How growing a tail and Cloud Computing can increase your profitability?

In a post I have written in the past, I discussed how automation can increase the profitability of a business. That is as true today as it was in the past. Automation can make the day-to-day recurring jobs more efficient and place your business in a more competitive position.

However, on the other side of the spectrum lies another opportunity which can improve your profitability. The way to realize its potential is completely different, even opposite, but the result is the same – making more money with the resources you already have. 

This opportunity is known by the intriguing name “Long Tail”. The Long Tail is what made businesses like Amazon and Netflix successful and you can definitely use it for your own business.

What is the Long Tail?

In short, the ‘Long Tail’ means that many small opportunities are more meaningful than the few big ones a business might encounter. If we go back to the Amazon example, it means that the power of Amazon is not in selling a few best sellers – as you may find these in every bookstore – but in selling many books which are hard to find and are in less demand. Netflix is doing something quite similar. It offers an immense variety of movies - a variety no physical store could possibly hold. And while a particular blockbuster might sell well, it’s the big mass of less popular movies that helped Netflix prevail in the movie rental market.

Ok, but I’m in the printing industry. Is it relevant to me?

The short answer is “yes”. As an HP Indigo customer, you are probably already taking advantage of some of the Long Tail potential today. The HP Indigo technology is inherently superior over conventional analog technology for Short Runs. This means that while “blockbuster” runs (e.g. newspapers or milk cartons) are often being printed using analog technology, the shorter runs are being printed on digital.

This illustrates an important principal of the Long Tail. Taking advantage of the demand for movies and books Long Tail, requires special platforms (i.e. Amazon and Netflix) and similarly, Short Runs require the right platform too (i.e. HP Indigo Digital Presses).

How does Cloud Computing help you exploit this potential?

There is a reason that both Amazon and Netflix are built around a Cloud system. Cloud systems are scalable, which means that they can efficiently and economically process both small tasks as well as very heavy tasks. It means that behind the scenes, more computing power is being added or subtracted to perform the task when needed. Cloud systems are also much simpler to install and maintain. Imagine if each Netflix customer would need to install local servers to store the entire movie library it offers....

Sounds good, give me a practical example

One of the most common ways HP Indigo customers can take advantage of the Long Tail is by printing unique Variable Data Printing (VDP). VDP jobs are not the majority of the jobs, so some print shops may not invest in the right tools and processes to realize its potential. But in reality, VDP can entail huge print volumes. Consider campaigns such as Nutella “One-of-a-Kind” campaign, or Danone Aqua D’or “Flow your Way” Campaign. These are projects with millions of sellable items each – all done with HP Mosaic technology. And now, with the new HP Collage, even more potential may be fulfilled.

So how does the cloud fit in to this picture?

Just like in the case of Amazon and Netflix, your “blockbuster” products may be static labels, static business cards or static leaflets. But down the Long Tail, you may find a Mosaic or Collage VDP job. And just like Amazon and Netflix, you can use the Cloud to offer these services in an efficient manner. Specifically, you can do that with HP PrintOS – HP’s Printing Operating System in the Cloud.

Before PrintOS was introduced in 2016, processing VDP files might have required the prepress department to invest a long time in creating ready-to-print variable PDF files as they were bound by the computing power of their local PC\Mac. On the other hand, purchasing a dedicated VDP server, would entail a high investment – both financially and in IT maintenance.

But now, with HP PrintOS Composer, you can have a server farm in the palm of your hand whenever you need it, and without installing anything. Not only that, HP uses top of the line scalable hardware to run your jobs, so VDP job creation is 50x faster when compared to a local PC/Mac. So, whether you need to create a small VDP job with dozens of items, or a large VDP job with millions of items, with PrintOS you are now able do it as fast as it gets. By doing so, you can fully utilize this Long Tail opportunity. 

Feel free to explore more by visiting PrintOS.com/Composer and let me know if you have any questions or comments.