1. The Future of Thermal Printing -
“A View from the Shark Tank”
Presented By
Endre D. Vargha
GMR Management Consulting
25th Annual Thermal Printing Conference, November 17 – 19, 2014
2. The Sharks
Kevin O’Leary
Mark Cuban
Daymond John
Robert Herjavec Barbara Corcoran
The Offer: “30% Equity for $32.8 billion”
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8. Key Players
• Printer OEMs
• Zebra Technologies (USA)
• Sato Holdings Group (Japan)
• Seiko Epson Corporation (Japan)
• DT Media Manufacturers
• Oji Paper Company (Japan)
• Hansol (Korea)
• Kohler (Germany)
• Appvion (USA)
• Mitsubishi (Japan)
• Ricoh (Japan)
• TT Media Manufacturers
• ARMOR Group (France)
• Dai Nippon Printing (Japan)
• IIMAK (USA)
• ITW (USA)
• Ricoh (Japan)
• D2T2 Media Manufacturers
• Dai Nippon Printing (Japan)
• Kodak Pension Plan (UK)
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9. Recent Developments
• Industry Consolidation & Divestitures Continues
• Zebra Technologies acquires Motorola Solution Enterprise Business
• Bemis sells MACtec to Platinum Equity
• Honeywell completes the purchase of Intermec, Inc.
• Datamax‐O’Neil acquires Source Technology’s barcode printers
• Printronix is sold to Corona Investment Partners
• Sato acquires Argox
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10. Market Drivers
• Global Economy Growth 2014‐
19 GDP Projections 3.3 – 3.8%
• ASIA 6.5 – 6.8%
• N. America 2.3 – 3.1%
• L. America 1.3 – 3.0%
• W. Europe 0.8 – 1.9%
• E. Europe 2.7 – 3.9%
• ROW 2.7 – 3.9%
Source: IMF
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11. Market Drivers
• Productivity Improvement (ROI)
• Customer Service
• Wireless Communication
• RFID
• Security Concerns
• Product Safety & Anti‐Counterfeiting
• Innovation, media & applications
• Government Regulations (sometimes)
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12. Technology Trends
• Internet of Things (IoT)
• Near Field Communications (NFC)
• Cloud Computing, Big Data
• Wearable Devices
• Low Power Sensors
• Mobile Applications
• Smart Machines
• Printed Electronics
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13. Internet of Things
• IoT is the third wave of IT‐driven competition using smart, connected
products
First wave: the automation of individual activities
Second wave: the rise of the internet with inexpensive and ubiquitous
connectivity
Third wave: the dramatic improvements in product functionality and
performance
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14. What Are Smart Connected Products?
• Three core elements:
Physical components, mechanical and electrical parts
Smart components, sensors, microprocessors, data storage, software, and
embedded operating systems
Connectivity components, ports, antennae, and communication protocols
• One‐to‐One
• One‐to‐Many
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15. The IoT Technology Stack
PRODUCT CLOUD
Smart Product Application
Rules / Analytics Engine
Application Platform
Product Data Database
CONNECTIVITY
Network Communications
PRODUCT
Product Software
Product Hardware
Identity &
Security
External
Information
Sources
Integration
with
Business
Systems
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16. What Can Smart Connected Products Do?
Autonomy
Optimization
Control
Monitoring
Sensors and external
data sources enable the
comprehensive
monitoring of:
• Product’s condition
• External environment
• Product’s operations &
usage
Monitoring also enables
alerts and notification of
changes
Software embedded in
the product or in the
product cloud enables:
• Control of product
functions
• Personalization of the
user experience
Monitoring and control
capabilities enable
algorithms that optimize
product operations and
use in order to:
• Enhance product
performance
• Allow predictive
diagnostics, service
and repair
Combining monitoring,
control and optimization
allows:
• Autonomous product
operation
• Self-coordination of
operations with other
products and systems
• Autonomous product
enhancement and
personalization
• Self-diagnosis and
service
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17. Explosion of Connected Devices
Source: BI Intelligence Data from Gartner Research
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18. Zebra Technologies ‐ ZATAR
• ZATAR is a cloud based
infrastructure that enables users
to connect devices to the
internet. Launched in Oct. 2013
• ZATAR is an open software
platform for development of IoT
• ZATAR’s main components are:
• ZATAR Gateway
• ZATAR API
• ZATAR Web App
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19. Implication for Printer OEMs
• Need to rethink their business models, identifying new opportunities
for creating and capturing value.
• Examples:
• GE invested in its “industrial internet” linking tasks and equipment creating
more than $1.5 billion incremental revenue
• Google Nest thermostat creates value by digitizing the entire home‐temperature‐
control process.
• Sonos wireless music systems place the user interface in the cloud enabling
users to control the portable speakers from a smartphone.
• Philips Lighting users can control lighting hue light bulbs via smartphones.
• Tesla vehicles in need of repairs can autonomously call for corrective software
download or send notification to the customer for valet to pick up the car.
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20. Near Field Communication (NFC)
• NFC is an offshoot of RFID designed
for devices within close proximity less
than 8.0” (0.2 m)
• Initially standard was established in
2004 by mobile phone makers.
• First NFC phone introduced in 2006 by
Nokia
• Two communications modes active
and passive
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22. NFC Changes the Credit Card System
• Status quo – The magnetic stripe cards
virtually unchanged since 1970s in USA
• “Chip‐and‐PIN” EMV smart cards introduced
in Europe in 2004 reduced fraud by 80%
• Massive security breach and credit card
fraud resulted in the US banks moving to
EMV payment system by October 2015.
• EMV has better security, but 100% secure
• Most new retail card terminals will have NFC
option built in – enters Apple Pay
Smart Card POS Terminal
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23. NFC Changes the Credit Card System
• Smart Card Fraud
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24. NFC Changes the Credit Card System
• Apple Pay using NFC is secure and fraud
resistant
• Needs fingerprint on iPhone to make a
purchase
• Apple most likely will introduce the
“AppleCard” to compete with Visa, MC,
Discover and AMEX with 2% discount on
every purchase
• Merchants will promote ApplePay to
customers who save money and the
iPhone may actually pay for itself
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25. NFC Applications are Expanding
• Lost bags cost airlines $2.58 billion
annually
• IATA InBag program includes
permanent tags using NFC enabled
phone and app allowing the
traveler program the tag
• Includes LCD display has 1D
barcode and passive NFC chip with
multiple technologies
• British Air rollout planned for late
2014
Permanent Bag Tag
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30. Threats ‐ Common
• Market saturation – printers
(commodity prices)
• Industry consolidation – capital
allocation
• Lack of “breakthrough”
innovation (ZINK)
• Overcapacity in DT & TT supplies
manufacturing
“Long product lifecycles, market saturation, and
high penetration rates paint a gloomy future for
AutoID hardware vendors that disregard the
need to revise their go‐to‐market strategies. “
VDC Research
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31. Opportunities ‐ DT
• Direct Thermal
• Mobile applications
• Linerless media
• Multi‐color
• Value added alternative to
competing technologies
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35. What’s Next?
• Increased price competition among existing players and new entries
to gain market share
• IoT will give a short term boost to the barcode printer market
• NFC will be a disruptive technology to POS receipt printing market
• New profit pools will be in niche application, such as security printing,
printed electronics, harsh environment applications
• Competitive technologies mainly inkjet and laser will advance their
penetration industrial applications requiring color
• Industry consolidation & divestitures will continue
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36. Thank You
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