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    Mon 3   kuntner - vail conference-082409__fv_animated Mon 3 kuntner - vail conference-082409__fv_animated Presentation Transcript

    •  MII Introduction The Evolving Newsmedia Market The Co-Creation Business Model The Action Plan
    •  A strategic advisory firm that works with companies to improve their revenue-earning/profit potential – with a special focus on innovation Help organizations evolve their current business thinking into an “economic advantage”  Apply our proprietary Innovation Lab process to generate the highest potential options and minimize risk associated with large-stakes decisions  Assess propositions, reduce testing costs, accelerate “idea to implementation” time  Incorporate linked information: customer, competitive market, operations, economics  Simulate scenarios through our Predictive Scorecard™• Principals have deep expertise within industries, across functional areas, and in solving customer-centric business issues
    • The Evolving Newsmedia MarketIdentifying the Opportunities
    • • Increasing number of special interest • Advanced news sources or • Advertising technology • Wages and innovative delivery dollars shifting enables rapid, literacy on the (e.g. CNN, USA to other real-time, mobile rise Today) channels access to news Time• Increasing • Introduction • Digitization • Growing number of urbanization, of TV of media social networking mobility, and • Advent of channels and special interest globalization of world wide websites society web
    • Readers’Engagement Tomorrow Tomorrow Customer • Innovate with a “Total Selection & Customer” focus (i.e., low Objectives: and high returns, young and • Engage readers Value old, online, offline, mobile) • Leverage the brand Proposition • Provide a platform for merchants and Today advertisers to build Value Capture • Exploit synergy between competitive online and offline channels advantage • Consider sharing non- • Become a more specific content with other relevant player in Web 2.0 companies Yesterday Organizational • Develop way to quickly Systems recognize new opportunities Time
    • Challenges Threats Opportunities• Current economic • Industry mergers put some • Too much information downturn causes even news organizations at an creates room for a value- loyal readers to economic disadvantage added news consolidator unsubscribe • Growing number of news • Increasing need for• Erosion of the reader and information sources platforms where base in favor of online communities can “talk” electronic news • Many news sources allow to each other (e.g. share• Migration of user input and interaction experiences) advertisers to online (e.g. Wikipedia) • A market exists for high channels and new • Social networking sites are value online content in formats (e.g. Google, used to discuss and specific topics YouTube, Facebook) disseminate current news and issuesPricewaterhouseCoopers. Moving into Multiple Business Models: Outlook for Newspaper Publishing in the Digital Age.
    • The Co-Creation Business ModelTranslating Innovative Ideas into Economic Value
    •  According to C.K. Prahalad and Venkatram Ramaswamy, consumers are challenging the corporate logic behind value creation Due in large part to the Internet, consumers are able to influence value creation across all parts of the value chain They suggest that companies must embrace this by shifting the focus and basis of value creation from products to experiences through the application of co-creation “If your company does not capture this intelligence to create more fulfilling experiences for consumers, your competitors will.”Prahalad, C.K. & Venkatram Ramaswamy (2004??). The Co-Creation Connection. Strategy + Business, Issue 27.Prahalad, C.K. & Venkatram Ramaswamy (2004). Co-Creating Unique Value with Customers. Strategy & Leadership, Volume 32 No. 3
    • (1) Consumer is outside the domain of the value chain (2) Enterprise controls where, when, how value is added in the value chain (3) Value is created in a series of activities controlled by the enterprise before the point of purchase (4) There is a single point of exchange where value is Traditional extracted from the customer for the enterprise(1) Consumer is an integral part of the system(2) Consumer influences where, when, how value is generated(3) Consumer need not respect industry boundaries in search Co-Creation for value(4) Consumer can compete with companies for value extraction(5) There are multiple points of exchange where the consumer and company can co-create value Prahalad, C.K. & Venkatram Ramaswamy (2004??). The Co-Creation Connection. Strategy + Business, Issue 27.
    • DA RT Risk Dialogue Access Assessment Transparency Interactivity, Ability to use Inform Make vital engagement, and information and consumers of business-process a propensity to tools to inform the probability information act – on both decisions or for of harm to them available sides your benefit (consumers don’t need (e.g. pricing, costs, to own it to experience profit margins, its value) availability of product)Prahalad, C.K. & Venkatram Ramaswamy (2004??). The Co-Creation Connection. Strategy + Business, Issue 27.Prahalad, C.K. & Venkatram Ramaswamy (2004). Co-Creating Unique Value with Customers. Strategy & Leadership, Volume 32 No. 3
    • Risk Dialogue Access Assessment Transparency• New Line Cinema develops • Pay-as-you-drive Mobility • US Food & Drug • Federal Express Lord of the Rings: The CarSharing in Switzerland Admin reintroduces continuous tracking Fellowship of the Ring • IBM promotes use of Linux Lotronex with stricter along the delivery chain promotion through feedback through free software controls after patients and package rerouting from fan websites tools protested • Instinet Group• Cisco Connections Online customers real-time customers can engage in monitor how much the dialogue and solve one fund manager’s trading another’s technical problems is costing them • Sumerset Houseboats let customers co-design the layout of their boat, negotiate specs and prices, connect with the factory during construction, and monitor progress in real time. Customers can also review drawings, access architectural and aesthetic expertise, consult representatives, read bios of people crafting the boat, have dialogues with other customers and a wider community of avid sailors Prahalad, C.K. & Venkatram Ramaswamy (2004??). The Co-Creation Connection. Strategy + Business, Issue 27. Prahalad, C.K. & Venkatram Ramaswamy (2004). Co-Creating Unique Value with Customers. Strategy & Leadership, Volume 32 No. 3
    •  Enable the newsmedia  Identify what products and services customers’ want/need  Determine readers’ sensitivity to price levels  Leverage synergies between online and offline channels  Inform decisions about where to make investments  Engage readers and strengthen the brand Assist businesses and advertisers  Determine what advertisements are the most effective  Identify optimal offline-online advertising packages to attract advertisers  Provide a means of connecting with the customer either more directly or through another channel Offer unique value to readers  Provide information, summaries and ratings, self-help tools, etc.  Provide a community platform to share experiences, obtain referrals, get assistance with problems, and optimize buying decisions based on individual’s objective function  Give readers a “stake” in what is created/sense of ownership
    • Co-Creation Models Model 1: Model 3: Model 2: Newsmedia Value Chain & Among ReadersOrganization to Reader Advertiser to Readers• Direct exchange between • Direct exchange among • Direct exchange between newsmedia organization and individual readers and reader business advertisers and reader (consumer and groups (e.g. “people like you” readers (consumer and business) would like …) business)• Identify services the reader • Provide platform for readers • Gauge effectiveness of wants/needs and results in to interact and solicit advertising, develop new incremental value to the information or help from each products, monitor reader newsmedia organization (e.g. other boards for issues, etc. revenue, brand building)
    • How it works Value Capture Examples• News organization creates a • By identifying the most valued • Free vs. paid subscription landing page on website to products and services as well for premium content engage readers in as their relative preference for • Paid access to “consumer experiments features and prices, the guide-like” product rating• Experiments are designed to newsmedia organization can reports gauge readers’ interest in new predict financial outcomes based on implementing any • Instant mobile alerts for products/services news (e.g. stock market offer configuration to the• Behavioral results are broader reader base changes) statistically modeled and integrated with a financial • Can assess the investment simulator required to execute prior to actual cash outlay• Scenarios are simulated to determine the financial impact
    • How it works Value Capture Examples• News organization creates • Subscription based services • Blog for people to report interactive web pages for information and their reactions to current designed to: recommendations such as: news oCreate communities of oReferrals for babysitters, • Online op-ed section for interest (e.g. dog-lovers, plumbers, electrician, lawn controversial news or gardeners, tech geeks) care with automatic links to political debates oEngender reader Better Business Bureau and background checks • Forums to compare engagement shopping experiences and oEncourage reader sharing oProduct and service ratings rate products/companies oProvide information or • Revenue from banner • Self-help tools to compare feedback advertising mortgage offers• Web pages are monitored and • Revenue from businesses • Q&A to ask for technical managed by news wanting to mine the forums assistance with a problem organization for product issues or needs (e.g. how to prepare lawn mower for winter storage)
    • How it works Value Capture Examples• News organization works with • For businesses testing • Product/service offer business/advertiser to create a products/services/value chain, configurations landing page to engage experiments can reveal the • Rate reliability, importance, readers in experiments (e.g. most valued product or service brand awareness of value features, pricing, billing offer configurations chain components fulfillment, customer service) • Advertisers can evaluate the• Experiments are designed to • New vs. old advertising most effective messages, messages gauge readers’ interest in new promotional offers, etc. products/services , measure • New vs. old promotional receptivity to advertising, or • Both types of experiments can offers assess aspects of value chain be linked with the businesses• Behavioral results are financials to prioritize options statistically modeled and and assess expected integrated with a financials investments• Scenarios are simulated to determine the financial impact
    • The Action PlanBuilding a Co-Creation Newsmedia Platform
    • • Generate new or revitalized ideas to innovateDesign around • Verify the commercial viability of newValidate innovations • Implement innovations resulting from co- Apply creation techniques • Monitor and track new innovations, includingManage a feedback loop for improvements
    • Management  Management engagement and alignment with priorities Support  Business case and strategic fit analysisPlatform Plan  Platform definition and requirements  Platform road mapsOrganizational  Critical resources (people, dollars, technology) Readiness  Partner engagement
    •  Discuss the emerging revenue growth opportunities that could be enabled by the co-creation business model Identify high priority target segments Prioritize the best options for early adoption Clarify and assess potential hurdles to implementation List expected resources requirements, technology partnerships, etc. to support successful implementation Determine measures of success (early and longer-term)
    • Design Validate Apply Manage Qualitative Competitive Emerging Ideation Research Research Trends• The MII Innovation Lab is a unique strategic Priorities for Lab Testing with Customers analysis process and tool for management decision-making, (1) Model Specification & (2) Research Design enabling management Hypotheses eMail batch “n” eMail batch four Virtual Test http://www.surveyfive.com http://www.surveyfour.com eMail batch three http://www.surveythee.com eMail batch two http://www.surveytwo.com to evaluate and eMail batch one http://www.surveyone.com compare various Data Transfer Channels 7 3 0 strategic options side- 1 3 8 1 7 9 8 5 1 2 4 2 by-side along with competitive (3) Behavior Model Innovation Lab Survey Data alternatives, using Cost to Serve data (4) Economic Model demand drivers to more accurately reflect the (6) Decision Optimization (5) Predictive Simulator various likely scenarios Predictive Scorecard™
    • Web-based Dashboard Dashboard ApplicationsScenario + Optimization Control Business Case Creation Interactive Reports Scenario Execution Engine Scenario Optimization Engine Predictive Scorecard™ Dynamic Economic Market Model Engine Dynamic Behavioral Market Model Simulated Buying Live Market Feeds Behaviors Web-based Competitive Buying Simulator Customized Preferred Ordering Usagefeatures, prices, providers Activations ~1K Simulated Support Behavior Competing Sampling Packages and and Participant Web Samples Responses • Customers Data • Prospects Repositories