Killer App? It's W2P

Web-to-print (W2P) applications, where printers offer clients electronic production tools to place and manage print orders, richly deserve their reputation as the next killer application. Printing companies are discovering that using Internet technology to allow customers to drive production workflows from their computer desktops strengthens client bonds, boosts production efficiency and cuts costs.

A recent PIA/GATF survey found 50% of respondents offer online customer storefronts (specifically branded to a client), while 26% provide production portals (branded to the printer), with another 18% operating their own digital storefronts for selling print online to customers anywhere—the masses.

Moving job entry upstream to the customer improves throughput, reduces errors and improves cash flow, as in most e-commerce models, jobs are paid for upfront. W2P systems also offer printers the prospect of selling more services. On the client side, W2P applications fill a void created as corporate downsizing trimmed the ranks of professional print buyers. The systems provide an automated process for overworked marketing staff to efficiently control and manage brands.

Of printers participating in PIA/GATF's survey, 63% reported W2P systems increased the volume of work coming into their plants, more than one-third improved profitability, and 22% reported better cash flow.

“For every dollar of print sold there are $5 to $8 dollars in costs before print, and we are cutting those costs by automating front-end processes through W2P technology,” says Susan Moore, president, Digital Printing and Imaging (DPI), Kennesaw, GA, a provider of digital and variable-data printing.

“The relationship we have with clients using our W2P systems is intertwined, and we almost become one with the client. We understand and help solve their business challenges, and our online system becomes part of the clients' production workflow,” she says.

Adding these services was not without considerable work. “It is a challenging and complicated investment because the technology is always changing and so are customers' needs,” says Moore.

Options available for printers wanting to add W2P services: build the system internally, which requires upfront investment and IT expertise; use a packaged, turnkey system where hosting the service can be done internally or through a third party; or work with an application service provider (ASP) to host the system.

The majority of respondents, 41%, told PIA/GATF researchers that they built their W2P systems from scratch, while 21% opted for an ASP model, 17% bought a packaged solution and 16% customized a base system.

“ASP models are popular because they are easier to implement and offer lower upfront cost. As printers get used to providing W2P services via an ASP, they may opt to license a packaged software product and bring the service in-house because it is cheaper in the long run,” says Dave Thompson, president, Saepio Technologies, a provider of both W2P ASP services and software products.

According to Julie Shaffer, director of PIA/GATF's Digital Printing Council and a W2P guru, “Hosted solutions are the least customizable, but you are not responsible for hardware or software, only set-up and monthly maintenance fees.”

Some hosted providers in the print market space identified by Shaffer include Printable, PerfectProof, Printerpresence and Websitesforprinters. When considering this option, Shaffer says printers need to determine their comfort level for depending on an outside company to manage the system and the level of site customization offered.

Packaged solutions, she says, offer some customization, and most vendors offer ongoing support. In this case, the system is owned and operated by the printer, but can be hosted either internally or by a Web hosting organization. The prices to license these systems range from $20,000 to $100,000 plus, says Shaffer.

Options for printer's production portals, which are not branded to the customer, include Agfa Delano, Heidelberg Prinect Remote Access, Kodak Insite and Screen's Riteportal SE. These systems allow printers to interact directly with clients to initiate JDF job tickets, soft proofing and client approval.

DPI purchased its system from Saepio. “As a small company, we can't go into a Fortune 500 firm and claim to have the IT staff to support their changing needs. Saepio gives us creditability,” says Moore.

SugarBush Media Solutions, Auburn Hills, MI, spent four months building its own system before buying a solution from Press-sense.

“We decided it made more sense to buy than build,” says Mark Parent, SugarBush's president. In the last six years, the company has expanded its commercial printing operation to offer comprehensive marketing solutions that include strategic planning, copywriting, digital printing, one-to-one marketing, variable-data printing, mailing and W2P services.

This year, 20% of its clients will be using its W2P system, the company estimates; 60% of the company's online business comes from new clients.

A point often overlooked when printers build their own systems, says Parent, is that when the employees that built the system leave, the company struggles to keep it working.

When evaluating systems, he says, be sure to pay attention to the current process used to place orders. “You have a current imposition process and you may have to come up with a new workflow scenario,” he notes. “Press-sense offered great imposition tools to gang jobs; not all systems do that.”

Parent says management needs to understand how things are currently done and guide employees on what is expected with the new workflow. Otherwise, he says, employees will do the job the same as always.

“If you have a system that automates imposition and you have employees still doing impositions, you are not maximizing the system you have in place. If you get 70 orders a day, that can add two or three hours of imposition time that could have been eliminated,” says Parent.

Job ticketing may also create redundancies. Parent says his company was running two different job-ticketing processes until they replaced the former system with the one contained in Press-sense. “Web orders would come in and then a job ticket was manually entered into the system,” he adds.

Before investing in a system, he says, determine what you are willing to spend and what your return will be on the investment. (Read more on Parent's W2P experience at www.graphicartsmonthly.com.)

WorkflowOne, Dayton, OH, will invest $26 million in the next two years to upgrade its W2P services. The result will be a super portal that links clients and trade partners to the firm's internal operations. Called WorkflowOne Access, it will provide clients with online distributed print management, centralized brand control and performance metrics. The company outsources 45% of its printing work to qualified trade partners.

The company is part of Microsoft's “Early Adopter” program for Sharepoint 2007 servers. This software, along with Four51's e-commerce network, is the key component of the portal.

“This application will lead to double-digit growth,” says John Nicely, WorkflowOne's marketing VP.

The company is looking for select and qualified partners to outsource more of its work. “There are a lot of print shops that don't have the money to invest in W2P technologies. We want to set up programs in those shops that meet our criteria, where they can become partners and link into our system,” says Nicely. “About 45% of our volume is through electronic ordering, and it is only going to get bigger,” he contends.

ONLINE: www.dpiweb.com, gain.net, printable.com, saepio.com, sugarbushms.com, and workflowone.com. Visit graphicartsmonthly.com for a more comprehensive list.