Making Information Pay


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The Seven Pitfalls of Not Being Ready for Digital Transformation

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Making Information Pay

  1. 1. The Seven Pitfalls of Not Being Ready for Digital Transformation Making Information Pay May 6, 2010 David R. Guenette Senior Analyst The Gilbane Group, a Division of Outsell, Inc.
  2. 2. About the Gilbane Group <ul><li>Acquired by Outsell, Inc. in February 2010 </li></ul><ul><li>Long-time boutique analyst and consulting firm focused on content management technology </li></ul><ul><li>Practice areas include publishing, social media, search, and XML </li></ul><ul><li>Research has tended to be qualitative, such as case studies and best practices </li></ul><ul><li>Consulting has included long-term engagements with major publishers and associations </li></ul>
  3. 3. About our Research <ul><li>Digital Magazine and Newspaper Editions - Growth, Trends, and Best Practices (2009) </li></ul><ul><li>Collaboration and Social Media (2009) </li></ul><ul><li>Beyond the eBook- Trends in Digital Book Publishing (2009) </li></ul><ul><li>Social Publishing with Drupal: Building Success with Content and Community (2010) </li></ul><ul><li>A Blueprint for Book Publishing Transformation: Seven Essential Processes to Re-Invent Publishing (2010) </li></ul><ul><ul><li>One of three eBook studies planned for this year </li></ul></ul>
  4. 4. “Blueprint” Study <ul><li>BISG is a research sponsor, partnering with The Gilbane Group </li></ul><ul><li>Six vendor sponsors support the research </li></ul><ul><li>Publication date: June 2010 </li></ul><ul><li>Freely distributed </li></ul>
  5. 5. What are the seven essential processes? <ul><ul><li>Planning </li></ul></ul><ul><ul><li>Editorial and production </li></ul></ul><ul><ul><li>Rights and Royalties </li></ul></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Promotion and marketing </li></ul></ul><ul><ul><li>Sales and licensing </li></ul></ul><ul><ul><li>Distribution and fulfillment </li></ul></ul>
  6. 6. These processes are recursive, complex… <ul><li>… and often not integrated </li></ul>
  7. 7. Many publishers are not “digital ready” <ul><ul><li>Too caught up in legacy product models </li></ul></ul><ul><ul><li>Not agile enough to respond to new opportunities </li></ul></ul><ul><ul><li>Too busy bailing to navigate well </li></ul></ul>
  8. 8. What happens if you are not “digital ready”? <ul><ul><li>Based on our current research </li></ul></ul><ul><ul><li>Interviews and case studies </li></ul></ul><ul><ul><li>And client engagements </li></ul></ul>
  9. 9. Planning… <ul><li>Print-centric planning model </li></ul><ul><ul><li>Doesn’t accurately or flexibly allow for digital products, their cost, or their revenue </li></ul></ul><ul><li>Mindset of “digital-after-the-fact” </li></ul><ul><ul><li>Blinds the publisher to significant digital opportunities, including digital-only products </li></ul></ul>
  10. 10. Digital transformation in planning… <ul><li>Business intelligence becomes a key editorial planning tool </li></ul><ul><li>Developing new content products from more efficient and granular content management expands product range and number </li></ul><ul><li>Early meta-data capture supports the development of interoperating and transactional processes for publishers </li></ul><ul><li>Will require systems and business analyst-type roles </li></ul>
  11. 11. Editorial and production … <ul><li>Content not optimized for digital delivery: </li></ul><ul><ul><li>Not “chunked” for easier product derivatives </li></ul></ul><ul><ul><li>Trapped in proprietary and opaque file formats </li></ul></ul><ul><ul><li>Content is overly expensive to produce in newer digital formats </li></ul></ul>
  12. 12. Digital transformation in editorial and production … <ul><li>XML-First (theory) and XML-Early (the realistic probability) requires more taxonomy and DTD-type/schema content structure analysis efforts within editorial roles </li></ul><ul><li>Copy-editing functions will grow more important as meta-data and structural tagging implementers and QA front-liners </li></ul>
  13. 13. Rights and royalties … <ul><li>Content not optimized for digital: </li></ul><ul><ul><li>Overly complex and time-consuming work to track, manage R&R, especially with backlist </li></ul></ul><ul><ul><li>Hard to calculate and support newer digital business models </li></ul></ul><ul><ul><li>Barriers to new business models, even as there is an urgent need to launch and test new business models </li></ul></ul>
  14. 14. Digital transformation in rights and royalties … <ul><li>Contracts must change to conform to a wide range of alternative editions </li></ul><ul><li>Contracts must include chunk-based remuneration conventions </li></ul><ul><li>Integrate rights and royalty metadata with content </li></ul><ul><li>Require system integration specialists to work with R&R processes </li></ul><ul><li>“ Product Manager” roles needed </li></ul>
  15. 15. Manufacturing process… <ul><li>Non-optimized manufacturing processes: </li></ul><ul><ul><li>Overly costly and complex steps to produce different formats, outputs, and custom products </li></ul></ul><ul><ul><li>Challenges in fully adopting digital printing, on-demand printing, and other alternatives </li></ul></ul><ul><ul><li>An inability to properly manage and curate digital assets </li></ul></ul>
  16. 16. Digital transformation in manufacturing… <ul><li>Significantly supports the use of digital printing </li></ul><ul><li>Digital asset distribution platforms and/or services will increasingly drive automated distribution to print vendors and out into the supply chain </li></ul><ul><li>Improved automation will depend on the success of ERP and EDI systems integration within title information management platforms </li></ul><ul><li>It remains unclear whether existing TIM platform vendors will take the lead </li></ul>
  17. 17. Promotion and marketing process… <ul><li>Non-optimized promotion and marketing processes: </li></ul><ul><li>Overly complex and time-consuming steps in using and sharing title information and for distributing all types of promotion and marketing material to all relevant supply chain partners </li></ul><ul><li>Inability to readily support critical social media outlets for product promotion or to easily expand discoverability </li></ul><ul><li>Inability to properly control and manage marketing assets </li></ul>
  18. 18. Digital transformation in promotion and marketing … <ul><li>Digital asset management platforms will become more common </li></ul><ul><li>Pertinent metadata and relevant title content information is captured earlier in the publishing processes </li></ul><ul><li>Customer relationship management (CRM), supply chain management (SCM), and syndication-based distribution of marketing information will reduce marketing staff but require greater technology skill sets </li></ul><ul><li>Social media and communities will require book publishers to retrain marketers as social community managers, who will need to interact with planning process-level product managers </li></ul>
  19. 19. Sales and licensing process… <ul><li>Non-optimized sales and licensing process: </li></ul><ul><li>Inability to generate custom publishing products </li></ul><ul><li>Inability to automate sales and management of subsidiary rights </li></ul><ul><li>Higher costs and complexity in trying to expand sales channels, including direct sales through ecommerce </li></ul>
  20. 20. Digital transformation in s ales and licensing… <ul><li>Supports title “discoverabilty” and automation of CRM systems with ecommerce platforms and direct sales </li></ul><ul><li>Requires tight integration with promotions and marketing process </li></ul><ul><li>Significant changes in sales models, however, must wait upon the integration of the various publishing processes, largely through the application of XML-early repositories and adequate business metadata </li></ul><ul><li>Pressures on brick and mortar book stores—and print itself—will greatly increase </li></ul><ul><li>. </li></ul>
  21. 21. Distribution and fulfillment processes… <ul><li>Non-optimized sales and licensing process: </li></ul><ul><li>Cumbersome and expensive one-off mechanisms to pull and push content across an expanding number of supply chains </li></ul><ul><li>Inability to automate transactional and distribution processes for digital products </li></ul>
  22. 22. Digital transformation in distribution and fulfillment … <ul><li>Book publishers will have to build up expertise for ERP and EDI process integration, as the content and titles themselves carry the intelligent meta-data to take automation to its next level </li></ul><ul><li>Warehouse and fulfillment costs will be better constrained, and digital printing will prove to be a key element of these savings, through the use of DADs, just-in-inventory, returns reductions, and lower transportation and shipping costs, to name a few cost reduction areas </li></ul>
  23. 23. Digital Transformation and the Points of No Return <ul><li>Book Publishers: Start with what you know </li></ul><ul><li>Digital Publishing Technology and Service Vendors: Start with what your customer—the book publisher—knows </li></ul><ul><li>Plus ca change…Non!… The more digital publishing processes interoperate, the less publishing stays the same </li></ul><ul><li>See what the innovators are doing </li></ul><ul><li>Pilot, test, measure </li></ul><ul><li>It’s not all or nothing </li></ul>
  24. 24. And Take the Blueprint Survey! <ul><li>10-minute survey seeks to gain detailed information about what is really happening among the full spectrum of book publishers related to ebook and digital publishing efforts, and the &quot;pain points&quot; and barriers encountered   </li></ul><ul><li>http://Publishing. questionpro .com </li></ul><ul><li>  </li></ul>
  25. 25. David R. Guenette The Gilbane Group, a Division of Outsell, Inc. Cambridge, MA [email_address] www. gilbane .com/xml billtrippe 617-497-9443, ext 219