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dj@intermediaglobal.com
MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP
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DHANAN)AY BALUDI December 2011
MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP
Tbe Transformed
Media Supply Cbain
Wbere Next For
Enterprise Media
Management?
Copyrights Intermedia Global, 2011
Intermedia
Global
Markeng & Premedia Consulng
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MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP
AUTHURS NUTE:
The Media Supply Chain includes all businesses involved in the creation, production and implementation
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.
Wbere 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
dj@intermediaglobal.com
T: +91 (0) 98923 23661
www.intermediaglobal.com
AUTHUR BIUCRAPHY:
Dbanan|ay 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 Webexcbange (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 Indias largest prepress company
where he successfully led the business transition into a premedia KPU supplier for the global
packaging, marcoms and magazine publishing markets. In October 2008, DJ was invited to be
panelist at the US FTAAs (Flexographic Technical Trade Association) annual conference to speak
on Premedia Uffsboring 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
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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,
advertising, direct mail, newsletters, events, product literature, financial
reports, transactional statements and information products) are used
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 ofered a cheaper and more
efective 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
organizations to review and change their media & communications
management strategies. Some of these transformations include:
A sbift from a mass marketing focus to 1:1 marketing
With media fragmentation, growing pressures on marketing budgets, reducing
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,
marketers are forced to drive a strategic shift in the way communications is
managed and delivered. Not only is electronic media providing interactive,
personalized and on-demand communications platforms, print is beginning to
acquire many of these attributes making it easier to integrate with electronic
channels. Further, as CRM practices mature, the growing availability of organized
customer data and growth of advanced analytics is catalysing the adoption of data-
driven communications the foundation for 1:1 marketing.
Cost management to Cost + RUI management
Organizations are no longer content with focusing on cost reduction. Business
pressures are forcing marketers primary spenders on communications media to
maximize return on investment from their marketing initiatives (ROMI). There is
increasing focus on making communications more efective and procurement is
beginning to work more closely to align its cost reduction and spend management
goals with marketing objectives.
Co-to-market speed is becoming a critical competitive asset
While relying on traditional, print-centric communications and centralized print
and distribute processes seemingly ofers 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,
prints role and efectiveness 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.
B
The changing
media mix has
however, created
both challenges
and opportunities
for business. As
have a few other
fundamental
transformations
which are driving
organizations to
review and change
their media &
communications
management
strategies.
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MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP
Rapid business growtb creates complexity
As organizations grow in size with geographically distributed offices and with
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
logistics and unorganized media management processes drive up costs, delay
product introductions, compromise visual brand integrity and reduce the overall
competitiveness of business.
Media Management: A Strategic View
Managing scaled up operations requires automation and efficient collaboration
across the media supply chain. Across the industry spectrum not only do businesses
spend substantial amounts of money on communications media but also a
significant portion of organizational resources executive time, intellectual input
and administrative eforts - in the planning and execution of communications.
While dramatic cost reduction can be achieved through automation, there are
far greater gains to be achieved through a more comprehensive transformation
of marketing & customer communications processes. Such an approach to media
management addresses the complete lifecycle of communications, both print
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
Wbile opportunities
exist to drive
dramatic cost
reduction tbrougb
automation of tbe
media supply cbain,
tbere are far greater
gains to be acbieved
tbrougb a more
comprebensive
transformation
of marketing
& customer
communications
processes.
PLAN CREATE MANAGE PROCURE PRODUCE DELIVER
Communications
planning
Budgeting
Usage definition
Personalization
data
Distribution
Database
ROI Estimation
Communications
design
Cross-media
production
(media-specific
formats)
Approval
Workflows
Storage - Digital
Asset
Management
Distribution/
Access - Digital
Rights
Management
Brand Control &
Process
Standardization
Requisition
Approval & Spend
Tracking
E Procurement
Vendor
Management
Spend
Management
Print production
E-Publishing /
Multi-channel
Communications
Stocking/
Inventory
management
Inventory Tracking
Shipment/
Delivery to
end-user
MEASURE
Spend Analysis
ROI Analysis
Campaign
Effectiveness
Lifecycle of Communications Media - Marketing & Customer Communications
MARKETINC PRUCUREMENT SUPPLY CHAIN MARKETINC
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Further, through leverage of digital media channels in concert with print and adoption
of data-driven communications, tremendous opportunities to enhance the efficiency,
efectiveness and reach of marketing & customer communications are created.
Print Supply Cbain Management
Traditional approaches to managing the print supply chain greatly limit the ability
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
and utilities industries it could be much higher. Across consumer goods businesses,
while customer acquisition and branding-led communications is essentially via mass
media and point-of-sale, b2b communications with the trade or sales & distribution
channels is again, dominated by print.
Tbe complexity of managing print
Apart from a high concentration of spend, the sheer complexity of print raises
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.
An Aberdeen
Croup researcb
reveals tbat print
is amongst tbe Top
3 indirect spend
areas across most
industry segments
and typically
accounts for
between 3-53
of operating
expenses.
Distribution of Print Spends: Typical Large Enterprise
Marketing
Collateral
37%
Point-of-Sale
9%
Stationery
10%
Business Forms
12%
Packaging
13%
Documents
19%
Aberdeen Group Research, Oct 2006
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MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP

Inefficient procurement & spend management
Compounding the problem is the diversity of print vendors that execute print for
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 procurements 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
the graphic communications market reveal that for every rupee spent on print
communications businesses incur many multiples more, on process costs associated
with managing print & fulfilment. About 25-30% of print ordered by typical large
organizations never gets used due to obsolescence and wastage arising from poor
inventory visibility & control. Nearly 1 in every 4 print jobs requires an artwork to
be recreated/ versioned/ changed at extra costs due to non-availability of print-
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,
the overall organization sufers far in excess due to inadequate media & print
management practices. More than just the absolute costs of print however, it is the
business impact in terms of go-to-market delays, productivity, environmental impact
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: Tbe foundation for
efficient marketing supply chains
Brand content in the form of artworks, logos, images, brand guidelines, design
files, photography, multimedia files, videos etc., get created by multiple agencies in
diferent geographies and at diferent points in time. Post their initial intended use,
most brand assets lie unorganized making it a huge efort 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
Studies by
Infotrends reveals
tbat for every dollar
spent on print
communications
businesses incur
many multiples
more, on process
costs associated
witb managing
print & fulfilment.
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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
effective marketing
With increasing adoption of CRM and higher availability of structured consumer
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,
Enterprise Media Management: Impact on Marketing Efficiency & Efectiveness
Digital Asset & Marketing
Resource Management
Advanced Asset Management
Marketing Supply Chain Integration
(Workflow & Approvals)
Smart Assets/ Dynamic Media Catalogs
RUI Cains: (515%) CUSTS
Marketing Uptimization
Multi-channel Integrated Marketing
(Print + Web + Mobile + eMail + Signage)
Customer Experience Management
Advanced Analytics-driven Marketing
RUI Cains: (1540%) REVENUES
Media Procurement Process
Automation
Print Procurement & Spend Mgmt.
Inventory/ Distribution Optimization
On-demand Fulfillment
RUI Cains: (515%) CUSTS
Marketing Personalization
Targeted Marketing/Personalization
Data analytics/DAM/CRM integration
Multi-Channel Campaign Management
RUI Cains: (1530%)
REVENUES
CUMPLEXITY UF EXECUTIUN
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MEDIA & COMMUNICATIONS INDUSTRY THOUGHT LEADERSHIP
Copyrights Intermedia Global, 2011
Enterprise media
management is
a multi-faceted
transformational
initiative tbat
impacts not |ust tbe
key stakebolders
witbin tbe business
but also tbose
across tbe entire
media supply
cbain.
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 build stronger customer relationships - retention and
loyalty. The upshot of such a strategy is the transformation of traditional cost centres
at large banks and insurance companies such as statement printing into marketing
and revenue centres.
Driving tbe Transformation
As is obvious, enterprise media management is multi-faceted transformational
initiative that impacts not just key stakeholders within the business sales &
marketing, customer service operations, procurement & general administration - but
also those across the entire media supply chain. With a strong focus on integration
of supply chain processes and leverage of customer data to drive relevant,
personalized, multi-channel communications, the CIOs involvement as the enabler
of transformation is paramount.
Enterprise media management must be driven top-down with functional goals
aligned to the larger business goals managing costs and increasing revenue
realization. Implementing many of the strategies such as on-demand print
fulfilment, Transpromo, print procurement management and multi-channel
marketing requires expert interventions and also a collaborative efort with
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 efective media management exist in
abundance. What is needed to make it work is pure intent.