inventory Tracking Effectiveness • • Personalization (media-specific Management • Vendor • Shipment/ data formats) • Distribution/ Management Delivery to • Distribution Access - Digital • Spend end-user Database Rights Management • ROI Estimation Management • Brand Control Process Standardization MARKETING PROCUREMENT SUPPLY CHAIN MARKETING
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP email@example.com Further, through leverage of digital media channels in concert with print and adoption of data-driven communications, tremendous opportunities to enhance the efficiency, THE TRANSFORMED MEDIA SUPPLY CHAIN effectiveness and reach of marketing customer communications are created. Traditional approaches to managing the print supply chain greatly limit the ability Print Supply Chain Management to stay agile and manage change as business grows. Print management becomes critical simply on account of the high concentration of communications budgets allocated to print. An Aberdeen Group research reveals that print is amongst the Top 3 indirect spend areas across most industry segments and typically accounts for between 3-5% of operating expenses. In the banking and financial services, telecom An Aberdeen and utilities industries it could be much higher. Across consumer goods businesses, Group research while customer acquisition and branding-led communications is essentially via mass DEC 2011 reveals that print media and point-of-sale, b2b communications with the trade or sales distributionis amongst the Top channels is again, dominated by print. indirect spend Distribution of Print Spends: Typical Large Enterprise areas across most WHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENTindustry segments and typically Documents 19% accounts for Marketing Collateral between -% 37% of operating expenses. Packaging 13% Business Forms 12% Point-of-Sale Stationery 9% 10% Aberdeen Group Research, Oct 2006 Apart from a high concentration of spend, the sheer complexity of print raises The complexity of managing print several challenges. Managing print requirements across the organization involves several stakeholders – the end user of the print material, marketing departments, agencies, procurement and office administration functions. In large enterprises with highly distributed offices, localized sales and marketing operations and extensive sales distribution channels, the complexity of administering and managing print procurement becomes more pronounced. A mid-sized insurance company in Mumbai for instance, discovered that with rampant business growth came the problem of prolonged go-to-market timelines for new product launches. At yet another insurance company, only one in every three sales forms printed was actually tracked back in the sales management system. Presumably, the remaining two thirds were wasted expenditure.
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP firstname.lastname@example.org Compounding the problem is the diversity of print vendors that execute print for Inefficient procurement spend managementWHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT the enterprise. Various departments that spend on print communications tend to have their preferred set of printers resulting in high variability in quality, price execution efficiency. The result; inefficient budget utilization, poor spend and quality controls and the perennial risk of brand dilution. Yet another significant facet of the print supply chain complexity stems from the logistics and distribution processes. With procurement’s goal centred on cost-reduction, there is a tendency to print in bulk, store and then ship when required. Multiple studies such as by Infotrends – a global research firm specializing in Studies by the graphic communications market reveal that for every rupee spent on print Infotrends reveals communications businesses incur many multiples more, on ‘process costs’ associated that for every dollar with managing print fulfilment. About 25-30% of print ordered by typical large spent on print organizations never gets used due to obsolescence and wastage arising from poor communications inventory visibility control. Nearly 1 in every 4 print jobs requires an artwork toDEC 2011 businesses incur be recreated/ versioned/ changed at extra costs due to non-availability of print- many multiples ready artworks or from the inability to track the right version when needed. So while procurement teams fight hard to save every rupee by hard price negotiations, more, on ‘processTHE TRANSFORMED MEDIA SUPPLY CHAIN the overall organization suffers far in excess due to inadequate media print costs’ associated management practices. More than just the absolute costs of print however, it is the with managing business impact in terms of go-to-market delays, productivity, environmental impact print fulfilment. and brand dilution that are far more significant costs to bear. By rationalizing the vendor base, defining standard processes for print requisition procurement, centralized digital asset brand content management and integrating key stakeholders – buyers, procurement, vendors – on a single automation platform, print spends fulfillment can be better controlled. Brand managers and marketing teams at a large Indian FMCG company for instance, found that by automating their print procurement processes and hiring a print management specialist, they were able to squeeze out more than 15-20% costs of print YoY. Digital Brand Asset Management: The foundation for Brand content in the form of artworks, logos, images, brand guidelines, design efficient marketing supply chains files, photography, multimedia files, videos etc., get created by multiple agencies in different geographies and at different points in time. Post their initial intended use, most brand assets lie unorganized making it a huge effort relocating the right file when needed. With multiple versions, adaptations of size, language and file formats, management of digital media assets and their approval, storage and retrieval processes become highly complex. Often, due to non-availability at crucial junctures, these assets are either recreated or repurchased adding to needless costs, time delays and stress on go-to-market initiatives. Maintaining brand integrity in print communications is yet another serious
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP email@example.comEnterprise Media Management: Impact on Marketing Efficiency Effectiveness THE TRANSFORMED MEDIA SUPPLY CHAIN Mid-Long Term Digital Asset Marketing Marketing Optimization • Multi-channel Integrated Marketing Resource Management • Advanced Asset Management (Print + Web + Mobile + eMail + Signage) • Marketing Supply Chain Integration • Customer Experience Management (Workflow Approvals) • Advanced Analytics-driven Marketing • Smart Assets/ Dynamic Media Catalogs ROI Gains: (5–15%) ROI Gains: (15–40%) REVENUES IMPACT ON BUSINESS COSTS DEC 2011 Media Procurement Process Marketing Personalization • Targeted Marketing/Personalization Automation • Print Procurement Spend Mgmt. • Data analytics/DAM/CRM integration • Inventory/ Distribution Optimization • Multi-Channel Campaign Management WHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT • On-demand Fulfillment ROI Gains: (5–15%) COSTS ROI Gains: (15–30%) REVENUES Immediate Lo Hi COMPLEXITY OF EXECUTION challenge. Each time a print collateral or stationery is printed by a regional office, the specifications may vary hugely. Standardization of paper, brand colors, logo usage and overall print quality gets harder to achieve and control as organizations grow rapidly and the need to execute localized print communications and promotional campaigns becomes a necessity. Simplifying access procurement of frequently purchased print items especially those with standard specifications such as business cards, stationery, forms, product manuals, sales collateral etc., via online media catalogs can solve many of above brand management problems. Self-service procurement portals allows users across the extended enterprise to access brand-controlled print without administrative intervention. Data-driven communications for more With increasing adoption of CRM and higher availability of structured consumer effective marketing data as well as data analytics tools and services, marketing has the opportunity to shift focus from mass-communications to more targeted, personalized communications. With variable data printing now a highly evolved technology, marketers have the opportunity to drive 1:1 messaging and higher degree of ‘personal relevance’ in their campaign communications. Over the last few years,
MEDIA COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP firstname.lastname@example.org early adopters of data-driven marketing across industry verticals have proved with overwhelming regularity a clear correlation between analytics-enabled campaignWHERE NEXT FOR ENTERPRISE MEDIA MANAGEMENT personalization and high response rates. Yet another exciting application of data-driven communications has been the emergence of Transpromo (transactional documents converted to promotional media) communications. Within BFSI, telecom and utilities businesses, transactional customer communications such as bills and statements are being transformed into highly personalized 1:1 marketing media in both print and electronic forms. Adoption of transpromo is gaining momentum not just as a means to cross-sell and up-sell new services but also to build stronger customer relationships - retention and loyalty. The upshot of such a strategy is the transformation of traditional cost centres such as statement printing into marketing and revenue centres. As is obvious, enterprise media management is multi-faceted transformationalDEC 2011 Driving the Transformation initiative that impacts not just key stakeholders within the business – sales Enterprise media marketing, customer service operations, procurement general administration - but management is also those across the entire media supply chain. With a strong focus on integrationTHE TRANSFORMED MEDIA SUPPLY CHAIN a multi-faceted of supply chain processes and leverage of customer data to drive relevant, transformational personalized, multi-channel communications, the CIO’s involvement as the ‘enabler’ initiative that of transformation is paramount. impacts not just the key stakeholders Enterprise media management must be driven top-down with functional goals within the business aligned to the larger business goals – managing costs and increasing revenue but also those realization. Implementing many of the strategies such as ‘on-demand’ print across the entire fulfilment, Transpromo, print procurement management and multi-channel media supply marketing requires expert interventions and also a collaborative effort with chain. marketing communications agencies, print service providers and logistics partners. The need to identify and stitch together a cross-functional task force with C-Level sanctions and long-term commitment are critical success factors. Efficient print also dovetails into sustainability and ‘Go-Green’ initiatives making the case for organized media management stronger. The challenges are many especially those stemming from managing process and organizational changes as well as having the vendors with the right mindset to build execution. But the results of getting it right and the dramatic impact it can have on business can hardly be challenged or ignored. The technology, knowhow and proof points for building more efficient and effective media management exist in abundance. What is needed to make it work is pure intent. Copyrights Intermedia Global, 2011