WhatTheyThink

Premium Commentary & Analysis

Transformation: Are You Taking the Right Steps to Change?

Service providers of all sizes are constantly talking about the need to transform their businesses from commodity-oriented organizations to marketing and communication service specialists. A recent article from McKinsey & Company details six steps for driving revenue and margin improvements, and these steps are discussed in this piece.

Thursday, April 23, 2015

Service providers of all sizes are constantly talking about the need to transform their businesses from commodity-oriented organizations to marketing and communication service specialists. In March 2015, McKinsey & Company published an article entitled Six Steps to Transform Your Marketing and Sales Capabilities authored by Homayoun Hatami, Kevin McLellan, Candace Lun Plotkin, and Patrick Schulze. This article stated, “More than two-thirds of the traditional commercial transformations fail. Consistently beating the market takes superior internal capabilities, most notably commercial capabilities in marketing and sales.” The article detailed six steps for upgrading marketing, sales, and pricing to drive revenue and margin improvements. These recommendations are the result of more than 100 commercial transformations that the McKinsey team worked on as well as a survey of 2,300 executives.

While other firms have made comparable investments in digital technologies and may be making the move into marketing services, the people and processes driving these solutions into the market can quickly become a competitive advantage. McKinsey recommends six steps to build this competitive sales and marketing advantage.

The printing industry is undergoing a variety of transformations, and the six steps that McKinsey outlines are a great way to start the journey toward change within your own organization. Making a commitment to change involves developing a strategic vision, building a team that is committed to following through, identifying some quick wins, activating the organization, coaching, and measuring/monitoring performance. Printers of all sizes are attempting to migrate from commodity providers to service businesses. Where are you on your journey, and are you taking the right steps to ensure a successful change?


Continue reading your article
with a WhatTheyThink membership.

WhatTheyThink Annual Membership

Less than $4/week.

Get unlimited access to in-depth commentary and analysis covering the latest trends, emerging technologies, operational strategies, and key events across every segment of today's printing industry.

Stay informed. Stay competitive. Stay ahead.
WhatTheyThink Day Pass

$5 for 24 hours

Unlimited access to all of WhatTheyThink. Get your Day Pass

Already a member?
Sign In

About Barb Pellow

A digital printing and publishing pioneer, marketing expert and Group Director at InfoTrends, Barbara Pellow helps companies develop multi-media strategies that ride the information wave. Barb brings the knowledge and skills to help companies expand and grow business opportunity.

Please offer your feedback to Barb. She can be reached at [email protected].

Recent Articles from Barb Pellow

It’s an Omni-Channel World… Especially During the Holidays!

This holiday season, savvy retailers are working to meet customers on the channels where they are shopping and buying, whether it’s in a physical store, online, or via social media. This article highlights how various retailers are driving sales and encouraging engagement with multi-channel integrated campaigns. Read More

Differentiating Your Business with Wide Format

Wide format printing is a profitable and complementary product offering for print service providers that are seeking new markets and higher-margin businesses. This article discusses the three key practices for success in this market. Read More

It’s Time to Take the 15 Page a Day Challenge… and Share it with Friends!

This past July, the Paper and Packaging Board launched its 15 Pages a Day Challenge, which encourages everyone to commit to reading 15 pages each day. This article cites recent research to highlight the benefits of reading on paper and also provides information on the challenge. Read More

Industry 4.0 Will be Everywhere at Print 2017

Many historians agree that there have been three industrial revolutions to date, but interconnected digital technology might be triggering the fourth. Print 2017 is nearly upon us, and the concept of “Industry 4.0” will likely be a major theme at the event. This article discusses some of the Print 2017 advancements that are expected to change how print is manufactured, what service providers produce, and who print service providers will become as they transform their businesses to better align with digital technologies. Read More

Pricing Strategy: Labor Theory of Value versus Value-based Pricing

Companies within in the printing industry have historically had a manufacturing mentality—they subscribe to the labor theory of value, which states that the value of a service is determined by the amount of labor that goes into production. Now, thousands of firms in a variety of industries are pricing their services according to the external value created—as perceived and determined by the client—rather than the internal costs incurred in generating services. This article explores the concept of value-based pricing and highlights some real-world examples of companies that are embracing this strategy. Read More