Wanted: A MISsionary Zeal

The term MIS—management information systems—gets thrown around so much that the significance of its impact gets taken for granted. Company management and all employees making management decisions (and in well-managed companies, these decisions are made at the lowest possible organizational level) depend on accurate, real-time information to make good decisions that enhance the bottom line.

So, you would think systems that provide the information for management decisions would get top billing, or at least some priority. However, this is not always the case.

Companies that are in the MIS business for the printing arena sometimes struggle to win the battles for investment dollars when going up against more tangible assets such as presses, prepress systems, or converting equipment. However, these companies know they can deliver ROIs that clearly justify the expense, and in many cases, put companies in a position to grow their businesses.

To get an assessment of the current environment surrounding MIS in the package-printing arena, packagePRINTING contacted a number of MIS suppliers. Here’s what they had to say.

pP: How is your company positioned in the business/production software space relative to package printing? How do you differentiate your company from the competition?

Jim Drisler, executive VP, sales and marketing, CRC Information Systems—CRC Information Systems offers two extremely powerful estimating modules designed exclusively for the package-printing industry—Folding Carton Estimating and Flexible Packaging Estimating. Both work seamlessly within a fully-integrated business management software package known as THE System.

CRC differentiates itself by providing exceptional service along with the most comprehensive, fully integrated, yet intuitive and easy-to-use suite of software available to the package-printing industry. CRC has developed more than 100 modules that address all aspects of business management, yet the workflow is presented in a straightforward manner that makes sense to users.

Chris Wood, Vice President, Sales and Marketing, DiMS!® organizing print—DiMS! has a comprehensive offering in the package-printing market. Our biggest success has been in roll labels and folding cartons particularly, in the multi-plant market.

Marc Olin, Sr. VP/General Manager, EFI Advanced Professional Print Software (APPS)—EFI offers PSI Flexo, a full-featured, highly flexible Print MIS designed to meet the unique office and shop floor management needs of the package printer. PSI streamlines production and helps businesses maximize their profit potential.

Brian Lynch, VP of sales and marketing, Operon Systems—Our product and offering is not limited to package printing, in that most any business can benefit from our Productivity Solution. What makes us unique is our approach to serve the customers and our ability to react quickly to their requests and needs. We make and sell a complete turnkey productivity solution. Our goal is to be the easiest system to implement, the most responsive company to customer needs, and the most professional organization to work with.

Jacob Aharon, president and CEO, PlastiSoft Corporation—PlastiSoft has made a commitment to provide a tailored ERP [enterprise resource planning] solution for flexible package printing and flexible packaging overall. We differentiate ourselves, having created an ERP solution (TORI-FLEX), that is already customized with specific functionality and terminology that relates directly to the day-to-day operations of flexible package printing companies.

David Taylor, president and CEO, Radius Solutions, Inc.—Radius Solutions is a leader in supplying ERP/MIS solutions to printing and packaging organizations worldwide. Our flagship product, PECAS Vision, is a global, integrated system with unique capabilities to address organizations with complex operating environments such as multi-site, multi-currency, and multi-language needs. In addition, we offer unique capabilities to address the needs of companies that produce multiple products in the areas of folding cartons, labels, and flexible packaging, as well as commercial print. Ken Meinhardt, president, Tailored Solutions—We are an MIS provider that is totally dedicated to the label industry.

pP: Is business/production software a ‘hard sell’? Are you able to quantify tangible benefits that demonstrate an acceptable ROI during the selling stage?

Drisler—Often it is a company’s frustration with systems they have developed internally or cobbled together over the years that leads them to consider a fully integrated suite of business management software. Once their mind is open to the idea of a comprehensive solution like CRC, the ROI is easily demonstrated. As examples, the following is a small selection of ROI points reported by CRC customers since implementing THE System:

• Increased capacity for estimating without increasing staff—20 percent after the first year; 35 percent after the second year.

• 20 to 40 percent reduction in elapsed time from receiving the order to shipping the product.

• Maintained annual sales of $27 million while reducing headcount from 223 to 178.

Wood—It is not a hard sell if you spend time to understand the challenges the printer/converter faces and then present tangible solutions. DiMS! always works with potential customers to identify real ROI figures and the anticipated time scales to deliver them. We have developed ROI programs based on input from clients. In addition, we have payment options allowing the customer to only begin paying for the licenses after the ROI benefits occur.

Olin—Can we quantify tangible benefits? Absolutely! The EFI PSI management solution can impact virtually every phase of sales, planning, and production. We identify immediate payback in a specification process that improves communication, accuracy, win-ratio, and turn-time. We eliminate waste, downtime, and non-chargeable rework by dynamically scheduling jobs based on a combination of production characteristics and delivery priorities.

Lynch—The hardest part of selling business/production software is getting the customer to understand the potential benefit it can offer. With most of our experience coming from referrals and customer requests, we usually start beyond that stage, as the customer already is aware of who we are and what we can do for them. However, in instances where we are trying to create the need, the process becomes longer and our role becomes more education and illustrator. Once the customer believes in the system, they can see the potential ROI they stand to achieve. The returns we generate are tangible, quantifiable, and sustainable, in terms of the bottom line impact we can offer.

Aharon—Yes, selling business/production software is a ‘hard sell.’ The way we communicate ROI during the selling process is to let our prospects know they will see positive results faster and at less cost than with other, generic ERP solutions, given the customized functionality of TORI-FLEX. Some of the ROI highlights are:

• Reduces scrap by eliminating duplication and mistakes.

• Increases profit through more accurate analysis of every job.

• Improves customer service by more quickly responding to customer needs.

Taylor—Many printing and packaging organizations first think of investments in technology as those pertaining to new machinery. Once an organization understands what a fully integrated MIS/ERP system can do to help eliminate manual rework, employ best practices/streamline operations, and provide immediate access to key business information, they often look to Radius Solutions as a potential supplier.

At Radius Solutions, we do a Needs Analysis for prospective clients. This includes comparing their processes to the best practices/processes in the PECAS Vision application, and demonstrating where they can gain efficiencies and in turn, project ROI from implementing the system. We also have a very strong user community, providing input on how to improve the usability and efficiency of the product as industry needs continue to evolve.

Meinhardt—The benefits are so wide-ranging that trying to quantify results is not always easy. There are the obvious benefits of automation, such as increased productivity, elimination of errors, and increased profits, but there are also the intangible benefits of being able to respond to your customers quickly and efficiently with accurate information—you can’t put a value on that.

pP: Business software systems are sometimes linked closely with Lean Manufacturing. Is this a correct association and does this help in the selling of your solutions?

Drisler—While CRC does not propagate only a lean manufacturing model, the association is correct in that CRC supports lean manufacturing through a variety of tools and capabilities inherent in the software. CRC customers that implement lean manufacturing find THE System an irreplaceable tool in value stream analysis and in helping them provide their customers with what they want, when they want it.

Wood—A true assessment, but helping with Lean Manufacturing is usually but one of a number of benefits the customer expects to see. Others may include: providing e-commerce to customers; integrating multiple locations; or reducing IT complexity and cost by moving to a single integrated solution.

Olin—The concept of Lean Manufacturing focuses on maximizing value and eliminating waste. EFI is constantly looking for ways to leverage technology to accomplish these goals for our clients. Our management and scheduling tools are based on the Theory of Global Optimization or (TGO), a science that addresses the constraints that affect production efficiency, resource utilization, and quality. By identifying and managing the constraints, we can improve throughput and profit potential.

Lynch—The answer to this question is yes. However, Lean Manufacturing is a very popular buzzword today and I believe a lot of marketers try to latch onto that concept, sometimes perhaps unjustifiably. Whether or not our solution is used to fulfill a lean initiative or another is fine with me. The concept of being able to “keep score” of your operation and delve further into the potential causes of inefficiency than you ever imagined is power in itself.

Aharon—Yes, lean manufacturing is often linked closely with business software solutions. Using Lean Manufacturing during the selling process, often times helps prospective customers see how automation can basically clean up manufacturing processes by eliminating unnecessary labor-intensive tasks and streamlining all aspects of production together.

Taylor—Radius Solutions is actively involved in embracing Lean Manufacturing. PECAS Vision has specific functionality developed to help companies adopt lean manufacturing principles within their operating environments. In fact, this area is seen as so significant in helping our target market achieve goals in efficiencies and industry best practices, that I have been actively involved in several lean manufacturing industry initiatives.

Meinhardt—Label Traxx is built upon the same principles of Lean Manufacturing—helping businesses to streamline operations to boost their bottom lines.

pP: Do you support third-party integration? What functionality is required for seamless integration?

Drisler—CRC provides integration services to our customers for third-party products as required. CRC uses the Microsoft SQL Server database software, allowing customers to create integration with other data sources as they desire.

Wood—Yes, most DiMS! involve some third-party integration due to the broad scope of our installations. The functionality really depends on the problem being solved. DiMS! has a strong XML and JDF layer, which we use whenever possible.

Olin—Because EFI offers a full suite of advanced professional print software, we can deliver a level of internal integration to support a printing operation from creation to delivery that cannot be obtained with stand-alone solutions. EFI is a leading sponsor of efforts from organizations like CIP4, which are working to advance a common language (designated JDF).

Aharon—Yes, we do support third-party integration. We offer support with financials, management reporting, and bar code labels.

Taylor—Radius Solutions’ PECAS Vision is founded on open architecture to facilitate its integration with additional software programs in companies. Many of our large, multi-national, multi-billion dollar clients deploy a number of different systems, along with PECAS Vision. Our software integrates to those systems. In fact we have preconfigured hooks for some of the larger generic ERP and financial packages that do not have the needed functionality to support the print/package manufacturing part of a large corporation’s operations, but are used in other parts of the business.

Meinhardt—We work with many other suppliers in the label industry. Our roll stock purchasing system is linked with Fasson, Raflatac, Spinnaker, Accucote, Technicote, and Green Bay Packaging so that purchase orders can be sent electronically. Label Traxx then receives electronic notification of what is being shipped to the customer before it arrives, and when it arrives each roll of label stock is labeled with an ID number and bar code that Label Traxx knows. More recently we have also worked with Esko on a project where the Backstage prepress system talks to Label Traxx to find the specs of a job—step pattern, number across, number up, etc .—for origination. No rekeying is necessary in the prepress system which helps to reduce human error and time is saved.

pP: How do you support your customers in the implementation of MIS projects and integration efforts?

Drisler—CRC adapts our service offering to the specific requirements and capabilities of the customer. In some cases the service provided can be as simple as consulting on appropriate points of integration. In others, CRC can provide a full analysis of requirements, development of specifications, software development, as well as all of the training and implementation services necessary to enable the new project.

Wood—We have a well-defined project implementation, and assist all customers from project launch to going live and beyond. Over the last year we have introduced our ‘Perfect Print’ concept, which is delivering much-reduced implementation times as we hoped it would.

Olin—EFI offers a complete implementation package with the delivery of every EFI PSI solution. This package includes a custom implementation plan and training focused on the unique needs of the individual printer and their business model. Following the training process, EFI has a strong staff of Professional Service consultants to help printers leverage their MIS investment, working towards the process and profit potential they’ve envisioned. Many PSI users also take advantage of regional user/peer groups and our annual “Connect” conference to increase the value and impact of their EFI Print MIS investment.

Lynch—We take ownership of the integration process by providing that service and function for our customers ourselves. We also provide on-site training and ongoing support.

Aharon—We have created a complete implementation phase schedule and we make sure that regular visits to customer locations take place, and that our Technical Support experts hold weekly meetings with each customer before, during, and after implementation.

Taylor—Radius Solutions offers full services and support for clients. This means using a proven implementation methodology that has been used successfully at hundreds of sites around the world. It also means providing knowledgeable services and support professionals that have extensive experience working with printing and packaging organizations.

Finally, a full services offering should include training and knowledge transfer for our clients. This includes client training on new releases, as well as initial training during an implementation, and of course ongoing training offerings within our user community.

Meinhardt—We are with our customers every step of the way during integration and we combine on-site and online training to support our customers.

pP: What do you see as far as growth opportunities for MIS solutions in package printing?

Wood—For a long time DiMS! has said that MIS solutions remain a great untapped source of cost reduction and additional revenue for a high percentage of the package-printing industry, which simply does not have the information it needs to be world-class manufacturers. In a great many companies, the provision of accurate, timely, and accessible information is not given anywhere enough management time.

Olin—We will continue to see the advancement of Computer Integrated Manufacturing (CIM) environments in the printing industry. It’s critical that printers have the tools they need to leverage every ounce of profit out of each and every job that passes through their business. Every step we can eliminate, every “touch” we can eliminate will improve production efficiency and profitability.

Lynch—The growth opportunities for MIS solutions in package printing are tremendous. Our belief is the future and security of American manufacturing depends upon the ability to provide accurate process feedback in real-time, for operators to understand their processes, and management to monitor and potentially change them.

Aharon—We do believe that this segment is in need of business software solutions, because most companies are still running a “paper-trail” operation and in order to grow within this industry, they must realize that automation will help them achieve a more streamlined business. We believe that growth opportunities exist for automation within package printing. This is due to the growth and innovation within the industry as a whole.

Taylor—I feel there are a lot of opportunities in this area. Many companies have tried to implement generic systems in the past and realized it is too hard, risky, and expensive to customize systems designed for repetitive manufacturing to a jobbing environment, specific to package printing needs.

Other companies have chosen to build solutions in house and are now either outgrowing them, or have found them to be too expensive to maintain internally, and too difficult to modernize to new open standards so they can scale for growth and integrate new operations as needed in today’s business environment.

We see a growing trend of companies now looking to change out these systems with proven technology that is fully integrated, scalable, and founded on open technology to facilitate integrating new operations and programs.

Meinhardt—We have strong sales in the U.S., but have started to move into new markets internationally. We opened an office in the UK in 2006 to support Western and Eastern Europe and South Africa and we recently appointed a consultant to research distributor opportunities in Asia and India. There are still many companies out there that are running out-dated systems or none at all and we think there is a huge opportunity.

pP: The business/production software segment is very fragmented. Do you see this changing in the future in the form of consolidation? If so, will this be this be good for the industry overall?

Drisler—Consolidation seems to be inevitable in almost every industry. That has not been as true in the software industry because anyone with knowledge of software and a computer has the potential to create a saleable product. However, as industry-specific systems mature, the bar is continually raised for a start-up company to enter the market. The benefits of consolidation are mature product offerings from companies experienced in providing the service necessary to satisfy the requirements of their customers. The downside is that as consolidation occurs, innovation may suffer.

Wood—You would expect MIS/ERP consolidation to happen in line with industry consolidation, although you could have made this observation ten years ago and there are even more MIS/ERP options than then! The obvious barrier to software company consolidation is the often completely different technologies being used, which do not lead to synergistic advantages that you may see from converters consolidating. Secondly, package printing companies have strong loyalties and preferences for particular software solutions, making it hard to offer a single solution following consolidation.

Olin—Unfortunately for the printer, the software segment is both fragmented and fragile. Many solutions have been developed with inadequate staffing and poor quality assurance. And, a solution that may look good on the surface, many times does not have the foundation or the infrastructure to support a long-term implementation. And, because an MIS—unlike any other tool—touches virtually every person in a business, the impact of this reality can be catastrophic for a printing business. The key for the printer is to select an MIS provider with a solid foundation, a strong track record, and a strong on-going investment in technology and people.

Lynch—I see consolidations and new offerings being a regular part of the business/production software segment for several years to come. New entrants will be risky to work with and their performance will have to be determined on an individual basis. The most important questions a customer needs to ask themselves before selecting a productivity solution provider are these:

• What happens if the productivity solution I purchase ceases to exist?

• How easy is the productivity solution to implement into our existing operation?

• How credible and knowledgeable is the company proposing the productivity solution?

Taylor—I feel the software industry, like the packaging industry and so many others, is undergoing quite a bit of consolidation, and has been for a number of years. I think this can be good for the market if acquisitions are done for the right reasons—for example, if they are done to increase your product line offerings, extend your services to new geographies, or to consolidate two complimentary organization to improve efficiencies and provide better service at excellent rates for clients.

pP: What is the biggest competitive threat your company faces?

Drisler—As stated earlier, the biggest competitive threat that business management software vendors face is a lack of awareness of the extent and nature of the benefits provided by a comprehensive software solution. Budgets tend to gravitate towards the more readily understood return on investment (ROI) provided by faster, better production equipment, versus the less-tangible benefits of better information. However, experience with our customers proves that the ROI from improved information flow is significantly higher than any piece of production equipment can ever hope to provide.

Wood—If package printers recognize the huge cost reduction and profitability potential that a fully integrated system, such as DiMS!, can provide then we will be busy for a long time.

Olin—Two issues stand out: production equipment and bad solution providers. Printing businesses have a limited amount of capital to invest and production equipment is often selected over an investment in information technology. More and more, however, printing businesses are seeing the value of a Print MIS investment from EFI that can help them to improve capacity utilization and performance—to the level that the EFI solution may even replace the need for new equipment.

Bad solution providers, on the other hand, hurt everyone in the industry. Competition that sells on price alone and competition that misrepresents their ability to deliver and support their solutions can devastate a printing business and make our efforts to sell a good solution much more difficult.

Lynch—Competitive problems we face stem from companies going out of business, relocating overseas, or outsourcing before learning about the potential benefits our productivity solution stands to offer them. Our biggest obstacle is potential customers not knowing our solution exists. When given the opportunity to showcase our system customers react quite favorably.

Taylor—Our biggest competitive challenge is the loss of a new client from a no decision result. Sometimes companies see right away the many benefits that we can help them achieve, and even the resulting payoff they will get. They may find the value proposition very desirable, but often it takes a compelling event like an acquisition or some new large clients that stretch their current processes and infrastructure, before they decide to change the way they are currently doing business. So they often wait for what they see as a “nice to have” to become a “must have” before taking action.

Though the reality is that once companies implement our system, they usually find they experience many more benefits than originally anticipated. Because the system allows them to increase efficiencies, they can often use existing staff in more strategic ways to help the company win new business, grow, and or become even more efficient. Additionally, many of the mid-size firms that compete against larger firms, are competing against companies that have an integrated system in place, so by having a competitive, industry-leading solution themselves, they can experience greater profit margins while improving customer service to stay competitive in the game. pP