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1.
Digital Transformation:
Innovation, Journalism and the
Future of Newspapers
Clark G. Gilbert, CEO
2.
The Trusted Digital Voice
Page 2
Trusted voices of light and knowledge reaching
hundreds of millions of people worldwide
Our Mission
3.
The Trusted Digital Voice
Disruption in Print Media
ProductPerformance
Time
Disruptive Innovation
Source: The Innovator’s Dilemma
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.
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.
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.
The Trusted Digital Voice
Newspapers: Familiar Pattern of
Disruption
8.
The Trusted Digital Voice
Progress- DDM Revenue GrowthRevenue
Total DDM Revenue
2009 Revenue
2010 Revenue
2011 Revenue
2012 Budget
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.
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.
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.
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.
The Anatomy of a Transformation:
Content Ideas that are Changing the
Industry
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.
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.
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.
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.
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.
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
21.
The Trusted Digital Voice
Family and Faith, reported with rigor
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.
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.
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.
The Trusted Digital Voice
1. Digital Only, Not Digital First
26.
The Trusted Digital Voice
1. Digital Only, Not Digital First
27.
The Trusted Digital Voice
1. Digital Only, Not Digital First
28.
The Trusted Digital Voice
2. Hire Digital DNA: DDM Team did not
Come to Work for a Newspaper
29.
The Trusted Digital Voice
Legacy Publications
Content Models We are Watching
Digital Only Publications
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