What Is a White Paper?
A white paper is an informational document issued by a company or not-for-profit organization to promote or highlight the features of a solution, product, or service that it offers or plans to offer.
White papers are also used as a method of presenting government policies and legislation and gauging public opinion.
KEY TAKEAWAYS
A white paper promotes a certain product, service, or methodology to influence current and prospective customer or investor decisions.
Three main types of white papers include backgrounders, numbered lists, and problem/solution white papers.
A white paper provides persuasive and factual evidence that a particular offering is a superior product or method of solving a problem.
White papers are commonly designed for business-to-business marketing purposes between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
Purpose of a White Paper
White papers are sales and marketing documents used to entice or persuade potential customers to learn more about a particular product, service, technology, or methodology.
White papers are commonly designed for business-to-business (B2B) marketing purposes between a manufacturer and a wholesaler, or between a wholesaler and a retailer. It can provide an in-depth report or guide about a specific product or topic and is meant to educate its readers.
The facts presented in white papers are often backed by research and statistics from reliable sources and can include charts, graphs, tables, and other ways of visualizing data. A white paper can communicate an organization’s philosophy or present research findings related to an industry.
Types of White Papers
A startup, large corporation, or government agency will use white papers differently. There are three main types of white papers, including backgrounders, numbered lists, and problem/solution white papers.
Backgrounders detail the technical features of a new product or service. Designed to simplify complicated technical information, they are used to:
•Support a technical evaluation
•Launch a product
•Promote a product or industry leader
Numbered lists highlight the key takeaways of a new product or service, and are often formatted with headings and bullet points such as the following familiar format:
•3 Questions to Ask
•5 Things You Need to Know
•10 Tips
Problem/solution papers identify specific problems faced by potential customers and suggest a data-driven argument about how a featured product or service provides a solution to:
•Generate new sales
•Educate salespeople on product characteristics
•Build industry interest.
How to Write a White Paper
White papers differ from other marketing materials, such as brochures. Brochures and traditional marketing materials might be flashy and obvious, but a white paper is intended to provide persuasive and factual evidence that solves a problem or challenge.
A white paper should provide well-researched information that is not found with a simple internet search and have a compelling narrative to keep the reader’s attention. The author of a white paper should:
- Research and fully define the topic.
- Create an accurate outline of information.
- Write an attention-grabbing introduction.
- Format the paper for easy reading.
- Revise and proofread.
What Is an Example of a White Paper?
All of these documents, publicly available on Microsoft’s website, focus on aspects of the company’s suite of cloud services. In contrast with brochures, these white papers don’t have a clear sales pitch. Instead, they dive into relevant topics, such as cloud security, hybrid clouds, and the economic benefits of adopting cloud computing.
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How Have New Industries Used White Papers?
Cryptocurrencies have also been known to publish white papers during initial coin offerings (ICOs) and frequently issued white papers to entice users and “investors” to their projects.
Bitcoin famously launched a few months after the pseudonymous Satoshi Nakamoto issued its famous white paper online in October 2008.
Why Is It Called a White Paper?
White Papers may have developed from the use of “Blue Papers” in 19th century Britain, where a Parliamentary report cover was blue. When a topic for the government was less serious, the blue cover was discarded and published with white covers. These reports were called White Papers. In the United States, the use of government white papers often means a background report or guidance on a specific issue.
The Bottom Line
A white paper is an informational document issued by a company, government agency, or not-for-profit organization to promote the features of a solution, product, or service that it offers or plans to offer. The facts presented in white papers are often backed by research and statistics from reliable sources and commonly written in one of three formats that include backgrounders, numbered lists, and problem/solution papers.
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A white paper is a report or guide that informs readers concisely about a complex issue and presents the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision. A white paper is the first document researchers should read to better understand a core concept or idea.
The term originated in the 1920s to mean a type of position paper or industry report published by some department of the UK government.
Since the 1990s, this type of document has proliferated in business. Today, a business-to-business (B2B) white paper is closer to a marketing presentation, a form of content meant to persuade customers and partners and promote a certain product or viewpoint.That makes B2B white papers a type of grey literature.
In government
The term white paper originated with the British government and many point to the Churchill White Paper of 1922 as the earliest well-known example under this name.In the British government, a white paper is usually the less extensive version of the so-called blue book, both terms being derived from the colour of the document’s cover.
White papers are a “tool of participatory democracy … not [an] unalterable policy commitment”. “White papers have tried to perform the dual role of presenting firm government policies while at the same time inviting opinions upon them.”
In Canada, a white paper is “a policy document, approved by Cabinet, tabled in the House of Commons and made available to the general public”. The “provision of policy information through the use of white and green papers can help to create an awareness of policy issues among parliamentarians and the public and to encourage an exchange of information and analysis. They can also serve as educational techniques.”
White papers are a way the government can present policy preferences before it introduces legislation. Publishing a white paper tests public opinion on controversial policy issues and helps the government gauge its probable impact.
By contrast, green papers, which are issued much more frequently, are more open-ended. Also known as consultation documents, green papers may merely propose a strategy to implement in the details of other legislation, or they may set out proposals on which the government wishes to obtain public views and opinion.
Examples of governmental white papers include, in Australia, the White Paper on Full Employment and, in the United Kingdom, the White Paper of 1939 and the 1966 Defence White Paper.
In Israeli history, the British White Paper of 1939 – marking a sharp turn against Zionism in British policy and at the time greeted with great anger by the Jewish Yishuv community in Mandatory Palestine – is remembered as “The White Paper”
In business-to-business marketing
Since the early 1990s, the terms “white paper” or “whitepaper” have been applied to documents used as marketing or sales tools in business. These white papers are long-form content designed to promote the products or services from a specific company. As a marketing tool, these papers use selected facts and logical arguments to build a case favorable to the company sponsoring the document.
B2B (business-to-business) white papers are often used to generate sales leads, establish thought leadership, make a business case, grow email lists, grow audiences, increase sales, or inform and persuade readers. The audiences for a B2B white paper can include prospective customers, channel partners, journalists, analysts, investors, or any other stakeholders.
White papers are considered to be a form of content marketing or inbound marketing; in other words, sponsored content available on the web with or without registration, intended to raise the visibility of the sponsor in search engine results and build web traffic. Many B2B white papers argue that one particular technology, product, ideology,[10] or methodology is superior to all others for solving a specific business problem. They may also present research findings, list a set of questions or tips about a certain business issue, or highlight a particular product or service from a vendor.
There are, essentially, three main types of commercial white papers:
Backgrounder: Describes the technical or business benefits of a certain vendor’s offering; either a product, service, or methodology. This type of white paper is best used to supplement a product launch, argue a business case, or support a technical evaluation at the bottom of the sales funnel or the end of the customer journey. This is the least challenging type to produce, since much of the content is readily available in-house at the sponsor.
Numbered list: Presents a set of tips, questions, or points about a certain business issue. This type is best used to get attention with new or provocative views, or cast aspersions on competitors. Also called a listicle this is the fastest type to create; a numbered list can often be devised from a single brainstorming session, and each item can be presented as an isolated point, not part of any step-by-step logical argument.
Problem/solution: Recommends a new, improved solution to a nagging business problem. This type is best used to generate leads at the top of the sales funnel or the start of the customer journey, build mind share, or inform and persuade stakeholders, building trust and credibility in the subject. This is the most challenging type to produce, since it requires research gathered from third-party sources and used as proof points in building a logical argument.
While a numbered list may be combined with either other type, it is not workable to combine a backgrounder with a problem/solution white paper. While a backgrounder looks inward at the details of one particular product or service, a problem/solution looks outward at an industry-wide problem. This is rather like the difference between looking through a microscope and looking through a telescope.
A white paper is an authoritative guide that discusses issues on a certain subject, along with a proposed solution for handling them. The term, “white paper”, came about after the government color-coded reports to indicate who could access them, with the color white referring to public access
White papers are commonly used today in the fields of business, politics, and technology to discuss challenges, issues faced, and solutions on how to overcome the challenges.
Types of White Papers in Companies
There are three types of white papers that are commonly used by companies:
Benefits of the business – A case study of how a business process or specific technology can increase productivity
Technology – Discusses a specific technology and its benefits
Hybrid – Addresses the benefits to the business along with some technical details on the product/service.
Also, white papers are now being used commercially as a document for marketing and sales. They are also prominently used in the field of technology to discuss the potential uses of a new product and how it can help increase the efficiency of processes in companies.
Although a white paper discusses the uses of the product, it is ultimately a marketing tool that promotes the company through a sponsorship of the document. The distribution of the paper also helps the company gain sales leads.
Choosing a Topic for a White Paper
Keep the following points in mind when selecting a topic for a white paper:
- Audience
Similar to writing an article or an essay, the audience is the first factor that is considered when writing a white paper. For a business, they can be longstanding customers of the company or new customers who will learn more about the business and its products and services through the document.
The white papers published by the government will discuss urgent issues and current events in the economy that the general public will want to learn more about.
- Expert analysis
The white paper must be written by someone with extensive industry knowledge of the product or service and a thorough understanding of the subject at hand. For companies, the document should provide in-depth research on the product and highlight how it can help benefit customers. - Problem-solving
While the white paper provides detailed information about the company’s product/service, it should also address problems faced by customers and how the product can solve the problem. The problem must be relevant to the industry and the customer. Very often, white papers are written to address how a product can help the customer evolve with the new trends and techniques in the field.
Format
A white paper should be structured in the following way:
- Introduction
The introduction is an overview of the white paper. It discusses the main points that comprise the document. It also helps the customer identify if the content in the report is relevant to them. - Problem statement
The problem statement is the specific problem issue faced by customers that the white paper will discuss. The statement must be in line with the product/service. It also needs to be stated clearly so that it is understood by the reader. - Information
The information section is the most important part of the paper, where the introduction and problem statement are tied in together to discuss the product and all its features. The information will lead to a solution. - Solution
The solution section will help generate leads for the company, as it discusses how the product/service will help the reader. The solutions need to be relevant and backed by evidence to support the claims in the paper. This section must contain both quantitative and qualitative information. - Conclusion
The conclusion is a summary of the entire paper and can include a list of its key takeaways.
Uses of White Papers
White papers help increase the authority of a business and improve their credibility with customers. They can be utilized in a number of different ways, including the following:
- Case study
Very often, many companies market lengthy case studies as white papers. A case study is a story about a business, the challenges it faced, and how the company’s product helped them overcome a problem.
A case study contains detailed and technical information and enables customers to see themselves using the product. Case studies help provide a real-world example of how the company helped its customer achieve success.
- Reference
White papers are lengthy and detailed and may provide a lot of extra information that the customer doesn’t really need. However, they can often serve as a reference guide for other companies in the industry to help them improve their business.
More Resources
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep learning and advancing your career, the additional CFI resources below will be useful:
Data Sources in Financial Modeling
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