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Strategies in the digital printing value system
KTH, School of Computer Science and Communication (CSC), Numerical Analysis and Computer Science, NADA.
2006 (English)Licentiate thesis, comprehensive summary (Other scientific)
Abstract [en]

The research objective of this thesis is to identify corporate strategies and strategic decisions in the digital printing business and to analyze how these have evolved due to the introduction of digital printing. This thesis comprises three separate studies, all based on qualitative case methodology. The first study is focused on digital printing houses and how their business strategies have changed due to their investment in digital printing production equipment. The second study concentrates on customers in the digital printing value system and how they experience the value they get from purchasing digitally printed products. In the third study, it is analyzed how a successful producer–customer relationship can create value for both parts in a dynamic and changing business environment.

The results indicate that vertical integration among digital printing houses is a valid strategy for overcoming problems related to digital printing, such as not being able to acquire orders suitable for digital printing. The main reason among customers to start using digital printing is the option of ordering short print runs which reduces stock keeping and discarded volumes. This application is the customers’ most important perceived value. The use of more complex applications, such as variable data printing, is very modest, although many respondents say that they either want to start using customization in their print production or already have received some value from simpler variable data printing applications (e.g. addressing or changing logos and names).

The competitive environment in the printing industry is becoming increasingly dynamic and the printing industry is today influenced by a heterogeneous group of competitors and it is therefore important, for printing houses, to engage in hypercompetitive-like behavior. Working with speed, surprise, superior customer satisfaction and continually trying to shift the rules of the industry in the company’s favor, is a strategy to maintain business viability and competitiveness. As a complement to the cost and quality focus, timing and know-how are becoming even more important in the industry when a company wants to satisfy customer needs.

The conclusion is that digital printing is used effectively and successfully when the main purpose is not to print. By striving towards non-printed solutions, digital printing becomes a natural output method when printed material is needed, since it is possible for the customers to order exactly what they want, when they want it, without any need for stock keeping. Vertical integration has helped digital printing houses acquire appropriate input for their printing presses. Horizontal integration into additional output channels, such as electronic publishing, is a natural development in the industry and provides support for the digital printing business.

Place, publisher, year, edition, pages
Stockholm: KTH , 2006. , ix, 63 p.
Series
Trita-CSC-A, ISSN 1653-5723 ; 2006:18
National Category
Computer Science
Identifiers
URN: urn:nbn:se:kth:diva-4165ISBN: 91-7178-475-6 (print)OAI: oai:DiVA.org:kth-4165DiVA: diva2:11010
Presentation
2006-11-17, E2, KTH, Lindstedtsvägen, Stockholm, 11:00
Opponent
Supervisors
Note
QC 20101119Available from: 2006-11-08 Created: 2006-11-08 Last updated: 2010-11-19Bibliographically approved
List of papers
1. Strategies for Successful Digital Printing
Open this publication in new window or tab >>Strategies for Successful Digital Printing
2006 (English)In: Journal of Media Business Studies, ISSN 1652-2354, Vol. 3, no 1, 65-86 p.Article in journal (Refereed) Published
Abstract [en]

Today the printing industry is fragmented and suffers from overcapacity, and printed material is regarded ascommodity products. In this article, corporate strategy owing to the introduction of digital printing technology isstudied. The focus is on companies that made digital printing investments. Differentiation is a strategicapproach that is necessary for digital printing companies to compete successfully. The results show that verticalintegration is a way to ensure appropriate supply to the digital printing unit and to add customer value to theservice. Educating customers is a way to create a market for the value-added products of digital printing.

Keyword
digital printing, business strategy, vertical integration, differentiation, customer value
National Category
Other Mechanical Engineering Media and Communications
Identifiers
urn:nbn:se:kth:diva-9397 (URN)
Note
QC 20100826Available from: 2008-10-30 Created: 2008-10-30 Last updated: 2010-08-26Bibliographically approved
2. Perceived Satisfaction by Customers in the Digital Printing Value System
Open this publication in new window or tab >>Perceived Satisfaction by Customers in the Digital Printing Value System
2006 (English)In: 58th Annual Technical Conference of the Technical Association of the Graphic Arts, TAGA 2006, 2006, 486-511 p.Conference paper, Published paper (Refereed)
Abstract [en]

Adding customer value to products and applications is important to be able to successfully compete usingdigital printing. In this study the perceived satisfaction of added value was explored. It was concluded thatdigital printing does not entirely fulfill the demands that customers have on their printed material, but it wasindicated that digital printing will become more important for producing printed material in the future.Among the critical success factors, time, quality, functionality/possibilities, and price, quality was the factorthat customers deemed most important. This was also the factor that they were least satisfied with in relationto their needs. Time was the only factor that the customers where satisfied or more than satisfied with.Based on the assumption that it is not possible to, realistically, have high demands on all critical success factorsand that there has to be some tradeoff between them, the factors have been summarized and compared usingmean-centered values.

Keyword
customer value, digital printing, business strategy, vertical integration
National Category
Other Mechanical Engineering Media and Communications
Identifiers
urn:nbn:se:kth:diva-9398 (URN)2-s2.0-33847342006 (Scopus ID)
Note
QC 20100826Available from: 2008-10-30 Created: 2008-10-30 Last updated: 2010-08-26Bibliographically approved
3. Creation of Customer Value Using Digital Printing in a Dynamic Business Environment
Open this publication in new window or tab >>Creation of Customer Value Using Digital Printing in a Dynamic Business Environment
2007 (English)In: TAGA Journal, ISSN 1748-0337, E-ISSN 1748-0345, Vol. 3, no 3, 128-143 p.Article in journal (Refereed) Published
Abstract [en]

Digital printing is used most successfully with a differentiated strategy that delivers high customer value whenprinting short runs or customized printed matters. This qualitative case study of a customer – supplierrelationship aims to identify and analyze how digital printing can be utilized as a business tool in therelationship between a service provider and a customer in a dynamic business environment.The service provider in this case has strategically changed the focus of the company from a production to aservice company with the focus on customer contact. Even though the service provider had an advantage on themarket, they choose to create disruption since they realized that they could not sustain this advantage forever ontheir dynamic market. This was realized even though it meant cannibalizing on their former core business –printing.The study indicates that a hypercompetitive-like behavior is becoming increasingly important to be able tosurvive in the dynamic and changing printing industry. The industry is today influenced by, and competingwith many companies that are not in-industry. By reengineering their products and services and moving fromthe cost-quality arena to timing and know-how it is possible for the service provider to control the outcome ofthe industry in a more successful manor.This study concludes that digital printing is used successfully when the customer’s main objective is not to printat all. Printed material will probably not disappear in a foreseeable future and therefore digital printing mostcertainly will increase its importance as a production technology. In the strive towards a paperless office, digitalprinting is a natural, convenient and profitable way of producing a non-electronic output is digital printing.

Keyword
customer value; digital printing; business strategy; differentiation; hypercompetition
National Category
Other Mechanical Engineering Media and Communications
Identifiers
urn:nbn:se:kth:diva-9399 (URN)
Note

QC 20100826

Available from: 2008-10-30 Created: 2008-10-30 Last updated: 2016-12-09Bibliographically approved

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