Saul J. Berman, Steven Abraham, Bill Battino, Louisa Shipnuck and Andreas Neus
The authors perform market trend analysis and to examine the clash between new and traditional media and explore future industry competitive scenarios.
Abstract
Purpose
The authors perform market trend analysis and to examine the clash between new and traditional media and explore future industry competitive scenarios.
Design/methodology/approach
IBM conducted a comprehensive study that included interviews with leaders of media companies and an in‐depth analysis of the factors that are shaping the industry outlook. IBM conducted in‐person interviews with more than 75 senior media executives, industry analysts, economists and technology visionaries and also worked with the Economist Intelligence Unit to survey another 125 industry executives.
Findings
IBM sees four primary business models emerging – traditional media, walled communities, content hyper‐syndication and new platform aggregation. The research also found evidence of another developing conflict that it calls the media divide. It could pit partner against partner in a struggle for growth.
Practical implications
IBM proposes seven industry‐specific recommendations for incumbent media companies as they face the immediate threat from new entrants and eventual collisions with traditional partners: Deliver experiences, not just content. Leverage virtual worlds. Innovate business models. Invest in interactive, measurable advertising services and platforms. Redefine partnerships, while mitigating fallout. Shift investment from traditional business to new models. Create a flexible business design.
Originality/value
The article offers a combination of market evolution analysis, future market scenarios and recommendations for gaining first mover advantage.
Details
Keywords
Saul J. Berman, Bill Battino and Karen Feldman
As a growing share of consumer value shifts to new industry entrants, this paper seeks to suggest how long‐time leaders in many media and entertainment (M&E) market segments can…
Abstract
Purpose
As a growing share of consumer value shifts to new industry entrants, this paper seeks to suggest how long‐time leaders in many media and entertainment (M&E) market segments can replace declining traditional revenue with equivalent value from digital media.
Design/methodology/approach
The paper suggests how established media and entertainment companies – newspapers, broadcasters, music labels and movie studios – can proactively address both their potential revenue challenge and find new business models.
Findings
The paper finds that media companies need to “rethink” their business models and seek innovative ways to enhance the consumer experience and connect with consumers.
Research limitations/implications
This is a 2010 IBM Institute for Business Value analysis.
Practical implications
M&E companies will require the capabilities to build analytics and insights, develop consumer‐centric models and enable multiplatform delivery.
Originality/value
Three strategies will likely help M&E leaders overcome the revenue issues they face – focusing on the consumer experience, embracing new distribution platforms and expanding revenue models.
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Matt Porta, Brian House, Lisa Buckley and Amy Blitz
Business “rules” (for the way value is created) are rapidly evolving, necessitating transformational change. The confluence of several factors – the Internet, innovative new…
Abstract
Purpose
Business “rules” (for the way value is created) are rapidly evolving, necessitating transformational change. The confluence of several factors – the Internet, innovative new technologies, changing consumer preferences, intensified global competition, and the proliferation of fast‐evolving social technologies that connect people and ideas – is driving the need to change. This paper aims to investigate these issues/
Design/methodology/approach
The paper looks at eight new rules which have been identified through research on 100 technology start‐ups and 40 early adopter large enterprises that were then refined based on insights from technology analysts, IBM business leaders and the venture capital community.
Findings
The paper finds that these rules, referred to as Value 2.0, illustrate unique ways in which emerging technologies are enabling new value creation in an enterprise.
Practical implications
Corporations can use the eight rules to capitalize on new markets and business models, get closer to markets and customers and create new capabilities
Originality/value
The Value 2.0 proficiencies described in the article seem likely to be critical in coming years for corporations in many industries.
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Keywords
According to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions…
Abstract
Purpose
According to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration. This paper aims to address this issue.
Design/methodology/approach
The paper explains that businesses aiming to generate new customer value propositions or transform their operating models need to develop a new portfolio of capabilities for flexibility and responsiveness to fast‐changing customer requirements.
Findings
The paper finds that engaging with customers at every point where value is created is what differentiates a customer‐centered business from one that simply targets customers well. Customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.
Practical implications
Companies focused on fully reshaping the operating model optimize all elements of the value chain around points of customer engagement.
Originality/value
The article explains how companies with a cohesive plan for integrating the digital and physical components of operations can successfully transform their business models.