Epson: A Printing Success Saga

The story

goes back to 1964. The event-Olympic Games in Tokyo, Japan.

Seiko Corp, the world class Japanese watch manufacturing company

was chosen the official time keeper for the event. In addition

to supplying crystal chronometers the company also developed

an innovative printing timer for the event. Four years later,

this led to the development of the world's first mini electronic

printer called EP-101. The product saw such unprecedented

success that the company was determined to produce 'many worthy

sons of the product.' And thus was born EP and Sons or simply

Epson. The birth of Epson in 1968 marked the beginning of

Seiko Epson's expansion into multi-faceted businesses in the

ensuing years. From watches to computer printers, color image

scanners to digital cameras, office computers to hand-held

computers and notebook computers, precision assembly robots

to factory automation robots, and LCD TV watches to LCD projectors-the

company has undergone a major transition to emerge as a $8

billion diversified business group.

Innovation

is the key

Despite

its diversification, the commitment to make Epson synonymous

with printers and maintain technology leadership in the printer

industry continues to be its mission. "Epson is the printer

company and will remain so in the future. However, the nature

of printing is changing rapidly and we are ready to meet the

challenges of time," asserts Toshio Kimura, Senior MD, Seiko

Epson Corp. The development of products from the mini printer

to the serial impact dot matrix to the inkjet and laser printers

over the years signifies Epson's commitment towards the printer

market. And at each stage of development it is the company's

technological breakthroughs that have propelled its growth.

Epson has clearly made its mark with its list of world's firsts.

Among these count the total automation of printer manufacturing

processes of its proprietary Micro Piezo technology for the

inkjet range of printers, the photo reproduction quality technology

for the Stylus range of printers, reaching the 1440 dpi resolution

milestone and producing the world's smallest ink droplet for

3 picoliter or developing the world's fastest color printer

at twelve pages per minute. It might still not be the #1 printer

vendor in the world but it has to its credit a number of world

firsts which make this Asian peripherals giant a name to reckon

with. "First we make the product. Then the attitude and efforts

are towards making it smaller, faster, lighter, better, more

user-friendly, energy-saving and a leader in that product

category," explains Toshiyuki Yakuwa, Senior Manager, Epson

Singapore.

That is

exactly the way Epson went about its printer business. Graduating

from EP-101 to a robust impact technology, Epson has continued

to retain the world's #1 position in the DMP segment for over

two decades. According to IDC during 1998, out of the total

five million DMP units sold worldwide, Epson captured 45%

marketshare. But faced with the threat of the shrinking DMP

market and the technology obsolescence Epson had to refocus

its efforts in the late eighties. The popularity and increasing

marketshare of the inkjet technology made this the obvious

choice for the company to zero in on this technology. Says

Yakuwa, "A late entrant in this segment, Epson decided that

the only way to survive the competition would be to have superior

proprietary technology and capability for mass manufacture,

including the manufacture of components and machinery used

in printers."

In the

early nineties, Epson succeeded in developing its own Micro

Piezo technology after painstaking R&D at its centers across

the world. Its considerable experience in other businesses

no doubt added to its advantage. The Micro Piezo technology

was derived from the expertise of the Seiko watch division.

In its endeavor to manufacture smaller and more compact watches

Seiko pioneered the Micromechatronic technology. This technology

allows extremely precise processing-down to 1/100th thickness

of a strand of human hair. "The Micro Piezo head is the key

component in the photo-realistic quality printers of Epson

that enables controlling the size of ink droplets. To this

day, this Micro Piezo technology differentiates Epson from

other printer manufacturers," says Paramjit Singh Puri, Senior

Country Manager, Epson India. Alongside the development of

printer technology, Epson looked at emerging opportunities

and identified photography, and photo-features as promising

areas where it could make a difference. Plans to work on products

related to this printer industry also began simultaneously.

"Epson's R&D was working on all aspects of the printer such

as hardware, software, medium and media used in the printing

process. Ink droplet size, shape and resolution, printer driver

technology and ink formulation were areas identified for research.

The result was Epson's five-pronged printing solution called

the Perfect Picture Imaging System (PPIS)," narrates Daisuke

Hori, Manager (Technology). PPIS, the rugged formula for Epson's

inkjet printers, is a suite of technologies used exclusively

by Epson's Stylus inkjet printers. The backbone of Epson's

inkjet printer business, the PPIS, is the result of improvisation

on all aspects of the printing process. Epson achieved this

by working on five main elements, namely, the Micro Piezo

print head technology, high print resolution, AcuPhoto

halftoning,

Epson ink and Epson special media.

MICRO

PIEZO PRINTER HEAD:

Basically

the inkjet is all about shooting ink dots onto a page. The

cleaner and rounder the dots, the sharper the output. While

the conventional inkjet technology uses a thermal printing

process to boil the ink and jet out the droplets onto the

page, Epson differed by using an electronic impulse to precisely

force the ink through the printer head. This method allows

cleaner droplets to be formed and ejected on the page. "The

modifications to the structure of the Micro Piezo print head

controls the shape of the ink droplet that is ejected. The

print head contains a number of tiny electric pumps powered

by Piezo crystals which change shape at fantastic speed and

act as highly effective pistons. This is in turn controlled

by a feature called the Active Meniscus Control, which has

a pull-push-and pull mechanism unlike other printers that

are equipped with the push mechanism only. The meniscus control

in the first pull decides the size of the droplet and in the

push factor propels the ink out of the chamber. While the

second pull stabilizes the ink thereby ensuring an accurate

firing of the ink drop which stops vibrating when it lands

on the surface," explains Hori

HIGH

PRINT RESOLUTION:

One of

the technological breakthroughs for Epson has been the achievement

of high print color resolution at 720 dpi and later on the

1440 dpi, in the mid and late nineties. This led to the promotion

of photo-realistic printer outputs for Epson in the Stylus

range. With true photo-quality in mind Epson began to produce

smaller droplets of ink to fill up the image that would result

in higher print resolution. Placing small droplets next to

each other at such proximity would give greater finish and

fineness to the quality of output. Although the 1440 dpi satisfied

the quality of outputs it was not the final answer. Smaller

dots meant increased number of dots required to cover the

page which lower the speed of the printer considerably. In

its effort to meet this challenge of maintaining speed for

the same quality Epson came up with a system called the variable

dot technology (see box). This technology incorporates two

new developments-the Ultra MicroDots (Epson has developed

the world's smallest ink droplet at size 3 picoliter, while

the average ink droplet size is still at 8 picoliter) and

the ability to print with different sized droplets. With this

technology the printer driver controls different droplet sizes

to be produced simultaneously by choosing the appropriate

size for the area of the image to be printed. Thus different

sizes of ink droplets fill up the image based on the volume

and richness of ink required. With this technology, Epson

recently launched Epson Stylus 900-the world's fastest color

printer at the 1440 dpi resolution at the rate of twelve pages

per minute.

ACUPHOTO

HALFTONING:

Epson

achieved the desired speed and photo-finish of the printed

output through a method called AcuPhoto halftoning. While

the conventional halftoning is the method used in laying ink

on paper, AcuPhoto halftoning is a method of determining how

ink droplets should be applied to a page for best print quality

results. This technology has been built into Epson's new printer

driver software. Using advanced halftoning algorithms, the

AcuPhoto halftoning module examines each page's contents,

resolution and media type and then determines the best pattern

in which to apply dots on the page. The driver also includes

color tables allowing smoother tones and gradations ensuring

the printed output closely matches the original. Epson's AcuPhoto

Halftoning comprises new technologies including Advanced Error

Diffusion and 3D look-up table for high fidelity color translation.

It also speeds up the color conversion process by avoiding

the use of complex mathematical algorithms.

QUICK

DRY INK AND PHOTO-PAPER:

With the

objective of photo-realistic output in mind, Epson worked

at improving the medium and the media used in printing. It

manufactures its own color ink used in the ink cartridges.

These ink are super penetrating and highly concentrated to

achieve quick drying of ink on the surface of the output.

Epson also develops its own special photo quality papers for

better image. The reduction of ink droplet size from 13 picolitre

in 1997 to 3 picolitre in 1999 contributed to better, sharper

image print-outs. The process of a totally automated ink cartridge

manufacturing plant has enhanced cleanliness and the quality

of ink contained in the cartridges. Its six robots control

the entire automated manufacture of ink cartridges in five

stages: foam coating, rubber sealing, ink filling foam compression

and packaging. Last year Epson grabbed 27% marketshare of

the 43 million inkjet market worldwide, with HP stealing the

show at 40% marketshare, according to IDC. With PPIS in place

Epson hopes to level its marketshare with the #1 player in

the coming years.

Product

strategies and roadmap

Having

achieved the goal it had set for its inkjet printers, Epson

is developing proprietary technology for its laser printers

at its R&D centres. A lot of emphasis has been placed on indigenous

development of color laser network capable printers. At the

same time, the concept of on-demand printing solutions for

the 21st century is also being worked out. "While the paradigm

shift was from impact to non-impact printers from the seventies

to the nineties, the future is towards on-demand printing,

photo printing and ecommerce," says Kimura. Defining the print-on-demand

concept as "a process for creating printed matter that the

user needs through various sources such as the computer, communication

equipment and printers which will be Epson's focus for the

future," adds Kimura. To this extent Epson is rethinking its

printing business. The shift is from `time to print' to `time

to market'; `reach the masses' to `capture the individual';

and `print volume' to `print value'. This shift is evident

in the company's move towards developing products such as

scanners, digital cameras, graphic printers, LCD TVs, multimedia

projectors, mobile communicator and multi-function devices.

Epson's belief is that while the first generation required

long print runs and fixed contents, the second generation

requires short printing runs with customization for content.

In the third generation, the first and second generation printing

methods would be delivered via communications infrastructure

such as the internet, and satellite relay thereby creating

a flexible print-on-demand business model. "Instead of only

output devices, the strategy would now be towards expanding

other business units providing innovative color imaging solutions.

The printer market is now polarizing as users request high-quality,

multi-functional, intelligent equipment on the one hand and

special-use equipment on the other. Epson plans to address

both the segments, " adds Kimura. Just-in-time printing, distributed

POD, personalized POD and web-enabled POD are opportune zone

areas the company has identified. The information equipment

business has indeed come a long way from a single product

division to a multi-product organization. Epson has identified

user group segments such as the, SOHO, photo, proofing, copying

and graphics as opportunity areas for print product innovation.

Products like mobile printers, page printers and customized

products are expected to hit the market by the beginning of

the millennium.

Manufacturing

strengths

Epson

has used its long years of technical experience gained in

manufacturing watches to develop sophisticated production

facilities. These include assembly robots and factory automation

(FA) systems which are used in-house and supplied to other

manufacturers. The entire assembly and sub-assembly of printer

components and most of the manufacturing processes are also

totally automated. Epson created history in 1988 by launching

the world's first automatically manufactured printer. These

self-sufficient, automated systems and processes help Epson

maintain competitiveness, quality and lower cost of manufacturing.

This also gives the company a quick turn-around time to upgrade

or develop a new product. The 35 manufacturing plants across

the globe function non stop, 365 days a year, in two shifts

of 12 hours each. Employing locals in the manufacturing plant

and providing job opportunities to about 28,000 Japanese,

Epson survived the economic crisis that hit Japan during the

last few year.

Global

perspective

Shedding

its Japanese conservative attitude, the company is gradually

making strides in the world market and expanding its operations

across the globe. "The economic crisis of Japan was one of

the most compelling reasons that made Epson reconsider its

business strategy and get a global perspective. During recession

when the manufactured products were not sold within Japan,

we had to look at potential new markets," says Yakuwa. Also

advancing towards the $10 billion mark has given Epson an

identity and a confidence to go on a global expansion spree.

Presently, Epson has set up three regional headquarters in

the US, Netherlands and China in addition to having 30 sales

affiliates and representative offices in different parts of

the world.

Environment-friendly

Epson

Epson's

concern for developing environment-friendly products has helped

it to make products that are resource-saving. It started off

with developing the world's first automatic quartz watches

as well as microcomputer-controlled, multifunction compact

watches that save resources and energy. The company declared

complete elimination of CFCs and trichloroethane from its

manufacturing facilities in 1992. In 1993 it received the

Stratospheric Ozone Protection Award from the US Environmental

Protection Agency. Epson has designated 1998 as the 'second

environmental benchmark year' for the company and has established

a new corporate General Environment Policy for global environmental

protecting. As Nobuo Hashizume, Director, Global Environmental

Policy Office, puts it, "The new policy addresses three major

objectives of preventing global warming, promoting zero-emission

activities and expanding activities towards global environment

protection."

The

Japanese origin and work culture

Each time

one looks at the world's first or smallest electronic gadget,

nine out of ten, one can rest assured it is from Japan. The

epicenter of electronics and consumer durable products, Japan

has breed most of the electronic giants of the world. From

watches to hand-held computers, electric cookers to computerized

commodes, automobile televisions to bullet trains, the range

of electronic products and technologies in the high-tech land

is amazing. Sharing the same Japanese spirit and corporate

work culture, Epson has an incredible way with electronics.

Starting with its watch business, the company has continuously

diversified its business. Coupled with this is the commitment

and hard-working nature of the Japanese. The Japanese employees

working with the robots, work with almost robot-like precision

in the factory set-up where targets and volume to be achieved

are clearly defined. The commitment of the Japanese work force

is so high that the popular joke is that when the Japanese

go on strike, they would rather over-produce than stop production.

An interesting anecdote goes that in one of the Japanese footwear

manufacturing companies, the striking employees manufactured

only half the pair, forcing the management to consider the

employees problems.

The work

culture and ambitious targets continue to be the same in Epson's

manufacturing facilities outside Japan which employ local

people. With its continued efforts in R&D, its technological

edge and a commitment to revolutionize the printer industry,

Epson is on its way to making giant steps forward.

Variable

dot technology

The latest

advances in high quality inkjet printing are found in the

newest Epson Stylus color printers which use variable dot

technology. Variable dot technology incorporates two new developments-ultra

microdots and the ability to print with different sized droplets.

Ultra microdots represent the very smallest size of ink droplets

available today. Ultra micro dots are between three and six

picolitres in size resulting in a dot diameter up to four

times smaller than the diameter of a strand of human hair

and close to the limit of resolution for the human eye. These

new incredibly small dots lead to much finer details with

less graininess and even smoother gradations. Print quality

is considerably enhanced. However, smaller dots are not in

themselves the final answer -the increased number of dots

required to cover the page can reduce printing speed. And

so Epson has introduced variable-sized droplet functionality.

The Epson Photo Enhance printer driver produces different

droplet sizes on demand, choosing the appropriate size for

the area of image being printed. It is like painting a room

by using a large brush for quick coverage and smaller, finer

brushes for areas of detail. Up to six different droplet sizes

can be produced on demand.

Note:

1 picolitre (pl) = 0.000 000 000 001 litre (dot size varies

with printer model)

The

Real Picture

The Real

Picture To address the demand for the ultimate in photo print

quality, Epson has developed photo reproduction quality (PRQ)

to accurately reproduce areas of strong color as well as areas

of pale or light colors such as skin tones. Dark colors are

normally reproduced using a high density of dots, while areas

of light color require the number of dots to be greatly reduced.

This means that for lighter tones it is not always easy to

render color gradations by dot density alone as the dispersed

dot pattern can become visible leaving a grainy effect and

preventing details from being rendered crisply. Epson has

overcome this problem by developing two key advances. Two

additional ink colors, light cyan and light magenta, and improved

driver technologies have been introduced. The two additional

inks when used in combination with the standard four colors-cyan,

magenta, yellow and black ink-allow Epson photo printers to

output with true photographic print quality. The new PRQ printer

drivers ensure that each individual ink droplet is placed

accurately. Epson's enhanced error diffusion provides an advanced

halftoning system, leading to smooth tones and gradations.

In addition the Epson Photo Enhance function automatically

adjusts color, brightness, exposure and contrast to optimize

printed output from different sources including photographs,

photo CDs, digital cameras and scanners.

Epson

bullish about India

It might

finally be good news for India. Seiko Epson Corp, the $8 billion

Japanese electronics giant, has chalked out major plans to

become aggressive in the Indian market. Plans under consideration

include setting up a sub-assembly plant for printers and an

R&D facility for its in-house software requirements. Outlining

the strategy for Epson India, T Kimura, Senior MD, Seiko Epson

Corp, Japan, says "Epson would look at input and output devices

such as printers, digital cameras, LCD color televisions,

projectors. India will have more opportunities in the innovative

color imaging solutions business." Nobuo Hashizume, one of

the directors of the company said, "Plans are under consideration

to set up a sub-assembly plant for printers in Bangalore or

Hyderabad.

However,

the final decision will be taken after Kimura's visit to India

in the near future." It is understood that Epson will create

greater awareness about its proprietary Micro Piezo technology

to establish its product superiority in the market, rather

than working on the price points. As part of its focus in

India, Epson has appointed Paramjit Singh Puri as Senior Country

Manager to steer the Indian operations and expansion plans.

Epson plans to become a 100% subsidiary in India in less than

six months and has approached FIPB for the same. According

to Singh Puri, all other major plans for expansion in India

will follow after the company becomes a 100% subsidiary.

"However,

we are strengthening our existing operations and getting more

aggressive in the market through specific programs with the

objective of becoming the #1 total printing solutions vendor

in India," he said. These programs include concentrating on

support and service operations, lowering the price of products

and consumables to suit the Indian market, setting up of offices

in other parts of the country, setting up spare parts distribution

centers and opening customer help desks across the country.

To start with Epson has set up three regional service offices

and 10 Epson authorized service centers in various cities.

It plans to have a total of 42 service centers across the

country by March 2000.

In order

to curb fake consumables in the market, Epson has launched

its genuine consumables campaign and is supplying products

with an Epson hologram and special India packaging. These

packages have also been introduced with special pricing to

suit the requirements of the Indian market. It is launching

a series of advertisements and anti-fake ink cartridge campaigns.

The company is also educating its channels and users on the

genuine consumables, in addition to making special user and

channel promotion programs in India. On the marketing front,

Epson is looking seriously at the government and corporate

segment and has made strategies to be able to participate

in tenders and large orders. There are also programs for demand

creation and increasing brand awareness. Other activities

on the anvil include road shows, displays at prominent retail

locations and bundling schemes with PCs. Training is a focus

area through which the company has already trained about 1,900

resellers and 600 engineers. Epson plans to have a year-long

program to train all its dealers and resellers. A special

Epson India web site for user enquiries and product information

was launched recently.

AKILA

SUBRAMANIAM in Tokyo