As the world of printing continues to evolve, many predictions have been made. Printing will change. Offset will give way to digital. The printed word is dying.

Predictions are simply what they are. Predictions. In the future, the demand for print will remain strong. The printed word will survive. People will always want to read their daily newspapers for news and read a book sitting on the beach. Monthly publications and guides will remain, although they may become even more highly specialized than today. Direct mail and other forms of advertising will still be a vibrant part of the landscape, although they, too, are becoming more personalized.

The convergence of digital and offset printing will continue as it proves to be a profitable method of producing personalized print. Offset will continue to be a strong producer, and digital will continue its growth as a solution to meet new marketing needs. In fact, the digital printing industry was predicted by Cap Ventures to reach $4 billion annually by 2005.

Co-ordination in the Industry
This growth will require greater cooperation between suppliers, printing businesses and end users. The entire supply chain must work together -- understanding the needs at each step of production, creating proper technology to meet those needs, and delivering products efficiently and cost effectively to the end user.

Everyone in business today must upgrade his or her skills and knowledge to remain competitive. Not only must manufacturers work to develop the appropriate tools for production based on market demands, but content developers must keep up with advances in information management and the dissemination of information. There will be continued growth in the industry due to new applications and technology, and, by understanding the available capabilities, end users can design jobs to take full advantage of the evolving technology.

Digital technology allows the printer to develop a more solutions-oriented relationship with customers. Printers need to realize that companies today are looking for a competitive advantage, to sell more and to stand out. Since business is more competitive than ever, it is imperative that information and digital technology be used to help customers succeed by generating higher revenues, greater customer satisfaction and efficiency.

It's not a matter of working hard, but about creating awareness for the new services that digital offers today's printing community. As an example, digital technology provides tremendous opportunities for marketing communications. Businesses today are making huge investments in collecting information about consumers and business-to-business customers - all with the intent of enabling closer connections with these audiences. But beyond creating targeted mailing and telemarketing lists, this information is being vastly under-utilized. What can be done with all this information? It can be used to generate effective, highly personalized print programs and campaigns that generate much more significant response rates, lower the costs per lead, and generate greater customer retention.

Trends and Opportunities in Digital Printing
In the digital print arena, there are several trends driving the emergence of this technology. To be successful in this field, however, takes more than technology. Today, effective marketing, training and really understanding a customer's business problems are the keys to succeeding with digital printing.

Trends that have emerged in the marketplace for companies offering digital printing include:
· A growing realization of the power of -- and utilization of-- customer-relationship management (CRM) marketing. All companies want to get closer to, and sustain a more significant, long-term relationship with, their customers. In years past, it was simply called "building customer loyalty." As companies continue to seek more effective, distinctive marketing methods, they are using CRM software to collect in-depth information about their customers - such as buying habits and brand preferences. This information can then be used to produce variable data applications for effective marketing and documentation management. Through personalized and variable data printing, companies are learning that they can build a strong bond to their customers -- while maintaining them longer as customers with a higher lifetime value.

An important component of CRM is the ability to personalize communications delivered to a very specific audience. That ability greatly increases the effectiveness of the piece. According to the International School of Management in Dortmund, the success rate for fully customized direct mailings is nearly three times higher than standard mailings.

· Digital Asset Management is an increasingly valuable process. Today's trends in the area of digital asset management include Internet-to-print, e-commerce marketing, versioning, color print-on-demand and fully personalized printing. Many traditional printing companies have not been involved with asset management in the past. Understanding the value of asset management, setting up processes to manage this function, and fully utilizing its impact are very valuable exercises for any company involved in the production of such material.

· Volume migration between the data centers and the production departments. This move is a trend that will continue to place new pressures on a company's ability to plan and deliver product.

· Ongoing pressure to produce faster. Customers, both internal and external depending on a company's demands, are compressing their requirements for production. The good news is that job completion times for the personalized, digital method can be just one-fifth of the time required for conventional handling.

· Shorter runs that are updated more frequently. A majority of printers who use digital color are regularly producing jobs with run lengths greater than 1,000, although run lengths can range from as small as one to as large as tens of thousands, particularly with variable data applications. That means more variations in publications, especially as print becomes more diversified to appeal to different audiences.

· Changes in workflow and standards. In today's world, standards such as JDF and CIP4 are essential to the flow of information. Companies delivering a network of integrated workflow components that are modular, scalable and open will succeed. This type of workflow will connect business and production management, integrating the processing of production steps and connecting printers with print buyers.

A summary of market forces and the impact they have on the print media industry illustrates the components, pressure and opportunities available for the survival and success of printers today -- and tomorrow.

Digital's Ultimate Payoff The true payoff will be when printers are called on to be problem solvers and are a key part of a customer's team. The hope is that digital technology can move printers away from selling a perceived commodity, and instead offer valuable services to help a customer achieve success.

Reprinted with permission from Southwest Graphics magazine.