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Executive White Paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations Impact of outsourcing the online management of marketing content and reusable media components on the productivity of marketing, sales, and corporate communications Business metrics, automation benchmarks, and total cost of ownership models for automating the global delivery of marketing materials, presentations, videos and sales training to creative teams, field staff and partners Licensed for distribution by ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Who helped produce this white paper? Who is GISTICS? Business Case for On-Demand DAM and Media Services in Global Marketing 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 [email protected] DESIGN, LAYOUT, EDITING, PRODUCTION LIANNE MUELLER Art Director Fly Design Media [email protected] iris alroy Production Artist GISTICS Incorporated [email protected] Kathleen McFadden [email protected] Steve Turner Turner Associates [email protected] 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 pacesetting 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 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 GISTICS and its agents have used their best efforts in collecting and preparing information published in this white paper Business Case for On-demand DAM and Media Services in Global Marketing 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. 2 GISTICS Offer—market development Demand creation Concept Market T1 Sales conversion Primary Market Strategic development Aftermarket Market-making scenario 1 C o l l a b o r a t i v e T2 Satisfaction fulfillment 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 Time to Value Scenarios ©2008 GISTICS Incorporated. All rights reserved. Printed in the U.S.A. P r o c e s s IN Market-making Scenarios GISTICS Incorporated 4171 Piedmont Avenue, Suite 210 Oakland CA 94611 USA www.gistics.com +1.510.450.9999 tel +1.510.450.0954 fax V a l u e - C r e a t i o n 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. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations Impact of outsourcing the online management of marketing content and reusable media components on the productivity of marketing, sales, and corporate communications PAGE 4 9 13 23 31 35 45 CONTENTS//SECTIONS Executive Summary Key Trends in Marketing Operations Introduction to DAM DAM Strategies for Marketing Operations Solution Lifecycle: Total Cost of Ownership Activity-Automation Benchmarks for Media Services Platforms About GISTICS ABSTRACT Successful new-product launches increase corporate revenues; spectacular launches increased share-price and investor confidence. Major new-product launches involve hundreds of workers and myriad of communications, interactions, and handoffs. The reviews and approvals of marketing materials and documents throughout a product’s lifecycle—from ideation and creation of reusable marcom assets to distribution and archival of final-form materials—define the most problematic activity and source of cycle-time delays and quality defects (that result in additional costs and lost sales). Automation of real-time collaboration, review, approval, and digital distribution of brand marketing materials throughout the marcom asset lifecycle reduces time to market, realizes higher quality, and lowers net-cost of marketing communications. Integrated lifecycle management of new-product launches and digital marcom assets maximizes speed-to-market of consistent brand-marketing communications while reducing overall labor content, redundancies, and costs of marketing communications. On-Demand DAM and media services in global marketing operations increases the revenue potential of new-product launches as well as lowering total operations costs of marketing. How do we summarize this white paper? Lack of systems undermines strategy execution GISTICS Research of 10,000 firms worldwide reveals that the lack of systems—information technology—can hobble the launch of a new product or campaign. Lack of systems can also contribute to the failure to execute an otherwise winning marketing strategy. This paper examines the system requirements for an effective product launch as well as the execution of an integrated, multichannel marketing strategy. ROLE OF A DAM-ENABLED marketing REPOSITORY This white paper calls attention to the pivotal role that a marketing repository can play in reducing the time to market for a new product or service. In particular, we show how greater speed, coordination, and consistency in the creation and distribution of marketing content and brand resources contribute to the successful launch. A DAM-enabled marketing repository not only speeds the delivery of selling images, content, and marketing support material to the front-line sales organization, but a marketing organization also can use this repository to customize content to a distribution partner’s requirements, localizing materials for a particular language or culture, and personalizing materials to individual buyers. Hosted services provide benefits beyond the core function of software: • Faster startup: Three weeks versus three to nine months for licensed software. • No security compromises • No meaningful security differences between hosted or licensed enterprise-class solutions. • Access to scarce resources: Greater, more immediate access to IT support services via internal IT groups. • Outside the firewall: Fewer issues when bringing on new users (partners, press, customers) • Expensed item: Monthly payment for service versus capital expense and CFO-level authorization. INTENDED READERS The figure below depicts the primary readers to whom we have addressed the bulk of this paper. Our research of marketing operations indicates that Marketing has primary ownership of marketing content and that MIS/IT may or may not own the technical systems of repositories. HOSTED VERSUS LICENSED SOFTWARE This paper also examines the business value of “renting” a hosted marketing content service rather than “buying” licensed software and maintaining it with internal resources. Purchase and maintenance of complex, rapidly evolving media services and multimedia database technologies make licensed software impractical for many marketing operations. Hosted marketing content repositories can provide enterpriseclass media services at a substantially lower cost than licensed software — 50 percent to 90 percent less expensive when analyzed across a threeyear solution lifecycle. D A M - e n ab l e d M A R K ET I N G RE P OS I TOR I ES S P EE D NEW P RO D U C T L A UN C HES A N D ENH A N C E E X E C UT I ON OF MULT I C H A NNEL M A R K ET I N G STR A TE G I ES How has Baxter International used on-demand DAM to support its marketing operations? (Part I) Business Case for On-Demand DAM and Media Services in Global Marketing Operations GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GLOBAL MARKETING AND COMMUNICATIONS Baxter International represents one of the leading pharmaceutical and life science firms in the world, employing 48,000 professionals and producing $12B in annual sales. In the summer of 2006, the head of global communications and her colleagues concluded that their homegrown intranet with 16-plus media libraries, rudimentary exact-keyword search, and manual file transformation services had become “unmanageable.” Over the years, the number of photos on this intranet had grown to more than 42,000, and thousands more were scattered across shared drives, CD-ROMs, and laptops. Nearly everyone in communications and marketing loved to use the high production value photos in the annual report, but individual market managers did not like to see photos of their products or patient scenarios misused. In the medical care industry, most professionals can instantly spot a renal (kidney) care patient scenario from another scenario. Inappropriate use not only diminished brand voice consistency, but also induced content owners to hoard their media assets—lest they lose control of them on the allinternal-users-welcome intranet. Also over the years, advances in digital photography produced higher resolution photos and, thus, larger file sizes that precluded using corporate email systems with their policy prohibiting file attachments greater than six megabytes. A little deeper examination revealed that many photos had become orphaned: no one in the firm knew anything about the intellectual property rights of these photos. In some cases, the photos contained the likenesses of real patients whose privacy Baxter was required to protect or face penalties and fines. Lack of asset provenance emerged as real risk that demanded action sooner rather than later. Thus, a key short-term priority entailed the procurement of new assets with unlimited worldwide use rights by Baxter and the association of available clearances and waivers with each asset. STARTED WITH THE IDEAL FUTURE-STATE SYSTEM The core team of design, communications, and IT professionals with more than 70 years of combined work experience developed a matrix of the features and functions they would need. In large part, they started the process with a thorough examination of many DAM, content management, and related systems, correlating named functions or services of a particular system with the needs of their creative and marcom groups. Operating in a regulated industry compelled them to have well-documented business processes and clear roles and responsibilities. A preexisting, homegrown corporate intranet, years in its evolution, provided a precise, well-defined, and comprehensive metastructure for Baxter’s lines of business, product lines, marketing support materials, and content ownership—all very helpful in understanding several business requirements of a DAM service strategy. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY With basic DAM functions and services in mind for its global marketing community, the core team identified the following criteria that a new DAM system and vendor should satisfy: • Centralized Web-accessible collections available to any Internet-connected user around the world • Assured scalability of system storage and number of users because “Who knows where we’ll be in five years!” • Natural language search that enables nontechnical marketing or creative partners to find needed materials, using common terms and phrases • Simple, effective cataloging tools with pulldown menus and checkboxes, enabling nonlibrarian marketing folks to create and manage their own collections • Fully transparent asset user histories detailing who viewed, downloaded, or uploaded each asset by date, time, and location, satisfying regulatory requirements for security and audit controls • Public and private areas in which to put unannounced product materials, providing particular individuals tightly controlled and monitored access to a collection or just one item in an otherwise “dark” inaccessible collection • Open “parking lot” area that enables external vendors to upload and tag works in process and finished art, cataloging assets with predefined terms and metadata without gaining access to the whole system or repository • Two IT service delivery modes with SaaS that support fast time to value with a hosted capability and deployed, on-premise software that Baxter could bring in-house SOURCING SAAS CAPABILITIES In many situations, the number of options and tradeoffs in enterprise DAM software overwhelms even the most experienced marketing professionals. With more than 48,000 employees around the world, Baxter enjoys a deep bench of talent; some of its IT and communications executives have worked at Baxter 20 or 30 years. When it came time to winnow down a group of 30 potential DAM software and service providers to a short list of three or so, the core team at Baxter pulled in an internal expert in purchasing supply management. It also helped that this sourcing specialist had extensive experience as a multimedia designer and project director for complex multimedia applications. He understood big, complex workflows, the need for simple and powerful user interfaces, and the business-critical demand for dead-simple administration of a large system by just one or two people. When the core group was asked to identify their criteria in selecting a DAM service provider, three criteria stood out: • Vendor personnel: Knowledgeable, responsive, willing to work with the Baxter team. In a phrase: A good fit. • Simple maintenance footprint: No installed software, easy to set up new users and reconfigure interfaces to meet specific needs, all done by existing personnel—“just the two us.” • Easy to cost-justify: Simple monthly fee for an enterprisewide subscription with simple accounting: no extra up-charges for adding new users or creating new collections. .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 5 How has Baxter International used on-demand DAM to support its marketing operations? (Part 2) Business Case for On-Demand DAM and Media Services in Global Marketing Operations MEDIA SERVICE PLATFORM ECONOMIC RETURNS In November 2008, Baxter International began using the OpenText On-demand DAM system for Baxter’s Digital Media Collections. Starting with a small, fully cleared collection of photos from the annual report, the core team used the preexisting business unit, product line hierarchies, and common marketing terms from the corporate intranet to begin configuring the DAM. It still took “lot and lots” of work to think through the metadata and taxonomy (sets of keywords to describe the contents or suggested contexts of use for a particular file). The sourcing specialist with his multimedia design and production experience helped in rounding out the needed metadata, clarifying how Web content teams and creative agencies think about workflows, works in process, and various approval processes. In particular, the collaboration tools of the DAM media service platform have begun to show real promise among the creative users. A growing number of users have begun using the Acrobat annotation and markup tools and the version tracking of the DAM to speed up collaborative reviews and approvals. Another real timesaver comes with dynamic imaging. The creative or marketing manager uploads a finalized, approved high-resolution photo to Baxter’s Digital Media Collections or DAM, denoting among other things where others may use the image (Web, printed collateral, presentation, proposal, etc.). Thus, a single digital master sits in the system. As other users find it and want to use it, upon checking it out of the collection, specialized imaging software transforms a digital copy of the full-resolution digital master into the user-specified format, colorspace (four-color printing, online RGB, etc.), and dimensions or size. While the system keeps a record of each rendition and who made it when, the system does not store the down-sampled rendition. Called dynamic imaging, this one capability saves, according to GISTICS industry benchmarks, an average of 21 minutes of a graphics production specialist’s time at a fully burdened labor rate of $59.40 per hour—or $20.79 each rendition. Most firms typically use four or five renditions: highquality color printing for brochures, medium high-quality color for presentations and digital signage, medium quality for proposals, and low-quality color for use on the Web. The Digital Media Collections have also sped the development of companywide standards for photographic styles and production values and have also imparted a more unique and distinct brand voice to each Baxter product. An online style guide and tutorials also help in this effort for making brand Baxter more crisp, consistent, and credible— the three Cs of brand voice resonance. Less than six months after Baxter International created its Digital Media Collections, the system was managing about 3,000 cleared, high-resolution photos, presentations, posters, and brand style templates, supporting 1,500-plus users worldwide. The Digital Media Collections contain eight major collections and 11 subcollections for three business units across five global regions. As they like to say, “We have a governance scheme.” Each major collection has one or two designated editors from the marketing or communications groups of the business unit or product line who upload the high-resolution files, apply the right metadata, associate clearance documentation or waivers, define use policies, and handle end-user requests. So far the biggest and clearest return on investment came when corporate renovated the lobby and reception areas at four facilities, reusing photos and illustrations from the annual report. Next up? The core team leader believes that the Digital Media Collections will continue to evolve, expanding support to field marketers and sales. It has the potential of becoming a real performance support system for more effective engagement with customers. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 6 GISTICS GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... P a r t ia l Li s t o f Fi r m s U s i n g Op e n T e x t On-demand DAM American Greetings Properties ASPCA Bacardi & Company Birkenstock BNSF Bupa Crisp Branding Agency Discovery Communications DPR Construction Environmental Defense Extreme Networks ExxonMobil Family Health International Gartner Studios Gaylord Entertainment Company Group Health Cooperative HFA/Goodyear Hands-On Mobile K12 Kennametal Marriott International MasterCard Mattel Mentor Corp Mentor Graphics Monster Worldwide National Multiple Sclerosis Society Nationwide Insurance Oliver Marketing Paramount Farms Pfizer Precor Royal Caribbean / Celebrity Cruises Russell Investments Scripps Networks Shell Vacations The St. Joe Company Sybase Tourism Whistler Trust for Public Land University of Puget Sound White & Case, LLP .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper What comprises the differentiated value proposition for on-demand DAM from OpenText? Business Case for On-Demand DAM and Media Services in Global Marketing Operations GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Analyst’s Summary of opentext on-demand dam FOR Marketing operations of medium to large enterprises WHO NEED More efficient ways for marketing staff and partners to access marketing content WHO WANT Easy, flexible ways to reuse their digital assets—images, designs, presentations, spreadsheets, documents, PDFs, videos, and animations—and finished marketing materials WHO SEEK Hosted delivery of a true enterprise-class platform that can support tens of thousands of users without adding more hardware or installing new software WHO APPRECIATE The ability to use a hosted DAM to prototype a subsequent full-scale, on-premise DAM platform, including enterprise-class metadata, use cases, and workflows GISTICS finds that OpenText On-demand DAM provides the greatest return on investment of marketing assets, as well as the fastest time to value in the industry. OpenText On-demand DAM delivers these returns by using documented best practices for rapid configuration and customization that ENSURE Rapid provisioning of a superior user experience, as well as the reallocation of internal cost savings to other revenue-generating investments (more advertising, more media, etc.), and UNLIKE Homegrown on-premise DAMs such as SharePoint, Filemaker, or databases that lack o Fast time to value with out-of-the-box enterprise-class functionality, including shopping carts, high-quality image transformation, and managed delivery of encrypted packages o Best practice methodology for customizing a DAM for enterprise marketing operations o Superior user experience resulting in lower costs of training, support, reconfiguration, and metadata management OR UNLIKE Installed on-premise DAMs from Adam, MediaBeacon, or Cumulus Enterprise that o Require significant capital investments for hardware, software, installation, and IT service management o Lack fast time to value with on-demand enterprise-class functionality o Don’t provide proven best-practice methodologies for customizing a DAM to the needs of enterprise marketing operations OR UNLIKE WCM-DAM Suites from EMC-Documentum, Oracle-Stellent, and Day that require o Significant capital investments for customization and months to deploy o Expensive professional service teams to configure, install, and customize for enterprise marketing operations OR UNLIKE OR UNLIKE o Several full-time staff to maintain and support daily operations Media service providers Schawk, Corbett/LinQ, or SGS International that o Lock customers into the media services and technologies of one provider o Limit fuller integration with corporate security and identity management models SaaS DAM services from Getty Images, Feedroom, or Ascent Media that o Specialize in narrow industry niches and related use-case workflows o Don’t provide proven best-practice methodologies for customizing a DAM to the needs of enterprise marketing operations o Lack flexible configurations for adding new media services such as review and approval, automated publishing, and presentation library management GISTICS concludes that OpenText On-demand DAM increases the operational productivity of marketing, sales, and Web production and creative teams within the diverse and demanding marketing operations of medium and large enterprises. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 7 Yes! I want to order the Journal of DAM Best Practice Compendia More and more of today’s companies face the unique challenge of managing their media assets, many of them turning to digital asset management systems. With DAM they reduce the time and money they spend producing and protecting their digital content. One DAM method varies from one industry to the next. Palgrave Macmillan’s Journal of Digital Asset Management now offers a set of innovative Best Practice Compendia. Whether you want to protect your brand, bring new properties to the publishing supply chain, experiment with social media, or transform your business into a multimedia platform, you can bypass the archives and go straight to the compendium that’s most relevant for you and your business. Editor Michael Moon curated each collection. Check out our five new titles NOTE: Active hyperlinks in PDF version Best Practice Compendium for Metadata and Taxonomy - 17 Articles Best Practice Compendium for Publishing Supply Chain - 18 Articles Best Practice Compendium for Marketing Supply Chain - 17 Articles Best Practice Compendium for Broadcast, Cable, Radio and TV - 14 Articles Best Practice Compendium for Social Media - 12 Articles Order Form For more in-depth information about the Journal of DAM Best Practice Compendium, visit www.palgrave-journals.com/dam/compendia.html ................... .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Thought Leadership...Executed Worldwide ................... 4171 Piedmont Avenue, Suite #210 Oakland, CA 94611 USA Tel +1.510.450.9999 Fax +1.510.450.0954 [email protected] www.gistics.com ................... 11 12 13 14 15 16 What global trends will impact marketing operations at large and small enterprises? What single factor most affects revenue growth and the success of integrated marketing? What operational strategy do most CMOs pursue to achieve competitive advantage? What constitutes a marcom supply chain? What is one of the largest and most overlooked costs of a marketing operation? What metric do many CMOs use to measure the performance of staff and partners? How do analysts quantify the value of integrated supply chains? 10 ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 9 GISTICS SERIES//MANAGEMENT ADVISORY K ey Trends in Market ing Operat io n s SECTION I ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations What global trends will impact marketing operations at large and small enterprises? STRATEGIC SOURCING OF MARKETING SPENDS Several factors compel marketing management to improve operations. The figure below depicts three key trends affecting marketing operations management. GLOBALIZATION OF MARKETING The term globalization connotes the integration of the marketing process with global business requirements. Marketing strategies must now expand to include cultural norms, buying criteria, and selling propositions for dozens of international locales and partners. Marketing operations can no longer operate in just three time zones; rather, global operations must work 24 hours a day, 365 days a year. In practical terms, marketing must localize brochures, presentations, and multimedia content for 25 to 50 major languages. Marketing teams must schedule, collaborate, and review print, broadcast, and multimedia material among themselves and dozens of creative and production partners. Globalization of marketing has made marketing operations more complex, cumbersome, expensive to manage, and, consequently, slower. best practices, high levels of workflow automation, and the disciplines of continuous quality improvement. ACCOUNTABILITY WITH PROCESS TRANSPARENCY Overall, senior management demands higher levels of accountability from each department or partner to produce tangible business results. This demand for accountability entails the development and tracking of key performance indicators (KPIs)—factbased reports of progress towards explicit goals and milestones. This demand also requires technical systems for collecting accurate data and summarizing these data into meaningful reports (KPIs). Demonstrating and documenting higher levels of accountability require the systemization of heretofore informal and undocumented processes and procedures and the production of timely data and reports. In practical terms, higher accountability means greater control of work underway throughout marketing operations—process transparency. GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MARCOM SUPPLY-CHAIN INTEGRATION Many secondary, unintended consequences continue to flow from the broad adoption of the Internet. Notably, Internet adoption has necessitated the digitization of marcom supply chains. Electronic systems now manage thousands of requests for proposal, media-insertion orders, and invoices, as well as the production, distribution, review, and final authorization of marketing materials. With sudden clarity and alarm, management can see inefficient workflows and processes and call for corrective action. As a result, many firms now pursue an aggressive strategy of outsourcing inefficient, non-core activities and processes. Many marketing operations outsource collateral creation, localization, print production, and fulfillment. Progressive operations now outsource entire business functions, such as creative services, publishing, and Web site management. This outsourcing of business functions results in what analysts call marcom supply-chain integration and the application of strategic sourcing disciplines to marketing procurements. Marcom supply-chain integration emphasizes the outsourcing of complex workflows to centers of excellence: business operations that incorporate THREE L A R G E TREN D S NOW D R I V E THE EMER G EN C E OF M A R K ET I N G O P ER A T I ONS M A N A G EMENT, THE A P P L I C A T I ON OF P RO C ESS A UTOM A T I ON TO P R A C T I C ES OF M A R K ET I N G Globalization ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 10 GISTICS marcom supply-chain integration mArKetInG oPerAtIons mAnAGement 3trends4MOM.1.1c ©2009 GISTICS Incorporated All rights reserved. Accountablity with process transparency .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper What single factor most affects revenue growth and the success of integrated marketing? Business Case for On-Demand DAM and Media Services in Global Marketing Operations GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Competition, Innovation, And Customer Demand Each year, most companies make small, incremental improvements in how they find and serve customers. Some companies, of course, achieve significant breakthroughs. As a result, they win new market share, capture new profit, and beat their competitors. Competition, innovation, and changing customer demand only accelerate the rate of change, resulting in the shortening of product lifecycles. Shorter lifecycles represent new challenges for the marketing executive today. The marketing executive must both conceive a brilliant strategy and execute this strategy with a narrower margin of error. The figure below depicts a generalized model of the value-creation process—how companies find and serve customers—and the heightened role of the marketing launch. Quarterly Results And The Successful Launch The successful launch emphasizes execution—the organizational capacity to produce hundreds or thousands of tactical results with unerring consistency and predictability. A flawed, ineffective launch leads to several negative consequences: missed quarterly revenue targets and loss of stature among the executive team. The successful launch not only represents the commitment and passion of able marketing executives and their various teams, it also emphasizes well-designed and managed systems. Consistent, brilliant execution of strategy rests upon human AND technical systems. Integrated Marketing Rises To The Challenge In the past, integrated marketing meant aligning advertising, publicity, and point-of-purchase programs to communicate a single, unified voice of a brand—what a firm offers and why a customer should want to buy it. Not surprisingly, this strategy produced higher sales generally, at a lower cost per sale. However three recent developments have placed new demands on integrated marketing: • Waning effectiveness of mass media to create new consumer demand • Massive consolidation of markets • Increasing role of the Internet in the buying decisions of customers The marketing executive now allocates a growing portion of his or her budget to promotions, point-of-purchase programs, and alternative media. This reallocation has made media planning and buying more complex and longer to complete. Market consolidation means that global enterprises must now execute global marketing launches across multiple channels and multiple geographies, customizing and localizing marketing materials as required. The Internet and wireless revolutions have only just begun. As a few firms have demonstrated, smart promotions that target online brand advocacy can produce exponential sales growth.* The Successful Launch for Multichannel Markets Ever-shortening product lifecycles, when combined with global competition, innovation, and changing customer requirements, make the successful launch even more fraught with danger. Many companies have, or will soon, exceed their organizational competency to successfully launch new products across multiple markets and channels. This white paper examines how the marketing executive can harness new technical systems, emphasizing a set of the emerging best practices for managing the successful launch in the era of multichannel markets. *See the GISTICS publication, Strategies for Promotional Excellence—Best practice for designing smart integrated promotion. THE EFFE C T I V E P RO D U C T L A UN C H D R I V ES Q U A RTERLY RE V ENUE G ROWTH , RE Q U I R I N G O P ER A T I ON A L E X C ELLEN C E I N M A R K ET I N G SER V I C ES MAJOR LAUNCH: Products, Campaigns, Partnerships, Business models The global launch involves hundreds to thousands of people who must perform their designated tasks in very narrow time frames. Failing that, flawed execution of an otherwise brilliant strategy means missed launch dates and market opportunities. Offer—market development Demand creation Sales conversion Satisfaction fulfillment Strategic development Value-Creation Process CyTime.Brand.Theater.E.1.2 ©2008 GISTICS All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 11 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What operational strategy do most CMOs pursue to achieve competitive advantage? 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 life cycles, business processmaturities, 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 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 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, 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 M A N Y 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 and procurement of creative service, A D V A NT A G E marketing content, and production. Marcom supply-chain orchestration succeeds by producing productivity dividends: new money for strategic spendings. Digital brand interaction describes the newest and fastest growing operational USE SYSTEMS, PROCESSES, AND ACCOUNTABILITIES TO MARSHAL THESE RESOURCES OF A MARKETING OPERATION capability, provisioning contextualized content and interactive services to BRAND STRATEGIC MARKET MARCOM DIGITAL BRAND INTEGRITY DIFFERENTIATION COVERAGE SUPPLY-CHAIN INTERACTION customers and other stakeholders. ORCHESTRATION Successfully executed, this produces self• Deep customer insights • Present at key buyer • End-to-end process and • Digital content and Web • Brand-value clarity service satisfaction. touchpoints workflow integration services management • Buyer’s recognition of a • Brand-expression GlobalMediaServices.1.3 ©2009 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 create and sustain desire or need • Leadership in market category consistency • Brand-message credibility system • Online and offline • Strategic sourcing of 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 AND PRODUCE THESE EXTERNAL PERFORMANCE RESULTS Emotional Connection “Wow” and Visceral Delight Greater Portion of Commanding Position in Market Strategic Spending Self-Serve Satisfaction THUS ACHIEVING THESE SUSTAINABLE COMPETITIVE ADVANTAGES New markets and revenue streams New customers for existing and new offerings Larger and more frequent orders from customers Greater loyalty lock-ins Barriers to Market CMOMandates.B.2.9 ©2008 GISTICS. All rights reserved ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 12 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What constitutes a marcom supply chain? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 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 pp 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 a t e gi e s i n t o m u l t ic h a n n e l c o m m u n ica t i o n s , t a 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 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. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 13 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What is one of the largest and most overlooked costs of a marketing operation? GLOBAL LAUNCHES ENTAIL LARGE TEAMS AND MYRIAD HANDOFFS—POTENTIAL DELAYS WHERE AUTOMATION MAKES SENSE A closer examination of potential chokepoints within a major launch suggests how automation might provide timeto-market gains. The figure below depicts many of the actors who contribute to the overall success of a marketing launch. This figure does not depict, however, duplication of staff and handoffs of global marketing operations. Pressed with absolute deadlines, each contributor must perform designated tasks in very narrow time frames. Working across multiple time zones, the demands of a global launch can quickly become a 24-hour process management challenge. Every doubling of the number of contributors squares the number of opportunities to miss key deadlines and, ultimately a market launch date. Large teams spread throughout a global market spend significantly more time coordinating and double-checking their work than small teams in smaller, unified markets. Effective automation of the distribution of digital assets and repository-assisted localization of these assets enable large, globally distributed, and otherwise clumsy teams to respond with the agility of a small business with tightly focused teams. The logic of distributed media services and marketing centralization often breaks down when you ask the question, “Exactly what can we automate?” GISTICS’ analysis of successful automation projects in the area of marketing operations indicates that a firm should deploy automation from the bottom up, targeting a few strategic chokepoints in preestablished and operational workflows. Large, top-down deployments, such as ERP or CRM, encounter many unforeseen obstacles and often fail to achieve their business goals after years of significant investment. This white paper advocates the automation of media services and, in particular, six or seven activities that most firms must perform in a major marketing launch. Thus, this recommendation defines digital asset management as a business strategy for speeding global market launches while reducing the hard and soft costs of a launch. GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... P l a n n i n g , r e vi e w s , a n d app r o va l s c o n s t i t u t e t h e g r e a t e s t l o s s o f p r o d u c t ivi t y i n m a r k e t i n g o p e r a t i o n s , g r e a t e r s t i l l f o r g l o ba l p r o d u c t l a u n c h e s Outside counsel Call center Packaging Advertising Marketing Promotion agency Finance Field sales Co-Packer Product development Branding Legal Shipping Focus group Brand manager Production company Networks Distribution manager Logistics Quality assurance In-house Research development Advertising Technology consultation Delivery distribution Government Creative ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS Auditors Traffic manager Factory 14 Demand planning Inside sales Licensing Executive 5 Groups Product Subgroups 31 Individuals 248 Potential (P2P) relationships 30,628 Daily interactions along each discrete P2P relationship Total daily interactions per launch 0.2 73,507 Interaction error rate 2% Errors per launch 1,470 Fatal errors per launch 15 Days of time to market lost 15 ProductLaunchTeam.1.4 © 2008 GISTICS, All rights reserved. .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What metric do many CMOs use to measure the performance of staff and partners? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Control, Collaboration, And Consistency The chief marketing officer of a global enterprise grapples with many issues and challenges. Most successful CMOs make the execution of strategy their number one priority. This execution entails having the right people in the right jobs and having the systems for managing the marketing process. GISTICS’ analysis of CMOs who consistently achieve strategic business results through systematized processes has identified repeatable, predictable ways of producing consistent, high-quality tactical results. GISTICS’ research also reveals that many otherwise successful strategies failed to produce results due to a lack of systems for managing the marketing function. The figure below depicts three criteria by which a CMO can measure the efficiency of the marketing process. Although cost remains a key concern, time (or how long it takes to produce a result) often takes priority over money. Time to market emphasizes how quickly a firm can identify customer requirements, develop an appropriate offering, and bring it to market. This speed often requires that a firm master collaboration with existing and prospective customers as well as key third parties, consultants, and trade partners. Important in the past, the product launch has emerged as the defining event for the enterprise. At no other time does marketing have such a crossfunctional visibility of its role in a company, or a more direct link between its activities and to increased sales, than in a new product launch. For these reasons, a marketing services platform must enable an enterprise to capture, codify, and propagate best practices for reducing time to market for a major launch. Time to synchronize emphasizes how quickly a brand producer can marshal multichannel resources for maximum effect at the point of purchase. The synchronization of “land, sea, and air” assets of a marketing campaign means that the single voice of a brand spans the entire spectrum of the media and channels used, creating an echo effect, where the brand voice reverberates throughout the market. In practical terms, this means that brand managers collaborate with their channel partners in developing a point-of-sale experience that facilitates the buying process of customers. Time to version emphasizes the technical and logistical capacity to customize marketing programs and brand messages for particular seasonal opportunities or distribution channel partners, localize products and brands to a culture or society, or personalize offerings and brands to individuals, customer groups, or lifestyle profiles. Role of the Marketing Services Platform Speed, control, and consistency in the creation and distribution of brand resources and marketing content contribute to a successful launch. Manufacturing and distribution rely on ERP or supplychain management to speed the production and delivery of products to markets. Customer service and sales rely on CRM (customer relationship management) or SFM (sales force management) systems to speed an appropriate response to a customer request, including how to buy and use a product or service. Marketing and brand management require similar enterprise-class IT platforms to speed strategy execution— the creation, production, and delivery of brand resources and marketing content to the sales force, distribution partners, and customers. Hig h e r s p e e d t o m a r k e t e m p h a s i z e n e e d f o r g r e a t e r l e v e l s o f p r o c e s s c o n t r o l , c o l l ab o r a t i o n w i t h f i e l d o p e r a t i o n s , a n d c o n s i s t e n cy o f b r a n d - v o ic e C Y C L E METRICS The CMO of a global enterprise seeks systems and processes for reducing cycle time for marketing services while maintaining control, coordination, and consistency of the voice of the brand. T I M E 1 2 3 Time to market Time to synchronize Time to customerize From concept to channel or store shelf Multichannel resources at points of purchase Brand stories and digital services • Customer requirements • Collaborative development • Product launch • Domestic • Countries • Market segments • Localize to a culture or ethnic group • Customize to a channel, season, or aftermarket • Personalize to a customer or tribe CRITERIA CONTROL COLLABORATION CONSISTENCY BRM3step.2.4-bw © 2007 GISTICS, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 15 Business Case for On-Demand DAM and Media Services in Global Marketing Operations How do analysts quantify the value of integrated supply chains? BEYOND COUNTING BEANS GISTICS’ research of enterprise content services reveals a baseline metric for understanding economic gains: huge hard and soft dollar returns from speeding cycle times across the value-creation process. The figure below depicts several dimensions of cycle-time metrics from a digital supply-chain strategy for enterprise content. Value-creation process emphasizes the five basic phases in which firms create markets and products, find and serve customers, and prepare for the next round of development. Faster transit of these phases without compromising quality can translate into new value creation and competitive advantage. Major launches constitute one of the most important and visible events for marketing: evidence of whether an investment in marketing produced a return or not. Synchronized event-marketing debuts and reducing time to market for major launches can produce huge boosts in incremental sales. Enhanced customer value emphasizes more powerful ways of co-creating new value with customers and partners. This calls attention to the importance of content integration, a key facet of a digital content supply-chain strategy. Faster time-to-value in this context frames two factors regarding how quickly an organization realizes value from a digital content strategy. Higher productivity of staff and trade partners results from the automation of manual processes, elimination of redundant activities, and sharper insights about how to improve end-to-end processes of marketing communications. Areas of value suggest that higher productivity and faster time-to-market can translate into process improvements, reduction of fixed and variable costs, greater overall market coverage from the same level of marketing expenses, and incremental sales from faster and more complete product launches . GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... T I ME TO V A LUE UN D ERS C ORES S P EE D , Q U A L I T Y, A N D C ONTROL OF s u pp ly - c h ai n P RO C ESSES ENHANCED CUSTOMER VALUE: Multi-Vendor Solutions, Content, Digital Services NEW REVENUE: Products, Campaigns, Partnerships, Business Models Offer—market development vendor Demand creation Sales conversion Satisfaction fulfillment external market customer V a l u e - C r e a t i o n Time to Value Scenarios T1 Strategic development vendor P r o c e s s Time to market 1 T2 Time to market 2 Higher productivity • Higher productivity of staff and trade partners • Fewer steps in end-to-end processes • Elimination of redundant activity • Transparency leading to insight and improvement Cycle time gain Areas of value • Process improvement • Variable and fixed-cost reduction • Increased market coverage and faster time to market • Balance sheet enhancement TimeToValue.3.6 ©2008 GISTICS All rights reserved. Quantification of time to value often requires several analytic tools, including activity-based costing of marketing collateral, analysis of activity interactions within a particular content supply chain, and lifecycle models for digital assets. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 16 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper ................... 19 20 21 22 What types of digital files should management consider putting into an asset repository? What distinguishes various types of digital assets? What makes a computer file into a digital asset? What user functions of a digital supply-chain strategy speed the collaborative creation of digital assets as well as the reuse of these assets across multiple projects? What constitutes a corporate repository of digital assets and finalform marketing content? 18 ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 17 GISTICS SERIES//MANAGEMENT ADVISORY Int roduc t ion t o DA M SECTION II ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations What types of digital files should management consider putting into an asset repository? ALL THE BITS FIT TO PRINT OR PRESENT PACKAGING Management should consider any digital file (or digitized image) that a field-marketing executive would appreciate seeing or using as a good candidate for storing in an asset repository. The figure below depicts the four general categories of marketing materials and the four states or conditions in which most brand resources exist. Packaging includes artwork for a box or carton as well as ready-to-print use instructions, labels, and shipping containers. A consumer brand marketer would add CAD drawings and artwork for point-of-purchase displays and merchandising aids. MULTIMEDIA BRAND IMAGES Brand images consist of the most visible and, therefore, the most important type of brand resources to manage. These images may include logos and wordmarks, product photos, and illustrations—any of which may cost $500 to $20,000 to re-create if lost or misplaced. However, inconsistent brandvoice remains the greatest cost of not finding the right brand image. COLLATERAL Collateral consists of ready-to-print brochures, data-sheets, direct mailers, and newsletters. Multimedia consists of PowerPoint presentations, Flash animations, QuickTime or Windows videoclips, audio MP3s, and ready-to-use HTML pages and support graphics. FOUR CONDITIONS GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Any reusable file may exist in any of four conditions: final-form PDFs, use-as-is media parts (photos or images formatted for a particular medium and dimension or recorded audio files), editable documents or media files (PowerPoint presentations, Word documents, Photoshop images, etc.), and source digital assets (from which all marketing materials derive). Any digital document or reusable file that marketing might use in a collaboration with ad agencies, PR firms, field sales, or channel partners BRAND IMAGES • Logos and wordmarks • Product photos • Illustrations Final form materials • Direct mailers • Newsletters • Instructions • Labels • Regulated copy Re-use “as is” media parts Editable documents and media parts • Brochures • Data sheets • CAD drawings Source digital assets MarcomAssetTypes.1.5bw © 2007 GISTICS All rights reserved. COLLATERAL PACKAGING MULTIMEDIA • Animations • Audio MP3s • Presentations • Video clips • Webinars Marcom digital asset repository ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 18 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What distinguishes various types of digital assets? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Inventory Of Digital Assets A digital asset management strategy optimizes the creation, Asset type Education assets Information assets use, reuse, and reexpression of the following types of digital objects: Description Sources Online courseware optimized for the connative and cognitive abilities of individual students; often represents compound media and knowledge objects Subject-matter experts, teachers, and communities of practice or expertise; lectures, courseware, classroom discussions, probefurther links and references, lab notes, footnotes, annotated bibliographies, interviews, audio and video recordings of performances •Database-served Production data systems of record, data warehouses, and database information services •Customer records Rows and columns of structured data conditioned and engineered for secure presentation through a browser Units of work –Web pages –JIT documents/PDFs •Streaming media Audio, video, animation •Shared objects 2D/3D models, maps, visualizations •Discussion Teleconference, threaded postings, live chat Transactions, interactions •Product data Sales histories, forecasts, pricing, inventories Comments •Specialized user interfaces optimized to learning process of individuals •Complex systems required for managing royalties, attributions, institutional rights, and international clearances •Hotspots: English as a second language (ESL) curriculum teaching, brand management, and technical systems support •Prerequisites of database hygiene and trained information users •Robust data typing schema (XML) •Management information Budgets, financial statements •Brand resources Subscriptions, traffic, dwell-time interactions IT assets Tangible and intangible assets including computing and communications equipment, installed software, capitalized professional services, systems and software configurations, warranty coverage, and business-continuity services MIS/IT departments of the firm as well as ASPs/MSPs or co-located equipment Collections of unstructured data in digital formats (binary large objects, BLOBs) and physical formats (mechanical devices, models, props) Knowledge workers throughout the firm and its value chain of suppliers, distributors, and affiliates •Digital formats – – – – – – – Knowledge assets Media assets •Metadata •Installed and configured hardware or software •Promised/guaranteed service- level agreements CAD files eDocs, PDFs Email, WP files Scanned images Slide presentation files Spreadsheets Web pages, interfaces DAM solutions for IT assets: •Configuration management •Policy management •Update management and version control •Identification and retrieval of only useful materials •Searching the contents of digital files •Digitization and characterization of material; application of metadata •Rights and permissions management •Physical formats – – – – – – – Components used in brand resources (ads, brochures, Web sites), publications, and entertainment products (music, voice, video) Designers, producers, authors, and developers of print, broadcast, online, and media-based products or services Artwork, artifacts Business records Letters, faxes Manuscripts, sheet music Maps, drawings Movies, stills, film Props, costumes •Ads – Online – Broadcast, CATV – Print •CD, DVD, cassettes •Documents, publications •Reusability of media across multiple media •Cross-platform compatibility •Rights and permissions management – Online, eDistributed – Print, ePrint Social assets Software code assets Digital files or packets that mediate or facilitate person-toperson communications, live or time-shifted (store and forward) Conversations or correspondence by telephone, email, fax, or SMS •Messages •Threaded discussions •DAM interfaces to unified messaging systems •Search tools including voice mining, audio pattern recognition, semantictext patterns Reusable pieces of software programming (objects), class libraries, programming frameworks, lines of legacy programming instruction, and automation scripts MIS/IT professionals, contractors, software vendors, and open source user groups •Software objects, including source code •Class libraries and frameworks •Programming tools and utilities •Integrated development environments •Standards-based development (Java) •Reuse starting with design spec for “maintainability” (minimum documentation as to function) •Incentives, design rules, and versioncontrol practices playing critical roles ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 19 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What makes a computer file into a digital asset? benefits of reusing those few masterworks they could easily commission each year. The figure also illustrates key concepts of a digital asset. A digital master represents a multipurpose reusable digital file with embedded metadata derived from four systems or tools: • Authoring tools to create the file • Business systems to manage accounting and intellectual property rights • Digital asset repositories to manage the file with its metadata and creation workflows • Cross-media publishing systems to use or express the digital master in a finished work Adobe Systems‘ open-source initiative facilitates the creation of digital masters. Called the eXtensible Metadata Platform, or XMP, it provides a powerful and extensible way of embedding metadata in files. This platform allows one party to copy a digital master to a second party, enabling recipients to get the file and embedded metadata in a way that their business systems or asset repositories can immediately recognize and import. Engineered for reuse and reexpression A thorough audit of the digital files that a firm creates reveals that only a small percentage of those files have a reasonable potential for reuse. Yet GISTICS’ research of thousands of media-producing firms reveals that the systematic reuse of preexisting media and related digital objects can significantly reduce costs, errors that necessitate reworks and make-goods, and timeto-market cycles. For a few firms, an enterprise-wide reuse strategy hinges on a particular type of digital asset—the digital master. As the name suggests, it represents a file on which its creator expended extra effort to provide for the highest levels of reuse. In this context, a reuse strategy turns on three prerequisites. First, potential users must be able to quickly and easily locate and retrieve the file, necessitating a robust search capability. Second, the creators must optimize the file for broad reuse by a range of users. Third, the owners of the m e t ada t a t r a n s f o r m s r e u s ab l e digi t a l f i l e s i n t o a s s e t s file must take measures to protect their intellectual property rights—their investment in creating and managing the file for reuse Creative applications by others. Authoring tools GISTICS FI LE AT CON TR TE IB NT UT S ES AN D AN FI D LE W AT OR T KF RIB LO UT W ES DA TA E TA D ATA NS Publishing systems ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 20 M IO NS AT IO IC PT IF RI PEC SC S DE AL B IC JO CHN TE D Whether it resides in the file header, alongside the content file as an XML “stub” (text file) or in a DAM system, metadata unlocks the economic value of digital assets. TA D ATA E M CONTENT DATA AN Corporations spend billions on the development of artwork and brand-related material. In many cases, the owners of these brand resources cannot envision others reusing their finished works and direct their design firms and internal creative-services departments to create lessreusable digital objects (oneshots). The figure to the right depicts several important concepts about the reuse of digital assets. While only a small percentage of all creative work warrants the investment to create digital assets, most corporations do not realize the economic Business systems SS NE A SI AT BU D S, ING ON T SI UN IS O M CC ER A , P ND TS S A GH LE RI RU the digital ASSET GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Asset repository DigitFileNexus.1.5bw ©2009 GISTICS, All rights reserved. .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What user functions of a digital supply-chain strategy speed the collaborative creation of digital assets as well as the reuse of these assets across multiple projects? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... USER GROUPS AND FUNCTIONS OF DAM USERS OUTSIDE CORPORATE SECURITY PROVISIONS A digital asset management or DAM system serves three basic user groups within enterprise operations. The figure below depicts various types of users within the three broadly defined user groups and the core functions of a DAM system. A repository of digital assets often serves hundreds or thousands of users outside the security perimeter and firewalls of corporate IT operations. Thus, security and identity management become another vital point in selecting the right solution. As a matter of meeting market requirements, most DAM solution providers meet or exceed all criteria for security and identity management for commercial clients in regulated industries; some DAM solution providers meet the most stringent requirements of Department of Defense and supersecure military operations. THREE GRO UPS O F U S ER S The three general groups of users served by a repository of digital assets become a vital point in selecting the right solution. Each user group (and often unique types of users within a group) will require customized user interfaces. Not all DAM systems enable or support the high degree of customization that global content services require. This requirement will become critical when provisioning DAM and related media services to non-technical users within a large organization, international offices, and suppliers throughout a content supply-chain. CRITICAL GLOBAL BUSINESS REQUIREMENTS unification with collaboration and workflow This paper outlines a general strategy for integrating digital supply-chains for enterprise content. This means that the digital asset management function must integrate with other content management systems (Web, documents, business records) as well as collaboration and project management systems. The unification of collaboration platforms with a DAM delivers numerous synergies and accelerators throughout the digital content supply-chain. GISTICS’ research of global content operations has identified the following selection criteria as essential: • User interface: Optimizations D A M SER V ES A D I V ERSE G ROU P OF USERS for multiple user types, including creative, marcom USERS OF DIGITAL ASSETS AND FINAL-FORM CONTENT staff, field sales, and superuser administrators. CONTENT CONSUMERS CONTENTCREATORS USERS CONTENT CONTENT USERS • Multilingual: Support for major • Agencies • Marketing • Distribution languages common to Europe • Graphic designers • Sales • Press and analysts and Asia. • Photographers • Training • Public • Multimodal search: Simple • Publishing group • Trade partners and advanced modes including • Video producers • Web specialist searches within search results (also known as drill-down search) and dynamically updated presorted collections (everything related to a brand or market region, categorized in a collection). • Rights management: Full protection for multiparty copyrights and trademarks, especially important if a firm licenses rights-protected imagery, video, or music. FIND Moreover, reuse of film, video, • Attribute and music often entails a • Keyword country-by-country clearance • Business relation and royalty payment scheme. DAM repositories must provide multiple user interfaces, metadata views, and user permissions, addressing user requirements of various user classes and individuals. Digital Asset Repository VIEW • Collections • Albums • Online/ offline • Project or transaction data ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY INSPECT • Zoom • Crop/ frame DOWNLOAD ANNOTATE • Check out • Open across network • Place FPO • Translate format •Decompress DAM.Reposit_functions.2.6bw ©2007 GISTICS All rights reserved. ROUTE • “Sticky • Actions notes” requested • Email • Signoffs • File header data ARCHIVE ADMINISTER • Store and restore near-line and offline volumes • Bulk catalog • Indexing workbench • Pick’n’pack fulfillment for CD-ROMs, cassettes, film BASIC REPOSITORY FUNCTIONS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 21 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What constitutes a corporate repository of digital assets and final-form marketing content? LARGE MULTIMEDIA DATABASES LIFECYCLE FOR DIGITAL ASSETS Broadly defined, a corporate asset repository manages large collections of rich media, information, and other types of digital assets. Access to this database enables a variety of knowledge workers to find, retrieve, edit or amend, or route files (or secured access to a file) to another knowledge worker or group. The term rich connotes a complex file type that may contain multiple structures (color, complex layouts, typographic design), motion graphics (video, audio, or animation), and large quantities of data with many gigabytes. A corporate asset repository augments the functions of data warehouses, document management systems, and Web content managers—characterized in the figure below as legacy data sources. The figure below also depicts a portion of the lifecycle through which most digital assets move: create, manage, distribute, and consume. The CREATE phase entails the design and production of media or the editing and reuse of preexisting media. The MANAGE phase involves a generally small administrative team that collects, catalogs, and organizes reusable media or final-form, use-as-is content. The DISTRIBUTE phase involves search and review by hundreds or thousands of different users with permission to access the corporate repository. The CONSUME phase involves the download, decryption, local storage, and play, print, or insertion of final-form, use-as-is content (photos or images sized and formatted for a specific medium). GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... C OR P OR A TE A SSET RE P OS I TOR I ES P RO V I D E A FOUN D A T I ON FOR A UTOM A T I N G D OZENS OF M A R K ET I N G O P ER A T I ONS T A S K S CREATE MANAGE DISTRIBUTE CONSUME Digital asset creators and brand stewards media services platform Brand resources and final-form marketing content media consumers Corporate identity Media automation applications Agencies middleware Creative services Publishing services Technical illustrations enterprise asset repository RDBMS Licensing/ clearances (metadata storage) Trade partners middleware Print • Advertisements • Collateral • Inserts • Outdoor • Publications • Point of purchase Broadcast • TV/CATV • Radio • Digital/HDTV • Event Customers InVestors & AnAlYsts online • Web • Intranet/extranet • CD-ROM • Kiosk trADe PArtners hard goods • Packaging • Merchandise • Licensed products • Apparel/uniforms emPloYees & PuBlIC Publications legacy data sources ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 22 GISTICS external suppliers CorpMediaRepository.E.1.7 ©2007 GISTICS All rights reserved. .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper ................... ................... SECTION III SERIES//MANAGEMENT ADVISORY ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DA M S t rat egies f or Market ing Opera t i o n s PAGE ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: 24 What is an AV media logistics center? 25 What is a multimedia presentation center? 26 How can an inside salesperson in a lare firm rapidly acquire sales presentations and videos for an online sale pitch meeting, saving $29,899 per year? 27 What is the value of saving one hour a week for 500 field sales executives? 28 What are the key elements of on-demand delivery of DAM? 29 What type of system will a firm need to automate the global delivery of marketing materials, sales presentations, and training to field staff and partners? 30 How can activity-task automation speed final-form marketing content to market and lower costs, unlocking the full value of multipurposed digital assets? GISTICS 23 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What is an AV media logistics center? ONLINE COLLATERAL STORE Business Case for Collateral Store Marketing departments spend hundreds of billions of dollars developing and distributing brochures, data sheets, slide show presentations, and other collateral to their sales forces, distribution partners, and prospective partners. In most cases, the marketing department provides these materials at little or no cost. In a few instances, they may charge for materials or debit a co-op fund. Typically, a marketing department provides print and electronic collateral to the following parties: • Account representatives • Inside sales • Teleservice representatives at regional call centers • Dealers and retailers • Advertising and promotional agencies working with their dealers and retailers • International distributors and agents • Affiliated websites and Web development teams • eTailers • Corporate web sites and intranet developers Many vendors market regularly updated products into the consumer, industrial, or business-to-business markets (cars, appliances, apparel). This practice often creates a tightly bound selling window of weeks or a few months. Each day that a marketer delays in getting promotional material or sales collateral to the front line translates into lost sales— sales that will disappear and likely not ever occur. For example, if a software vendor sells $100 million of its products into international markets and versions its product every 12 months, it will have an effective selling window of eight or nine months. Few customers will buy, install, and configure a software product with only three or four months left in its revision cycle; they will wait for the new version. If this vendor reduces the time it takes to get marketing materials in their appropriate forms to international partners by two weeks, this cycle-time improvement translates into more than $3 million in increased revenue—99 percent of which constitutes profit for this category of low-cost-ofgoods, high-selling-price product. Other examples of high payback derived from cycle-time reductions of marketing collateral abound. They include supplying promotional materials to retailers for special holiday and weekend sales and inventory closeouts, as well as numerous co-branding and co-marketing opportunities and highly discounted spot market advertising and directmail opportunities. Any one of these parties may have a pressing, short-term, and usually opportunity-based need for selling materials. Getting the right material to the right person at the right time defines the charter for the corporate collateral eStore. Integrated Logistics and Fulfillment GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... The corporate collateral eStore o n l i n e c o l l at e r a l s t o r e s c o n n e c t f i e l d o p e r at i o n s t o links demand to its p r o m o t i o n s a n d g l o ba l f u l f i l l m e n t c e n t e r s base of suppliers that may provide digital or physical objects. Promotions Center Digital Departmental or Ideally, the collateral eStore Producers Outsourced eService Advertisements Broadcast buys materials from external Materials • Insert your logo Corporate AV suppliers only after receiving an • Domestic formats • TV spots Marketing • International formats order for specific collateral pieces. •Event openers & Agencies intermissions Communications This timeframe highlights the Brand Identity •Corporate "B" need for a just-in-time assembly or Creative • Business forms roll materials replication facility linked to an services • Signage • Radio spots order processing and a pick-and• Logos & wordmarks • Special effects pack fulfillment capability. Video post• Placement rules production Brand Such an operation requires a asset complex, sophisticated extranetAccount repository Web based application—an opportunity reps developers now targeted by DAM solution Inside sales vendors and application service CorpMediaFulfillment.1.2 providers using DAM tools © 1999 GISTICS All rights reserved. Call center TSRs to deliver enhanced service. Fulfillment Center Web The magnitude of demand for External Dealers/ viewer JIT Assembly/ Order Fulfillment collateral development and Suppliers Retailers Replication Processing Logistics fulfillment will drive this category Promotion DIGITAL • Imprint/emboss •Chargebacks •Pick 'n' pack agencies to emerge as one of the largest and •Software • Silkscreen – Co-op fund • Bill of materials applications most rapidly growing in the DAM •Slip sleeves – MDF account • Backorder International Etailers • Clip art • Mastered – Sales territory • Packaging market. distributors HARD GOODS • Merchandise – Clothing • Specialty items – Cups – Pens reproduction – CD-ROM – Audio CD – DVD – Videocassette – Audio cassette – Posters ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 24 GISTICS – Product group • Card charges – Mastercard/Visa – AmEx Affiliated websites • Freight forms preparation • Export license processing – Smart card Physical Fulfillment .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What is a multimedia presentation center? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Reference and Presentation Library Functions Business Case for Reference and Presentation Library Companies can offer a reference and presentation library through a DAM-enabled repository. The figure below depicts how a sales support and field operations group uses a centralized brand asset repository to better serve field executives and channel partners. The library contains prebuilt presentations that address a spectrum of market needs: corporate overviews, product offerings, customer success stories, industry data and analysis, discussion of policies, and training materials. The library also manages a collection of collateral that may include annual reports, data sheets, and white papers— all suitable for one-off printing from a laser printer, a shortrun digital press, or traditional offset printing. The library will organize for speedy retrieval a host of media assets, both static and dynamic, including animations, audio clips, charts and illustrations, photographs, and video clips. The library may contain prebuilt templates for popular media composition tools such as Adobe Illustrator, Microsoft PowerPoint, QuarkXPress. For companies that have secured appropriate site licenses, the library will contain downloadable software applications and licensed/for-sale items such as characters, music, and reports. This library delivers the highest return on investment for sales organizations with short windows of opportunity and long-term revenue streams that derive from those opportunities, such as pharmaceuticals, semiconductor parts, and subscriptions. For companies that have annually updated products such as software, the ability to propagate sales materials to the global network of resellers pays handsome returns. For vendors that must promote around seasonal events and unpredicted topical happenings, the library enables a field organization to swarm a market and capture short-lived and one-shot opportunities—incremental sales with very little added cost. H o w a r e f e r e n c e a n d p r e s e n t a t i o n l ib r a r y c r e at e s m o r e f ac e - t o - f ac e t i m e w i t h c u s t o m e r s DIGITAL PRODUCER Agencies Creative services REFERENCE AND PRESENTATION LIBRARY DEPARTMENTAL SERVER Sales support and operations Product marketing Corporate partners Market analysts Presentations Collateral Media Assets • Corporate • Customer successes • Industry • Policy • Product • Annual reports • Brochures • Datasheets • White papers • Animations • Audio • Charts • Illustrations • Photos • Video clips Application Templates Software Licensed/ For Sale • Illustrator • Flash •PowerPoint • QuarkXPress • Rainbow Corporate brand asset repository •Database • Media assembly and editing • Office • Reports •Software Publications Corporate intelligence CorpMediaSales.1.4bw ©2007 GISTICS Incorporated All rights reserved Client office Events Web sites ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY FIELD SALES .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 25 Business Case for On-Demand DAM and Media Services in Global Marketing Operations How can an inside salesperson in a large firm rapidly acquire sales presentations and videos for an online sales pitch meeting, saving $29,899 per year? G u id e d s e l f - s e r vic e acc e s s c o n s t r ai n e d t o app r o v e d a s s e t s r e d u c e s s a l e s s u pp o r t d e m a n d s , m ai n t ai n s a u n i f i e d s a l e s m e s s ag e , a n d i m p r o v e s t h e q u a l i t y o f c u s t o m i z e d s a l e s c o l l at e r a l Locate presentation Download and review for accuracy Locate product demo video Download video 240 times per year @ $65 0 10 20 30 0 10 20 30 40 50 60 70 80 90 60 70 80 90 AUTOMATION SAVINGS ACTIVITY LABOR TASKS Locate presentation Download and review for accuracy Locate product demo video Download video Rework minutes Total minutes Labor cost total MATERIAL COSTS CD duplication List management Packaging Postage Handling Freight Bandwidth Storage Storage media Misc. Total per piece Total per month ANNUAL COSTS Images per year Annual labor hours Annual labor costs Annual material costs Total annual cost SAVINGS Annual labor hours Annual cost 40 MANUAL 50 AUTOMATED = per hour and $0 2 days improved time to market per month + $29,899 in materials and annual savings freight per distribution GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... NOTES (minutes) 30 2 Find presentation on network or a specific workstation–ask colleagues Multi modal DAM search interface provides quick file location 15 0 Copy file to workstation, open and review to ensure correct version Thumbnail search results and metadata ensure correct file is selected 30 2 Find video on network or offline tape library, ask colleagues Full video search provides quick asset location 15 1 Copy entire video file and view to ensure correct file Quicktime preview ensures correct file is selected 30 120 $130.00 0 5 $5.42 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.0020 $0.0001 $0.00 $0.00 $0.00 $0.04 Physical manufacturing from master CD-ROM 240 480 $31,200 $0 $31,200 240 20 $1,300 $1 $1,301 Number of image requests per year Minutes spent repeating tasks due to errors $65/hour–fully burdened cost Access charge by list management firm Padded envelope Standard first-class USPS rate Outsourced to lettershop fulfillment firm Physical parcel shipping Download of assets Cost of occupied bytes on server storage system Cost of removable storage media (archive) 20 sales meetings per month Number of labor hours expended on this activity per year Hard dollar savings 460 $29,899 A.C.Sales.preso.video.1.1bw ©2007 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 26 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What is the value of saving one hour a week for 500 field sales executives? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... HARVARD BUSINESS SCHOOL STUDY According to the prestigious Harvard Business School study of industrial selling practices, a sales executive who makes one additional call per week to a baseline number of calls, yields a substantial increase in incremental sales. In one documented case, one additional weekly sales call produced $3.2 million in new sales. The figure below depicts a fully developed reference and presentation library. The retrieval function of a marketing content repository should include the ability to retrieve individual slides within a presentation deck. This singleslide search function can double the productivity of a repository lacking such a feature. A S A LES E X E C UT I V E C A N RE I N V EST T I ME S A V I N G S TO M A K E ONE MORE M A J OR A C C OUNT C A LL P ER WEE K REFERENCE & PRESENTATION LIBRARY DEPARTMENTAL SERVER Sales support and operations Presentations Collateral Media Assets • Corporate • Customer successes • Industry • Policy • Product • Annual reports • Brochures • Datasheets • White papers • Animations • Audio • Charts • Illustrations • Photos • Video clips Application Templates Software Time to prepare ONE new major account presentation per month MANUAL AUTOMATED 1.25 vs. 0.33 hours hours Times •Database • Media assembly and editing • Office • Illustrator • Flash • PowerPoint • QuarkXPress • Rainbow Corporate brand asset repository 500 Licensed/ For Sale • Reports •Software salespeople @ $150 per hour 750 days of labor per year or $900,000 Client office in annual labor savings + Events FIELD SALES Web sites 1 Day time-to-market reduction per major launch Sales.Exec.Pres.lib.1.3bw ©2007 GISTICS Incorporated, All rights reserved. ACTIVITY Locate base presentation Locate and place product/ feature images and diagrams Acquire and place prospect and partner logos TOTAL MINUTES MANUAL AUTOMATED 15 5 50 15 10 0 75 20 NOTES Multimodal search function of DAM reduces time to identify the right asset Thumbnail previews and textual descriptions (metadata) ensure correct file downloads Partner and prospect logos already prepared and resident in DAM Sales.Exec.Table.1.2bw ©2007 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 27 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What are the key elements of on-demand delivery of DAM? WORKFLOW AUTOMATION OF MARKETING ACTIVITIES On-demand delivery of DAM enables the progressive deployment of technical systems that automate activities and tasks performed by one or more members of a marketing department. The figure below depicts four key elements of an on-demand DAM system. Marketing resource producers commission, design, produce, or license digital, print, or audio-visual materials. An on-demand DAM system provides all of these actors with web browser-access to portions of the system and related services. Digital asset repositories provide centralized management of reusable material—digital assets. The repository keeps track of who uses what as well as who changed or modified a particular photo, image, document, or other digital file. The repository also enforces certain business rules—such as rights and permissions—controlling who can access, modify, or use an individual digital asset. The infrastructure of an on-demand DAM offers levels of security often unattainable with internally deployed systems, middleware for integration with other services such as business rules, distributed storage, and a metadata directory that facilitates searches, as well as rights management. The on-demand DAM suite of servers provide a platform for the creation of consistent brand-marketing messages through the collaborative sharing of assets among the entire marcom supply chain. It also allows the presentation, distribution and selling of that message around the world, 24x7 with executive presentation services and e-storefronts. BUSINESS RESULTS FROM an on-demand dam A hosted digital asset management solution simultaneously accomplishes two business ends: faster cycle time for the delivery of marketing services and lower costs realized through labor reductions and fewer external expenses. 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FOUR S Y STEM C OM P ONENTS P RO D U C E F A STER C Y C LE T I ME A N D C OST RE D U C T I ONS FOR A M A J OR L A UN C H BRAND AND MARKETING MANAGEMENT Corporate creative services Advertising and marketing agencies Marcom Asset inventory + skjfsjfsj sfjskfsj cvpftrlk + Document management Graphics server Faster cycle time Web content management e-Commerce server • Control • Coordination • Consistency Fixed-form content management Publishing and documentation Collaboration content management skjfsjfsj sfjskfsj cvpftrlk Licensing agencies Content distribution network Trade partners MarkServPlatElemenlts 1.4 ©2009 GISTICS, All rights reserved. MARKETING RESOURCE PRODUCERS • Digital assets and content • Published materials • Audio-visuals DIGITAL ASSET REPOSITORY GISTICS + Portal server Collaboration server Webinar server • Check in/out • Distributed • Version control • Storage • Real-time • Business rules • Security • Business rules (rights and permissions) • Business rules = Cost reduction • Labor • Materials • External cost Video server ENTERPRISE CONTENT MANAGEMENT MEDIA SERVERS (automated tasks) (workflow) ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 28 Document server IT INFRASTRUCTURE .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What type of system will a firm need to automate the global delivery of marketing materials, sales presentations, and training to field staff and partners? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Enterprise-Class DAM The figure below depicts several key functions of an enterprise-class DAM system. Reuse standards entail aligning creative services and marketing communications agencies to produce reusable and reexpressible material—digital assets, not just content. This alignment requires a combination of incentives, training, user support, and advocacy by trusted and respected members of the various media-producer constituencies. Often the professional-services group of a DAM vendor becomes the change-management facilitator, imparting best practices, studio guidelines, and training curricula. Metadata standards for an enterprise means full support for all industry standards, such as PRISM, SCORM, or Dublin Core. Metadata typically includes keywords, numerical values, and other alphanumeric text strings that describe a particular asset, its origins, and the rules for using the asset. Most DAM systems facilitate the management of some portion of metadata required by the enterprise. However, when an asset leaves the DAM system, most of the metadata does not accompany it. Here new technologies and DAM system designs converge to solve the absence of portable metadata. First, the DAM system must support XML-tagged metadata—an enhanced database function. Second, the DAM system must support multiple metadata standards, not just one. These metadata standards often use different tags (such as Author, Creator, Composer, or Artist) to describe the same data item. Third, the DAM system must link common elements of these various metadata standards to eliminate duplicate data items. Fourth, the DAM system must incorporate new metadata standards such as Dublin Core, SCORM, PRISM, and +BRV without disturbing existing metadata schemas (tags) or data items. For these reasons, an enterprise-class DAM system must support a metadata container—have a sophisticated database function for supporting all current and future metadata standards. Asset repositories must manage more than just images and photos. An enterprise-class DAM system must support hundreds of file formats and data types, including static images (photos, digitized images of business records), dynamic graphics (animations, music, sound effects), simple text-only documents, complex or compound documents (QuarkXPress, PowerPoint, InDesign), knowledge assets (CAD drawings, annotated 3-D objects), and myriad other types. An enterprise-class DAM system will also provide a plug-in architecture for customized filters for exotic file types. Lacking this architecture, an enterprise-class DAM system will leave large portions of a potential user body unsupported. Retrieval engines must go beyond keywords—data items that the creator or archivist attached to each digital asset. An enterprise-class DAM system must integrate keywords with visual and audio search by example. These advanced search technologies use visual and audio vocabularies, enabling users to click and retrieve items by visual or sonic similarities. Production data sources include accounting, inventory and rights management. Image servers must support dynamic, just-in-time production of purpose-built files. However, an enterpriseclass DAM system must integrate these image servers as a repository function (check-in/out and version control) that the firm can distribute across the network and at locations nearest to high-volume users or Web servers. t e c h n ica l da t a m o d e l f o r m a r k e t i n g c o n t e n t s t r u c t u r e s Reusable file Metadata container OFF OFF ON OFF OFF OFF OFF OFF OFF OFF OFF OFF Asset inventory Search Live data Dynamic imaging • File attributes • • • • High-res for print Workflow status Subject matter Keywords Business rules • Metadata • Visual patterns and attributes Medium-res for slides Low-res for Web • Profile, credits OFF DigiMasterResources.1.2bw ©2007 GISTICS Incorporated All rights reserved. OFF OFF OFF ON REUSE STANDARDS METADATA STANDARDS • PRISM • Dublin Core • SCORM DIGITAL ASSET REPOSITORY PRODUCTION DATA SOURCES IMAGE SERVER • Check in/out • Version control • Business rules (rights and permissions) ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY RETRIEVAL ENGINE .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 29 Business Case for On-Demand DAM and Media Services in Global Marketing Operations How can activity-task automation speed final-form marketing content to market and lower costs, unlocking the full value of multipurposed digital assets? Dynamic Imaging Of Digital Assets The figure below depicts one possible scenario for generating dozens or even thousands of purpose-built promotions from one digital asset. In particular, the scenario emphasizes the localization of a promotion for three separate formats: a high-resolution graphic for a printed sell-sheet, a medium-resolution graphic for a presentation slide, and a low-resolution image suitable for a Web page. The digital asset shown below consists of a potentially huge, multilayer digital file created with de facto industrystandard tools such as Adobe’s Creative Suite. Most of the individual layers in a digital file contain text for a particular market, season, or customer. In the example below, a single digital asset can produce final-form images in the Spanish and English languages. The layers may contain identical, modified, or altogether different images of the car. Each version could contain alternate colors, special car accessories, promotional messages, a spokesperson of a particular ethnicity or lifestyle, or different background textures and colors. The digital repository of an enterprise content management system catalogs each layer of the asset, potentially thousands of elements embedded in or linked to the digital asset. This linkage enables a firm to produce a variety of outputs (PDFs, Web pages, or RGB images suitable for a slide presentation) in three ways: • A graphic designer can search an asset repository for the appropriate components and have the system dynamically assemble the desired page or graphic. This capability would potentially free 100 to 200 hours of the graphic designer’s time per year—time that the designer might otherwise have to spend to create each item. • A field sales executive could log onto a marketing content repository using relatively low-speed Internet access. He or she would search by keyword or by an example selected from a visual vocabulary that includes groups of similar-looking items. Having identified those elements necessary to build a flyer or slide, the field sales executive clicks a “Build it now” button on the Web page. This scenario represents a dramatic reduction in time to market for promotional messages and channel support materials. • A prospective customer at a commerce Web site could identify a sales coupon, promotional poster, or photo of interest. After the customer enters a few descriptive data items, the media server could retrieve and publish the desired item, inserting into the graphic the latest pricing information or information provided by the prospective customer (name, model number). This type of selfservice approach provides the same sort of cost savings as mentioned above without a designer or salesperson having to render the service. Each of these three scenarios represents an opportunity for dramatic cost reductions and time-to-market acceleration. GISTICS’ analysis of localizing activity for a promotion such as that illustrated reveals that it takes approximately 93 minutes using manual means versus 13 minutes using a marketing content repository media server. Automating this single activity can produce $31,200 in annual labor savings and a three-day reduction in time to market for a major product launch. GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... M e dia s e r v e r s t r a n s f o r m a m u l t ip u r p o s e d digi t a l a s s e t i n t o a s e l l i n g i m ag e i n a f r ac t i o n of the time of manual production means Spanish version ESPECIAL ¡Solamente hoy! High-res for print Medium-res for slides Low-res for Web 93 English version SPECIAL Today only! MANUAL High-res for print Minutes AUTOMATED vs. 13 Minutes Medium-res for slides Low-res for Web DIGITAL ASSET ACTIVITY TASK OUTPUT CYCLE TIMES ManvsAuto.1.0bw ©2007 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 30 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper ................... 33 34 What are the total lifecycle costs for workgroup-class DAM, comparing costs of office deployment of DAM versus an on-demand DAM service? What are the total lifecycle costs of departmental DAM, comparing costs of an internally deployed DAM versus on-demand delivery of DAM? What are the total lifecycle costs of large enterprise DAM, comparing costs of internally deployed DAM versus the on-demand deliver of DAM? 32 ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 31 GISTICS SERIES//MANAGEMENT ADVISORY Sol ut ion L if ecy c le: Tot al C os t of Ow ne r s h i p SECTION IV ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations What are the total lifecycle costs for workgroup-class DAM, comparing costs of office deployment of DAM versus an on-demand DAM service? WORKGROUP-CLASS DAM User Base: 20 creative users and 250 local-network consumer users. Outsourced solution can serve globally distributed users STARTUP DAM Software - Internal Deployment YEAR 1 APPLICATIONS & SOFTWARE 2-month deployment YEAR 1 NOTES DAM software licenses / Outsourced platform setup fee $18,000 Server Operating system licenses SUBTOTAL Outsourced DAM Services Solution $800 2-week deployment NOTES License fees for DAM system software $5,000 License fees for server operating systems N/A $18,800 Solution setup fee No licensing fees - integrated platform $5,000 LABOR & CONSULTING NOTES Strategy, design, and implementation project management $25,000 Planning, budgeting, tracking and project management Internal technical staff - configuration $28,800 2 months, .75 FTE at $120/hour N/A No internal development resources required 16,000 2 months, .25 FTE at $200/hour N/A N/A $16,000 2 week project, 1 FTE at $200/hour N/A Standardized metadata model templates provided $6,400 2 week project, 1 FTE at $80/hour DAM vendor professional services - consulting firm Taxonomy & metadata schema - consulting firm User training SUBTOTAL NOTES $1,200 $92,200 HARDWARE & NETWORK INFRASTRUCTURE $4,000 $9,000 Dedicated storage hardware $15,000 1 day training, 1 FTE at $150/hour $5,200 NOTES DAM software servers Planning, budgeting, tracking and project management GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... NOTES 4 DAM servers, $4,500/each N/A No hardware setup costs - integrated platform 500 gigabytes - additional network storage N/A No hardware setup costs - integrated platform SUBTOTAL $24,000 $0 TOTAL STARTUP COSTS $135,000 $10,200 OPERATIONS 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 $3,300 $3,600 $3,600 $10,500 N/A N/A N/A N/A $0 $0 $8,000 $8,000 N/A N/A N/A N/A N/A N/A N/A N/A $28,800 $28,800 $28,800 $86,400 $3,300 $3,600 $11,600 $18,500 $28,800 $28,800 $28,800 $86,400 Portion of workgroup manager’s time $35,036 $38,220 $38,220 $111,476 N/A N/A N/A N/A Software support and maintenance $64,682 $70,560 $70,560 $205,802 N/A N/A N/A N/A Asset ingest, indexing and error correction $13,475 $14,700 $14,700 $42,875 $13,475 $14,700 $14,700 $42,875 $113,194 $123,480 $123,480 $360,154 $13,475 $14,700 $14,700 $42,875 $1,375 $1,500 $1,500 $4,375 N/A N/A N/A N/A Software upgrades Outsourced service user fees SUBTOTAL LABOR & CONSULTING SUBTOTAL HARDWARE & NETWORK INFRASTRUCTURE Server hardware updates and upgrades SUBTOTAL TOTAL OPERATIONS COSTS $1,375 $1,500 $1,500 $4,375 $0 $0 $0 $0 $117,869 $128,580 $135,580 $383,029 $42,275 $43,500 $43,500 $129,275 TOTAL STARTUP & 3 YEAR OPERATIONAL COSTS $518,029 $139,475 The table above compares the total three-year costs of buying and using a workgroup-class DAM solution, delivered as internally deployed on-premises software and externally provisioned on-demand system. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 32 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper Business Case for On-Demand DAM and Media Services in Global Marketing Operations What are the total lifecycle costs of departmental DAM, comparing costs of an internally deployed DAM versus on-demand delivery of DAM? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DEPARTMENTAL CLASS DAM User Base: 65 creative users and 350 regionally-distributed consumer users. Outsourced solution can serve globally distributed users. STARTUP DAM Software - Internal Deployment YEAR 1 APPLICATIONS & SOFTWARE Outsourced DAM Services Solution 4-month deployment YEAR 1 NOTES 1-month deployment NOTES DAM software licenses / Outsourced platform setup fee $75,000 License fees for DAM system software $10,000 Application & web server software licenses $31,750 License fees for web and application server software N/A Solution setup fee No licensing fees - integrated platform Database management software licenses $11,429 License fees for DBMS software N/A No licensing fees - integrated platform Backup, archive & disaster recovery software licenses $8,750 License fees for backup and archive software N/A No licensing fees - integrated platform Server Operating system licenses $3,200 License fees for server operating systems N/A No licensing fees - integrated platform SUBTOTAL $130,129 $10,000 LABOR & CONSULTING NOTES Strategy, oversight & project management Planning, budgeting, tracking and project management Internal technical staff - configuration & customization $50,000 $153,600 NOTES 4 months, 2 FTE at $120/hour $0 $4,800 Planning, budgeting, tracking and project management 1 month, .25 FTE at $120/hour DAM vendor professional services - consulting firm $32,000 4 months, .25 FTE at $200/hour N/A No fees Taxonomy & metadata schema - consulting firm $16,000 2 week project, 1 FTE at $200/hour N/A Standardized metadata model templates provided $6,400 2 week project, 1 FTE at $80/hour User & administrator training SUBTOTAL $2,560 $258,000 HARDWARE & NETWORK INFRASTRUCTURE 4 day project, 1 FTE at $80/hour $7,360 NOTES NOTES DAM system & database servers $8,000 4 DAM servers, 2 DB servers, $2,000/each N/A No hardware setup costs - integrated platform Web servers $4,000 2 web servers, $2,000/each N/A No hardware setup costs - integrated platform Dedicated storage hardware $3,500 2 terabytes - additional network storage N/A No hardware setup costs - integrated platform SUBTOTAL $15,500 $0 TOTAL STARTUP COSTS $403,629 $17,360 OPERATIONS 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 $10,001 $15,000 $15,000 $40,001 N/A N/A N/A $0 $0 $20,000 $20,000 N/A N/A N/A N/A N/A N/A N/A N/A $64,500 $64,500 $64,500 $193,500 $10,001 $15,000 $35,000 $60,001 $64,500 $64,500 $64,500 $193,500 Software upgrades Outsourced service user fees (65 users, $75/month each) SUBTOTAL N/A LABOR & CONSULTING Program management $65,337 $98,000 $98,000 $261,337 N/A N/A N/A N/A Software support and maintenance $78,404 $117,600 $117,600 $313,604 N/A N/A N/A N/A Asset ingest, indexing and error correction SUBTOTAL $32,668 $49,000 $49,000 $130,668 $32,668 $49,000 $49,000 $130,668 $176,409 $264,600 $264,600 $705,609 $32,668 $49,000 $49,000 $130,668 $4,000 $6,000 $6,000 $16,000 N/A N/A N/A N/A $4,000 $6,000 $6,000 $16,000 $0 $0 $0 $0 $190,410 $285,600 $305,600 $781,610 $97,168 $113,500 $113,500 $324,168 HARDWARE & NETWORK INFRASTRUCTURE Server hardware updates and upgrades SUBTOTAL TOTAL OPERATIONS COSTS TOTAL STARTUP & 3 YEAR OPERATIONAL COSTS $1,185,239 $341,528 The table above compares the total three-year costs of buying and using a departmental DAM solution, delivered as internally deployed on-premises software and externally provisioned on-demand system. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 33 Business Case for On-Demand DAM and Media Services in Global Marketing Operations What are the total lifecycle costs of large enterprise DAM, comparing costs of internally deployed DAM versus the on-demand delivery of DAM? ENTERPRISE CLASS DAM User Base: 250 creative users and 5000 consumer 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 NOTES $250,000 3-month deployment 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 $31,200 7 months FT, 1.5 FTE at $120/hour DAM vendor professional services - consulting firm $112,000 7 months, .5 FTE at $200/hour $34,667 7 months, .5 FTE at $200/hour $0 Planning, budgeting, tracking and project management 3rd party high-availability network integration Consulting firm $18,000 3 week project, 1 FTE at $150/hour N/A Content & information architectures - consulting firm $48,000 3 week project, 2 FTE at $200/hour $16,000 2 week project, 2 FTE at $200/hour Taxonomy & metadata schema - consulting firm $64,000 8 week project, 1 FTE at $200/hour $32,000 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 $24.000 2 week project, 2 FTE at $150/hour SUBTOTAL $697,600 HARDWARE & NETWORK INFRASTRUCTURE Built-in solution capability $204,800 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 $200,000 Load balance, cache, fail-over hardware SUBTOTAL TOTAL STARTUP COSTS OPERATIONS $40,000 4 LB switches at $6,000 each, 2 caches at $8,000 each $328,000 $0 $1,430,100 $224,800 YEAR 1 GlobalMediaServices.1.3 ©2009 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 $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 TOTAL STARTUP & 3 YEAR OPERATIONAL COSTS $5,335,160 $1,565,343 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. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 34 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper ................... ................... SECTION V ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... A c t iv it y - A ut om at ion B enchm ark s f or Media S er v ic es P lat f or m s PAGE 36 37 38 39 40 41 43 44 45 SERIES//MANAGEMENT ADVISORY ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: How does a media services lifecycle reveal the true cost of marketing collateral? How can the automation of just six activities in a global marketing operation save $548,215 in costs and add 35 days to a typical product-sales lifecycle? How can a media services platform save $63,991 and 88 time-tomarket days in reviewing prior year’s campaigns? How can a media services platform save $123,309 and 111 timeto-market days in location of images, artwork, and style guides, a typical design activity of the marcom supply chain? How can a media services platform save $96,595 and 192 timeto-market days in acquiring digital rights clearances, a typical management activity of the marcom supply chain? How can a media services platform save $123,253 and 138 timeto-market days in sourcing a rights-cleared image for a point-ofpurchase display? How can a media services platform save $75,688 and 420 timeto-market days in acquiring needed approvals at both the local and global levels? How can a media services platform save $65,379 and 255 timeto-market days in updating a product brochure to reach six local markets? How can an on-demand MAM system save $105,034 and 79 time-to-market days in shipping a complete set of “ready to print” collateral with high-resolution artwork to global partners? GISTICS 35 Business Case for On-Demand DAM and Media Services in Global Marketing Operations How does a media asset lifecycle reveal the true cost of marketing collateral? LIFECYCLE PHASES A c t ivi t y - ba s e d c o s t i n g o f m a r c o m m a t e r ia l s r e v e a l s a n o f t e n o b s c u r e a n d e xp e n s e - l ad e n p r o c e s s ca l l e d a m a r c o m a s s e t l i f e cyc l e GISTICS defines the digital asset lifecycle as a set of phases through which an organization creates, uses, and archives a reusable digital file. The figure to the right depicts major phases and three to thirteen key activities performed at each phase. Ideation consists of those activities normally associated with concept development or communications planning. Research entails gathering facts and artifacts. Specify involves the definition of a marketing communication—the who, what, where, etc. Quantify applies rationale to the marketing communication. Write-up entails the development of a creative brief. Propose then involves a review. Authorize often entails a purchase requisition or formal budgeting device. Create phase consists of 13 activities, most identified with self-explanatory terms. The localize activity represents a deceptively simple term: localization activity may take place concurrently in 20 to 80 regional offices or agencies! We demonstrate elsewhere in this paper that digital asset management can reduce localization costs by as much as 90 percent. Manage phase consists of database administration and asset-activity analysis. This phase also requires a least one “librarian” who sets up and manages a list of search keywords and related metadata (specialized descriptions for each asset). For international operations, the manage phase multiplies in complexity due to multiple languages, file formats, and fonts. Distribute phase consists of self-explanatory activities with the exception of encrypt—the application of anti-piracy provisions such as watermarking and specialized locks or access methods. Consume phase consists of some self-explanatory activities as well as three that need definition. Version-acquire means the ad hoc formatting of a file upon downloading it; customerize entails the automated personalization or customization of file, incorporating live data from a customer database; warehousedispose deals with recycling printed or manufactured materials. Analyze phase consists of activities of asset-activity analysis and forward-correcting advice for the creation of more usable or valuable media assets. Archive phase consists of self-explanatory activities required for regulatory compliance (Sarbanes-Oxley, etc.). MARCOM ASSET LIFECYCLE MODEL BROCHURE IDEATE Research Conceptualiztion Specify Quantify Validate Propose Plan GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Review Rewrite Authorize CREATE Compose Design License Activity-Based Costing Material costs Labor costs Overhead costs Cycle time Notify Retrieve Review Annotate Approve MANAGE Upload Ingest Catalog Store Clear rights Declare Track Audit Archive DISTRIBUTE Search View Download Render Encrypt Collection Package Promote LOCALIZE Locate Plan Confirm Translate Regionalize Validate Rework Publish CONSUME Order ACTIVITY-BASED COSTING Version-acquire The figure also suggests that a closer examination of the phases and activities of the digital asset lifecycle can reveal the costs of performing (or not performing) an activity. Later in the paper, we use an approach akin to activity-based accounting to estimate the savings and cycle time gains an organization can expect from a digital asset repository. Decrypt-unlock Customerize Print-play Process royalties Warehouse-dispose ARCHIVE Query Analyze Report Certify Journal Archive Destroy ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 36 GISTICS .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper How can the automation of just six activities in a global marketing operation save $548,215 in costs and add 35 days to a Business Case for On-Demand DAM and Media Services in Global Marketing Operations typical product-sales lifecycle? GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... small savings accrue into huge gains MARCOM ASSET LIFECYCLE MODEL IDEATE Research Conceptualization 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 Collection Package Promote LOCALIZE Locate Plan Confirm Translate Regionalize Validate Rework Publish CONSUME Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose The creation of marketing materials entails hundreds of people and thousands of media components and text files. The figure to the left depicts the activity lifecycle of marcom assets; the call-outs below depict net savings for the automation of simply typical activities of an enterprise marketing operation—activities that we will analyze in greater detail in the following pages. [ $63,991 net savings [ $123,309 net savings [ [ [ for a marcom specialist who assembles print ads and collateral used in global markets, supporting annual review and next-year planning for a marketing manager who collects and sends media components and eSign templates to the ad agency, speeding the creation of new brochures $96,595 net savings for a rights specialist who clears intellectual properties of a third-party promotion, speeding approvals for global distribution among regional teams $123,253 net savings for an ad agency production artist who locates high-resolution images for reuse in a new point-of-purchase display, saving the cost of a reshoot $75,688 net savings for a regional marketing coordinator who secures approvals of 60 localized brochures, speeding the delivery of brochure artwork to local market printers ARCHIVE Query Analyze Report Certify Journal Archive Destroy [ $65,379 net savings for a regional marketing coordinator who distributes design templates and content, speeding the update of brochures for six local markets ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 37 How can a media services platform save $63,991 and 88 time-to-market days in reviewing prior year’s campaigns? Business Case for On-Demand DAM and Media Services in Global Marketing Operations MARCOM ASSET LIFECYCLE MODEL Marcom staff, agency, and CMO review print ads and collateral from previous year’s global campaign to develop messaging plans for the next quarter for one product line. IDEATE LABOR TASKS (minutes) Research Conceptualization Specify Quantify Validate Propose Plan Review Rewrite Authorize MANUAL AUTOMATED NOTES Find and retrieve 35 ads and collateral pieces for each product in line 480 35 Find ads on network and workstations; engage colleagues for assistance DAM search by product and campaign allows rapid access Find and retrieve marketing plan, creative briefs, communication plan, and market research reports 550 30 May entail extensive data analyses, requests made to staff and agencies, and updates and addenda DAM search by product, campaign, team, and publication type provides rapid access Collect, organize, and package materials 460 20 Aggregate files; draft index and instructions; burn CD or post to FTP site DAM system assigns asset to a unique collection - accessible globally Distribute package to review team 120 5 Correspond with team members; label and ship CDs or email FTP instructions DAM system messages team members with link to established collection Conduct team review, markup, and editing 390 45 Hold in-person meetings, phone conferences, extended email threads DAM system manages participant markup and nonlinear change tracking Acquire final approval; lock package 80 15 Review and discuss via email and/or phone with approval DAM system tags final collection as “approved” Reworks due to errors 160 0 Inappropriate source materials, poor versioning 2240 150 CREATE Compose Design License Notify Retrieve Review Annotate Approve MANAGE Upload Ingest Catalog Store Clear rights Declare Track Audit Archive SUBTOTAL (minutes) CYCLE TIME Calendar days required to complete LABOR COSTS ($) Chief marketing officer (CMO) DISTRIBUTE Marketing manager 15 4 AUTOMATED Locate Plan Confirm Translate Regionalize Validate Rework Publish $22.50 $75 per hour fully burdened rate $7.50 $22.50 $75 per hour fully burdened rate $37.50 Agency account supervisor $33.00 $8.25 $165 per hour billing rate Agency traffic manager $22.00 $11.00 $110 per hour billing rate Blended labor rate LABOR COSTS SUBTOTAL MATERIAL COSTS ($) Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose ARCHIVE Query Analyze Report Certify Journal Archive Destroy $10.00 $8,260 $373 Per review effort MANUAL AUTOMATED NOTES $3.00 $0 5 CDs burned by marketing manager at $0.60 per CD $34.00 $0 4 mailings at $8.50 average corporate rate Agency billing (ship, process) $75.00 $0 3 mailings by agency at $25 service fee each MATERIAL COSTS SUBTOTAL ANNUAL COSTS ($) Reviews per year Annual labor costs $112.00 $0.00 Per review effort MANUAL AUTOMATED NOTES 8 8 $66,080 Annual material costs TOTAL ANNUAL COSTS ECONOMIC GAINS ($) $0 $0 $66,976 SAVINGS $3,024 Given 125 users, 5-year cost recovery model, and $270K system cost $6,009 PERCENT $63,095 95.48% Percent reduction in costs, automated vs. manual $896 100.00% Percent reduction in costs, automated vs. manual Total material cost savings TOTAL ECONOMIC GAIN INTANGIBLE GAINS $2,985 $896 Incremental DAM utility cost Total labor savings $63,991 VALUE EFFECT 88 Days gained in time-to-market for this content per year Stakeholder service 30% More stakeholders served with this content per year Brand touchpoints 50% More brand touchpoints fulfilled by this content per year Brand consistency infractions 85% Fewer off-brand messages with this content per year Legal compliance infractions 95% Fewer compliance infractions related to this content per year ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS $10.00 $100 per hour billing rate $149.25 Represents proportional hourly rate of team involved Freight, courier, express mail Cycle time 38 $25.00 $250 per hour billing rate $221.25 Physical media (CD/DVD) CONSUME Difference based on portion of work completed by each actor $50.00 $1,000 per hour fully burdened rate Agency creative director Agency production assistant LOCALIZE Per review effort $11.25 Project specialist, contractor Search View Download Render Encrypt Collection Package Promote Time required to complete and distribute ONE collection MANUAL $100.00 GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper How can a media services platform save $123,309 and 111 timeto-market days in location of images, artwork, and style guides, a typical design activity of the marcom supply chain? Business Case for On-Demand DAM and Media Services in Global Marketing Operations GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MARCOM ASSET LIFECYCLE MODEL Marketing manager locates and collects images, artwork, logos, copy, and style guides and delivers to agency for use in developing a new collateral piece. IDEATE LABOR TASKS (minutes) Research Conceptualization Specify Quantify Validate Propose Plan Review Rewrite Authorize MANUAL AUTOMATED Locate source file candidates 240 15 Find images on network and in vendor asset stores; engage colleagues and vendors for assistance DAM search by keywords, product, and owner allows rapid access Identify correct files to distribute 120 10 Copy files to workstation and review files; diverse formats may require assistance of production personnel DAM thumbnails, previews, and metadata provide immediate identification Retrieve, format, and verify files 240 0 Format files to appropriate standards; may require assistance from production personnel Universal DAM access and system-based rendering avoid necessity of downloading and formatting files Package files for delivery 120 3 Draft identification and descriptive notes; burn CDs DAM system allows files to be tagged as members of user-defined collections while preserving unique identifiers Deliver files to agency 60 5 Burn, package, label, and address CDs for delivery to agency DAM system messages agency staff with link to established collection Confirm correct files have been delivered 60 5 Contact agency personnel via email and/or phone to confirm correct files have been delivered DAM system allows agency personnel to quickly review and message sender with acceptance/confirmation 180 20 Inappropriate source materials, identification, poor version control 1020 58 Time required to locate and distribute one set of images 2 0.15 Per one set of assets MANUAL AUTOMATED 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 Collection Package Promote LOCALIZE Locate Plan Confirm Translate Regionalize Validate Rework Publish CONSUME Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose ARCHIVE Query Analyze Report Certify Journal Archive Destroy Reworks due to errors SUBTOTAL (minutes) CYCLE TIME) Calendar days required to complete LABOR COSTS ($) Marketing manager Difference based on portion of work completed by each actor $33.75 $48.75 $75 per hour fully burdened rate Shipping personnel/admin $6.00 $0.00 $60 per hour fully burdened rate Agency account supervisor $16.50 $0.00 $165 per hour billing rate Agency traffic manager $11.00 $11.00 $110 per hour billing rate Agency designer Blended labor rate LABOR COSTS SUBTOTAL MATERIAL COSTS ($) $43.75 MATERIAL COSTS SUBTOTAL ANNUAL COSTS ($) Image distributions per year Annual labor costs Annual material costs $1.20 Total labor savings $0 2 CDs burned by marketing manager at $0.60 per CD $17.00 $0 2 mailings at $8.50 average corporate rate $18.20 $0 Per one set of assets MANUAL AUTOMATED NOTES 60 60 $113,220 $6,003 $1,092 Incremental DAM utility cost TOTAL ANNUAL COSTS ECONOMIC GAINS ($) $103.50 Represents proportional hourly rate of team involved $1,887 $100 Per one set of assets MANUAL AUTOMATED NOTES Physical media (CD/DVD) Freight, courier, express mail $43.75 $175 per hour billing rate $111.00 $0 $0 $114,312 SAVINGS $2,160 Given 125 users, 5-year cost recovery model, and $270K system cost $8,163 PERCENT $107,217 94.70% Percent reduction in costs, automated vs. manual Total material cost savings $1,092 100.00% Percent reduction in costs, automated vs. manual Re-creation costs avoided $15,000 TOTAL ECONOMIC GAIN INTANGIBLE GAINS 5% asset loss requiring re-creation of content at $5,000 each $123,309 VALUE EFFECT Cycle time 111 Days gained in time-to-market for this content per year Stakeholder service 30% More stakeholders served with this content per year Brand touchpoints 20% More brand touchpoints fulfilled by this content per year Brand consistency infractions 80% Fewer off-brand messages with this content per year Legal compliance infractions 15% Fewer compliance infractions related to this content per year ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY NOTES .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 39 How can a media services platform save $96,595 and 192 time- to-market days in acquiring digital rights clearances, a typical management activity of the marcom supply chain? Business Case for On-Demand DAM and Media Services in Global Marketing Operations MARCOM ASSET LIFECYCLE MODEL IDEATE Research Conceptualization 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 Rights specialist reviews global publicity launch kit and third-party promotional piece for digital rights clearances to acquire approval for distribution to regional marketing teams. LABOR TASKS (minutes) MANUAL AUTOMATED NOTES Locate launch kit files to review 200 15 Locate launch kit assets on network and PCs; engage marketing managers for assistance DAM search by product and campaign provides direct access to kit and all its contents Inspect files and identify all potential rights issues to investigate 315 45 List all potential rights issues to investigate for each file DAM system indicates all existing rights; only unspecified need further research Research and clear photographer rights 180 20 Locate photographer’s contracts; engage marketing and legal for assistance Existing rights defined in DAM or links to electronic contract provided by system Research and clear image owner copyrights 180 10 Locate image contracts; engage legal for assistance Existing rights defined in DAM or links to electronic contract provided by system Research and clear artwork rights 180 15 Locate artwork contracts; engage marketing and legal for assistance Existing rights defined in DAM or links to electronic contract provided by system Research and clear text claims, disclaimers, guarantees, and warranties 350 40 Locate marketing documentation; engage legal Existing approvals defined in DAM or links to marketing documents provided by system Research and clear third-party statements, research, quotes, and testimonials 515 60 Locate third-party agreements; engage legal for assistance Existing approvals defined in DAM or links to electronic agreements provided by system Finalize kit as cleared and approved for global distribution 290 10 Message all parties involved, referencing in detail which assets are cleared, via email, phone, meetings, and asset markup DAM system allows entire collection to be tagged as approved for global distribution, eliminating any further research at local levels 480 0 Incorrectly identified files, contract versions, etc. 2690 215 Time required to complete review of one kit Reworks due to errors DISTRIBUTE Search View Download Render Encrypt Collection Package Promote SUBTOTAL (minutes) CYCLE TIME Calendar days required to complete LABOR COSTS ($) Rights specialist Marketing manager Product manager LOCALIZE Legal admin Locate Plan Confirm Translate Regionalize Validate Rework Publish Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose ARCHIVE $56.25 $75 per hour fully burdened rate $7.50 $6.00 $75 per hour fully burdened rate $22.50 $0.00 $150 per hour fully burdened rate $3.25 $65 per hour fully burdened rate $10.00 $500 per hour fully burdened rate Agency account supervisor $11.00 Agency rights manager $17.50 LABOR COSTS SUBTOTAL MATERIAL COSTS ($) Physical media (CD/DVD) Freight, courier, express mail MATERIAL COSTS SUBTOTAL ANNUAL COSTS ($) Launch kit reviews per year Annual material costs TOTAL ANNUAL COSTS ECONOMIC GAINS ($) Total labor savings TOTAL ECONOMIC GAIN INTANGIBLE GAINS $5.50 $110 per hour billing rate $8.75 $175 per hour billing rate $140.75 $89.75 Represents proportional hourly rate of team involved $6,310 $322 Per one launch kit MANUAL AUTOMATED NOTES $6.00 $0 10 CDs burned by rights specialist at $0.60 per CD $42.50 $0 5 mailings at $8.50 average corporate rate $48.50 $0 Per one launch kit MANUAL AUTOMATED NOTES 16 16 $100,965 $5,146 $776 Incremental DAM utility cost $0 $0 $101,741 SAVINGS $3,024 Given 125 users, 5-year cost recovery model, and $270K system cost $8,170 PERCENT $95,819 94.90% Percent reduction in costs, automated vs. manual $776 100.00% Percent reduction in costs, automated vs. manual $96,595 VALUE EFFECT Cycle time 192 Days gained in time-to-market for this content per year Stakeholder service 50% More stakeholders served with this content per year Brand touchpoints 40% More brand touchpoints fulfilled by this content per year Brand consistency infractions 25% Fewer off-brand messages with this content per year Legal compliance infractions 90% Fewer compliance infractions related to this content per year ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS Difference based on portion of work completed by each actor $22.50 $50.00 Total material cost savings 40 Per one launch kit Legal counsel Annual labor costs Query Analyze Report Certify Journal Archive Destroy 3 AUTOMATED $9.75 Blended labor rate CONSUME 15 MANUAL GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper How can a media services platform save $123,253 and 138 timeto-market days in sourcing a rights-cleared image for a point-of-purchase display? Business Case for On-Demand DAM and Media Services in Global Marketing Operations GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MARCOM ASSET LIFECYCLE MODEL IDEATE Research Conceptualization 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 Collection Package Promote LOCALIZE Locate Plan Confirm Translate Regionalize Validate Rework Publish CONSUME Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose ARCHIVE Query Analyze Report Certify Journal Archive Destroy Agency production specialist locates source image candidates for use in a new product-oriented point-of-purchase piece and acquires approval for the use of one image candidate. LABOR TASKS (minutes) MANUAL AUTOMATED Search for correct source image file 215 20 Identify correct version of image 240 5 Retrieve and format file 240 15 Generate mock up POP design layouts using selected candidate images 120 20 Distribute for review and approval by marketing manager 30 5 Confirm approval by marketing manager 60 5 Reworks due to errors SUBTOTAL (minutes) CYCLE TIME Calendar days required to complete LABOR COSTS ($) 180 0 Find assets on agency network and acquire candidates from client sources DAM search by keywords, brand, and file type reveals suitable candidates Copy to files workstation and review; each file must be checked to ensure it is up to date and meets messaging and publishing criteria DAM thumbnails, previews, and metadata provide immediate determination of suitability, permitting pre approvals, standards compliance, and version control Process and format files to appropriate standards; sources may vary, requiring unique operations for each file DAM provides system-based rendering, and all source assets conform to the same base standard, allowing batch processing Place each image in layout template - Place best image in single layout; submit layout and images to DAM Email multiple PDF design mockups to marketing manager Group newly submitted design mock up and other image candidates as a collection in the DAM, providing marketing manager a link to DAM Acquire approval via email and/or phone; multiple requests may be necessary Approval need only view collection in DAM, then tag an asset as approved Inappropriate source materials, poor search pool 1085 70 Time required to complete and distribute one set of mockups 3 0.25 Per one set of mockups MANUAL AUTOMATED Marketing manager Difference based on portion of work completed by each actor $11.25 $7.50 $75 per hour fully-burdened rate $6.00 $0.00 $60 per hour fully-burdened rate Agency designer $87.50 $70.00 $175 per hour billing rate Agency production assistant $15.00 $45.00 $100 per hour billing rate Agency traffic manager $11.00 $5.50 $110 per hour billing rate $130.75 $128.00 Marketing group admin Blended labor rate LABOR COSTS SUBTOTAL ANNUAL COSTS ($) Sets of mockups per year Annual labor costs $2,364 MANUAL 50 TOTAL ANNUAL COSTS ECONOMIC GAINS ($) Total labor savings Re-creation costs avoided TOTAL ECONOMIC GAIN INTANGIBLE GAINS 50 $7,467 $0 $2,160 $118,220 SAVINGS $9,627 PERCENT Incremental DAM utility cost Represents proportional hourly rate of team involved $149 Per one set of mockups AUTOMATED NOTES $118,220 $110,753 93.68% $12,500 Given 125 users, 5-year cost recovery model, and $270K system cost Percent reduction in costs, automated vs. manual 5% asset loss requiring re-creation of content at $5,000 each $123,253 VALUE EFFECT Cycle time 138 Days gained in time-to-market for this content per year Stakeholder service 40% More stakeholders served with this content per year Brand touchpoints 35% More brand touchpoints fulfilled by this content per year Brand consistency infractions 40% Fewer off-brand messages with this content per year Legal compliance infractions 25% Fewer compliance infractions related to this content per year ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY NOTES .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 41 How can a media services platform save $75,688 and 420 time-tomarket days in acquiring needed approvals at both the local and global levels? Business Case for On-Demand DAM and Media Services in Global Marketing Operations MARCOM ASSET LIFECYCLE MODEL IDEATE Research Conceptualization 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 Regional publication coordinator aggregates and internationalizes content for a product brochure and acquires the required approvals at both the local and global levels before proceeding with publication production and publishing. LABOR TASKS (minutes) Aggregate and implement translated copy, localized imagery, and edits from legal and regulatory review teams Conduct global brand review of complete localized publication content 35 Reworks due to errors 190 0 Incorrectly identified files, version control, etc. SUBTOTAL (minutes) CYCLE TIME 690 65 $11.25 $75 per hour fully-burdened rate $15.00 $150 per hour fully-burdened rate Global brand manager $26.00 Agency account supervisor $11.00 $16.50 $110 per hour billing rate $30.00 $15.00 $150 per hour billing rate GISTICS $6.50 $130 per hour fully-burdened rate $118.50 $93.50 Represents proportional hourly rate of team involved $1,363 $101 Per internationalized product brochure MANUAL AUTOMATED NOTES Product brochures per year 60 Annual labor costs $81,765 $6,078 $81,765 SAVINGS $6,078 PERCENT TOTAL ECONOMIC GAIN INTANGIBLE GAINS $75,688 60 92.57% Percent reduction in costs, automated vs. manual $75,688 VALUE EFFECT Cycle time 420 Days gained in time to market for this content per year Stakeholder service 75% More stakeholders served with this content per year Brand touchpoints 80% More brand touchpoints fulfilled by this content per year Brand consistency infractions 75% Fewer off-brand messages with this content per year Legal compliance infractions 90% Fewer compliance infractions related to this content per year ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 42 Difference based on portion of work completed by each actor $15.00 $29.25 $65 per hour fully-burdened rate Total labor savings Query Analyze Report Certify Journal Archive Destroy Per internationalized product brochure $6.50 TOTAL ANNUAL COSTS ECONOMIC GAINS ($) ARCHIVE 3 AUTOMATED $30.00 LABOR COSTS SUBTOTAL ANNUAL COSTS ($) Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose 10 Local legal counsel Blended labor rate CONSUME Time required to complete review of one kit MANUAL Local publication coordinator Agency assembly and production Locate Plan Confirm Translate Regionalize Validate Rework Publish 10 Generate derivative of draft layout and downsample for electronic distribution to review teams (PDF) Message global brand approvers with link to DAM collection containing draft content and automatically generated and version-controlled derivative files (PDFs) 110 Global campaign content support LOCALIZE 150 20 Collect content produced by localization vendor and review teams; execute replacements and changes in draft publication layout Translation and review work conducted on independent components managed by DAM; components remain in source format, separate files Edit draft layout to incorporate review changes; may require reworks for copy fitting or imagery replacements Implement review edits to independent files, then place in final layout; ensures source components remain up to date and tagged as approved LABOR COSTS ($) Search View Download Render Encrypt Collection Package Promote 240 AUTOMATED NOTES Apply edits from global brand review, lock publication for final publishing, and update source elements to capture review modifications Calendar days required to complete DISTRIBUTE MANUAL GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... executive white paper How can a media services platform save $65,379 and 255 timeto-market days in updating a product brochure to reach six local markets? Business Case for On-Demand DAM and Media Services in Global Marketing Operations GlobalMediaServices.1.3 ©2009 GISTICS All rights reserved ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MARCOM ASSET LIFECYCLE MODEL IDEATE Research Conceptualization 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 Collection Package Promote LOCALIZE Locate Plan Confirm Translate Regionalize Validate Rework Publish CONSUME Order Version-acquire Customerize Decrypt-unlock Print-play Process royalties Warehouse-dispose ARCHIVE Query Analyze Report Certify Journal Archive Destroy Regional publication coordinator updates existing publication content to meet new global publication design standards for a product brochure; applies new design template across six local markets with unique language, currency, cultural and messaging requirements. LABOR TASKS (minutes) MANUAL AUTOMATED Acquire new design template and style guide from global marketing communications team 90 10 Locate new global master design template; may require assistance from global teams, even when shared network access is provided DAM search provides immediate access to files organized into collections that contain all relevent assets (including style guides) 50 Compare old and new templates to determine element mappings; attempt to locate localized content for each element (may only exist in final page layout files and not as independent files) DAM maintains mappings between elements in old and new layouts and between master and localized versions of each element Locate existing content elements that map to localized versions of elements used in the new template 600 Generate updated, localized versions of content elements that satisfy the new design template 620 80 Re-create localized version of elements where existing versions are lost or can’t be efficiently segmented from final form finished publications DAM maintains mappings between elements and translation memory allows efficient modification of copy where one-to-one mappings don’t exist Aggregate and implement updated content elements into separate publication packages for each local market 340 15 Aggregate and organize elements for review from existing and new content DAM tags provide quick updates to both existing and new elements Acquire approval from global brand management for each localized version of the publication in new design/format 315 20 Prepare, package, and transfer elements to reviewers; generate review derivatives (PDF) DAM collections model allows groups of assets to be easily transferred and routed via hyperlinks and references Incorrectly identified files, version control, etc. Reworks due to errors SUBTOTAL (minutes) CYCLE TIME Calendar days required to complete LABOR COSTS ($) 325 0 2290 175 25 8 MANUAL AUTOMATED Time required to complete review of one kit Per publication design update Difference based on portion of work completed by each actor Global brand manager $32.50 $13.00 $130 per hour fully-burdened rate Local publication coordinator $16.25 $42.25 $65 per hour fully-burdened rate Agency designer $26.25 $8.75 $175 per hour billing rate Agency production assistant $35.00 $14.00 $140 per hour billing rate Agency traffic manager $11.00 $11.00 $110 per hour billing rate $121.00 $89.00 Represents proportional hourly rate of team involved Blended labor rate LABOR COSTS SUBTOTAL ANNUAL COSTS ($) $4,618 MANUAL $260 Per internationalized product brochure AUTOMATED NOTES Design updates per year 15 Annual labor costs $69,273 $3,894 $69,273 SAVINGS $3,894 PERCENT TOTAL ANNUAL COSTS ECONOMIC GAINS ($) Total labor savings TOTAL ECONOMIC GAIN INTANGIBLE GAINS $65,379 15 94.38% Percent reduction in costs, automated vs. manual $65,379 VALUE EFFECT Cycle time 255 Days gained in time-to-market for this content per year Stakeholder service 75% More stakeholders served with this content per year Brand touchpoints 30% More brand touchpoints fulfilled by this content per year Brand consistency infractions 95% Fewer off-brand messages with this content per year Legal compliance infractions 80% Fewer compliance infractions related to this content per year ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVISORY NOTES .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS 43 ................... Other white papers available from GISTICS What differentiates GISTICS as a think tank for market-making? 46 47 ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 45 GISTICS SERIES//MANAGEMENT ADVISORY A bout G IS TIC S SECTION VI ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Business Case for On-Demand DAM and Media Services in Global Marketing Operations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... ................... .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Thought Leadership...Executed Worldwide ................... 4171 Piedmont Avenue, Suite #210 Oakland, CA 94611 USA Tel +1.510.450.9999 Fax +1.510.450.0954 [email protected] www.gistics.com What differentiates GISTICS as a think tank for market-making? S 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. 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 [email protected] www.gistics.com GISTICS Incorporated 4171 Piedmont Avenue, Suite 210 Oakland, CA 94611 USA www.gistics.com +1.610.450.9999 tel +1.610.450.0954 fax ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................