............
........... ......
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...................
Executive White Paper
Pan-Regional Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How to redirect savings from outsourced pan-regional collateral operations to
additional media placements and campaigns within existing operational budgets
Business case for the full-service pan-regional collateral factory
• Simple pay-for-page localization
• Managed operations and systematized best practices
• Instant automated collateral-artwork production and retailer modifications
• Online workflow and approval platform
• Online progress monitoring, reporting, and process quality controls.
• Real-time workflow data interfaces to enterprise IT systems.
STRATEGIC
SPENDINGS
STRATEGIC
SPENDINGS
STRATEGIC
SPENDINGS
FREED FTEs
FOR NEW
PROJECTS
PRODUCTIVITY
DIVIDEND
INCREMENTAL
STRATEGIC
SPENDINGS
Current Spend
Greater Operational Efficiencies
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ProductivityDividend.1.5 ©2008 GISTICS, All rights reserved.
OPERATIONAL
SPENDINGS
OPERATIONAL
SPENDINGS
OPERATIONAL
SPENDINGS
Future Spend
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Who helped produce this white paper? Who is GISTICS?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
AUTHOR
THINK TANK FOR EARLY-STAGE MARKETS
Michael Moon
GISTICS constitutes a think tank that speeds the
adoption of new technology and disruptive innovations
among enterprises and consumers. Founded in 1987,
GISTICS Incorporated minimizes the risk of potential
buyers through the following:
• Interviews with successful early adopters of new
technologies
• Definition of the critical success patterns of
successful early adopters
• Activity-based analyses of adoption benefits on
supply chains, workflows, and user activities
• Visual explanations of how new technologies
produce economic value
• Investment analyses that justify the purchase of
new technical systems
• Project roadmaps that break down large-scale
organizational changes into smaller two-week to
two-month projects
• Practitioner portals that clarify the next steps in
rapid deployment and payback
• Certified consultants that provide essential skills
and resources
President, CEO
GISTICS Incorporated
moon@gistics.com
Charles caldwell
President, CEO
NextQuarter
chas@nextquarter.com
DESIGN, LAYOUT,
EDITING, PRODUCTION
LIANNE MUELLER
Art Director
Fly Design Media
lianne@flydesignmedia.com
iris alroy
Production Artist
GISTICS Incorporated
research@gistics.com
Kathleen McFadden
kmcfadden@writetools.com
Steve Turner
Turner Associates
steve@turnersf.com
GISTICS drives the emergence of shared vocabularies,
the adoption of effective problem-determination methods,
and the development of unassailable investment analyses
that justify purchases of new technologies or disruptive
innovations.
GISTICS attracts early adopters and pace setting
solutioneers, demonstrating how they can use new
technologies or disruptive innovations to make money by
delivering new complex, integrated solutions to enterprise
or consumer clients.
GISTICS develops breakthrough market-making
strategies for vendors of new technologies or disruptive
innovations, using industry thought leadership, executive
white papers, Webcasts, specialized Web sites, and a
global trust network of advanced project managers within
large enterprises, independent consultants, and small
master-class solution providers.
G i s t ic s h e l p s e n d - u s e f i r m s h a r n e s s n e w t e c h n o l o gi e s a n d
di s r u p t iv e i n n o va t i o n s
MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models
GISTICS Incorporated
4171 Piedmont Avenue, Suite 210
Oakland CA 94611 USA
www.gistics.com
+1.510.450.9999 tel
+1.510.450.0954 fax
©2008 GISTICS Incorporated. All rights
reserved. Printed in the U.S.A.
GISTICS and its agents have used their
best efforts in collecting and preparing information published in this white
paper Pan-Regional Marketing Productivity
Dividends from Outsourced Collateral
Operations.
GISTICS does not assume, and hereby disclaims, any liability for any loss or damage caused by errors and omissions in
this white paper, whether such errors or
such omissions resulted from negligence,
accident, or other causes.
V a l u e - C r e a t i o n
Offer—market
development
T1
GISTICS
Sales
conversion
Satisfaction
fulfillment
Primary Market
C o l l a b o r a t i v e
T2
P r o c e s s
Strategic
development
Aftermarket
Market-making scenario 1
Market-making scenario 2
S o l u t i o n e e r i n g
Cycle time gain
Necessary Conditions
Strategic Value
• Rationalized market and definitive
business case
• Differentiated value propositions
• Completed satisfaction-fulfillment
methodologies
• Testimonials of early adopters
• Network of certified consulting
solutioneers
• Thought-leadership Web destination
• Leadership positioning in the market
• Advantaged category definitions
• Growing perception as the dominant
“gorilla”
• New “green field” markets and
revenue streams
• Loyalty lock-ins of category-defining
marquee accounts
MarketMakingScenarios.A.1.4 © 2007 GISTICS All rights reserved.
GISTICS reduces the organizational and market barriers to the adoption of new technologies or disruptive innovations,
publishing a variety of papers, presentations, and Web sites that explain how to realize the economic and social value of new
technologies or disruptive innovations in a variety of organizations.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................
2
Demand
creation
Concept Market
Market-making Scenarios
gist \’jist\ n -s [AF, it lies (said of
a legal action), fr. MF, 3d pers.
sing. pres. indic. of gesir to lie, fr.
L jacére to lie, fr. jacere to throw
— more at jet (to spout)] 1: the
ground or foundation of a legal
action without which it would not
be sustainable 2: the main point
or material part (as of a question
or debate) : the pith of a matter :
essence (the ~ of a question) <the
~ of all that can be said upon the
matter—R. L. Stevenson>
—Webster’s Third New International Dictionary Unabridged
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How to redirect savings from outsourced pan-regional collateral operations to
additional media placements and campaigns within existing operational budgets
PAGE
3
7
13
21
27
37 47
CONTENTS//SECTIONS
Executive Summary
Business Case Summary
Marcom Supply Chains
Center of Excellence for Pan-Regional Collateral Operations
Payback Scenarios for outsourcing with Collateral Operations
Activity-Automation Cells
About GISTICS
ABSTRACT
Pan-regional collateral operations unlock the full potential of bringing attractive
value propositions to market:
• Speeding the localization and production of print-ready advertisements and
marcom collateral by three to five weeks
• Reducing the total cost of one localized page of collateral by 70 percent
• Reducing the total print cost of one localized page by 30 percent
• Freeing 35 percent of collateral production budgets for reinvestment in more
media, online promotions, or direct mail
• Enabling four to seven marcom staffers to perform higher added-value work
These reductions of time to market and costs entail the following capabilities:
• Centralized localization of copy and graphic images
• Automated production of finished print-ready ads and collateral
• Strategic sourcing of print production through print management firms
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How do we summarize the business case for outsourcing
international marketing communications to a center of excellence?
EXECUTION THAT DRIVES SUCCESS REQUIRES AUTOMATION
OF MARCOM PROCESSES
This paper advances the proposition that effective marketing
brings an attractive value proposition to those customers
most likely and able to buy.
However attractive a value proposition, it will fail to
produce results without effective market coverage — the
function of marketing communications or marcom.
Effective market coverage entails the synchronized
and rapid execution across multiple markets, multiple
communication channels (print, online, broadcast), and
multiple marcom formats (brochures, direct mail, trade
promotions, point-of-purchase materials, and multimedia
content for the Web and mobile devices).
Research conducted by GISTICS of global marcom
processes and workflows reveals a critical factor
undermining effective market coverage: redundant, manual
procedures and duplications associated with the time- and
cost-intensive production and sourcing of collateral across
global markets, multiple channels, and various collateral
formats.
This paper examines automation strategies for
maximizing the productivity of collateral operations and in
particular how to achieve these aims:
• Reduce time-to-market for revenue-producing collateral
• Maintain consistent brand-marketing messages
• Increase the number of effective selling days
• Reduce overall labor content, redundancies, and costs of
marketing communications.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
TH I S P A P ER C L A R I F I ES THE OUTSOUR C I N G OF P A N - RE G I ON A L C OLL A TER A L
LOINNOVATION
C A L I Z A T I ON
A NProducts
D P RO Dor
U CServices,
T I ON Enhanced Customer Value, Process Optimization
: New
MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models
Offer—market
development
vendor
Demand
creation
Sales
conversion
Satisfaction
fulfillment
external market
Strategic
development
customer
V a l u e - C r e a t i o n
vendor
P r o c e s s
T1 10-week Time to market scenario
Time to Value Scenarios
T2 2-week Time to market scenario
8-week Cycle time savings
Higher productivity
Strategic value
• Higher productivity of staff
and trade partners
• Fewer steps in end-to-end processes
• Elimination of redundant activity
• Greater transparency leading to
insight and improvement
• New markets and revenue streams
• Greater competitiveness and market
shares
• Increased market coverage
and faster time-to-market
• Variable and fixed-cost reductions–
source of productivity delivered
Productivity drivers
• Simplified architecture for global
brand-voice
• Central repository of marcom
assets and design masters
• Standardized localization procedures,
systems, and tools
• Database of translated terms
Productivity
Dividend:
12.4%
OF CURRENT
MARCOM BUDGET
NOW AVAILABLE
FOR MORE
STRATEGIC USES
• Automated XML publishing
processes
• Automated page-assembly and
on-demand customization
• Online review, approvals, and
color-matched proofs
• Real-time dashboards
TimeToValue.D.1.7 ©2008 GISTICS All rights reserved.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
4
GISTICS
Senior management of
global brand-marketing
organizations will find this
paper useful in assessing
the merits of outsourcing
production and localization
of collateral to centers of
excellence in pan-regional
collateral operations..
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
How do we calculate productivity dividends, demonstrating how
greater operational efficiency translates into higher sales?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ECONOMIC EFFECT OF FASTER CYCLE TIME
SHORTER PRODUCT LIFE CYCLES CAN LIMIT PROFITS
Most firms drive innovation to market, offering new
products, formulations, and packaging, or new services,
enhancements, or configurations. In all but a few cases,
these firms drive marketing communications to market by
• Publishing printed ads, marketing collateral, and
promotional materials
• Broadcasting electronic ad spots and infomercials
• Provisioning digital content and interactive engagement
services to stationary PCs, mobile devices, and digital
kiosks or point-of-purchase displays.
As once noted by Peter Drucker, the expert on
management and business, “Only two things add value:
innovation and marketing. All else is cost.”
This rather pithy and sage remark calls attention to what
aspects of innovation and marketing create value, as well as
how firms can use automation to maximize those aspects
that deliver the greatest value.
Simply put, most firms that sell products can maximize
their profits by achieving two, , often offsetting, goals:
• Sell goods or services with adequate, if not superior,
profit margins, and
• Sell higher unit volumes of these goods or services
Profit margins reflect selling the right mix of products
or services at prices that buyers will pay. Seasonal factors,
the comparative value of one firm’s offering to another’s
offering, and other factors will affect price sensitivity—what
customers will pay.
Another dimension of cycle time economics relates
to velocity or how much annual revenue a firm can earn
for each dollar or euro it has invested in its assets and
operations—factories and people, respectively.
Combined, margin and velocity become the most
important measurement to a firm—return on investment—
how we measure the effectiveness of automation and best
practices.
d e l ay e d p r o d u c t l a u n c h e s
The pace of innovation continues to accelerate across all
technical realms, giving large and small firms worldwide a
real opportunity to develop new breakthrough products or
services and drive them to market. This quite simply means
that competition will continue to expand and intensify
without a foreseeable end in sight.
The figure below depicts how faster time to market of
new products or services can produce incremental profit and
revenues, as well as reduce total development costs with the
desirable result of capturing lost margin or profits.
For more about how firms can use automation to speed
up their innovation processes, GISTICS offers the white
paper entitled, the Impact of Enterprise Collaboration on
Productivity of Intangible Assets. To find the white paper,
just “Google” the title.
The figure below also depicts how faster time to market
of marketing communications helps maximize the value of
bringing new products or services to potential customers.
CYCLE TIME ACCELERATION FOR PAN-REGIONAL MARCOM
Delays in getting to market reduce the effectiveness of
otherwise attractive goods and services, representing the loss
of days or weeks of product sales life cycles—unrecoverable
in competitive markets—and therefore representing lost
revenues and margin.
Our research shows no greater loss than in delayed time
to pan-regional markets.
This paper identifies a primary source of these losses:
distributed in-country localization of marketing collateral
and ads, combined with low or nonexistent levels of reuse of
digital brand and marcom assets.
In significant part, the inefficiencies lead to excessive
levels of project coordination (wasted staff time), extra cost
(vendor charges), brand inconsistencies, and less net funds
spent on strategic things such as media placements, fuller
coverage of a market, ad words, etc.
steal revenues and profits
$600,000
Delayed product launches incur
additional development costs as
well as missed revenues and lost
profit.
Lost Margin from Delayed Launch
$300,000
$0
Additional Development Cost from Delay
($100,000)
0
6
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
Realized Margin
Incremental Revenues
from Faster
Launches
12
18
MONTHS
24
CycleTimePaysOff.1.8 ©2008 GISTICS Incorporated, All rights reserved.
EXPENSE AND MARGIN
Incremental Profit from Faster Time-to-Market
30
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
5
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How an outsourced pan-regional collateral operation
deliver productivity dividends?
motto declared: “Infrastructure: Got to have it. Build it. The
revenues will come.” However, many firms built it, and the
revenues did not come, or least, not as expected or needed to
recoup the basic investments.
COMPLEXITY TAX OF THE INTERNET
Strategy constitutes a mechanism for marshalling or
directing available resources to achieve maximum
competitive strategy.
While simple in concept, effective strategy requires a
systems-based, holistic view of a marketing operation,
the objectives the marketing team commits to achieve,
and trade-offs between available resources and ways of
harnessing these resources.
However, the Internet compounds this formulation in
several ways, adding dazzling new resources that often come
with a heavy “complexity tax”—a requirement to develop
new ways of thinking about strategy, managing an operation,
and engaging customers.
Internet complexity taxes come due for payment in these
new resources:
• Corporate Web content management systems and
customer-facing content and Web services
• Product or consumer engagement Web sites, content
management systems, and content development
• Search engine marketing, content optimization, and
faceted taxonomy-driven searches on corporate and
product web sites
• Sponsored content and social networks, including viral
videos, Webcasts, blogs, forums, etc.
• Interactive services of a multimedia call center or help
desk
• Marketing services portals that integrate content and,
increasingly, information of production systems through a
marketing supply chain
A close examination of the public financial reports of
major brand-marketing firms indicates that the total expense
for customer-facing and operational marketing systems,
processes, and staffing remains the fastest growing category
of corporate budgets. Yet much of this expense remains
opaque, hidden, and largely unquantified.
GISTICS’ research reveals that productivity gains (the
ability to get more work done with the same number or
fewer personnel) and cost-cutting measures (such as more
uniform procurement processes and vendor consolidations)
have paid much of the Internet complexity tax. The de facto
OPERATIONAL AND STRATEGIC SPENDINGS
The figure below depicts one of the strategic initiatives
of most chief marketing officers, framing these essential
questions:
• What comprises the low added-value work of our
marketing operations?
• Where do our staff or partners expend a lot of time getting
higher added-value work done?
• What activities in higher added-value work of marketing
suffer from high defect rates (requiring rework and added
cost)?
• What systems, processes, and accountabilities can
deliver continuous, ongoing reductions of time, cost, and
complexity within our marketing operations?
• What activities and tasks can we outsource to partners
better suited and equipped to deliver on time and within
budget?
The figure below suggests that a better, more efficient
way to localize marcom materials and produce finished
print-ready advertisements and collaterals can achieve
significant levels of cost avoidance—what we call a
productivity dividend.
Later in this paper we analyze typical productivity
dividends for outsourcing localization to a pan-regional
collateral operation.
This analysis identifies the number of full-time
equivalents (FTEs) or staff that the productivity dividend
makes available for new projects.
This analysis also identifies how many already-budgeted
funds the productivity dividend frees up for more strategic
spendings.
In summary, this paper makes the case that outsourcing
the localization and production of ads and marcom materials
to a collateral operation not only produces a productivity
dividend with FTEs and new monies, but outsourcing also
reduces the complexity tax through a global marketing
operation.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
G RE A TER O P ER A T I ON A L EFF I C I EN C Y C RE A TES NEW MONEY FOR STR A TE G I C S P EN D I N G S
STRATEGIC
SPENDINGS
STRATEGIC
SPENDINGS
FREED FTEs
FOR NEW
PROJECTS
PRODUCTIVITY
DIVIDEND
INCREMENTAL
STRATEGIC
SPENDINGS
Current Spend
Greater Operational Efficiencies
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
6
GISTICS
ProductivityDividend.1.5 ©2008 GISTICS, All rights reserved.
STRATEGIC
SPENDINGS
OPERATIONAL
SPENDINGS
OPERATIONAL
SPENDINGS
OPERATIONAL
SPENDINGS
Future Spend
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
...................
12
11
10
9
What process maturities maximize the competitive advantage of a global marketing operation?
What slows cycle times and increases cost in localizing printed
collateral for pan-regional markets?
What summarizes the progressive productivity dividend across the process maturities of a pan-regional collateral operation
What financial analysis justifies the business decision to outsource localization to a pan-regional collateral operation?
What capabilities comprise each stage of a process-maturity model for pan-regional collateral operations?
8
ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION:
PAGE
7
GISTICS
series//Management Advisory
B us ines s C as e S um m ar y
SECTION II
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Pan-Regional Marketing
Productivity Dividends from
Outsourced
Collateral Operations
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
...................
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What process maturities maximize the competitive
advantage of a global marketing operation?
PROGRESSIVE LEVELS OF PROCESS AUTOMATION
Most executives know from experience that the right
combination of process automation and operational
excellence can produce stunning results: dramatic reduction
in costs, improvement in business agility (or the ability to
exploit short-lived opportunities), etc.
Research performed by GISTICS spanning 20 years
reveals that the concept of process-maturity levels
summarizes the right combinations of process automation
and operational excellence.
The figure below depicts six levels of process maturity
for pan-regional marketing communications and the
localization of printed ads and collateral.
OPTIMIZATION IS A JOURNEY, NOT A DESTINATION
marcom supply chain, adding global transparency and status
reporting for all active projects.
Strategic Sourcing of Creative, Marketing Content, and
Production produces a sizeable productivity dividend—new
money to spend on more media, fuller market coverage,
more ad words, specialized promotions, higher levels of
personalized interaction or engagement with buyers, etc.
Strategic sourcing entails the systematic reduction of
inefficiency, operational costs, and cycle time delay and the
reinvestment of those savings—productivity dividends—in
more strategic areas.
In no small part, greater levels of competitive bidding
among all suppliers to the marketing supply chain—
achieving lower costs on smaller aspects of a campaign,
promotional items, collateral pieces, or constituent
elements such as photography or translation—produce this
productivity dividend.
Concurrent Global or Pan-Regional Marketing across all
media and collateral formats moves a marketing operation
even closer to maximum competitive advantage. Here
efficiencies enable a firm to coordinate and synchronize all
of the marketing efforts and marcom assets, producing an
“echo effect” in key markets.
This echo effect results from broadcast, print, online,
out-of-home/billboards, and in-store merchandising to
surround and envelop targeted customers. This not only
cuts through the noise and clutter of a market, but the echo
effect also ensures that consumers notice an attractive value
proposition and engage the vendor or provider in some form
of instant, online interaction: on-demand customerization of
promotional offers.
m a t u r i t y y i e l d s h ig h e r p r o d u c t ivi t y divid e n d s
GREATER
EM
EN
TA
MAXIMUM
COMPETITIVE
ADVANTAGE
L
ST
AB
OR
AT
NG
LL
DI
CO
EN
W
SP
LI
N
L
C
A
CO
O
GI
Q
U
TY
TR
TE
IO
N
RA
CONSISTENCY
CR
LESSER
IN
Fast, low-defect expression of brand-voice and differentiated offerings
A successful firm, by the very nature of its success, does
several, if not many, things right. However, rapid change or
growth can induce otherwise successful firms to stumble;
these firms must grow, adapt, and stabilize new levels of
performance and operational excellence.
Research of global or large regional marketing operations
conducted by GISTICS indicates that most of these
operations have thousands to tens of thousands digital files:
editable and reusable marcom assets and fixed final-form
content.
Many but not yet most of these firms have achieved the
first process maturity of marketing operations: a Global
Marcom Asset Repository—a well-organized collection of
marcom assets and content that authorized users can access
by Web browsers.
Fewer firms have achieved the
g r e at p r o c e s s
second process maturity of Centralized
Collateral Production. This capability
entails new investment in a basic
collateral factory with dedicated
project teams, systematized
procedures, sophisticated XML copytext repositories, specialized ingest
engines that transform collateral
design masters into XML style sheets
and automate publishing templates.
Sourcing Alignment of Creative
Partners entails changing how global
or pan-regional marketing operations
buy creative work products, using
a growing network of lower cost,
higher quality creative teams and
boutique firms. The combination of
a Global Marcom Asset Repository
and Centralized Collateral Production
enables a marketing operation
to maintain brand consistency,
provisioning templates, images,
and design standards to individual
creatives, teams, or firms.
Asset
Asset
Federated Localization Processes
Consolidation Consolidation
(DAM only)
with Manual Centralized
expands the operational capabilities
Localization
and Production
of the collateral factory and
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
O
F
RK
LO
PR
O
W
S
CE
U
S A
M
TO
AT
ION
0 1 2 3 4 5 6
LESSER
Centralized
Collateral
Production
and Localization
Sourcing
Alignment
of Creative
Partners
Federalized
Localization
Workflows and
Processes
Strategic
Sourcing
Creative Content
and Production
Concurrent
Global
Marketing
ProductivityDividend.C.1.5 ©2008 GISTICS Incorporated, All rights reserved.
EFFECTIVENESS
GREATER
Crisp, timely, and relevent localized messages and imagery
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
8
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What slows cycle times and increases cost in localizing
printed collateral for pan-regional markets?
Finally, many localized adaptations of promotional
materials will publish the names, contact information, and
location of retail outlets of partners—who open new stores
or relocate existing ones throughout the year.
In summary, the figure to the right depicts a largely
manual, nonautomated process that takes four to six weeks
per design master. Research by GISTICS reveals that a
major new product launch for EMEA markets will produce
6 to 10 pieces of collateral for each of the 20 to 40 markets
serviced. This typically results in one or two delayed pieces
per launch market; retailers often wait until they have a
complete set before fully promoting the new product.
The delay of one or two pieces will hold everything up,
stealing effective product-sale days of a limited product
lifecycle of 240 days or so. As shown elsewhere in this
paper, a mere 25-day gain in time to market represents $8.3
million in incremental revenue.
MANUAL, OFFLINE WORKFLOWS
Pan-regional marketing communications consists of several
thousand discrete projects per year.
An in-depth examination of a typical project, from its
specification in strategy to its production and delivery to
points of sale and consumption, reveals several workflows,
involving tens to hundreds of individuals across a panregional marketing operation.
The figure to the right depicts three key workflows of
pan-regional marketing operations and related marcom
groups.
Creative workflows entail the work of a marketing team
at a headquarters and of global creative partners, producing
master campaigns and brand identities. If the offered
products include packaging and retail point of purchase
merchandising, creative workflow will include two or more
creative partners or teams. Creative workflow nonetheless
will produce a design master and copy text; usually
delivered as an Adobe InDesign or QuarkXpress
file with companion illustrations, images, and
P L A NN I N G A N D S C HE D UL I N G C OLL A B OR A T I ON
fonts to a regional marketing operation, such as
one focused on Europe, the Mideast, or Africa
d I nsigh t s
C reat ive Deve
y an
lop m
teg
1
(EMEA).
en
3
tr a
t
Localization workflows start with a regional
marketing group that provides adaptation
EMEA
Creative
Marketing
insights and a localization brief—instructions
Operations
Workflow
and guidelines for each regional localization
team—5 to 15 teams for EMEA. Translations
4 C
2
of each language often require translation
Collab
nt
r ea tive E uti on
o r a ti ve R e f i ne m e
xec
treatments—two or three ways of interpreting
5
English text into a local language.
Design Master (DM) and Copy
Adaptation workflows often start with the
delivery of finalized translations to a local
Ins i gh t s
Translation Tre
tion
at m
pta
6
ent
8
da
A
s
marketing office that coordinates with a local
creative partner to rework the English-language
design master for local market and production
Localization
EMEA
Marketing
requirements for 20 to 40 markets.
Workflow
Operations
Adaptation workflows produce certified
production-ready output, usually Acrobat
9 Fina liz ed at io n
7
PDF files that a print specialist has processed,
Loc al izat i on Brie f
Transl
quality checked, and certified for the technical
10
production requirements of a specific print and
Localized Text
printing press.
hts
n Ins i g
Adaptation Trea
atio
The number of these technical requirements
tme
apt
11
nt s
13
Ad
for display ads and printed collateral exceed
40,000 for EMEA alone, and change whenever a
printer updates or replaces a printing press.
Local
Adaptation
Marketing
The certified production-ready output
Office
Workflow
addresses the added complexities of different
page designs.
14 Fi
12
na liz ed
Loc al izat i on Brie f
Ada pta ti on
Some page designs incorporate advanced
graphic designs, such as spot varnishes, diecuts, six-color processes, and close alignment or
registration of vector and rasterized artwork.
15
Other page designs use product information
Certified Production-ready Output
tables, commonly used in catalogs and in direct
response promotions, that may also display
DESIGN MASTER DESIGN MASTER DESIGN MASTER DESIGN MASTER
technical data and prices in a local market
Complex
Simple
Catalog
Technical
currency—any of which may change at the last
Design
Design
Table
Data
minute.
Pages
Pages
Placement
Pages
1
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
2
3
4
Global
Creative
Partners
Local
Creative
Partners
]
5-1
5T
ea
ms
Regional
Localization
Teams
]
20
-40
Off
ice
s
4 to 6 weeks
S
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
DESIGN MASTER
Local
Partner
Pages
5
LocalizationWorkflows.A.1.5 ©2008 GISTICS Incorporated, All rights reserved.
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
9
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What summarizes the progressive productivity dividend
across the process maturities of a pan-regional collateral operation?
Time-to-market days gained represents total potential
acceleration of marcom workflows and processes. However,
A process-maturity level constitutes a stabilized operational
in practice, most firms “reinvest” 30 to 50 percent of the
capability of a center excellence such as a pan-regional
days gained in achieving greater refinement or optimization
collateral operation.
of individual marcom projects, greater levels of integration
The figure and table below depict the typical savings
with other marcom activities, and fewer late-night hours
accrued by level of process maturity of a pan-regional
and weekends.
collateral operation. These figures represent the new savings
Total number of staff days saved aggregates hundreds to
realized by each level and do not include savings from
thousands of 5- to 20-minute slices of each worker’s day.
previous levels.
Days available for new projects summarizes these - 5Estimated cost avoidance represents a total potential
to 20-minute slices of time across an entire marketing
savings, including hard-cost savings in the form of lower
operation.
direct expenses and soft-cost savings in the form of
Total number of staff full-time equivalents (FTEs) saved
unburdening employees and independent contract workers.
represents a realistic summary of operational efficiency
Productivity dividend represents the amount of money—
gains. However, to realize this gain, managers must
hard-cost savings—that a firm can reallocate to other
reallocate and reprioritize the work assignments of their
spendings. For this reason, we call the productivity dividend staff and contractors.
new money, calling attention to the opportunity to buy
FTEs available for new projects represents the realistic
more media or creative within a preexisting budget.
outcome of such a reallocation of work among staff and
contractors.
FUN D S A V A I L A B LE FROM G RE A TER P RO D U C T I V I TY I N C RE A SE STR A TE G I C S P EN D I N G S
EACH PROCESS-MATURITY LEVEL PAYS
OPERATIONAL
SPENDINGS
OPERATIONAL
SPENDINGS
OPERATIONAL
SPENDINGS
STRATEGIC
SPENDINGS
STRATEGIC
SPENDINGS
STRATEGIC
SPENDINGS
FREED FTEs
FOR NEW
PROJECTS
PRODUCTIVITY
DIVIDEND
INCREMENTAL
STRATEGIC
SPENDINGS
Current Spend
Greater Operational Efficiencies
ProductivityDividend.1.5 ©2008 GISTICS, All rights reserved.
The greatest savings and
number of freed up FTEs result
from Centralized Collateral
Production, emphasizing
the dramatic reduction of
local in-country resources
dedicated to translation of copy,
regionalization of imagery, and
production of final artwork for
printed collateral.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Future Spend
SIX STAGES OF A PROCESS-MATURITY MODEL FOR A COLLATERAL OPERATION
0 1 2 3 4 5
Asset
Consolidation
Asset
Consolidation
(DAM only)
with Manual
Centralized
Localization and
Production
Centralized
Collateral
Production
Sourcing
Alignment
Federalized
Localization
Strategic
Sourcing of
of Creative Partners
Workflows and
Processes
Creative Content
and Production
and Localization
PROGRESSIVE ECONOMIC GAINS BY LEVEL OF PROCESS-MATURITY PHASE
Estimated cost avoidance
$2,124
$815,918
$6,632,361
$728,516
$1,849,227
$2,436,274
Productivity dividend: new money
$1,487
$571,143
$4,642,653
$509,961
$1,294,459
$1,705,392
24 DAYS
13 DAYS
35 DAYS
12.5 DAYS
12.5 DAYS
26.5 DAYS
Total number of staff days saved
2,575 DAYS
973 DAYS
8,014 DAYS
874 DAYS
2,142 DAYS
2,905 DAYS
Days available for new projects
1,674 DAYS
633 DAYS
5,209 DAYS
568 DAYS
1,392 DAYS
1,888 DAYS
Time-to-market days gained
Detail data items
$2,017
$762,125
$6,276,467
$684,430
$1,677,361
$2,275,235
Total Material Savings
$65,345
$36,320
$231,573
$28,064
$129,485
$111,017
Total Overhead Savings
$41,917
$17,473
$124,321
$16,021
$42,207
$50,022
Total Labor Savings
FULL-TIME EQUIVALENTS (FTEs) ADDED BY GREATER OPERATIONAL EFFICIENCY
Total number of staff FTEs saved
11
4
34
4
9
12
FTEs available for new projects
7
3
22
2
6
8
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
10
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What financial analysis justifies the business decision to
outsource localization to a pan-regional collateral operation?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
OUTSOURCING ECONOMICS
Outsourcing to a pan-regional collateral operation entails
little or no upfront costs. Most of these operations charge
by the individual unit cost of a localized, print-ready
page, achieving a 70 percent cost reduction at level two,
BUSINESS ASSUMPTIONS
Annual revenues from EMEA operations
Centralized Collateral Production. Additional dividends
accrue in the form of lower costs for creative designs at
level three, Sourcing Alignment of Creative Partners,
faster time to secondary markets at level four, Federated
Localization Processes, et cetera.
COUNTS
1
FINANCIALS
$1,000,000,000
Annual EMEA marketing spend
$100,000,000
Amount spent on creative and related work
($30,000,000)
Amount spent on media planning and placement
($49,000,000)
Amount spent on collateral printing and distribution
($21,000,000)
COLLATERAL PRODUCTION (averaged to industry benchmark)
Number of outlets serviced
8,000
Number of annual product campaigns
40
Number of collateral format types per product
9
Number of pages per collateral format type
1
Number of pages to localize
360
Number of markets requiring localized collateral
25
Total number of pages localized
9,000
Number of localized pages with photographic images
4,500
Number of printed copies per collateral piece
10,000
Total number of printed collateral pieces
PRODUCTION COSTS (averaged to industry benchmark)
90,000,000
INTERNAL
EXTERNAL
BASELINE
Total labor costs of collateral printing and distribution
$21,000,000
Create local market concept
68%
32%
$4,200,000
Photography and retouch
34%
66%
$4,410,000
Copy translation and design localization
18%
82%
$336,000
Printing
12%
88%
$10,584,000
22%
78%
Distribution
PRODUCT LIFE CYCLE DATA (averaged to industry benchmark)
$1,470,000
1
$90
Annual product line revenues
$0
$160,000,000
Number of days in product lifecycle
240
Percentage of total sales realized in first 90 days
65%
Revenues per day in first 90 days
$1,155,555
Number of days to produce localized collaterals
25
Revenues lost due to nonavailability of collaterals
50%
Percentage of total lifecycle revenues lost
5.21%
Total life cycle revenue lost due to nonavailability of collaterals
14.73%
$2,016,626
($8,333,333)
MATERIAL
SAVINGS
$65,345
Global Marcom Asset Repository
5.57%
$762,125
$36,320
$17,473
$571,143
Centralized Collateral Production
45.84%
$6,276,467
$231,573
$124,321
$4,642,653
CYCLE TIME AND PRODUCTIVITY DIVIDENDS
Baseline: DAM at headquarters; assets not localized
Sourcing Alignment of Creative Partners
LABOR SAVINGS
OVERHEAD
SAVINGS
$41,917
NEW MONEY
$1,486,721
5.00%
$684,430
$28,064
$16,021
$509,961
Federated Localization Processes
12.25%
$1,677,361
$129,485
$42,207
$1,294,337
Strategic Sourcing of Creative, Marketing Content, and Production
16.62%
$2,275,235
$111,017
$50,022
$1,705,392
Total Labor Savings
Total Material Savings
Total Overhead Savings
New Money
Incremental Revenue created by recouping 25 days to market
TOTAL ECONOMIC BENEFIT
$13,692,243
$601,805
$291,962
$10,210,207
$8,333,333
$33,129,550
1 150 marketing and support staff in EMEA headquarters and 150 marketing and marcom staff in local countries
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
11
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What capabilities comprise each stage of a
process-maturity model for pan-regional collateral operations?
operational capabilities of a pan-regional
collateral operation
collateral operation achieves continuous, ongoing reduction
of costs, defects, and process cycle times.
Share and connect represents the integration of information
and IT processes among loosely coupled systems of a
marketing supply chain.
The table below depicts the operational capabilities of a
pan-regional collateral operation, calling attention to four
domains.
Collaboration support entails a growing set of best
practices and system capabilities for speeding the
communication, interaction, and collaboration among
geographically dispersed teams.
Asset quality control describes how a pan-regional
GLOBAL MARCOM
ASSET REPOSITORY
1
Higher quality, on-brand,
collateral DESIGNS brought
to market faster shared
more wisely
Process automation emphasizes the reengineering of
business processes, the automation of workflows, and the
development of real-time, policy-managed supply chains for
marketing operations.
CENTRALIZED
COLLATERAL
PRODUCTION
SOURCING
ALIGNMENT WITH
CREATIVE PARTNERS
FEDERALIZED
LOCALIZATION
PROCESSES
STRATEGIC SOURCING OF
PRODUCTION
More relevant, on brand
LOCALIZED VERSIONS of
the central marketing
materials at lower costs
brought to market faster
Greater pan-regional
transparency and process
controls enables more
precise synchronization
and faster roll out of
COLLATERAL CAMPAIGNS
Central production of
PRINT COLLATERAL with
fewer defects and review
cycles at much lower cost
to a more standardized
quality
Faster and better
controlled distribution
leads to the COLLATERAL
FACING THE CUSTOMER at
the point and time where
it matters
2
3
4
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
5
Collaboration Support
• Creative Project Workflows
• Smart folders and work-inprocess queues
• Web workbenches for
creative and production
groups
• Auto-notification of asset
users
• Supported localization
process
• Project rooms and detailed
Web-based notes
• Certified “trusted advisors”
on call
• Auto-notification user in the
process
• Shared generation process
for creative material
• Standardized creative briefs
• Generic Brand guidelines
• Planning information and
support on upstream process
• Pan-Regional team
• Pan-regional project status
reporting
• Instant work load
prioritization and load
balancing
• Pan-Regional sourcing
process
• Pan-regional networked
supply chain
• Pan-regional planning &
forecast
• Pan-regional capacity
forecast
• Standardized processing of
assets
• Shared collateral-publishing
templates
• Multi-level user group and
user permissions
• Remote review and
approvals with visual
annotation
Project-activity reporting
• Standardized supply
creative materials
• Technical artwork standards
for Agencies
• Central execution and
responsibility for image
standardization
• Central font and color
management
• Shared effectiveness
information on assets and
materials
• Shared in store collateral
evaluation teams
• Distribution of efficiency data
of items and campaigns
• Standardized materials and
paper types
• Central paper buying
• Central materials sourcing
• Central supplier accreditation
Digital print standards
• Joined platform to work on
• Classified and searchable
Wiki-like collections of
project notes
• Controlled access to projects
and assets
• Single sign-on
• Joined platform for agencies
to supply to
• Use of local agencies
• Local generated creative
ideas in Pan-Regional
platform
• Electronic exchange
mechanisms for data
• Versatile Web Service
framework
• Published SDK and APIs
• Publish structured content
to enterprise Web content
management systems
• Shared network of suppliers
• Actively managed print
supply network including
local suppliers
• Active bidding procedure for
each within supplier network
• Channel partner access
• Automation to increase
productivity and consistency
of data
• Rules-based translation of
copy-text and metadata
• Company specific terms
reference
• Integration with Product Data
Management systems
• Integration with life cycle
management systems
• Automation to increase
productivity and consistency
of ordering
• Integrated “my price”
quotation service for print
and advertising
• Integrated budget
management
• Channel partner bonus
schemes
Asset quality control
• Standardized collection &
storage of assets
• Multiple views of a single
asset
• Detailed asset-use reporting
• User-generated metadata
(IPTC, EXIF, XMP)
• Asset version & status
control
Share and connect
• Easy distribution of assets
• Automated metadata
synchronisation with ERP
• Authorization based
access control
Asset distribution tools
Automation of manual work/process reengineering/productivity enhancement
• Automated or facilitated
processing of assets
• Auto-generation of previews
• On-demand generation of
versions of a single asset.
• Auto generation of asset
property metadata
• Auto-classification of textual
content (MS Office, Adobe
CS)
• Auto-tagging assets with
metadata
• Hot folders, scripts and wizards
• Automated artwork
generation & application of CI
• Automated artwork
generation (DTP robot)
• XML Style sheets and forms
• Print or publication-ready
files
• Automated intake and quality
control processes
• Automated check incoming
artwork against standards
• Automated check incoming
artwork against printer
requirements
• Automated PDF workflow
• On-demand refresh of
collateral layouts and
versions
• On-demand file transformation
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
12
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
...................
...................
SECTION III
SERIES//MANAGEMENT ADVISORY
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Pan-Regional Marketing
Productivity Dividends from
Outsourced
Collateral Operations
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Marc om S upply C hains
PAGE
14
15
16
17
18
19
20
ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION:
What constitutes the operational strategy of most CMOs?
What confuses many executives about the key functions of a brand and related marketing?
What single outcome must every marketing campaign, sales call, and eBusiness Web site accomplish?
How has the structure of marketing communications evolved to maximize coverage across international markets?
What constitutes a marketing supply-chain?
How do pre-press activities of marketing collateral for a new product launch run into almost unfathomable complexity and time delay?
How have marketing operations responded to globalization, integration of marcom supply chains, and demands for accountability with process transparency?
GISTICS
13
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What constitutes the operational strategy of most CMOs?
create and sustain competitive advantages in its selected
markets. This includes the creation of the following:
• New markets and revenue streams
• New customers of existing and new offerings
• Larger and more frequent orders from customers
• Greater loyalty and acceptance of system lock-ins
• Higher barriers to market entry
Each business will emphasize one or more of these
competitive advantages over others, reflecting economic
conditions, corporate lifecycles, business process maturities,
etc.
One fact, however, remains constant: the demand to
change with little or no forewarning.
This calls attention to two more critical operational
capabilities: business agility and organizational change
management.
Business agility describes the ability to reconfigure
processes and workflows within a day or less. This
capability requires an on-demand IT service management
infrastructure and the technical capability to rapidly
integrate new services to the all-important brand theaters
of the firm. For many marketing operations, this means
securing much of needed application software “as a
service.”
Organizational change management describes the
systems, processes, and accountabilities for facilitating
the rapid deployment of new systems, processes, and
accountabilities. In many respects, organizational change
management will determine medium- to long-term success
in volatile markets punctuated by all manner of disruptive
innovations and economic discontinuities.
MARSHALS AVAILABLE RESOURCES
Strategy constitutes a mechanism for directing available
resources to achieve maximum competitive strategy.
Most chief marketing officers (CMOs) know that
this mechanism comprises systems, processes, and
accountabilities for directing the resources of a complex
marketing operation.
The figure below depicts key dimensions of strategy,
emphasizing how CMOs formulate strategy as an integrated
system where each element interacts and affects all other
elements of the system.
Brand integrity defines an operational capability of a
marketing operation: how marketing staff and partners
create and execute marcom with clear brand values,
consistent expressions, and credible messages. Brand
integrity succeeds when customers and other stakeholders
develop deep, resonant emotional connections with the
brand and the brand’s community of users and advocates.
Strategic differentiation entails the translation of
customer insights and buying criteria to marcom, eliciting
desire or need for the offered product or service. Strategic
differentiation succeeds by achieving leadership in its
market category.
Market coverage describes the delivery of promotions and
marcom to all the key touchpoints with customers and trade
partners, integrating digital online channels and traditional
print and broadcast channels with point of purchase
promotions and packaging. Market coverage succeeds
with the convergence of all marcom at points of purchase,
creating an “echo effect” in the market.
Marcom supply-chain orchestration describes the
increasing levels of process integration among industry
partners, emphasizing more agile
sourcing and procurement of creative M A NY F A C TORS C ONTR I B UTE TO A SUST A I N A B LE C OM P ET I T I V E
service, marketing content, and
A D V A NT A G E
production. Marcom supply-chain
orchestration succeeds by producing
productivity dividends: new money
for strategic spendings.
Digital brand interaction
describes the newest and fastest
USE SYSTEMS, PROCESSES, AND ACCOUNTABILITIES TO MARSHAL THESE RESOURCES OF A MARKETING OPERATION
growing operational capability,
provisioning contextualized
BRAND
STRATEGIC
MARKET
MARCOM
DIGITAL BRAND
INTEGRITY
DIFFERENTIATION
COVERAGE
SUPPLY-CHAIN
INTERACTION
content and interactive services to
ORCHESTRATION
customers and other stakeholders.
• Deep customer insights • Present at key buyer
• End-to-end process and • Digital content and Web
• Brand-value clarity
Successfully executed, this produces
touchpoints
workflow integration
services management
• Buyer’s recognition of a
• Brand-expression
system
desire or need
• Online and offline
• Strategic sourcing of
consistency
self-service satisfaction.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
CMOs
SUSTAINABLE COMPETITIVE
ADVANTAGE.
Innovation and marketing create
value. Operational capabilities
enable a firm to create innovation,
drive new offerings to market,
facilitate the buying and using
process, and maintain infrastructure
and systems enabling core
operational capabilities.
Marketing’s operational
capabilities enable the firm to
• Brand-message
credibility
• Leadership in market
category
AND PRODUCE THESE EXTERNAL PERFORMANCE RESULTS
Emotional
Connection
“Wow” and
Visceral Delight
GISTICS
Commanding
Position in Market
Greater Portion of
Strategic Spending
Self-Serve
Satisfaction
THUS ACHIEVING THESE SUSTAINABLE COMPETITIVE ADVANTAGES
New markets
and revenue
streams
New customers for
existing and
new offerings
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
14
media integration with
creative and production • Comprehensive multipoints of purchase
modal search and
• Consolidated item-detail
metadata schema
• Synergies of multi-party,
reporting of:
-channel and -media:
• On-demand digital ser- Efficiency
“echo effects” and viral
vices for self-directed
- Effectiveness
word-of-mouth
customers
- Business impact
Larger and more
frequent orders
from customers
Greater loyalty
lock-ins
Barriers to
market
CMOMandates.B.3.0 ©2008 GISTICS. All rights reserved
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What confuses many executives about the key
functions of a brand and related marketing?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GRAND PURPOSE OF MARKETING
NOT AN IDIOT, BUT YOUR WIFE (OR HUSBAND)
Great marketing evokes desire among potential buyers,
inducing individuals to want a particular brand.
Marketing often starts with concrete demonstrations of
the need for a particular product or service, calling attention
to the following elements of a traditional promotion or
pitch:
• Known and familiar social contexts—home, leisure,
work, school, social venues, inside a car
• Physical or emotional breakdowns—accident or
problematic condition evoking pain, frustration, etc.
• Subsequent experiences of relief—often sudden and
noticed by others
• Attributions of relief to a particular brand—audio-visual
identifiers, packaging, brand facets
However, this approach nonetheless can fail due to
a number of factors, including incomplete products,
competition, high prices, etc.
The figure below depicts an often-overlooked critical
success factor: the emotional connection that buyers create
and maintain with their chosen brands.
Customers create their own emotional connection with
a brand. Sellers assist buyers in creating this emotional
connection by simplifying a choice in a cluttered market,
reducing the real and perceived risks of the purchase and
linking brand use to membership in an aspirational or
acceptable peer group.
Great marketers understand that marketing also creates and
helps sustain relationships between buyers and sellers.
With success, the nature of this relationship evolves over
time from a buyer-seller relationship to customer-vendor,
loyalist-franchise, and stakeholder-institutional citizen.
As these relationships evolve, brands develop equity and
social capital, generating not only positive word of mouth,
but also forgiveness for the occasional blunder, as well as
coaching insights for innovation.
While almost unimaginable a decade ago, major
organizations now invest huge sums in diversity,
sustainability, and community development—all forms of
deposit in the emotional bank accounts of customers and
other stakeholders.
This highlights another aspect of brands: great brands
drive share price. Key development: Corporate boards now
call upon chief marketing officers to use the systems,
processes, and accountabilities to drive brand and corporate
reputation.
As this relates to a pan-regional collateral operation, the
greater operational efficiencies also reduce carbon footprints
and consumption of paper. A best-of-class collateral
operation provides accurate, timely hard data documenting
good institutional citizenship.
t h e m o t iva t i o n s a n d e xp e c t a t i o n s o f b u y e r s e n e r giz e s t r a t e gic di f f e r e n t ia t i o n i n m a r k e t s
SIMPLIFIED CHOICE
RISK REDUCTION
SELF-IDENTITY
• Lower search cost
• Faster time to
transaction
•Assured quality
•Broad availability
•Status confirmation
•Belonging to
aspirational group
Buyer Motivations
Brand Function
Seller Motivations
REORDERS
•Lower
selling
costs
•Higher
more
frequent
purchases
BrandFunction.1.5
©2008 GISTICS
All rights reserved.
PRICE
PREMIUM
BARRIERS
TO ENTRY
DIFFERENTIATION
PROMOTIONAL
FOCUS
SIMPLIFIED
MESSAGING
•Buy now
•Forego
discounts
•Share
price
•Ride
coattails
•Block
competitIon
•Institutional
citizenship
•Distinctive
capability
• "Secret
sauce"
•Demographic
segments
•Copy and
concepts
•Ad word buys
•Better
media
targeting
•Higher
search
ratings
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
CATEGORY
CONTROL
•Product
lines
•Cross-sell
•Promotional
synergy
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
15
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What single outcome must every marketing campaign,
sales call, and eBusiness Web site accomplish?
EVERYTHING STARTS WITH THE CUSTOMER
Many business and marketing executives forget the
confusion and indecision of first-time buyers of an
unfamiliar product or service.
All too often, marketing professionals get too caught up
in details of their products or services, the competition, and
pressure to meet quarterly revenue targets.
Marketing executives must battle every day that urge
to make their selling messages and campaigns too cute,
complex, or self-referential.
Brilliant, breakthrough marketing facilitates the buying
process, simplifying complexity and reaffirming that the
customer already has all the answers. Great marketing helps
customers discover what they already know about a new
product or service, making it appear familiar and predestined
to the customer. Marketing serves no greater purpose than
helping the customer make the right buying decision.
STRATEGIC SHIFT TO THE POINT OF PURCHASE
In the last 30 years, marketing investments have shifted
from mass advertising to promotion at the point of
purchase. Why?
Paradoxically, these self-directed consumers walk into
stores with printed web pages and say “I want this. Now. Or
forget about it.” This means that the retailer must have the
referenced product in stock, or have printed collateral that
matches the printed web page.
Or, overwhelmed-with-it-all consumers walk into a
store seeking that “A-ha” moment: “I like that!”. Crisp and
localized print collateral that reinforces the impulse to buy.
Online comparison shopping induces many of these
self-directed consumers to come into a market firmly
predisposed to buy a particular brand and from a particular
firm.
mastering the buying decision
Marketing and sales executives must master the dynamics
of a buying decision at the point of purchase: over the
telephone, face to face, on Web sites, or by email.
Increasingly, marketing and sales executives must
customize heretofore “mass market communications” to
particular customer groups and personalize the consideration
and trial messages to the criteria of a particular individual.
The term “customerization” describes this two-pronged
strategy of customization and personalization. Large and
midsize firms can customerize their marketing and sales
proposals using workflow automation and document servers
to reduce preparation and distribution costs as well as speed
proposals to their designated client destination.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
f i r s t a n d f o r e m o s t, m a r k e t i n g f aci l i t a t e s t h e b u y i n g d e ci s i o n
YES-I'll
Can we
afford it?
I like that
$
$
$
$
$
$
$
take it!
Buying.Dec.1.1 ©2008 GISTICS All rights reserved.
With an increasing number of buying decisions made at the last possible moment, marketing and sales executives must master the dynamics of the point of purchase. This
mastery involves helping buyers make the right decision, whether over the telephone, in face to face meetings, or through Web sites and email.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
16
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How has the structure of marketing communications
evolved to maximize coverage across international markets?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
INTEGRATION OF MARCOM SUPPLY CHAIN
Emergence of the all-digital marcom supply chain will speed
the redistribution of work to the most productive operations
within the supply chain and drive operations toward higher
levels of process transparency and brand governance
The figure below depicts a natural progression toward a
networked supply chain and centers of excellence.
In particular, the activities of localization, production,
fulfillment, and delivery migrate towards a centralized
operations and extensive levels of work–flow automation.
Uniform sourcing processes create consistent, high
quality data — necessary for detailed reporting and ongoing
process improvement.
M A R C OM O P ER A T I ONS E V OLV E TOW A R D H I G HER LE V ELS OF G O V ERN A N C E & TR A NS P A REN C Y
CENTRALIZED OPERATIONS
FEDERALIZED LOCALIZATION PROCESSES
GLOBAL
BRAND
MARKETING
GLOBAL
CREATIVE
AGENCY
ENGAGEMENT
SERVICES
MARCOM
AND CATALOG
Local
Marketing
Offices
COLLATERAL
AND PRINT
Networked
Production
Houses
Synchronized
global market
coverage with full
detail reporting
Networked
Distribution
and Detailing
NETWORKED SUPPLY CHAIN
PAN-REGIONAL OPERATIONS
TRANSACTION AND INTERACTION DATA
2
1
E V O L U T I O N A R Y
3
T R E N D
MARCOM ASSETS AND FINAL-FORM CONTENT
ONE UNIFORM PRODUCTION WORKFLOW WITH DETAIL REPORTING
GLOBAL BRAND
MARKETER
GLOBAL
CREATIVE
AGENCY
PAN-REGIONAL
PRODUCTION
Local Marketing
Offices
Local Production
Houses
Local market
coverage with
some detail
reporting
Local Distribution
and Detailing
TRANSACTION AND INTERACTION DATA
MARCOM ASSETS AND FINAL-FORM CONTENT
25 DISPARATE WORKFLOWS WITH NO DETAIL REPORTING
LOCALIZATION
ACTIVITY
GLOBAL BRAND
MARKETER
GLOBAL
CREATIVE
AGENCY
Local Marketing
Offices
Networked
Creative Agency
Local Production
Houses
Local Distribution
and Detailing
TRANSACTION AND INTERACTION DATA
Local market
coverage without
uniform
detail reporting
MARCOM ASSETS AND FINAL-FORM CONTENT
IMPACT ON MARKET COVERAGE AND TIME TO MARKET
4
UNIFORM SOURCING PROCESSES AND METRICS
25 DISPARATE WORKFLOWS WITH NO DETAIL REPORTING
LOCALIZATION
ACTIVITY
GLOBAL BRAND
MARKETER
Regional Creative
Offices
Local Creative
Agency
Local Marketing
Office
Local Production
Houses
Local Distribution
and Detailing
TRANSACTION AND INTERACTION DATA
Late off-brand
local market
coverage
without detail
reporting
MARCOM ASSETS AND FINAL-FORM CONTENT
DECENTRALIZED OPERATIONS
KEY
CENTERS OF
EXCELLENCE
NETWORKED
LOCAL
MarcomCentralized.3.1
©2008 GISTICS, All rights reserved.
Optimization of the marcom supply chain entails end-to-end integration of production workflows and business processes, calling attention to centers of excellence as key
enablers.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
17
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What constitutes a marketing supply-chain?
LOOSE-KNIT NETWORKS EXPOSED
NOISY MEDIUM DISTORTS STRATEGY
Chief marketing officers (CMOs) and their teams develop
a marketing strategy and execute that strategy across
multiple markets, regions, communications media, and
suppliers or partners.
The figure below depicts the inherent complexity
of executing a brand-marketing strategy with clarity,
consistency, and credibility.
Each entity with its respective channel can distort or
diminish an otherwise brilliant brand-marketing strategy.
CMOs now seek ways to use technology and systems to
“drive out the noise” in their marketing communications.
This paper explores several operational strategies for
minimizing the distortion of global, multichannel brandmarketing strategies.
A n e t w o r k o f s u p p l i e r s t r a n s f o r m m a r k e t i n g g o a l s a n d s t r at e g i e s i n t o
m u lt i c h a n n e l c o m m u n i c at i o n s , ta r g e t i n g k e y c u s t o m e r t o u c h p o i n t s
MARKET INTERFACE
MARCOM SUPPLY-CHAIN
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ABOVE THE LINE
Broadcast
Production
Studios
PostProduction
Cable/
TV Networks/
Syndications
Local
Broadcast
Editorial
Creation
Printing
Distribution
Webmaster/
Telemedia
Developer
Internet
Service
Provider
Points of
Presence on
Web
PostProduction
Cable/
TV Networks
Broadcast/
Fulfillment
Periodicals
Publisher/
Ad Sales
Online
Internet
Application
Designer
Consumer
Chief Marketing Officer
Brand Manager
Integrated
Product Manager
Marketing Manager Communications
Agency Network
Manager Corporate
Communications
• Sales Manager
• Agencies
Direct
Response
Firms
Business
Packaging
Design Firm
CAD Artwork
Producer
Assembly
Manufacture
Warehousing
Distribution
Printing
Direct Mail/
Onsite Visits
Detailers/
Rack Jobbers
Point-of-Sale
Coupons/
Gift Cards
Printing
Houses
Fulfillment
Centers
Onsite
Producers
Staff and
Talent
Business Collateral
Direct Sales
Channel
Sales
Collateral/
Presentations
Industrial
Channel Merchandising
Localization Teams
Chains and
Mass
Merchants
BELOW THE LINE
• Local Agencies
• Local Staff
• Regional Marcom Agencies
Merchandising
Programs
Catalog Resellers
Catalog
Houses
Production
Groups
CUSTOMER SEGMENTS
Infomercials
Strategy Team
•
•
Industrial •
Supply- •
•
Chains
Public Sector
Events and Trade Shows
Event
Management
Firm
Exhibit
Production
Customer Loyalty / Trade Promotion
Promotion
Firm
Printing
Warehousing and
Fulfillment
Centers
Specialty
Print/
Manufacture
Local/
Onsite
Assemblage
Artwork
Production
Outdoor/Environmental
Billboard/
Mechanical
Design Houses
Production
Branded Merchandise/Licenses
Toy/Game
Manufacturer
Product
Design/
Marketing
Manufacturing
Distribution
ChainsMediaSpace.C.2.2 © 2008 GISTICS All rights reserved.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
18
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How do pre-press activities of marketing collateral for a newproduct launch run into almost unfathomable complexity and time delay?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
COMPLEXITY AND COST OF
LOCALIZATION FOR MULTICHANNEL MARCOM
STRATEGY
STRATEGIC DECISION PACKAGE
• Research
• Collaboration
• Documentation
• Meetings and
Presentations
1. Business Goals and Metrics 2. Brand-Positioning Brief 3. Master Creative Brief
NEW PRODUCT MASTER
1. SKU order processing data 2. Naming Conventions & Iconography 3.Regulatory Compliance
CORE MARCOM
ASSETS
PACKAGING
• Concepts
• Design
• Development
PRODUCTION
MANAGEMENT
CAMPAIGN COLLATERAL
1. Photos 2. Illustrations 3. Logos & wordmarks 4. DTP-CAD layouts
User
Directions
• Assembly
• Reviews and
Approvals
• Distribute
In-box
Coupon
Trade
Promo Flyer
POP
Signage
Trade Account Preso
Deck
Publicity
Kit
Product
Brochure
Display
Ads
In-Store
Flyer/Shelf
Talker
Newsletter
Article
w/Photo
Catalog
Page
Consumer
Direct
Mailer
Banner
Ads
Rich Media
Demo
LOCALIZATION
Arabic
Chinese
Danish
Dutch
English UK
English US
Finnish
French
German
Greek
Hebrew
Hindi
Italian
Japanese
Korean
Malay
Norwegian
Polish
Portuguese
Punjabi
Russian
Spanish
Swedish
Turkish
Urdu
CONSUMPTION-USE
• Final-Form Output
• Delivery and Staging
• Detailing and Disposal
MarConCascade.1.0 © 2005 GISTICS. All rights reserved.
The figure to the right
depicts one of the principal
sources for cost and time
delay for a global product
launch: localization of
marketing contents. Many
new-product launches lead
with two types of core
marcom assets: packaging
and marketing campaign
collateral.
The tight linkage
between packaging and
campaign materials often
lead to difficult, costly, and
problematic workflows.
Requirements of colorprecise packaging and
physical fabrication of
packaging often entail
the production of final
photography and copy
writing––material also
needed for finalized
marketing material ––only
a few weeks before
the scheduled launch.
Late-to-marcom assets
(photos of final packaging
and products) cascade
throughout production
management of source
marketing materials as
well as localized versions.
Localization consumes
another three to 10 weeks,
stealing precious time for
a typical product-sales
lifecycle of five months––
the average period of time
in which most marketers
realize 90 percent or more
of total sales volume.
C A S C A D E OF M A RKET I N G C ONTENT
FABRICATED
MATERIAL
PRINTED
MATERIAL
DIGITAL
MATERIAL
INTERACTIVE
MATERIAL
Production management, localization and distribution workflows that rely on manual processes add three to 12 more weeks to
get to market — much too late to exploit the initial buzz of a major launch––and represents as much as a quarter of a product
selling-time lifecycle.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
19
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How have marketing operations responded to globalization,
integration of marcom supply chains, and demands for accountability
with process transparency?
BIG SHIFTS UNDERWAY
QUANTIFICATION OF RETURNS
The imperative to improve operational efficiency of
marketing entails several dramatic changes in traditional
ways of doing business.
The figure below depicts four major shifts now underway
in most marketing operations.
Measurement of returns on marketing investments entailed
the use of syndicated research and the estimation of the
number of impressions received by probable buyers as well
as levels of awareness and recall of a brand and a brand’s key
attributes among various market segments.
The complexity of multichannel marketing programs;
the greater emphasis on brand interaction, shorter planning,
and mid-course correction cycles; and the expansion of
below-the-line programs required more powerful and useful
measurements.
Return on marketing investment attempts to quantify
the value and economic contribution of individual elements
of a marketing program. Quantification of brand equity
increasingly emphasizes brand interaction data and the
number and types of customers that opt-in to particular
promotions or interactive services.
PLANNING SCOPE EXPANDS
Traditionally, marketing operations developed and executed
media plans that emphasized traditional advertising and
some direct mail and publicity activities.
The Web, email marketing campaigns, and dozens of
other more direct or higher yield marketing tools have
emerged and changed market dynamics and competition.
As a result, marketing planners expanded their scope.
They developed complex multichannel communications
plans for maximum effect with targeted customer segments
at the most strategic touchpoints along the paths to
SUMMARY
purchase—promotions, Web sites, and call centers.
Executive management will demand greater accountability
Marketing plans also target brand interactions along
and transparency.
a continuum of market development phases, piquing the
These demands will require the disciplines of strategic
interest of first-time buyers, reinforcing buying decisions of
sourcing,
process outsourcing, and workflow automation.
recent customers, and promoting behaviors of loyalty and
advocacy.
Planning must not only emphasize mastery
M A J OR SH I FTS UN D ERW A Y THROU G HOUT M A RKET I N G
of multichannel communications, but planning
O P ER A T I ONS M A N A G EMENT
must also expand to include more complex and
nuanced customer development processes.
PAST
TIMING CYCLES SHORTEN
In the recent past, marketing operations
developed and executed annual or semiannual
programs.
Globalization and the Internet forced planning
cycles to shorten and, often, change abruptly.
Marketing executives now review weekly status
reports and key performance indicators derived
from interactive media and call center activity.
Shorter timing cycles with abrupt changes
require higher levels of coordination through
global marketing operations and the ability to
execute strategy refinements in hours or days
instead of weeks or months.
Media plans
FUTURE
PLANNING
SCOPE
Semi-annual
update
TIMING CYCLES
Above the
line
SPENDINGS
GROWTH
BELOW-THE-LINE SPENDING INCREASES
Much of the real growth in marketing spends
occurs below the line—a term that connotes
expenses other than traditional broadcast and
print advertising (above the line).
Often these below-the-line expenses entail
working with tens to hundreds of vendors
and promotional outlets, resulting in added
complexity and much higher transaction costs.
Reach and
awareness
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
QUANTIFICATION
Brand
interaction plans
Monthly update
Below
the line
ROMI and
brand opt-ins
Shifts4MOM.1.0 © 2007 GISTICS All rights reserved.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
20
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
...................
...................
SECTION IV
SERIES//MANAGEMENT ADVISORY
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Pan-Regional Marketing
Productivity Dividends from
Outsourced
Collateral Operations
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
C ent er of Ex c ellenc e f or P an-R egio n a l
C ollat eral Operat ions
PAGE
22
23
24
25
26
27
ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION:
What constitutes a “center of excellence” for pan-regional collateral operations?
What key components constitute a Collateral Factory, the technical infrastructure of a center of excellence in the marcom supply chain?
What technologies comprise the digital media supply chain?
What are the total lifecycle costs of enterprise DAM, comparing costs of internally deployed DAM versus the on-demand delivery of DAM?
What are the total lifecycle costs of a collateral operation,
comparing costs of internally deployed services versus the on-demand delivery of services?
What constitutes a supply-chain strategy for marketing content?
GISTICS
21
What constitutes a “center of excellence” for pan-regional
collateral operations?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
MARCOM OUTSOURCED
Brand marketers can realize significant gains by outsourcing
collateral operations to a center of excellence. The figure
below depicts several key elements of such a center of
excellence.
Entry-points define meaningful first-engagements of a
pan-regional collateral operation.
Managed on-demand services refer to information
technology that does not require purchase and deployment;
rather, a collateral operation provisions a managed service
as a rented or pay-as-you-use utility. This not only precludes
capital outlays, lengthy startups, and costly maintenance
but managed on-demand services can also scale upwards to
downwards without delay or requirements to purchase and
deploy new hardware.
Smart collateral factory defines a set of online fixtures
that underlie managed on-demand services and facilitates
rapid execution of pan-regional collateral programs.
Digital business model for a center of excellence for panregional collateral operations emphasizes the fiscal controls
of an autonomous business operation that continues to drive
best practices for marketing communications and media
production into embedded workflow automation and ondemand systems. Continuous, ongoing process improvement
entails statistical quality controls and an optimization
strategy that we call a process maturity-model integration or
PMMI .
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
FIXTURES OF CENTRALIZED MARCOM OPERATIONS
C ENTERS OF E X C ELLEN C E D R I V E I NNO V A T I ON I NTO G LO B A L M A RKET I N G O P ER A T I ONS
PERFORMANCE
RESULTS
ENTRY
POINTS
MANAGED
ON-DEMAND SERVICES
Pan-regional
Product
Launch
IMPROVED
MARKET
COVERAGE
• Self-service marcom
portals
• Print on demand
• Digital asset management
• Distance learning for brand
-marketing certification
INCREASED
SALES
Pan-regional
Trade and Channel
Promotion
HIGHER ASSET
UTILIZATION
SMART
COLLATERAL FACTORY
Pan-regional
End-Use
Customer Program
• Communications planner
• Project manager
• Media production
• Strategic sourcing
• Integrated fulfillment
• Best-practice controls
LOWER COST
STRUCTURE
SmartMarcomFactory.2.0 ©2008 GISTICS, All rights reserved.
DIGITAL BUSINESS MODEL
AUTONOMOUS
BUSINESS
OPERATIONS
+
MARCOM &
MEDIA
PRODUCTION
BEST PRACTICES
+
WORKFLOW
AUTOMATION &
ON-DEMAND
SERVICES
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
22
GISTICS
+
STATISTICAL
PROCESS-QUALITY
IMPROVEMENT
Centers of excellence
for pan-regional
collateral operations
constitute a significant,
ongoing investment in
people, technology, and
process, exceeding
capital-return criteria
for all but a few global
enterprises.
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
What key components constitute a Collateral Factory, the
technical infrastructure of a center of excellence in the marcom supply chain?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
INTEGRATED DIGITAL OPERATIONS
MANAGED ON-DEMAND SERVICES
The Collateral Factory constitutes a center of excellence in a
marcom supply chain.
The figure below depicts the key components of
a Collateral Factory, emphasizing the three strategic
applications and the provisioning of five managed ondemand services:
The figure below depicts five interactive services that
corporate users or trade partners may access through the
Web.
Online training and certification entail curricula and
testing for corporate users or trade partners, ensuring brand
governance and effective use of the collateral factory.
Customization services entail the fulfillment of work
orders for special-case localization and modification of
preexisting collateral pieces.
Self-service portals represent secure online workspaces for
corporate users or trade partners.
Marcom collateral stores enable corporate users or trade
partners to order literature packs, place work orders for
customization, and use online customization tools to make
collateral from prebuilt templates.
Print on demand enables corporate users or trade partners
to direct final-form brochures, datasheets, and catalogs to
local digital printing operations.
STRATEGIC APPLICATIONS
The figure below depicts the following strategic applications
of a Smart Marcom Factory.
Pan-regional product launches entail the synchronized
delivery of print, broadcast, point-of-purchase, and digital
collateral into 10 to 75 localized markets.
Pan-regional trade or channel promotions emphasize the
synchronized delivery of direct mail and point-of-purchase
displays to retailing partners.
Pan-regional end-use customer promotions emphasize
the synchronized delivery of direct mail, online content,
and mobile messaging to a cleansed database of registered
customers.
c o l l a t e r a l f ac t o r i e s d e l iv e r s t r a t e gic app l ica t i o n s t o u s e r s t h r o u g h o u t
m a r c o m o p e r at i o n s
Pan-regional
Product
Launches
Pan-regional
Pan-regional
Trade and Channel
End-Use
Promotions
Customer Promotions
ENTRY-POINT SOLUTIONS
MANAGED ON-DEMAND SERVICES
Online Training
and Certification
Customization
Services
Self-service
Portals
Marcom Collateral
Store
Print
On-Demand
FIXTURES OF SMART MARCOM FACTORIES
Multichannel
Marcom Performance Dashboard
Marcom
Information
Database
DAM
Repository
Smart XML
Collateral
Templates
Automated
Publishing
• Efficienct KPIs
• Effectiveness KPIs
• Business impact
simulations
• SKUs
• Promo copy
• Technical specs
• Metadata
• Logos and photos
• Translation memory
• PDFs
• Presentations
• Web content
• Multi-format
collateral types
• XLST stylesheets
• Finished print and
online collateral
• Ready-to-customize
• Templated HTML
Client Services Disciplines
Communications
planning
Global project
management
Media
production
Strategic
sourcing
Integrated
fullfilment
Best practice
controls
SmartCollateralPlatform.1.0 ©2008 GISTICS. All rights reserved.
DIGITAL SERVICES INFRASTRUCTURE
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
Collateral Factories
automate numerous
procedures and
eliminate duplicated
activities throughout a
marcom supply chain.
These efficiency gains
translate into greater
market coverage for
the current levels of
investment. Faster
cycle times and greater
market coverage
maximize key revenue
drivers: new product
launches, trade and
channel promotions,
and customer
promotions across panregional markets.
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
23
What technologies comprise the digital media supply chain?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
Complex systems integration
The creation, management, and distribution of digital assets
may entail the integration of as many as 13 systems.
Most often, firms will add one or more new systems to
their current IT infrastructure.
Functions of a collateral factory
Authoring represents a set of tools and practices for the
creation of media assets and finished products such as
brochures or Web pages.
User Generated describes text, images, audio, or video
files created by consumers and uploaded to a media-sharing
portal or service.
Syndication integrates external information or media
feeds to the authoring or editorial operations, using open
standards and XML.
Ingest describes the tools and activities involved in
digitizing images, photos, illustra­tions, video, and audio
material.
Asset repositories provide data management services
such as version controls, check in/ check out, and assetactivity tracking.
Contract management represents a set of tools and
practices for managing the creation, nego­tiation, and
execution of legal contracts. Key functions may include
word processing, spread­sheets, project management and
calendars, and assorted database services.
Assessment AND valuation emphasize the secur­ing
of legal rights and clearances for intellectual property as
well as an accounting of the property’s value and royalty
distributions. Key functions include collaboration tools,
document management, pro­ject management and calendars,
remote proofing, financial calculators, and database services.
Workflow enables the routing, viewing, and approval of
work in progress.
Encoding entails specialized processing. For color
printing, this means raster image processing of pages and
images for a designated printing process (black-and-white,
four-color, or six-color output).
For video and audio, encoding formats the material for
broadcast, DVD, or streaming presentation.
Publishing systems format media assets for print,
electronic, and online production.
Commerce systems include traditional enter­prise
computing systems as well as ERP, SCM, and B2B/B2C
catalog commerce systems.
Content managers organize material at specific Web sites,
adding workflow routing and approvals to the complex task
of managing massive Web­sites. They differ from portals in
that they do not target departmental functions of a firm,
nor do they gather, structure, and manage the presen­tation of
legacy data.
Rights management includes credit authoriza­tions,
royalty distributions, and policy enforcement.
Logistics includes physical and digital systems for
fulfillment. Leading vendors include FedEx, UPS, and USPS,
as well as Akamai and WAMNET
Digital embassies, a term used to describe licensed
software on end-user devices, terminate a brand resource
value chain. Popular embassies include Microsoft Windows/
Office/Media Player, Real Networks Player, and Apple
Mac OS/Sherlock/QuickTime.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Integration Of A Media Value Chain
The figure below also depicts the functions of an integrated
media value chain.
An enterprise integration framework represents three
critical capabilities: media-oriented middleware, application
servers optimized for the delivery of media services, and
professional services with deep knowledge of media creation
and workflow automation.
Such a framework enables the rapid modular integration
of new capabilities. Lacking this framework will entail
expensive custom software development, high maintenance
costs, and long lead-times to integrate new media services.
key functions of an Integrated media value chain
ENTERPRISE INTEGRATION FRAMEWORK
User Generated
Authoring
Syndication
Ingest
Asset
repositories
Publishing
systems
Assess- Encoding
Contract
manage- ment &
valuation
ment
BRMTechValueChain.1.9 © 2008 GISTICS, All rights reserved.
Asset
creation
Workflow
GISTICS
Digital
embassies
Content
managers
TIME-TO-MARKET CYCLE
Asset
Asset
management
distribution
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
24
Commerce Rights
systems management
Logistics
eService
applications
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What are the total lifecycle costs of enterprise DAM,
comparing costs of an internally deployed DAM versus the on-demand delivery of
DAM?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ENTERPRISE CLASS DAM : Software and Internal Data Center Deployment vs. Outsourced DAM Services Platform
User Base: 250 creative users and 5000 asset users distributed
globally
STARTUP
DAM Software - Internal Deployment
YEAR 1
APPLICATIONS & SOFTWARE
DAM software licenses / Outsourced platform setup fee
Outsourced DAM Services Solution
7-month deployment
YEAR 1
3-month deployment
NOTES
$250,000
NOTES
License fees for DAM system software
$20,000
Solution setup fee - includes all configuration
Application & web server software licenses
63,500
License fees for web and application server software
N/A
No licensing fees - integrated platform
Database management software licenses
40,000
License fees for DBMS software
N/A
No licensing fees - integrated platform
Backup, archive & disaster recovery software licenses
35,000
License fees for backup and archive software
N/A
No licensing fees - integrated platform
Server operating system licenses
16,000
License fees for server operating systems
N/A
No licensing fees - integrated platform
SUBTOTAL
$404,500
LABOR & CONSULTING
$20,000
NOTES
NOTES
Strategy, oversight & project management
$110,000
Planning, budgeting, tracking and project management
Internal technical staff - operational and interface development
$201,600
7 months FT, 1.5 FTE at $120/hour
-
3 months FT, 0.5 FTE at $120/hour
DAM vendor professional services - consulting firm
$112,000
7 months, .5 FTE at $200/hour
-
2 months, 0.5 FTE at $200/hour
$10,000
Planning, budgeting, tracking and project management
3rd party high-availability network integration Consulting firm
$18,000
3 week project, 1 FTE at $150/hour
-
Built-in solution capability
Content & information architectures - consulting firm
$48,000
3 week project, 2 FTE at $200/hour
-
2 week project, 1 FTE at $200/hour
Taxonomy & metadata schema - consulting firm
$64,000
8 week project, 1 FTE at $200/hour
-
4 week project, 1 FTE at $200/hour
Asset / content migration services firm
$72,000
12 week project, 2 FTE at $75/hour
$72,000
12 week project, 2 FTE at $75/hour
User & administrator training
$72,000
6 week project, 2 FTE at $150/hour
$12,000
1 week project, 2 FTE at $150/hour
SUBTOTAL
$697,600
HARDWARE & NETWORK INFRASTRUCTURE
$94,000
NOTES
NOTES
Internal data center modifications required for DAM operations
$35,000
Improved network bandwidth - fibre channel etc.
N/A
No internally maintained infrastructure - hosted
DAM system & database servers
$25,000
4 DAM servers, 4 DB servers at $3,125 each
N/A
No hardware setup costs - integrated platform
Application & web servers
$28,000
3 App servers, 4 web servers at $4,000 each
N/A
No hardware setup costs - integrated platform
10 terabytes - fast RAID - fibre channel
N/A
No hardware setup costs - integrated platform
Dedicated storage hardware & backup robotic tape drives
Load balance, cache, fail-over hardware
SUBTOTAL
TOTAL STARTUP COSTS
OPERATIONS
$200,000
$40,000
4 LB switches at $6,000 each, 2 caches at $8,000 each
$328,000
-
$1,430,100
$114,000
YEAR 1
YEAR 2
YEAR 3
3 YR TOTAL
YEAR 1
YEAR 2
YEAR 3
3 YR TOTAL
APPLICATIONS & SOFTWARE
DAM & server software maintenance fees
$25,914
$61,700
$61,700
$149,314
N/A
N/A
N/A
N/A
$0
$0
$50,000
$50,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$144,000
$192,000
$192,000
$528,000
$25,914
$61,700
$111,700
$199,314
$144,000
$192,000
$192,000
$528,000
Program management
$102,900
$245,000
$245,000
$592,900
N/A
N/A
N/A
N/A
Software support and maintenance
$197,568
$470,400
$470,400
$1,138,368
N/A
N/A
N/A
N/A
Data integrity & metadata model maintenance
$115,248
$274,400
$274,400
$664,048
N/A
N/A
N/A
N/A
Library services - ongoing asset ingest & indexing
$123,480
$294,000
$294,000
$711,480
$123,480
$294,000
$294,000
$711,480
$30,870
$73,500
$73,500
$177,870
$27,563
$36,750
$36,750
$101,063
$570,066
$1,357,300
$1,357,300
$3,284,666
$151,043
$330,750
$330,750
$812,543
Portion of internal data center overhead & bandwidth charges
$50,400
$120,000
$120,000
$290,400
N/A
N/A
N/A
N/A
High availability network vendor bandwidth charges
$12,600
$30,000
$30,000
$72,600
N/A
N/A
N/A
N/A
Network infrastructure enhancements 7 hardware updates
$10,080
$24,000
$24,000
$58,080
N/A
N/A
N/A
N/A
$73,080
$174,000
$174,000
$421,080
$0
$0
$0
$0
$669,060
$1,593,000
$1,643,000
$3,905,060
$295,043
$522,570
$522,570
$1,340,543
Software upgrades
Outsourced service user fees
SUBTOTAL
LABOR & CONSULTING
Training and user support
SUBTOTAL
HARDWARE & NETWORK INFRASTRUCTURE
SUBTOTAL
TOTAL OPERATIONS COSTS
COSTS
$5,335,160
$1,454,543
The table above compares the total three-year costs of buying and using an Enterprise DAM solution, delivered as externally hosted client-licensed software and externally
provisioned on-demand system.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
25
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What are the total lifecycle costs of a collateral operation,
comparing costs of internally deployed services versus the on-demand delivery of
services?
COLLATERAL OPERATIONS: Software and Internally Deployed Services vs. Outsourced Collateral Services Platform
User Base: 250 creative users, 500 receivers of print ready
materials
STARTUP
Collateral Operation
YEAR 1
APPLICATIONS & SOFTWARE
MRM software licenses/Outsourced platform setup fees
Outsourced On-Demand Collateral Operation
7-month deployment
YEAR 1
3-month deployment
NOTES
$250,000
NOTES
License fees for DAM system software
$20,000
Solution setup fee - includes all configuration
Application & web server software licenses
-
License fees for web and application server software
N/A
No licensing fees - integrated platform
Database management software licenses
-
License fees for DBMS software
N/A
No licensing fees - integrated platform
Backup, archive and disaster recovery software licenses
-
License fees for backup and archive software
N/A
No licensing fees - integrated platform
Server operating system licenses
-
License fees for server operating systems
N/A
No licensing fees - integrated platform
SUBTOTAL
$250,000
$20,000
LABOR & CONSULTING
NOTES
Strategy, oversight & project management
$200,000
Planning, budgeting, tracking and project management
Internal technical staff - operational and interface development
$201,600
7 months FT, 1.5 FTE at $120/hour
NOTES
$10,000
$32,000-
Planning, budgeting, tracking and project management
1 months FT, 0.1 FTE at $200/hour
Process and workflow determination and design
$96,000
6 months, 0.3 FTE at $200/hour
-
2 months, 0.5 FTE at $200/hour
Artwork CI rule base
$48,000
2 month project, 2 FTE at $150/hour
-
Built-in solution capability
6 months, 0.3 FTE at $150/hour
-
Graphical workflow setup and media/printer database
Content and information architectures—consulting firm
$432,000
$48,000
3 week project, 2 FTE at $200/hour
$144,000
6 month project, 1 FTE at $150/hour
$72,000
3 month project, 1 FTE at $150/hour
Asset/content migration services firm
$72,000
12 week project, 2 FTE at $75/hour
$72,000
12 week project, 2 FTE at $75/hour
User and administrator training
$72,000
6 week project, 2 FTE at $150/hour
$12,000
1 week project, 2 FTE at $150/hour
Product data exchange design and implement
SUBTOTAL
-
$1,313,600
HARDWARE & NETWORK INFRASTRUCTURE
2 week project, 1 FTE at $200/hour
$198,000
NOTES
NOTES
Internal data center modifications required for DAM operations
$35,000
Improved network bandwidth - fibre channel etc.
N/A
No internally maintained infrastructure - hosted
DAM system & database servers
$25,000
4 DAM servers, 4 DB servers at $3,125 each
N/A
No hardware setup costs - integrated platform
Application & web servers
$28,000
3 App servers, 4 web servers at $4,000 each
N/A
No hardware setup costs - integrated platform
Graphical workflow servers
$28,000
3 App servers, 4 web servers, $4,000 each
N/A
No hardware setup costs - integrated platform
Load balance, cache, fail-over hardware
$40,000
4 LB switches at $6,000 each, 2 caches at $8,000 each
N/A
No hardware setup costs - integrated platform
SUBTOTAL
TOTAL STARTUP COSTS
OPERATIONS
$156,000
-
$1,719,600
$218,000
YEAR 1
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
YEAR 2
YEAR 3
3 YR TOTAL
YEAR 1
YEAR 2
YEAR 3
3 YR TOTAL
APPLICATIONS & SOFTWARE
DAM & server software maintenance fees
$25,914
$61,700
$61,700
$149,314
N/A
N/A
N/A
N/A
$0
$0
$50,000
$50,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$108,000
$144,000
$144,000
$396,000
$25,914
$61,700
$111,700
$199,314
$108,000
$144,000
$144,000
$396,000
Program management
$102,900
$245,000
$245,000
$592,900
N/A
N/A
N/A
N/A
Software support and maintenance
$197,568
$470,400
$470,400
$1,138,368
N/A
N/A
N/A
N/A
Data integrity & metadata model maintenance
$115,248
$274,400
$274,400
$664,048
N/A
N/A
N/A
N/A
-
-
-
-
$350,000
$350,000
$350,000
$1,050,0000
Ongoing template loading and maintenance
$100,000
$150,000
$150,000
$400,000
-
-
-0
-
Support for non standard manual jobs (DTP)
135,000
135,000
135,000
$405,000
-
-
-
-
30,870
73,500
73,500
$177,870
$27,563
$36,750
$36,750
$101,063
$681,586
$1,348,300
$1,48,300
$3,378,186
$377,563
$386,750
$386,750
$1,151,063
Portion of internal data center overhead & bandwidth charges
$50,400
$120,000
$120,000
$290,400
N/A
N/A
N/A
N/A
High availability network vendor bandwidth charges
$12,600
$30,000
$30,000
$72,600
N/A
N/A
N/A
N/A
Network infrastructure enhancements 7 hardware updates
$10,080
$24,000
$24,000
$58,080
N/A
N/A
N/A
N/A
$73,080
$174,000
$174,000
$421,080
$0
$0
$0
$0
$780,580 $1,584,000 $1,634,000
$3,998,580
$485,563
$530,750
$530,730
$1,547,063
Software upgrades
Outsourced service user fees
SUBTOTAL
LABOR & CONSULTING
Ongoing localization project/operational support
Training and user support
SUBTOTAL
HARDWARE & NETWORK INFRASTRUCTURE
SUBTOTAL
TOTAL OPERATION COSTS
COSTS
$5,718,180
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
26
GISTICS
$1,765,063
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
...................
...................
SECTION V
SERIES//MANAGEMENT ADVISORY
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Pan-Regional Marketing
Productivity Dividends from
Outsourced
Collateral Operations
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Pay back S c enarios f or Out s ourc ing wi t h
C ollat eral Operat ions
PAGE
28
29
30
31
32
33
34
35
36
ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION:
How does automated publishing work, a key component of a collateral factory?
How do we summarize the hidden costs of a marcom supply chain, across a life cycle model for marcom assets?
How do we analyze the hidden costs of a marcom supply chain (continued from previous page)
What comprises the case for the consolidation of marcom assets, emphasizing the use of a DAM repository?
What comprises the case for centralized localization using manual processes and a DAM repository?
What comprises the case for a pan-regional collateral operation, using automated production processes?
What comprises the case for the re-alignment of creative partners, emphasizing the cost efficiency of smaller, more agile creative boutiques?
What comprises the case for the federalized localization of collateral, harnessing the efficiencies of translation memories and streamlined workflows, and integrated work-management dashboards for all production staff?
What comprises the case for strategic sourcing of creative services, marketing content, and production, using competitive bidding through the marcom asset lifecycle?
GISTICS
27
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How does automated publishing work, a key component of a collateral
factory?
TECHNOLOGY VALUE CHAIN
Most end users will experience automated publishing as a
set of managed services accessed through an online portal.
Many of these managed services enable individual users
to produce a variety of content packages or marketing
collateral, or order custom services from marcom operations.
The figure below depicts several key elements of an
automated publishing system, a key capability of a panregional marcom supply chain.
Editorial Copy Repositories contain textual copy
vital and ready to use in all publications and marketing
communications. This copy includes articles, advertising,
copy-text, and naming conventions suitable for use on
order forms, purchase orders, and catalog indices. These
repositories contain a comprehensive set of metadata such
as keywords and XML tags.
Rich Media Repositories contain photographs, images,
logos, documents, short-form videos, presentations, and
final-form, ready-to-print collateral pieces (usually PDFs).
These repositories enable users to search large collections
and pinpoint needed items.
The creation of Rich Media Repositories entails the
cataloging of 10 to 30 unique identifiers (metadata), as well
as confirming intellectual property rights, clearances, and
reusability of each piece of media. Many firms discover
that the creation of reusable media requires well-defined
standards and procedures followed by all who create media
components.
Smart Layout Templates enable highly automated
publishing workflows and provisioning self-service
customization by marketing staffs and resellers. A library
of templates represents a significant investment of time,
knowledge, and money.
Automated publishing systems combine XML-tagged
data, reusable digital assets, and smart XML layout
templates to produce needed publications and collateral.
LOCALIZED OUTPUTS
Smart Collateral Factories speed the production of collateral
needed to ensure good market coverage.
Physical final-form content represents ready-to-print
pieces, including brochures, catalogs, direct mailers, pointof-purchase displays, and publications.
Digital final-form content represents web pages or readyto-print pieces that staff or resellers may download from
a digital inventory or order and pick up at a reprographics
center.
Ready-to-customize content represents a special class of
digital assets and emphasizes tools and systems that enable
staff or resellers to modify prebuilt publications, brochures,
catalogs, and direct mail pieces. This may range from the
simple procedure of adding logos for local resellers to more
complex procedures such as building catalog pages with
alternate copy or product images.
Reusable digital assets not only include high-resolution
source files of photos, logos, and product shots, but localized
output may also entail automatic rendering and formatting,
dynamic insertion of updated pricing and currencies, or
substitution of one language for another even within an
illustration or photograph.
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
a u t o m a t e d p u b l i s h i n g d r iv e s s e l f - s e r vic e c o l l a t e r a l f ac t o r y
PHYSICAL FINAL FORM
• Magazines &
newsletters
• Catalogs & mailers
• Posters & POP displays
L;OU MRxk
123 META
HT
4564 DATA
HTML SMs
L;OU
DATA SMs
CGI
1424
1424DATABASE
dhfk
XML
4564
4564
hjxl
hjxl
EDITORIAL COPY
REPOSITORY
• Copy text
• Metatags and hyperlinks
• Search engine optimizations
• Copyrights and permissions
1110010
010101
1010101
DIGITAL FINAL FORM
Feugait
distineo
neque nobis
singularis ne
que dolore in
letalis esse
• PDFs
• Web pages
READY TO CUSTOMIZE
• Formatted digital
templates for print
and Web pages
–Ads & mailers
–Articles with Ads
RICH MEDIA
REPOSITORY
• Logos & photos
• Translation memory
• PDFs
• Presentations
• Remote proofing
SMART
LAYOUT
TEMPLATES
• XML stylesheets
• Text properties
AUTOMATED
PUBLISHING
• Finshed print &
online collateral
• Read-to-customize
collateral
• Templated HTML
REUSABLE DIGITAL ASSETS
• Ads
• Articles
• Ancillary Content
• Presentations
• Webcasts
SmartContent.1.1bw ©2007 GISTICS Incorporated, All rights reserved.
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
28
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
How do we summarize the hidden costs of a marcom supply
chain, across a life cycle model for marcom assets?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
CollateralOperations.2.0
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
LIFE CYCLE MODEL for
MARCOM ASSETS
Baseline
Asset
Centralized
Consolidation with Collateral
Production
Manual, Centralized
No Brand
Standardization
Localization and
Production Processes
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows and
Processes
Strategic
Sourcing of
Creative, Content and
Production
ECONOMIC GAINS FROM GREATER OPERATIONAL EFFICIENCY
IDEATE comprises 10 activities—research (market and customer requirements), conceptualize (a new product launch), specify (segmentation, pricing, promotion messaging,
and revenues), quantify (attainable market size, growth rates, investments required, and probability of positive returns), validate (external research and prediction-market
results), propose, prototype (packaging, promotions and programs), plan (schedule, budget, assign personnel, and secure organizational commitments), review (meet, discuss,
interact, collaborate, rewrite, and resubmit), and authorize—that PRODUCE an approved new-product launch plan with marketing and creative briefs.
Estimated cost avoidance
$87,002
$16,297
$4,048
$148,143
$0
$433
Productivity dividend: new money
$60,901
$11,408
$2,833
$103,700
$0
$303
Time-to-market days gained
1.0
0.5
0.0
2.0
0.0
0.0
Total number of staff FTEs saved
107
20
5
182
0
1
70
13
3
118
0
0
FTEs available for new projects
Total Labor Savings
$83,783
$15,694
$3,898
$142,662
-$167
$417
Total Material Savings
$2,123
$398
$99
$3,615
-$4
$11
Total Overhead Savings
$1,096
$205
$51
$1,867
-$2
$5
CREATE comprises 8 activities—compose (preliminary assets of layouts, copy text, images, video), design (a master template: layout, style sheets, fonts, images, forms, and
metadata), license (additional media assets), notify (creative and client teams of items to review or messenger or overnight express physical artwork), retrieve ( receive items
to review), review (creative work in a meeting, teleconference, or video conference), annotate (document needed changes, comments, or instructions), and approve—that
PRODUCE a finalized design master (of an advertisement, brochure, catalog, direct mailer, flyer, package, point-of-purchase materials, or video spot) ready for distribution and
production.
Estimated cost avoidance
$369,952
$119,949
$255,043
$170,096
$20,387
$299,825
Productivity dividend: new money
$258,966
$83,964
$178,530
$119,067
$14,271
$209,877
Time-to-market days gained
4.0
1.5
3.5
1.0
0.0
5.0
Total number of staff FTEs saved
441
143
304
203
24
357
FTEs available for new projects
197
132
$345,017
$111,864
$237,853
$158,632
$19,013
$279,617
Total Material Savings
$13,096
$4,246
$9,029
$6,021
$722
$10,614
Total Overhead Savings
$11,838
$3,838
$8,161
$5,443
$652
$9,594
Total Labor Savings
286
93
16
232
MANAGE comprises 9 activities—upload (transferring large files across the Net), ingest (formatting assets for inclusion in an asset repository), catalog (assets with
descriptive metadata), store (assets in a physical storage system), clear rights (including multiple copyrights and trademarks by designated country or geographic market),
declare permissions (to use or modify an asset), track (source files and their derivatives, renditions, and compound expressions), audit (asset-activities, users, and policy
compliance), and archive (collecting and compressing all assets used in a project into a policy-managed digital package)—that result in the PUBLISHING of ready-to-download
marcom assets to a digital asset repository.
Estimated cost avoidance
$945,298
$209,959
$3,749,902
$120,139
$39,512
$15,083
Productivity dividend: new money
$661,709
$146,972
$2,624,931
$84,097
$27,658
$10,558
5.0
3.0
6.0
1.0
1.0
0.5
1,173
261
4,654
149
49
19
Time-to-market days gained
Total number of staff FTEs saved
FTEs available for new projects
763
169
3,025
97
32
12
$918,830
$204,081
$3,644,904
$116,775
$38,406
$14,660
Total Material Savings
$11,249
$2,499
$44,624
$1,430
$470
$179
Total Overhead Savings
$15,219
$3,380
$60,373
$1,934
$636
$243
Total Labor Savings
DISTRIBUTE comprises 8 activities—search (expose to search engines or user classes, search optimization, autoclassify for multi modal object-based retrievals), view (using
standard browsers, PDF readers, and special rendering engines), download (transferring large files across the Net), render (for color-matching or proofing toolsets), encrypt
(or link to a policy or rights management system), collect (copywriting, images, data, music-voiceovers, videos, design masters, fonts, forms, and project metadata), package
(placing all assets in a shopping cart or distribution package), and promote (publishing assets to shared use areas, notifying likely users, and marketing special collections by
email and internal newsletters)—that result in timely and error-free RECEIPT of marcom assets by authorized users.
Estimated cost avoidance
$350,052
$24,957
$259,039
$29,573
$99,674
$40,926
Productivity dividend: new money
$245,036
$17,470
$181,327
$20,701
$69,772
$28,648
Time-to-market days gained
4.5
0.5
4.0
0.5
2.0
1.0
Total number of staff FTEs saved
413
29
306
35
118
48
FTEs available for new projects
269
19
199
23
77
31
$323,798
$23,085
$239,611
$27,355
$92,198
$37,857
Total Material Savings
$20,233
$1,443
$14,972
$1,709
$5,761
$2,366
Total Overhead Savings
$6,021
$429
$4,456
$509
$1,714
Total Labor Savings
$704
(continued on next page)
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
29
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
How do we summarize the hidden costs of a marcom supply
chain, across a life cycle model for marcom assets? (continued from previous page)
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Baseline
Asset
Centralized
Consolidation with Collateral
Production
Manual, Centralized
No Brand
Standardization
Localization and
Production Processes
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows and
Processes
Strategic
Sourcing of
Creative, Content and
Production
ECONOMIC GAINS FROM GREATER OPERATIONAL EFFICIENCY
LOCALIZE comprises 10 activities—locate (project descriptions, schedules, and marcom assets), plan (project deliverables and needed resources), confirm
(communications strategy and messaging tactics), translate (copy writing), regionalize (imagery and design layouts), rework (copywriting to regionalized design masters),
copyfit (editing and reformatting), validate (formatting high-resolution artwork, producing finalized digital proofs, confirming color and registrations, and securing final
approvals), rework (fixing defects), and publish creating high-resolution artwork)—that result in timely and error-free PRODUCTION of printing plates or films that meet the
technical parameters of a specific lithographic, web, or digital printing press.
Estimated cost avoidance
$227,288
$339,598
$1,999,524
$185,226
$1,500,182
$1,199,830
Productivity dividend: new money
$159,102
$237,719
$1,399,667
$129,658
$1,050,128
$839,881
Time-to-market days gained
2.5
2.0
12.0
4.0
7.0
8.0
Total number of staff FTEs saved
260
388
2,286
212
1,715
1,372
FTEs available for new projects
169
252
1,486
138
1,115
892
$203,514
$304,076
$1,790,374
$165,852
$1,343,263
$1,074,327
Total Material Savings
$18,501
$27,643
$162,761
$15,077
$122,115
$97,666
Total Overhead Savings
$5,273
$7,879
$46,389
$4,297
$34,804
$27,836
Total Labor Savings
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
CONSUME comprises 7 activities—order (selecting final-form print items, specifying quantities and manner of payment), version-acquire (specifying ad hoc formatting
of files upon downloading), customerize (entailing the self-directed or automated personalization of copywritten material or graphics), decrypt-unlock (digital production
master), print-play, process royalties (if due payable), and warehouse-dispose (storing or recycling printed or manufactured materials—that result in fast, effective
CONVERGENCE of brand marketing and promotions in selected markets, creating an echo effect at points of purchase and incremental sales.
Estimated cost avoidance
Productivity dividend: new money
$120,514
$89,797
$350,032
$40,030
$119,305
$849,936
$84,360
$62,858
$245,023
$28,021
$83,514
$594,955
Time-to-market days gained
6.0
4.0
9.0
3.0
2.0
9.0
Total number of staff FTEs saved
152
113
441
50
151
1,072
FTEs available for new projects
Total Labor Savings
Total Material Savings
Total Overhead Savings
99
74
287
33
98
697
$119,044
$88,701
$345,762
$39,542
$117,850
$839,567
$0
$0
$0
$0
$0
$0
$1,470
$1,096
$4,270
$488
$1,456
$10,369
ARCHIVE comprises 7 activities—query (databases, storage or record management systems, and digital asset repositories), analyze (query data and findings), report
(formatting data and findings for presentation and quality management procedures), certify (the status of flagged or rights-controlled assets), journal (testifying the formal
status of designated assets), archive (assets for long-term, offsite storage), and destroy (shredding optical media, wiping magnetic devices, and recycling physical artwork or
films)—that result secure, confident OFFSITE STORAGE of marcom assets, project data, and related business records.
Estimated cost avoidance
$23,782
$15,362
$14,774
$35,308
$70,167
$30,241
Productivity dividend: new money
$16,647
$10,753
$10,342
$24,716
$49,117
$21,169
Time-to-market days gained
1.0
1.5
0.5
1.0
0.5
3.0
Total number of staff FTEs saved
29
19
18
43
85
37
FTEs available for new projects
19
12
12
28
55
24
$28,790
Total Labor Savings
$22,640
$14,625
$14,065
$33,613
$66,799
Total Material Savings
$143
$92
$89
$212
$421
$181
Total Overhead Savings
$999
$645
$621
$1,483
$2,947
$1,270
total economic gains FROM ALL PHASES OF COLLATERAL OPERATIONS
Estimated cost avoidance
$2,123,888
$815,918
$6,632,361
$728,516
$1,849,227
$2,436,274
Productivity dividend:
new money
$1,486,721
$571,143
$4,642,653
$509,961
$1,294,459
$1,705,392
Time-to-market days gained
24.0
13.0
35.0
12.5
12.5
26.5
Total number of staff days saved
2,575
973
8,014
874
2,142
2,905
Days available for new
projects
1,674
633
5,209
568
1,392
1,888
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
30
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
What comprises the case for the consolidation of marcom
assets, emphasizing the use of a DAM repository?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Asset
Consolidation
(DAM only)
Asset
Consolidation with
Centralized
Collateral
Production
Manual, Centralized
Localization and
Production Processes
Sourcing
Realignment
Federal
Localization
of Creative Partners
Workflows and Processes
and Localization
Strategic
Sourcing of
Creative, Content and
Production
Copy to come
COLLABORATION SUPPORT: copy to come
ASSET AND ASSET QUALITY CONTROL: copy to come
SHARE AND CONNECT: copy to come
AUTOMATION OF MANUAL WORK/PROCESS REENGINEERING: copy to come
COMPARATIVE COST MODEL
BASELINE
PROCESS-MATURITY STAGE 1
No Brand Standardization
COLLATERAL OPERATIONS
Asset Consolidation (DAM only)
PERCENTAGE
OF TOTAL
COST
PERCENTAGE
OF TOTAL
COST
TOTAL
SAVINGS
4.10%
$861
96.30%
$829
4.10%
$774
$87
96.30%
$745
Materials
2.44%
$84
$21
2.44%
$19
Overhead
$2
1.26%
$11
1.26%
$10
$1
29.80%
$6,258
31.19%
$5,888
$370
93.26%
$5,836
93.26%
$5,491
$345
Materials
3.54%
$222
3.54%
$208
$13
Overhead
3.20%
$200
3.20%
$188
$12
14.30%
$3,003
10.90%
$2,058
$945
IDEATE
LABOR
HOURS
9,316
Labor
CREATE
65,575
Labor
MANAGE
32,797
LABOR
HOURS
8,375
61,699
97.20%
$2,919
97.20%
$2,000
$919
Materials
1.19%
$36
1.19%
$25
$11
Overhead
1.61%
$48
1.61%
$33
$15
7.60%
$1,596
6.60%
$1,246
$350
Labor
DISTRIBUTE
16,588
22,473
92.50%
$1,476
92.50%
$1,153
$324
Materials
5.78%
$92
5.78%
$72
$20
Overhead
1.72%
$28
1.72%
$21
$6
37.40%
$7,854
40.40%
$7,627
$227
89.54%
$7,033
89.54%
$6,829
$204
Materials
8.14%
$639
8.14%
$621
$19
Overhead
2.32%
$182
2.32%
$177
$5
3.90%
$819
3.70%
$699
$121
Labor
LOCALIZE
79,017
Labor
CONSUME
9,090
12,950
76,730
98.78%
$809
98.78%
$690
$119
Materials
0.00%
$0
0.00%
$0
$0
Overhead
1.22%
$10
1.22%
$9
$2
2.90%
$609
3.10%
$585
$24
Labor
ANALYZE
6,514
7,752
95.20%
$580
95.20%
$557
$23
Materials
0.60%
$4
0.60%
$4
$0
Overhead
4.20%
$26
4.20%
$25
$1
100.00%
$21,000
100.00%
$18,878
$2,124
Labor
Totals
6,260
ECONOMIC GAINS FROM THIS PROCESS-MATURITY STAGE
Estimated cost avoidance ..........................................................................................................................$2,124
Productivity dividend (new money) ...........................................................................................................................$1,487
Time-to-market days gained ........................................................................................................................24 DAYS
Number of staff FTEs saved .........................................................................................................................11 FTEs
Total FTE staff available for new projects ...........................................................................................................................7 FTEs
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
31
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What comprises the case for centralized localization using
manual processes and a DAM repository?
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Asset
Consolidation
(DAM only)
Asset
Consolidation with
Manual, Centralized
Localization and
Production Processes
Centralized
Collateral
Production
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows and
Strategic
Sourcing of
Creative, Content and
Processes
Production
Higher quality, on-brand, collateral DESIGNS brought to market faster and shared more widely
COLLABORATION SUPPORT: Creative project workflows, smart folders and work-in-process queues, web workbenches for creative and production groups, auto-notification of asset users
ASSET AND ASSET QUALITY CONTROL: Standardised collection & storage of assets, multiple views of a single asset, detailed asset-use reporting, User-generated metadata (IPTC, EXIF,
XMP) and file-based metadata (Date created, color space, frame rates) ; asset version & status control, each version and asset-derivative and rendition tracked independently
SHARE AND CONNECT: Easy distribution of assets, automated metadata synchronization with ERP, authorization based access control, asset distribution tools
AUTOMATION OF MANUAL WORK/PROCESS REENGINEERING: Automated or facilitated processing of assets, one-pass tagging of new assets, auto-generation of previews, ondemand generation of versions of a single asset, auto generation of asset property metadata, auto-classification of textual content (MS Office, Adobe CS, and PDFs)
COMPARATIVE COST MODEL
COLLATERAL OPERATIONS
PROCESS-MATURITY STAGE 1
PROCESS-MATURITY STAGE 2
Asset Consolidation
(DAM only)
Asset Consolidation with Manual,
Centralized Localization and
Production Processes
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
4.10%
$774
96.30%
$745
Materials
2.44%
Overhead
IDEATE
Labor
8,375
CREATE
Labor
61,699
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
TOTAL
SAVINGS
4.20%
$758
$16
96.30%
$730
$16
$19
2.44%
$19
$0
1.26%
$10
1.26%
$10
$0
31.19%
$5,888
31.94%
$5,768
$120
8,199
93.26%
$5,491
93.26%
$5,379
$112
Materials
3.54%
$208
3.54%
$204
$4
Overhead
3.20%
$188
3.20%
$185
$4
10.90%
$2,058
10.23%
$1,848
$210
MANAGE
Labor
22,473
60,442
97.20%
$2,000
97.20%
$1,796
$204
Materials
1.19%
$25
1.19%
$22
$3
Overhead
1.61%
$33
1.61%
$30
$3
6.60%
$1,246
6.76%
$1,221
$25
DISTRIBUTE
Labor
12,950
20,180
92.50%
$1,153
92.50%
$1,129
$23
Materials
5.78%
$72
5.78%
$71
$2
Overhead
1.72%
$21
1.72%
$21
$0
40.40%
$7,627
40.34%
$7,287
$340
LOCALIZE
Labor
76,730
12,690
89.54%
$6,829
89.54%
$6,525
$304
Materials
8.14%
$621
8.14%
$593
$28
Overhead
2.32%
$177
2.32%
$169
$8
3.70%
$699
3.37%
$609
$90
CONSUME
Labor
7,752
73,313
98.78%
$690
98.78%
$601
$89
Materials
0.00%
$0
0.00%
$0
$0
Overhead
1.22%
$9
1.22%
$7
$1
3.10%
$585
3.16%
$570
$15
ANALYZE
Labor
6,260
6,756
95.20%
$557
95.20%
$543
$14
Materials
0.60%
$4
0.60%
$3
$0
Overhead
4.20%
$25
4.20%
$24
$1
100.00%
$18,878
100.00%
$18,062
$816
Total Savings
6,096
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ECONOMIC GAINS FROM previous process-maturity stage
Estimated cost avoidance ......................................................................................................................$815,918
Productivity dividend (new money) ......................................................................................................................$571,143
Time-to-market days gained ........................................................................................................................13 DAYS
Number of staff FTEs saved ..........................................................................................................................4 FTEs
Total FTE staff available for new projects ..........................................................................................................................3 FTEs
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
32
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What comprises the case for a pan-regional collateral
operation, using automated production processes?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Asset
Consolidation
(DAM only)
Asset
Consolidation with
Centralized
Collateral
Production
Manual, Centralized
Localization and
Production Processes
Production Processes
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows
Strategic
Sourcing of
Creative, Content and
and Processes
Production
More relevant, on brand LOCALIZED VERSIONS of the central marketing materials at lower costs brought to market faster
COLLABORATION SUPPORT: Supported localization process, project rooms and detailed Web-based notes, certified “trusted advisors” on call, auto-notification user in the process
ASSET AND ASSET QUALITY CONTROL: Standardised processing of assets, shared collateral-publishing templates, multi-level user group and user permissions, remote review and
approvals with visual mark-ups and annotation, project-activity reporting
SHARE AND CONNECT: Joined platform to work on, classified and searchable wiki-like collections of project notes and transactions, controlled access to projects and assets, single sign-on
AUTOMATION OF MANUAL WORK/PROCESS REENGINEERING: Automated artwork generation & application of CI, automated artwork generation (DTP robot), XML style sheets and
forms, print or publication-ready files
COMPARATIVE COST MODEL
COLLATERAL OPERATIONS
PROCESS-MATURITY STAGE 2
PROCESS-MATURITY STAGE 3
Asset Consolidation with Manual,
Centralized Localization and
Production Processes
Centralized Collateral Production
and Localization
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
4.20%
$758
96.30%
$730
Materials
2.44%
Overhead
IDEATE
8,199
Labor
CREATE
60,442
Labor
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
TOTAL
SAVINGS
6.59%
$754
$4
96.30%
$726
$4
$18
2.44%
$18
$0
1.26%
$10
1.26%
$10
$0
31.94%
$5,768
48.17%
$5,513
$255
8,155
57,769
93.26%
$5,379
93.26%
$5,142
$238
Materials
3.54%
$204
3.54%
$195
$9
Overhead
3.20%
$185
3.20%
$176
$8
10.23%
$1,848
-16.62%
-$1,902
$3,750
MANAGE
20,180
Labor
-20,774
97.20%
$1,796
97.20%
-$1,849
$3,645
Materials
1.19%
$22
1.19%
-$23
$45
Overhead
1.61%
$30
1.61%
-$30
$60
6.76%
$1,221
8.41%
$962
$259
DISTRIBUTE
12,690
Labor
9,998
92.50%
$1,129
92.50%
$890
$240
Materials
5.78%
$71
5.78%
$56
$15
Overhead
1.72%
$21
1.72%
$16
$4
40.34%
$7,287
46.20%
$5,288
$2,000
LOCALIZE
73,313
Labor
53,197
89.54%
$6,525
89.54%
$4,735
$1,790
Materials
8.14%
$593
8.14%
$430
$163
Overhead
2.32%
$169
2.32%
$123
$47
3.37%
$609
2.26%
$259
$350
CONSUME
6,756
Labor
2,871
98.78%
$601
98.78%
$256
$346
Materials
0.00%
$0
0.00%
$0
$0
Overhead
1.22%
$8
1.22%
$3
$4
3.16%
$570
4.85%
$555
$15
95.20%
0.60%
$543
$3
95.20%
0.60%
$529
$3
$14
$0
4.20%
$24
4.20%
$23
$1
100.00%
$18,062
100.00%
$11,445
$6,632
ANALYZE
Labor
Materials
6,096
Overhead
Total Savings
5,938
ECONOMIC GAINS FROM previous process-maturity stage
Estimated cost avoidance ....................................................................................................................$6,632,361
Productivity dividend (new money) ....................................................................................................................$4,642,653
Time-to-market days gained ........................................................................................................................35 DAYS
Number of staff FTEs saved ........................................................................................................................34 FTEs
Total FTE staff available for new projects ........................................................................................................................22 FTEs
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
33
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What comprises the case for the re-alignment of creative
partners, emphasizing the cost efficiency of smaller, more agile creative boutiques?
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Asset
Consolidation
(DAM only)
Asset
Consolidation with
Manual, Centralized
Localization and
Production Processes
Centralized
Collateral
Production
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows
Strategic
Sourcing of
Creative, Content and
and Processes
Production
Greater pan-regional transparency and process controls enables more precise synchronization and faster roll out of COLLATERAL CAMPAIGNS
COLLABORATION SUPPORT: Shared generation process for creative material, standardised creative briefs, generic brand guidelines, planning information and support on upstream process
ASSET AND ASSET QUALITY CONTROL: Standardized supply creative material, technical artwork standards for agencies, central execution and responsibility for image standardization,
central font and color management
SHARE AND CONNECT: Joined platform for agencies to supply to, use of local agencies, local generated creative ideas in pan-regional platform
AUTOMATION OF MANUAL WORK/PROCESS REENGINEERING: Automated intake and quality control processes of new artwork, automated check incoming artwork against standards,
automated check incoming artwork against printer requirements, automated PDF workflow, on-demand refresh of collateral layouts and versions, on-demand file transformation at output
COMPARATIVE COST MODEL
COLLATERAL OPERATIONS
PROCESS-MATURITY STAGE 3
PROCESS-MATURITY STAGE 4
Centralized Collateral Production
and Localization
Sourcing Realignment of Creative Partners
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
TOTAL
SAVINGS
5.65%
$606
$148
$0
6,552
96.30%
$583
$142
$0
6.59%
$754
Labor
8,155
96.30%
Materials
2.44%
$18
2.44%
$15
$4
Overhead
1.26%
$10
1.26%
$8
$2
$0
48.17%
$5,513
49.86%
$5,343
$170
$300
Labor
57,769
93.26%
55,987
93.26%
$4,983
$159
Materials
3.54%
$195
3.54%
$189
$6
$11
Overhead
3.20%
$176
3.20%
$171
$5
$10
-16.62%
-$1,902
-18.87%
-$2,022
$120
$15
IDEATE
CREATE
MANAGE
$726
$5,142
-20,774
97.20%
-22,086
97.20%
-$1,966
$117
Materials
1.19%
-$23
1.19%
-$24
$1
$0
Overhead
1.61%
-$30
1.61%
-$32
$2
$0
8.41%
$962
8.70%
$932
$30
$41
Labor
9,998
92.50%
9,690
92.50%
$862
$27
Materials
5.78%
$56
5.78%
$54
$2
$2
Overhead
1.72%
$16
1.72%
$16
$1
$1
46.20%
$5,288
47.61%
$5,102
$185
$1,200
Labor
53,197
89.54%
51,333
89.54%
$4,569
$166
Materials
8.14%
$430
8.14%
$415
$15
$98
Overhead
2.32%
$123
2.32%
$118
$4
$28
2.26%
$259
2.04%
$219
$40
$850
Labor
2,871
98.78%
2,427
98.78%
$216
$40
Materials
0.00%
$0
0.00%
$0
$0
$0
Overhead
1.22%
$3
1.22%
$3
$0
$10
Labor
DISTRIBUTE
LOCALIZE
CONSUME
4.85%
$555
Labor
5,938
95.20%
Materials
0.60%
Overhead
4.20%
ANALYZE
Total Savings
-$1,849
$890
$4,735
$256
4.85%
$520
$35
$30
5,560
95.20%
$495
$34
$3
0.60%
$3
$0
$0
$23
4.20%
$22
$1
$1
100.00%
$10,717
$729
100.00%
$529
$11,445
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ECONOMIC GAINS FROM previous process-maturity stage
Estimated cost avoidance .......................................................................................................................$728,516
Productivity dividend (new money) .......................................................................................................................$509,961
Time-to-market days gained .....................................................................................................................12.5 DAYS
Number of staff FTEs saved ..........................................................................................................................4 FTEs
Total FTE staff available for new projects ..........................................................................................................................2 FTEs
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
34
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What comprises the case for the federalized localization of
collateral, harnessing the efficiencies of translation memories and streamlined
workflows, and integrated work-management dashboards for all production staff?
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Asset
Consolidation
(DAM only)
Asset
Consolidation with
Centralized
Collateral
Production
Manual, Centralized
Localization and
Production Processes
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows
Strategic
Sourcing of
Creative, Content and
and Processes
Production
Central production of PRINT COLLATERAL with fewer defects and review cycles at much lower cost to a more standardized quality.
COLLABORATION SUPPORT: Pan regional team, pan-regional project status reporting, instant work load prioritization and load balancing
ASSET AND ASSET QUALITY CONTROL: Shared effectiveness information on assets and materials, shared in store collateral evaluation teams, distribution of efficiency data of items and campaigns
SHARE AND CONNECT: Electronic exchange mechanisms for data, versatile Web service framework, published SDK and APIs, Publish structured content to enterprise Web content
management systems
AUTOMATION OF MANUAL WORK/PROCESS REENGINEERING: Automation to increase productivity and consistency of data, rules-based translation of copy-text and metadata,
company specific terms reference, integration with product data management systems, integration with life cycle management systems
COMPARATIVE COST MODEL
COLLATERAL OPERATIONS
PROCESS-MATURITY STAGE 4
PROCESS-MATURITY STAGE 5
Sourcing Realignment
of Creative Partners
Federal Localization Workflows
and Processes
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
5.65%
$606
96.30%
$583
Materials
2.44%
Overhead
IDEATE
6,552
Labor
CREATE
55,987
Labor
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
TOTAL
SAVINGS
6.83%
$606
-$0
96.30%
$583
-$0
$15
2.44%
$15
-$0
1.26%
$8
1.26%
$8
-$0
49.85%
$5,343
60.02%
$5,323
$20
6,554
55,773
93.26%
$4,983
93.26%
$4,964
$18
Materials
3.54%
$189
3.54%
$189
$1
Overhead
3.20%
$171
3.20%
$170
$1
-18.87%
-$2,022
-23.25%
-$2,062
$40
MANAGE
Labor
97.20%
-$1,966
97.20%
-$2,004
$38
Materials
-22,086
1.19%
-$24
1.19%
-$25
$1
Overhead
1.61%
-$32
1.61%
-$33
$1
8.70%
$932
9.39%
$833
$100
DISTRIBUTE
9,691
Labor
-22,518
8,655
92.50%
$863
92.50%
$770
$92
Materials
5.78%
$54
5.78%
$48
$6
Overhead
1.72%
$16
1.72%
$15
$2
47.61%
$5,102
40.62%
$3,602
$1,500
LOCALIZE
51,333
Labor
36,240
89.54%
$4,569
89.54%
$3,225
$1,343
Materials
8.14%
$415
8.14%
$293
$122
Overhead
2.32%
$118
2.32%
$84
$35
2.04%
$219
1.12%
$99
$119
CONSUME
2,427
98.78%
$216
98.78%
$98
$118
Materials
Labor
0.00%
$0
0.00%
$0
$0
Overhead
1.22%
$3
1.22%
$1
$2
4.85%
$520
5.07%
$450
$70
ANALYZE
Labor
5,560
1,102
95.20%
$495
95.20%
$428
$67
Materials
0.60%
$3
0.60%
$3
$0
Overhead
4.20%
$22
4.20%
$19
$3
100.00%
$10,717
100.00%
$8,868
$1,849
Total Savings
4,809
ECONOMIC GAINS FROM previous process-maturity stage
Estimated cost avoidance ....................................................................................................................$1,849,227
Productivity dividend (new money) ....................................................................................................................$1,294,459
Time-to-market days gained .....................................................................................................................12.5 DAYS
Number of staff FTEs saved ..........................................................................................................................9 FTEs
Total FTE staff available for new projects ..........................................................................................................................6 FTEs
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
35
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
What comprises the case for strategic sourcing of creative
services, marketing content, and production, using competitive bidding through the
marcom asset lifecycle?
P RO G RESS I V E ST A G ES OF A P RO C ESS - M A TUR I TY MO D EL FOR A C OLL A TER A L O P ER A T I ON
LIFE CYCLE MODEL for
MARCOM ASSETS
Asset
Consolidation
(DAM only)
Asset
Consolidation with
Manual, Centralized
Localization and
Production Processes
Centralized
Collateral
Production
Sourcing
Realignment
of Creative Partners
and Localization
Federal
Localization
Workflows
Strategic
Sourcing of
Creative, content and
and Processes
Production
Higher quality, on-brand, collateral DESIGNS brought to market faster and shared more widely
COLLABORATION SUPPORT: Pan-regional sourcing process, pan-regional networked supply chain, pan-regional planning & forecast, pan-regional capacity forecast
ASSET AND ASSET QUALITY CONTROL: Standardised materials and paper types, central paper buying, central materials sourcing, central supplier accreditation, digital print standards
SHARE AND CONNECT: Shared network of suppliers , actively managed print supply network including local digital print suppliers, active bidding procedure for each print item within supplier network ,
channel partner access
AUTOMATION OF MANUAL WORK/PROCESS REENGINEERING: Automation to increase productivity and consistency of ordering, integrated “my price” quotation service for print and
advertising, integrated budget management, channel partner bonus schemes
COMPARATIVE COST MODEL
COLLATERAL OPERATIONS
PROCESS-MATURITY STAGE 5
PROCESS-MATURITY STAGE 6
Federal Localization Workflows
and Processes
Strategic Sourcing of
Creative, Content and Production
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
6.83%
$606
96.30%
$583
Materials
2.44%
Overhead
IDEATE
6,554
Labor
CREATE
55,773
Labor
LABOR
HOURS
PERCENTAGE
OF TOTAL
COST
TOTAL
SAVINGS
9.41%
$605
$0
96.30%
$583
$0
$15
2.44%
$15
$0
1.26%
$8
1.26%
$7
$0
60.02%
$5,323
78.09%
$5,023
$300
6,549
52,632
93.26%
$4,964
93.26%
$4,684
$280
Materials
3.54%
$189
3.54%
$178
$11
Overhead
3.20%
$170
3.20%
$161
$9
-23.25%
-$2,062
-32.29%
-$2,077
$15
MANAGE
-22,518
Labor
-22,683
97.20%
-$2,004
97.20%
-$2,019
$15
Materials
1.19%
-$25
1.19%
-$25
$0
Overhead
1.61%
-$33
1.61%
-$33
$0
9.39%
$833
12.31%
$792
$41
DISTRIBUTE
8,655
Labor
8,229
92.50%
$770
92.50%
$732
$38
Materials
5.78%
$48
5.78%
$46
$2
Overhead
1.72%
$15
1.72%
$14
$1
40.62%
$3,602
37.35%
$2,402
$1,200
LOCALIZE
36,240
Labor
24,169
89.54%
$3,225
89.54%
$2,151
$1,074
Materials
8.14%
$293
8.14%
$195
$98
Overhead
2.32%
$84
2.32%
$56
$28
1.12%
$99
-11.67%
-$751
$850
$840
CONSUME
1,102
Labor
-8,331
98.78%
$98
98.78%
-$742
Materials
0.00%
$0
0.00%
$0
$0
Overhead
1.22%
$1
1.22%
-$9
$10
5.07%
$450
6.52%
$419
$30
95.20%
$428
95.20%
$399
$29
Materials
0.60%
$3
0.60%
$2
$0
Overhead
4.20%
$22
4.20%
$19
$1
100%
$8,868
100%
$6,432
$2,436
ANALYZE
Labor
4,809
Total Savings
4,486
$65,051
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ECONOMIC GAINS FROM previous process-maturity stage
Estimated cost avoidance ...................................................................................................................$2,436,274
Productivity dividend (new money) ....................................................................................................................$1,705,392
Time-to-market days gained .....................................................................................................................26.5 DAYS
Number of staff FTEs saved ........................................................................................................................12 FTEs
Total FTE staff available for new projects ..........................................................................................................................8 FTEs
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
36
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
...................
...................
SECTION VI
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Pan-Regional Marketing
Productivity Dividends from
Outsourced
Collateral Operations
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
A c t iv it y - A ut om at ion C ells
PAGE
SERIES//MANAGEMENT ADVISORY
38
39
40
41
42
43
44
45
46
ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION:
How can an online collateral platform create localized design-
templates, reducing workflow cycle time of five hours to 1.5 hours?
How can an online collateral platform develop XML design templates for automated publishing workflows, reducing cycle time of thirteen days to zero?
How can an online collateral platform translate English master copy-text to local languages, reducing cycle time of three days to one day?
How can an online collateral platform finalize translated copy-text, reducing cycle time of five days to six hours?
How can an online collateral platform facilitate the review and approval of localized final-form layouts, reducing cycle time of three weeks to four days?
How can an online collateral platform update pricing or technical data of a localized published layout—reducing cycle times of two weeks to two days?
How can an online collateral platform speed on-demand local digital-press production of a flyer, reducing cycle time of five days to one day?
How can an online collateral platform speed on-demand production, review, and approval of local-market employment ads, reducing cycle time of one week to one day?
What comprises the differentiated value proposition for outsourced pan-regional collateral operations of Adnovate?
GISTICS
37
How can an online collateral platform create localized
design-templates, reducing workflow cycle time of five hours to 1.5 hours?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
ACTIVITY: CREATE LOCALIZED DESIGN-TEMPLATE, REDUCING WORKFLOW CYCLE TIME OF 5 HOURS TO 1.5 HOURS.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate Confirm
Plan
translate
Confirm
Translateregionalize
Regionalize
Rework
Copyfit
Validate
Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Process royalties
Warehouse-dispose
SUBORDINATE ACTIVITIES
Locate launch-materials
package
Distribute files to localization
team
Query
Analyze
Certify
Destroy
60
480
30
Conduct team review and markup of templates, style sheets, and imagery, using
in-person meetings, phone conferences, email threads, or web conferencing.
Service capability of collateral operations includes the centralized collection of
audio and visual notes and text changes, reducing errors or omissions.
Develop and standardize style sheets for all collateral layouts. Partially not
applicable; service capability of collateral operations automatically updates
tagged XML copy-text and XML style sheets in asset repository, enabling direct
viewing of copy within layout designs.
Update or design new layouts
and style sheets
180
0
Approve changes to design
master and assets
300
30
1620
166
3.0
0.3
SUBTOTAL (minutes)
CYCLE TIME
Days required to complete
LABOR COSTS (dollars)
Group approves updated design layout, templates, style sheets, imagery, and
formats, including vendor charges. Service capability of collateral operations
provides real-time status reports, task assignments, and financial controls.
Time required to create localized design-template.
Per complete cycle
Difference based on portion of work completed by different staff
Global Headquarter Staff
$10,204.72
$1,044.66 $200 per hour fully-burdened rate
Global Agency Staff
$16,072.44
$1,645.34 $180 per hour billing rate
EMEA Headquarter Staff
$9,184.25
$940.20 $180 per hour fully-burdened rate
EMEA Agency Staff
$10,714.96
$1,096.89 $120 per hour billing rate
Local Marketing Staff
$35,078.74
$3,591.02 $100 per hour fully-burdened rate
Local Advertising Staff
$48,472.44
$4,962.14 $80 per hour billing rate
Translation Staff
$10,332.28
$1,057.72 $60 per hour billing rate
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
$20,008.55
$2,048.28 Represents proportional hourly rate of team involved
$140,060
$14,338 Per complete cycle
MANUAL AUTOMATED NOTES
Physical media (CD/DVD)
$116.30
$11.91 Cost of CDs burned to support process
Freight, courier, express mail
$1,318.06
$134.93 Cost of mailings required to complete process
Agency billing (ship, process)
$2,907.49
$297.64 Cost of mailings by agency based on standard service fees
TOTAL MATERIAL COSTS
ANNUAL COSTS ($)
Annual labor costs
Annual material costs
$4,341.86
$444.48 Per complete cycle
MANUAL
AUTOMATED NOTES
$140,060
$14,338 Fully-burdened labor costs
$4,342
$3,109
$147,511
SAVINGS
$445 Total material costs associated with process
$318 Total overhead costs associated with process
$15,101 Per complete cycle
PERCENT NOTES
$125,722
89.76% Percent reduction in costs, automated vs. manual
$3,897
89.76% Percent reduction in costs, automated vs. manual
$129,619
VALUE
EFFECT
2.8 Days gained by automating process
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
5
Deliver files to review team via email; this may entail email-attached files to
staff and/or external agencies, requiring assistance from associates and several
repetitions due to the size of attached files and inconsistent Internet services. All
assets and related material stored online in a collateral operations; no additional
times needed for distribution. Ingestion of design masters automatically creates
and stores XML style sheets and tagged XML copy-text in asset repository.
Recommend changes to
designs and copy
Cycle time
38
29
72
TOTAL ECONOMIC GAIN
INTANGIBLE GAINS
Archive
360
Locate design master(s), copy-text documents, and creative brief presentation,
accessing email attachments, shared drives, FTPs, extranets, and digital asset
repositories and retrieving fonts, templates, style sheets, forms, media assets. All
assets and related material stored online in a collateral operations.
240
Total material cost savings
Journal
Manual
Clarify positioning/messaging
Total labor savings
Report
NOTES
Description of activities: italics indicates automation-assisted activities of a panAutomated
regional collateral operation.
Discuss localization requirements and refinements using formatted PDFs of
design masters and copies of creative-brief presentation, using teleconferences
or web conferencing workspaces; typically entails two discussions or meeting.
Service capability of collateral operations includes instant workspaces that
capture audio and visual notes and text changes, reducing need for recap
meetings for missing or delayed personnel.
Annual overhead costs
TOTAL ANNUAL COSTS
ECONOMIC GAINS
ARCHIVE
LABOR/MINUTES
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
CollateralOperations.2.0
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
How can an online collateral platform develop XML design
templates for automated publishing workflows, reducing cycle time of thirteen days
to zero?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ACTIVITY: DEVELOP XML-DESIGN TEMPLATES FOR AUTOMATED PUBLISHING WORKFLOWS, REDUCING CYCLE TIME OF 13 DAYS TO ZERO.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan Confirm
Confirm
translate
Translate
regionalize
Regionalize
Rework
Copyfit
Validate
Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Process royalties
Warehouse-dispose
ARCHIVE
SUBORDINATE ACTIVITIES
LABOR/MINUTES
NOTES
Manual
Description of activities: italics indicates automation-assisted
activities of a pan-regional collateral operation.
Automated
Update style sheets
180
0
Graphic-design specialist reviews design change-recommendations,
updating character, paragraph, object, and form style sheets, page
master(s), document information (metadata), font families, swatches,
visual vocabularies, and color profiles. Service capability of collateral
operations enables direct updates to XML style sheets.
Program XML style sheets
and forms
900
0
XML programmer edits raw XML file, updating markup language using
special editing tools. Not applicable to collateral operations.
Debug XML style sheets and
forms
1200
0
XML programmer and QA staffer debug XML code, validating output
using special editing tools and hard-copy prints. Not applicable to
collateral operations.
Review and approve outputs
240
0
Input placeholder fill-text, distill PDF, review defects, rework
underlying XML code until correct. Not applicable to collateral
operations.
Transition XML style sheets
120
0
Move files and data schemas from develop platform and QA
environment to publishing platform. Not applicable to collateral
operations.
2520
0
Time required to develop XML-design templates.
5
0
SUBTOTAL (minutes)
CYCLE TIME
Days required to complete
LABOR COSTS (dollars)
Global Headquarter Staff
Global Agency Staff
Per complete cycle
Difference based on portion of work completed by different staff
$7,937.01
$- $200 per hour fully-burdened rate
$10,714.96
$- $180 per hour billing rate
EMEA Headquarter Staff
$7,143.31
$- $180 per hour fully-burdened rate
EMEA Agency Staff
$7,143.31
$- $120 per hour billing rate
Local Marketing Staff
$29,763.78
$- $100 per hour fully-burdened rate
Local Advertising Staff
$31,748.03
$- $80 per hour billing rate
$-
$- $60 per hour billing rate
Translation Staff
Blended labor rate
$13,492.91
$- Represents proportional hourly rate of team involved
TOTAL LABOR COSTS
$94,450
MATERIAL COSTS ($)
MANUAL AUTOMATED NOTES
Physical media (CD/DVD)
$- Per complete cycle
$78.43
Freight, courier, express mail
$- Cost of CDs burned to support process
$888.85
$- Cost of mailings required to complete process
Agency billing (ship, process)
$1,960.69
$- Cost of mailings by agency based on standard service fees
TOTAL MATERIAL COSTS
$2,927.96
$- Per complete cycle
ANNUAL COSTS ($)
MANUAL AUTOMATED NOTES
Annual labor costs
$94,450
Annual material costs
$2,928
Annual overhead costs
$2,097
TOTAL ANNUAL COSTS
$99,475
$- Fully-burdened labor costs
$- Total material costs associated with process
$- Total overhead costs associated with process
$- Per complete cycle
ECONOMIC GAINS
SAVINGS
Total labor savings
$94,450
100.00% Percent reduction in costs, automated vs. manual
$2,928
100.00% Percent reduction in costs, automated vs. manual
Total material cost savings
TOTAL ECONOMIC GAIN
$97,378
INTANGIBLE GAINS
Cycle time
PERCENT NOTES
VALUE
48
EFFECT
Days gained by automating process
Query
Analyze
Report
Certify
Journal
Archive
Destroy
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
39
How can an online collateral platform translate English master
copy-text to local languages, reducing cycle time of three days to one day?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
ACTIVITY: TRANSLATE ENGLISH MASTER COPY-TEXT TO LOCAL LANGUAGE, REDUCING CYCLE TIME OF 3 DAYS TO 1 DAY.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
SUBORDINATE ACTIVITIES
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan
Confirm
translate
Translate
Regionalize
regionalize
Rework
rework
Copyfit
Validate
Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Confirm assignment to
translation team
Process royalties
Warehouse-dispose
ARCHIVE
Query
Discuss localization options
and treatments
360
6
Assign copy-text master to local copywriter, confirming receipt of
creative brief, PDF design master, English text master, and scheduling
commitments. Partially not applicable; collateral operation notifies
affected users and update pan-regional production schedules.
240
Manage detail-producing discussions among headquarter marketing
manager(s), marcom specialists, and translators, emphasizing
localization options for copy and images. Service capability of
collateral operations includes instant workspaces that capture audio
and visual notes and text changes, reducing need for recap meetings
for missing or delayed personnel.
12
Write initial draft of localized
text
270
180
Development of sticky-notes, track changes, and color highlights in
copy master. Translation memories automatically find and replace
standard-rule words and phrases, eliminating 70 percent of labor
required for initial draft.
30
3
Documents are distributed to headquarters’ marcom specialist
and country marketing manager, agency copywriter. Partially not
applicable; service capability of collateral operations automatically
updates tagged XML copy-text and XML style sheets in asset
repository.
1080
441
Time required to translate English master copy-text.
2.0
0.8
Per complete cycle
Distribute initial draft for
comments
SUBTOTAL (minutes)
CYCLE TIME
Days required to complete
LABOR COSTS (dollars)
Global Headquarter Staff
Global Agency Staff
Difference based on portion of work completed by different staff
$4,453.61
$13,360.82
EMEA Headquarter Staff
$4,008.25
EMEA Agency Staff
$8,907.22
$1,818.56 $200 per hour fully-burdened rate
$5,455.67 $180 per hour billing rate
$1,636.70 $180 per hour fully-burdened rate
$3,637.11 $120 per hour billing rate
Local Marketing Staff
$29,690.72
$12,123.71 $100 per hour fully-burdened rate
Local Advertising Staff
$30,878.35
$12,608.66 $80 per hour billing rate
$6,012.37
$2,455.05 $60 per hour billing rate
Translation Staff
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
Physical media (CD/DVD)
$13,901.62
$97,311
$5,676.49 Represents proportional hourly rate of team involved
$39,735 Per complete cycle
MANUAL AUTOMATED NOTES
$80.80
$32.99 Cost of CDs burned to support process
Freight, courier, express mail
$915.77
Agency billing (ship, process)
$2,020.08
TOTAL MATERIAL COSTS
ANNUAL COSTS ($)
$3,016.65
$1,231.80 Per complete cycle
MANUAL AUTOMATED NOTES
Annual labor costs
$97,311
Annual material costs
$3,017
Annual overhead costs
$2,160
TOTAL ANNUAL COSTS
$102,488
$373.94 Cost of mailings required to complete process
$824.87 Cost of mailings by agency based on standard service fees
$39,736 Fully-burdened labor costs
$1,232 Total material costs associated with process
$882 Total overhead costs associated with process
$41,849 Per complete cycle
ECONOMIC GAINS
SAVINGS
Total labor savings
$57,576
59.17% Percent reduction in costs, automated vs. manual
$1,785
59.17% Percent reduction in costs, automated vs. manual
Cycle time
Journal
240
180
INTANGIBLE GAINS
Certify
Manual Automated Description of activities: italics indicates automation-assisted
activities of a pan-regional collateral operation.
Requires detailed review and acceptance/decline of tracked
changes in various documents, referencing creative briefs, previous
work product, and media assets. Tracked changes of various
documents not applicable; service capability of collateral operations
automatically updates both XML style sheets and tagged XML copy-
TOTAL ECONOMIC GAIN
Report
NOTES
Update English copy-text
master document
Total material cost savings
Analyze
LABOR/MINUTES
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
PERCENT NOTES
$59,361
VALUE
EFFECT
1.2 Days gained by automating process
Archive
Destroy
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
40
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
How can an online collateral platform finalize translated
copy-text, reducing cycle time of five days to six hours?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ACTIVITY: FINALIZE TRANSLATED COPY-TEXT, REDUCING CYCLE TIME OF 5 DAYS TO 6 HOURS.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan
Confirm
translate
Translate
regionalize
Regionalize
Rework rework
Copyfit
Validate
Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
SUBORDINATE ACTIVITIES
Compile comments and
corrections
Incorporate copy changes
Translate all collateral
copy/text
150
0
Collect all corrected copy-text files from localization team, creating
a unified master-text document. Partially not applicable; service
capability of collateral operations automatically updates tagged
XML copy-text and XML style sheets in asset repository, enabling
direct viewing of copy within layout designs.
60
45
Review approved recommendations and changes, updating copytext file. Not applicable; collateral operations automatically updates
tagged XML copy-text and XML style sheets in asset repository.
540
138
Translate all text-copy to support target markets, creating side-byside comparisons of English master, preliminary translation, and
finalized. Collateral operations automatically updates tagged XML
copy-text and XML style sheets in asset repository, enabling direct
viewing of copy within layout designs.
Spell check and proofread all translated copy-text, fixing typos,
context errors, and technical or pricing data errors. Collateral
operations accesses pricing database and ERP systems of clients,
automatically updating content and enabling direct viewing of copy
within layout designs.
108
Approve edited text-copy
120
12
1050
303
2.0
0.6
SUBTOTAL (minutes)
Sign-off by manager(s) on all translated copy/text (final version).
Service capability of collateral operations provides real-time
project status-tracking and direct viewing of all versions of text,
including work in progress.
Time required to finalize translated copy-text.
CYCLE TIME
Days required to complete
LABOR COSTS (dollars)
$-
Global Agency Staff
$-
EMEA Headquarter Staff
Per complete cycle
Difference based on portion of work completed by different staff
Global Headquarter Staff
$5,361.70
$- $200 per hour fully-burdened rate
$- $180 per hour billing rate
$1,547.23 $180 per hour fully-burdened rate
EMEA Agency Staff
$15,638.30
$4,512.77 $120 per hour billing rate
Local Marketing Staff
$29,787.23
$8,595.74 $100 per hour fully-burdened rate
Local Advertising Staff
$30,978.72
$8,939.57 $80 per hour billing rate
$6,031.91
$1,740.64 $60 per hour billing rate
Translation Staff
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
Physical media (CD/DVD)
Freight, courier, express mail
$12,542.55
$87,798
$3,619.42 Represents proportional hourly rate of team involved
$25,336 Per complete cycle
MANUAL AUTOMATED NOTES
$72.90
$826.24
$21.04 Cost of CDs burned to support process
$238.43 Cost of mailings required to complete process
Agency billing (ship, process)
$1,822.59
$525.95 Cost of mailings by agency based on standard service fees
TOTAL MATERIAL COSTS
$2,721.73
$785.41 Per complete cycle
ANNUAL COSTS ($)
Annual labor costs
MANUAL AUTOMATED NOTES
$87,798
Annual material costs
$2,722
Annual overhead costs
$1,949
TOTAL ANNUAL COSTS
$92,469
$25,336 Fully-burdened labor costs
$785 Total material costs associated with process
$563 Total overhead costs associated with process
$26,684 Per complete cycle
ECONOMIC GAINS
SAVINGS
Total labor savings
$62,462
71.14% Percent reduction in costs, automated vs. manual
$1,936
71.14% Percent reduction in costs, automated vs. manual
Total material cost savings
TOTAL ECONOMIC GAIN
Analyze
of activities: italics indicates automation-assisted
Manual Automated Description
activities of a pan-regional collateral operation.
180
Warehouse-dispose
Query
NOTES
Spell check and proofread
files
Process royalties
ARCHIVE
LABOR/MINUTES
INTANGIBLE GAINS
Cycle time
PERCENT NOTES
$64,398
VALUE EFFECT
1.4 Days gained by automating process
Report
Certify
Journal
Archive
Destroy
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
41
How can an online collateral platform facilitate the review
and approval of localized final-form layouts, reducing cycle time of three weeks to
four days?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
ACTIVITY: REVIEW AND APPROVE LOCALIZED FINAL-FORM LAYOUTS, REDUCING CYCLE TIME OF 3 WEEKS TO 4 DAYS.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
SUBORDINATE ACTIVITIES
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan
Confirm
Translate
Regionalize
Rework Copyfit
Copyfit
Validate
Validate
Publish Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Layout localized brochure
Process royalties
Warehouse-dispose
ARCHIVE
Graphic designers layouts, copy-fits, and distills localized text and
imagery, creating a formatted PDF ready for review. Service capability
of collateral operations provides real-time project status-tracking and
direct viewing of all versions of text, including work in progress.
Gather content for localization
package
30
0
Retrieve creative brief and localization notes, localized version;
compress files for digital distribution via FTP or extranet file
transport. Not applicable; already in central repository.
Distribute package for review
10
1
Collect, package and distribute material for review (creative brief,
localization notes, English master brochure, localized PDF). Not
applicable; already in central repository.
Review and approve localized
designs
Produce finalized local-market
brochure
SUBTOTAL (minutes)
1080
360
Sign-off by manager(s) of all localized master designs entail
three interactions; manager(s) sign copies of final master designs
(templates, style sheets, formats, fonts) and print-ready PDF
file(s). Service capability of collateral operations includes instant
workspaces that capture audio and visual notes and text changes,
reducing need for recap meetings for missing or delayed personnel.
240
60
Gather comments and final instructions, implement design master
and document master, distill into PDF, and post in completed job
folder. Partially not applicable; service capability of collateral
operations includes instant workspaces that associates audio and
visual notes and changes to production master, reducing need for
recap meetings for missing personnel or multi-party approvals.
1540
427
Time required to review and approve localized final-form layouts.
2.9
0.8
Per complete cycle
CYCLE TIME
Days required to complete
LABOR COSTS (dollars)
Global Headquarter Staff
Global Agency Staff
Difference based on portion of work completed by different staff
$9,195.22
$12,413.55
EMEA Headquarter Staff
$8,275.70
EMEA Agency Staff
$8,275.70
$2,546.87 $200 per hour fully-burdened rate
$3,438.27 $180 per hour billing rate
$2,292.18 $180 per hour fully-burdened rate
$2,292.18 $120 per hour billing rate
Local Marketing Staff
$36,780.90
$10,187.46 $100 per hour fully-burdened rate
Local Advertising Staff
$42,298.03
$11,715.58 $80 per hour billing rate
Translation Staff
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
Physical media (CD/DVD)
$$16,748.44
$97.35
$1,103.30
$2,433.76
TOTAL MATERIAL COSTS
$3,634.41
ANNUAL COSTS ($)
$305.59 Cost of mailings required to complete process
$674.01 Cost of mailings by agency based on standard service fees
$1,006.65 Per complete cycle
MANUAL AUTOMATED
$3,634
Annual overhead costs
$2,603
NOTES
$26.96 Cost of CDs burned to support process
$117,239
Annual material costs
TOTAL ANNUAL COSTS
$32,473 Per complete cycle
MANUAL AUTOMATED
Agency billing (ship, process)
Annual labor costs
$- $60 per hour billing rate
$4,638.93 Represents proportional hourly rate of team involved
$117,239
Freight, courier, express mail
NOTES
$32,473 Fully-burdened labor costs
$1,007 Total material costs associated with process
$721 Total overhead costs associated with process
$123,476
$34,200 Per complete cycle
ECONOMIC GAINS
SAVINGS
Total labor savings
$84,767
72.30% Percent reduction in costs, automated vs. manual
$2,628
72.30% Percent reduction in costs, automated vs. manual
Analyze
TOTAL ECONOMIC GAIN
INTANGIBLE GAINS
Cycle time
Journal
MANUAL AUTOMATED Description of activities: italics indicates automation-assisted
activities of a pan-regional collateral operation.
5
Query
Certify
NOTES
180
Total material cost savings
Report
LABOR/MINUTES
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
PERCENT
NOTES
$87,394
VALUE
EFFECT
2.1 Days gained by automating process
Archive
Destroy
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
42
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
How can an online collateral platform update pricing or
technical data of a localized published layout—reducing cycle times of two weeks
to two days?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ACTIVITY: UPDATE PRICING OR TECHNICAL DATA OF A LOCALIZED PUBLISHED LAYOUT—REDUCING CYCLE TIMES OF 2 WEEKS TO 2 DAYS.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan
Confirm
Translate
Regionalize
ReworkCopyfit
Copyfit Validate
Validate
Publish
Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Process royalties
Warehouse-dispose
ARCHIVE
Query
Analyze
Report
Certify
SUBORDINATE ACTIVITIES
LABOR/MINUTES
Manual
NOTES
Automated
Description of activities: italics indicates automation-assisted
activities of a pan-regional collateral operation.
Notify collateral operations
of update
60
10
Email or fax received notifying collateral team of affected items
(brochure, ad, flyer, etc.) Partially not applicable; collateral operations
accesses pricing database and ERP systems of clients, automatically
updating content and enabling direct viewing of updated copy within
layout designs.
Retrieve source files of
affected items
60
0
Search and retrieve all source files (from agency, local market office,
email inbox, printer). Not applicable; all assets and versions in asset
repository.
Update source files
84
10
Change data items, reflow text, rebuild tables, distill PDF, and validate
file data and properties. Partially not applicable; collateral operations
automatically update all-related documents and tables, enabling
direct viewing of updated copy within layout designs.
Send to pre-press operations
20
0
Gather source assets (photos, approved text-copy, templates, fonts,
color profiles, etc.) and send to pre-press operations to RIP printerspecific PDF and digital proof(s). Partially not applicable; collateral
operations automatically produces printer-specific versions layouts.
72
15
Receive color-corrected digital proof, review and approve with
comments; printer relinks and renders high-resolution images and
graphics, producing films, digital proofs or printing plates. Partially
not applicable; collateral operations provisions remote digital proofs,
enabling 24-hour access for review and approvals.
SUBTOTAL (minutes)
296
35
Time required to update pricing/technical data of localized published
layout.
CYCLE TIME
Days required to complete
0.6
0.1
Per complete cycle
Approve color-corrected
digital proof
LABOR COSTS (dollars)
Difference based on portion of work completed by different staff
Global Headquarter Staff
$-
Global Agency Staff
EMEA Headquarter Staff
EMEA Agency Staff
$$1,441.95
$961.30
Local Marketing Staff
$11,014.86
Local Advertising Staff
$7,209.73
Translation Staff
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
Physical media (CD/DVD)
$480.65
$3,015.50
$21,109
MANUAL
$17.53
$- $200 per hour fully-burdened rate
$- $180 per hour billing rate
$171.63 $180 per hour fully-burdened rate
$114.42 $120 per hour billing rate
$1,311.08 $100 per hour fully-burdened rate
$858.16 $80 per hour billing rate
$57.21 $60 per hour billing rate
$358.93 Represents proportional hourly rate of team involved
$2,513 Per complete cycle
AUTOMATED
NOTES
$2.09 Cost of CDs burned to support process
Freight, courier, express mail
$198.65
$23.64 Cost of mailings required to complete process
Agency billing (ship, process)
$438.19
$52.16 Cost of mailings by agency based on standard service fees
TOTAL MATERIAL COSTS
ANNUAL COSTS ($)
$654.36
MANUAL
Annual labor costs
$21,109
Annual material costs
$654
Annual overhead costs
$469
TOTAL ANNUAL COSTS
$22,231
$77.89 Per complete cycle
AUTOMATED NOTES
$2,513 Fully-burdened labor costs
$78 Total material costs associated with process
$56 Total overhead costs associated with process
$2,646 Per complete cycle
ECONOMIC GAINS
SAVINGS
Total labor savings
$18,596
88.10% Percent reduction in costs, automated vs. manual
$576
88.10% Percent reduction in costs, automated vs. manual
Total material cost savings
TOTAL ECONOMIC GAIN
INTANGIBLE GAINS
PERCENT
NOTES
$19,172
VALUE
Cycle time
EFFECT
0.5 Days gained by automating process
Journal
Archive
Destroy
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SERIE S//MANAGEMENT ADVISORY
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS
43
How can an online collateral platform speed on-demand
local digital-press production of a flyer, reducing cycle time of five days to
one day?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
ACTIVITY: ON-DEMAND LOCAL DIGITAL-PRESS PRODUCTION OF A FLYER, REDUCING CYCLE TIME OF 5 DAYS TO 1 DAY.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan
Confirm
Translate
Regionalize
Rework
Copyfit Validate
Validaterework
Publish
CONSUMEPublish
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Process royalties
Warehouse-dispose
ARCHIVE
SUBORDINATE ACTIVITIES
Manual Automated
Description of activities: italics indicates automation-assisted
activities of a pan-regional collateral operation.
Client adds PDF notes
132
79
Check and approve changes to
all files
120
72
Sign-off on layout and all changes by manager(s). Instant workspaces
that capture audio and visual notes and text changes reducing cycle
time for approvals.
108
65
Update layout, check and correct based on review and modifications
Update layout, check copyfitting and imagery replacements and
make corrections. Partially not applicable; collateral operations
automatically update all-related documents and tables, enabling
direct viewing of updated copy within layout designs.
60
5
660
528
Printer receives approvals and produces collateral items according to
plan, production notes, and budget. Partially not applicable; collateral
operations automatically notifies printer of approved work, reducing
hand-off confirmations and workflows.
1080
749
Time required to complete local digital-press production.
2.0
1.4
Per complete cycle
Update layout, check and correct
Distribute files for approval
Print collateral to specifications
SUBTOTAL (minutes)
Deliver localized source elements to manager(s) for review of versions
Deliver package & transfer elements to reviewers—generate review
derivatives (PDF). Not applicable; already online.
CYCLE TIME
Days required to complete
LABOR COSTS (dollars)
Global Headquarter Staff
Global Agency Staff
EMEA Headquarter Staff
EMEA Agency Staff
Difference based on portion of work completed by different staff
$$$22,870.59
$-
$- $200 per hour fully-burdened rate
$- $180 per hour billing rate
$15,856.94 $180 per hour fully-burdened rate
$- $120 per hour billing rate
Local Marketing Staff
$25,411.76
$17,618.82 $100 per hour fully-burdened rate
Local Advertising Staff
$45,741.18
$31,713.88 $80 per hour billing rate
Translation Staff
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
Physical media (CD/DVD)
$$13,431.93
$94,024
$- $60 per hour billing rate
$9,312.81 Represents proportional hourly rate of team involved
$65,190 Per complete cycle
MANUAL AUTOMATED
$78.07
NOTES
$54.13 Cost of CDs burned to support process
Freight, courier, express mail
$884.83
Agency billing (ship, process)
$1,951.83
$1,353.27 Cost of mailings by agency based on standard service fees
TOTAL MATERIAL COSTS
$2,914.73
$2,020.88 Per complete cycle
ANNUAL COSTS ($)
Annual labor costs
$613.48 Cost of mailings required to complete process
MANUAL AUTOMATED
$94,024
Annual material costs
$2,915
Annual overhead costs
$2,087
TOTAL ANNUAL COSTS
$99,026
NOTES
$65,190 Fully-burdened labor costs
$2,021 Total material costs associated with process
$1,447 Total overhead costs associated with process
$68,658 Per complete cycle
ECONOMIC GAINS
SAVINGS
Total labor savings
$28,834
30.67% Percent reduction in costs, automated vs. manual
$894
30.67% Percent reduction in costs, automated vs. manual
Total material cost savings
TOTAL ECONOMIC GAIN
Cycle time
Analyze
NOTES
Create draft notes including instructing to support production,
specifying changes of content, images, etc. Partially not applicable;
service capability of collateral operations includes instant workspaces
that capture audio and visual notes and text changes, reducing need
for recap meetings for missing personnel or multi-party approvals.
INTANGIBLE GAINS
Query
LABOR/MINUTES
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
PERCENT
NOTES
$29,728
VALUE
EFFECT
0.6 Days gained by automating process
Report
Certify
Journal
Archive
Destroy
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
44
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
How can an online collateral platform speed on-demand
production, review, and approval of local-market employment ads, reducing cycle
time of one week to one day?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
ACTIVITY: ON-DEMAND PRODUCTION, REVIEW, AND APPROVAL OF LOCAL-MARKET EMPLOYMENT ADS, REDUCING CYCLE TIME OF 1 WEEK TO 1 DAY.
LABOR TASKS (minutes)
MANAGEMENT OF MARCOM
ASSETS REQUIRES AN ACTIVITYBASED MODEL
IDEATE
Research
Conceptualize
Specify
Quantify
Validate
Propose
Plan
Review
Rewrite
Authorize
CREATE
Compose
Design
License
Notify
Retrieve
Review
Annotate
Approve
MANAGE
Upload
Ingest
Catalog
Store
Clear rights
Declare
Track
Audit
Archive
DISTRIBUTE
Search
View
Download
Render
Encrypt
Collect
Package
Promote
LOCALIZE
Locate
Plan
Confirm
Translate
Regionalize
Validate
Rework
Copyfit
rework
Validate
Publish
Publish
CONSUME
Order
Version-acquire
Customerize
Decrypt-unlock
Print-play
Process royalties
Warehouse-dispose
SUBORDINATE ACTIVITIES
LABOR/MINUTES
NOTES
Manual Automated
Description of activities: italics indicates automation-assisted
activities of a pan-regional collateral operation.
Create new localized ad design
180
5
Receive approved translation-text, locate design master, copyfit
text for a new layout, and distill localized text and images, creating
a formatted PDF ready for review. Partially not applicable; service
capability of collateral operations uses tagged XML copy-text and XML
style sheets in asset repository, creating an online layout of full ad
design.
Gather content for localization
package
30
0
Retrieve localized versions and notes, compress files for digital
distribution via FTP or extranet file transport, upload to the Net, and
hope that it gets through without error or disruption. Not applicable;
already online.
Distribute package for review
10
1
Collect, package and distribute material for review (creative brief,
localization notes, English master ad, localized PDF). Not applicable;
already online.
Review and approve localized
designs
1080
360
Produce finalized local-market
brochure
240
60
1540
427
SUBTOTAL (minutes)
Sign-off by manager(s) of all localized master designs (three
interactions) - manager(s) sign copies of final master designs
(templates, style sheets, formats, fonts) - print and sign PDF file(s).
Partially not applicable; service capability of collateral operations
includes instant workspaces that associates audio and visual notes
and changes to production master, reducing need for recap meetings
for missing personnel or multi-party approvals.
Gather comments and final instructions, implement design master and
document master, distill into PDF, and post in completed job folder. Not
applicable; already online.
Time required to complete production, review and approval.
CYCLE TIME
Days required to complete
2.9
0.8 Per complete cycle
LABOR COSTS (dollars)
Difference based on portion of work completed by different staff
Global Headquarter Staff
$-
Global Agency Staff
EMEA Headquarter Staff
$- $200 per hour fully-burdened rate
$$18,482.40
EMEA Agency Staff
$- $180 per hour billing rate
$5,119.20 $180 per hour fully-burdened rate
$-
$- $120 per hour billing rate
Local Marketing Staff
$51,340.00
$14,220.00 $100 per hour fully-burdened rate
Local Advertising Staff
$41,072.00
$11,376.00 $80 per hour billing rate
Translation Staff
Blended labor rate
TOTAL LABOR COSTS
MATERIAL COSTS ($)
Physical media (CD/DVD)
$$15,842.06
$110,894
$- $60 per hour billing rate
$4,387.89 Represents proportional hourly rate of team involved
$30,715 Per complete cycle
MANUAL AUTOMATED
$92.08
NOTES
$25.50 Cost of CDs burned to support process
Freight, courier, express mail
$1,043.60
$289.05 Cost of mailings required to complete process
Agency billing (ship, process)
$2,302.05
$637.61 Cost of mailings by agency based on standard service fees
TOTAL MATERIAL COSTS
$3,437.73
$952.17 Per complete cycle
ANNUAL COSTS ($)
Annual labor costs
MANUAL AUTOMATED
$110,894
Annual material costs
$3,438
Annual overhead costs
$2,462
TOTAL ANNUAL COSTS
$116,794
NOTES
$30,715 Fully-burdened labor costs
$952 Total material costs associated with process
$682 Total overhead costs associated with process
$32,349 Per complete cycle
ECONOMIC GAINS
SAVINGS
Query
Total labor savings
$80,179
72.30% Percent reduction in costs, automated vs. manual
Analyze
Total material cost savings
$2,486
72.30% Percent reduction in costs, automated vs. manual
Report
TOTAL ECONOMIC GAIN
ARCHIVE
Certify
Journal
Archive
INTANGIBLE GAINS
PERCENT
NOTES
$82,665
VALUE EFFECT
Cycle time
2.1 Days gained by automating process
Destroy
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SERIE S//MANAGEMENT ADVISORY
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GISTICS
45
What comprises the differentiated value proposition for
outsourced pan-regional collateral operations of Adnovate?
Pan-Regional
Marketing
Productivity Dividends
from Outsourced
Collateral Operations
Analyst’s summary
FOR
Global marketers with EMEA operations and pan-regional dealer or reseller networks,
Their national sales organizations and retail partner with regular promotions and advertising
campaigns,
WHO SUPPORT
WHO NEED
More efficient ways to source the localization and production of print collateral,
point-of-purchase materials, display ads, and recruitment ads,
WHO SUFFER
Delays in getting to pan-regional markets as well as the unacceptable trade-off of high cost or
low quality in localized materials,
WHO ACCEPT
That manual, duplicated, and offline workflows add unnecessary burdens in project coordination
among headquarter and regional staff as well as add extra cost, and brand inconsistencies
Only Adnovate produces strategic cost savings that enable EMEA marketers to
increasetheir spendings on additional media placements and campaigns without
increasing operational budgets,
USING
Centralized, on-demand collateral factory to localize marketing content and produce final-form
advertisements and marcom collateral that:
SPEEDS
The time-to-pan-regional-markets by three to five weeks
REDUCES
Total cost of a printed page of collateral by 30 percent
RELIEVES
The aggregated workload of four to seven full-time marcom and procurement professionals,
AND
ENABLES
The reallocation of operational cost saving to other revenue generating investments (more
media, higher production value media, greater levels of personalization).
UNLIKE
Production studios of ad agencies such as TFG/Saatchi and Capps/Publicis, or independent
studios such as TAG Worldwide, that lack full integration of
•Instant automated collateral artwork production
•Online workflow and approval platform for work in process
•Online status and progress monitoring, reporting, and process quality controls
•Low per-unit costing of localized pages
OR UNLIKE
Pan-regional marcom operations groups from as Freedman International, that lack:
•A fully transparent view of cost-per-localized-page and
cost-per-printed-page of marketing collateral
•Real-time XML workflow data and application interfaces to client IT systems
•Low per-unit costing of localized pages
OR UNLIKE
Onsite collateral production platforms from Saepio and PageFlex, or on-demand publishing
modules of MRM systems from Aprimo, AssetLink, or ADAM that do not provide:
•Fully managed operations with expert teams and systematized best practices
•Same-day service for programming new publishing templates and
stylesheets, requiring instead custom programs, delays, and high costs
•Simple on-demand, pay-for-production business arrangement, requiring instead that clients
make significant ongoing investments in maintenance of a collateral operations
CollateralOperations.2.9 ©2008 GISTICS All rights reserved
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
GISTICS concludes that the superior productivity of Adnovate’s collateral
factory delivers a significant productivity dividend, freeing up several
staffers and significant sums of money from operational spending; budgeted
monies that the chief marketing officer can redirect to increased spendings
in more strategic areas (more media, ad words, etc.) without increasing
annual operating budgets.
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46
GISTICS
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
executive white paper
What differentiates GISTICS as a think tank
for market-making?
FOR
Growth-oriented providers of new technologies or disruptive innovations
WHO NEED
More effective ways to create sales in early-stage markets or
disrupted segments within established markets
WHO ACCEPT
That new technologies or disruptive innovations confuse or frighten most
potential buyers, leading to long sales cycles with low sales conversion rates
WHO KNOW
That traditional marketing and business development practices
constitute an ineffective way to find early adopters
WHO WANT
To establish a new market category for their products, services, or platforms
GISTICS
Provides the unique capabilities of a digital think tank for market-making,
DEVELOPING
The strategic business case and investment analyses that justify
buying decisions in early-stage market niches
DEFINING
The problem-determination methods for a buying organization
ATTRACTING
The prospective early adopters and solution providers of
new technologies or disruptive innovations
USING
Rich media (live or prerecorded Webcast presentations or screencast
demonstrations), social networks (user-generated content of blogs, discussions,
podcasts, Webcasts, uploaded videos, etc.), and a robust digital platform.
CLIENTS
Partnering with GISTICS, benefit from
• Breakthrough strategies for market making
• Thought-leadership white papers and Webcasts
• Executive insight portals and master-practitioner teleconferences
• Trusted introductions to key market makers: advanced project directors,
IT project managers, independent consultants, and small solution providers
UNLIKE
Research firms such as Gartner, Forrester, or Frost & Sullivan who define the basic ideas
of a new market category, develop shallow business cases for disruptive new technologies,
and recommend the use of traditional marketing and business development practices
OR UNLIKE
High-tech marketing consultancies such as the Chasm Group who edit their client’s
big-picture strategies, define strategic messaging frameworks, and recommend
(but do not implement) go-to-market strategies consisting of one-off tactical
programs and an ineffective mix of traditional and guerilla marketing practices
OR UNLIKE
Promotion and marketing-service firms who supplement the client’s business
development with strategic messaging, Web site makeovers, direct mail
and newsletters, and other marketing communications activities
ONLY GISTICS
Maximizes sales for new technologies or disruptive innovations in early-stage markets
or disrupted segments of established markets, using structured, scalable, and flexible
programs to meet or exceed client criteria for value, satisfaction, and quality.
S
OUTED
ATEGORIES
MARKET INFRASTRUCTURE
Academic Papers/
Blogs
100%
nd
s
0%
Demonstrated
Feasibility
Proven
Business Value
Consultants/
Integrators
Established
Solutions
Market-making
T h i n k Ta n k
{
Cumulative Adoption
ms
Newsletters/
Conferences
Trade Pubs/
Business Press
Commodities
Financial
Analysts
Aftermarket
Replacements
Adoption
Curve
AdoptionCurve.E.1.0 ©2007 GISTICS, All rights reserved.
Researcher Early Adopter
Pragmatist
Conservative
Laggard
...................
ECONOMIC ACTORS
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
...................
Thought Leadership...Executed Worldwide
...................
4171 Piedmont Avenue, Suite #210
Oakland, CA 94611 USA
Tel +1.510.450.9999
Fax +1.510.450.0954
info@gistics.com
www.gistics.com
GISTICS Incorporated
4171 Piedmont Avenue, Suite 210
Oakland, CA 94611 USA
www.gistics.com
+1.510.450.9999 tel
+1.510.450.0954 fax
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