Drivers for Management Information System Adoption

Drivers for Management Information System Adoption

Sign up for The Key Point of View, our weekly newsletter of blogs and podcasts!

After years of following COVID protocols, people are resuming social activities, businesses are reopening, and conferences and other events are restarting. At first glance, none of this seems to directly impact decisions to acquire or replace a print management information system (MIS) and a job submission system. After all, commercial print services providers (PSPs) and in-plants have always needed purchasing, pricing, billing, fulfillment, and business analytics tools provided by MIS solutions. However, due to current global events, our new business environment is shifting investment priorities, justifications, and timing—creating new challenges and opportunities.

Businesses and consumers have increasingly embraced the concepts of just-in-time manufacturing and on-demand printing, as evidenced by increasing numbers of smaller orders with ever-shrinking delivery times. Supply chain uncertainties impact this model for all manufacturers. PSPs grapple with parts, supplies, and equipment availability like other manufacturers, but the more significant impact of these disruptions is a likely increase in even shorter run lengths. PSP customers need to respond quicker than ever to business opportunities and constraints, which will drive more immediacy and targeted solutions. Therefore, expect more ordering variability while those impossible service level agreements (SLAs) tighten even further.

The United States Postal Service (USPS) says that their rates will change twice a year due to the current economy. In addition, media prices and availability fluctuate on what seems to be a daily basis. Traditional price change communications to sales teams via e-mail, written price sheets, or spreadsheets are no longer effective. Besides being time-consuming and labor-intensive, these practices make consistent job-estimating difficult.

Using up-to-date pricing information, consistent estimation processes, and being able to compare prior orders is more important than ever. However, given that price changes rarely decrease, and that printing is a highly competitive business, using pricing even one day out of date can make a job unprofitable. You will need to provide reasons for price increases for your customers to accept any changes.

Staff Compensation, Needs, and Competition Have Shifted

People are demanding higher salaries and more flexible working conditions. They are also willing to switch companies to achieve these goals. This situation exacerbates historic labor challenges within the printing industry, which has an aging workforce, specialized skill requirements, and tight profit margins. Many long-term employees have left while PSPs struggle to attract younger workers into their shops. In addition, today's workers have new expectations regarding working conditions, technology, and remote work.

The needs of PSPs and the benefits of MIS solutions haven’t changed as much as their prioritization and urgency. Even though contemporary print MIS solutions like Avanti Slingshot can help ease many of the challenges PSPs face, Keypoint Intelligence’s research indicates that 31% of PSPs in Western Europe and 37% of PSPs in North America do not use commercial print MIS solutions. Considering this data, these companies are at a severe disadvantage against their competition.

The reasons and justifications for in-plants and commercial printers implementing commercial print MIS solutions have not changed much over the past decade. However, the necessity and urgency of doing so have dramatically shifted.

Contemporary commercial MIS solutions have evolved based upon industry best practices in estimating, accounting, inventory management, business analytics, and workflow automation over the past 30 years. As a result, the current industry pressures are unprecedented and apply equally to all PSPs regardless of size, geography, or specialization. In addition, with more MIS solutions becoming available in the cloud as software as service (SaaS) offerings, much of the investment can be made from operating budgets rather than as capital investments.

Log in to the InfoCenterto view research on print MIS solutions and implementation through our Production Software Advisory Service. If you’re not a subscriber, just send us an email atsales@keypointintelligence.comfor more info.

Images Powered by Shutterstock