Harrumph to Drupa: A Respectful Response

By Patrick Henry on July 23rd, 2008

“…drupa is just an elaborate evasion for vendors who are utterly unable to explain their products satisfactorily or provide useful and relevant demos at home. Drupa also encourages hurried and half-baked decisions by users who are unable to gather their own information from other sources.”

Yikes!

I don’t consider myself an apologist for printing trade shows, but I do attend a lot of them, including every drupa since 1990. So, I have to say that I find Mr. Rosen’s indictment a bit, uh, sweeping.

He’s perfectly correct to remind us that drupa is no place for casual tire-kicking by those who haven’t done their homework. Nor is there any arguing with his point that a printer who spends impulsively at drupa almost surely is throwing his money away.

But can drupa be as devoid of substance as Mr. Rosen seems to be saying it is? That’s where exception has to be taken.

For one thing, even the most devious exhibitors in the world couldn’t contrive to fill 19 halls and 2.8 million square feet of display space with nothing but “vaporware.” drupa is an event where vendors showcase not just their new stuff, but their existing product lines—in some cases, every hunk of iron they make.

There’s nothing remotely vaporous about these mainstay items. They’re good machines. They’ve won market acceptance because they’re the equipment that printers use to make money. And drupa still is the only venue where all of the options can be seen and evaluated in one well-planned visit.

Is there a smoke-and-mirrors, carny aspect to drupa? Of course, and that admittedly is one thing that keeps a lot of us coming back. But I don’t know a single printer who would look at a six-minute makeready demo at a trade show and think he was looking at anything but a six-minute makeready demo at a trade show.

Again, we can only thank Mr. Rosen for the reminder that ill-informed capital investment decisions at drupa are likely to be disastrous ones. But the drupa show company informs us that €10 million worth of deals were done in Düsseldorf by the time the show was over. Can all of these have been sucker bets placed by those gulled at a “Show and Tell for grown-ups”? Time will tell, I guess.

This year’s Graph Expo, as we know, will be a scaled-down reprise of drupa for the North American market. If we were to take Mr. Rosen’s post very literally, we might conclude that he is waving us away from McCormick Place as well.

But somehow, I don’t think so. I’m betting that he’ll be there because it’s a place for industry experts of his eminence to be. Personally, I’m going for the Chicago Polish dogs because I can still taste the bratwurst-by-the-Rhine. And because I want to be dazzled, all over again, by the panoply of printing technology that it was my very good fortune to see at drupa this year.

Font Conference

By Adam Dewitz on July 22nd, 2008

Font humor from CollegeHumor:

Harrumph to Drupa: a Curmudgeonly Perspective

By Bob Rosen on July 22nd, 2008

I’ve been in the industry for a little more than 30 years, which qualifies me as a certified OLD GUY. It also qualifies me for consideration as a curmudgeon – though certainly not yet in the league of Romano and Vinocur.

So here’s my take on drupa – ANOTHER one that I didn’t attend! Next time, you should think twice about going.

I haven’t gone to drupa very often, mostly because I don’t need another excuse for a trip to Europe. I go every six weeks or so - to see my grandchildren. But if you want to visit Europe, then invent some other flimsy excuse instead of drupa. You’ll have more fun, and you’ll save yourself some bad decisions!

My firm has worked with 592 graphic arts companies in the past 20 years, and we’ve found an almost perfect inverse relationship between firms being profit leaders and their likelihood of attending drupa. That is: the more profitable they are, the less likely they are to go. Or at least the less likely they are to make important decisions connected with drupa.

Why is that so? The profit-leading CEOs are generally not among the earliest adapters of technology. They know that anyone can buy equipment. The real question is what you’re going to do with it in order to make the investment pay off. So they identify their needs for meeting market demands and examine the various approaches to meeting those needs.

Why should the timing of such big decisions have anything to do with the timing of drupa?

Yes, every fifteen or twenty years the top-performing CEOs might go to drupa to gain an overview of an entirely new class of technology. Or if they’re on the fence about buying a major new piece of equipment, they’ll occasionally permit a vendor to induce them to attend.

But virtually all of the profit leaders recognize that drupa acts like a nickel bag of dope. Far too many printers have committed to a piece of new technology or a drupa “show special” press at a reduced price and wonderful financing, and then wondered a year later “what the heck was I thinking?

We can’t blame the beer, the wonderfully cheap and elegant hotels or the refined social environment at drupa. It’s something else in the air, and it’s my experience that decisions made at (or strongly influenced by) drupa are almost always bad decisions.

Yes, technology has transformed our industry – and being well-informed is crucial to good decision-making. For consultants, it’s especially important to see emerging trends in technology in order to help clients make good decisions. Yet even consultants like me have found it much more useful to spend time with our technically-informed friends when they’ve returned from drupa, debriefing them once they’ve had a chance to absorb and filter their own drupa experiences.

Before the next drupa, ask yourself:

“Do I really have to be among the first people in the world to know about a new technology or see a new piece of equipment? Can I learn what I need to know while in the midst of an expensive and noisy carnival?”

I don’t think you do. If drupa provides a focal point for manufacturers to hurry new developments to market, then I’m happy for them to use the show to spur their own efforts. But otherwise, drupa is just an elaborate evasion for vendors who are utterly unable to explain their products satisfactorily or provide useful and relevant demos at home.

Drupa also encourages hurried and half-baked decisions by users who are unable to gather their own information from other sources. Putting it more simply: drupa is Show and Tell for grown-ups – held in a slightly exotic location. For the vendors, it’s dream to have all their best prospects gathered in one place.

But what’s the big deal for customers? Seeing a demo press made ready in six minutes doesn’t prove much, does it? Even if you accept the claim as true, you’re still going to run your own demo after the show, using your own test jobs, aren’t you? So too with any other piece of equipment or technology.

I advise my clients that if they simply must go to drupa, then by all means go to enjoy the festivities. Take time to regret the fall of the dollar, drink the beer, and when you’re done, go to visit other places in Europe. (Change the order if you like.)

Then come home to do your information-gathering and decision-making in a more thoughtful and less compressed manner. Read the countless articles that will be written, reflect on your company’s opportunities and needs, talk to the vendors after they’ve recovered, and talk to other well-informed people. Then reflect on what you’ve learned while asking yourself the single most important question of all: how are you going to put the dazzling new technology to use profitably.

Oh yes, there’s one more thing. If you can’t (or don’t want to) do that information-gathering for yourself, there are some consultants you should know. The only downside is that they probably won’t provide you with beer and bratwurst.

More on MagCloud

By Adam Dewitz on July 21st, 2008

A month ago I covered the launch of MagCloud, an HP Labs research project that is that is evaluating the use of a Web-enabled print production workflow to streamline the publishing of magazines so small independent magazine publishers and content owners can publish custom publications without all the print and distribution overhead associated with traditional magazine publishing.

Mr. Magazine interviewed Derek Powazek (founder of JPG Magazine) and consultant to HP Labs on MagCloud and the future of magazine publishing.

Highlights from the interview include:

Do you view MagCloud as a publisher, printer or distributor?

If I had to pick one of the three, MagCloud would have to be a distributor, because we partner with printers, and our goal is to enable our members to become publishers themselves.
But, really, MagCloud is is a connector. We connect publishers to their audiences, printers with magazines, readers with magazines, etc. We see an enormous opportunity to breathe new life into the magazine biz, if only publishing was as easy and accessible as the web.

Will technology help print and add more printed products to the marketplace or technology will replace print?

I think that we’re still figuring out what kind of stuff belongs in print, and what doesn’t. Remember that, for years, if you wanted to find out what the weather was like in a certain place, you bought a book. A Farmer’s Almanac. Putting that kind of variable data on paper seems crazy now, because we have a better way to do it.

So, yes, technology will drive some print products to their grave. Personally, I would not want to be running a traditional news weekly right now.

But I we both know that print is not dead. There’s content that really belongs in print. Look at the success of Make Magazine, photography journals, recipe books. We just need to figure out how print and web can stop competing and start collaborating.

So is MagCould the future of magazine publishing? Maybe. I think its safe to say that may future print applications will be driven by Web-enabled Print Systems.

Last week I was invited to beta test MagCloud. I will report my impressions of the system soon.

Paper Magazines Can Be High Tech, Too

By Adam Dewitz on July 21st, 2008

Esquire will include an electronic display on the cover of its September issue. The display will use E Ink technology (the same technology used by the Sony Reader and Amazon Kindle) to flash “the 21st Century Begins Now.”

The New York Times has the details:

If it does wind up in the Smithsonian, it will need a power source; on its own, the magazine will run out of juice after 90 days. Mr. Granger knows some will see the cover as a gimmick — but he says he thinks the technology behind it, which has been used for supermarket displays but never embedded in a magazine, speaks to the possibilities of print.

“Magazines have basically looked the same for 150 years,” Mr. Granger said. “I have been frustrated with the lack of forward movement in the magazine industry.”

Pointing to the prototype sitting on a conference room table, Mr. Granger said, “The possibilities of print have just begun. In two years, I hope this looks like cellphones did in 1982, or car phones.”

So what do you think? Is this just a gimmick to show that magazines can be chic in the digital age, or is this the beginning of a trend to embed electronic images and pages within printed periodicals?

Frank Romano’s History of Printing in 15 Minutes

By Adam Dewitz on July 17th, 2008

At drupa Frank Romano gave WhatTheyThink a video on the history of printing he created with his students a few years back. In the video, Frank walks you through major milestones in the history of printing. From Johann Gutenberg to papyrus to important contributors in the development of type to Ben Franklin to Mergenthaler to Frederic Ives.

Frank would like this to be freely available for educational use. If you would like a downloaded version, please me an email: adam at printceoblog.com.

Update Some have asked how the video was made. Here’s what Frank had to say:

For the video, the paintings were digitally photographed. I was video taped in front of a green screen and then the recording was digitized.

Using Adobe After Effects, vector outlines were created so I could be behind or wherever.

We had to watch the sound (there is a cable up my pants leg), the size ratio of me to the painting image, and where I had to look or point.

And now you know…the rest of the story.

Wish You Were Here

By Richard Romano on July 17th, 2008

While I’m sure Dr. Joe could very easily conjure up the necessary postal data to confirm or refute a similar trend in the U.S., in the U.K. at least—if this blog post on the Guardian’s site is to be believed—postcard writing (or, more to the point, postcard mailing) is experiencing a bit of a Renaissance. Or at least it was two years ago (the most recent year for which there are data).

The conventional wisdom has it that e-mail and text messaging have supplanted the printed postcard, and there may be some truth to that; on occasion, I have made my own e-postcards using my digital camera, Photoshop, and e-mail. But, you know, it hit me that that was too much like work! So a printed postcard that someone else has photographed and designed makes for a nice vacation. Would that they were pre-written, too. I suspect I am not alone. I also prefer receiving printed postcards. Come to think of it, I get so little snail mail anymore—even catalogs—that I find somewhat to my surprise that I rather miss it. Harry & David, come back!

I do love this quote from Stephen Fry: “The email of the species is deadlier than the mail.” Indeed.

Of course, Someone We All Know who took a long world cruise singlehandedly kept the postcard industry afloat (as it were) for the past six months. I bet world postal data will show a big spike for Q1 and Q2 of this year, unless the S.S. Victoria had Franking privileges. (Ahem.)

But then some of us just blog about our travels.

However, if this WSJ story about “staycations” (that is, taking a vacation in the privacy of one’s own home) foretells a larger trend, maybe the postcard issue will be a moot point, at least for a while. But perhaps there is a business opportunity in producing picture postcards of people’s homes. Not a lucrative one, of course…

Here’s an idea: making and selling picture postcards of really prosaic places, like the local mall, the Blockbuster Video parking lot, the local supermarket, one’s laundrette, the Law Offices of Kenge & Carboy, the town landfill, and so forth. I say let’s add a little more irony to the phrase “wish you were here.”

Oh, and here’s a green tip from the Guardian post: Sending birthday postcards in lieu of cards with envelopes saves paper and the need to recycle or discard the envelope. And postcard rates are slightly cheaper than letters. Just a thought.

Green Thoughts

By Richard Romano on July 16th, 2008

First of all, I would like to take this opportunity to declare a permanent moratorium on the phrase “It’s not easy being green.” It seems that almost every article or blog post in recent memory has featured this as a head or subhead. It makes me want to get rid of all my Muppets albums!

That said, unless you’ve been trapped in an underwater pyramid for the past 18 months, you know that so-called “green” initiatives—that is, environmentally responsible and sustainable business practices—are becoming ever more crucial for consumers and, ergo, businesses, and the printing industry (which we could argue has been green for decades, is no exception.

For example, DoubleClick (via eMarketer) has found that:

60% of US adults who make online purchases say that it is very or extremely important to them that a company is environmentally conscious.

Almost half of those who make online purchases said they specifically search for environmentally-friendly products at least some of the time.

More importantly, 45% of respondents who make online purchases said they would pay at least 5% more for a product that is promoted with environmentally-friendly attributes. An additional 22% were willing to pay at least 10% more.

38% of respondents said the most attractive type of environmentally-conscious marketing focused on specific user benefits such as saving money on bills or products lasting longer.

Specific environmental benefits were a distant second, cited by 21% of those surveyed as the most attractive type of environmentally-friendly marketing.

As a result, companies are clambering to beef up their “green cred,” but questions remain. To that end, WhatTheyThink has recently released a special report, Printing Goes Green: A WhatTheyThink Primer on Environmental Sustainability in the Commercial Printing Industry, which includes the results of a survey conducted by the WhatTheyThink Economics and Research Center. It found that, among commercial printers, the issue is front and center, even if few have taken many steps beyond using and/or recommending recycled paper.

A Google search or two turns up no shortage of companies that tout their environmentally responsible practices, but, as it turns out, companies often oversell the extent of their greenness. Yes, we’re shocked, shocked, to discover that companies sometimes misrepresent themselves. This is often referred to as “greenwashing,” and anecdotal evidence suggests that consumers increasingly insist that businesses put their money (long green?) where their mouths are. But how to prove it?

One way—which we discuss in the WhatTheyThink report—is known as “chain of custody” certification programs, in which an oversight organization (such as the Forest Stewardship Council (FSC) offers official guarantees about the production of certain products; that is, the path taken by that product’s raw materials from its origin (like a forest in the case of paper products) to the consumer, including all successive stages of processing, transformation, manufacturing, and distribution. Chain of custody certification corroborates the promise that is being made to consumers. So, for example, printers and other companies who work with paper products can either be FSC-certified or use FSC-certified materials.

Now, it probably goes without saying (but I’ll say it anyway) that not everyone believes that environmental sustainability and/or climate change are especially crucial issues, some folks feeling that it is simply “political correctness run amok.” (See, for example, this Brandweek story about a small but vocal minority of “Never Greens.”) It’s become a curiously political issue, for reasons passing understanding. Even if the vast majority of climate scientists are wrong (and, by the way, getting scientists to agree on anything is nothing short of a miracle, which is itself tacit evidence that there may very well be something to it), it’s hard to see how focusing on environmental sustainability is a bad thing. For example, why can’t “green” technologies be an economic growth area—or do people prefer large, illusory, unsustainable economic bubbles (as per this Onion article)? Or do people just really like pollution?

And free-market, small-government advocates should be content in the fact that the pressures companies face to go green are exactly what proponents of market-based solutions say should happen: the market is demanding something, and businesses can either respond accordingly or lose business. After all, the emphasis on environmental sustainability has come without any interference or pressure from the government. The trick is for companies to see green initiatives as an opportunity, not an imposition. Just like any other business challenge.

That said, there is the danger that if everyone starts going green, then it stops becoming a differentiator and becomes a moot point. Well, let’s jump off that bridge when we get to it! And, of course, you can probably say the same thing about any competitive advantage.

Whether the green movement simply the fad du jour and everyone will lose interest in a year or two remains to be seen. (Remember when ISO 9001 certification was the talk of the town? Now how many companies make any reference to it?) But for now, it’s the way things are, and consumers are expecting some level of “greenness” on the part of the companies they choose to do business with. And, again, printers are no exception.

Admittedly, some people grudgingly go green…but As Senator John McCain, the presumptive Republican nominee for President said, in an address at an Associated Press event held on April 14, 2008, which I attended, “Even if we’re wrong and there is no climate change, the worst that will happen is we leave a cleaner planet to our kids.”

So to help printing companies, their suppliers, and their customers navigate turbulent green waters, WhatTheyThink’s Printing Goes Green report is there to help guide the way. 

2007 Household Diary Study Available

By Adam Dewitz on July 16th, 2008

The USPS has released their 2007 Household Diary Study. The Household Diary Study is a multi-year study started in 1987 that aims to provide a “comprehensive and continuous description of the mail originating and destinating in American household.”

The report is available here (or as a PDF here).

Print in the Mix has pulled some of the facts the study: Chapter 5: Advertising Mail, Chapter 6: Periodicals (free login required).

Heidelberger Druckmaschinen Hits 10-Year Low

By Adam Dewitz on July 14th, 2008

Bloomberg.com Europe reported on Friday that Heidelberger Druckmaschinen AG has hit a 10-Year Low after JPMorgan downgraded the company’s recommendation from neutral to underweight:

JPMorgan cut its recommendation to “underweight” from “neutral,” arguing the Heidelberg, Germany-based company lacks growth and its reorganization plan is insufficient. The manufacturer said yesterday that it’s facing a “prolonged” slowdown and announced a plan to cut 500 jobs and reduce costs by 100 million euros ($158 million).

The measures are “insufficient to raise the profitability back to previous levels,” Equinet said, downgrading the stock to “reduce” from “hold.” Separately, DZ Bank AG cut its price estimate for Heidelberger Druck by 29 percent to 10 euros and confirmed its “sell” recommendation.

On Friday the company announced that it planned on cutting 500 jobs and that preliminary sales results for the first quarter were 640 and 660 million Euro down from 742 million Euro a year ago.

In the past year the company completed a stock buyback. The stock they bought now trades for a third of the average purchase price. That’s got to hurt.