Overview of New Technologies in Publishing Michael Cairns Executive Management for the Chinese Publishing Industry

Technology in publishing, how it is implemented and how it is used is increasingly the differentiator - not the content! - between the publishers that will succeed and those that will fail.

Introduction and Agenda Introduction & background Historical perspective Technology in the back office Supporting the product development value chain Customer-centric technology Democratization of the publishing process Forecasting the future of publishing technology

Introduction & background

Historical perspective

Technology in the back office

Supporting the product development value chain

Customer-centric technology

Democratization of the publishing process

Forecasting the future of publishing technology

Historical Perspective Over the past 500 years we have gone from: One Book => Bible One Author => Monk One Process => Years But only in the past 10 years have we achieved: Any Book => Including ‘my book’ Any Author => Including me (and my friends) Any process => Within minutes Functionality has expanded at the expense of cost: Far more for far less Publishing operations are increasingly centered on technical solutions: enterprise resource planning, financial modeling, supply chain logistics Publishing is less about print on paper and increasingly about technology

Over the past 500 years we have gone from:

One Book => Bible

One Author => Monk

One Process => Years

But only in the past 10 years have we achieved:

Any Book => Including ‘my book’

Any Author => Including me (and my friends)

Any process => Within minutes

Functionality has expanded at the expense of cost: Far more for far less

Publishing operations are increasingly centered on technical solutions: enterprise resource planning, financial modeling, supply chain logistics

Publishing is less about print on paper and increasingly about technology

Technology in the back office Until mid 1980s may publishing companies relied on batch processing and card key processing No technology integration of back office functions: Accounting a manual process until wide adoption of personal computers in mid 1980s Book publishing followed newspaper publishing in automation: i.e.: desk-top publishing In mid-1990’s larger publishing companies began implementing ERP (SAP, Oracle, BAAN) systems in accounting In late 1990’s more publishing companies adopted data warehouse technology (Oracle, Sybase) In early 2000’s publishing companies began adopting supply chain and process improvement technology

Until mid 1980s may publishing companies relied on batch processing and card key processing

No technology integration of back office functions: Accounting a manual process until wide adoption of personal computers in mid 1980s

Book publishing followed newspaper publishing in automation: i.e.: desk-top publishing

In mid-1990’s larger publishing companies began implementing ERP (SAP, Oracle, BAAN) systems in accounting

In late 1990’s more publishing companies adopted data warehouse technology (Oracle, Sybase)

In early 2000’s publishing companies began adopting supply chain and process improvement technology

Technology in Back Office Significant benefits of scale for publishers that implemented these solutions early Enabled gains in productivity Raised reliance on in-house technical expertise: IT department became part of executive management Expanded publisher’s control over processes: all page layout, data keying, etc. brought in-house at significant cost savings Created ‘technical capacity’ and ‘capability’ that is now important for expansion Greater appreciation for technology as a business driver

Significant benefits of scale for publishers that implemented these solutions early

Enabled gains in productivity

Raised reliance on in-house technical expertise: IT department became part of executive management

Expanded publisher’s control over processes: all page layout, data keying, etc. brought in-house at significant cost savings

Created ‘technical capacity’ and ‘capability’ that is now important for expansion

Greater appreciation for technology as a business driver

Supporting the Publishing Value Chain Desk-top production in early – mid 1980’s Rapid increase in productivity Speed to market Significant reduction in expense Quark, Pagemaker, dBase SGML: highly ‘expensive’ mark-up language Database publishing Creation of structured databases that were searchable by customers CDROM launch in mid 1980s: Huge expansion in information products Online information products: MAID, Dialog, with structured query formats and regimented ‘professional’ only products Merchandising Prior to Amazon.com virtually no marketing and merchandising was ‘electronic’

Desk-top production in early – mid 1980’s

Rapid increase in productivity

Speed to market

Significant reduction in expense

Quark, Pagemaker, dBase

SGML: highly ‘expensive’ mark-up language

Database publishing

Creation of structured databases that were searchable by customers

CDROM launch in mid 1980s: Huge expansion in information products

Online information products: MAID, Dialog, with structured query formats and regimented ‘professional’ only products

Merchandising

Prior to Amazon.com virtually no marketing and merchandising was ‘electronic’

Supporting the Publishing Value Chain - Trade Entire publishing process is now automated Authors submit files Files are databased Increasingly content is tagged for merchandising Merchandising driving content management Amazon.com and on-line retailers Publisher’s developing own web presence Creation of content warehouses: Harpercollins, Random House, Hachette, etc. Recognition that ‘sampling’ via web browser should be similar to an in-store experience Community Development of author specific sites Interlinking is a powerful tool for author/publisher success

Entire publishing process is now automated

Authors submit files

Files are databased

Increasingly content is tagged for merchandising

Merchandising driving content management

Amazon.com and on-line retailers

Publisher’s developing own web presence

Creation of content warehouses: Harpercollins, Random House, Hachette, etc.

Recognition that ‘sampling’ via web browser should be similar to an in-store experience

Community

Development of author specific sites

Interlinking is a powerful tool for author/publisher success

HarperCollins: Browse Inside

Authonomy.co.uk

Supporting the Publishing Value Chain - Education Similar process improvements to Trade Maintains a print model Experimentation is gaining ground Implementation limits: Level of technical capacity at schools, costs of technology, capacity to evaluate technology based tools CDROM publishing partially successful Stand alone products Supplemental products Using technology to broaden product offering Educational content Assessment and remediation Student performance and monitoring, Class planning Infrastructure Education publishers become solution providers

Similar process improvements to Trade

Maintains a print model

Experimentation is gaining ground

Implementation limits: Level of technical capacity at schools, costs of technology, capacity to evaluate technology based tools

CDROM publishing partially successful

Stand alone products

Supplemental products

Using technology to broaden product offering

Educational content

Assessment and remediation

Student performance and monitoring, Class planning

Infrastructure

Education publishers become solution providers

Pearson: My Math Lab

Supporting the Publishing Value Chain – Professional Current large information publishers were founded on ‘old proprietary’ database businesses: MAID, Dialog, Infotrak Some included hardware: Reuters, Thomson Vast consolidation around segments: Medical, Financial, Legal, Tax Professional publishing leads way in development of ‘unstructured databases’: migrating away from table driven (Oracle db) approaches Increased importance of xml tagging: programmatic importation of data from multiple sources creates valuable whole Information publishers are innovators in use of technology to power their businesses

Current large information publishers were founded on ‘old proprietary’ database businesses: MAID, Dialog, Infotrak

Some included hardware: Reuters, Thomson

Vast consolidation around segments: Medical, Financial, Legal, Tax

Professional publishing leads way in development of ‘unstructured databases’: migrating away from table driven (Oracle db) approaches

Increased importance of xml tagging: programmatic importation of data from multiple sources creates valuable whole

Information publishers are innovators in use of technology to power their businesses

Reed Elsevier: OncologyStat

Customer-centric Technology Development of ‘platforms’: from print journal to e-delivery of specific articles Publishers are developing tools and applications to support use of content Content in context Content as part of the work-flow Elsevier, Reed, West, Books and e-Books Early promise/hype never delivered Kindle isn’t an “e-book” reader it is an “e-platform” Sony e-Reader, Iliad, IPhone Flexible screens, Converged content Subscription models replace purchase Library context Consumer: content on the move Database marketing: Profiling/behavioral

Development of ‘platforms’: from print journal to e-delivery of specific articles

Publishers are developing tools and applications to support use of content

Content in context

Content as part of the work-flow

Elsevier, Reed, West,

Books and e-Books

Early promise/hype never delivered

Kindle isn’t an “e-book” reader it is an “e-platform”

Sony e-Reader, Iliad, IPhone

Flexible screens, Converged content

Subscription models replace purchase

Library context

Consumer: content on the move

Database marketing: Profiling/behavioral

Democratization of Publishing Process Incredible explosion of content Anyone is a publisher Any type of content Driven by access to professional tools From InDesign to Dreamweaver to Blogger: Barriers are eliminated Computing power cheap Network effects significant Self-publishing process 45,000 titles with Lulu: $99/per title for a printed book On-demand publishing programs: no title out of print Photobooks Blurb.com, Photobucket, etc. Increasingly ‘mystique’ of publishing is eliminated: Consumers will source their own content, produce it and consume it without (direct) involvement of traditional publisher What happens in nations where traditional publishing is less entrenched – India, China, Africa?

Incredible explosion of content

Anyone is a publisher

Any type of content

Driven by access to professional tools

From InDesign to Dreamweaver to Blogger: Barriers are eliminated

Computing power cheap

Network effects significant

Self-publishing process

45,000 titles with Lulu: $99/per title for a printed book

On-demand publishing programs: no title out of print

Photobooks

Blurb.com, Photobucket, etc.

Increasingly ‘mystique’ of publishing is eliminated: Consumers will source their own content, produce it and consume it without (direct) involvement of traditional publisher

What happens in nations where traditional publishing is less entrenched – India, China, Africa?

Lulu.com

New Entrants and Wild Cards Google and the Google Book Program Not fully resolved Closed system Benefits unknown but potentially significant Digitization generally To what end? How much is too much? Who is in charge and are we making mistakes we will regret later? The Network Effect Potential vast productivity and effectiveness gain from network computing Collaboration and Crowdsourcing Shared applications and application development Maintaining the value of content vs ‘good enough’ Significant challenge for all publishers: commoditization

Google and the Google Book Program

Not fully resolved

Closed system

Benefits unknown but potentially significant

Digitization generally

To what end?

How much is too much?

Who is in charge and are we making mistakes we will regret later?

The Network Effect

Potential vast productivity and effectiveness gain from network computing

Collaboration and Crowdsourcing

Shared applications and application development

Maintaining the value of content vs ‘good enough’

Significant challenge for all publishers: commoditization

Librarything.com

Forecasting the Future of Technology in Publishing Publishing and technology will become synonymous (if it hasn’t already) Many losers who are slow to migrate to web delivery, xml based and ‘open’ social network orientation Expansion of solutions based publishing: content is secondary to the provision of a work-flow solution, an integrated application and/or an open ‘widget’ application enabling further leverage Amazon web services Education publishers will follow information publishers in rapid adoption of solutions based applications All publishers will be slow to adopt open social networks and new entrants will take market share Google isn’t finished

Publishing and technology will become synonymous (if it hasn’t already)

Many losers who are slow to migrate to web delivery, xml based and ‘open’ social network orientation

Expansion of solutions based publishing: content is secondary to the provision of a work-flow solution, an integrated application and/or an open ‘widget’ application enabling further leverage

Amazon web services

Education publishers will follow information publishers in rapid adoption of solutions based applications

All publishers will be slow to adopt open social networks and new entrants will take market share

Google isn’t finished