Jul 15, 2007
Pete’s Perspective:
From Atoms to Bits---Digital Technology Takes Another Victim
By Pete Basiliere
Nicholas Negroponte, founder of MIT’s Media Lab and renowned futurist, once wrote, “Why ship atoms when you can transmit bits?” This simple question neatly frames the threats and the opportunities facing the printing industry. Why produce and ship paper documents when the recipient prefers (or even requires) a digital image?
My recent trip to Tokyo and Kyoto, Japan for a Gartner conference and client meetings drove home once again how digital technology is influencing our industry. An article in The Herald Tribune put the dramatic change rather simply: “Shift to paperless age spells farewell to ‘washi’ stock issues.”
Japan’s stock exchanges are changing to a paperless system in 2009, effectively wiping out the seven paper mills and 70 related suppliers that produce washi, an intricate, watermarked paper with anti-counterfeit features used in the printing of ornate stock and bond certificates. Custom rolls of washi paper incorporate the names and logos of the company issuing the certificate. But now Japan Securities Depository Center Inc. is switching to digital storage of stock ownership records.
As a result, the market for washi has dwindled from 400 million yen in 2005 to only 320 million yen last year. Projections are that 2007 will see orders worth 100 million yen and 2008 will generate less than 50 million yen in sales.
Suppliers are not deterred, however, seeking new markets for their products. Obata Seishisho designed a watermarked paper featuring cherry blossoms and school names that, The Herald Tribune reported, would be “perfect for printing acceptance letters from schools and universities.” Another firm is reportedly developing washi imbedded with integrated chips.
The evolution from atoms to bits continues unabated, with incremental changes in some industries and dramatic transformations in others. Will you adapt, as the washi papermakers have?
In one sense, they had a lengthy warning about the change that would wipe out their business. They could look at their skills and open their eyes to other opportunities. They had the time to make changes and prepare the transition to a new marketplace.
However, managers of high-volume printing and mailing operations often do not have such luxury. Senior management may decide to sell their company to another firm, eliminating the redundant operation. Or an analysis that considers only costs and not revenues may determine the operation can be outsourced for less.
What are you doing to adapt to the steady evolution of atoms to bits? Are you expanding your operation’s offerings to include CRM printing of marketing materials and other mission-critical documents? Are you installing the software, printers and mail inserters necessary to produce a wider range of short run, targeted, personalized and relevant jobs? Are you training your staff so they have the skills to adapt to the new digital age?
Washi papers reflected the pride felt by Japanese corporations that issued the ornate stocks and bonds. Nevertheless, even the washi’s obvious quality and artistry could not stem the evolution from paper to digital images. Take a cue from the papermakers. Look around your operation and envision how you want it to evolve.
Join Pete at Gartner's
Print & Imaging Summit, Dec. 2-4, 2007
It’s a whole new world for office and production printing. Those who forge ahead and gain new expertise in today’s breakthrough technologies will play a leading role in their organizations. Those who delay will be left behind.
In December 2007, the world-renowned Gartner print and imaging analyst team will show you how to gain a front-runner advantage. Together, you will explore the exciting convergence of new technologies and strategies that are radically transforming the once-staid print environment into leading-edge profit center.
Visit www.print-imagingsummit.com for details on how to attend or sponsor the Summit.
About Pete Basiliere
Pete Basiliere is Gartner’s research director for print markets and management, conducting research and providing insight on production print and mail systems and applications including best practices, market strategies and technology trends. Mr. Basiliere assists suppliers and end users with practical advice relating to Gartner's Automated Document Facility (ADF 2.0) and customer relationship management (CRM) printing concepts as well as production print and mail operations and security matters. He has spoken at numerous industry events including the On Demand Conference, the GATF Technology Alert Conference and Gartner’s Print and Imaging Summit.
Mr. Basiliere has 30 years of printing and direct mail experience in operations, engineering, customer service and purchasing management, having worked for Liberty Mutual Insurance Company, NEBS, PVA-EPVA, John Harland Company and others. The National Association for Print Leadership (NAPL) published his two books: Diversifying with Mail and Fulfillment Services: Unlocking Hidden Profit Potential and Successful Print Buying: A Guide to the Cost-Effective Procurement of Printing. Mr. Basiliere earned his bachelor’s degree at Bates College and master’s degree at The University of New Hampshire.