Prospectus A Vertical-Market Approach to Document Services in the U.S.: The Evolution from Printer to Partner

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1 Prospectus A Vertical-Market Approach to Document Services in the U.S.: The Evolution from Printer to Partner Focused Focused Document service requirements for 10 vertical industries Opportunities & challenges for document service providers Headquarters 97 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts Europe Sceptre House, 7-9 Castle Street Luton, Bedfordshire, Asia Hiroo Office Building Hiroo Shibuya-ku United Kingdom LU1 3AJ Tokyo Japan

2 Introduction The successful document services provider of today has evolved from the average provider of just a few years ago. Many of today s providers are savvier, business-process-focused, and capable of delivering a broad range of document services beyond print. They have cultivated a comprehensive knowledge of their customers business challenges, and understand how to leverage that knowledge to enable greater success for their customers as well as their own enterprises. This is a signifi cant evolution that has occurred due to customer demand, and it has dramatically increased the need for service providers to understand their customers business situations. Core to this understanding is knowledge of customers vertical industries and the documents and document-intensive workfl ows that are of key importance to those industries. Vertical industry expertise forms the foundation for a business process approach to document services. Vertical industry information is also a critical component of strategic planning for document services providers who seek to grow customer share and total customer base. An understanding of primary print applications and important ancillary services enables document services executives to effectively evaluate opportunities and select those that offer the greatest growth and/or most closely match the capabilities of their organizations and offer the greatest chance for success. The InfoTrends study entitled A Vertical-Market Approach to Document Services in the U.S.: The Evolution from Printer to Partner will provide the information that document services providers and their suppliers require to better serve their existing markets, increase their share, and successfully target new opportunities. Project Objectives and Scope The study will survey document owners and print buyers across multiple vertical industries in the U.S. to create a detailed profi le of the document services requirements in each market. This study will focus on document services that are provided on-site or off-site by internal, staffed print or copy centers or by external printers, service bureaus, or document outsourcing providers. It will explicitly exclude document applications produced on un-staffed, self-service workgroup or personal devices. This study will profi le the document services requirements for 10 vertical industries. The industries will be defi ned by their North American Industrial Classifi cation System (NAICS) code. The following industries are suggested, but the final list will be determined by the charter subscribers to the study. Educational Services (NAICS 61) Executive, Legislative, and Other General Government Support (NAICS 921) Financial Services (with the following NAICS codes to be considered as a single group) o Credit Intermediation and Related Activities (NAICS 522) o Securities, Commodity Contracts, and Other Financial Investments and Related Activities (NAICS 523) Health Care and Social Assistance (NAICS 62) Insurance Carriers and Related Activities (NAICS 524) Legal Services (NAICS 5411) Pharmaceutical and Medicine Manufacturing (NAICS 3254) Retail Trade (NAICS 44 and 45) Telecommunications (NAICS 517) Transportation Equipment Manufacturing (NAICS 336)

3 The study will provide the following information for each vertical market: Current and planned print spending by application for the following applications: o Financial/Legal printing including policies, contracts, or other compliance documents o Directories o Statements/Invoices o Spreadsheets/Memos o Newsletters o Manuals/Technical Documentation o Proposals, reports o Books o Business reports and presentations o Offi ce stationery (including business cards) o Forms o Catalogs o Direct mail o Magazines/Periodicals o Brochures, fl yers, sell sheets, and other sales and marketing collateral o Print advertising, including inserts and coupons o Accounting, payroll, inventory, or other computer system output o Investor publications including annual reports o Large format documents (posters, banners, presentation boards) o Packaging o Labels Current and planned expenditures on document services, including: o Creative and design o Document composition and layout including forms design o Document imaging and scanning (including OCR/ICR, coding, indexing, electronic fi le conversion) o Archiving (hard copy, electronic) o Records management o Document management or digital asset management o Incoming and outgoing mail services o Warehousing and fulfi llment o Multi-channel delivery o Web site design and management o Personalized communications o Document workfl ow consulting services o Print procurement and management services

4 In addition, the study will examine the impact of the primary trends impacting the document services market, including: The shift to electronic delivery of documents The shift from offset to digital print The adoption of variable data printing programs The use of internal versus external printing facilities The utilization of outsourcing and document process outsourcing service providers The use of the Internet to obtain document services, including print procurement, auctions, online creation and composition services, multi-channel one-to-one marketing programs, and digital fulfi llment Perceived quality requirements by application and by vertical Perceived document criticality; since not all documents have the same importance, the study will provide insight on critical documents within each vertical Channel preferences Enterprise policies regarding the procurement of print and paper This study builds on previous InfoTrends print customer research, including: Print Opportunities Among Large Corporate Customers, 1997 The Future of Corporate Document Production, 1998 The Corporate Print Customer, 1999 Print e-procurement: Changing the Face of the Printing Industry, 2000 The New Corporate Print Customer: A Profi le of a Market in Transition, 2003 Document Process Outsourcing: Business Strategies for Successful Market Engagement, 2005 The Evolving U.S. Digital Color On Demand Printing Opportunity, 2005 Methodology InfoTrends will conduct extensive interviews with at least 50 document owners and 50 print buyers in each vertical industry (10 industries) for a total of at least 1,000 responses. We defi ne a document owner as an individual who is responsible for managing the creation, production, and/or distribution of specifi c documents for their department or company. We defi ne a print buyer as an individual for whom some portion of their job responsibility includes the purchase of print. InfoTrends will also thoroughly examine existing market information by utilizing a variety of sources that include: U.S. Industrial Census data Periodicals and trade articles Published industry reports Industry databases Research reports

5 Establishment Size While different verticals have different size dynamics, our goal will be to provide data on the entire vertical with a higher sampling of larger organizations (which we defi ne as having over 500 employees), as they generate a disproportionate share of printing. Deliverables InfoTrends will conduct extensive analysis of primary and secondary research to develop a comprehensive understanding of the document services requirements for each vertical market, and the opportunities and issues for document services providers. Clients will receive a variety of reports and data designed for senior management, product managers and planners, and sales and marketing executives. The material will include: An Executive Summary that addresses key issues, fi ndings, and overall recommendations A detailed written report (at least 150 pages) with text, charts, and graphs addressing the objectives of the study A set of PowerPoint slides for internal communication of the research results A data book of survey research for additional analysis of key questions and market segments with extensive cross-tabulated data Who Should Subscribe Print Service and Document Outsourcing Service Providers Business Process Outsourcing Companies Commercial Printers/Specialty Printers Quick Printers/Franchises Digital Printers Publishers Statement Printers e-print Providers Print Brokers Corporate Managers, Document Owners, and Print Buyers seeking information on the opportunities presented by document process outsourcing Equipment Manufacturers who serve the printing industry

6 Project Schedule InfoTrends intends to begin this project in early The project will be completed by the end of the second quarter. Throughout the project, InfoTrends will issue regular updates on status of the project. Early study sponsors will have input into the development of the survey and will help shape the overall study in addition to receiving a discounted price. Key project milestones are as follows: January 20, 2006 Last date for charter subscribers. March 15, 2006 Complete all surveys May 15, 2006 Complete analysis and draft report June 2006 Deliver fi nal report Terms and Conditions Liability for Advice Although reasonable efforts will be made by InfoTrends to ensure the completeness and accuracy of the information contained in written and oral reports in connection with the proposed study, no liability can be accepted by InfoTrends for the results of any actions taken by the Client in connection with such information, opinions, or advice. Copyrights InfoTrends retains all Copyrights. Reproduction of any material is not permitted without the written consent of InfoTrends. Confidentiality InfoTrends will use its best efforts to ensure that any confi dential information obtained about the Client and its business during the course of the proposed study is not, unless agreed otherwise in advance, disclosed to any third-party without the prior written permission of the Client. InfoTrends retains the right to re-use any non-proprietary information as part of its ongoing analysis of the print buyer market. Timely Delivery InfoTrends will take all reasonable steps to ensure that the time scales called for by the proposed study are met in accordance with the agreed schedule, but no liability can be accepted for the consequences of delays, howsoever caused. Terms One half of the fee will be due upon initiation, and the other half will be due upon report delivery.

7 Authorization A Vertical-Market Approach to Document Services in the U.S.: The Evolution from Printer to Partner By January 20, 2006: Complete report with data tabs $10,995 Optional Briefi ng $2,500 (+ travel expenses if off-site) After January 20, 2006: Complete report with data tabs $12,995 Optional Briefi ng $2,500 (+ travel expenses if off-site) (Please print or attach your business card) PO Number: Signature: Name: Title: Company: Street Address: City, State, Zip: Telephone: Fax:

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