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“The New Business of Printing is all about capturing

fast-rising revenue streams and

increasing volume.

It is driven by a new breed of business

leaders and communications

professionals, who are using

new tools to make more

money.”

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Agenda Culture and Operating strategy ABB Mission and Vision ABB The 21th century: Knowledge sharing Market trends Critical Success factors of the systems and the workflow Current workflow Outsourced Documents The Xerox Solution Proposed workflow Benefits Financials Financial payback Next steps

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ABB Inc

Culture technology leadership, the pioneering spirit and the ability to be at home everywhere. Responsibility, respect, determination Corporate governance

Strategy striving for organic profitable growth. ensuring consistent top-quality products and systems – made in ABB – for customers around the world. delivering ABB’s customers broad and easy access to ABB’s offerings (client intimacy; internet).

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ABB Inc

Mission 2007: As one of the world’s leading engineering companies, ABB helps customers to use electrical power effectively and to increase industrial productivity in a sustainable way.

Vision 2007: ABB delivers attractive profitable growth by providing leading power and automation technologies to customers throughout the world. ABB helps them to improve their performance and productivity as well as to save energy and lower environmental impact.

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21th Century Knowledge sharing

Competition

Distinction

“Helping people find better ways to do great work”

Challenges for more profit and reduce costs.

Innovation, efficiency and success

Client IntimacyClient Intimacy

Operational ExcellenceOperational Excellence

Product LeadershipProduct LeadershipImprovement and

Innovation of products and services

GlobalisationGlobalisationDistance, more languages and cultures

Internet changes buyers attitude

The best processes and cost effectiveness

Return on Assets- financial performance

- less stock

Market Share- new clients

- more revenue per client

- accountmanagement

Client Satisfaction

Market trends …

14%

Source: CAPV

Print on DemandPrint on Demand

In 2006

Jearly growth in POD compared to the total market

JobsJobs

Source: Strategies for Management Commercial Print 2010

78%

Today

Of 4-colour jobs are less than 5,000

Variable contentVariable content

In 2007

60%

Source: Interquest

Of all digital colour jobs are

personalised and personified

DeliveryDelivery

Source: Frank Romano, RIT

In 2007

33%Of all jobs have a

delivery time of less than 24 hours

Vision in Digital Printing

Digital printing is complementary to offset Digital Production is not only printing

Workflow is Key

For each

$ 1 spent on one print…

Process Data

Design Compose RIP Finish Fulfill Distribute TrackResponse

Repository Print

$ 6 is spent on content and fulfillment!

Source: Rochester Institute of Technology

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Critical Success Factors ABB Calgary Printing on Demand Deadlines for proposals with high revenue impact Last minute finishing/changes Production printing path Make ready capability, scanning, imposing and merging documents Managing the process Services on the web Return on assets; financial performance, offset stock and printing on demand Market Share; new clients and revenue per client Customer satisfaction; excellent colour quality of the documents Product technological leadership; products and services; clean sheet design

and future technology Operational Excellence; processes and costs Globalization; distance to Switzerland, Benelux, Montreal and USA, different

cultures and languages

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Current workflow470 ST

470 ST

DC 3535

ABB employees

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Outsourced documents

ABB Review (offset printed in Austria, Europe)

ABB Group Sustainability Report (offset printed in Zurich, Europe)

ABB SupportLine (off set printed in USA)

Serving the Global LNG Industry (offset printed in Oslo, Europe)

Parts and Repair Lifecycle Services (offset printed in USA)

ABB University Training Services (offset printed in USA)

ABB Manuals (offset printed in USA)

ABB main Catalogue (offset printed in Canada)

ABB Annual report (offset printed in Zurich, Europe)

The Xerox Solution

The right business model

The right technology

The right workflow

The Right Business Model

Justification

ExecutiveWorkflow Analysis

Productivity Technology

Marjan Kwint/Perry Bank

Implementation

XGS Service Development

XGS Management Services1:1 advice in

FreeFlowTraining in new

Technology and Graphic Design

Growth

OperationsBusiness

DevelopmentXGS: Global ServicesMarketing Applications

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Proposed workflow

ABB Calgary

Xerox Global Services

Printing on Demand site

FreeFlow Web Services

ABB Ontario ABB British ColumbiaABB CalgaryABB Customers

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The Right Technology

XMPie® is a leader in solutions for cross-media dynamic publishing. The XMPie PersonalEffect™ software platform enables enterprises and their marketing service providers to develop and execute highly customized, information-driven, campaigns for print, email, Web on Demand, and wireless media. PersonalEffect’s three integrated applications—uPlan™, uCreate™, and uProduce™— flow together in an elegant workflow process. With PersonalEffect you can effortlessly blend creative concepts with database information to create full-color, fully personalized direct and interactive marketing campaigns and Web to print applications—much faster, at a lower cost, and with the utmost flexibility in creative design, data connectivity, and media selection.

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Benefits for ABB Canada Improvement of Technology & Workflow will increase both client and employee satisfaction

Improvement of Product leadership with Web Services

Improvement of Operational Excellence by:

using the best processes (technology, workflow and centralization of high volume colour)

reducing time required to generate colour and black & white reports for customers from 2 days 2 days to only 10 minutes – a 95% reduction

improving the production printing path

churning from off set to Digital in house On Demand Printing

less stock

no offset from Switzerland or USA; National (Canada) centralized digital printing on demand=

COST SAVINGS

Improve both Return on Assets and Market Share by:

limiting capital expenditures & improving the operating efficiency of those assets already in place

(Managed Services XGS)

decreasing manual operations with 95% driving operational and manual costs to new industry

levels.

Financials

Cost Group Costs (Estimated) per year

People $ 120,000.00

Process $ 50,000.00

Technology $ 50,460.00

Total $220,460.00

Technology Group Costs (Estimated) per year

470 ST $ 19,548.00

470 ST $ 19,548.00

Docucolor 3535 $ 13,064.00

Total $ 50,460.00

Future Costs: $ 127,845.00

The Xerox Solution

                                     

                          

                                     

                          

                                     

                          

                                     

                          

The right business model

The right technology

The right workflow

Next steps

                                     

                          

                                     

                          

                                     

                          

                                     

                          

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Examples of the New Business of Printing:

One to One Marketing

Plus 44%

Plus 45%

Plus135%

Plus500%

Bron: Romano & Broudy

ABB: Response To Mailings

3 4

1 25

Example Mail piece 5000 B/W

Development $ 3000 Printing

700 Paper

1000 Enveloppe

500 Fullfilment

1900 Porto

3900 Total

11000 Per mail piece

2,20 Response 2.5%

125

Price/response $ 88

Mail piece new

$ 6000 3500

100050019003900

Total 16800 Per mail piece 3,36 Response 12,5% 625

Price/response $ 26,88

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Financial Payback for ABB 1:1 Marketing Monthly Pay Back, For example: 300,000 prints per month for mail pieces (golf tournaments, skate events, automation world, marketing campaigns, etc) 300,000/5,000 = 60 60 x $ 61.12 = $ 3,667 more revenue per month* $ 44,006.00 revenue growth per year $ 66,006.00 revenue growth in 18 months

* $61.12 = $88 per mail piece - $ 26.88 per mail piece

Thank you !