Ricoh's Initiatives Aiming to Co-Create Value with Customers to Accelerate the Digital Transformation of the Printing Industry Koji Miyao, President, Ricoh Graphic Communications & Senior Corporate Officer, Ricoh

The printing industry, which has long been labor-intensive, is about to change through the incorporation of ICT into operations and the introduction of automated equipment. At the same time, clients' business sectors and needs are becoming more complex, and the workflows required for everything from order types to production environments are diversifying. Ricoh is not limited to providing production printers, but also offers comprehensive solutions to support the digital transformation (DX) of individual users.

we sat down to talk with Koji Miyao, Ricoh Graphic Communications（RGC）& Senior Corporate Officer, Ricoh.

The commercial printing market is becoming increasingly digitalized. Digital printing has been used relatively more for short runs in the commercial printing market, but since drupa2024, interest in high-speed inkjet presses has increased, and even in the mid-range of the market, the process of replacing offset printing with digital printing is beginning to emerge. It can be said that the market phase began by early adopters has moved up one level after drupa2024. I believe that high-speed inkjet presses will expand right at the center of the commercial printing market.

At drupa2024, where we exhibited our new B2-size sheetfed inkjet presses and continuous-feed inkjet presses, I sensed a strong willingness from visitors to invest in equipment. I believe that people have come to recognize that if the performance of high-speed inkjet presses is matched with the business of customers, it is possible to build an economically rational business model with high profit margins.

An obvious example is variable printing. For educational materials, there is a growing demand to customize the content for each classroom, subject, and even individual student. Capturing such demands increases added value and improves profit margins. In addition, digital printing has the advantage of being able to output materials by destination and shipment order, which can reduce costs and increase profit margins in the area of fulfillment.

In terms of product mix, we have the world's top market share in mid-range and high-end, covering low-end to mid-range and high-end products. Our product strength in specific fields is among the highest in the world, and in the inkjet field, we have the technology for heads and inks. One of our strengths is our thick backbone of technology that allows us to work from elemental development.

Another strength is our global sales outreach, valuing the corporate culture that strives to bring us closer to our customers. We are able to provide innovations in line with market needs, and because we can easily understand the needs of our customers, we are very able to propose the optimal workflow for each individual customer. Our in-house development system, from toner to ink, heads, and imaging engines, makes it easy for us to reflect the needs we gathered and quickly contribute to the success of our customers' businesses.

The GES (Global Engineer Support) department, at our global headquarters, works with the product development and design departments to customize products to meet needs that do not fit with existing products and services. GES supports both Japan and global accounts.

Value co-creation is the main focus of RGC. “Co-innovation” is an initiative in which customers, partners, and Ricoh work together to share strategies and tactics, and think of ways to achieve growth while transforming business conditions.

"One example is Sattler Media in Germany. It has added the latest RICOH Pro VC80000 after a RICOH Pro VC70000 webfed inkjet machine. The first Pro VC80000 line brought productivity benefits of 45% versus the earlier Pro VC70000 and, as a result, Sattler Media has now invested in a second Pro VC80000 line. Productivity has been improved through the enhanced speed of the press itself, inline production connected to post processing capabilities, and automatic roll paper exchange."

And Green Gift Cards in the UK has benefited from the customization of the production printer "RICOH Pro C9500" to achieve ultra-thick paper printing. By printing on thick paper that cannot be passed through standard machines, the company is proposing to its clients that they switch from plastic to recyclable paper for gift cards.

"Co-innovation" is also closely related to the digital services we offer. Digital services have two layers, one of which is the streamlining of the production workflow. It improves the efficiency of production workflows, including hardware and software, based on optimal processes. Another is internal process reform. RGC has been proposing digital reforms in the area of printing production for some time, but process reforms, for example, to efficiently receive orders for small-lot jobs and ensure that they flow smoothly to subsequent processes, will require the use of ICT. For example, we need to offer solutions that include ICT to reform customers’ internal process for efficiently receiving small-lot jobs and smoothly transferring them to the subsequent process. We recognize that our customers' needs will increase in the future, and we will be entering this area to support them.

Ricoh began its environmental initiatives early on, establishing the Environmental Promotion Office in 1976, advocating the concept of "environmental management" to simultaneously achieve environmental conservation and profit generation in 1998.

Today, The Ricoh Group as a whole has set a goal of reducing global warming gas emissions to virtually zero by 2050, and our current goal by backcasting from where we should be.

Within those goals, in the area of commercial printing, we have introduced renewable energy in the production of production printers and are contributing to the reduction of environmental impact by reducing the input of new resources through the use of electric furnace steel sheets as recycled materials. Production printers themselves are also improving their environmental performance in terms of energy conservation, reduction of paper loss, and reduction of environmental pollutants.

In terms of contributions to customers' sites, Ricoh proposes a tool to compare CO2 emissions between offset and digital printing. Ricoh estimates that, compared to offset printing, CO2 emissions during operation can be reduced to less than one-third I^*1 for the RICOH Pro C series and less than one-fourth^*2 for the RICOH Pro VC series.

In this age of ESG (Environmental, Social, and Governance), corporate governance is being evaluated in relation to the environment and society. There is a trend to support companies that are well aware of ESG issues, and good corporate behavior is key to gaining the trust of society and customers. Clients are also beginning to choose less environmentally burdensome methods for printing promotional materials, even if the cost is a little higher. At the request of a client in Australia, we purchase CO2-free power generation energy from Tasmania to run our machines.

Of course, environmental measures are necessary for business purposes, but the fundamental concept is sustainability, passing on a decent society to our children's and grandchildren's generations. I believe that Ricoh is a company where employees take this kind of thing seriously.

We believe that the appetite for automation will continue to grow. One area will be explored through Ricoh's internal efforts, such as using AI to reduce the time involved in operations and stabilizing image quality during continuous printing by providing feedback on density changes. Another is through partnerships with third-party vendors to link each process, including workflow and post-processing around the printing process. It is unrealistic to provide only a system for automation. Customers have their own individual workflows, so we need to optimize them by linking them with the devices used in each process. To do this, we will have to talk closely with our customers and partners.

Many leaders of printing companies sincerely want their employees to have a rewarding work experience. On top of that, they are oriented toward adding value by expanding their domain into the fields of logistics, design creativity, and marketing. Each company has its own approach, and I believe it fits the concept of "Co-innovation."

First of all, I believe Ricoh's role is to eliminate negative factors so that workers do not feel stressed. By supporting them with digital equipment, AI, and ICT so that they can focus on more creative work rather than simple tasks that cause stress, we can shift resources to areas with higher added value. We believe that the heart of RGC's business is to help printers move in a profitable direction.