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Transition to Digital:
1 1 1 0
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The US Trade Book Experience
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1 1 0 1 October 18, 2012
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Leslie Hulse, Senior Vice President, Digital Development
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0 1 1 0 HarperCollins Publishers, New York, NY
0 0 0 1
1 1 1 1 Leslie.Hulse@harpercollins.com
1

2. 1 0 1 1
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Introduction
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• About Me: Senior Vice President, Digital Business Development
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for HarperCollins Publishers
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1 • About HarperCollins: One of the largest English-language
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publishers in the world, HarperCollins is a subsidiary of New
1 1 1 0 Corporation. HarperCollins has annual revenues of $1.5Billion
1 1 0 0
1 0 1 1 and global operations in the US, UK, China, Canada, India,
Australia and New Zealand.
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3. 1 0 1 1
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HarperCollins is home to many great books & authors
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1 In just five years, e-books have burst onto the scene
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1 1 0 1 • November 2007: Kindle Launched with significant fanfare and
1
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promotion
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1 1 1 1 • October 2008: Oprah Winfrey’s “My Favorite Things” Kindle
1 1 0 0 Episode
1 0 1 1
0 1 1 1
0 0 0 1 • January 2009: Apple announces there have been over 500
1 1 1 0 million downloads from its iTunes app store
1 1 0 0
1 0 1 1
0 1 1 0 • February 2009: Amazon launches Kindle app for the iPhone
0 0 0 0
1 1 1 0
1 1 0 1 • May 2009: Amazon announced that e-books now make up 35% of
1 0 1 1 sales when both e-book and physical book are available
0 1 1 0
0 0 0 1
1 1 1 1 • July 2009: Barnes & Noble launches e-book store
1 1 0 0
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0 1 1 1 • April 2010: Apple launched the iBookstore on the iPad
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• December 20010: BN launches nook color and begins selling
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enhanced children’s picture books
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0 0 0 0 • Fall 2011: Eink devices priced under $100
1 1 1 0
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1 0 1 1 • Fall 2011: Amazon launches ebook stores in France, Italy, Spain
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5. 1 0 1 1
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Ebooks are now available on all kinds of devices
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1 eBooks make up as much as 20% of overall revenue
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0 • Many new entrants and new devices in the last 24 months.
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9. 1 0 1 1
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1 We’ve learned certain things are crucial for success
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1 1 0 1
1 0 1 1 • Large ebook catalog
0 1 1 0
0 0 0 1
1 1 1 1 • One-click purchasing
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1 0 1 1
0 1 1 1 • Wireless delivery of content in a few seconds
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• Ability to read across multiple devices
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0 1 1 0 • DRM is not an obstacle
0 0 0 1
1 1 1 1
1 1 0 0 • Competitive pricing
1 0 1 1
0 1 1 1
0 0 0 1 • All titles on the print book bestseller list available in ebook format
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• Ebooks available on the same day as the print book
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10. 1 0 1 1
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Managing the transformation of our business
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0 1 1 0
0 0 0 1
1 1 1 1 1. Business Structure
1 1 0 0
1 0 1 1 • Phase 1 -- incubator
0 1 1 1
0 0 0 1 • Phase 2 -- integration
1 1 1 0
1 1 0 0
2. Update job descriptions
1 0 1 1
0 1 1 0
0 0 0 0
1 1 1 0
3. Upgrade systems for global access and distribution
1 1 0 1
1 0 1 1
0 1 1 0
0 0 0 1
4. Optimize publication process
1 1 1 1
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11. 1 0 1 1
0 1 1 1
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1 1 1 0
1. Business Structure Phase I: Incubation
1 1 0 0
1 0 1 1
0 1 1 0
0 0 0 0
1 1 1 0 • Took an incubator-style approach for the first 10 years.
1 1 0 1
1 0 1 1
0 1 1 0
0 0 0 1 • Digital products published by a separate business unit
1 1 1 1
1 1 0 0
1 0 1 1
0 1 1 1 • Strategic decision-making
0 0 0 1
1 1 1 0
• Consistent approach in negotiating contracts and publishing
1 1 0 0
1 0 1 1
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0 0 0 0
• Streamlined operations
1 1 1 0
1 1 0 1 Corporate
1 0 1 1
0 1 1 0
0 0 0 1
1 1 1 1 Digital Publishing Print Publishing
1 1 0 0
1 0 1 1
0 1 1 1 Digital Digital
0 0 0 1 Publisher Publisher
1 1 1 0
1 1 0 0
1 0 1 1
0 1 1 0 Editor Production Marketing Sales Editor Production Marketing Sales
0 0 0 0
1 1 1 0
1 1 0 1
1 0 1 1
0 1 1 0 Print Print Print Print
ebook ebook ebook ebook
0 0 0 1 book book book book
1 1 1 1 11

12. 1 0 1 1
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1 1. Business Structure Phase II: Integration
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• Ebook publishing integrated throughout the organization
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• Revenue going to the imprint who originated the title
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• Print editors encouraged to develop new kinds of products
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• Reengineering the process
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1 1 0 0
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1 1 1 0 Audio Print Audio Print
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1 1 0 1 book book book book
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0 1 1 0 ebook
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ebook
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12

13. 1 0 1 1
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1 1 1 0
1
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1 2. Update job descriptions
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1 1 1 0
1 1 0 1 - Create faster & more flexible
1 0 1 1
0 1 1 0 workflows for all products
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1 Editorial excellence – - Create new product types
- Try new business models
1
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From acquisition through
- Improve process quality &
0
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product release efficiencies
1 1 1 0
1 1 0 0 - Deliver content and information
1 0 1 1 earlier to the market
0 1 1 0
0 0 0 0
1 1 1 0 NEW “CRITICAL PATH” DATE “ZIPPER” THAT LINKS PRODUCTS AND MARKETING
1 1 0 1
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0 1 1 0
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- Do earlier and more product
1 1 0 0 sampling
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1 human organization in new Marketing excellence -
1
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0 channels (social!) From sampling through scaling
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0 0 0 0 longer scale well
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1 1 0 1
- Upgrade our communication
1 0 1 1 and sharing tools and methods
0 1 1 0
0 0 0 1
1 1 1 1

14. 1 0 1 1
0 1 1 1
0 0 0 1
1 1 1 0
3. Upgrade systems for global access and distribution
1 1 0 0
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0 1 1 0
0 0 0 0
1 1 1 0
1 1 0 1 - Content & information will be centrally stored & commonly searchable
1
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- Major work processes will be digital and collaborative – not serial or manual
0 0 0 1 - Pass along or “checking” processes will be eliminated or reconfigured
1 1 1 1
1 1 0 0
1 0 1 1
0 1 1 1
0 0 0 1
1 1 1 0
1 1 0 0 My
1 0 1 1 Data
0 1 1 0 My My
0 0 0 0 Data Data
1 1 1 0
1 1 0 1 Our Data &
1 0 1 1 Content
0 1 1 0
0 0 0 1
1 1 1 1
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1 1 0 0
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1 0 1 1
0 1 1 1
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0 0 0 1
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1 1 1 0 My
1 1 0 0 Data
1 0 1 1
0 1 1 0
0 0 0 0
1 1 1 0 SHARING
1 1 0 1 Integrating knowledge, data, and content
1 0 1 1
0 1 1 0 increases quality and add values for all
0 0 0 1
1 1 1 1

15. 1 0 1 1
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1 1 1 0
3. Upgrade Systems: Global Product Manager
1 1 0 0
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1 0 1 1
0 1 1 0 Press Release, October 11, 2012
0 0 0 1
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“HarperCollins to Launch New Global Publishing System
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Streamlining Worldwide Operations and Data
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0 “HarperCollins Publishers today announced that it will roll out a
1
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new global publishing system….will enable HarperCollins to unify
1 0 1 1 editorial, marketing and business data around the world, widening
0 1 1 0
0 0 0 1 the reach of its print and digital publications in its core target
markets….
1 1 1 1
1 1 0 0
1 0 1 1
0 1 1 1
0 0 0 1
1 1 1 0 “…It will transform the way staff view, manage and share product
1 1 0 0
1 0 1 1 information throughout the publishing lifecycle.”
0 1 1 0
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1 0 1 1
0 1 1 0
0 0 0 1
1 1 1 1

16. 1011
0111
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1011 4. Optimizing Process: Mapping
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0110
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1100 Print
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0110 Interior * only for limited books
0001
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17. 1 0 1 1
0 1 1 1
0 0 0 1
1 1 1 0
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1 1 0 0
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0 0 0 1 costs.
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1 1 0 0
1 0 1 1
Art/ Design / Marketing /
0
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0 1 1 1 Operating Measure #1: Time to Market (Throughput)
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Operating Measure #2: Product Quality (Throughput)
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18. 1 0 1 1
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1 4. Optimizing Process: Sorting
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Amount of marketing investment
0 0 0 1
1
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TEAL GROUP BLUE GROUP
1 0 1 1 Less editorial work More editorial work
0 1 1 1
0 0 0 1 More marketing investment More marketing investment
1 1 1 0
1 1 0 0
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1
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0 0 0 1
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19. 1 0 1 1
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1 1 1 0
4. Optimizing Process: Sorting
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0 1 1 0
0 0 0 0
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1
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Publishers acquire a wide range of books - but have only one
0 0 0 1 process to produce them
1 1 1 1
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1 1 1 0
1 1 0 0 FLYERS FLYERS MAYBE
1 0 1 1 BIG
0 1 1 0
0 0 0 0
1 1 1 0
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1 0 1 1 BIG FLYERS MAYBE
0 1 1 0 BIG
Go
0 0 0 1
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0 1 1 1 MAYBE
0 0 0 1 BIG
1 1 1 0
1 1 0 0 REALLY BIG TITLE
1 0 1 1
0 1 1 0
0 0 0 0
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1 0 1 1
0 1 1 0 FLYERS
0 0 0 1 FLYERS
1 1 1 1 19

20. 1 0 1 1
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1 1 1 0
4. Optimizing Process: Separate Production Lines
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Today
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1 0 1 1 List Planning Print Production Processes Ebook
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Future
0 0 0 0
1 1 1 0
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Format
1 0 1 1 Content Creation
0 1 1 0 Title / Author Creation
0 0 0 1 Segmentation
1 1 1 1 & Planning
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1 0 1 1
Content Creation Format Creation
0 1 1 1
0 0 0 1
1 1 1 0
1 1 0 0
1 0 1 1
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0 1 1 0
0 0 0 0
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1 1 0 1 Capacity
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1 1 1 1

21. 1 0 1 1
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• Questions?
1 0 1 1
0 1 1 0
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0 • Discussion
1 1 0 1
1 0 1 1
0 1 1 0
0 0 0 1 • Thank You!
1 1 1 1
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