NAGASA - The Compass - Fall 1999

• ARCHIVES Winter '98 Summer '98 Fall '98 Winter '99 Summer '99

  President’s Column
• SIC, NAICS, and Industry Data
• NAGASA Joins with IBM to Offer 2 Members Special Discounts
• Study Focus 3 WHITE PAPER #12: Creating & Maintaining Client Loyalty
• Dates Announced for 4 NAGASA Institute at GATF
• Expand Your Marketing 5 Efforts Through NAGASA
• NAGASA Electronic Commerce 7 Committee Updates 820 Document

President’s Column
A Note from Peter Brehm
NAGASA President and CEO

One of the business terms used in today’s business world is “model.” A model can be thought of as an approach or the methods used to provide goods and services. Reflecting on graphic arts processes, one model for delivery of information is “print and distribute,” meaning that the printer produces 10,000 books or brochures and then ships 1000 to each of ten locations. An alternate model is “distribute and print,” whereby the printer (or other organization) distributes digital files of the to ten locations which each print or image the needed copies.I introduce this term because it pertains to NAGASA and some of the challenges and changes we are seeing as an association.

Here are some models we’re changing at NAGASA:

• Trade Show Participation
  As members know, trade shows are an important factor in the channel marketing efforts. Over the past years NAGASA has participated in trade shows, often through staffing a NAGASA booth and in some cases by walking the floor. Our primary mission in attending trade shows is to interact with current members and to meet and market NAGASA to potential new members. The “booth” model, however, requires that current and potential members come to us. After reflecting on this, it’s been suggested that we explore an alternate model whereby we go to the member and potential member. For this reason, and starting at Graph Expo ’99, I plan to visit as many members as possible in your booth and at times convenient to you. My goal is to introduce myself to you and your team, discuss with you any key questions, comments, or concerns that you might have about the channel, NAGASA, and the printing and publishing process, and share with you some of the activities that your Association is undertaking.
• Publishing:
  Beginning with White Papers and FlashStudies that we’re publishing in the latter half of 1999, including the updated Membership Directory, NAGASA will post publications as downloadable PDF files in the members-only section of the Web page. We do not plan to eliminate the provision of hard-copy materials to members. We are adopting a Print-on-Demand model whereby we’ll ask members to indicate their interest in getting a hardcopy and then fulfill these requests as they are made.
• Surveys:
  Beginning appropriately enough with the FlashStudy on the use of the Internet, NAGASA will post surveys on the Web site for completion and submission by email or fax. We will not, in the near future, eliminate the use of fax as a means for seeking member input, and instead use the Web as a supplement to our faxing process.
• Industry News: In an effort that has already started, we’re seeking information from members about announcements and changes pertaining to open houses, products, services, staffs, and other facets that we will post on the Industry News section of the Web site and share with interested publications. I encourage you to send this information to use as email, either in the email or as attached Word documents, to information@nagasa.org. We can then move/edit the text onto the Web site more easily and quickly. Again, we are not eliminating the use of faxed or mailed hard-copy news releases – please keep ’em coming! – but the efficiency with which we can move text that arrives as digital files is pretty compelling as opposed to having to scan or re-key hard-copy materials.

I welcome your thoughts about all of this, and would like to discuss these and other topics at upcoming events, including Graph Expo. To help this process, please call, fax, or email me indicating your booth number and, if you can anticipate it, a good day and time when I might stop by. Let me know also if you will not have a booth but would like to get together!

SIC, NAICS, and Industry Data
In 1993 the Office of Management and Budget created an Economic Classification Policy Committee to develop new classification methodology...

Initiated in 1937, the Federal Government’s Interdepartmental Committee on Industrial Classification established the first Standard Industrial Classification (SIC) in 1938. The SIC was developed for use in the classification of establishments by type of activity in which they are primarily engaged. The system has been periodically revised to reflect the economy’s changing industrial composition and organization, with the most recent update occurring in 1987. Rapid changes in both the U.S. and world economy brought the SIC under increasing criticism, and in 1991 an International Conference on the Classification of Economic Activities was convened to explore alternate approaches. In 1993 the Office of Management and Budget created an Economic Classification Policy Committee to develop new classification methodology. This committee ultimately collaborated with Mexican and Canadian peer groups in the development of a new classification, which is called the North American Industry Classification System (NAICS).

NAICS is based on a production-oriented or supply-oriented conceptual framework. This means that producing units that use identical or similar production processes will be grouped together in NAICS. When an industry is defined with a production-oriented concept, producing units within the industry’s boundaries share a basic production process and use closely similar technology.

The NAICS structure is hierarchical, much like that of the 1987 SIC. The first two digits of the structure designate the NAICS sectors that represent general categories of economic activities; NIACS classifies all economic activities into 20 sectors. For example, codes 31, 32, and 33 are used for the economic activity described as “Manufacturing,” of which printing is a part. Code 42 is used for “Wholesale Trade,” of which graphic arts distribution is a part. “Printing and Related Support Activities” is a subcategory of manufacturing described using the code 323. Within this, “Printing” is described using code 32311. “Commercial Lithographic Printing” is described using the code 323110; the former SIC Code used to describe this industrial segment was 2752. Though not specifically broken out by published materials, in response to a query by NAGASA, NAICS indicated that graphic arts dealers engaged primarily in equipment sales would be described using the code 421830, which is for “Industrial Machinery and Equipment Wholesalers.” Dealers engaged primarily in supplies sales would be described using code 421840, which describes “Industrial Supplies Wholesalers”.

More detailed information about NAICS can be found at http://www.ntis.gov/naics. This site can also be used to purchase the document entitled North American Industry Classification System, United States 1997, which includes tables cross-referencing SIC codes and NAICS codes, timelines for the introduction of the NAICS, and other information. NAICS can be reached by phone at 1-888-75-NAICS.

The accompanying table has been abstracted from the complete NAICS document to provide an initial reference about how the codes are changing for printing and distribution. This table should not be used as an official reference to the changes that are being made; contact NAICS and consult the NAICS document for details. “US” means that the NAICS code applies to US industry only. “CAN” indicates that United States and Canadian industries are comparable. When neither US or CAN appears, Canadian, Mexican, and the United States codes are used in all three economies and are comparable.

NAGASA Joins with IBM to Offer
Members Special Discounts

Technology has become the tool for survival and the key to success. To provide members with the latest technology, NAGASA and IBM have teamed up to offer NAGASA companies a variety of IBM home and office products at discounted prices.

The goal of this IBM partnership with NAGASA is to help members perform at a higher level at home or in the office. This program makes life in a connected world easier ­ and less expensive since NAGASA member companies qualify for up to an 8% discount off IBM prices when using this new service.

IBM has made it easy to take advantage of this program. After getting into the Members-Only section of the NAGASA Web site, go to the resources page and click on the IBM hyperlink. After a keycode is entered that NAGASA will supply, this link connects to a Web site created specifically for members to browse or order on-line. Alternately, members may call an IBM toll-free number, enter the NAGASA- specific keycode, and speak directly with an IBM sales representative who can answer questions and handle any orders.

Featured IBM products will include award-winning, innovative products such as the Aptiva Desktop PC, ThinkPad i Series Notebook, printers, scanners, Workpads, software, services, special owner privileges, power tools from the IBM commercial portfolio, and third-party complementary products.

IBM, which has been recognized for the past seven years for its service and support with an "A" grade from the PC Magazine's "Reader's Choice" ballot, has noted that it is committed to making the NAGASA partnership the very best program in the market place, and to this end the company is developing new programs and promotions to help ensure this will remain the case.

Details ­ including the keycode ­ are being distributed to members in the September Highlights mailing. Contact NAGASA for details!

WHITE PAPER #12:
Creating and Maintaining Client Loyalty

A recent theory suggesting that customer loyalty is waning prompted NAGASA to research this topic through White Paper No. 12, entitled, Creating and Maintaining Client Loyalty. Drawing on the results of a two-page survey distributed to NAGASA members, the document was undertaken in collaboration with Terry A. Nagi of Terry A. Nagi & Associates.

Study results indicate that 88% of the respondents felt that client loyalty is on the wane while 12% did not. Results also suggested that 31% view this loss of loyalty as serious while 67% see it as being of some importance. Only 2% perceived this as having little importance. Nagi’s conclusion based on these data is that the channel assesses that time still exists to reverse this trend before it becomes serious.

The study also examines approaches that can be used to create and maintain client loyalty. One key approach calls for understanding each client’s current and future needs, and gaining this understanding requires use of tools such as annual surveys, key account luncheons, and focus groups, methodologies for which Nagi outlines in this document. Other approaches for increasing loyalty involve becoming a “one-stop provider” and expanding the hours of contact with customers. Nagi also explored the value and impact of client loyalty programs. Study results show that 33% of the respondents have these programs and that 89% of those offering them feel they are successful.

Creating and Maintaining Client Loyalty also reveals how NAGASA members can distinguish themselves from competitors. Methods that respondents suggested include many basics, such as:

• Providing better service with solid product offerings
• Complementing products & efforts
• Customer-designing products to allow customers to upgrade printing presses
• Embracing small orders
• Providing excellent inventory back-up and timely delivery
• Providing personal service and attention

White Paper 12 concludes by asking “So What’s Next?”, a section summarizing approaches that must be addressed by firms wishing to maintain client loyalty. Some of the items Nagi lists and explains as important include:

• Being easily accessible
• Offering guarantees
• Keeping in touch
• Making dealing with you fun

In addition to posting downloadable PDF files of this report in the members-only section of NAGASA’s Web site, one hardcopy per member is available without charge upon request. We’re producing this document using a Print-on-Demand (POD) model, and in some cases we might need a few days to fulfill requests. Imaged digitally in black-and-white and saddlestitched, additional copies of this 22-page self-cover document are available for $5.00/$15.00 member/non-member per copy, including shipping. For more information contact Peter or Rochelle at NAGASA by phone at 202-328-8441, fax at 202-328-8513, or email at information@nagasa.org to request a copy or order additional copies for your customers and colleagues.

Dates Announced for NAGASA Institute at GATF

The date and location for the final NAGASA Institute in 1999 has been confirmed. Developed under the direction of NAGASA’s Education Committee and its Co-chairs Brian Kroot of Northeastern Graphic Supply and Kelly VandenBosch of X-Rite, NAGASA Institutes are presented in coordination with the Graphic Arts Technical Foundation (GATF). They have been formulated as comprehensive, five-day sessions encompassing formal instruction plus hands-on workshops addressing a range of imaging and printing technologies. Taught by process experts on GATF’s staff, the NAGASA Institute helps dealers, resellers, and manufacturers who sell through the channel to enhance sales by providing attendees with a more thorough understanding of traditional and digital technologies and workflows.

The remaining NAGASA Institute of 1999 will take place on November 1–5 at GATF
facilities in Sewickley, Pennsylvania, located near the Pittsburgh International Airport. The member fee to attend the five-day NAGASA Institute is $995; the non-member rate
is $1195.

“We’re delighted to be able to continue this collaboration with our training partners
at GATF,” stated NAGASA President and CEO Peter Brehm. “The inaugural NAGASA Institute held in March was very well received by attendees, and we’re pleased to be
able to continue providing the channel with this additional member resource.” GATF President George Ryan noted that, “Printers and publishers look to dealers to help them solve process problems. GATF welcomes the opportunity to train NAGASA members
as problem-solvers. In the long-run, it helps GATF members tremendously.” Contact NAGASA at 202-328-8441 to get a course description and registration information,
email the organization at information@nagasa.org, or see www.nagasa.org.

Expand Your Marketing Efforts Through NAGASA

Marketing your organization has just gotten easier through NAGASA!
Here’s an additional chance to make your organization’s product and services known to a wider range of industry members. We want to make it easy for your company to announce and promote activities such as:

• Open houses
• New product lines
• Personnel changes and additions
• New locations
• Web sites
• Other!

All you need to do to participate is:

• Copy the attached form as needed
• Complete the form with the information that you want to announce
• Fax the form to NAGASA at 202-328-8513 OR
• Access the members-only section of NAGASA’s Web site (www.nagasa.org) and fill out the form on-line and email it to us. Alternately, sending us the announcement as an email attachment in Word speeds up the posting process.
  

Fill out and send in a form each time an event or change occurs that you want publicized. We’ll post it in the Industry News section of the NAGASA Web site and distribute it to the trade press. Start today!

NAGASA Electronic Commerce Committee Updates 820 Document

NAGASA’s Electronic Commerce Committee has updated the 820 document used for Payment Orders/Remittance Advice to make it more usable for organizations in the channel. Key to the change was an increase in the number of company identifiers that trading partners can use when describing the organization to which they are sending payments. Commenting on the upgrade, NAGASA President and CEO Peter Brehm reported that, “This effort is part of NAGASA’s Electronic Commerce Committee’s effort to expand and enhance the application of electronic data interchange in the channel.” Citing the technical management provided by Kodak Polychrome Graphics Electronic Commerce Coordinator Nelson Peck as well as the company’s underwriting of the costs associated with this update, Brehm also noted that, “The channel owes Kodak Polychrome Graphics thanks for its support in making this enhancement possible.” Software for the revised 820 document is being made available to NAGASA members.

Chaired by Jon Wright, President of Graphic Systems Incorporated, NAGASA’s Electronic Commerce Committee includes dealers, manufacturers, and other channel organizations seeking to apply electronic data interchange (EDI), bar codes, and electronic commerce (EC) tools to channel processes. More than 50 dealers, representing over 100 locations, are currently implementing NAGASA EDI standards, with additional sites anticipated to come on-line in the coming months.