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Creative Suite 6: For Sale or Rent Prepress guru Zac Bolan pours through Adobe’s latest graphic-arts staple for its biggest advances and shortcomings, while weighing in on the company’s new Cloud approach



NEWS Australia’s PaperlinX sells operations in the U.S. and Italy, Nichols becomes CEO of Goss International, and remembering Marvin Foy, Lyman Henderson and Léo Thibault


CALENDAR August 2012 PAC presents a world without packaging waste, IDEAlliance hosts an online roadmap to predictability, and LabelExpo welcomes more than 65 new exhibitors to Chicago


INKJET Fourteen Billion Pages and Counting Aurelio Maruggi, VP and GM of HP’s Inkjet High-Speed Production discusses the meteoric rise of the T Series


COLOUR A Diamond Jubilee Tribute of Colour Pantone and Leo Burnett team up to celebrate the colour control of Queen Elizabeth II during her 60-year reign

Digital Printing


Data Services & List Management

CONTENTS Volume 51, Number 7


Variable Imaging



CLINT BOLTE PostalVision 2020 v2.0 Postal reformers congregate in Washington to discuss the world’s largest network, encumbered by 1940s work rules


VICTORIA GAITSKELL Project Phoenix Mike Maggio, VP of Global Engineering for Johnson & Johnson, describes how the Band-Aid is changing lives in Brazil



July 1992 The co-creator of Superman passes away at age 82, the Olympic Games kick off in Spain, and Ottawa’s Printed in Canada campaign hits a snag

Resources 16 Services to the Trade Cover Illustration: Clive Chan tel: 416.798.7557 email: 226 Industrial Parkway North, Aurora, ON Est. 1951

25 Marketplace JULY 2012 • PRINTACTION • 3


The Printery and Peace 14, 1824, political agitator William Lyon MacKenzie published a feature article his seminal newspaper, The Colonial Advocate, entitled Anniversary of the Battle of QueenOstoninn October Heights. Beyond his political views, the article would have personal significance for

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MacKenzie, who emigrated from Scotland to Queenston four years earlier. The Battle of Queenston Heights was the first major battle in the War of 1812 and one of the most important events in Canadian history, after United States regulars and New York militia had crossed the Niagara gorge. Together, British forces, Canadian militia and Mohawks led by the iconic Major General Isaac Brock, who was killed in the battle, thwarted the invasion despite the Americans’ numerical advantage. Victory at Queenston, more than any other battle during the war, led to a new sense of national solidarity. As 2012 finishes up, Canadians will begin to see more importance placed on the War of 1812 and the remarkable, ensuing peace that has existed between our country and the United States for nearly two centuries. Appropriately, many of the War of 1812 anniversary events will be led by a joint Canadian-U.S. entity called the Niagara 1812 Bicentennial Legacy Council. One of the cross-border organization’s first initiatives, in December 2011, was to put out a submission call for a commemorative medal Canada’s Governor General, David Johnston (left), design that will be handed out to congratulates Art Ellis for his medal design. dignitaries during the upcoming bicentennial celebrations, which will run for three years, as the War of 1812 did not officially end until 1815. The winning medal design came from by Art Ellis, who is a board member of the Mackenzie Printery and Newspaper Museum housed in William Lyon MacKenzie’s historic Queenston home. A ceremony was held in late-June to recognize Ellis’ work, which is being showcased at the Rodman Hall Art Cen- The faces of Art Ellis' winning design. tre at Brock University – named after General Isaac Brock – until August of 2012. The Mackenzie Printery itself – one of Canada’s most-remarkable working museums, which continues to be fostered by the printing industry – is open daily until September and will certainly be a focal point for hundreds of visitors who travel to the region to commemorate the War of 1812. Jon Robinson, Editor

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Photographed with the new Komori, George Mazzaferro, President, and at the console, Brian Auty, Plant Manager (right) and Borge Peterson, Lead Press Operator


























LYMAN HENDERSON at age 92 passed away at his Toronto residence in late June. He was best known as one of the builders of Davis+Henderson Limited, a Torontobased printing firm serving the financial market, where he served as President and Chairman, before retiring more than 25 years ago. Henderson, however, was only just beginning to impact Canada’s printing and business communities, flourishing as a professional writer, speaker and consultant – producing around 1,500 speeches, 150 magazine articles, publishing 13 books and booklets, conducting over 100 seminars and consulting with some 50 organizations. He was named as a Member of the Order of Canada in 1995 for his contributions to both Canadian business and culture. Henderson also served overseas in World War II, from 1942 to 1946, in the Royal Canadian Artillery as a Captain.

ian entity was officially purchased by Lecta for €45 million. Spicers Paper Inc., headquartered in Santa Fe Springs, California, is a significant U.S. paper distributor with 12 warehouse locations in the West and Midwest. Kelly Paper, headquartered in City of Industry, California, operates a chain of paper stores with 48 locations across four Western states. Combined sales for both companies were approximately US$500 million in the most-recent fiscal year.

THIERRY BARBEAU becomes Presstek’s Print Solutions Sales Manager for Quebec and the Maritimes region. He brings 28 years of printing-industry experience, having most recently worked with manroland Canada, where he sold offset presses into the commercial printing and packaging sectors. “I am excited that Thierry has elected to join the Presstek team,” said Todd Phillips, Presstek’s Director of Canada Sales. “He has strong customer relationships within the region and the right skills to grow Presstek’s RICHARD HAMILTON, Sarah Kesek and presence.” Prior to joining manroland in Michael Chirka of a Kwik Kopy franchise 2002, Barbeau previously worked at in Sudbury, Ontario, along with Mark Xerox and at Heidelberg Canada as a DisFlannigan from Pressdown Services, cel- trict Sales Manager. ebrate the installation of a DigiXpress envelope printing system. The machine produces full-colour envelopes from 3 x 5-inches up to 12 x 18-inches at a maximum speed of 50 envelopes per minute. The machine is also capable of producing postcards, labels and banners up to 47inches long.

CUSTOM COLOUR IMAGING & PUBLISHING of Toronto, Ontario, installed a second HP Indigo 5500 press to increase production capacity for its professional and retail photography business. The 39-year-old company, now housed in a 30,000-squarefoot plant, brought in its first HP Indigo 5500 five years ago. Custom Colour Imaging specializes in printing photos and LÉO THIBAULT, founder of Unigraph Inter- products for professional photographers, national and one of Canada’s printing pio- including photo books, cards and calenneers, passed away at his home in Montreal dars, gallery wraps and fine-art prints, and on June 23 after a battle with cancer. He a range of marketing materials. was 77. Unigraph International has a long and storied history in Canada’s printing industry, beginning with Wilbert Thibault, Léo’s father, who founded Commercial Litho Plate Graining in 1933. Léo joined the company in 1951, just as it was beginning to drive the use of metal printing plates in the industry. “There is no doubt our father was a pioneer in the North American market with the elimination of alcohol in the pressroom – Unigraph played a big, big part in that.” says Mike Thibault, Technical Vice-President. “We weren’t the only ones, but we certainly were WENDY CEBULA, Chief Operating Officer a major force back in the day when it was of VistaPrint, announced she is stepping really unheard of.” down from the role in order to spend more time with her family. She will remain with PAPERLINX LIMITED of Australia, amid its the company in a part-time role within continuing restructuring, has completed Vistaprint’s human resources department. the sale of operations in the United States After joining VistaPrint in 2000, Cebula led and Italy. PaperlinX’ U.S. operations, the company’s North American operations listed as Spicers Paper Inc. and Kelly and became COO in November 2010. The Paper Company, are being purchased by company has a large manufacturing facilCentral National-Gottesman (CNG) for ity in Windsor, Ontario, but is headquarUS$76 million, while the company’s Ital- tered in The Netherlands. 6 • PRINTACTION • JULY 2012

acquisition by the large Chinese conglomerate Shanghai Electric Group. In June 2010, Shanghai Electric, which also controls the Akiyama press brand, took full ownership of Goss, after becoming its largest shareholder one year earlier.

MARVIN FOY, a long-time leader in Greater Toronto’s printing community and founder of MFM Design & Print, passed away last month at age 75. Based in Richmond Hill, MFM Design & Print was established in 1984 and became one of the region’s first printing operations to place a significant emphasis on also providing marketing services for clients. Foy retired in 2005 and his sons, Martin, who is President, and Chris, Director of Business Developement, continue to drive the company, along with Foy’s daughter-in-law, Donna. Marvin Foy was an avid jazz drummer in his youth and enjoyed playing the guitar in his retirement years. He had a passion for sports such as golf and hockey, and was a Junior A/Junior B coach in his younger years. He was involved with various charitable organizations, primarily the Prostate Cancer Society and was a lifelong member of the Knights of Columbus. RICHARD NICHOLS becomes the CEO of Goss International, replacing Jochen Meissner who had led the press maker since 2008. Nichols does not have a printing-industry background, having spent the past few years within the executive structures of Terex-Demag Gmbh & Co., which is a large global construction and mining group. Meissner had worked at Goss for the past decade, including his four years as CEO. Meissner led the company during its

JON ZINK becomes Eastern Regional Sales Manager for Xitron, which develops software for prepress workflows, including products like Navigator Workflow Server, Navigator Direct-to-Film, Navigator Direct-to-Plate, Navigator GPS, Navigator Elite and KeySetter Connect. Zink will support Xitron’s dealer network in the Eastern United States, as well as the Canadian provinces of Quebec, Nova Scotia, New Brunswick, Newfoundland and Prince Edward Island. Zink’s prepress expertise is based on previous positions with companies like Kodak, Fujifilm and Xerox.

MICHEL MOATTI and David Martin, owners of Vivimar Creations in Montreal, oversaw the installation a new HP Scitex TJ8600 inkjet press into their Montreal facility. Vivimar Creations runs both inkjet and screen-printing technologies to focus on large-format printing applications. While the company currently works with a previously installed HP Scitex FB7500 machine, Vivimar’s co-owners have been using their new HP Scitex machine for smaller, customized applications primarily with retail clients. The HP Scitex TJ8600 reaches a maximum speed of 480 m² per hour at 600-dpi resolution, while also allowing for matte or gloss finishes. OBJECTIF LUNE signed an agreement with UK-based Intec Printing solutions to distribute Objectif Lune’s PrintShop Mail Suite VDP software. Intec manufactures colour printers for multimedia and heavy stock printing and has its own network of 70 partners. Objectif Lune acquired Melbourne, Australia-based PrintSoft and its line of products in July 2011. In the past year, it has expanded its presence in Europe by opening new offices in Italy and Russia and now operates in 21 countries.

TC TRANSCONTINENTAL PRINTING’s plants in Pointe-aux-Trembles, Quebec, and Vaughan, Ontario, have helped La Presse and The Globe and Mail (Metro Edition), earn membership in the International Newspaper Color Quality Club (INCQC), based on a competition held every two years to recognize world-class printing. More than 192 titles from around the globe vied for INCQC membership. Eighty-one publishing and printing companies from 29 countries achieved success. Germany now has the highest number of members at 24, followed by Switzerland with 10, and India and The Netherlands both with five. La Presse, printed by Transcontinental Metropolitan, and The Globe and Mail Metro Edition (Toronto), printed by Transcontinental Vaughan, are the only two Canadian members. TRADER CORPORATION, formerly owned by Yellow Media Inc., will no longer produce print editions of three well-known properties, including: Auto Trader, Truck Trader, and Bike, Boat & RV Trader. Trader Corp. will continue to print 27 titles across Canada, ranging from Heavy Truck & Equipment Trader to autoHEBDO in Quebec. IT World Canada also announced it will be going online only with its trade publications, including CDN, Computerworld, CIO Canada, and Direction Informatique. “Print just can’t come up with the kind of solid

proof of audience reach that online can provide,” Fawn Annan, President and Group Publisher of ITWC, told the CBC. The CBC story also attributes part of the decline in print magazines in Canada to the end of the Publication Assistance Program in 2010, which subsidized part of the mailing costs of many Canadian periodicals.

HEBA MAKHLOUF and George Makhlouf of Logos Graphix, with RAM Imaging’s Bill Stankiewicz, celebrate the installation of an HP Designjet L25500 inkjet printer. Now in its fifth year of operation, Logos Graphix specializes in wide-format production, including applications like display banners and vehicle graphics, as well as general signage. The company’s 60inch HP Designjet L25500, with its thermal inkjet architecture, reaches a maximum speed of 22.8 m2 per hour in 4-pass bidirectional mode.

DISTRIBUTECH, with locations in Toronto and Brantford, Ontario, has installed a Xerox iGen4 EXP press. The EXP designation refers to the inclusion of a 26inch (660 mm) sheet kit for working with a sheet size (14.33 x 26 inches) larger than the standard iGen4 format. Introduced to the market in 2010, the Xerox iGen4 EXP press reaches a top speed of 110 pages per minute. It is rated for a monthly duty cycle of up to 3,750,000 pages per month. In addition to print production, Distributech provides services to cover much of the marketing supply chain, including warehousing and fulfillment.

NORTH PLAINS, which purchased California-based Xinet in April 2012, added five executives to its management team. The company is also installing a new Office of the CTO to spearhead product development for both its TeleScope and Xinet product lines. North Plains Systems Holdings has appointed Mohan Taylor as a Principle Consultant to join its Office of the CTO, which already includes Steve Sauder, CTO, and Scott Seebass, VP of Engineering. The company also appointed the following four executives: Anthony Nehme becomes VP of Finance and Administration; Michael Stamler becomes VP of Global Customer Services; Eric Courville CANADIAN FLEXOGRAPHIC TRAINING becomes Director of Marketing and COMMITTEE held its 31st Annual Ontario Alliances; and Theresa Edwards becomes Roll Label Golf Tournament at the No- HR Director. bleton Lakes Golf Club in Ontario. The fundraising event brought out industry RESOLUTE FOREST PRODUCTS has idled its notables, such as FTA President Mark Mersey newsprint mill in Brooklyn, Cisternino, FTA Director Jay Kaible and Nova Scotia, due to falling newsprint FFTA Chairman Gregg Platt, as well as prices. The idling will affect 320 employretired Flexo Hall of Famer Dave Hors- ees. The operation is a joint venture beman. Students from Ryerson Univer- tween Montreal-based Resolute Forest sity’s 2012 Collegiate Phoenix Challenge and Washington Post Company. The team aided the event’s fundraising ef- mill has a capacity of about 250,000 forts by staging the putting contest, tons. Resolute operates 21 pulp and while the 1st & 2nd place 2012 High paper mills and 22 wood products facilSchool Phoenix Challenge winning ities in the U.S., Canada and South teams from Mississauga Ontario’s Gor- Korea. It sells paper products in over 90 don Graydon Memorial Secondary countries. The company is the world’s School were also on hand. largest manager of FSC-certified forests.



AUGUST McCormick Place, named for Chicago Tribune publisher Robert R. McCormick, is North America's largest trade show venue. The original structure first opened in 1960 and became a huge money-maker for the city of Chicago. Disaster struck in January 1967, however, when a massive fire decimated the building, previously thought to be fireproof due to its glass and steel construction. The replacement building, as it stands today, would not be complete until 1971.


Printing-sales guru Peter Ebner hosts a lunch-hour Webinar (noon EST) called Drive your Over-the-Counter Print Sales Through the Roof, with topics like three questions you must ask every walk-in and how to turn a business-card inquiry into a $1,000 order. $69.95


The Canadian Marketing Association, in partnership with Pitney Bowes, hosts a one-hour Webinar focusing on customer-centric call centres, under the theme of moving cost centres to profit centres.


IDEAlliance ends its new 3-part Webinar series, called A Roadmap to Efficiency and Predictability, covering G7 process control in one-hour sessions. (Part 1 took place on July 26, while Part 2 begins at 2:00 pm on August 2.) The organization claims to have qualified more than 1,000 companies through its G7 testing.


Ontario Printing Industries Association hosts its annual Toronto Golf Classic event on the south course of Angus Glen Golf Club – home to the 2007 Canadian Open – in Markham.





Two months from today, GraphExpo 2012 begins at McCormick Place in Chicago under the theme of Print Integrated. The 2012 version of North America’s largest printing tradeshow features Marketing and Newspaper Pavilions, as well as specialized events like Executive Outlook, Xplor Seminars and the ING Conference.

The Canadian Marketing Association hosts a lunchhour Webinar covering the sustainability movement from a marketer’s perspective. The event focuses on the nuances of carbon and water footprint, product lifecycle, design, label declarations, and stakeholder engagement.

One month from today, LabelExpo Americas 2012 begins at the Donald E. Stephens Convention Center just outside of Chicago. The 3-day September event is expecting over 400 suppliers and manufacturers, including 67 new exhibitors.

One month from today, PAC, The Packaging Association, hosts its annual conference in Ottawa, under the theme of Creating Next Life Solutions: A World Without Packaging Waste. The September event focuses on policy, innovative leaders and products, and green economics and jobs.

Pricing listed at standard rates, with * denoting the availability of member of early bird discounts.



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Fourteen Billion Pages and Counting uring drupa 2012, PrintAction spoke with HP’s Aurelio Maruggi about the speed at which printing and publishing operations around the globe are adopting the company’s T-Series of Inkjet Web Presses. At the time of the interview, HP had installed more than 70 such machines since their commercial launch four years ago. Together, these units had produced more than 11 billion pages. In early July 2012, just seven weeks after drupa closed, Maruggi led a Webcast to update journalists from around the world on the fact that HP has now installed more than 80 T-Series presses, which have produced over 14-billion pages. In the following Q&A from drupa, Maruggi shares some of the strategies behind the success of this unique inkjet architecture, which today drives three upgradeable press lines in the T200, T300 and T400 series.


PrintAction: Does the number of installed T-Series units surprise you, given their relatively recent release? Aurelio Maruggi: I’d say no – it was part of the plan. What is more surprising is their distribution, because we expecting fewer units in publishing. If I look at the number of units and pages, we are about 60 percent in publishing and 40 percent in production mail. They are well-balanced between North America and Europe, and we are now putting more into Asia where we started later. Why did HP focus so heavily on field upgrade-ability for the T-Series? When we introduced this strategy at drupa 2008, everybody said, “Yeah – this is the usual promise.” And when we showed the first press, people questioned why it was so big. There is a very good reason for why is it so big, architecturally, for it to be modular and scalable. I would say more than half of our customers who purchased the T300 have now upgraded to a T350. They went from having a product that was 400 feet per minute to one that is 600 feet per minute; and now even customers who purchased the T300 can upgrade to the T360. People are starting to say, “Oh yeah – this is real.” 10 • PRINTACTION • JULY 2012

We listened to customers who realize, that in the printing industry, you cannot afford to make an investment that becomes obsolete a couple of years later. In the past, you could afford some [machine obsolescence] for niche markets with high-value pages. But if you go into the mainstream production of books, for example, you need equipment that can stay on the production floor and remain competitive for five, seven or even more years. Do you envision a wider format T-Series model? It’s more important to focus on what the capabilities are and to develop them with customers. It is more about print quality, in a very broad sense. This also relates to the media range and flexibility, as well as productivity. How has HP advanced media flexibility with this unique inkjet process? There have been two main focuses, including the technology we developed for uncoated media, which is the bonding agent that allows the press to work with virtually any uncoated offset media. This has been available from the beginning of the T-Series introduction. The second, for coated or glossy media, we co-developed a set of media technologies branded as ColorPRO, which can also be applied through uncoated media. Customers of HP that use ColorPRO uncoated media can turn off the bonding agent on the press, because it is a media that has already been pretreated and will cost less to have colour in it. What data-processing challenges did you face with the T-Series? When I started in this business, I thought HP would be successful because, fundamentally, if you look at a digital press like the T300 or T400 there is as much printing technology as there is IT. HP is the largest IT company in the world and we are taking advantage of that knowledge, scale and infrastructure… in order to achieve the data range needed to sustain these presses. This is what we’ve done for companies like Courier and CPI, helping them with the IT infrastructure needed to take advantage of a digital solution.

What impresses you about the Canadian T-Series installs at Webcom, which now runs two presses? It is very similar to what other companies like Courier have done. It’s really a transformative play for Webcom – not in terms of printing the same thing with a different technology. It’s really about managing business in a different way, being able to attract new business with different services that traditional printers are not able to provide. Webcom is an example of a company that has been able to not only migrate pages they were already printing for publishers, but also attract new publishers. Can the T-Series be employed by less-industrial printing operations? Our very first [T-Series] customer, O’Neil Data Systems, now appears to be a giant because they are growing so fast, but in the beginning they were not a very large printer. They now have six Inkjet Web Presses. They have four in Los Angeles, as a result of how business grew in two years, and they have a new location in Dallas, where they already have two presses. This plant will be 100 percent digital. – Jon Robinson

Aurelio Maruggi, Vice President and General Manager of HP’s Inkjet High-speed Production Solutions Division, Imaging and Printing Group.


A Diamond Jubilee Tribute of Colour antone, in association with advertising firm Leo Burnett, has created a special colour guide in celebration of Queen Elizabeth II’s Diamond Jubilee this summer. “When you see footage, or read commentary, of Queen Elizabeth on her official engagements, at a Royal Wedding or even watching her horse race at the Derby, there is always mention of what she’s wearing,” says Justin Tindall, Executive Creative Director at Leo Burnett London. “It has been an everpresent subtext to the 60-year reign of our Monarch. The Diamond Jubilee Colour Guide is a celebration of that reign through colour and its meaning – a blend of Leo Burnett’s creativity and Pantone’s expertise in honour of the Diamond Jubilee.” The swatch-book lists 60 notable colour choices made by the monarch over the past 60 years, including date and occasion. The back


of each swatch also includes commentary by Pantone’s Leatrice Eiseman. “The Queen’s decision to favour one colour in every outfit is a strong style statement,” says Eiseman. “Monochromatic colour schemes make the wearer appear taller, delivering a more stately air – perfect given that Queen Elizabeth is not tall at 5'4". Choosing one colour theme also ensures the outfit does not detract attention from the wearer – which is particularly important if you’re the Queen.” The project, of which only 60 copies were produced (from which one will be presented to Her Majesty), was printed on an HP Indigo 7500 press using the 7-colour (CMYKOV) HP IndiChrome on-press Pantone emulation, which matches 97 percent of the Pantone colour range. – Clive Chan

PANTONE 13-0755 Primrose Yellow “The Queen’s royal wedding outfit from 2011 was Primrose Yellow. Yellow is a colour that speaks to the future with hope and optimism. William’s wedding was a time of national celebration and this choice of yellow complements the joyous mood of the occasion. It’s a colour that is highly visible (befitting a queen), while still not detracting from the bride.”



PostalVision 2020 v2.0 “Gang of Four,” Simon explained how they have developed “fundamentally new business models embraced by scores of companies.” They each represent business platforms with a bevy of integrated, consumer-oriented “planks.” These in turn are features, applications, programs, or services each enhanced by vibrant ecosystems. While rooted in emerging technologies, each firm in the Gang of Four have iconic leaders engendering a cultural mindset among employees that results in scale, experimentation and speed. These platforms hinge upon the strength of the plank ecosystems, which in turn promote external innovations from partners and developers. Such third parties have both sufficient incentives and powerful tools. Apple’s financial package, which is quite similar to the other gang members, offers 70 percent of the revenue stream to the developers and retains 30 percent for themselves. The tools are the Open Application Program Interfaces (APIs) and free software development kits (SDKs). During PostalVision’s panel discussion on Platform Perspectives, moderator Jeff Jarvis eloquently summed up the end goal: “When taken over by users, the platform has arrived, such as Craigslist.” He then asked the Platform Perspectives panel to describe what they see as USPS strengths. Syed Hoda, General Manager of Cisco Systems Emerging Solutions Group, used an interesting analogy of New York City’s massive metro system. He explained, that as a classic metro, NYC’s is mediocre without offering cell phone or WiFi access when in underground cars, and yet the system is extremely effective in physically networking disparate pieces of NYC. Marshall Van Alstyne, Professor of MIT’s Center of Digital Business, added, “Universal access and their unique security network are features if open to others [and] potentially fit the 70/30 revenue share model. Or possibly the Skype model where basics are free and advanced features cost.” Postmaster General Patrick Donohoe in his presentation highlighted a key strength: “(USPS is the) Largest physical network in the world – facilities, routes and people – Platform perspectives Referring to the combined power of Ama- though still encumbered with 1940 work zon, Apple, Facebook, and Google as the rules.”

he second-annual PostalVision conference drew 150 attendees to Washington DC’s L’Enfant Plaza Hotel for two days. This was two Metro stops from the city’s real decision makers: Congress and the United States Postal Service. No one from Congress could squeeze PostalVision into their itinerary, but the new Digital Solutions President and Strategic Planning Manager of the United States Postal Service (USPS) were in attendance, as well as representatives of two primary postal unions. The USPS, clearly the core of an intertwined trillion-dollar business sector, directly impacting the employment and livelihood of some 9-million citizens (a quarter of Canada’s entire population), was intellectually chopped, diced, and casseroled back together by truly some of the most intelligent, degreed and experienced academic, political, high-tech consultants and association executives on the planet. The real benefactors of this conference were the entrepreneurs in attendance. They recognize: (1) Congress will never allow the USPS to go under, (2) USPS can only embrace digital technologies via work-share contracts with the private sector, and (3) USPS, despite cascading physical mail volumes, is still a $50 billion business projected to handle half of the world’s mail volume by 2020. During his opening remarks, John Callan, founder of PostalVision 2020 and Managing Director of the consultancy URSA Major Associates, stressed the need for all stakeholders to heed calls of reason and action to ensure the USPS meets its full potential. The current state of the USPS is a big problem with no easy answers, affecting all Americans – and most Canadian printers. Its future requires mutual reason, compromise, and sacrifice. Future vision is required – fueled by imagination, radical thinking, collaboration, and commitment. After his Clarian call, Callan introduced the keynote speaker Phil Simon, author of The Age of the Platform; How Amazon, Apple, Facebook, and Google Have Redefined Business.



Ground growth

Describing the physical layer of the world’s largest crown mailing system, international postal consultant Pierre Kacha said, “The USPS delivered 168-billion pieces, managed a database of 138-million addresses and 228,160 delivery routes in 2011.” This includes a sophisticated integration of business processes across a broad product mix. Mark Schoeman, President of Atlanta’s Colography Group, detailed key trends in this physical layer. Ground parcel shipments are growing at 9-plus percent a year, but is the least profitable segment of the UPS/FedEx product mix. DHL’s parcels in the United States are actually delivered by USPS. Unfortunately, Schoeman described how the contribution from parcel business is not growing and the USPS’ last-mile network is the organization’s most costly operational element. As a result, incremental volume opportunities exist to cooperate with UPS/FedEx, so long as the USPS‘ costing model is not incremental, but fully costed. Matt Swain, Associate Director of InfoTrends’ Document Outsourcing, described the Digital Layer trends as 55 national posts throughout the world are offering e-services and how all of this has ramped up since 2009. In the United States alone, InfoTrends projects that two-billion documents will be delivered to digital mailboxes by 2015. Hybrid mail

The PostalVision panel discussing Digital Layer trends included the Universal Postal Union (UPU) representative. The UPU was created by the United Nations for the purpose of managing communications globally. The e-business expert from the UN, who is part of the UN’s Directorate of Business Development for its 192 member countries, was Farah Abdallah. Her responsibilities include the development of an Internet toplevel domain, “.post,” which will serve as a platform for the formation of international hybrid postal services. These would be the integration of digital and physical networks based on identity and address management. Management and control of intellectual property can certainly be enhanced by this global capability, which also poses an interesting challenge: While the opportunity is

attractive, questions arise as to who will control this network; and whose investment is going to put it together. The USPS brand lends itself to be very trustworthy in consumers’ eyes with regard to participating in the authentication of identifications, plus they have the extensive experience of their own police force in dealing with ID fraud. Would the sender or receiver pay for these services? Within the USPS‘ business model, only the sender pays. The USPS has no expertise in digital product development, plus United States statutes prevent the USPS from competing with the private sector. Hence, the only open venue is a work-share arrangement. The UPU initiative has no doubt attracted the attention of the U.S. Federal Communications Commission, as well leaders focused on United States policy perspective. Gene Del Polito, President of the Association of Postal Commerce, commented, “Hybrid mail has been discussed for 15 years. The USPS does not have the financial resources or the capabilities to move in this direction.” Del Polito also pointed out how there is a “long history of the USPS not playing well with other children in the sand box.” When a novel idea comes up, the USPS insists upon seeing perfectly predictable results from the proposal. If such measurements are not readily available, they will not even test the idea remarked Del Polito. One of the global leaders in the business of hybrid print and mail was in the audience, listening to the Hybrid Mail panel. Glenn Lombino, Founder and CEO of NYC’s Digital to Print (, described an example of helping a graphics design and imaging firm protect its intellectual property. DTP’s proprietary software finds an unauthorized use of a branded or copyrighted image. They send a legal letter to the user to pay a royalty or to cease and desist. Lombino said that cash flow is generated from this letter in 28 percent of the cases. Patent potential

John Cronin, Managing Director of ipCapital Group, an intellectual property consultancy, has been responsible for the submission of one precent of all patents issued in the United States. His staff researched the postal patents by the dominant suppliers and showed that UPS had the Continued on page 24

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