IndustryObservationsIndustryObservations Patrick Bernau Industry Marketing Manager Fuji Xerox Australia Patrick Bernau Industry Marketing Manager Fuji Xerox Australia

Information Revolution Due to the Internet, the Information Revolution is becoming an explosion. ‘ If you don’t know where you ’re going, at least you must know where you’re from ’ African Proverb Writing Invented BookPublication Gutenberg 1st Book Printing (Bible 1st Book Printing (Bible ) 5000 years 500 years 50 years 5 years Digital Computer Web Portals

Storm of Change Continuous / Discontinuous Developments Banking- Branch/ATM/Phone/Internet Communication- Post /Telex /Fax / /Internet Entertainment- 45s/LP/Cassette/CD/DVD/MP3 Today is about AWARENESS and TIMING Continuous / Discontinuous Developments Banking- Branch/ATM/Phone/Internet Communication- Post /Telex /Fax / /Internet Entertainment- 45s/LP/Cassette/CD/DVD/MP3 Today is about AWARENESS and TIMING

Protect Intellectual Property- Rights New Relationships in the Publishing Supply Chain Right Balance on Print Run Lengths Author Publisher Printer Distributor Bookstore Getting People to Read More Competing distractions Getting People to Read More Competing distractions New Challenges in Publishing On-Line Bookselling New Media Options Development of New titles New Media Options Development of New titles Price inelasticity

Market Segmentation Ref Scientific, Technical, Medical Professions (Law, Acc’tg) Elementary & High School Texts Reference Books Juvenil e El-Hi TextsReligion Trade * Journals * Music * Profess- ional * College Texts * STM ** Societies, Scholarly Monographs

Imagine the Possibilities A New Business Model for Publishing. Multi-path Publishing

1 1 to 10 1 to To 1000 per run PUSH Channel Qty eBooks, Any, Part or whole Paperbacks A4, C5 etc Comb Bound, Part or whole Paperbacks A4, C5 etc Perfect, Comb Bound, Part or whole Paperbacks A4, C5 etc Perfect Bound Part or whole Traditional All formats FormatCustomerRetailerDistributorPublisherCreator Delivery Funds f pp p p F Delivery Funds Delivery Funds returns d F fF Delivery Funds Delivery Funds d d Regional Printing fF Delivery Funds d Job Card Rights Delivery Funds Job Card Rights Delivery Funds d F In Store Printing fF d F F Job Card Rights Delivery Funds Customer Printing fF F Job Card Rights Delivery Funds e Market Pull Channel Push Multi-Path Publishing Which combination of format, distribution channel and production point best delivers on the customer’s need E- Delivery

Internet Creates a New Publishing Community

Internet Revolution Tools for the New Publishing Age

Consumer access to Work’s

Details of the Work

Ordering a Work

Traditional Publishing Value Chain Author Publisher Distributor Consumer Retail Stores Printer Warehouse

Key Business Process Current Value Chain Tasks Book Production via Offset Print Process Pre- Publication Prep Author Contracts Book Editing & Design Pre-press processing Production Print & Bind DistributeReprint Decision Take Book Out of Print Plate Prep & Setup Offset Print >1000 Bind > 1000 Distribute Current Demand Warehouse Excess Production Process Returns Generate Reprint Order Evaluate Backlist “Remainder” Inventory Write Off Inventory Supply Chain Analysis - Current

Author Publisher Distributor Consumer Store Warehouse Wholesaler Distributor Wholesaler Distributor Evolving Publishing Value Chain Printer

The Re - Engineered Supply Chain Key Business Process Revised Value Chain Tasks Book Production via Digital Print Process Pre- Publication Prep Author Contracts Book Edit & Design PrePress process Reprint Decision Take Book Out of Print Plate Prep & Setup Print as Required Bind as Required Distribute Current Demand Inventory Excess Production Process Returns Generate Reprint Order Evaluate Backlist “Remainder” Inventory Write Off Inventory Production Distribution Production

No. of Titles Run Lengths , New Titles= New Revenues Reprints Out of Print= Lost Revenues Traditional short runs Business as usual Consumer wave of influence on “Printing” Consumer wave of influence on “Printing” Book-in-time 6180 Continuous Feed Offset Digital Print fit with Internet Ordering Viewable & distribute / print of a book.

Business Opportunities for Publishing Reduce capital and profit affects of warehouseing, inventory, remainders, and write-offs Accelerate time to market for new titles and reprints by digital printing of Comps, Reviews and finished product. Capture new revenue on existing properties --- republish Out of Print titles Minimize risk on new titles --- test the market Repurpose existing material into Custom Book offerings Reduce shipping costs by Distribute & Print work flow Develop a multiple purpose digital book asset resource Profit from development with continuous and discontinuous product offerings where appropriate. Reduce capital and profit affects of warehouseing, inventory, remainders, and write-offs Accelerate time to market for new titles and reprints by digital printing of Comps, Reviews and finished product. Capture new revenue on existing properties --- republish Out of Print titles Minimize risk on new titles --- test the market Repurpose existing material into Custom Book offerings Reduce shipping costs by Distribute & Print work flow Develop a multiple purpose digital book asset resource Profit from development with continuous and discontinuous product offerings where appropriate.

Infrastructure Proposition for Publishing From Print to StockToPrint on Demand From Print & DistributeToDistribute then Print From Mass ProductionToBook Customisation From Bricks & MortarToClicks & Mortar From Physical Books ToUsage Rights & Licenses To Generate revenue and margins today while investing in the “New” Publishing infrastructure.

Digital Print Services Publishing Today Publishing Today From Make-then-sell … to Sell-then-make to Sell-then-make