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Gilbert clark

ISOJ 2013

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Gilbert clark

  1. 1. Digital Transformation: Innovation, Journalism and the Future of Newspapers Clark G. Gilbert, CEO
  2. 2. The Trusted Digital Voice Page 2 Trusted voices of light and knowledge reaching hundreds of millions of people worldwide Our Mission
  3. 3. The Trusted Digital Voice Disruption in Print Media ProductPerformance Time Disruptive Innovation Source: The Innovator’s Dilemma
  4. 4. The Trusted Digital Voice The Power of Autonomy Separate Physical Location Separate P&L Separate Direct Sales Separate Content, Product, and Technology Teams Separate Management Structure Benchmarking Local Media Online Market Share Souce: Borrell and Associates Characteristics of High Market Share Sites
  5. 5. Established Business Disruptive Business Net New Growth Starts Outside Established Business Displacement "Overall, the newspaper industry's involvement with the Internet has been one where it had a lot to lose and it's been trying not to lose it, as opposed to starting from scratch and having a lot to win." --President of Online Newspaper Division Finding New Market Growth
  6. 6. The Trusted Digital Voice A Rough Picture of the Lifecycle of Disruption 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 13000 14000 15000 1965 1975 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Source: ITI, Industry Statistics Programs; U.S. Microcomputer Statistics Committee Forecast, Data Analysis Group Mainframe Computer Market Minicomputer Market First Revenue Lead Sustained Revenue Lead Minicomputers Disrupt Mainframes Dollars ($millions) Phase I Phase II Phase III
  7. 7. The Trusted Digital Voice Newspapers: Familiar Pattern of Disruption
  8. 8. The Trusted Digital Voice Progress- DDM Revenue GrowthRevenue Total DDM Revenue 2009 Revenue 2010 Revenue 2011 Revenue 2012 Budget
  9. 9. The Trusted Digital Voice New Channels of Digital Revenue Legacy Media Sales Channel Revenue Has More Than Doubled Since 2009 2009 2010 2011 Meanwhile, Dependence On Legacy Channels Has Been Cut By Half 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2009 2010 2011 $ UP % DOWN Total $* *Actual Revenue Numbers Not Disclosed 90% 55% 45%
  10. 10. The Trusted Digital Voice Dual Transformation Legacy Organization Separate Disruptive Organization •Dramatically Lower Costs in the Core •Reposition Core around a Post-disruption “Job-to-be-done” •Create a Separate P&L •Separate Management Structure •Hire Disruptive DNA Transformation A Transformation B “Capabilities Exchange” between Legacy Core and Disruptive New
  11. 11. The Trusted Digital Voice 1. Targeted for Specific Benefit with Measurable Outcome 2. Limited in Duration 3. Limited in Number Involved—Typically senior 4. Output will not harm either Transformation A or B 5. Senior Leadership protects Disruptive Initiatives Buyer Beware : Failure to keep the Exchange Modular will result in killing the Disruptive Transformation Ground Rules for Exchange Teams
  12. 12. The Trusted Digital Voice Capabilities Exchange: Digital Rubric •Editorial Voice •Customer Research •Cultivate a Beat •Interview Skills •Deep Analysis and Rigor •Cross-Check Sources •Content Optimization •UGC •Remote Contributors •Link-off Curation •Lists Generation •SEO, Social Optimization •Editorial Voice •Customer Research •Rotator Frequency Ratios, Change Rules •Core Navigation Decisions •Editorial Constructs for UGC, Lists, Curation Editor, Publisher  Digital GM, Online Editor, Social (CEO) Legacy Organization Separate Disruptive Organization Digital Rubrics
  13. 13. The Anatomy of a Transformation: Content Ideas that are Changing the Industry
  14. 14. The Trusted Digital Voice Transformation A 1. Step-change reduction in Content Costs 2. Differentiated Content: Invest where you can be “the best in the world” Transformation B 1. Digital Only, not Digital First 2. Hire Digital DNA Content Ideas for Both Transformations
  15. 15. The Trusted Digital Voice 1. Step-change Cost Reductions: The Huffington Post vs. NYT 0 5 10 15 20 25 30 35 New York Times Huffington Post Unique Users 0 200 400 600 800 1000 1200 1400 New York Times Huffington Post Head Count
  16. 16. The Trusted Digital Voice Initiatives result in sourcing undifferentiated content at significantly lower costs 0 100 200 $300 Cost per story Des News (today) $227 KSL (today) $143 Integrated Newsroom $119 Stringers $50-100+ Deseret Studios $20 AP/other wire $12 Deseret Connect Old DN Newsroom Old KSL Newsroom New Integrated Newsroom ???
  17. 17. The Trusted Digital Voice “The web favors things that are narrowly comprehensive. That is everything about something. Newspapers, by contrast, are variety shows; something about everything.” – Lisa Williams, founder, PlaceBlogger 2. Differentiation: Where can you be the 'Best in the World'
  18. 18. The Trusted Digital Voice • Strengthening the Family • Faith in the Community • Care for the Poor • Values in the Media • Excellence in Education • Financial Responsibility 2. Differentiation: Deseret News Six Areas of Emphasis
  19. 19. The Trusted Digital Voice Faith-based Segmentation of U.S. Public Six Defining Factors Used in Segmentation Segment 1 Tolerant Believers 27% Segment 2 Devoted Denomin- ationalists 16% Segment 3 Secularists 12% Segment 4 Fence sitters 14% Segment 5 Humanists 18% Segment 6 Strugglers 13% National Total LDS Sample Factor 1: Religious Devotion 5.80 5.82 2.37 4.37 3.74 4.95 4.72 6.08 Factor 2: Helping Others 5.56 5.15 3.82 3.79 5.02 4.80 4.84 5.36 Factor 3: Commitment to Marriage 4.79 4.42 3.47 4.22 4.82 2.95 4.26 4.79 Factor 4: Teaching Children 5.27 4.86 3.78 3.23 5.34 4.44 4.64 5.43 Factor 5: Decline in Moral Values 6.03 6.08 2.93 4.00 3.98 5.14 4.91 6.45 Factor 6: Many Religions Lead to Heaven 6.21 2.92 3.46 5.72 5.57 5.63 5.10 3.70 Source: DMC Research Panel, Cathy Chamberlain
  20. 20. The Trusted Digital Voice Tolerant Believers 27% Devoted Denominationalists 16% Secularists 12% Fence Sitters 14% Humanists 18% Strugglers 13% 56% “Niche” = Like-Minded Believers Source: DMC Research Panel, Cathy Chamberlain Like-minded Believers
  21. 21. The Trusted Digital Voice Family and Faith, reported with rigor
  22. 22. The Trusted Digital Voice Deseret News Sunday National Print Edition 2012 Growth: Fastest Growing U.S. NP - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000
  23. 23. The Trusted Digital Voice Transformation A 1. Step-change reduction in Content Costs 2. Differentiated Content: Invest where you can be “the best in the world” Transformation B 1. Digital Only, not Digital First 2. Hire Digital DNA Two Big Content Ideas for Both Transformations
  24. 24. The Trusted Digital Voice 1. Digital Only (Not Digital First) Source: Harvard Business School Newspaper Study *Unique Page Impressions/Circulation 0 20 40 60 80 100 120 0 10 20 30 40 50 60 70 80 90 Audience Penetration* Percentage of Content NOT in Newspaper
  25. 25. The Trusted Digital Voice 1. Digital Only, Not Digital First
  26. 26. The Trusted Digital Voice 1. Digital Only, Not Digital First
  27. 27. The Trusted Digital Voice 1. Digital Only, Not Digital First
  28. 28. The Trusted Digital Voice 2. Hire Digital DNA: DDM Team did not Come to Work for a Newspaper
  29. 29. The Trusted Digital Voice Legacy Publications Content Models We are Watching Digital Only Publications
  30. 30. The Trusted Digital Voice 1 2 3 Key Overall Takeaways Dual Transformation • There are 2 Transformations, not one •Modular Rules around Exchange Teams (Buyer Beware) Transformation A Content • Step-change cost reductions • Invest where you can be the “best in the world” Transformation B Content •Digital Only, Not Digital First •Build Digital DNA

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