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Transformation in Action: Sourcebooks - Digital Book World 2016

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A case study presented at Digital Book World on the transformations Sourcebooks and the industry have experienced and where we are headed with regard to personalized content, new business models, and the tools and tactics we use to create change.

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Transformation in Action: Sourcebooks - Digital Book World 2016

  1. 1. Transformation in Action:
 Sourcebooks Digital Book World 2016 Dominique Raccah, Publisher and CEO
  2. 2. 4 sections 1.  why transformation 2.  transformation at Sourcebooks 3.  critical ideas 4.  some tools we use
  3. 3. transformation in the book industry
  4. 4. Online Distribution/Retail Print Digital Brick and Mortar Retail Online Retail Format/Content
  5. 5. digital transformation
  6. 6. eBooks Growth: 2008 – 2013
  7. 7. retail transformation
  8. 8. Online retail is still around 10% of retail $ in America
  9. 9. Shoppers’ Top Priorities ü Spending as little as possible ü Feeling like I got a good deal ü Having a stress-free experience ü Doing all/most shopping in one place ü Completing my shopping quickly Omni-Channel is shaping what’s important:
  10. 10. Average  Number  of  Retailers  in  Shoppers’  Networks*   Shoppers Eliminate Retailers from Their Networks Streamlining,  simplifying,  and  engaging  in  “retailer  ra?onaliza?on”   Green: Total Retailer Portfolio; all retailers shopped in any given month Blue: Core Retailer Portfolio; retailers shopped every month, at least once a month, on an ongoing basis *Inclusive of visits to stores and online shopping Web sites Source: Kantar Retail ShopperScape®, January–September 2007, 2013, 2014 Total   12.4   5.8   Core   10.7   5.0   Total   Core   Total   Core   9.7   4.6  
  11. 11. Online, Especially Prime, Resets Shopper Expectations Across Retail Penetration of Amazon Prime Membership (among all U.S, primary household shoppers) How Prime Membership Changes Shopping Patterns (among all Prime Members) Source:  Kantar  Retail  ShopperScape®,  December  2011– 2014,  Kantar  Retail  es?mates   Source:  Kantar  Retail  ShopperScape®,  December  2014  
  12. 12. Today, book retailers are working hard to buildout their ecommerce capabilities to compete with Amazon
  13. 13. Book Publishing today is fundamentally a Red Ocean
  14. 14. And it’s only going to get more crowded
  15. 15. 2. transformation at Sourcebooks
  16. 16. The Strategic Problem—need to add more value Publishers Retailers Don’t compete with our retail partners Creative Partners
  17. 17. Our Strategic Thinking: Creating New Kinds of Value Through Direct to Consumer in Every Vertical Exclusive channels that provide more marketing mojo and increasing revenue in a crowded ecosystem Publishers Retailers Readers Don’t compete with our retail partners Creative Partners
  18. 18. Using digital and ecommerce to add real value for authors and retail partners in ways they can’t do for themselves What’s drives transformation at Sourcebooks From Sourcebooks new hire orientation
  19. 19. “ ” …nothing says 'transformation' more than revenue sources you didn’t used to have. —Mike Shatzkin, ideolog, Nov. 5, 2015
  20. 20. Sourcebooks Sales by Piece of Business 2015
  21. 21. Driving Innovation + Transformation in 4 ways Physical books (units) eBooks ($) Put Me In The Story ($) Simple Truths ($) Core business   Direct to consumers/ eCommerce  
  22. 22. creating new revenue streams for authors + partners
  23. 23. The #1 Personalized Books Site in America
  24. 24. NEW revenue for bestselling books + licensed content partners
  25. 25. Put Me in the Story adds significant value 0.00%   10.00%   20.00%   30.00%   40.00%   50.00%   60.00%   70.00%   80.00%   90.00%   100.00%   0   10   20   30   40   50   60   70   80   90   PMITS  %  of  Sales   PMITS  %  of  Sales   AVERAGE  36%   On average Put Me in the Story adds 36% NEW units
  26. 26. 3. transformation at Sourcebooks — how 4 critical ideas
  27. 27. 1 Defining strategic model
  28. 28. “ ” innovation is iteration Michael Cader BISG Making Information Pay 2008
  29. 29. The Lean Startup Model
  30. 30. The experimental model we use…
 challenging to implement
  31. 31. this model makes you think about experimentation differently
  32. 32. And what’s critically important is that we rethink our whole view on FAILURE
  33. 33. In this model: failure is an event. It’s about the facts. It’s not about you.
  34. 34. Your goal is to…
  35. 35. a change in our frame
  36. 36. These were all things we believed would work…
  37. 37. These were all things we believed would work…
  38. 38. 2 Understanding the customer experience
  39. 39. “ ” You’ve got to start with the customer experience and work back toward the technology—not the other way around. Steve Jobs
  40. 40. 2. transformation: what? 
 Look to what your customers are already doing with your content and books. What are your authors telling you about? What do they need?
  41. 41. Started by enhancing existing " customer experience Marianne Richmond Greg Lang
  42. 42. Started with app built to replicate
 what customers seemed to already be doing Incredibly easy-to-use interface in the app…
  43. 43. The #1 Personalized Books Site in America Customer experience— Visualize the user and the purpose
  44. 44. 3 Create the culture
  45. 45. “ ” …always tension between control and innovation… transformation is about cultural change within an organization — John Ingram, Digital Book World March 2016
  46. 46. New Model Mindset How a transformation changes our work
  47. 47. 4 Data Data Data
  48. 48. Need more and better data, better processes, and more transparency around every step in the publishing process
  49. 49. Innovation => the gritty stuff
  50. 50. 4. transformation at Sourcebooks the tools we use
  51. 51. All of the tools we use at Sourcebooks were organically created The Tools We Use
  52. 52. Management Team Quarterly Offsite
  53. 53. SMART Outcomes (SMART Goals)
  54. 54. Bimonthly Breakthrough Meeting
  55. 55. Questions? Thoughts? Comments? dominique.raccah@sourcebooks.com @draccah

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