1. PETS. SPECTACULAR DIGITAL FAILURE OR
MODEL FOR PUBLISHING INNOVATION?
Iain Langridge,
VP, Digital Media, Discovery Communications
@EenL

6. * Estimated size of the U.S. Pet industry in 2013 from 2012 APPA Pet Ownership Survey

12. ComScore (12me April 2013)
The size of each data point is proportional to the Unduplicated Annual Reach of each property (UVs)
Petfinder
(Current)
Petfinder
eHow Pets
PawNation
Petco
Purina
Purina
Petango
AdoptAPet
Answers (Animals)
Pet360
0
4
8
12
16
1.0 1.5 2.0 2.5
ENGAGEMENT
(AveragePVs/Vist)
Frequency (Annual visits per UV)

15. $0
$2
$4
$6
$8
$10
$12
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
IPET Stock Price (From IPO (02/2000) to Delist (01/2001)

16. Animal Shelters
Rescue Groups
Foster Groups
Humane
Societies
Petfinder Members
3rd Party Shelter
Management Software
Pet Adopters and Pet Lovers
New Pet Owners
8,5MM
175,000
Petfinder Users
Pet Owner Data
Pet Data
Admin System
Petfinder.com
Adoptable Pet
DatabaseMember Web
Tools & Services
Adoptable Pets Listed
365,000
Adoption Event Data
14,000
Adoptable Pets
6MM
300MM
Impressions
Between
30,000-130,000
Registered
Owners (est.)
30,000-180,000
Registered
Pets(est.)
TECHNOLOGY STACK
A Month in the Life of Petfinder

19. Obviously, everyone
wants to be successful,
but I want to be looked
back on as being
innovative,..

20. Innovation is the specific
instrument of entrepreneurship.
The act that endows resources
with a new capacity to create
wealth

21. 1. Purpose is key (and money is not a purpose)
2. Break-through by surrendering
3. Finding the Win-Win-Win drives innovation
4. Bring innovation back to the model
5. Don't build your organization around an
innovation. Build it to innovate
Petfinder-Proven Rules for Digital Innovation

22. got purpose?

24. TABLE A-1
Investment performance of Firms of Endearment* companies versus
the S&P 500, 1996 to 2011
Fifteen-year Ten-year Five-year
Return
Cumula-
tive
Annual-
ized
Cumula-
tive
Annual-
ized
Cumula-
tive
Annual-
ized
FoEa 1,646.1% 21.0% 254.4% 13.5% 56.4% 9.4%
S&P 500b 157.0% 6.5% 30.7% 2.7% 15.6% 2.9%
Note: company returns are total returns with dividends reinvested and compounded
a. Companies from Firms of Endearment, updated by authors
b. Standard & Poor’s index of five hundred U.S. companies
*The eighteen Firms of Endearment companies are Amazon.com, BMW, CarMax, Caterpillar, Commerce Bank,
Costco, eBay, Google, Harley-Davidson, Honda, JetBlue, Johnson & Johnson, Southwest Airlines, Starbucks,
Timberland, Toyota, UPS, and Wholefoods Market.
Source: Sisodia, Wolfe and Sheth, Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, Pearson Prentice Hall, 2007, updated 2011

25. Creating responsible pet owners
from adoption throughout a pets life

28. SURRENDER
Success, however unlikely, requiring however much innovation is inevitable !
if you give in to what your purpose is telling you to do

32. Adoption Options

34. Before After

40. Generate as many ideas
as possible about:
• Who to target
• What to offer
• How to organize to
do all this efficiently
Evaluate these ideas
and decide what to
do and what not to do
Implement the
choice(s) selected
while remaining
flexible enough to
adjust to changes in
the environment
Exhibit 10-1 The Process of Crafting Breakthrough Strategy
Question the organization’s mental models. Facilitate this
questioning by creating a positive crisis
Create a questioning culture
Create variety in the thinking processes
used during formal strategic planning
sessions
Experiment with new definitions of who,
what, and how
Find ways to make the strategy development process
democratic and participative
Replicated from ‘All the Right Moves, by Constantinos Markides, HBS Press

41. Petfinder-Proven Rules for Digital Innovation
1. Purpose is key (and money is not a purpose)
2. Break-through by surrendering
3. Finding the Win-Win-Win drives innovation
4. Bring innovation back to the model
5. Don't build your organization around an innovation.
Build it to innovate

43. Purpose + Surrender + Win-Win-Win + (Expectation of Change + Stakeholder focus)
= Innovative (Digital) Business

44. @EenL