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A Blueprint for Book Publishing Transformation: Seven Essential Processes to Re-Invent Publishing by David R

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A Blueprint for Book Publishing Transformation: Seven Essential Processes to Re-Invent Publishing by David R GILBANE GROUP G A DIVISION OF OUTSELL, INC. October 1st 2010 A Blueprint for Book Publishing Transformation: Seven Essential Processes to Re-Invent Publishing by David R. Guenette, Bill Trippe, and Karen Golden Outsell’s Gilbane Group: Research Report Table of Contents Page # Acknowledgements . 6 A Blueprint User’s Guide..................................................................... 7 Executive Summary . 9 Digital Comes to Book Publishing............................................................ 10 The State of Book Publishing Today . 11 E-book Market Sizing..................................................................... 14 Trade Book Publishing: How the Kindle Drove E-book Publishing . 18 Educational Publishing: Solutions Have to Address Both Market and Cost Problems ...............24 Agility, Flexibility, and XML Help STM Publishers Meet Demands . .26 Many Challenges, Many Opportunities......................................................28 Book Publishing’s Seven Essential Publishing Processes . 31 Mapping Processes to Specific Systems . 31 Planning Processes and Systems ........................................................... 32 Editorial and Production Processes and Systems . .48 Rights and Royalties Processes and Systems ................................................. 57 Manufacturing Processes and Systems......................................................59 Marketing and Promotion Processes and Systems ............................................69 Sales and Licensing Processes and Systems.................................................. 71 Distribution and Fulfillment Processes and Systems . 74 Publishing Processes: Steps toward Better Efficiencies . 84 What is a Digital Book?.....................................................................86 Digital Reading Experience................................................................88 The Many Forms and Faces of Digital Publishing.............................................. 93 The Quest for “Searchability” ..............................................................95 Utility, and Other Benefits of Digital Content................................................. 97 When is a Digital Book a Print Book? ........................................................98 Digital Book Publishing Industry Outlook . 102 E-Books Have Arrived . .104 XML Becoming Core Publishing Technology . 106 Digital Publishing is Digital Printing........................................................ 116 E-Reader Devices in Flux, But So What? . 123 Significant Barriers Remain...............................................................128 Integration and Interoperability........................................................... 132 Rich Media and Enhanced E-Books . 138 A Brief Glimpse into the Future............................................................ 147 Table of Contents (continued) Page # Blueprint Case Studies . 151 Wolters Kluwer Health: Digital – and the Right Partner – First . 151 McGraw-Hill Higher Education: Going All Out Digital Starts with XML-Early Education............ 158 John Wiley & Sons: When Digital Means Print . 165 Hachette Book Group: Sticking to Standardization and Best Practices .......................... 174 Appendix A: Blueprint Study Methodology...................................................180 Appendix B: Survey Results ................................................................ 182 Introductory Section of Survey............................................................184 Publishing Processes Sections . 185 Trans-Publishing Processes: Goals and Barriers to Digital Publishing . .190 Appendix C: Blueprint Sponsors and Vision Statements ........................................192 Aptara: Driving Digital Innovation in Publishing . .192 BISG: Informing and Empowering the Book Industry ......................................... 193 Hewlett-Packard Company: Imaging and Printing Business . .194 MarkLogic: Revolutionizing the Way Today’s Enterprises Consolidate, Discover, and Distribute Information ...............................................................196 North Plains Systems Corporation......................................................... 197 Océ North America, Production Printing Systems: Delivering Productivity across the Enterprise . .198 Really Strategies, Inc.: Eliminating Barriers for Publishers to Create and Deliver Content to the World Market.......................................................200 Appendix D: Digital Book Publishing Industry Directory........................................202 Appendix E: The “Blueprint” Team . 275 Table & Figure Titles Page # Table 1. New Title Production Numbers, 2008 and 2009......................................... 11 Table 2. Non-Traditional Book Production Numbers............................................ 12 Figure 1. Publisher Type . 13 Figure 2. Worldwide E-Books Market by Segment, Content Sales Only, 2009....................... 14 Figure 3. Worldwide E-Books Market as a Proportion of Total Books, 2009 . 15 Table 3. Regional E-Books Market Size and Growth, 2009 . 16 Figure 4. Percentage of Gross Revenue from E-book Publishing Today . 16 Figure 5. Expected Gross Revenue from E-book Publishing in Five Years ............................17 Table 4. Kindle E-Book Availability by Book Type, Spring 2010 . 18 Table 5. Sample E-Book Cost and Revenue Analysis . 21 Table 6. Differences Across E-Book Devices, Smartphones, and Tablets . 23 Figure 6. Book Publishing Segments Represented in Blueprint Survey . 29 Figure 7. Software System Used in Planning................................................... 33 Table 7. Klopotek Modules.................................................................. 38 Table 8. Focus on Publishing Software Modules................................................44 Table 9. Firebrand Technologies Title Management Solutions Modules............................45 Figure 8. Digital Editions Considered During New Title Planning . .46 Figure 9. Relative Timing of Digital and Print Title Development . 47 Figure 10. Digital-Only Title Consideration . 48 Figure 11. DAM Usage Versus Other Solutions . 50 Figure 12. End Format for Print Books . 53 Figure 13. Usage of Outsource Services for Print Publishing...................................... 55 Figure 14. Usage of Outsource Services for E-Book Publishing . .56 Figure 15. Lulu.com’s Recent Charge Schedule for POD Books ...................................68 Figure 16. Promotion and Marketing Activities . 70 Figure 17. CoreSource as Distribution Channel . .77 Figure 18. CoreSource Fulfillment Platform ................................................... 78 Figure 19. Firebrand Technologies ONIX Platform..............................................80 Figure 20. E-Book or Print Book? . 86 Figure 21. Untethered Device Adoption Rates . .89 Figure 22. The Voyager Company’s 1991 “Expanded” Book ......................................90 Figure 23. Disney Reader, with Callouts of Interactivity . .92 Figure 24. Interactivity Takes Many Forms . 93 Figure 25. Online Access to Digital Texts . 94 Figure 26. Mixable Textbooks . .95 Table & Figure Titles (continued) Page # Figure 27. Digital Printing and Digital Workflows . .100 Figure 28. BISG “Point of No Return” Findings ................................................ 102 Figure 29. Kinds of Digital Publications Produced by Book Publishers ............................106 Figure 30. Length of Time of XML Used by Book Publishers ..................................... 107 Figure 31. Percentage of Titles in XML at Book Publishers . 108 Figure 32. Reasons for Using XML........................................................... 110 Figure 33. Use of XML Repositories for Content and Metadata . 111 Figure 34. Reasons for Using XML Repositories . 112 Figure 35. Reasons for Not Using XML Repositories............................................ 114 Figure 36. Perception of E-Books’ Support of Digital Printing ................................... 116 Figure 37. Reasons for Using Digital Printing...................................................117 Figure 38. Book Publishing Companies’ E-Book Production Numbers ............................124 Figure 39. Digital Formats in Use at Book Publishers........................................... 125 Figure 40. Respondents’ Reasons for Digital Publishing ........................................126 Figure 41. E-Readers Galore! . 127 Figure 42. Levels of Interoperability Among Publishing Processes at Book Publishers . 133 Figure 43. A Glimpse of Integration to Come? North Plains TeleScope Publishing Platform ...........137 Figure 44. Level of Rich Media Use in Digital Publishing Efforts Today ............................ 139 Figure 45. Level of Rich Media Use in Digital Publishing in Five Years . .140 Figure 46. “Columbus: Discovery” Multimedia Title, 1991 . 141 Figure 47. “The Elements,” a Contemporary Enhanced E-Book . .142 Figure 48. A Sampling of Video Formats . .144 Figure 49. A Copia E-Reader, Showing a Reading Community Review Page . .146 Figure 50. Disruptive Technologies on the Horizon . 148 Table 10. Major Cloud Vendors and Services . 149 Figure 51. Respondents’ Self-Identification with Specific Publishing Process ......................186 Figure 52. Respondents’ Identification of Size of E-Book List . .186 Figure 53. Position Title Breakout for Planning ................................................ 187 Figure 54. Position Title Breakout for Editorial and Production . 188 Figure 55. Digital Publishing Gross Revenue Percentages
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