Mecom Group's Digital Innovation and IT Sourcing Strategy


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Presentation by Torben Lundberg, CIO at Mecom Group, used at the World Publishing Expo 2012 in Frankfurt (on 30.10.2012).

Topics covered:

- Mecom's mobile framework,
- role in the e-commerce value chain / e-commerce model,
- social buying with Sweetdeal and
- sourcing of digital IT (outsourcing, nearshoring with Ciklum and cloud sourcing).

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Mecom Group's Digital Innovation and IT Sourcing Strategy

  1. 1. Session:Digital InnovationsTitle:Digital Innovation and ITSourcing StrategySpeaker:Torben Lundberg, CIO,mecom Group, UK
  2. 2. 1Mecom Case Study:Digital Innovation and IT Sourcing StrategyWAN/IFRA, FrankfurtOctober 30th, 2012
  3. 3. 2Torben LundbergMecom Group CIO
  4. 4. 3Topics for Today About Mobile Social Sourcing of eCommerce Mecom framework buying digital IT
  5. 5. 4About Mobile Social Sourcing of E-commerce Mecom framework buying digital IT
  6. 6. A Pan-European Media CompanyThe group headquarter is based in London as Mecom islisted on London Stock Exchange. Revenue is at €1.4bnlevel whereof the majority is generated from traditionalnewspaper business (circulation, advertising and relatedprinting and distribution) and the remaining is generatedfrom digital, tv, radio and e-commerce activities. Mecomemploys 10,000 FTEs and was founded in 2005.
  7. 7. 6Platforms and Main Titles
  8. 8. 7About Mobile Social Sourcing of E-commerce Mecom framework buying digital IT
  9. 9. 8Mobile Framework - Considerations• Challenges - Content from many different CMS’ - No tradition for unified development - Deploy and maintain 100+ applications - Frequent changes to content in apps• Strategies - Introducing Mecom Mobile Feed Definition (XML) - Involve local heads of divisions’ - One-build approach iOS, Android, HTML5 - Mecom Mobile Administration (back-end)
  10. 10. Mecom Mobile Framework 9Results – smartphones multi platform iPhone Android HTML5
  11. 11. Mecom Mobile Framework 10Results – Cross division Wegener Media Berlingske Media Edda Media PressPublica Media Regionalne Wegener Media
  12. 12. 11About Mobile Social Sourcing of eCommerce Mecom framework buying digital IT
  13. 13. 12Our Role in The eCommerce Value Chain Inspiration Buy Partner Partner Mecom Import Ware- ATL/BTL Sales Customer house Service Logistics Production Communication Order Exposure/ CMS Stories Sales Partner eCommerce USP: Traffic- > Inspiration -> Buy
  14. 14. eCommerce model Flow of customers to the shops created Customers through product promotion on in-house TRAFFIC! media. Identity and branding as a well known ”shopping centre”Retailers with Retailers with onlineonline shops shops• Procurement • Stock• Products Partners provide the Partners receive the • Pick and Pack full product portfolio orders and fullfills• Pricing utilising existing • Distribution for the Mecom shops processes
  15. 15. 14Product Examples Wine Sports Events Sales: 100.000 bottles 45.000 participants Radid growth in partners For running, cycling or sailing Wine Club Events and Entertainment Travel Festivals, Tivoli Tematic travel packages Movies, GastroWeek etc 200+ destinations
  16. 16. 15Movie Example From Web Shop
  17. 17. 16About Mobile Social Sourcing of E-commerce Mecom framework buying digital IT
  18. 18. 17Sweetdeal – Really Effective Online Sales • New sales and marketing model with rapid growth in Mecom markets • eCommerce and social media • Optimises capacity and brand awareness • Marketing - no cure/no pay • Revenue share model
  19. 19. 18 18A Random Sunday Deal: Revenue 92.000€
  20. 20. Sweetdeal GrowthGeographical growth General growth %growthFrom being a local concept with Revenueshops in a few cities in 2010,Sweetdeal has developed into an Permissionsinternational conecpt. Cities 740% 620% 2010 2011 250 % Number of cities with local deals has grown 250%. Number of collected permissions grown with 620%. Growth in revenue is 740%. All since 2010.
  21. 21. 20About Mobile Social Sourcing of E-commerce Mecom framework buying digital IT
  22. 22. 21IT Sourcing StrategyOutsourcing “Near-Shore” Cloud Sourcing• Central IT and • Digital development • Mecom was early with infrastructure outsourced to Ciklum cloud sourcing outsourced to HCL in in Ukraine experiments in 2009 India • Easy access to • All communication• Application Drupal Open Source infrastructure cloud management is 70% web programmers sourced to Google outsourced • Magento e-commerce • CRM cloud sourced to• Governance over IT comptence centre for has been improved Mecom to speed up decision processes • HTML5, iOS and Android programmers working with teams in Western Europe IT costs has been Flexible and scalable Fast implementation of reduced by 20% solution which reduced new software for digital costs by 30% end-users
  23. 23. 22IT as a Strategic DifferentiatorCategory Project Technical deliveryMobile iPhone and Android Kiev team Tablets HTML5 Mobile TV Delivery in Kiev and India isEditorial websites News and tabloid Kiev team Paid for content Contractors ready: City guides CommunitiesCommercial E-commerce Kiev team - High level ofwebsites Sweetdeal Contractors engineering competence Pay sites HCL Topic pagesCustomer Targeting Kiev team - Scalable resourceintelligence Consumer marketing Netsprint CRM and self service HCL Data mining Contractors - Competitive costCross disciplines Payment solutions Kiev team Single sign-on Netsprint Search and blogs HCL Digital analytics Contractors
  24. 24. 23Our New IT colleagues in Ciklum and HCLData centres (Amsterdam, Warsaw)IT specialists (Chennai, Apeldoorn, Copenhagen, Kiev)IT servicedesk (Krakow)
  25. 25. Questions?