Gauging the Impact of Electronic Technologies on Print
As new technologies and innovations continue to impact communication tools and methods, one thing is very clear—the role of print is irrevocably changing. The tactile pleasures of paper—whether a book, newspaper or magazine—are diminishing, and in some cases gone forever. For those printed pages that offered beautiful output quality at the lowest cost per page, but were only printed in larger volumes than actually required, there is no happy ending.
Are electronic technologies to blame for the shift of content online and loss of page volume? Eight months, hundreds of hours of interviews, and weeks of in-depth analysis confirm that electronic technologies are indeed an enabler, but not the root cause of the decline in offset printed pages. These insights and more come from the recently released 2011 PRIMIR study, “Impact of Electronic Technologies on Print,” which examines 12 print applications ranging from annual reports and books to transactional printing (Figure 1).
In the new study, each application is rated for the impact of electronic technologies on print along with the business reasons behind any changes that have occurred. The report identifies six core reasons driving decline in page volumes, including the impacts of:
- Business model changes enabled by electronic technologies;
- New electronic advertising distribution channels;
- The recession;
- Regulatory changes;
- New electronic content distribution channels; and,
- Electronic output display technologies.
For the next three years no great adjustments are foreseen, however major changes are expected over the following 20 years. Since a five percent annual decline in page volumes leads to an almost 50 percent reduction in print over 10 years, all firms in the print value chain will have to alter their business infrastructure to scale down for less demand. They will also need to become more nimble and flexible to respond to rapid fluctuations in demand.
While the study uncovered the fundamental reasons of change and the reasons for impact on print volumes, it did not discover any solutions to those challenges. However, there has been much said about variable data printing, QR codes, key search words, packaging application opportunities, and even thoughts about printing RFID electronics directly onto paper.
Each of these specialties has value but they are not opportunities that will reverse any industry rightsizing for printing equipment and supplies manufacturers. Opportunities exist for individual companies and leaders, but not the entire industry. Basically the dilemma is that those who create content can easily change tools and move from printing tools to electronic content tools, however, printing equipment and supplies manufacturers cannot easily make new tools that allow for electronic communication needs.
Some would argue that software is an answer; they are correct in the sense that software can support tremendous value creation. Yet, software used for creating and managing print accounts is well below three percent of all printing equipment and supplies revenues. In other words, it’s an important enabler, but few are willing to pay for its true value.
Ironically it may well be that the lack of relative success in converting offset to digital pages has insulated and protected the value of digital print. The offset pages being lost have been mostly of low value to the recipients. The pages that remain only become more valuable, especially those that add something above and beyond beautiful output quality.
We should point out that the printing industry is not under immediate threat of collapse—it remains an enormous business that will be sustained for years to come, though with fewer presses, fewer tons of paper, fewer pounds of ink, and ultimately fewer printers and manufacturers who cater to them. Opportunities exist for those willing to work hard to find them; and they will take time to nurture.
Electronic technologies extend the reach of communication by connecting the loop and making it interactive. This is perhaps the single most important function brought about by electronic technologies. Historically print stopped once the user received it; print was the final product. Electronic content is never completed. Electronic technologies provide infinite digital information.
Many of the tools required to generate electronic content are identical to the tools required to create printed content. The technologies available to distribute content electronically have been in place, in many cases, for years. What is different today, in contrast to five years ago, is the information “super highway” we now access (juxtaposed with what could previously have been described as single-lane roads).
Most recently, the cloud is the single most important enabler of the further growth of electronic communication technologies. It pulls together all the other disciplines required to communicate and closes the connection between print and input capture, making communication bi-directional.
The old business model of buying larger quantities than needed to get the lowest cost of print per page is broken. Electronic technologies are not only enabling more timely and efficient communication, but they have also exposed the inherent inefficiencies of over-ordering and inventorying large quantities of print that don’t have intrinsic and immediate value. In particular, this affects periodicals and marketing collateral.
Today, and in the future, the benefits of electronic communication technologies outweigh, and will continue to outweigh, the disadvantages. The Cloud will further drive content that has a time value toward electronic communication. The PRIMIR study concludes that print will co-exist where instant availability is not the most important factor.
Source: NPES, the Association for Suppliers of Printing, Publishing and Converting Technologies