The document summarizes the impact of digitalization on the book industry. It provides examples of how digital technologies have disrupted traditional models, including Lawrence Lessig's use of a wiki to update his book and collaboratively write Code v2. Emerging structures like online booksellers, search engines, and self-publishing platforms are bypassing traditional players and changing value creation processes. However, no sustainable new business models have emerged yet and traditional publishers may need to change radically or decline as revenues can now flow more directly to authors.

1. From the Gutenberg Galaxy Towards
a Digital Galaxy:
Developments in the Book Industry
7. November 2008
Liberec Informatics Forum
Hans-Dieter Zimmermann
Swiss Institute for Information Research SII
University of Applied Sciences HTW Chur, Switzerland
This presentation is licensed under a Creative Commons Attribution-
Noncommercial-Share Alike 2.5 Switzerland License
http://creativecommons.org/licenses/by-nc-sa/2.5/ch/

2. Agenda
Introduction
Examples
Value Creation Structures and Processes
Conclusions
page 2

3. Impact of Digitalization on Industries
There is a very obvious transformation of industries
going on due to an ongoing digitalization, e.g. in …
Banking
Tourism
Media
Newspapers
Music
Movie
…
… but what about the book industry?
No research available
page 3

4. Digitalization in the Book Industry - Examples
page 4

5. Digitalization in the Book Industry – Examples:
Codev2
Starting point:
Lawrence Lessig (1999): Code and Other Laws of Cyberspace.
Lessig: Professor at Stanford University
Founder of Creative Commons (http://creativecommons.org)
[http://codev2.cc/] Seite 5

6. Example: Code v2 by Lawrence Lessig
“That text is Lessig's "Code and Other Laws of Cyberspace." The second
version of that book is "Code v2." The aim of Code v2 is to update the earlier
work, making its argument more relevant to the current internet.
Code v2 was written in part through a collaborative Wiki. That version is
still accessible here. Lessig took the Wiki text as of 12/31/05, and then added
his own edits. Code v2 is the result.
The Wiki text was licensed under a Creative Commons Attribution-
ShareAlike 2.5 License. So too is the derivative. Reflecting the contributions
of the community to this new work, all royalties have been dedicated to
Creative Commons.
You can download the full text in PDF form. The text is also available in a
Wiki hosted by SocialText. And obviously, you can also buy the book at the
links to the right. “
[http://codev2.cc/] Seite 6

7. Digitalization in the Book Industry – Examples:
WEbook - User-Generated Books ?
Seite 7
[http://www.businessweek.com/technology]

8. WEbook - User-Generated Books ?
[http://www.webook.com/]
Seite 8

9. Digitalization in the Book Industry – Examples:
User Generated Content: Book Charts
[http://www.mayersche.de/469.3.html] page 9

10. Digitalization in the Book Industry – Examples:
eBook, eJournal, eEverything?
[http://lib.consortium.ch/]
Seite 10

11. Framework to Capture the Changing Value Creation
Structures Processes
Products Infrastructures
page 11

12. Value Creation Structures:
Re-Intermediation: Reinforcement of Existing Players
Traditional intermediaries have to redefine their business
Book retailers
Book wholesaler
Publishing houses
E-Commerce applications
‚Web 2.0‘ applications
Examples
Catalogues, Online ordering, recommendations, reviews, blogs, book
charts, social tagging, communities of interest, additional information
about authors such as interviews, etc., search inside, whishlist, ratings,
etc.
page 12

13. Value Creation Structures:
Cyber-Mediation: Emerging new Intermediaries
From Re- to Cyber-Mediation:
Mangaka.de:
A publisher emerges as a
communiy manager for mangas
(Verlag Droemer Knaur )
Open question:
Business model?
page 13

14. Value Creation Structures:
Cyber-Mediation: Emerging new Intermediaries
Amazon.com
Online-only bookseller scared traditional player in the mid 90s
Google.com
Digitalization of books, ‘search inside’
Libreka.de
The answer to Google
Libreka.de represents the German booksellers
>75’000 books online in fulltext
E-Commerce options
Goal: shall support traditional booksellers
… but why should I go the bookseller anymore?
page 14

15. Value Creation Structures:
Cyber-Mediation: Emerging new Intermediaries
Webook.com
Collaborative authoring of books
BookRix.com , XinXii.com
Platforms that enable authors to market their e-books directly
‚Books on Demand‘ – bod.de
Enables authors to market their printed books directly
Pegastar.com
Individualization of books
There are plenty of options to participate in the book market and to cope
with the challenges
page 15

16. Value Creation Processes:
Bypassing Traditional Players
Process Description Example
‚Product Individualization of contents: Pegastar.com
design‘/ The reader as a co-author
text authoring
Collaborative authoring: verlorene-werke.de
Provision of platforms supporting fantasyautoren.de
authors kurzgeschichten.de
Webook.com
Utilization of wikis to integrate codev2.com
readers into the authoring process (Lawrence Lessig)
page 16

17. Value Creation Processes:
Bypassing Traditional Players
Google Book Search
libreka.de
Online book seller and
Online applications offered by
publisher
booksellers, publishers: e.g., review,
Product MySpace.com
book charts by readers, blogs,
search Facebook.com: Virtual
‘search inside’, background
Bookshelf
information, forums, chats, etc.
Affiliate-Programs of
Online booksellers
www.literatopia.de
page 17

18. Value Creation Processes:
Bypassing Traditional Players
Order Online orders through publishers Randomhouse.de
Bod.de
Production Book print to order
Pegastar.com
Distribution BookRix.com
Pure Online distribution as XinXii.com
e-books free-ebooks.net
storyparadies.de
verlorene-werke.de
‚hybrid distribution‘:
free download availability but print Codev2.com
version to buy
Direct distribution through authors elfriedejelinek.com
page 18

19. Conclusions
The book market is undergoing a major change
Changes are driven by ICT
Market interaction reaches new heights
Booksellers have to redefine their business
The reader is no longer only a buyer, but a reviewer, co-author, discussant
There are plenty of options - but they have to be tested -
… and there are plenty of threats
… but no sustainable business models yet!
page 19

20. „I expect that business models will change further and it seems likely that the
traditional music and book publishing industry, for example, will have to
change radically, or die. […] The new digital and networked online
environment simply does not support big intermediaries; the revenues,
moreover, can flow more directly to the artists rather than to the
intermediaries. That’s not to say that they can’t perform useful functions in
career management, production, editing, marketing and the like – but they can
no longer get much of a return on the distribution function that was their
mainstay.”
[Dyson 2006]
page 20

21. Thanks for your attention.
Hans-Dieter Zimmermann
www.hdzimmermann.net
This presentation is licensed under a Creative Commons Attribution-
Noncommercial-Share Alike 2.5 Switzerland License page 21
http://creativecommons.org/licenses/by-nc-sa/2.5/ch/