Telekinesys: ready for the next generation of print management

While Telekinesys’ equator software is already popular with print management firms and corporate print buyers alike, emerging market trends are boosting its take up still further.

Telekinesys fi nds itself in the enviable situation of standing right in the middle of the course of current print management trends. The software company, whose web-based equator system is widely used by both print management companies and direct corporate print buyers throughout the UK, is finding that new doors are continually opening, notes managing director Chris Hopwood.

“Our business keeps us in constant touch with a wide range of print management companies and corporate print buyers, so we are ideally positioned to hear this year’s wish-list, that will become next year’s ‘real-world’ market requirements,” says Hopwood.

He illustrates his point with just two current examples identified by feedback from prospective and live clients. These are increasing globalisation of the supply chain, and a print buying community that is becoming more and more demanding of print management companies as contracts reach their second and third generations.

Globalisation is no big surprise to anybody, and is indeed anticipated by the underlying design of equator, and accommodated with increasing sophistication through ongoing developments from the Berkshire company.

“The whole point of globalisation for a print manager is that they can go for worldwide contracts. Those contracts require them to act as a ‘one-stop shop’, so they need to operate as a single virtual team across any number of geographic locations. This means that any system they use really has to be web based.

“Management information also needs to provide both detailed information on specifi c jobs, and the ‘big picture’ of print buying activity across all countries. This can only effectively be provided by a central master database, which is immediately and continuously updated as business is transacted.”

“Luckily, that’s what we designed equator to do in 1999, so as time goes on, the market is creating circumstances that put us in a very good position. As soon as companies go global it introduces extra requirements: Multi-language and currency capabilities of course, but also local cultures and different business practices, which need different workflows. Equator’s basic design and flexible workflow has allowed us to accommodate these without major development effort.”

The ongoing development includes enhanced functionality for multilanguage, multi-currency and multicompany operation. The next release of equator, version 6 which is scheduled for the end of 2007, will include a mechanism to automatically detect and use the appropriate language based on the user’s log-in.

Hopwood’s second point – regarding the expectations of print management by procurement managers – is even more interesting for Telekinesys, and is starting to have unexpected ramifications for the potential market for equator. Essentially, the twin factors of more knowledgeable corporate buyers and the constant search for more savings across the print supply chain are ensuring that software such as equator is in greater demand.

When suppliers’ margins have already been squeezed tight, and the oft quoted “low hanging fruit” has been picked, it is from within the costs found hidden high up in the top branches that savings must be found.

He sees that “buyers are getting more savvy, and much tougher questions are being asked at contract renewal time. As well as costs savings, clients are demanding that print managers provide transparency and comprehensive management information on demand”.

Print managers therefore need information on every aspect of print spend they are managing for the client, in order to identify every possible opportunity to cut costs, and prove they are achieving the promised results.

The customer’s objectives are shared by the print management company’s own management, who as well as hitting their clients savings targets, also need to maintain their margins.

“Financial directors are making comments like, ‘we are already operating on a 10% margin. I need the information to identify which parts of the business are profitable or not, and to get a grip on this’. Often, they don’t find out whether certain transactions were profitable until it’s too late.”

The only way to address these client and management concerns, is through the use of more sophisticated, integrated systems that provide more timely and comprehensive information, says Hopwood.

“There’s a parallel to be found in the way that, as a first print management contract is seen differently at renewal time and the client demands more from suppliers, so the same is true in the software world. Leading print management companies are reviewing their systems, and demanding technology systems that can give them a competitive edge, and support the needs of second or third generation print management contracts. ”

Print management companies and corporate buyers are also looking to technology to support more areas of the supply chain. Again, equator is anticipating this emerging need, with the introduction of a Campaign Management module increasing Telekinesys’ reach within corporate clients. While print procurement managers might have been the original touchpoint, the marketing professionals are now getting interested in the potential of equator to help run their campaigns.

Hopwood explains: “With our holistic view of the supply chain, we want to streamline the whole process, and previously that’s been from the point where print specs are generated – where the client decided they needed two million brochures, for example.

“Campaign Management is pushing that back earlier to the logical start point – where the marketing director is planning a new product launch and deciding on the marketing elements that will achieve that. It’s a very top level view. What are the overall elements and, working back from the launch date, what are the main blocks of activity that need to take place and when? In the same way that print buyers and managers want information about their activities, a marketing director needs integrated information about the marketing aspects.”

The Campaign Management module also links into equator’s other modules, including asset management and artwork approval, so in effect, the whole process can be controlled through Campaign Management.

Hopwood is aware that equator has encumbent competition in this sector, and advertising agencies, for example, can already choose from various packages for traffic management. However, many of these are ‘first generation’, non webbased systems, designed primarily to manage the agency’s internal processes, not for clients to use, says Hopwood.

“Equator has an advantage over first generation campaign management systems, because it is designed as an integrated system which supports the collaboration between departments and companies that is now seen as the optimum way to manage inter-company transactions. It delivers a ‘joined up’ process between marketing, procurement, agencies, and other suppliers.”

Telekinesys is looking to maximize its gains from such issues through its “SmartSourcing” service, which Hopwood describes as “an intelligent process for sourcing print” that offers the benefits of both in-house procurement and outsourcing.

He outlines a scenario where a company may be using a print management firm to control its print procurement. That print management company may have its own systems, but what happens if the relationship comes to an end? Can the historical data held in the system be rescued and used in a meaningful way, without disrupting the business? Sometimes yes, but often no, says Hopwood.

The key for the client is to retain ownership of the system. If they want to outsource, they can then appoint a print management company that uses it to process the outsourced business, and gain the associated benefits without the risks.

Of course, this is not possible with proprietary print managers’ systems, which are not sold or supported by their owners. SmartSourcing eliminates this shortcoming, says Hopwood, by the client selecting a print manager that already uses equator.

“If you go to a print management company, and select one that is familiar with equator, then if the relationship ends for any reason, that’s not a problem – the client already owns the technology and historical data, and can choose to use it in-house, or outsource to another equator-capable print management company as they wish.”

SmartSourcing came about as a result of feedback from customers, who were attracted by the potential benefits of outsourcing, but worried about the potential loss of control and transparency. Telekinesys saw that there was a possibility for them to get the best of both worlds – outsource the overheads and resource needed for print procurement, yet still retain control and transparency over information and processes.

“SmartSourcing allows clients to buy their own copy of equator and keep it under their control,” Hopwood says. “We can give them the best advice on print buying, the management information, how we see the industry using equator and the benefits they’re getting from it. We can also deliver the benefits of outsourcing, by working with one of an increasing number of print management companies, who are qualified to manage the system for the client, while they still hold the licence.”

The feedback that Telekinesys has received from the marketplace suggests that many corporate customers are attracted by the idea of SmartSourcing. Some because they have been disappointed by the results of an outsourcing experience, some because it addresses the reasons behind a company insourcing policy, says Hopwood.

He adds that several clients are already taking advantage of this service to good effect, and with global sourcing spreading and complex management information requirements a definite trend, Telekinesys expects more to follow.