The trnsfmdmediasupplychain enterprisemediamgmt

MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP
dj@intermediaglobal.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

The Media Supply Chain includes all businesses involved in the creation, production and implementation
AUTHOR’S NOTE:

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
T: +91 (0) 98923 23661
www.intermediaglobal.com
DEC 2011

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 (dj@intermediaglobal.com) or on cell phone at +91 98923 23661.

Cover photo sourced from photolibrary.com


B usinesses communicate with their audiences - customers,
employees, partners, suppliers, media and investors for one

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:

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 management

review 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.


As organizations grow in size with geographically distributed offices and with
Rapid business growth creates complexity

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
transformation
DEC 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
communications

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


Further, through leverage of digital media channels in concert with print and adoption
of data-driven communications, tremendous opportunities to enhance the efficiency,

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 distribution
is amongst the Top

channels is again, dominated by print.
indirect spend

Distribution of Print Spends: Typical Large Enterprise
areas across most

industry 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.


Compounding the problem is the diversity of print vendors that execute print for
Inefficient procurement spend 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 to
DEC 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 ‘process

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


Enterprise Media Management: Impact on Marketing Efficiency Effectiveness

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

• 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,


early adopters of data-driven marketing across industry verticals have proved with
overwhelming regularity a clear correlation between analytics-enabled campaign

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 transformational
DEC 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 integration

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

The trnsfmdmediasupplychain enterprisemediamgmt

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