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The Paradox of Print E-Commerce

During the past two years,

Sunday, April 01, 2001

During the past two years, the graphic arts industry has experienced a tremendous surge in e-commerce activity. In that time period, the number of print-related Internet companies grew exponentially, from a mere handful in early 1999 to over 200 firms today. There is now widespread belief (at least among industry "experts") that e-commerce will play a significant role in the future of the graphic arts industry

So far, however, the actual adoption rate of full-blown print e-commerce has been relatively low. Although the doubts and concerns about print e-commerce have been expressed in a number of ways, printers’ skepticism regarding e-commerce results ultimately from their uncertainty about one critical issue: Can e-commerce really improve a printing company’s profits? Even after all of the seminars, magazine articles and expert analysis of the past two years, many printers still do not have a clear answer to this fundamental question. Part of the difficulty in answering this question arises from the "newness" of print e-commerce, and part results from the ever-changing and complex nature of the print e-commerce landscape. But much of the uncertainty exists because

e-commerce presents printers with a classic paradox, and the "resolution" of that paradox involves difficult business decisions.


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About David Dodd

G. David Dodd is available for speaking engagements and consulting projects. To get more information contact us here.

G. David Dodd is a principal of Point Balance, LLC ( www.pointbalance.com ), an executive education and management consulting firm. Point Balance provides cutting-edge management education programs designed for printing and publishing executives. The firm also provides management consulting services involving business strategy development, strategic marketing, cost management (including activity-based costing), business process management, and balanced scorecard performance management systems. Dodd is a co-author of Activity-Based Costing for Printers: An Implementation Guide, the authoritative resource relating to the use of activity-based costing by printing and publishing firms. Dodd also co-authored Making Value Added Services Work, a comprehensive reference tool for printing company managers who are just beginning to consider diversification or who have already added new services and are not receiving the benefits they expected.

David Dodd can be reached at [email protected],931-707-5105.

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