1. Whole of Chain Workshop Multi-channel Publishing project 12 June 2002

2. MCP Project 2 Agenda Welcome and introduction 1.Background 2.Overview from 3 previous workshops 3.Case Study 1: Mercury Printeam 4.Case Study 2: Gale Thomson 5.Case Study 3: UQP 6.CAL Presentation 7.Small Group Discussion

3. Background

4. MCP Project 4 Selection of segments The five selected market segments were chosen because they were thought to be most open to POD opportunities: Tertiary Primary/Secondary education Professional/Reference Specialist/Niche and Out-of-print general books 1.Background

5. MCP Project 5 Project hypothesis based on market pull The project posed the following hypothesis: By understanding end users’ purchasing patterns based on format outputs … … the economics of production could be reconfigured to pull more product through the POD chain 1.Background

6. MCP Project 6 Initial project findings Consumers appeared to be fully satisfied with the current output format choices Content availability and content management emerged as the primary issues The project’s hypothesis was immediately called into question! 1.Background

7. MCP Project 7 Towards a new hypothesis It appears that technology push is a more powerful force than market pull There are three major sources of ‘friction’ to be addressed in relation to Multi-channel Publishing: digital workflow friction digital content aggregation friction rights management friction 1.Background

8. MCP Project 8 POD, market pull & technology push Market Pull or Push? Digital workflow friction Printers Publishers interests Rights management friction Authors Publishers interests Digital content aggregation friction End Users Publishers interests “findability” accessibility granulisation validation 1.Background

9. MCP Project 9 Reflective questions In what ways might you take advantage of current trend in Multi-channel Publishing? How might the project make clearer the ways in which you could take advantage of these trends? In what ways can you imagine engaging with the emerging industry supply chain(s) outlined in this presentation? 1.Background

10. MCP Project 10 Today’s objectives All three Supply Chain Workshops focused on discussion around the dynamics of frictions within the book production supply chain The objective of today’s workshop is to identify and begin to develop strategies that might manage the forces of friction in order to maximise POD opportunities within each of the five market segments 1.Background

11. MCP Project 11 Today’s Objectives Stage 1:Overview of workshop findings highlighting frictions Stage 2:Presentations from four contributors to the digital book production supply chain, providing practical illustrations of how to deal with the frictions Stage 3:Preliminary formulation of strategies to manage frictions and maximise POD opportunities 1.Background

12. Overview from three Supply Chain Workshops Booksellers/Consumers Publishers Printers

13. MCP Project 13 Overview At each workshop,discussion of the frictions within the digital book production chain highlighted the need to develop a new industry infrastructure to maximise POD opportunities It also gave clues as to what form that infrastructure may take and the necessary supply chain reforms that need to be facilitated 2. Overview

14. MCP Project 14 Overview At all levels of the supply chain, the expressed preference is for focusing on core business activities At this stage there is little perceived commercial advantage in reform activities What is necessary to motivate existing industry players to participate in supply chain reform and/or encourage new entrants to develop industry solutions? 2. Overview

15. MCP Project 15 Printer-based fulfillment Providers Infrastructure for Order Fulfillment via POD Mass Content Customisation Market Retailer Corporation Public Institution Permissions & Payments Infrastructure Publishers (DAM) Digital Asset Management Content Management and File aggregation End User 2. Overview Content Aggregator (as required) Automated Permissions & Payments Physical Order Fulfillment Process Digital Workflow & Content Management Friction Rights Management Friction Desktop printing Online order fulfillment Providers Online Order Fulfillment Process

16. MCP Project 16 Workflow frictions Printers Publishers The shift within publishing from print to electronic publishing is the key driver of digital workflow reform The required elements of reform are: a shift from books as application files to books as tagged content (digital repositories and file format and management systems are in their infancy) development of micro transaction systems that encompass all elements of the supply chain automated ordering, production scheduling and logistic fulfillment services business models which profitably remunerate content managers for storing digital files 2. Overview

17. MCP Project 17 Workflow frictions Printers Publishers Who has the interest, skills and investment capital to enable digital workflow reform? Where will digital files reside and who should be responsible for content management – printers or publishers or intermediate party? Issues to bear in mind In general, publishers are not engaging printers in the process of undertaking workflow reform There is clearly a need for greater cooperation between printers and publishers The short term market signals indicate that intermediate parties may form to provide digital workflow solutions 2. Overview

18. MCP Project 18 Content aggregation frictions End Users Publishers Mass content customisation requires access to “bits” To deliver this efficiently requires a seamless permissions and payments system, DOI numbering system and agreed protocols for data identification Underpinning this industry infrastructure there is also a need to develop new business models at institution or enterprise levels 2. Overview

19. MCP Project 19 What will encourage publishers to make ‘bits’ of content available and on what basis is this likely to happen? What needs to be done to facilitate the uptake of DOI services? Issues to bear in mind Some publishers perceive that traditional print offers the only “safe” way to protect the value of their content (this minimises their aspiration to invest in content management systems) Content aggregation frictions End Users Publishers 2. Overview

20. MCP Project 20 Others perceive that offering their content for aggregation compromises their competitive position Are end user signals getting through to publishers regarding customisation of content? Content aggregation frictions End Users Publishers 2. Overview

21. MCP Project 21 Rights management frictions Author Publishers All parties within the chain understand that POD requires more efficient permissions and payment systems Any rights management system has to deal with the inherent tension between a cultural view that content should be freely available and a commercial view that creators deserve a return for the use of their content 2. Overview

22. MCP Project 22 Rights management frictions Author Publishers What kind of rights infrastructure would you want to see emerging to support the POD/ content management industry? How would you wish to access appropriate permissions and payments systems? Issues to bear in mind: Australia has just established a DOI agency CAL and the NLA are discussing new forms of digital legal deposit 2. Overview

23. MCP Project 23 Rights management frictions Author Publishers Enhanced rights infrastructure might facilitate new publishing opportunities For example, Australian academics require additional pathways to publish (this requires new forms of peer review) 2. Overview

24. Mercury Printeam Roger Bryant

25. Gale Group Paul Mercieca

26. University of Queensland Press Greg Bain

27. Copyright Agency Limited Tony Scander

28. Small Group Discussions

29. MCP Project 29 Questions What is necessary to motivate existing industry players to participate in supply chain reform and/or encourage new entrants to develop industry solutions? Who has the interest, skills and investment capital to enable digital workflow reform? Where will digital files reside and who should be responsible for content management – printers or publishers or intermediate party? What will encourage publishers to make ‘bits’ of content available and on what basis is this likely to happen? What needs to be done to facilitate the uptake of DOI services? What kind of rights infrastructure would you want to see emerging to support the POD/content management industry? How would you wish to access appropriate permissions and payments systems?