PRINTING INDUSTRIES’ ACTION AGENDA

PRINT21

“Navigating the 21st Century”

Printing Industries Association

of Australia

• The new environment

• The origins of PRINT21

• The role of Printing Industries

• What sort of industry will we see?

Presentation to theCreator-to- Consumer Workshops

October 2 & 3, 2001

Things will never be the same …

Telecom industryTelecom industry

main frames

desk top computing

PC-LANPC-WAN

Intranet/Internet

electronicpublishing and entertainment

IT IndustryIT Industry

Media IndustryMedia Industry

The

Converged

industry

The

Converged

industry

mobilitymobile/mobile

PSTN

PTNISDN

PC/Servers

NewTelecomIndustry

NewTelecomIndustry

3G/mobile Internet

Carrier class

MMM

WWW

WAP

NowNowSoonSoon

The Information Society

• Key driver for economic growth is knowledge

• Capital follows knowledge …

Relational, Organisational, Competency-

based

Information Society

Physical, Monetary,

Asset-based

Goods Society

Characteristics of the Information Society

• Information and content industries are important sectors

• Everyone has access to information

• Everyone needs skills to use it

• Structures of business and public life develop through information and communications technology

Australian Printing Industry

• One of the biggest economic groups in Australia

• Significant regional presence

• Around 6000 firms

• 99% are small and medium sized businesses

Today …

Industry Conditions Today

• A gradual slide in profitability

• Return on investment is deteriorating

• It is getting harder to do business

Industry Trends

5 to 10 YEARSNOW

Incrementalinitiatives

Naturalinertia

PrintingIndustryRevenue

Traditional Printing Industry Lifecycle

Where do we fit into this new world?Do we fit …?

The seeds of change

Industry Summit - October 1997

15 Associations & 40 companies

• a fund for the development of an Industry Plan• to raise the industry profile• greater co-ordination of industry activities -

general and political• to develop economic model of the industry

Canberra - March 1999

Major Forum to develop the Action Agenda

• Strong support from Senator Minchin and DISR

• Partnership with key industry players:- Graphic Arts Merchants Association of Australia- the National Paper Council- Australian Paper

The seeds of change

Emergence of PRINT21

Key Action Agenda findings:

Turnover is trending up but value adding is declining Capacity utilisation is extremely low Profit margins are declining Decline in return on investment Rapid technological change will continue “Trade” based industry image Training structures not keeping pace with technologies Poor management skills Lack of entrepreneurial focus Lack of understanding of customer needs

Launched in March 2001

• Industry convergence will accelerate and offers both challenges and opportunities

• The way business is done now is no longer a guarantee of survival

• Customers will increasingly look for ‘total business solutions’

• Create value through innovative business strategies, appropriate use of technology, intellectual capital and investing in human resources

PRINT21Summary of Key Messages

PRINT21 provides 12 recommendations:

1. Collate Industry Information 7. Encourage Innovation

2. Develop International Markets 8. Assess Low Capacity

Utilisation

3. Respond to Future Trends 9. Improve Capacity Utilisation

4. Identify Regional Opportunities 10. Leverage Technology & IT

5. Provide Business Tools 11. Promote Industry Capabilities

6. Provide People Solutions 12. Establish Implementation Group

PRINT21Working for the Industry

5 to 10 YEARSNOW

1ST CURVE

TraditionalPrintingIndustryLifecycle

Incrementalinitiatives

Naturalinertia

PrintingIndustryRevenue

The Emergence of PRINT212nd Curve

Adoption of the paradigm of the

‘converged’ industry

PRINT21

IS DESIGNED TOADDRESS THIS

GAP

5 – 10 YEARS

Incrementalinitiatives

Naturalinertia

Help to build emerging

businesses and

capabilities

The Emergence of PRINT21

PRINT21Working for the Industry

The PRINT21 package comprises:

• Action Agenda Research papers

• Business Diagnostic Tools

• Industry Economic Model

• Printing Industry Competitiveness Scheme (PICS)

• Enhanced Printing Industry Competitiveness Scheme (EPICS)

• EPICS Client Manager Service

Printing Industries’ Role

We are working to:

• Project manage the implementation of PRINT21

• Develop and deliver services that industry needs

• Provide a strong voice within Government

• Raise the profile and positive perception of the industry

The Multi-Media, Print andCommunication Firmof the 21st Century

• Innovative business planning – a strategic plan for the future

• Appropriate use of technology - manage technology, not be managed by technology

• Investment in people – commitment to the development of intellectual capital

• Customer Focused – able to establish ‘value’ relationships with its target marketplace

The Future ...what do book printers need to do?

• Manage digital content for their customers

• Exploit their sources of intellectual capital

• Reconfigure their processes to provide efficient and responsive digital workflows (Print on Demand)

• Develop deeper, ‘value-added’ customer relationships

• Understand digital rights management

• Understand customers’ emerging markets

• Develop ‘value chain’ management strategies

Printing Industries’ Role

MISSION

“… to be the catalyst for the prosperity of the print, packaging and visual

communication industry in Australia.”

• Discover more about your business• Make better decisions• Guide change• Improve competitiveness

PRINT21 BUSINESSDIAGNOSTIC TOOL KIT

STEP 1 - FOSTERING INNOVATIVE BUSINESS PLANNING

Eight Tools designed for the industry:

1. Financial Analysis 5. Company Analysis2. Industry Analysis 6. Environment Scan3. Customers 7. Essential Resources4. Competitors 8. Strategy Formulation

PRINT21 BUSINESSDIAGNOSTIC TOOL KIT

PRINT21 BUSINESS DIAGNOSTIC TOOL KIT

4 Stage Roll-Out

• Deliver PRINT21 Folders/Tools to industry• Promote awareness• Tools Seminars• PrinterCoach

Printing Industries’ Role

PRINT21 Working for the Industry

The PRINT21 business package is designed to restore profitability and

allow firms within the industry to invest in and develop new markets

and services.