It’s the time of year for publishers and industry experts to make predictions about the year ahead. This column and next week’s will provide my market perspective for 2010 and discuss what print service providers (PSPs) and marketing service providers (MSPs) can do to participate.

The market perception is that the economy will improve within the next 12 months, and we are already seeing some signs of recovery. Nevertheless, credit and employment will remain tight, corporations will still be seeking deals on commodity items, downward price pressures will persist, and marketers will be focused on new customer acquisition as well as strong retention strategies with demonstrable ROI. The challenge for the graphic communications industry is that the print volume that was lost during the latest recession is gone forever. It has been replaced by new digital customized media options and alternatives. While print media is an integral component in the overall business communications cycle, companies of all sizes want it blended with online, social, and mobile solutions. Organizations that put the time and energy into building a digital foundation over the past two or three years will be rewarded because they are prepared to participate in the world of “interactive” customized communications. Those that did not will need to develop a solid “catch-up” strategy.

To survive in 2010 and beyond, print service providers will need to focus on innovative techniques to blend print with new media. Henry Chesbrough, a Professor at the University of California Berkley, wrote a book called Open Innovation. He defined innovation as the concept of combining external as well as internal ideas—in addition to internal and external strategies—and advancing competitively. Innovative graphic communications service providers must consider the surrounding forces to deliver new levels of innovation in 2010. They will need to implement innovative techniques that: