Page 1

supporting print sales & Marketing Executives

September 2011

Making the grade Navigating the Learning Curve from PSP to MSP Inducement to Innovate An interview with Innovation Catalyst Mail Call! Interview with postmaster General Patrick Donahoe

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“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” – Jack Welch, former chairman and CEO of General Electric

Publisher mark potter

September 2011

Marketing Manager brandon clark MANAGING EDITOR lorrie bryan ART DIRECTOR brent cashman

Editorial board keith bax Research Data mike kyle Pace Litho chris petro GlobalSoft tom moe Daily Printing dean petrulakis Rider Dickerson david bennett Bennett Graphics tony narducci O’Neill Printing

P2

P12

Making the Grade

Publisher’s Thoughts

Navigating the Learning Curve from PSP to MSP

Mighty Mo

P4

Marketing Insights

P18

P6

An interview with Innovation Catalyst

Inducement to Innovate

Print In The Mix: Fast Facts P8

CMO Council Marketing Facts

P20

Mail Call! Interview with postmaster General Patrick Donahoe

P10

Best of Reflections

CANVAS, Volume 3, Issue 5. Published bi-monthly, copyright 2011 CANVAS, All rights reserved, 2180 Satellite Blvd., Suite 400, Duluth, Georgia 30097. Please note: The acceptance of advertising or products mentioned by contributing authors does not constitute endorsement by the publisher. Publisher cannot accept responsibility for the correctness of an opinion expressed by contributing authors.

CANVAS P1


Publisher’s thoughts

What Are You Made Of? Last week, I was watching the US Open tennis tournament. I tuned into a fourth round match with the number one seeded Caroline Wozniacki and the 16th seeded Svetlana Kuznetsova. Although, I don’t follow tennis, the commentators were talking about how Wozniacki’s form was in doubt. The other perennially nagging question hanging over Wozniacki’s head was the absence of a Grand Slam title to match her No. 1 ranking. This tournament provided her with the last chance of the year to validate the ranking she has held for 47 weeks. Meanwhile, Kuznetsova, the 2004 U.S. Open champion, was fired up and was hitting blistering forehand after blistering forehand. Wozniacki was in for a tough night and all the questions about her ability to close and persevere would be put to the test. The first set went to a tiebreaker, where Wozniacki held a 5-2 lead and was just two points away from taking control of the match. However, Kuznetsova seemed determined and won the next 5 points to steal the first set. What I noticed was that Wozniacki’s demeanor never changed. I wondered if she cared at all or if she was simply calm in the face of the storm. I kept watching. In the second set Kuznetsova took a 4-1 lead and the match looked like it was over. I was still curious about the expression or lack of emotion on Wozniacki’s face. Maybe she didn’t care. Maybe she was content with her place in the game and wasn’t that interested in pushing through adversity. And then something changed. Wozniacki won the next four games, won the second set with fist pumping shots and then destroyed her opponent in the final set to move on. The relentless commitment to the bigger picture wore her opponent down. Regardless of knowing whether she won the championship at the time of this writing, I still appreciated the couple hours I spent watching this kid play. It may be a trivial analogy, but it was a good example of taking adversity and turning it on itself. When the chips are down, everyone doubts you, and there is negativity everywhere, what will you be made of? Will you cry and whine and wish things were easier? Or, will you focus on what you have, count your blessings, and dedicate yourself to the hard work it takes to truly succeed? Unemployment has skyrocketed, the markets are unstable, and people are scared. This has gone on for a few years now and makes a great many people want to pull back. However, now is the time to move forward and commit to a bigger picture. A relentless commitment to your clients and being confident in the face of adversity is a winning combination. Do you have it? Enjoy our latest edition of CANVAS digital. Making the Grade is a fantastic insight into how well we as an industry are doing in the face of adversity. In addition, interviews with the Postmaster General, Patrick Donahoe and Saul Kaplan, Founder of the Business Innovation Factory offer two of the most compelling figures’ insights on what it will take to persevere through this trying time. I hope you love it. Warmest regards,

Mark Potter, Publisher P2

CANVAS May 2011


14 Million Americans Scanned QR Codes via smartphone in June Some 14 million mobile users in the US—or 6.2% of the total mobile audience—scanned a QR (Quick Response) or bar code on their mobile device in June 2011, according to data from comScore MobiLens. The most popular source of a scanned QR code was a printed magazine or newspaper, with nearly one-half (49.4%) of mobile audiences scanning QR codes from that source, followed by product packaging (35.3%).

Source of Scanned QR/Bar Code - June 2011 Total Mobile Audience U.S. Age 13+ Source: comScore MobiLens QR/Bar Code % of QR/Bar Audience (000) Code Audience* Total Audience: Scanned QR/bar code 14,452 100.0% with mobile phone Printed magazine or 7,138 49.4% newspaper Product packaging 5,101 35.3% Website on PC 3,957 27.4% Poster or flyer or koisk 3,393 23.5% Business card 1,940 13.4% or brochure Storefront 1,850 12.8% TV 1,693 11.7% *Percentages will not sum to 100% as respondents may select more than one source of QR/bar code scanned

Demographic Profile QR/Bar Code Scanning Audience - June 2011 Total Mobile Audience U.S. Age 13+ Source: comScore MobiLens

Total Audience 13+ yrs old

QR/Bar Code % of QR/ Audience (000) Bar Code Audience

Index*

14,452

100

100.0%

users (27.4%) scanned a code

Gender: Male

8,743

60.5%

125

from a website via PC and 23.5%

Female

5,709

39.5%

76

scanned codes from a poster/

Age: 13-17

1,076

7.4%

108

Age: 18-24

2,402

16.6%

136

Age: 25-34

5,317

36.8%

211

Age: 35-44

2,827

19.6%

117

bar codes during the month were

Age: 45-54

1,798

12.4%

68

more likely to be male (60.5%

Age: 55-64

594

4.1%

28

of the code scanning audience),

Age: 65+

437

3.0%

22

skew toward age 18-34 (53.4%)

Income: <$25k

1,193

8.3%

54

Income: $25k to <$50k

2,597

18.0%

79

Age:

Income:

Income: $50k to <$75k

2,756

19.1%

96

Income: $75k to <$100K

2,689

18.6%

125

Income: $100K+

5,217

36.1%

134

*Index=% of QR/Bar Code Scanners % of total mobile users X 100 Index of 100 indicates average representation P4

More than one-quarter of mobile

CANVAS May 2011

flyer/kiosk. Mobile users that scanned QR or

and have an annual household income of $100k or above (36.1%).


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Fast Facts Shoppers Looking for Savings Turning to Print http://printinthemix.com/fastfacts/show/471

A new study from the consumer research firm Scarborough Research finds that American consumers continue to actively seek out ways to save money on everyday expenses. Coupon usage for household groceries is up 24% since 2006 and shoppers are turning to a variety of resources for their coupons. While more than 22% are utilizing digital media such as email, text messaging or Internet sites to obtain coupons, the Sunday newspaper still remains the top source for savings. Almost half of all Americans get their household coupons from the Sunday newspaper. In-store circulars and direct mail follow as top sources.

Leading Sources for Household Coupons 49% 43% 33% 26%

24% 19%

Sunday Newspaper

P6

In-store Coupons

Direct Mail

CANVAS May 2011

In-store Circulars

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19%

Product Packages

17%

Magazines

14%

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Internet Sites

Email or Text Messages


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CMO Council Marketing Facts CPG – Consumer Purchased Goods •D  uring the first half of 2011, US consumers saved a total of $2 billion using CPG coupons from all types of media. (See graph) • First half of 2010 - Up 5.3% from $1.9 billion • First half of 2009 - Up 11.8% from $1.7 billion. • First half of 2008 - 21.4% jump from $1.4 billion • First half of 2007 - Consumers also saved $1.4 billion.

1st Half Savings From CPG Coupons 2.5 2 1.5 1 0.5 0

2007

2008

2009

2010

2011

• Face values of CPG coupons have been steadily rising in the first half of every year since 2008. (See graph) • In the first half of 2011, the average face value of a CPG coupon was $1.17, up almost 3%. • $1.14 in the first half of 2010, which was a 5.5% increase. • $1.08 in the first half of 2009.

Face values of CPG Coupons 1.2 1.15 1.1 1.05 1 0.95 0.9

2007

2008

2009

2010

2011

• CPG coupon face value growth in the first half of 2009 was about 1% from $1.07 in the first half of 2008, which was a 6% increase from $1.01 in the first half of 2007. •U  S consumers redeemed 1.75 billion CPG coupons in the first half of 2011, according to other July 2011 data from NCH Marketing. This represents a 2.9% increase from 1.7 billion CPG coupons redeemed in the first half of 2010.

P8

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al sn’t re

n. I wa , 2011 s p er s o 2 le 2 a ofest s s g u r my pr Aug o f ugglin s r t t c e s t e a o p lways t tle res , I w as From N os e I a I had li r s ag o

a up p and t 15 ye als – I s my life n h Selling io it “Abou s s w do rofe fined. p e ld r f u e o o r h o e hat I s ng lin a bit m lief. s u re w at was om a lo r h f t e g that be m in h o d t c e e t g c m e fl avin lize how g so a n c e re t to rea sion. H e doin m r r b a o t f s ld r I u e s ho my p ed s t a ing did t that I me an d t of fail perceiv n o e e t h l t m t h o ug h o s d s o c ra lling an embar t s eem I was se did no ith the t r a w e l h t a p t e a p to d produc til I had ith the w d Not un ie p reoccu as so p w I g . s a w as lettin lucky I hat I w t , id d ost hat I . I alm y b tus of w p li ity s own por tun really d t the op o g and ore y job cared m I lost m e s o pp f my elf. I su ught o o h on mys t le eop ght what p ey thou h t about t a h nw have ion tha should I profess . n o ers satisas a p n the o of me d e s u ore foc uilding from b been m t e g I would g. fac tion learnin d n a s u t t he ship mined et a b o relation g r o s deter f a o w t t a d h d n e a ss of w he f ac t d us t r y I decid ed it. T c tivene t the in v a u r t lo o g t I b a in a s — u ed I say it c t that g m o re e d fo c perceiv learnin e re s p e g. Dare d s t ar t h n d in t a e o t w d r g o a s in t ell and s h at I wa e s s. I s I w as s like wh f busin ought s y o h ll t y a t g e u r in a t o be ock tail ebilita e gan t o n t he hit at c urn, I b s o me d t a f o s In a . o d w g I t g. ee much. ouse. r makin to succ ed to le o h e id o p e t c a h e t p le d t f t o ed o nce I be a li go , I ro c k h e ar t is, that t. May r lingo b out t ser ved lo e a e b a d fi y y ll n s u a to p er g seriou upatio poetic as a p a my occ uld like e wa x d s o me o a b m h w jo r I I a . , y e e it h ed m name ha y to liv ed to I enjoy e, you o ne d a t?” Wit gather a id d s s h a t d lt h w e is I f o , if as c r n side, nd why y Mar k par ties “Oh, a y, scree y: “He it h a c it s a w p o t o ess, es p o nd ever.” d us e d A nd I Brightn last for r.” I’d r se frien y job. e ld p lo m u c a o d p y e w t c k, m ab o u use it h I lov going ing. He talking w muc , “Beca tunit y o y u r a h o o s f y p o ld p h u it wit ho r t h e wo e c au s e g b ut o s p e nd nothin n t he s is face, e f un b o is k h o d e n r p e o e s h e u ld c smil ming ey cou ustr y. T tely fo r a n s fo r his ind omple n ew t h t t c k e e r r y v a e e h lo e h it I T at is e r ves. W st like s ee t h r y des e y job ju t ’t s m n u a d d c e in v lo s.” at this ne w ho inspire . Anyo p ec t t h e s d v r e r a lo e w t r h a t fo wh lacks that is r simply c au s e e b g term o aptin are a d a n d we

nce o t a h t t is, c a f e h t go T e l o t ed I decid debilitating e of som s and show t though ect that my p , the res on deserved ti a p u c se. c u o o h e d th e k c o r I

P10 CANVAS May 2011


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P12 CANVAS May 2011


O

ne of the most common recurring dreams people report is the one where they are a student, they show up for class and are surprised to find out there’s a midterm or final exam for which they are not prepared. Sound familiar? You arrive for class a few minutes late, the teacher is handing out exams and you’re anxiously wishing you had studied, wishing you had come to class more often, wishing you had at least remembered to bring a pencil to take the test.

Navigating the Learning Curve from PSP to MSP by Lorrie Bryan

Dream interpreters often associate this dream with feelings of coming up short and being unprepared for life. Even if you dismiss the notion of dream interpretation, you likely see the parallel dynamic prevalent in the print industry today. Rapid acceleration of digital technology and the global economic recession have necessitated a need for transformation in the print industry. Although there is ambiguity about what the emerging successful business model should look like, industry leaders generally agree that printers who aren’t preparing—doing their homework and showing up with tools—are not going to pass the test and make the grade.

CANVAS P13


Making the Grade

“The transformation of the indus-

No Printer Left Behind

try based on market conditions is

As print leaders grapple with the new reality and explore

underway and is no longer in dis-

various business models on the marketing service pro-

pute. As in other industries, the ac-

vider (MSP) spectrum, increasingly the consensus is that

ceptance and rate-of-change for the

doing nothing is not a sustainable plan and transforma-

print industry is varied,” affirms Yis-

tion is needed to survive. Jim Daly, director of Digital

hai Amir, vice president and general

Services at PBM Graphics, gives the industry a C- for

manager, Indigo and Inkjet Press So-

embracing change. “Too many printers want to be re-

lutions – Americas. “Many forward-

warded for putting ink on paper and are not focusing on

looking printers, including startups,

the new reality,” says Daly. “They need to be deciding

have embraced the changes and

whether they want to be infrastructure providers or pro-

structurally adapted their business

vide marketing campaigns, and if they want to develop

model, hired or trained staff with

internally or partner.”

necessary skills, and aggressively

Transformation is not easy. When the federal government

teamed with industry partners. At

decided to transform the country’s struggling schools, they

the other extreme, many printers

proposed standards-based education reform. Two basic

have focused on the core legacy

principals are at the crux of the landmark No Child Left

business only, and in some cases are

Behind legislation: setting high standards and establishing

outsourcing significant amount of

measureable goals. As print moves from a manufacturing

digital print to other providers.”

model to a comprehensive service model, measurements of quality, cost and delivery are no longer appropriate performance indicators. What should be the goals and the new rubric for MSP assessment? Amir suggests that for printers to be successful today they must position themselves as result-oriented, value-add service providers. “In a manufacturing environment, printers competed for “print jobs” and did not require an intimate knowledge of their clients business, or business process. The emphasis was on the output. Today the emphasis is increasingly on the outcome rather than the output.”

Back to School Tom Obrien, co-founder and partner at AccuLink, points out that printers have a strategic advantage in the MSP market because

P14 CANVAS May 2011


Making the Grade

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” – Jack Welch, former chairman and CEO of General Electric

they’ve had a first look at PURLs, QR codes, and other cross-

Science

channel marketing tools. But he doesn’t give the industry

In addition to an intimate knowl-

high marks either. “By and large we are more accustomed to

edge of their client’s business or

dealing with purchasing departments rather than marketing

business processes, Amir suggests

departments, yet we were the first industry to be exposed

that for most commercial printers,

to a lot of the new marketing tools. Unfortunately many in

the traditional manufacturing ori-

our industry look at the tools as an end, but the shiny new

entation needs to be augmented

tools are worthless without strategy and the expertise to use

with a web-savvy marketing mind-

them optimally.”

set, and strong IT competency. Key

Homework (research and development) begins with

science lessons should include:

the new products and services in the market. But that’s

strong IT development and man-

not where it ends. To make the grade, print leaders need

agement

to also be studying and experimenting with new busi-

competency including cross-me-

ness models and endeavoring to change the prevailing

dia campaign development, man-

cultural mindset within the industry. “Simply printing

agement, and ROMI (Return on

PURLs and giving a client keys to a data-gathering dash-

Marketing Investment).

skills,

web

marketing

board does not equate to being an MSP. To excel, leadership needs to change the culture and commitment of

Math

the entire organization to recognize this new focus on

Daly says that printers need to rethink

MSP instead of the old process-oriented enterprise,”

the math and the formulas by which

adds Lindsay Gray, co-owner and vice president of Ac-

they measure profitability. “We tend

cuLink. “The most difficult lesson for printers to mas-

to see production as unique transac-

ter is that the client expectations are radically different

tions rather than a process. We ap-

from those of the traditional print buyer in the past who

ply rules of profitability that don’t

bought transactions rather than programs.”

have any bearing in reality. Costing

As Amir notes, “The real challenge is for the large ma-

standards were created from esti-

jority of printers who have made a financial investment but

mated equipment utilization and run

have not yet effectively addressed the requisite aspects

speeds, but they became unchange-

of sales, marketing, value-add services, and realizing the

able dogma. We have to quit think-

profitability benefits of an MSP based business model.”

ing in terms of cost-plus and learn

Perhaps to succeed as MSPs, printers need to revisit

how to create value and evaluate

some fundamental lessons. Here are a few curriculum

what our prices should be relative to

updates suggested by industry leaders.

customer opportunity.”

P16 CANVAS May 2011


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Making the Grade

Language Arts

the table; speak their language, know what their metrics

“It is absolutely critical for printers to

are…ask different questions, help the customer define

understand that marketing decision

their objectives. We have to learn to bring ideas to mar-

makers operate under a completely

ket rather than just asking customers if they need any-

different perspective than print buyers.

thing printed,” Daly adds.

The language and expectations could not be more different,” says Gray.

“This is the critical starting point,” agrees Amir. “It is not enough anymore for printers to just deliver the print

“To survive, printers have to stop

service they are asked to deliver. Printers need to un-

thinking like printers and start think-

derstand their customers’ business plans—how they go

ing from our customers’ perspec-

to market, and what their biggest opportunities and chal-

tives. We have to learn how to make

lenges are.”

a sale with multiple stakeholders at

From the School of Hard Knocks Daly suggests that one of the most important lessons that printers need to learn is how to leverage their current customers to create new opportunities. “It’s a new market that requires a new and different mindset, but, by and large, our customers are the same customers we’ve always had. You spend years earning trust, learning about their business and building a relationship, and it’s important not to squander that. Our customer relationships are the most valuable part of the whole thing,” Daly affirms. “We need to learn to enrich and leverage those valuable relationships. Years ago my wife and I created a typography company. We were very successful for about 10 years. Then I saw the end of professional typography coming, ahead of my colleagues, so we sold it. The giant mistake I made was that I didn’t understand that I had relationships with a very good customer set that I never leveraged. I let it all go away—all that trust that I’d built, all that understanding of their businesses went away. I squandered it,” Daly explains.

”Before you become too entranced with gorgeous gadgets and mesmerizing video displays, let me remind you that information is not knowledge, knowledge is not wisdom, and wisdom is not foresight. Each grows out of the other, and we need them all.” – Sir Arthur C. Clarke, British writer and scientist

P18 CANVAS May 2011


Daly suggests that printers should look to their customers for help navigating the learning curve on the way to becoming MSPs. “Printers need to stop thinking like printers and start thinking about their value to their customers. The customer relationships that they have will drive those new business models a whole lot faster. So they should look at their current customer set continually to get an idea about which direction they should take, which services they should add, what business model leverages their core strengths.” There are those who say you can manipulate your dreams while you are dreaming. When you get to the part where the teacher is handing out exams and the anxiety and dread start setting in, you just look at your hands then tell yourself that you know this material, and magically you do…perhaps. But you might sleep better and avoid this recurring dream altogether if you do your homework now. Create a business model that leverages your strengths and your customer relationships and prepare for the future now.

Be sure to visit HP’s Graphic Arts about the future of digital print and variable data.


Inducement to Innovate An Interview with Saul Kaplan, Innovation Catalyst by Lorrie Bryan

vator and everything is an innovation. In fact no one is, and nothing is. But you have to get below the buzz word. I have a very simple definition to offer. To me innovation is a better way to deliver value. It is not an innovation until it solves a problem that a customer is having—it delivers value in the real world, solves a problem and helps get a job done that a customer is trying to do. A lot of people confuse innovation with invention, and think that they just need new technology to solve a probQ. What does business innovation

lem. But an innovation is not the same as an invention.

mean to you? Is it different than

Inventions are important, and it’s nice to have new tech-

technical or product innovation?

nology, but frankly we have more new technology that we

A. I like to say that it is the innova-

can use. We’re not short on new technology, but we are

tor’s day—everyone is interested

short on the ability to use new technologies to solve prob-

in what innovators have to say dur-

lems and deliver value to customers.

ing bad economic times. That’s the good news. The bad news is that

Q. What types of business models do you see on

we’ve turned innovation into a buzz

the horizon?

word. Everyone defines it differently.

A. I am a huge believer that all leaders in all organiza-

Everybody is talking about the word,

tions need to learn how to do R and D for new business

and, of course, everyone is an inno-

models. Think about it—they do R and D (research and

P20 CANVAS May 2011


We get so wrapped up in our current business models that everything we see is through the lens of the current business model. development) on new products and new technology. And

A. All companies are vulnerable to

they need to do that for business models as well. In the

disruptive innovation. So they have

21st century, as a leader, you’re going to have to do R and

to be proactive and commit part

D for new business models—literally experimenting with

of the organization’s resources to

potential new business models on an ongoing basis. If you

developing ideas, prototypes. Test

don’t, you are going to be vulnerable to being disrupted.

in real world, give freedom and autonomy. That’s the biggest chal-

Q. How do people start thinking disruptively? As-

lenge for most large companies that

suming that disruptive thinking causes change and

I talk with. They do a lot in innova-

sustainable growth, how do we go about it?

tion space, but most of it is focused

A. The first thing that needs to happen is that you

on how to make their current busi-

have to take a customer view. We get so wrapped up

ness model more effective—which

in our current business models that everything we see

is important—but a small part of

is through the lens of the current business model. We

your effort needs to be focused on

have to change that perspective, begin to understand it

potentially transformative new busi-

through the lens of the customer instead of the lens of

ness models. And you need to make

the current business model, and get inside the heads of

sure the resources are carved out to

our customers and see what they are experiencing and

support those types of experiments

what they are trying to do. You have to begin to think

as well.

creatively about new and better ways to deliver value to the customer. A perspective change is key. Secondly, you have to be willing to experiment with dif-

And that’s the piece of work that never gets done. It’s almost always about

incremental

improvement

ferent ways to deliver value. A lot of this is about experi-

in today’s business model, and al-

menting and creating platforms and ways that you can

most never about discovering what

play with new configurations and ways to deliver value

the new business model is, even if

that aren’t constrained by your current business model.

it might disrupt us. I want to know, understand, be in a position to be

Q. Why have large companies failed to sustain inno-

proactive and potentially migrate

vation and what insight can you give us into the chal-

from the current business model to

lenges that innovative companies face?

a new one.

Coming in October CANVAS, Saul Kaplan weighs in on what it takes to win in the print industry in our feature article Business Innovation. Saul Kaplan is the founder and chief catalyst of the Business Innovation Factory (BIF) in Providence, Rhode Island, and blogs regularly at It’s Saul Connected. Follow him on Twitter: @skap5.

CANVAS P21


Mail Call! Interview with Postmaster General Patrick Donahoe by Lorrie Bryan

Q. Can you give us a prognosis on the Postal Service? A. We’ve experienced a lot of financial challenges—just like any Patrick Donahoe

other business—due to large increases in digital communication and commerce, and the economic turmoil over the last few years. But going forward, we believe the post office is important for the

American economy and for society in general, just like print is. We still think we have a very good partnership and think there are plenty of opportunities going forward. The key thing is getting through some of these short-term issues; getting some of these things resolved and getting our cost structure back into the right format for a smaller revenue base going forward. We’ve lost 26 percent of our First-Class Mail volume. We’ve plotted the revenue line, and that requires that we make changes in the physical network that we run—our delivery, retail and processing networks—in order to catch up to the loss and get ahead of the loss.

P22 CANVAS May 2011


Mail Call!

We are proposing eliminating Sat-

very viable option. One thing that we are trying to do, as

urday delivery. That will save us $3

we take costs out of our system, is to remain an afford-

billion right off the bottom line. Sat-

able partner so that the print industry can stay viable.

urday is by far the lightest delivery

We both need each other. If we’re not healthy, it’s aw-

day, a substantial number of busi-

ful hard to get what you print into customer’s hands. And

nesses are closed on Saturday and

if you’re not healthy, there’s no volume in our system. So

our research indicates it is also the

it’s critical that we work together.

lightest mail reading day. We also

We are doing anything and everything within our

are continuing to consolidate routes

power to stay viable both economically and from a value

as the volume of mail shrinks down.

standpoint. We are not shy about making changes. It’s

Another thing that we are going to

important for print leadership to know that we view our-

be doing—and this will have some

selves as a partner—always have and always will. More

impact on the print industry—is we

than ever we are looking for creative suggestions from

are going to be making some pro-

the printing industry to use mail. We’ll give it a try.

posed changes to our logistics infrastructure. On September 8th, we

Q. What kind of

are going to be announcing a reduc-

innovation can the

tion in the number of our processing

Postal Service get into?

facilities from approximately 500 to

A. One of the things that we’re

fewer than 200. We will be changing

working on is in the digital

some First-Class Mail service stan-

world. We think that we can

dards, and we will also be reducing

provide a role in secure digital

the drop points. So that should save

transmission. And we are talk-

the print industry people money

ing with a number of custom-

where they are dropping into our fa-

ers now to get their ideas and

cilities. It will also save us about $3

actually trying some of these

billion in operating costs. The other thing we are doing is reviewing our post office network. We are

things. It’s a world outside the print world, but anything that we can do to generate revenue and keep our whole organization healthy benefits the print industry.

looking at alternative access for 3,700 fa-

We will continue to innovate directly with the print in-

cilities that have less than an hour’s work

dustry. One of the big things we have going right now is

per day. We are looking at contracting

the use of the QR code with Standard Mail. For July and

out or consolidating. We think this will

August we offered a 3 percent discount if the mail had a

save us about $1.5 billion annually.

QR code printed on it, and we are finding that 30 percent of Standard Mail used a QR code for the last two months.

Q. Direct mail is the lifeblood of our industry. How do you see things

Q. Where do you see the role of print in our lives

changing for the printing industry,

going forward?

and what changes are the ones we

A. I think that print will continue to be an important part of

should all embrace?

people’s lives. It’s nice to look at and use the computer with

A. Print is challenged with the Inter-

the Internet for business and research, but there’s nothing

net just like mail is. It is critical that

better than a magazine, a catalog, or printed mail. There’s a

we work together to keep print as a

lot of innovation in the print industry that we’re happy to see.

P24 CANVAS May 2011


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Canvas Magazine | Making the Grade  

Marketing magazine that details how to navigate the learning curve for PSP (Print Service Provider) to MSP (Marketing Service Provider), sta...