Smarter Planet: Media and Entertainment

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To deliver on this potential, smarter media and entertainment companies are transforming business models, operations and customer experiences. (1) Innovate business models and seize digital market …

To deliver on this potential, smarter media and entertainment companies are transforming business models, operations and customer experiences. (1) Innovate business models and seize digital market opportunities, (2) Differentiate the consumer experience, (3) Improve operational efficiencies.

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  • 1. George Mattathil,4/25/2011Let‘s Build a Smarter Planet:Media and Entertainment © 2009 IBM Corporation
  • 2. Let‘s Build a Smarter Planet: Media and EntertainmentThe reality of living in a globally integrated world is upon us. Frozen credit markets and limited access to capital. Economic downturn and future uncertainty. Energy shortfalls and erratic commodity prices. Information explosion and risk/opportunity growth. Slowing superpowers and emerging economies. Increasingly complex supply chains and empowered consumers.The world is connected:economically, socially and technically. © 2009 IBM Corporation
  • 3. Let‘s Build a Smarter Planet: Media and EntertainmentThe pace of change is accelerating.1.6 billion 100 million $100 billionusers video streams spentOn the internet by 2010—60% Hosted by Yahoo daily in 2007. On personal digitalwill have broadband access. devices annually.60 million 74 500 billionblogs terabytes imagesOnline today and growing. Of storage is required for just Created in 2010—between one hour of feature film in digital still cameras and high resolution. cell phones. © 2009 IBM Corporation
  • 4. Let‘s Build a Smarter Planet: Media and EntertainmentThe opportunity for progress is clear.From 0 to 1M 69% Reducesubscribers in process cycle energy costsfirst year time reduction 20–30%Tata Sky launched a new direct-to- IBM clients are embarking on exciting Several IBM clients arehome digital satellite television new approaches to reduce operational improving the performance ofservice on a flexible business model costs and improve the efficiencies of their their mission-critical websites,and scalable IT infrastructure. The workflow processes. Leveraging IBM‘s while reducing operational costs.solution enabled Tata Sky to launch expertise in Business Process IBM virtualization technology hasthe business with unprecedented Management and Service Oriented enabled one real-time sportsspeed, in just 6 months, and reach Architecture, these clients are deploying website to consolidate their 60their ambitious target of one million unified digital media management servers into just six, which hasconnections in the first year of platforms and integrated content and reduced energy consumption byoperations. The robust and scalable business systems processes. For one 23% and cooling load by 25%.infrastructure is supporting the media network client, IBM mapped a At the same time, website visitscompanys growth targets of ‗future vision‘ digital workflow that have increased by 26% and theadding one to two million new demonstrates labor savings of 20% to cost of each visit has beensubscribers annually. 50% and reduction in process cycle times reduced by 38%. of 69%, improving profitability and reducing costs. © 2009 IBM Corporation
  • 5. Let‘s Build a Smarter Planet: Media and EntertainmentFor media and entertainment companies, this means reshapingtheir business in response to uncertainty drivers.INCREASED CONSUMER POWER EXPANDING IMPACT OF TECHNOLOGYConsumers are increasing savvy Technology players are evolving into mediaand harder to reach–shifting away from companies, while media companies aretraditional consumption patterns. placing greater emphasis on technology toFragmentation continues, as loyalty remains deliver advantage. Both must navigate a vasta challenge. Providers transitioning from array of intelligent media devices, multiple―audience‖ to ―consumer‖ focus. forms of digitized content and an increasing volume of user-generated contentBUSINESS MODEL UNCERTAINTY ADVERTISING TRANSFORMATIONThe adoption of the Internet is remaking thelandscapes of content delivery and There is a continued advertising revenueconsumption. Technology players are shift from traditional to new media outletsdisrupting business and shifting revenue (e.g. Internet, online video sites, socialflow (e.g. Yahoo News). Traditional players networks), a greater volatility in light of theare focused on protecting core revenues, current economic situation and a broader setwhile growing digital opportunities. of capabilities required to reach consumers.Source: ―The end of advertising as we know it‖ IBM white paper. ―Navigating the media divide: Innovating and enabling new business models‖ IBM white paper. © 2009 IBM Corporation
  • 6. Let‘s Build a Smarter Planet: Media and EntertainmentTo deliver on this potential, smarter media and entertainmentcompanies are transforming business models, operations andcustomer experiences. INNOVATE DIFFERENTIATE THE BUSINESS MODELS AND CONSUMER EXPERIENCE SEIZE DIGITAL MARKET Launching new innovative OPPORTUNITIES services quickly, leveraging Developing new business relationships across channels models and partner collaboration and using real-time analytics by leveraging the continued MEDIA AND to gain deep customer insights convergence of telecom, media ENTERTAINMENT and personalized offerings. and Internet to strengthen core Revealing advertising values businesses, improve competitive and performance to optimize position and generate new channel strategies and revenues faster. improve return. IMPROVE OPERATIONAL EFFICIENCIES Achieving operational excellence by reducing infrastructure and process complexity to enable improved profitability and reduced costs, fund innovation, enable expansion into new markets and support business transformation initiatives. © 2009 IBM Corporation
  • 7. Let‘s Build a Smarter Planet: Media and Entertainment + + = An opportunity for media and entertainment companies to think and act in new ways. Achieve growth by Gain a competitive Reduce costs and enable innovating business advantage by expansion into new models and seizing differentiating the markets by improving digital market consumer experience. operational efficiencies. opportunities. © 2009 IBM Corporation
  • 8. Let‘s Build a Smarter Planet: Media and EntertainmentSmart media and entertainment:Innovating business models and seizing digitalmarketing opportunities.SMART IS SMART ISHaving the flexibility to introduce new Having a holistic and trusted view ofproducts and services, revamp business media assets across the enterprise,processes and enter or create new and meaningful metadata search andmarkets, as quickly as opportunities asset retrieval capabilities in order toappear, or as soon as you happen repurpose and monetize assets.to envision them.SMART IS SMART ISCreating cost-efficiencies in traditional Consolidating and streamliningsupply chains in order to continue complex financial processes to ensureinvestment in high-growth, cross- successful compliance and regulatorychannel distribution. management practices. © 2009 IBM Corporation
  • 9. Let‘s Build a Smarter Planet: Media and EntertainmentSmart media and entertainment:Innovating business models and seizing digitalmarketing opportunities.Tata Sky: TATA Group, one of India‘s oldest and Consumer Electronics Company: To complement itsmost respected business conglomerates, wanted to new and future product lines, the client engaged IBMbecome a pioneer in the country‘s newly opened, to develop a cloud-based service infrastructure anddirect-to-home satellite TV market. To become a portal through which their new generation of TVs canmajor player in the new market, TATA had to launch seamlessly access favorite Web services as well asan entirely new business—beginning with no broadcast TV.infrastructure or existing processes at all—and do itvery quickly, in order to beat out the competition. The company is working with IBM to develop a first-of- a-kind service known as Internet-TV, an embeddedTATA chose IBM to help launch a new business feature of its newest televisions which—in addition tostarting from scratch, Tata Sky. The service-oriented traditional television broadcasts—enables viewers toarchitecture-based business, resulting from this first- access and navigate Internet content with a standardof-a-kind ―green field‖ project, was launched in only remote. What the client needed from IBM was ansix months. Within a year of its operations, the advanced, intelligent infrastructure on which tocompany had signed up its one-millionth establish and support a dynamic community ofconnection—a world-record growth rate for direct-to- users and service providers.home broadcasting. © 2009 IBM Corporation
  • 10. Let‘s Build a Smarter Planet: Media and EntertainmentSmart media and entertainment:Differentiating the consumer experience.SMART IS SMART ISMoving away from traditional, one-to- Building a complete picture ofmany, broadcast-style delivery consumer preferences andprocesses and channels to Web- interactions, and identifying rapidcentric business models. changes in demand.SMART IS SMART ISUsing context information and Applying real-time knowledge ofsocial networking to optimize the consumer preferences to provideconsumer experience. better personalization of content and a more compelling experience. © 2009 IBM Corporation
  • 11. Let‘s Build a Smarter Planet: Media and EntertainmentSmart media and entertainment:Differentiating the consumer experience.IMPIRE AG: An IBM solution helps IMPIRE rapidly generate The Palace Museum: IBM and the Palace Museumnew statistical information and develop cutting-edge services. in Beijing, China, have launched The Forbidden City:With IBM Software, IMPIRE manages, integrates and Beyond Space and Time, the first complete virtualanalyzes sporting-event data and leverages that content in its world created for a major historical and culturalproducts, such as its unique Web-based sports ticker, which attraction. The online environment is a fullycommunicates real-time event data and statistics to immersive, interactive world that correspondsconsumers more quickly than even a live broadcast. architecturally and historically to the vast grounds of the current Palace Museum, allowing visitors toTo achieve its objectives, IMPIRE needed to replace its experience three-dimensional representations ofcomplex and expensive-to-manage database infrastructure cultural artifacts and places.with a highly available, high-performance solution that couldrapidly load data and provide data mining. A flexible datamodel and development environment allows IMPIRE to The Forbidden City: Beyond Space and Time is ancapture live sporting events statistics, distribute them in real open, extendable platform that represents the nexttime, store large amounts of new and historical data from evolution of Web 2.0 applications, where richvarious sources, analyze and publish that data in near real content, educational storytelling, community andtime, and quickly develop new applications. social networking features converge into a unique, online, multi-user, 3D interactive experience. © 2009 IBM Corporation
  • 12. Let‘s Build a Smarter Planet: Media and EntertainmentSmart media and entertainment:Improving operational efficiencies.SMART IS SMART ISIncreasing speed to market by being able to Having a technology infrastructure that letsquickly configure production and distribution you to pick the best solutions from the mostprocesses to meet your ever-changing innovative industry solution providers andbusiness requirements. easily ―snap‖ them into your workflow.SMART IS SMART ISCombining the power, flexibility and cost Use of standard IT-based components toadvantages of open Information Technology dramatically reduced cost compared towith media industry-specific workflows, to proprietary technologies. Significant savingsreduce the cost of production and streamline accrue from workflow efficiency, lower fixedbusiness and content processes. cost for storage and storage media, reduced floor space, heating and cooling, and potential labor savings. © 2009 IBM Corporation
  • 13. Let‘s Build a Smarter Planet: Media and EntertainmentSmart media and entertainment:Improving operational efficiencies.Vlaamse Radio and Televisie: Belgian radio and Australian Open: Since 1993, IBM has been thetelevision broadcaster faces the same challenge that Official Technology Partner of the Australian Open, playing amost entertainment and news companies face—deliver major role every year by providing the event infrastructurecontent quickly or lose viewers. Previously, the and manpower to support all facets of the tournament—fromorganization had struggled to provide new content to the event management to the scoring system that feeds all of thepublic (especially on its Web site) due to a tape-based organizations information channels, including the Web site,system that required manual management and that on-court scoreboards, results kiosks, graphics interface forlimited content access to one user at a time. television broadcasters and the Match Update Centre.Working with IBM, VRT deployed a unified digital media To help enable AustralianOpen.com to be 100% available,management platform built on a service-oriented scalable and secure, IBM uses a flexible,architecture (SOA) for creating, editing, airing and storing self-managing infrastructure based on service-orientedvideo content materials. The new system affords VRT architecture (SOA) and multiple geographically dispersedthe ability to capture, reuse and share its digital files, and servers, virtualized as one, to scale up to support a massiveconvert them into multiple formats—producing 50% more increase in traffic more than 100 times its typical volumeprogramming assets—opening up more opportunities to during the event and scale down when the tournament isreach new customers. over—all without the need to make a large and permanent infrastructure investment. © 2009 IBM Corporation
  • 14. Let‘s Build a Smarter Planet: Media and EntertainmentConsumers are demanding experiences across the spectrumof media, at any time and in many combinations. © 2009 IBM Corporation
  • 15. Let‘s Build a Smarter Planet: Media and EntertainmentA smart media and entertainment company will use rawdata about consumer, usage and interests togenerate actionable insights. COLLECT MANAGE INTEGRATE ANALYZE Data Insight © 2009 IBM Corporation
  • 16. Let‘s Build a Smarter Planet: Media and EntertainmentThese insights will drive the creation of new value for the consumer. COLLECT MANAGE New products and services Targeted communications Personalized offerings INTEGRATE ANALYZE Data Insight © 2009 IBM Corporation
  • 17. Let‘s Build a Smarter Planet: Media and EntertainmentThey will also lead to core business benefits and new opportunitiesfor the media and entertainment company. COLLECT MANAGE New products Greater speed to market and services Operational efficiencies Targeted communications New business models Personalized Collaboration opportunities offerings INTEGRATE ANALYZE Data Insight © 2009 IBM Corporation
  • 18. Let‘s Build a Smarter Planet: Media and EntertainmentIBM‘s solution strategy is aligned with the needsof media and entertainment stakeholders. MEDIA AND ENTERTAINMENT IBM IS INVESTING IN… PRIORITIES ARE… Innovating business models  Best practices helping develop and implement new business models and seizing digital market  Global outsourcing capabilities to fund innovative business approaches opportunities.  SOA-based infrastructure for the media industry that is designed to manage the increasing complexity of running a content-focused business from the point of creation to the distribution of digital content  R&D and Media Solution Labs around the world to bring pioneering technologies to clients  Global financing to support innovation and change Differentiating the consumer  Web and consumer analytics to reveal customer insights for better targeted experience. services  Advertising transformation and cross-platform ad analytics to help clients develop strategies and roadmaps for new digital realities, pricing strategies and delivery mechanisms  Web-centric business innovation to deliver content and unique experiences to consumers (both B2C and B2B) across channels  End-to-end customer and master data management Improving operational  Modernization and optimization of legacy systems efficiencies.  Integrated digital content and meta-data management  Digital workflow and back-office process efficiencies and transformations to create an agile and flexible business infrastructure  Open, standards-based, integrated environments and processes  Application management and outsourcing © 2009 IBM Corporation
  • 19. Let‘s Build a Smarter Planet: Media and Entertainment We‘ve only just begun to uncover what is possible on a smarter planet. The world will continue to become smaller, flatter and smarter. We are moving into the age of the globally integrated and intelligent economy, society and planet. From helping magazine publishers change their business model so subscribers have the flexibility to change what gets delivered, to enabling comic creators and producers to interact in real-time and discover new talent, to making it economical for broadcast networks to digitally archive major sporting events in HD. Being smart about media allows the world‘s media companies to lower the barriers to entry and the costs of creating, managing and distributing digital content. Let‘s work together to drive real progress in our world. © 2009 IBM Corporation
  • 20. Let‘s Build a Smarter Planet: Media and EntertainmentTrademarks and notes IBM Corporation 2011  IBM, the IBM logo and ibm.com are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at ―Copyright and trademark information‖ at www.ibm.com/legal/copytrade.shtml  Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under ―Special attributions‖ at: http://www.ibm.com/legal/copytrade.shtml#section-special  Other company, product and service names may be trademarks or service marks of others.  References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. © 2009 IBM Corporation