Case Study for Digital Division

Case Study Report: R.R. Donnelley & Sons: The Digital Division

Merary Buitrago

Florida National University

RR Donnelley is a global provider of integrated communications. The company works collaboratively with more than 60,000 customers worldwide to develop custom communications solutions that reduce costs, drive top-line growth, enhance ROI and increase compliance. They are now launching a four-color digital printing that require different economics and required skills. With this new launch it allows for rapid response and customization, economically has smaller runs and requires a lot less money.

1. How do the critical success factors of Donnelley’s traditional printing business compare with those for on-demand digital printing? How did these differences shape the agenda and tasks of Rory Cowan?

For traditional printing business, Donnelley considered long-term relationships with customers to be the main focus. They build a plant specifically for each one, with equipment dedicated to its needs. The traditional print business was one of high fixed and low variable costs. The longer the run length on the print machines, the lower the cost per page. This is a competitive advantage over other companies in the fact that the total cycle time would be reduced by orders of customization. The company could offer exactly what the customer wanted which would result in better sales.    

The industry was changing and in contrast to the traditional methods of printing it was moving increasingly towards ‘mass communication’, customers’ required shorter runs, more versions, tailored inserts and greater use of color. Customers themselves were able to create and print their own documents since the introduction of desktop publishing, Technology was taking over and with digital four colors, computer-to-plate, customizable prints, it meant that the traditional printing business would go out of work. On-demand printing (POD) provided the elimination of a range of costly...