risks and facts for the creation of online distribution structures - e-business print

Bernd ZipperCEO zipcon consulting GmbHAssistant Professor E-Business Print, University of Wuppertal

analyze • advice • implement

From euphoria back to reality:

Risks and facts for the creation of online distribution structures


If it always were so easy…


… and it sounds sooooo good – doesn‘t it?

… und es hört sich soooo gut an – oder?Customer

Trade Distribution

Logistic

Production

Research & Development

DigitaldigitizableNon-digitizable,

configurableNon-digitizable,

non-configurableProduct

R & D costs R & D costs R & D costs R & D costs

Production costs Production costs Production costs Production costs

Packaging and transportation

costs


costs

Gross margin

Profit margin

Profit margin

Profit margin

Market price

source: referred to Schinzer 1998


Do you notice how fast you compare apples with oranges?


Print + media remain in the area of a hybride business model

… und es hört sich soooo gut an – oder?Customer

Trade Distribution

Logistic

Production

Research & Development

DigitaldigitizableNon-digitizable,

configurableNon-digitizable,

non-configurableProduct

R & D costs R & D costs R & D costs R & D costs

Production costs Production costs Production costs Production costs


costs


costs

Gross margin

Profit margin

Profit margin

Profit margin

Market price

source: referred to Schinzer 1998


Just as a reminder:

Yes, we make our living

with printed paper.


Almost all of today‘s large providers startet 10 years ago and do have a long “process of development and distress” behind them.

The internet is like real life: Earning money as quickly as possible, happens so seldomly as winning the lottery jackpot…

Brief statement…


Top 6 mistakes in E-Business Print…

Everything in the internet is always cheap.

Online distribution = cheap employees

Online print = Quality? Doesn’t matter.

“I will develop the software by myself.”

“Programming will be done by a student.”


Top 6 mistakes in E-Business Print…

As owner I do not need to understand the internet – instead I will “buy” me a specialist!


Caution: you are leaving the comfort zone!

reference: Prof. Jürgen Moormann, ProcessLab Frankfurt School of Finance

Changes in the market

Regulations

Customer structure

Product complexity

Technology

no-

gro

wth

dynam

ichig

hly

co

mp

eti

tive

Profit chain

Levels

of

com

peti

tion

Deconstruction of value-added

chain

Linear product innovation

Service and quality

orientationRegulated

market

New business models

Traditional value chaineWertkette

New value chain


“The fisch always stinks from the head downwards …”

Every enterpreneur, who wants to be successful online needs to know, accept, adapt and use the regulations and principles on the internet.


What does this mean?

40% of all online print projects fail, because the owner/manager is not willing to accept the new principles …

“I do know my customer…”



Even if the enterpreneur “knows” his client…

Until the start of his own offering, he has never met him as an online customer so far.



For the customer there are completely different principles effective … and you should know them.


Challenge: Transparency

Make sure that the others are talking about you – and so far, there have never been so many chances for that!


Develop your “market place” strategy

Facebook

RSS

Flickr

Picasa

XING

Google+

Pinterest

Twitter

YouTube

LinkedIn

Social

media strategy


Pay attention to…

Darauf sollten Sie achten …Absolute usability.Look to it that there is a constant visual appearamce, B2B and B2C ask for the same “service elements” – modernize outdated pages and regularly update them!1.“live” multichannel & multi-shop!Develop your own multichannel-shop strategy on basis of a flexible platform and integrate mobile commerce and themed shops right from the beginning.

2.Social media “integrated properly”!It used to be the market place – today it is LinkedIn and Facebook – you must ensure, that people are talking about you and integrate external platforms with your shop.3.

resource: zipcon/HighText Verlag


Pay attention to …

Darauf sollten Sie achten …Personalized communication!Any possible communication in the shop should be CUSTOMER-RELATED and not unattributed. Partition and sort your offerings for your customer.4.Multimedial -based presentations.Complex Products require explainations and demonstrations via video, animation, chat, webinar, 3D views, and possibly samples.5.Customer service as sales support.Hotline, chat, personal support = “Up-Sales” – the customer notices that real persons work on their jobs and in the best case establish a true relationship with the shop and your business.6.



Pay attention to …

Darauf sollten Sie achten …Ensure “consistency”!Only if all of your statements, product descriptions, etc. are identical on all of the used platforms (and looking good), your customer will trust you and value is created.7.Flexible E-Commerce architecturesThe web is growing daily – only if your software architecture is growing along, you can secure stable long-term growth and continually expand into new markets.8.100% analysisNever ever before you had the chance to 100% get to know what your customer likes and what he dislikes. Are your products profitable? This is what you definately need to find out and know.9.



Impulse to buy: when does a customer buy?

detailed and informative product descriptions

appealing product presentation

product recommendations and evaluations of other cutomers

professional design of the webseite

additional product informations

optimized form for mobile devices

offering via app

integration of social media elements

44.3%

26.0%

21.0%

16.9%

15.5%

10.9%

5.1%

3.9%

37.9%

33.9%

32.8%

30.6%

29.7%

15.9%

8.7%

7.9%

absoluty important very important

How to read the graphic: 44,3 % of the customers think that detailed and informative product desriptions are absolutly important.

source: zipcon/HighText Verlag


Frontend 1x1 Meeting the customer‘s expectations

DesignLovingly and complexe design1.

2.3.

UsabilityEasy and intuitive usability

SearchIntelligent search with recommendation feature



Backend 1x1 Transparency towards customers and suppliers

Close integrationInterlinking of shop, materials management, and MIS1.

2.3.

High predictabilityPartners expect predictable informations (pricing, shipping time, etc.)

Intelligent middlewareIntegration of B2B customer systems via an intelligent I/O



Conclusion:

Selling print on the interent is only successfull with teamwork!

Print-Know-How combined with modern IT and web knowledge are the key to success.

Turn it into business success!


Strategies …

Copying business models is seldomly successfull.

Reinvent yourself – in case of need with external consultancy!


… this means for us as printers.

Rethinking.

You will become a solution and online provider. Whether you like it – or not.


… this means for us as printers.

Think holistically!

Think like your customers do … and not like your IT or print technologist!


The bottom line.

It is also not done with a single strategy.

My hint:Start thinking hard and Make long-term plans!


Thank you for your attention.

Comments, remarks and complaints:

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