xerox book in time

XEROX: BOOK IN TIME

MARKETING MANAGEMENT PRESENTATION Roji Jacob Alex #23

Our company. Our capabilities. Our commitment.

FACTS1. Headquarters: 45 Glover Avenue, Norwalk, Connecticut

2. History: Founded in 1906 as the Haloid Company; named Haloid Xerox in 1958 and Xerox Corporation in 1961; acquired Affiliated Computer Services in 2010.

3. Stock: XRX (NYSE)

4. Employees: 136,000 in 160 countries

5. CEO: Ursula M. Burns

6. 2009 Revenue*: $22 billion company

7. world’s leading enterprise for business process and document management

They…

•Succeed through satisfied customers.

•Deliver quality and excellence in all they do.

•Require premium return on assets.

•Use technology to develop market leadership.

•Value their employees.

•Behave responsibly as a corporate citizen.

Xerox’s core values

Who Xerox serve. Schools, small businesses, government agencies, commercial printers and Fortune 1000 companies –Xerox span all types and sizes of organizations. Besides online and over thephone, they reach and serve their customers through their globalsales force, independent agents, dealers, value-added resellersand systems integrators.

160 countriesThey extend their global reach through wholly-owned subsidiaries of regional office technology dealers, as well as more than 6,500 authorized sales agents and concessionaires and about 10,000 technology resellers.

66,500 customer-facing employeesThey have more than 8,000 sales professionals, 46,000 employees directly serving their clients through on-site operations or off-site delivery centres, and 12,500 technical-service employees. They are allied with IT and business partners that integrate their systems and services into their customer solutions.

TechnologyThe innovation that they bring to document systems, software and integrated solutions is unparalleled in the industry and is built into broad portfolio of technology, for businesses of any size, in any industry, anywhere around the worldServices Document outsourcing

What they offer. They provide the industry’s broadest portfolio of document technology, services and software; and the most diverse array of business process and IT outsourcing support.

What they take on for their customers. They’re behind the scenesmanaging the essential processes that businesses count on tobe successful.

Business process outsourcing Information technology outsourcing

• Lean Six SigmaThey run their business with a disciplined approach to productivity and efficiency – and they help their customers do the same. Applied in both manufacturing and non-manufacturing environments, Lean Six Sigma is an analytical, fact-based approach to managing projects and processes that is centered on a set of industry-recognized tools. It’s about discipline, infrastructure, and substance, not form, so it builds value and produces tangible results. Because of its positive outcomes, they now incorporate it into their work with customers, helping customers to yield both increased efficiency and improved effectiveness.

• Research and developmentInnovation keeps them in the forefront of the industry. Four percent of Xerox’s revenue is dedicated to R&D and engineering.Four R&D centers in the U.S., Canada and Europe focus on colour science, computing, digital imaging, work practices, electromechanical systems, novel materials and other disciplines.Xerox holds more than 9,400 active U.S. patents.•Environmental sustainability

What helps guide them. Their unwavering commitment to excellence, innovation and sustainability defines their future and ensures their success.

•In 1980s, Xerox was a stand alone, black and white analog copier company

•By 1998, it was transformed into a networked, color, digital company with revenues of US$19.4 billion

•BIT system could produce in 1998, one 300 page book for US$ 7, such economies was possible only when lot size exceeds 1000 in normal printing.

Case Study- Book in Time

Xerox had in 1998, 4 business groups Office Documents- Sales of US$ 10 billion Deals with

black and white digital and light lens copiers and colour copiers/ printers to offices

Production Systems- Sales of US$ 5 billion. Deals with large production publishing & printing systems.

Channels Group- Sales of US$ 1.4 billion

Documents Services Group- US$ 3 billion


Xerox’s Group of research laboratories, especially PARC (Palo Alto Research Center) was highly reputed for its breakthrough inventions.

Xerox sold Graphical User Interface (GUI), which it developed to Apple Computers, which made Apple computers a success. This is an example of Xerox’s failure to capitalize on R&D success to Commercialization. In 1970s & 80s Xerox licensed out several inventions for little return.

The change in policy in 1990s, led to several projects, BIT was one of the dozen projects so identified.


BOOK INDUSTRY OVERVIEW

In 1997- Worldwide

Book Market- US$ 92 Billion

Printing Expense- US$ 20 Billion

No. of books printed- 8.5 Billion

Growth rate- 5% per year

68% Paperback, 32% hard cover

69% Non fictional 31% Fictional

- In US

Book Market- US$ 21 Billion

No. of books printed- 2.4 Billion


T H E X E R O X S O L U T I O N

Market Research by Xerox revealed the following

53% of books were selected by subject, only 22%

due to author’s reputation

Publisher name was simply not a factor in the customer’s reason for purchase of a particular book.

55% of books were planned purchases and 45% were bought on impulse

81% of books were bought for oneself, whereas 19% were purchased as a gift



Distribution Channel Analysis

27%

14%

9%

50%

Publisher toGen Retailers

Publisher toConsumers

Wholesaler toGen Retailers

To Otherchannels

Other Channels include Publisher sales to colleges, schools, libraries, export etc


World’s leading Book Publishers

Simon & Schuster- Published under imprints Macmillan, Prentice hall & Scribner

Pearson- Published under imprints Penguin & Ladybird.

0

1

2

3

4

5

6

%

Bertelsmann,Germany

Warner Books,US

Simon &Schuster

Pearson

Readers Digest

Random House


World’s leading Printing Companies

Industry fragmented with 40,000 printing presses in US alone.

Top 25 accounted for 25% of industry volume. Next 500 accounted for another 25%, and the rest for the remaining 50%

Large % of all print jobs were accomplished by offset printing.

Xerox served a complementary market, mainly office printing of documents.

0

1000

2000

3000

4000

5000

6000

7000

In Million $

RR Donnelley& sons

Hallmark

Quebecor

Moore CorpLtd

Deluxe Corp

World ColourPress

Ingram- Largest Wholesaler

100 million books in 1997

Service- 24 to 48 hours delivery to Retailers

Received orders electronically

Logistics backbone of Internet retailer Amazon.com

Wholesalers

US Book Industry Analysis

Authors

Publishers

Size: $23.1B (40,000)Profit margin:8% to 15%

PrintersSize: $20B (40,000)(Printer:$10BOther raw materials: $1~5M)

End Customer

RetailerSize: $4B (*1)Net margin: 3~5%

Wholesaler

Size: $7B (*2)Net margin: 1~2%

Size: Profit : 0~% of publisher’s profit. Or 10~15% of retail selling price

Value Chain for a $25 Book

Authors Printers Publishers Wholesalers Retailers End-Customers

$25

$17.5

$12.5

$4.5

$2.5

If a book price is $25:Authors: Fee is 1) out of publisher’s profit, or 2) 10%~15% of $25 ($2.5~$3.75)Printers: Publishers: Profit: 8%~15% ($2 ~ $3.75)Wholesalers: Retailers: Customers: Value chainSale price: $25Total margin (48%): $12---------------------------------------Publisher’s price: $13====================Manufacturing costs (20%): $2.6Author’s royalty (20%): $2.6Overhead costs (30%): $3.9Book return (25%, $13-2.6-2.6-3.9-0.65): $3.25Best margin for publ. (5%): $0.65Manufacturing costs (of 300 page)Film: $1,000 ($800~1200)Plates: $1,500Labor: $1,000Total: $3,500 (to $5,000)

Challenge Increase selection of book titles without adding to physical

storage.Enable efficient production of books ordered in quantities of

one or two at a time.The Xerox Solution: Introducing a new Xerox Digital Books solution, to

economically print books one-at-a-time, just-in-time. An entire book—including binding and cover—can be

produced within 48 hours, allowing many more book titles to be “in stock” without carrying physical inventory.

The Results: Positive responses from publishers, retailers, and customers. For the first time in history, supply and demand can now be

balanced in the publishing industry.

Who can leverage the Xerox: Book In Time technology?Small publishers can leverage the technology

by taking chances on new booksUniversities and schools can create

coursework that is relevant based on current events due to quick turnaround time

Small companies can create their own documents which provides them security if the documents are confidential

Estimate Demand of Book in TimeU.S. Book Market- 2.4 billion books sold68% in Paperback format and 69% Non-

fictionXerox could penetrate a smaller portion of

trade market and a majority of textbook market segments

Some of the books were out of print due to low demand worldwide

If Xerox could capture the mid market publishers, the demand could be in thousands of printers which would translate into billions in sales

Where does Amazon fit?Amazon provides a resource for small publishers

to distribute books to a large audience via the e-retailer

Amazon was the first company to let customers review books and it created an online community where people could research books

The biggest cost saving: shipping costs and excessive print costs. Because the publisher can release prints in limited quantity for titles where the demand might be unexpected

Other cost saving drivers : Inventory fees-virtual shelf replace physical retail space Marketing fees of best display at retailers Customer needs analysis: reflect true customer demands

Where does Amazon Fit?

Authors Printers Publishers Wholesalers Amazon.com End-Customers

$25

$17.5

$12.5

$4.5

$2.5

Normal price

$18Amazon Price

Case Study- Book in Time World’s leading Book Publishers (2009)

0

1

2

3

4

5

6

7

8

In Billion US$

Pearson

Reed Elsevier

ThomsonReuters

Wolters Kluwer

Bertelsmann

Hachette Livre

Mc Graw Hill

Book-In-Time, developed at Xerox, dramatically reduced the cost of printing "one" book. Combined with the possibilities of digital content storage and transmittal, the new technology has vast opportunities. .

Book-In-Time solution provided by Xerox is one of the most efficient solutions for publishing companies running on demand for short-run books. Many publishers were reluctant in publishing low demand books because of the increased cost, however BIT can allow the supplier to match the supply with the demand without sacrificing any cost.

BIT creates value in the distribution chain in two distinct cost saving ways.

First because BIT is a just in time system where publishers can customize the number of book runs they would like to establish. This added flexibility will help reduce the cost of inventory and returned books. .

CONCLUSION

What is the old name of Xerox India?

When was the first photocopier introduced?

One Major Publisher in Europe who uses the BIT technology?

Questions

Modi Xerox ( Joint venture formed between Dr Bhupendra Kumar Modi & Rank Xerox ( European Subsidiary) in 1983)

The company came to prominence in 1959 with the introduction of the Xerox 914, the first plain paper photocopier using the process of Electro-photography, (later changed to xerography) developed by Chester Carlson. The 914 was so popular that by the end of 1961, Xerox had almost $60 million in revenue. By 1965, revenues leaped to over $500 million.

Libri- Founded in 1928, Georg Lingenbrink Gmbh & Co. (Libri), is a privately owned book wholesaler based in Hamburg, Germany that serves 40 percent of the German wholesale book market. Libri carries more than 300,000 titles from 600 publishing houses and self-published authors. As a producer of books, Libri fulfills orders to nearly 3,000 bookstores and on-line booksellers, like Amazon.com. For every retail order received before 6 p.m., Libri guarantees delivery to bookstores anywhere in Germany before opening hours of the following day.

Answer

Thank You

For a Book In Time set up to operate, Xerox uses two Xerox DocuImage scanners, Xerox DigiPath production software, and OneVision PostScript preflight/imposition software. Personal computers and Macintoshes are used in the mastering department, which are manned by three pre-press technicians. The production area has a manager and two operators with a Xerox 6135, a Xerox 6180 digital printer, a DocuColor 40 printer for covers, a GBC laminator, a Horizon perfect binder and a Polar 66 guillotine trimmer. The system is run by the Xerox DocuXenter production management Software

The facilities for a BIT