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This morning I was in a cab in Las Vegas. The cab driver explained to me how he differentiates himself from his competition. He explained why he is not a "cab driver", but rather a "relocation engineer". The explaination was less amusing than the branding.
In Repro 2.0 reprographers utilize the "enterprise". In Repro 1.0 every location basically runs as its own separate company. It has sales, production, accounting and enough production equipment to satisfy their customers (including backup equipment). This is the traditional model and it made sense in the past. Each location was self sufficient. It had everything necessary to satisfy their customers. This model is also easy to manage. Each location is held accountable for revenue and profits. In the past there was little reason for locations to work together. It was too difficult to share work and coordinate resources.
In the digitally connected world of Repro 2.0 this traditional model is inefficient. Locations can share work to better satisfy their customers. Every location does not need to be self sufficient. Every location does not need backup equipment. Locations can share resources. They can share work. In Repro 2.0 some business functions should be distributed to the branch locations and some business functions should be centralized. Once this model is implemented it becomes easier to open new locations to better service customers.
Repro 2.0 companies look at their whole company as a single unit - the enterprise - versus lots of independent locations. This migration will take rethinking the business model. Operations will need to change, but also measurement systems.
Curtis Thornton mentions in his blog post a trend he has found talking to successful entrepreneurs. He mentions hardship, revelation and then a windfall. Seth Godin has a new book called The Dip,that describes something very similar. It is the drive to persevere and make things happen through the tough times (or "the dip") that defines a company. Many companies don't make it through the dip, and as Curtis points out it takes more than a determined business owner. It takes a team and a network of relationships.
What are the differences between Repro 1.0 and Repro 2.0?
Repro 1.0 |
Repro 2.0 |
Printing and copying is primary source of profitability. |
Printing and copying is a sizable component of profits, but shrinking versus growing. |
Digital services are given away to get the printing. |
Digital services are a primary source of profit and revenue growth. |
Each location runs like its own company. |
Each location is part of a larger enterprise |
Mid-volume printers are placed at customers sites to capture lost revenue from production printing. |
Onsite equipment and employees are connected to the enterprise (extraprise )and create new value added services |
Reprographers are seen as a necessary evil. |
Reprographers are seen as an important supplier in the construction supply chain. |
Reprographers compare themselves to other reprographers based on what equipment they own. |
Reprographers compare themselves to other reprographers based on their ability to set and meet customer expectations and deliver unique services. |
Business model revolves around atoms. |
Business model revolves around bits. |
