Leadership Opportunities

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Leadership Opportunities

• How Do Overseas Top Mailinghouses Exploit the
  Full Value of Mail?
• A Look Beyond the Border.
• Michael Ehrhart
• Océ Printing Systems
• Germany

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A look beyond the border USA ...
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... Europe The Land of Diversity

• Population 375 million
• 25 countries
• 20 languages

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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Pozzoni (Italy) challenge Operating Efficiency

• Workflow ineffiencies
• Availabiltiy
• Multi-vendor inconsistencies
• Project complexities

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Business case Do more with less

• Rapid availability
• Avoid penalties
• Predictable liquidity
• Low-effort vendor management
• Short-run job flexibiltiy
• Uptime
• Response time
• Service performance level

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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Challenge Too many small players.A case for
integration - or is it?

• The case in favor of integration

• The case against integration

Will your company drive a merger - or be
driven? How can alliances work for your company?
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Management reader on integration, mergers,
alliances

• "Buy or be bought
• Many will not survive - how to? (Boston
  Consulting Group, 04/2000, 9 pp., www.bcg.com)
• "Work begins after the deal is closed
• The first 12 months after a merger are the most
  critical. How to succeed how to avoid 7 most
  common traps (Boston Consulting Group, 05/2000,
  12 pp., www.bcg.com)
• "When to think alliance
• In uncertain industries, the market rewards
  alliances more richly than mergers(McKinsey
  Quarterly 2000 4, www.mckinseyquarterly.com)

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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Challenge Swisscom Order processing quality,
speed, costs

• Parallel inbound mail processes
• Slow
• Error-prone
• Customer satisfaction
• Call volume in call center
• Delayed intial billing

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Application Inbound Mail Scanning
Business opportunity Response management!
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Business case Inbound Mail Scanning Costs down,
customer satisfaction up

• Positive effects on
• Order-to-delivery
• Customer satisfaction
• Call center service quality
• Inbound mail handling productivity
• Data filing consistency
• Retrievable
• Integration in business processes
• Shorter time to revenue
• Total cost of process

Distribute
Total Cost of Process
Sort and file
Prepare
Paper
Scanning
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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Challenge Enforcing a pricing strategy
(Source McKinseyQuarterly 2002, 4)
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Fighting for your price

• The sales reps and managers of a supplier often
  have only a vague understanding of its
  economics
• True / Not true?
• Know your customers economics - to the extent
  that he /she knows yours

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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Challenge ICS Entry into new markets. Case SME
business transformation

• Challenge
• critical business size
• critical market (small litho)
• multi-vendor environment
• operating costs cutsheet
• lightweight stocks
• manual workflow
• turnaround time
• run length

• Business case
• Transformation from Litho to Media Services
• One-stop shop(color, mono, litho, digital)
• Price competitive automation
• 12 employees

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Cases for new markets Large One-stop-shop, and
Convergence

• PBS, Danmark Convergence
• Payroll and payment systems
• 100 mail
• Security
• Expansion into Convergence
• PoD
• Direct Mail
• Flexibility

• GHP, Germany 1-stop
• Full-service Dialog marketing
• Highly diversified

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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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New services Web-enabled campaigns
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New services Web-enabled campaigns
Trends from the US often spill overThis one as
well?
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New services Campaign and collateral automation
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New services Campaign and collateral automation
What are the blocking points in marketing these
new capabilities?
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4 DM, ItalySegment focus with highlight color
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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Challenge in Finance, Telcos, Utilities Retain,
maximize profitable clients
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Business case Effective bills (color,
customized) improve bottom line

• Positive effects on ...
• Maximising business with A-clients
• Customer retention
• Response rates
• Acquisition costs
• Cross-sale, up-sale opportunities
• Brand image
• Outstanding payments
• Cash flow, liquidity
• Call-center utilisation
• Billing process TCO

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Applications
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Applications
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Applications
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Applications
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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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Strategies to improve revenues, stabilise margins
Customer retention
Cash collection
Strategy
New markets
New products
Pricing
Operating efficiency
Size
Admin
Strategy
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More cases from the corporate world ...
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... and more cases from the Direct Marketing
world
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• Direct Mail experts count on Océ.
• Because your business is our focus.

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