Printnation.com--Inside, Looking Out

David Steinhardt has built a 17-year career on being what he terms a professional outsider—having worked for four industry associations. Today, Steinhardt is vice president of industry relations at PrintNation.com. He's now an Internet insider.

BY MARIE RANOIA ALONSO

David Steinhardt was an outsider—if you consider being knee-deep in association work and issues the definition of outside the actual nuts-and-bolts of the printing industry. Interesting. What if the definition of inside the commercial printing industry also meant being an insider at an emerging Internet company, serving the equipment, production and business needs of the commercial printing industry? This is Steinhardt today.

Certainly, Steinhardt's path over the past 17 years has involved him with all components of commercial printing, including printers, publishers, print buyers, advertising agencies, dealers and manufacturers.

But who is Steinhardt?

Most recently, Steinhardt served as executive director of PrintImage International (formerly the National Association of Quick Printers), the trade association that represents small- to medium-sized commercial printers, quick printers and copy centers.

Prior to his work within PrintImage, he served as the first president and CEO of the North American Graphic Arts Suppliers Association (NAGASA), positioning the association as the key player in dealer channel strategies and distribution.

He has also held positions as vice president and COO of the Graphic Communications Association (GCA) and director of member programs for Printing Industries of America (PIA).

Today, this association activist and industry insider sports a more techno title—vice president of industry relations for PrintNation.com, a dotcom company targeting the commercial printing marketplace. PrintNation.com is an e-commerce superstore that offers more than 100,000 products from over 1,300 manufacturers to the commercial printing industry—online and 24/7.

In short, Steinhardt has been dotcomed. So, is Steinhardt's own professional transformation within the commercial printing industry a reaction to, or result, of a changing landscape of technology?

Is his migration a physical realization, of sorts, of the absolute pull of the Internet on the community of print? With the rapid progress of Internet services and technologies targeting commercial printing in a variety of business-to-business applications, the entire way the commercial printing industry does business is changing.

So, too, is Steinhardt—and dozens of association and commercial printing executives like him who have achieved veteran-level status in supporting and enhancing the multi-faceted segments of the printing community, and are now joining Internet companies targeting and servicing commercial printing.

In recent months, there have been numerous news releases announcing top commercial printing executives and association officials, such as Steinhardt, who have left their more conventional—dare to say, analog—jobs in the printing industry for new, executive-level opportunities with a host of dotcom companies, ranging from Printnation.com to Impresse to Noosh to Collabria and more.

It's time to sit down with Steinhardt and get the full story . . .

PI: Why is the commercial printing community, as a collective, embracing e-commerce for extra services?

Steinhardt: Printing Websites now offer everything from job bidding opportunities, job tracking, classified advertising to equipment auctions and peer-to-peer forums—resulting in a period of tremendous growth and transition for the industry. Someone has described this Internet-based, business-to-business revolution as Silicon Valley Meeting the Printing Industry.

Since I joined PrintNation.com, I've had a number of conversations with associates and friends from all parts of the industry. It's fascinating to compare everyone's perspectives on these changes, because we are all experiencing new dynamics in business. It might sound cliché, but it truly is an exciting time to be involved in this industry.

The Internet and technology have led to incredible strides in businesses' ability to meet needs in a faster and more economical way. With these developments comes a seemingly endless array of possibilities and great excitement. Skyrocketing stock prices are a testament to this.

The Internet is bringing about a lot of what I believe to be change for the better. But along with it, there are many questions, and a great deal of fear, particularly about developing a sound, profitable business model. Only time will tell where our industry will be five years from now. But the Internet is here to stay, and e-commerce will inevitably change the face of the printing industry.

Printing Websites now offer everything from job bidding opportunities, to job tracking, classified advertising, equipment auctions and peer-to-peer forums—resulting in a period of tremendous growth and transition for the industry.

PI: What is the most dramatic change facing the industry today as it relates to the Internet and e-commerce? And why did you join a dotcom company?

Steinhardt: Today, the most dramatic change in the industry is the process of how we conduct business, driven primarily by what we refer to as the e-commerce revolution. Just as with other industries, e-commerce is transforming our business model, of which we're right in the middle. We're definitely in a transitional phase right now. Surely, when we look back at today in 2005, the industry will not appear like it now does.

Last July, The Wall Street Journal wrote, "As online, business-to-business accelerates faster than almost anyone expected, one thing is for certain: Buying and selling will never be the same." I suppose that's what led me to where I am today. Seeing all this change around the industry, I wanted to take a proactive role in these advancements and I agreed with exactly what PrintNation.com was already doing for the printing industry. It was time to make the move to be an insider.

PI: You say the industry will be different in 2005. As someone who has witnessed a great deal of changes in the industry, what do you believe we can expect?

Steinhardt: When I began work with the GCA in the early 1980s, we worked with a wide range of printer and supplier companies. If someone had told me then what is now happening in the industry, I would have said they were crazy. Could anyone have had the foresight to predict the transformation of the supplier community? Witness how once-select giants such as 3M, DuPont and Kodak have given way to the broad spectrum of suppliers and resellers that we have today. Although this shifting of the channel is relatively new to the printing industry, I believe we are about five years behind other industries.

Simply take a look at what has happened to the telecommunications or the computing industries. Competition has increased significantly as the number of suppliers has grown, and the once-dominant companies like AT&T and IBM have lost their edge. They're far different today than what they once were. There's a competitive environment now, and those companies are right in the thick of it, fighting for their share of the market.

It will be the same in our industry.

PI: What's the Internet model for the printing industry?

Steinhardt: A 1998 GAMIS study found that 76 percent to 84 percent of graphic arts companies in North America had Internet access. But only 35 percent had Internet access throughout their companies. As an industry, we are far, far behind the Fortune 1000 companies, of which more than 98 percent have company-wide Internet access. Even the much-maligned educational system is ahead of us: More than 90 percent of schools have Internet access, over 50 percent of all instructional classrooms, and that's growing at a rate of 27 percent.

The fact is, our industry is falling behind in economic growth, and investment is low. What's required is a new business model to streamline the process, to connect ordering, purchasing, distribution, production tracking and business information. The shift toward business-to-business, e-commerce provides the tools to achieve this end.

PI: What are the barriers to buying over the Internet? Why will or won't printers really take to print buying over the 'net—for the long haul?

Steinhardt: Many industry reports state that 70 percent to 80 percent of printers are now online. Take a look at the TrendWatch Forecast 2000 report: Thirty-eight percent of printers surveyed already purchase computer software via the Internet, and 31 percent go online to purchase equipment and computer hardware. So printers are buying online.

What are the key barriers to buying online? First, is access. It appears that most printers' online access was born out of the need to transmit files electronically; however, Internet access is still available in only four out of five companies.

Secondly, the mechanics of the buying process on the 'net have to mirror the traditional buying process. The electronic version must have similar payment terms, custom pricing, as well as reliable customer support and service.

Third, and perhaps most important, the buyer has to feel comfortable with buying online. Convenience and pricing are important; however, building a strong relationship with the buyer—just as in the past—will be essential.

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PrintNation.com and Steinhardt, individually and collectively, are interesting case studies on the evolution of the community of print. It seems as though every aspect of the printing community is being attracted to, or targeted by, the Internet.

PrintNation.com is putting purchase decisions at the click of a mouse, with discounted prices to boot. A seasoned printing industry association official, Steinhardt is now helping PrintNation.com click along at high speeds—serving the needs of commercial printers, around-the-clock. If industry insiders like Steinhardt continue to join the e-companies, advising them on the needs, challenges and production requirements driving commercial printing organizations, these e-commerce providers will grow to further understand and, ultimately, better serve the community of print.

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