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R.R. Donnelly & Sons Print vs. Digital
Final Project -- R.R. Donnelley & Sons: The Digital Division
In 1995, the largest commercial printer in the world, R.R. Donnelley & Sons which was founded in the 1864, was experiencing challenges both internally and externally as digital printing technology began to completely alter the printing industry. Though the printing company had created a division to respond to the massive changes associated with digital technology, headed by VP Barb Schetter, the division had significant difficulties infiltrating and making an overall impact on the traditional Donnelley business model which was fully invested in larger and more costly printing systems and had an informal and formal business structure and culture to support these massive historical investments.
R.R. Donnelley & Sons Assignment Questions
What are the differences between the traditional printing business and the digital printing business? And in particular, what are the implications for Rory Cowan, who is sitting over those two businesses-Digital Printing Business
Places emphasis on speed and...
flexibility
Just in Time Delivery and Inventory Model
Reduction of cost in distribution including logistics and distribution
Revision capacity much greater than traditional printing
Short run printing is more cost effective than long run
Increased demand for short-run assignments and highly customizable and editable (individually directed processes)
Global distribution can be simultaneous with digital technology
IT Database with flexible storage and high security needed
Traditional Printing Business
Large infrastructural investment in offset and web/presses dubbed "heavy iron" establishing high fixed and low variable costs.
Large run printing on both types of presses if far more cost effective, with film and plates used in offset press (25,000-500,000 run length) set ups and etched copper cylinders for Gravure presses (500,000+ run length.
Cost Driven (cost per page)
Longer run length created lower costs per page for customer
Pre-determined contract with lengths from 3-10 years constitutes…
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