"Sub-cloud such as co-workers different song." Printing and freight, the two have been irrelevant to the industry under the magnifying glass of the same kind of business thinking has become so similar. Printing or logistics industry concentration was lower than the U.S. prices are also more opaque, entrepreneurs believe that in these industries from the two U.S. companies who see the future of their industry. However, the revelation of InnerWorkings and Echo successful Chinese entrepreneurs must not stop there. China's service sector is highly centralized planning to a high degree of evolution of discrete disorder. Today, in addition to telecommunications and financial energy monopoly services industry, most services are fragmented by hundreds of thousands of small owners, from retail to travel to the property and both are true. It is because of the wide diversity of these small owners, the various service industry segments produced a large number of "intermediary" to brokerage houses, from the wholesaler to the tour guide. Promote the prosperity of China's service industry in a particular stage of historical development, however, as rising consumer groups on the pursuit of quality and cost, "Disintermediation" will become a common trend in many industries.
In the winter of 2001, a service was established in Chicago in the commercial printing market, the company InnerWorkings. Printed in the USA market in 2004 had reached $ 160 billion in scale. But slow growth in this market (annually only 2% to 3%), and highly discrete (there are 44 000 more than the printing plant, and the largest plants accounted for only 4.3% share of the market as a whole). However, InnerWorkings has created since the inception of $ 4,000,000 income from 2002 to 4 billion U.S. dollars in 2008 revenues, the seven-year growth of 100 times, and in 2006 successfully landed on the Nasdaq, the market value of once nearly 900 million U.S. dollars. In the era of the paperless trend of increasing prevalence, this does not have any printing equipment business how to have such opportunities?
The original the InnerWorkings The team found that the unspoken rules of an industry: printing the biggest cost from expensive professional printing equipment investment, industry-wide equipment idle rate has reached the highest peak in the past 30 years. On the other hand, many large and medium-sized enterprises in order to complete a variety of printing tasks at the same time and more than 20 printing units dealing with the complicated procedures and can not because the procurement quantity and greater bargaining power. The InnerWorkings put in a lot of resources have created a database called PPM4, there are more than 8000 printing device information, historical pricing information, current equipment situation and other data. When the sales representative for customers to submit a print job, InnerWorkings system will create a spot market, according to user needs and a database of real-time dynamic way to use dynamic bidding for customers in the printing plant of the idle equipment resources to find much lower than the long-term market average level (usually at least 10% to 20%) of the service. To provide users with such a low price case, InnerWorkings still be able to obtain up to 30% of the proceeds to be seen how much the efficiency of their systems upgrade for the original discrete disorder in the commercial printing market. Is more valuable the InnerWorkings database of information increasingly accurate and efficient with the increase of customer service that all brands like Unilever, so the big companies will outsource printing, promotional and display relevant documents, including the direct messages sent by purchase order printing, commercial printing, packaging, etc. to InnerWorkings.
With rising consumer groups on the pursuit of quality and cost, to disintermediation (disintermediation) will become a common trend in many industries
If the story ends, which is probably just an industry model innovation exploration. What happened next gave birth to a new business model thinking.
In 2005, the InnerWorkings the founder EricLefkofsky of and RichHeise in a new industry founded a new enterprise: large and medium-sized enterprises, logistics outsourcing service provider EchoGlobalLogistics.
And commercial printing, 600 billion U.S. dollars the freight market is highly discrete, more than 100,000 service providers. At the same time, there is always more than 30% of the transport capacity is idle. Echo daily from more than 15,000 customers to get their day's freight demand, and then use its unique database system ETM automatically generate an idle capacity freight provider list and they may be pricing distribution. Echo this prediction through the network directly to it outside the call center in India. Center customer service will accordingly freight provider by telephone and on the list and talk about price, while the capacity to collect in the process of talking about price and price information timely input ETM database. As InnerWorkings buyers idle printing equipment, Echo created a spot market for the idle capacity of resources. According to statistics, by the Echo, the average customer per unit can save 6% to 12% of the cost. Echo income of $ 7,000,000 from its inception in 2005, rapid growth to $ 260 million in 2009, up 37-fold in five years, and successfully listed on NASDAQ in 2009.
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