Case Study. Digital Investment Creates New Opportunities for Four Films Printing Group. January 2013

Transcription

1 Case Study January 2013 Digital Investment Creates New Opportunities for Four Films Printing Group Additional Capabilities Transform Digital Facility in Kuwait Comments or Questions?

2 Table of Contents Introduction... 2 Four Films Early Adoption of Digital Printing... 3 Planning for Growth... 4 Selling Digital and Reaching the Market... 4 Growing Print Volumes... 5 Profitability and Leaner Production... 5 An Even Bigger Future... 6 Xerox Business Development Consulting Partner... 8 About the Author... 8 Introduction Founded in 1974 as a prepress company, Kuwait-based Four Films Printing Group has become an industry leader in providing state-of-the-art offset and digital printing technologies. Employing over 300 people between its Shuwaikh Industrial Area and Kuwait City facility, Four Films is headed by Founder David Moujaes and Owner George Moujaes. The organization serves companies of all sizes in the architectural design, education, publishing, and packaging markets. It also caters to governmental sectors in Kuwait, the Gulf, MENA, and Europe. This article discusses how ongoing investments have enabled the company to redefine its short-run business and better serve its clients. InfoTrends

3 Four Films Early Adoption of Digital Printing Committed to quality and uniqueness, Four Films has invested in digital technologies to cater to its clients needs. In recounting the evolution of Four Films use of digital technologies, Managing Director David Moujaes states, We were pioneers in the prepress era, then we entered the offset printing market with direct-to-plate technologies in We purchased our first digital printing device in 2003 [a Xerox Digital Color 2060], but it was primarily used for proofing. Figure 1: Photograph of David and George Moujaes According to David Moujaes, the market for digital really didn t exist in Kuwait during the early years of the 21 st Century. He explains, Although we felt ready to explore this immature market, it wasn t until 2010 that we reached our turning point and our digital capabilities began to grow. In 2010, Alghanim Industries, the Xerox distributor in Kuwait scheduled a meeting with Four Films and XL (a Xerox partner) as specialists in providing consulting and training to the industry. During that discussion, the consultants highlighted some specific ways in which Four Films could create new business revenue streams and also develop existing offset accounts. After a technology assessment Four Films decided to better serve their customers that they should replace the DC2060 with a Xerox 700 including FreeFlow Print Server, scanner, feeder, stacker, and bookletmaker. Additionally, Four Films purchase included consulting from XL through the Xerox Business Development Program. InfoTrends

4 Moujaes describes Lake as a true partner, someone who really wanted to help us. He created a business plan that enabled us to grow. Planning for Growth Chris Lake, Operations Director of XL, worked with Four Films sales, production, and account teams on a wide range of subjects including sales and marketing strategy, sales training, sales team shadowing, cost and price modeling, print file and sample creation for specialty printing/packaging applications. While the focus of the engagement was transitioning the business based on the new digital technology, the relationship was much broader. Moujaes describes Lake as a true partner, someone who really wanted to help us. He created a business plan that enabled us to grow. He was truly a neutral party when it came to what was needed to meet our business goals. Selling Digital and Reaching the Market Lake offered education, support, and brought a new energy to the sales and production teams at Four Films. Moujaes elaborates, Chris made digital an opportunity rather than the enemy. The operations department was scared that digital was going to take their place and the sales department was afraid that digital wasn t mature enough. Through Lake s encouragement, everyone soon realized that digital would extend their limits rather than killing their professions. As digital flourished, it also brought new opportunities and skills to them. Lake used several tools from the Xerox ProfitAccelerator Business Development Collection, including the Value-Based Pricing Guide, Marketing Accelerator Kit, Job Preparation Guide for Designers, and the Pre-Press for Digital Printing Guide. Through a series of on-site consultations, he helped the teams to filter, absorb, and further develop their own assessment of digital and how it could benefit the company. Moujaes felt that these guides, coupled with discussions with Lake, helped Four Films to develop a deep understanding of market changes and also highlighted how to open new doors into the digital market. Figure 2: Sample ProfitAccelerator Tools InfoTrends

5 The shifts from offset to digital created a surge in digital output, but they also consequently freed the offset equipment for longer press runs that appropriately matched the production capabilities. Growing Print Volumes In addition to creating a leaner manufacturing environment for the company, Lake s consultancy and training helped to grow volume. The shifts from offset to digital created a surge in digital output, but they also consequently freed the offset equipment for longer press runs that more appropriately matched the production capabilities. Over 12 months, Four Films grew its print volumes by 6x to meet the initial engagement targets and developed profitable new and existing account relationships. In doing so, David and George Moujaes began to see the full potential of digital for their business. The company went from fewer than 10,000 A4 sheets per month on the DC2060 to over 60,000 sheets printed per month. Additional savings were projected on like-for-like job transfer to the new digital facility. New service offerings were added to the portfolio, including print-on-demand across all market sectors and B2C-focused print/gift applications driven by the Xerox 700 and their new finishing capabilities. Profitability and Leaner Production Bolstered by regular dialogue and service reviews, a close partner relationship developed between Four Films and Xerox. The increasingly profitable digital division and a monthon-month increase in digital print volumes drove the expansion of the digital operation. In spring 2012, Four Films turned to Xerox and XL once again to assess the Four Films short-run offset activity and outline how expanding digital production capabilities would impact the business. While the Xerox 700 was proving a highly profitable investment, the timing was right for Four Films to realize its full digital potential. To start, Lake surveyed Four Films offset and digital production jobs and put together a cost analysis. He analyzed the existing product offerings from business cards to highvolume packaging, and tracked number of accounts, orders, and quantities. Through this in-depth study and assessment of the previous 12-month period, Four Films and Xerox were able to explore what could be transferred from offset to digital, how to make the production process more efficient, and how to become a more profitable business. InfoTrends

6 Figure 3: David and George Moujaes Show igen Print Samples to H.E Sheikha Awrad Jaber Al-Ahmad Al-Jaber Al-Sabah Moujaes was surprised by the number of orders that were suggested for movement from one method to the other. For example, over 600 business card orders were shifted to digital, which gave Four Films more control and also more time to produce these orders. Additionally, expanding digital prepress and print capabilities would enable an evolution in the product offerings, ultimately increasing end-customer value and allowing Four Films to sell at higher margins. For example, coupons that had been printed offset could now incorporate variable data printing and versioning into the mix, creating a product that yielded higher coupon redemption rates for their clients. New packaging applications could be created as well packages could now be printed digitally to heighten security features and generate the ability to test new applications and creative solutions. The company is well on its way to greater efficiency and continues to look for innovative ways to grow business An Even Bigger Future According to David Moujaes, while the Xerox 700 proved a highly profitable investment, the timing was right to acquire a device with greater speed, media latitude and productivity. At drupa 2012, Four Films invested in the igen 4 EXP to accommodate the multitude of new solutions and applications they were now going to offer to clients. In addition to the igen, in May 2012 the company also signed its contract with Xerox for a Nuvera 144 EA, FreeFlow software, and additional Business Development support from XL. Now one of the largest commercial presses in Kuwait, Four Films has made these recent investments as part of a broader strategy to redefine its short-run business by moving away from offset and toward Xerox s digital technology. In doing so, the company is well on its way to greater efficiency and continues to look for innovative ways to grow business. InfoTrends

7 The company is also taking strategic moves in lean manufacturing through its digital production implementation. The increased capabilities are helping the company go-tomarket for new customers as a green production facility specializing in short-run, versioned, and personalized products that could not be offered previously. It s a continuous effort now, Moujaes notes, and we don t plan to stop. With all the advice from Chris, Xerox, and our other partners, the opportunity is great. Everyone is speaking the same language and wants us to be as efficient as possible. This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies. We believe that the sources of information on which our material is based are reliable and we have applied our best professional judgment to the data obtained. InfoTrends

8 Xerox Business Development Consulting Partner Chris Lake XL developing print in emerging markets XL Operations Director Headquartered in Dubai, XL is a global management consulting firm specializing in graphic communications in developed and emerging markets. With regional offices in Manchester and Johannesburg, XL works with creatives, manufacturers, print service providers, and end-users to achieve commercial, operational, and strategic objectives. As an independent production consultant, XL provides extensive consultancy, training, and learning services for Xerox sales teams and production customers across the full spectrum of print sectors. As a worldwide Xerox business partner, XL worked with industry professionals in over 40 countries in 2012 to develop organizational performance through investment in Xerox technologies and services. About the Author Nichole Jones Senior Research Analyst [email protected] Nichole Jones is a Senior Research Analyst for InfoTrends Business Development Strategies Production Printing and Packaging Consulting Services. Ms. Jones responsibilities include managing the promotion and distribution of InfoTrends content and assisting clients and channels in building business development programs. She is also responsible for developing curriculum and content for InfoTrends' e-learning programs, which deliver online sales training. Comments or Questions? InfoTrends