XEROX: BOOK IN TIME

MARKETING MANAGEMENT PRESENTATION

Roji Jacob Alex #23

Our company. Our capabilities. Our commitment.

FACTS
1. 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. worlds leading enterprise for business process and document management

Xeroxs core values

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.

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 the phone, they reach and serve their customers through their global sales force, independent agents, dealers, value-added resellers and systems integrators.

160 countries
They 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 employees

They 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.

What they offer. They provide the industrys broadest portfolio of document technology, services and software; and the most diverse array of business process and IT outsourcing support. Technology The 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 world Services Document outsourcing What they take on for their customers. Theyre behind the scenes managing the essential processes that businesses count on to be successful.
Business process outsourcing Information technology outsourcing

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

They 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. Its 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 development Innovation keeps them in the forefront of the industry. Four percent of Xeroxs 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

Case Study- Book in Time

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

Case Study- Book in Time

Xeroxs 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 Xeroxs 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.

Case Study- Book in Time

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
THEXEROXSOLUTION

Case Study- Book in Time

Market Research by Xerox revealed the following 53% of books were selected by subject, only 22% due to authors reputation Publisher name was simply not a factor in the customers 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

Case Study- Book in Time Distribution Channel Analysis

27% Publisher to Gen Retailers Publisher to Consumers Wholesaler to Gen Retailers To Other channels

50% 14% 9%

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

Case Study- Book in Time Worlds leading Book Publishers

6 5 4 3 2 1 0 % Bertelsmann, Germany Warner Books, US Simon & Schuster Pearson Readers Digest Random House

Simon & Schuster- Published under imprints Macmillan, Prentice hall & Scribner Pearson- Published under imprints Penguin & Ladybird.

Case Study- Book in Time Worlds leading Printing Companies

7000 6000 5000 4000 3000 2000 1000 0 RR Donnelley & sons Hallmark Quebecor Moore Corp Ltd Deluxe Corp

World Colour In Million $ Press 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.

Wholesalers

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

US Book Industry Analysis

Publisher s
End Customer

Authors
Size: Profit : 0~% of publishers profit. Or 10~15% of retail selling price

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

Printers
Size: $20B (40,000) (Printer:$10B Other raw materials: $1~5M)

Retailer
Wholesaler
Size: $7B (*2) Net margin: 1~2% Size: $4B (*1) Net margin: 3~5%

Value Chain for a $25 Book

$25

$17.5

$12.5

$4.5 $2.5 Authors Printers Publishers Wholesalers Retailers End-Customers

If a book price is $25: Authors: Fee is 1) out of publishers profit, or 2) 10%~15% of $25 ($2.5~$3.75) Printers: Publishers: Profit: 8%~15% ($2 ~ $3.75) Wholesalers: Retailers: Customers: Value chain Sale price: $25 Total margin (48%): $12 --------------------------------------Publishers price: $13 ==================== Manufacturing costs (20%): $2.6 Authors royalty (20%): $2.6 Overhead costs (30%): $3.9 Book return (25%, $13-2.6-2.6-3.9-0.65): $3.25 Best margin for publ. (5%): $0.65 Manufacturing costs (of 300 page) Film: $1,000 ($800~1200) Plates: $1,500 Labor: $1,000 Total: $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 bookincluding binding and covercan 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 books Universities 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 Time

U.S. Book Market- 2.4 billion books sold 68% in Paperback format and 69% Non-fiction Xerox 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 eretailer 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

Where does Amazon Fit?

Normal price $25 Amazon Price $18 $17.5

$12.5

$4.5 $2.5 Authors Printers Publishers Wholesalers Amazon.com End-Customers

Case Study- Book in Time Worlds leading Book Publishers (2009)

8 7 6 5 4 3 2 1 0 In Billion US$ ThomsonReute rs Wolters Kluwer Bertelsmann Hachette Livre Mc Graw Hill Pearson Reed Elsevier

CONCLUSION
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. .

Questions
What is the old name of Xerox India? When was the first photocopier introduced? One Major Publisher in Europe who uses the BIT technology?

Answer
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 selfpublished 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.

Thank You

The facilities for a BIT

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 prepress 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