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THEPOINT
R.R. Donnelley & Sons has made several moves this year to bolster its Web operations, including spinning off its online services group.
Even printing, the business owing the most to Gutenberg's press, is seeing an upside to the Internet's advance. Consider the case of Chicago-based R.R. Donnelley & Sons Co., the world's second-largest printer, which unveiled two ambitious Internet initiatives late last month.
On May 23, the $5.4 billion company announced it was spinning off its online ser vices group as a subsidiary and christening it Red Rover Digital. Three days later, Donnelley announced it was exploring ways to use the Web to "create supply chain ef ficiencies" with fellow printing industry giants Quebecor World Inc., Quad/Graphics and Banta Corp.
Donnelley is moving into services to reduce its dependence on manufacturing, said Michael Winkel, exec VPstrategy and planning.
"All we see on the horizon says printing is] going to continue to be a business that's going to be good,' Winkel said. "But will it be a growth business and a high-margin business? In all likelihood, it will not be the engine to provide growth for our investors, customers and employees."
Downers Grove, Ill.-based Red Rover, which will be run by President-EO Kimberly Williams, is a key component in Donnelley's diversification strategy The business, which began with three employees in...