This document discusses digital disruption in media and opportunities for media companies. It notes that business models in media are under pressure from declining circulation and new technologies. While existing business still accounts for most income, companies must invest in new digital products and experiment with new business models. Data collection and analysis provides opportunities for more targeted advertising and personalized content. Organizational challenges include supporting both existing operational excellence and new experimental digital business. The IT organization will need to evolve from a support function to a core part of the business as products become digital software. Overall digitalization represents both disruption and opportunity for media companies.
5. Business modellen wijzigden gestaag.
Nieuwe technologie ligt aan de basis
van erg disruptieve wijzigingen.
Muziek
Foto
Media
Taxi
Banken
Verzekeringen
elke industrie zal ge誰mpacteerd worden.
8. E-ink in the late 90 ties
Predictions :
- Will replace paper
- Will replace newspapers
and magazines
Reality :
- No break through in newspapers
- No full colour displays
- To expensive
- No foldable large screens (yet)
Seriously overestimated business potential
9. Characteristics of Disruptive technology
Lower cost than existing technology
Lower quality than existing technology (at first)
Lower margins per unit than existing technology
If all conditions are met at the same time
Greater market opportunity
Recommended reading :
The Innovator's Dilemma by C.M. Christensen
Leading Digital by G. Westerman, D. Bonnet, A. McAfee
10. Pitfalls.
Timing is of the essence
Fear for canibalisation
Risk avoidance behaviour
Leaving comfort zone
No understanding of new technology by senior mngt
Too focussed on existing markets and products
Short term thinking
Technology can be around for some time but not
all conditions are met
16. Business Strategy
The innovator's dilemma: harvest existing while looking for new model
Existing : still accountable for 90% of income and profit
Foster existing business
Creating economy of scale
Strive for operational excellence in existing business
New :
Invest in new Digital products
Experiment with new business models
Customer centric approach based on Big Data
17. Business Strategy
Strive for operational excellence in existing business
Optimize processes (e.g. churn prediction models)
Standardize processes throughout entire organization
Reduce manpower wherever possible
Increase quality of service towards customers without losing profitability
18. Business Strategy
Invest in new Digital products
News apps and websites per brand (VK redesign, AD redesign)
New products (Paper.nl, Wekker app, )
Content recommendation based products
19. Experiment with new business models
Different pricing points
New advertising models (targeted advertising)
Paid for content
Hard paywalls
Metered paywalls
Pay per article
Business Strategy
21. Opportunities : Big Data collection & exploring
Readers Marketing:
Readers recruitment
Upsell and cross-Sales
Conservation
Reduce churn
Advertising use:
More targetted campaigns
Personalize ads
Multi channel campaings
Example : Krux
Business Strategy
22. Personalize and adapt content during day and depending on type of device
Example : Topics.be
Business Strategy
23. Gebruik van big data
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
2013|30
2013|33
2013|36
2013|39
2013|42
2013|45
2013|48
2013|51
2014|01
2014|04
2014|07
2014|10
2014|13
2014|16
2014|19
2014|22
2014|25
2014|28
2014|31
2014|34
2014|37
2014|40
2014|43
2014|46
2014|49
2014|52
Pageviews per week
27. Newswebsites
Premium Content Websites
Tijd, NYT, WSJ, FT,
Paywall (metered)
Subscription model
Advertising model
Popular Content Websites
HLN, Nu, NOS, Deredactie,
Pure Advertising model
No paywall yet
No subscription model yet
Business model
established &
mature
28. Tablet Subscribers
HLN.be
DeMorgen.be
Volkskrant.nl
AlgemeenDagblad.nl
Trouw.nl
Parool.nl
Older generation still fancies print
No good offer yet for reading paper on tablet
iPad only: 18.000 per day
iPad total: 250.000 per day
Print : 1.000.000 per day
30. Challenge
Existing business
Operational excellence
Preserve margin and income
Manage decline
Processes are being tuned
a lot of IT work to be done
New business
Lot of experimenting
Low margins and low turnover (certainly at the start)
Hyper volatile market
Product IS software
a lot of IT work to be done
AA lot more
ICT resources
required
32. Creative company of the future
1/3 creatives
1/3 commercial and marketing
1/x ICT staff (where x is less than 10)
Shocking conclusion for a traditional print company
ICT evolves from a supporting service
to the core product of the company
Most boardmembers have no understanding of ICT