19 October 2011 - A greater knowledge of client businesses and a much better focus on training is needed if printing companies are to transition for relevance and profitability.
This was one of a series of messages from Professor Goran Roos – one the world’s most innovative and knowledgeable printing and manufacturing industry experts.
Prof Roos was the guest speaker at Printing Industries final CEO Forum luncheon for 2011 held at ANZ Stadium, Homebush, Sydney sponsored by Media Super.
According to Prof Roos, there are three things managers in Australia’s print industry need to focus on in company development.
To get the most out of their assets they must develop their managerial capability, focus on adding value to the firm by using technology and design to develop services and solutions. Business models need to change to appropriate that added value before customers take it first.
His presentation entitled 'The New Print Paradigm: What you should know to get involved or to get out’ provided the 75 plus CEOs and decision makers present with insight into strategies and opportunities they should be using to achieve longevity.
His recommendation to the group was to think broader, to expand the mental understanding of their respective businesses. Thinking outside the box on what a company can offer is essential to stay in the game.
He said that to succeed a firm must know their customer’s business better than they do, or risk absorbing all the risk. The firms that perform well understand the underpinning technologies, how production techniques work and have real depth of knowledge about their business. Some handholding or guidance is needed to start, but that is the way of the world.
Prof Roos was particularly emphatic about the benefits of training, summing up the implicit agreement in any healthy business as being that the employer makes the employee more employable and the employee makes the employer more successful.
“The successful companies are the ones that provide in depth solutions and services, offer niche products and have highly trained staff,” he said.
As the format of business transactions evolve, printers should be aiming to offer their customers a solution rather than a service, which gives the print shop the ability to price on performance.
“Printers need to adopt a platform thinking method. It’s not about saying ‘this is what I have and here is my price list’, but about asking the customer what outcome they want.”
Prof Roos quoted statistics showing that "Australia is a second-rate performer in managerial capabilities [compared to the top countries]. This is the worst thing I will tell you today."
He explained that to take advantage of technological change required printers to overhaul their business models.
Prof Roos warned that the industry's problems would continue as long as there remained a low barrier to entry in terms of skill sets and capital investment costs, while he called cost-cutting "the non-thinking manager's response to problems".
View the Goran Roos presentation video here
Download Prof Roos slide presentation here
A meeting of the minds
(l-r) Bill Healey CEO Printing Industries; Graham Morgan CEO GEON Group Australia; Lisa Collins General Manager Client Relations, Media Super (sponsor); Professor Goran Roos; and Frank Federico General Manager ANZPAC Services (Aust) Pty Ltd.