Post on 13-Dec-2014
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Copyright © 2009 R. R. Donnelley & Sons Company.All rights reserved.
RR Donnelley is the world’s largest RR Donnelley is the world’s largest provider of printing and related provider of printing and related business services. We use our business services. We use our
unparalleled capabilities to help our unparalleled capabilities to help our customers Prepare, Produce, Deliver, customers Prepare, Produce, Deliver,
and Process printed and digital and Process printed and digital content.content.
Company & Company & Industry Industry BackgroundBackground
The company, originally known as R.R. Donnelley & Sons Company, was founded in 1864 by Richard Robert Donnelley, father of Reuben H. Donnelley.
A privately held, Family run
Went public in 1956
Become the world’s largest commercial printer in 1995
Generated 60% of its revenues from directories, catalogs, and magazines
Organized into 38 divisions collected into 8 business group which were part of 3 sectors
Church Goodman & Donnelley building at 108-110 Dearborn Street, Chicago, 1868 .Digital Reproduction. R.R . Donnelley & Sons Company Archive .
the ruins of the Lakeside Building at Clark Street and Adams Street, after the Chicago Fire, [1871 ].R.R . Donnelley & Sons Company Archive.
Lakeside Building at Clark Street and Adams Street, built following the Chicago Fire, [ca . 1873 ].R.R . Donnelley & Sons Company Archive .
The Evolution of a Graphic Identity : The R.R . Donnelley Indianhead From the late nineteenth century onward, RR Donnelley's corporate identity was associated with its distinctive Indianhead trademark .
exterior decoration of the Plymouth Court building, [20th century]. R.R. Donnelley & Sons CompanyArchive.Joseph C . Leyendecker's design first appeared as architectural decoration on RR Donnelley's Plymouth Court building.
Early Advances in Technology RR Donnelley's position as the printing industry's leader depended on a continuous program of research and development .
printing press #D2, 1949. R.R . Donnelley & Sons Company A
rchive.
Another of RR Donnelley's
specialty printing technologies,
"Watercolor" printing used rubber plates.
Financial highlights
Sales and Customers by Business Category (% of Consolidated Sales)
CatalogsLand’s EndLL.BeanEddie BauerJ.Crew
Magazine-18%TV GuideFamily CircleTimeGlamourPeopleReader’s Digest
Books-13%Random HouseSimon & SchusterHarcount BraceHarperCollinsBantam Doubleday
Metromail-5%Procter & GamblesFirst CardMutual of OmahaWhirlpool
RetailersWal-martJC PennyKmartService MerchandiseToys “R” Us
Telephone Directories-21%SprintAmeritechNynexBell AtlanticSouthwestern BellUs West
Financial-5%Memill LynchSmith BarmeyPaine WebberGoldman SachsSchwab & Co.
Software/Harware-16%MicrosoftIBMWordPerfectQuicken
Organization & Organization & IncentivesIncentives
Most sales forces were aligned with business groups rather than divisions Division-level incentives became group wide in 1991 And became sector-wide in 1993 So, salespeople sell work to their business group only
The Traditional The Traditional Print BusinessPrint Business
Used gravure and offset/web presses Cost about $12million for offset, and considerably more for gravure Considered long-term relationships High fixed cost and low variable cost
Industry Shifts & Industry Shifts & New New TechnologiesTechnologies
Change of customer’s wanted Largely become of the rapid spread of office computing Digital four-color and computer-to-plate were expected to have an even more profound impact. In 1995, digital growth was forecast at around 16% annually Traditional printing was expected to grow by 3%
Digital four-Digital four-colorcolor
Reduce cycle times Reduce chemical pollution Can print directly from computer files Infinitely customizable Could be delivered in variable quantities as often as desired Low cost and small size
Emerging Emerging CompetitionCompetition
In 1995, at least 55,000 printing companies operated worldwide. Most had fewer than 25 employees
Donnelley was larger than its next 9 rivals combined.
Smaller printing companies were building alliances, among themselves and with firm that had high-capacity networks for transmitting files.
A New Business A New Business ModelModel
Need to developNeed to develop : : A transaction management system A system for royalty accounting and payment An object-oriented database A manufacturing database
ResultResult : : Cost would be higher than offset/web or gravure for long runs, but lower for short runs. On-demand printing would have an enormous effect on customer’s total system cost. Total cycle time would be reduced by orders of magnitude – from 20 days to 2 or 3 or single day. More tailored marketing and better sales
So…A new division So…A new division would be required, rather would be required, rather than imply spreading than imply spreading digital technology digital technology throughout the company.throughout the company.
Economic & Economic & technical technical validationvalidation
Research the capabilities and costs of new imaging technologies by Technology Center
Began by close contact with technology suppliers such as Xeikon
Oversight and monitoring on Xeikon’s development work
ผลวิ�จั�ยที่��ได้� คื�อ costs were higher than expected แต่�วิ�า digital per unit costs were lower than the costs of offset printing
ในกรณี�ที่�� cost สู�ง สูามารถลด้ cost ได้�จัาก discount เสูม�อนวิ�า RRD เป็#นบร�ษั�ที่ใหญ่� ม�ป็ระสูบการณี) ม�อ*านาจัต่�อรองสู�ง
Reengineering the Reengineering the Technology Technology Development Development Process Process
The existing process
cost ที่��แต่�ละ division ใช้�สู�งมาก ซึ่-�งมาจัาก information systems technology and incremental technology improvement
The redesigned process
วิ�ธี�แก�ป็/ญ่หาน�0 กล1�มวิ�จั�ยจั-งคื�ด้ process ซึ่-�งม� phases IV เพื่��อให�ช้�วิยก�นคื�ด้ project ขึ้-0นมาจั�ด้กล1�มที่*าแบบ matrix
Technology Development Process
Deliverables for Phrase Reviews
From Vision to From Vision to RealityReality
In April 1994, Barb Schetter was named program manager with the objective of creating a new digital color printing business. โด้ยต่�องรายงานต่รงต่�อ Cowan ( ซึ่-�งอย��ใน phase 3 ขึ้อง development process )
ต่�0งช้��อที่�มวิ�า Trapeze Team ( แป็ลวิ�าช้�งช้�าสู�งที่��ใช้�ในการแสูด้งกายกรรม เพื่��อสู��อวิ�าเป็#นการที่*างานแบบ working without net )
ถ�าจัะ review phase III ต่�องระบ1 existence of a market, possible applications, construct a deployment schedule and funding plan, and define the scope of the business ภายใน 2 เด้�อน
On July 1,1994 Schetter was named vice president and general manager of the Digital Division. The Division would have its own P&L, with marketing and freestanding sales force reporting to Schetter.
ISG เป็#นกร1 6ป็ใหม� ที่��เน�นด้�านเที่คืโนโลย� เป็#นเพื่�ยงแคื�การขึ้ายขึ้�อม�ลอย�างเด้�ยวิ ไม�สูามารถที่*ารายได้�จันเป็#นธี1รก�จัที่��เขึ้�มแขึ้7งได้� จั-งต่�องม�การต่�0ง market ใหม�
ด้�วิยเที่คืโนโลย�ใหม�น�0สูามารถ print at any scale, using any print technology, or deliver the image in any other form the customer wants
criteria ขึ้อง new business ป็ระกอบด้�วิย 1. grow twice as fast as the corporation 2. reach at least $100 million in sales 3. achieve an above-average ROA
ในกร1 6ป็น�0ไม�ม�งานที่��เป็#นแบบ interchangeable work พื่วิก incentive จัะจั�ายต่าม performance ขึ้องแต่�ละ division
ISG ขึ้ายให�ก�บบร�ษั�ที่นอกกร1 6ป็ด้�วิย โด้ยขึ้ายให�พื่วิกบร�ษั�ที่ Financial service, Pharmaceuticals, Health care
แต่�วิ�า แต่�ละ division ในกร1 6ป็ม� sales force น�อยมาก ด้�งน�0นจั-งต่�องสูร�าง sales force ให�ได้�
The Information The Information Services GroupServices Group
Building the Building the divisiondivision
เล�อก Memphis, Tennessee เป็#นที่��ต่� 0งแห�งแรก เพื่ราะม�นเป็#น central processing and distribution point of Federal Express (Fed EX)
จัากการที่��ต่� 0งอย��ใกล� Fed EX จั-งได้�ขึ้�อด้�คื�อ เหม�อนก�บวิ�าม�นสูะด้วิกขึ้-0น สู�งขึ้องได้�เร7วิและน�าเช้��อถ�อ Memphis เลยกลายเป็#นจั1ด้แขึ้7งขึ้องบร�ษั�ที่
ที่*าการที่ด้ลอง printer แบบด้�จั�ต่อล 11 ช้น�ด้ เพื่��อใช้�ในงานต่�าง ๆ ที่��หลากหลาย เหม�อนวิ�าถ�าเล�อกได้�เหมาะก�บงาน RRD ก7จัะเป็#น industry’s low-cost digital producer
เร��มจั�ด้ system โด้ย develop 3 software tools ม� 1. Target-IT จัะช้�วิยให�ล�กคื�า pick, pull, compose their own pages 2. Send-IT ช้�วิยให�ล�กคื�าสู�งคื*าสู� �งจัากเคืร��องคือมพื่�วิเต่อร)ขึ้องต่�วิเองได้� และ 3. Order-IT ช้�วิยรวิมงาน
Operations and TechnologyOperations and Technology
Organization, Reporting, Relationship Organization, Reporting, Relationship and Rolesand RolesPartial Organization Chart,
1995
Target markets ต่�0งที่�มวิ�จั�ยโด้ยสู�มภาษัณี)ล�กคื�าและ Donnelley’s marketing directors ป็ร�บ target อย��เร��อย ๆ ต่ามที่��บอกวิ�า they were continually updated based onexperience in the marketplaceสูร1ป็วิ�า target ม� 1. magazine reprints, 2.corporate literature, 3.marketing and product literature for pharmaceuticals and health care, and 4.advance, liquidation, and prospecting catalogs
Positioningที่��สู*าคื�ญ่ก7คื�อที่��พื่�ด้วิ�า “we sometimes say we’re not selling printing anymore, we’re selling marketing tool” คื�อ สูอนล�กคื�าเร��องการต่ลาด้ เร��อง information ล�กคื�าจัะได้�รายได้�เพื่��มขึ้-0นจัาก by allowing greater market segmentation and more focus on selling
Consultative Selling ซึ่-�งก7คืล�าย ๆ ก�บ positioning
Marketing and Sales Marketing and Sales StrategyStrategy
ม� 3 ป็ระเด้7นคื�อ division’s own sales reps , the ISG sales force, sales force of other business group business group leader, sales managers, sales representatives ม�น did not always see eye to eye.
Challenges of Challenges of Internal Internal
AcceptanceAcceptance เจัอป็/ญ่หา expected sales had not yet materialized, and under intense financial pressure. ผ��บร�หารต่�องการ see profits by 4th quarter, and a breakeven year in 1996 profit from our new business. It’s hard to be unprofitable around here for even a few year แต่�ระยะยาวิม�นไม�ร� � ไม�ยอมขึ้ยายต่�อ จันกวิ�าจัะพื่�สู�จัน)ได้�วิ�า Memphis was working well ที่าง Donnelley ไม�ม� �นใจัวิ�าจัะ work ในระยะยาวิหร�อไม� ในการป็ระช้1มก7พื่�ด้ก�นแคื�วิ�า let’s see คื�อ ย�งไม�เก�ด้ขึ้-0น
The RR The RR DonnelleyDonnelleyToday…Today…
The world’s premier full-service provider of print and related services Serving organizations worldwide Doing business for more than 144 years Deep experience in meeting your market’s unique challenges 2008 sales in millions: $11,581.6 Stock trading symbol (NASDAQ): RRD Nearly 60,000 employees serving customers with locations across the globe
Building RR Building RR Donnelley to Donnelley to SucceedSucceed
May 2003February 2004
June 2005
April 2006
Acquisitions(1)Divestitures
December 2005
October 2004Package LogisticsJuly 2005
Sept 2005 Poligrafia
January 2007
May 2007
December 2007
March 2008
January 2009 PROSA
Positioned to Positioned to Serve You …Serve You …
Argentina
Austria
Australia
Barbados
Belgium
Brazil
Canada
Chile
China
Costa Rica
Italy
Japan
Korea
Luxembourg
Mexico
Philippines
Poland
Puerto Rico
Russia
Singapore
Czech Republic
El Salvador
France
Germany
Guatemala
Honduras
Hong Kong
Hungary
India
Ireland
Spain
Sri Lanka
St. Lucia
Switzerland
The Netherlands
Trinidad
United Arab
Emirates
United Kingdom
United States
Venezuela
Combined Worldwide Resources
An Unmatched An Unmatched PortfolioPortfolio
Serve over 50,000 customers
Serve 100% of Fortune 100 and 93% of the Fortune 500, and have approximately 15% of their print spend
Opportunity to continue to grow our Fortune 500 Relationships
Blue Chip Blue Chip Customer Customer RelationshipsRelationships
Asia Europe Latin America Canada Business Process
Outsourcing Global Turnkey
Solutions
Asia Europe Latin America Canada Business Process
Outsourcing Global Turnkey
Solutions
Printing operations in the U.S.
Magazines Catalogs Retail inserts Books Directories Commercial printing Financial printing Variable statement
printing Forms Labels Office products,
document organization & storage
Digital solutions Direct mail
Printing operations in the U.S.
Magazines Catalogs Retail inserts Books Directories Commercial printing Financial printing Variable statement
printing Forms Labels Office products,
document organization & storage
Digital solutions Direct mail
U.S Print & Related ServicesInternational
U.S Print & Related
Services 74%
International 26%
RR Donnelley RR Donnelley Segment Segment descriptionsdescriptions
Over 50% of Chinese directories and a significant portion of the regional directories in Asia/Pacific
Books for more than 30% of global publishers
Produces three of the top consumer brand magazines in China
RR Donnelley-RR Donnelley-AsiaAsia
Products Commercial Print: magazines, catalogues, retail Telephone Directories In-box materialsExpertise Production facilities located in or close to all major markets Flexible service platform geared to local needs and languages ISO certification (9001; 14001; OHSAS 18001)Titles* Produced Magazine: 472 titles Catalogs: 245 titles Retail Inserts: 65 titlesVolume of Copies Magazines: 530m copies Catalogs: 246m copies Retail inserts: 438 copies
RR Donnelley Bindery in Krakow, Poland
RR Donnelley RR Donnelley Global Print Global Print Solutions - EuropeSolutions - Europe
Largest Printing company in the region
Locations in Mexico, El Salvador, Costa Rica, Venezuela, Brazil, Chile, Argentina, Puerto Rico, St. Lucia, Barbados and Trinidad
15 Manufacturing facilities
Main product groups:Magazines, Catalogs, Inserts, Books, Premedia, Print/Forms, Labels, Variable Print (Outsourcing), Direct Mail, and Computer Print Out (CPO) paper
RR Donnelley facility in Tambore, Brazil
RR Donnelley-RR Donnelley-Latin AmericaLatin America
ACROSS 14 DIFFERENT TIME ACROSS 14 DIFFERENT TIME ZONES, ON FOUR ZONES, ON FOUR
CONTINENTS, AND IN NEARLY CONTINENTS, AND IN NEARLY 40 COUNTRIES, RR 40 COUNTRIES, RR
DONNELLEY IS COMMITTED DONNELLEY IS COMMITTED TO DELIVERING EXCEPTIONAL TO DELIVERING EXCEPTIONAL
VALUE.VALUE.