| When major changes occur in a target market, | | | | time of the day or night from anywhere with an |
| we leaders of companies can view such changes | | | | internet connection. |
| as doom-and-gloom or as opportunities. In my | | | | At the same time, however, as a company we |
| own case, some daunting marketplace challenges | | | | are going after more high volume corporate |
| in the form of new technologies virtually | | | | accounts and have focused on developing better |
| eliminated my original value proposition. I was | | | | relationships with larger clients who have jobs |
| faced with the choice of packing it all in, or finding | | | | requiring specialty packaging and high levels of |
| a way to convert these challenges into new | | | | customization, such as fulfillment and complicated |
| marketplace offerings and give my business a | | | | shipping. Many of these jobs are for corporate |
| thriving "second chance." I chose the latter. | | | | communications purposes and are generally for |
| My firm CDWorks is a Boston-based business at | | | | 1,000 to several hundred thousand discs. Our |
| the lower-tech end of high-tech. Our service is | | | | knowledge of packaging options and sources, and |
| duplication of electronic data such as conference | | | | experience with all the details and pitfalls of disc |
| presentations, company catalogs and corporate | | | | replication has become the foundation for |
| communications. The early days of CD were | | | | delivering value to our customers. |
| technologically challenging, requiring specialized | | | | Stanford University economist Paul Romer has |
| knowledge such as deciphering SCSI and cable | | | | said that a crisis is a terrible thing to waste. For |
| termination and even the physical positioning of | | | | us, anticipation of a crisis is now a call to action |
| files on the disc. Advances over the years have | | | | and, clearly, making changes before reaching a |
| reduced the knowledge level to that of operating | | | | crisis situation is essential. The trick of course is to |
| a simple copier: place the disc in the drive and key | | | | see the crises before they actually come and to |
| in the number of discs. Disc printing adds more | | | | be able to identify the real from the threatening. |
| complexity because of the many choices available | | | | The arrival of the Internet appeared to be a crisis |
| and the trade-off of advantages and | | | | at one point in time, but we were correct in our |
| disadvantages of each, but the simplicity of the | | | | assessment that it would co-exist with physical |
| process has opened up the market to hosts of | | | | distribution. Some sectors of the market have |
| competitors who can enter for very little money | | | | naturally been more affected than others, and our |
| and less technical know-how. | | | | focus on commercial duplication has helped us |
| Ten or twelve years ago, we needed to explain | | | | avoid the more dramatic broad-market challenges |
| to our customers what a CD was and help them | | | | faced by the music industry. |
| understand how it could be used. A typical job | | | | In a technology-based business such as ours, |
| included creating several iterations of a master | | | | obsolescence and technological advances are a |
| disc before one was working as desired, and then | | | | fact of life. We are constantly on the lookout for |
| making up to a couple of hundred discs. But now, | | | | the next wave, and responding to the needs of |
| the service that we provided through that work | | | | our customers remains paramount. We need to |
| no longer has the value that it used to. | | | | maintain a balance between innovation and the |
| Our customers now create their own discs and - | | | | established market. Some years ago, for |
| in most cases - send us a master disc ready to | | | | example, we found ourselves moving "backwards" |
| be copied. They will make the small quantity | | | | to producing VHS tapes because our DVD |
| copies themselves but come to us when | | | | business - then in its infancy - still required video |
| hundreds or thousands are needed. We now work | | | | on VHS for the many consumers not yet capable |
| in a market where CD-R and even DVD-R are | | | | of playing DVDs. Now producing a VHS tape is |
| ubiquitous and new disc formats and new media | | | | relatively rare. |
| formats, such as flash memory cards and USB | | | | Other major changes in our industry have included |
| memory sticks, abound. Equipment for our | | | | the rise of competitors from related businesses |
| customers to bring the work in-house is | | | | adopting our technology in order to keep up with |
| inexpensive and readily available. | | | | us. For example, tape duplicators moving into disc |
| In order to survive and prosper in this | | | | duplication and some printers offering replication |
| environment, we have had to morph our business | | | | as an added service. To battle these challenges, |
| to stay one step ahead of the technology and | | | | we chose to provide a one-stop resource for our |
| market changes. Rather than competing with the | | | | customers including providing print materials along |
| do-it-yourselfers, we have chosen to harness | | | | with CD and DVD discs. We now provide also |
| their desires by providing the tools they need. | | | | such additional services as converting video to |
| CDWorks has introduced an online creation | | | | DVD and duplicating data on new media. It's a |
| capability where the user can upload files and | | | | constantly evolving reality, always aimed at |
| produce a complete CD package. This includes | | | | keeping one or two steps ahead of the |
| basic print options such as disc art and jewel case | | | | competitive game. To do otherwise is to accept |
| inserts, that can be designed online with stock or | | | | defeat and assume, wrongly, that there's nothing |
| custom art. The customer can do this at any | | | | we can really do. |