In today’s press call, Xerox’ Jim Firestone, Xerox Executive Vice President, described the combination of these complementary organizations as “A New Class of Solutions Provider,” combining business process expertise from ACS with document technology expertise from Xerox. “This creates a new context for the operations of the Xerox enterprise,” he said, “and a new platform for growth.”

Xerox will manage ACS as an independent end-to-end business with ACS President & CEO Lynn Blodgett reporting directly to Xerox CEO Ursula Burns.  ACS will remain the core ITO and BPO organization within Xerox, and anything non-print-related in Xerox will ultimately be transferred to ACS over time.  Xerox’ Enterprise Print Services, launched last October and not really a BPO offering according to Firestone, will remain within the Xerox core business although the company will clearly look for synergies between the two organizations. The ACS leadership team will remain in place.

From a branding perspective, all ACS materials will bear a new logo and Xerox ownership message effective today; by mid-year, Xerox plans to transition ACS to Xerox brand identity, but maintain the name ACS, A Xerox Company.  This is hoped to reinforce brand strength for ACS, but using ACS to give Xerox a “believability hook” in the ITO/BPO space. Firestone intimated that this branding strategy will continue to evolve over time.  One could imagine the ACS name ultimately going away, based on experiences with Xerox acquisitions in the past.

Tomorrow (February 9), Xerox will begin a global print campaign to inform people that Xerox is a different company, and that, as Firestone said during the call, “something new has happened and Xerox is a different company than they have come to believe.”  The new theme of the ads is “Ready for Real Business – Xerox.”

Tom Blodgett, Executive Vice President and COO of ACS, reported that there are already 25 teaming agreements in place to date, even before the close of the acquisition, largely driven by customers approaching Xerox or ACS because they saw value in the combination.  As an example, ACS signed a long-term BPO contract with a large manufacturing company of 9-year duration.  When the acquisition was announced, the customer came back to Xerox and asked Xerox to extend the length of its existing 5-year contract to have expiration dates coterminous.

When the acquisition was first announced, it was noted that ACS had no Xerox printing equipment installed.  Blodgett indicated that among other things, Xerox will be installing Xerox equipment in ACS accounts, one could presume fairly quickly. In fact, Blodgett stated during the call that ACS had been exploring some investments with Canon, which he indicated would likely be put on hold.  In addition, the companies are already identifying quick hits that can use Xerox smart document technologies within ACS operations, such as Xerox Document Recovery technology, which allows processing of image scans more efficiently, yielding $25K in savings for every million documents processed, and minimizing human-oriented exception processing of “bad scans.”

Xerox claims this acquisition increases its addressable market opportunity to $500 billion, a space that is growing at 5%.  This breaks out into the BPO market, which Blodgett estimated at about $150 billion, the Xerox legacy print business comprising another $150 billion, and a third area, ITO or information technology outsourcing comprised of data center and midrange networks for a total addressable market of $500 billion.

In terms of the $400 million cost and revenue synergy figure that was projected as a result of the combination of the two firms when the acquisition was announced, Firestone indicated that these figures will not be updated until either first quarter results are reported or during the company’s May investor’s conference.

Blodgett concluded the conference by saying that after working on this deal for about six months and gaining a better understanding of Xerox strengths and culture, ACS’ excitement level has increased and Blodgett is happy “this deal got across the finish line.”  Firestone added that Xerox is very clear about the assets it purchased with this acquisition, being ACS’ management process, management team and approach to the marketplace. He indicated that Xerox is taking a very conscious approach to preserve these assets, but to add to them Xerox technology, brand, global presence and scale.

This combined organization bears watching as its strategies unfold and its impact on the marketplace begins to take shape.

One reader suggested the need to call out more examples of companies inside the industry who’ve are succeeding, by differentiating themselves. Companies who have really narrowed their focus to land on a big idea…carved out unique space that they uniquely own…and defined their difference in a way that is enabling them to grow and prosper.  So I’d like to put the call out here to bring some of the lesser known success stories to the forefront.

Do you know of a successfully evolving print service provider?  A company that has transformed itself from an “old world” business model to a more contemporary model”?  A company that has successfully morphed their business  into a specialized niche? Or, someone who has landed on a big idea and is doing a good job of aligning their entire operation around that idea?

I’d like to hear about them…either as a response on the blog here or in an email to (email hidden address not shown).

And if you’d like to suggest future topics for our new feature, Thinking Creatively, please don’t hesitate to let us know.

The tip of the iceberg of the lease problems is well known. For example, the problem consistently arises when volume unpredictably fluctuates – spikes and falls – and the basic printing needs change before the life of the lease is up. The lease contract dictates fixed monthly or quarterly minimum charges regardless of lower volumes. Also premium prices are levied above the all inclusive charges when volume spikes back up the next period. To convert to the annual volume equivalent “is not possible” after the lease is signed.

One of the most frustrating case studies was presented during the MFSA-NAPL Fulfillment Conference a few years back. A Philadelphia printer bought the unused and unopened branded toner supplies from a bankrupt competitor at a heavy discount during the equipment auction. The manufacturer sued this entrepreneur because their contract stipulated that only toner purchased from the manufacturer was permitted. Pretty shortsighted perspective from the manufacturer perhaps but not at all unusual.

Often the equipment lease is written by the manufacturer’s general counsel with the express purpose of protecting the supplier, locking in the customer, and maximizing its revenue streams by whatever legal verbiage possible. Capital equipment manufacturers legal departments go to great lengths to fine-tune this expertise.

Other times, equipment manufacturers do not choose to run their own leasing operations. They form joint ventures with international financial institutions, banks and independent leasing companies. These firms have full time legal, credit, lease and asset management departments whose only business is leasing. These highly skilled lease professionals write ironclad contracts that maximize financial returns for their benefit and that of their manufacturing partners. It was common knowledge, for example, that the financing arm of General Motors, i.e., GMAC, always made more money on a margin basis than the auto manufacturer itself. And this was well before their bankruptcy.

Virtually every printer turns these manufacturers lease agreements over to their own general council for edit and review. The first problem is that these lawyers are virtually never experts in equipment lease law verbiage. They are generalists not specialists. And the most important problem is that these attorneys never understand the digital printing needs of their corporation and caveats borne from the dynamic unpredictabilities of the printing business. (Your attorney will rarely acknowledge their limitations.)

The pot of gold at the end of the rainbow for the buyer is to find a third party leasing expert. This individual should not work for any leasing company, lease broker, or equipment vendor. They should be able quickly to assess the printer’s digital printing needs from a straight forward though thorough needs assessment survey. And then they review the manufacturer’s proposed lease for a multitude of phrases that turn out to be untenable “gotchas” that are most certainly not to the printer’s benefit. Quite often the expectant buyer is not even aware of the interest rate they will be paying, which – believe it or not – is occasionally exorbitant.

From this review a report is prepared listing vulnerable sections and clauses and the proposed more amenable alternate wording. The printer or purchasing agent can then negotiate with the supplier if they wish.

This in house negotiation step is fraught with its own frustrations, as the supplier knows that there are only days before the existing lease expires and the new one must go into effect or further usurious fees are enacted from the old lease! Automatic renewals sometimes as long as 12 months in advance may be enacted if proper notification to the lessor is not given. In other words, request the standard equipment lease from the supplier at the time “they submit their RFQ response, which is 60 days or more before the old lease expires, or their bid is considered nonresponsive.” (The game can be played both ways!)

Many printers find that the most successful methodology is to have this third party lease expert negotiate these new preferred terms for them. This is often done in a conference call with both the printer and expert talking to the manufacturers’ lease department. This is the first time that the printer will discover a delightful surprise. (All other surprises described in this article have intentionally been horrific though unfortunately too often realistic.)

So where do you find this lease expert?

“The delightful surprise is that the manufacturer’s leasing department is often delighted to negotiate the terms of the lease, says Mary A. Redmond, President of Independent Lease Review, “particularly with another professional who understands what the gobbledygook actually means.”

Additionally firms from other industries have found that having this lease expert actually prepare a Lease RFQ based upon the firm’s specific needs is the best of all solutions. This proactive RFQ is the basis for the ultimate lease agreement.

This highly specialized expertise has proven time and again to deliver cost savings of many times the original investment.

While these campaigns can provide inspiration to try something similar don’t get discouraged if similar campaign doesn’t bring you the same results. Like any marketing campaign you should develop a strategy that meets your needs.

When you’re ready to explore social media campaigns for your business you don’t need to jump on Twitter and start offering free business cards. It’s ok to lurk for a while, that is spend sometime up front doing analysis on what people are saying and doing on sites like Twitter, Facebook, and LinkedIn.

Not all social media sites have the same audience. A recent MarketingProfs survey shows usage of 5 major social network sites. The results shouldn’t be a surprise to anyone. When starting out stick to one or two services like LinkedIn or Twitter.

There was a recent article on 4 Myths About Social Media and Business that took a look at some of the misconceptions about how best to use social media in business.

It is also important to understand how non-printing small businesses are using social media to reach out and many cases skipping print marketing. Punch Pizza, a Twin Cities pizza chain has been using social media to engage with customers. Punch recently gave away 10,000 pizzas after the Vikings loss to the Saints in the the NFC Championship. Their social media campaign generated buzz with thousands of mentions on the web and on local TV news coverage. Details and analysis of the pizza giveaway are online.

All that being said about us publishers, it is my belief that the iPad is more powerful than most people realize, because the product is a constantly morphing, magical, anything you want it to be thingamajig. Only your imagination or lack thereof can prevent it from becoming, well, almost anything. There are 140,000 Apps right now for the iPhone. They all work on the iPad, too, and we are just getting started. Apple announced the iPhone on January 9, 2007 – a mere three years ago. Can you imagine what is in store for a device like this three years from now?

I am not touting Apple or Steve Jobs as anything but very clever marketers who understand the social psyche, modern industrial design and supreme “use” functionality. Those traits are clearly very powerful tools.

For publishers it is a special moment in time – a chance to gain a new set of readers without abandoning the very special realm of paginated media. Above all else we need to take the concept of the page where perhaps it was intended to go all along. Keeping the page format empowers us to do what we have done for a 100 years – sell advertisers our very valuable real estate. The iPad and the many other new like devices are a natural digital magazine apparatus, that just might bring the luster and the profitability of the Internet age to the publishing houses of the world. This, of course, doesn’t at all mean that we have to abandon the printed page, but rather that we now have an additional quality path to monetize our franchise of content.

The real question is, has Apple succeeded in making a new sector in the reading/Internet/mobile information market. My first impression is, yes they have. I have not held it, used it or know the true functionality of the device, but I am very impressed by what I saw today.

The real question is, what, if any, is the impact to the publishing industry. The answer is huge in my opinion – huge in the actual concept of the iPad as the first of a new generational type of reader. It’s a bird, it’s a plane, it’s a computer, and it is an e-reader. It is actually all of the above.

The very first thing I told my wife Carol is to look at this really cool, new state-of-the-art device and now try to imagine it as an instant antique. Yes, that is right; it is still just the beginning of a new communication platform. It is not like the Gutenberg press. The press was invented and stayed the same for almost 600 years. Not so the computer nor the iPad. They were invented, and then immediately became an obsolete, soon-to-be-surpassed tool/product.

So, let’s watch the still forming functionality of this product with a careful eye. No mention was made today of magazines. Why? I believe that they were just not ready for the public release. No offence to the New York Times, which was displayed, but anything they can do, we magazines can do. The demonstration of the iBook was brilliant, both in the visual display and the page-flipping normality.

All in all, I was impressed and think it is a killer product. One of the things that I think is part of the genius is the price. The basic price of only $499 is staggering for what you get. The unlimited data download is equally addictive and affordable at $29.99.

I will reserve my right to a full endorsement until I get my hands on one, and can then determine if I have succumbed to the hype of an excellent presentation or the excellence of a visionary product.

A complementary Executive Summary of the study is available, and the full study sells for $199.  This is a fascinating read, and any printing or marketing services company looking to better serve marketers should take a look.

I’ve been involved with companies that run the gamut – from CEO’s that are –

1. Self centered and egotisitical – the “it’s all about me” guys.
2. The CEO’s who are anal and micro manage.
3. The ones that are always working “in the business needing to / making it happen”.
4. The ones that are true leaders, nurturers, cheerleaders and coaches.

It is latter that you want to get to regardless of company size.  If you’re not already there, unfortunately, it’s a process that takes time AND work.

Here are some steps that will help you identify the culture of your organization and how to address it –

• If you feel that your employees don’t work hard enough, only seem to be there for a paycheck or simply don’t work well together, you need to hold yourself accountable and realize that it’s up to you to change this. If it’s an isolated issue, remember “it’s about attitude not ability” and it can be dealt with as per my post.
• If you fall into either 1, 2 or 3, experience has shown me that this is lack of confidence on the part of the CEO caused by what I call “the business running them instead of them running the business.
• You can address this by garnering the knowledge to take control of the business. Some people get MBA’s. History has shown me that the experience we garner running our companies is at least the equivalent of getting an MBA. (Note: I can personally vouch for that as I went back to school after 25 years and got my MBA after selling my business!) When I was asked that particular question, I said that what the MBA did for me was “validate” what I already knew. (Confidence).
• I received a call yesterday from a CEO that said to me that they “felt like they were on an island” running the business. This is a great example of someone that realizes they need to get to step 4.

There are other resources. When I was building my company, I had a partner that I confided in and I installed a board of advisors. I found this to be helpful.

Today, whether it’s on site, guiding the repositioning of the organization or through the Peer Group process, the strategy is always the same. Provide the CEO with the knowledge to be able to confidently manage their companies. The important thing to remember is that you need to be open minded and willing to learn. Without that, you will never be successful. NONE of us have all the answers.

The important point is to never lose site that it is you, the CEO that is ultimately accountable and that the first order of business is to set the proper culture within the organization to be successful.

For more information on WhatTheyThink Peer Groups, click on: http://members.whattheythink.com/peer-groups/

EFI set about developing a simple, highly visual Fiery interface that can be used as a standalone application or as a Microsoft Office 2003/2007 plug-in that takes the print driver out of the workflow.  The result is Fiery VUE, a slick application that allows users to specify complex finished documents with a few clicks of the mouse and virtually no training.  “Sales reps on the street can do a simple five- to ten-minute demo,” said McCuen, “and the customers really get excited about the ability to create booklets and other finished documents in the workplace.”

Fiery VUE uses plain English and images to allow users to select options. For example, instead of “duplex” it says “print on both sides of the page.”  Stapling and punching options are shown graphically, and users can quickly see if, for example, hole punches are going to infringe on document content. It is also structured to only offer the options available on the specified copier/printer.  Thumbnail views allow you to rearrange pages in a slide-sorter kind of way, and even move pages from document to document, mixing file types at will (Word, PowerPoint, Excel, PDF).

One of the coolest features is the templates and green books.  This allows users to automatically create multiple up pages of presentations and other documents. “About 80% of what the average office worker does falls within one of the templates provided with Fiery VUE, and they can also easily create and save their own templates,” explains McCuen. “Green books allow you to automatically create half-size or mini versions of booklets, taking what might have been as many as 15 pages of slides and publishing them to two 8.5×11” sheets in a booklet format, saving as much as 85% over regular PowerPoint printing.  We also found that when you bring green books into a meeting, people notice them more than typical handouts. And a professional-looking booklet like this can literally be created within three clicks.”

I was impressed with the interface, the ease of use, as well as the extensive work EFI did to address customer feedback and issues in this desktop application. It does seem to be somewhat of a double-edged sword for the already-stressed printing industry, enabling users to bring ever more complex work in-house, although it will surely be a boon for sellers of equipment (and for EFI Fiery sales), as volumes grow on these in-house office/work group MFPs. The application can be downloaded for free, and used on the network as well as offline for later printing when connected. But, of course, it does require a Fiery controller at the other end in order to print.

What this will ultimately mean for smaller printing operations, including independents, franchises, Big Box stores, UPS/FedEx, and even online companies like Mimeo, remains to be seen.  For companies that have fully functional MFPs with Fiery controllers, this will enable them to bring more work in house that might otherwise have gone to smaller commercial or quick printers; however, there is an opportunity for smaller commercial and quick printers, many of whom already have a Fiery workflow, to serve the many companies that do not have these in-house capabilities with a much simpler workflow than they may be using today.

Nonetheless, there is the possibility of storm clouds gathering on the horizon, especially if EFI is as successful with this venture as it hopes to be.

Because of the complexity of this transaction, but the share exchange ratio and actual value of the transaction will not be determined until closing. However, 60% of the combined company will go to existing Quad/Graphics shareholders and 40% will go to current Worldcolor shareholders.  This means that the Quadracci family will continue to control the company based on its ownership of Class B shares.  There is no financing condition precedent to this transaction closing.  Although it is, of course, subject to shareholder and regulatory approval, it is expected to close in the second or third quarter of the year.  $1.2 billion in funds have been committed by Morgan Stanley and others to complete the transaction.

In terms of the previous offer by RR Donnelley, Angelson indicated in response to an analyst question that the Quad/Graphics transaction was “entirely friendly,” and would offer the opportunity for Worldcolor shareholders and employees to join what he described as the most efficient, technically efficient, automated and forward thinking company in the industry.  Angelson also indicated that this transaction had been in the works since August 11th, when Quadracci and Angelson first had lunch to discuss the transaction, and was followed by an exhaustive due diligence on the part of Quad/Graphics.

In response to another analyst question about any regulatory barriers, Angelson estimated the value of the U.S.  print market at $160 billion, made reference to RR Donnelley’s approximately $9 billion in revenues, and indicated that with the combined new company expected to come in at just over $5 billion in revenues, there were no anticipated regulatory barriers in such a fragmented print market. Angelson indicated an S4 with full background and details of the deal will be filed with the SEC within the next month or so.

Angelson quipped, “Not since Thomas Jefferson dined in the White House alone has there been such a collection of intelligence that went into putting this deal together.”

It is interesting that this largely share-based transaction will now make Quad/Graphics a public company, to be listed on a U.S. stock exchange to be named in the future at a price to be determined at that time.  In the past, Chairman, CEO and President Joel Quadracci has told WhatTheyThink that the company has been advantaged by being able to manage generationally, rather than being constrained by the quarter-to-quarter expectations of the Street.  During the call, Quadracci was quick to point out that although Quad/Graphics has been privately held, it has been run with the same stringent financial management and integrity that would be expected of a public company. As the deal unfolds and the integration of the two companies begins, and when the company is listed on a U.S. stock exchange with full public reporting, it will be interesting to see how that actually plays out in real life, and whether “generational management” can continue to be a reality for the combined companies.  If anyone could pull this off, it would certainly be Joel Quadracci.

More information on this transaction, including a replay of the conference call and supporting materials, can be found here.

Joel Quadracci, 41, will serve as Chairman, President and Chief Executive Officer of the expanded company. The future Board will be comprised of the six current Quad/Graphics directors and two Worldcolor directors: Mark Angelson, who will Chair the Board Committee on Integration and Consolidation, and a director to be named prior to closing.

The combined companies will rival RR Donnelley in revenues. Quad/Graphics is the largest privately held printer in the U.S., and Worldcolor is the second largest provider of print, digital and related services in the Americas.

We will be following the investor conference call today and will post a follow up here on Print CEO.

If you think about it, why wouldn’t it at least be recorded on the invoice so if you decide to discount them, at least the client is made aware that you’ve done additional work on their behalf and made a decision not to charge them?

Just eliminating them from the invoice completely doesn’t do anything to demonstrate the extra work that has been put forth to complete a project. This can pay off dividends in the long run if you’re ever asked by the client “what you’ve done for them lately”.

Easy access to information also means that business buyers are far less receptive to traditional marketing messages and marketing materials than in the past.  Today’s business buyers are incredibly busy.  Their time is their most precious commodity, and they protect it at all costs.  If they receive marketing messages or materials that are mostly hype and self-promotion, you can imagine how they will react.

What business buyers will pay attention to is information that helps them to better understand the business issues and challenges they’re facing and how those issues and challenges can be addressed.  In other words, business buyers will pay attention to information that helps them do their jobs better.

B2B marketers have started to recognize this, and they are creating educational content that speaks directly to the major issues and concerns of their potential buyers.  This approach to marketing is known as content marketing, and it’s growing.  According to a recent survey by Junta42, 59 percent of marketers plan to increase their spending on content initiatives in 2010, compared to 56 percent in 2009 and 42 percent in 2008.

Content marketing has two objectives.  First, it enables a company to demonstrate its expertise on issues that are important to potential buyers.  And second, it helps to establish a company as a “trusted advisor” that buyers will be comfortable turning to when they are ready to buy.

Printing companies, particularly those that are making the transition to a marketing services provider model, face the same marketing and sales challenges as other B2B companies – empowered, independent, and very busy buyers.  To break through the clutter and create real engagement with potential buyers, marketing services firms need to develop content that speaks to the marketing issues and challenges that their potential buyers are facing.

For example, if you sell web-to-print marketing collateral management systems, do you have a white paper that explains the hidden costs of manual collateral management and the advantages of an automated collateral management system?  Do you have a white paper that explains to potential buyers how they can decide whether an automated collateral management system would be right for their company?

If you don’t have these kinds of high-value marketing materials, you should make obtaining them a high priority.

Everything that can be automated will be automated. You can name any function you would like in the old production department, and it can most likely be distilled down to a database of one sort or another. The responsibilities of the production department that haven’t been dehumanized yet will be transferred to other departments that still require human intervention.

I truly grieve to tell you all this but I believe it to be true.

The other thing this article mentions is virtual proofing. That too will disappear. It is a fad and a crutch and we do not need proofs. A proof proves nothing. The conditions and sophistication’s of the modern printer does not actually require a proof. Perhaps that sounds strange or even overly trusting of our printing partners. It is neither. They can and will do it.

Let it go and save the money and the time. If not today, than soon, we will not require any proofing whatsoever. Direct from your design department monitor to the printer. A complete set of numbers and data to that will be reproduced to everyone’s satisfaction. As unusual as that may sound it will soon become a reality. At the very least think over these concepts and send me your thoughts on why I might be wrong and where you disagree. I am always open to honest dialog.

They would increase run times, reduce allocated times for production and eliminate certain functions all together (such as proofing) if they felt they were unnecessary.

Production became frustrated because data collected on specific jobs produced wide variances due to the shortcuts put forth in the estimates. Needless to say, the tension between sales and production escalated rapidly.

The outcome to this dilemma was pretty straight forward. There are three components to a job –

• The estimate – Which is determined by compiling all necessary functions to complete the job.
• The cost – Which is derived by collecting the actual data to produce the job comprised of time and materials.
• The price – Which is determined by sales based on “what the market will bear”.

A job should be estimated to include all required costs and operations to produce the job and sales should then provide a discount if necessary to arrive at the price of the job. Production should not really be concerned if a job is estimated at $1000 and the price of the job supplied to the client by sales is $500. The accountability is on sales to provide a reason as to why certain discounts are given.

Production needs to have the real estimate for the job as this allows for an accurate analysis of estimated vs. actual costs. The price of the job should be determined as a line item discount off of the estimate.

For more information on WhatTheyThink Peer Groups, click on: http://members.whattheythink.com/peer-groups/

• Reducing our waste disposal / recycling costs by 50%
• Exchanging a vehicle to avail ourselves of the investment tax credit and improve our fuel consumption
• Migrating from mailing to e-mailing of invoices which was the beginning of our transition to a paperless workflow. This reduced postage expense, improved cash flow and lowered administrative overhead.
• Meeting with the landlord and “asking for help” (especially advantageous if you’re close to a renewal period) in providing some concessions. Just by asking, we were offered a 25% reduction on base rent over the five months prior to our renewal date and the landlord taking responsibility for the replacement of the A/C unit when required – usually a cost (very expensive a might add) borne by the tenant.

What is more interesting however is that by communicating the goal of a “continuous improvement” process of expense reduction to the team generated thoughts and ideas we had never considered before such as –

• Changing our land lines to VoIP which will result in a phone savings of 30% or more.
• Analyzing our mobile phone service to incorporate most frequently called numbers thus reducing the service plan resulting in a savings of 50%.
• Negotiating with vendors to make payments via credit card which provided additional terms, improving cash flow and generated additional discounts. (Certain credit cards offer cash back incentives of 1 to 3 percent.)

The take away is that clearly communicating the objectives and engaging the team in the goal can yield unexpected and at times pleasantly surprising results.

For more information on WhatTheyThink Peer Groups, click on: http://members.whattheythink.com/peer-groups/

Publishers have relatively recently adopted on demand printing for part of the book lifecycle, but these initiatives have largely  involved centralized printing from sources such as Lulu or Lightning Source, with book printed and shipped to order, or printed to limited inventories for distribution.  While this has made the book supply chain more efficient, the new Espresso configuration, which requires an installed footprint of about 9′ x 12′, brings another radical change to book publishers who are also struggling with how best to handle ebooks.

Dane Neller, CEO of On Demand Books, indicates that there will be nearly 30 systems installed by the end of next quarter, with about a third in university book stores and the remainder in libraries and retail (independent and chain) locations.

“From a Xerox perspective,” said John Conley, Vice President, Publishing, “the whole publishing model is going through tremendous change, and we believe fully distributed solutions will become an integral part of the supply chain.”

Neller added, “This is a transforming time, and content is increasingly being offered centrally with distribution and consumption being offered on a massively decentralized basis, along with personalization and easier access to self-publishing. This solution offers a new channel, eliminates out-of-stock conditions, and can deliver more sales per square foot.”

University book stores have shown particular interest in this solution, according to Neller, because it is seen as a greener solution, and because more professors are writing their own text books largely due to the high cost of textbooks and a desire to have more focused course content.  On Demand Books also has a relationship with Ingram which gives the Espresso access to Ingram’s massive library of digital books for distributed printing.

“This will also be a boon to self-publishers,” added Neller.  ”Combining Espresso with tool sets from Author Solutions, for example, an author can come to a location to get their book published, printed and sold.  This is truly transformative.”

For book publishers, wide Espresso adoption means they need to again examine distribution strategies as they work to make the supply chain more efficient.  The other community this solution could hugely impact is book manufacturers, many of whom are already struggling with the need to produce much shorter runs economically and quickly. For many books, Espresso may cut them entirely out of the manufacturing loop.

Conley adds, “To the extent that ebooks continue to grow, and I think they will, it will continue to force publishers to look at new models of revenue and distribution of content as well as to grow the amount of digital inventory.  This is very positive.  I can see a day when I can access a book on my iPhone, review snippets and then decide to have the book printed on Espresso.  It reinforces the theme of producing books at point of sale and gives you the largest bookstore in the world sitting in a 9′ by 12′ space.”

According to Neller, Dr. Jason Epstein, cofounder of On Demand Books, believes this is a worldwide trend.  Neller says, “Outside of the U.S., the supply chain is often much less efficient, and this is a perfect soltuion.  We need to get out of the parochial mindset that a bookstore is five minutes away.  Maybe there is no bookstore, or it is far away, or the books are not available in your preferred language.  This makes books ubiquitously available.”

“This is a solution whose time has come,” concludes Conley. “Xerox is doing this now because the time is right.  It is a new opportunity for us, a little different than what we have done in the past.  But with the changes in content creation and distribution, this is an exciting and untapped opportunity.  You don’t find many of those these days.”

Got call from new buyer of Editor & Publisher, Duncan McIntosh, who publishes Boating World magazine and Fish Rap News in Irvine, Ca., a couple of hours ago, telling me that I am out as editor after eight years (and 10 years with magazine). The great Joe “Scoop” Strupp, senior editor, also out, after 12 years — a truly great loss. Only four editors/writers left. One week ago in a meeting new owner told me flatly, “Extremely impressed with your great work and definitely will retain you.”

The Kodak complaint, filed with the U.S. International Trade Commission (ITC), specifically claims that Apple’s iPhones and RIM’s camera-enabled BlackBerry devices infringe a Kodak patent that covers technology related to a method for previewing images. Separately, Kodak filed two suits today against Apple in U.S. District Court for the Western District of New York that claim the infringement of patents related to digital cameras and certain computer processes.

According to Kodak the company has licensed digital imaging technology to top mobile phone manufactures including Nokia, LG, Motorola, Samsung, and Sony Ericsson.