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The New World Scale Equation
Ken Michaels
President
Hachette Book Group
2
3
Ways to Scale…
Wal-Mart
Logistics /
Delivery
Huffington
Post
Content
Aggregation
Netflix
Accessibility
Intel
R&D
Find your core competency and build on that!
4
Self Publishing Traditional
Market is now “Over-Served”
with huge supply of media choices
5
Infrastructure
Where to focus…
Content
Creation
Content
Management
Delivery Discovery
Transactions
Intelligence
6
Distributed with Discovery and Reach in mind
Data Quality
& Intelligence
Global Rights & Monitoring
Global integration & interoperability Demand/Supply Forecasting
Efficiency & Integration at HBG
Commerce Analytics Marketing Community
Content Created Once
7
Data is the Key to Execution
Fix
Retailers
Metadata
Author Bio
Description
BISAC Category
Presentation &
Discovery
8
Challenge Target Solution
Reaching consumers
where they interact,
share, and influence
Facebook
Reaching consumers’
influence points
Where consumers
“flock”
Consumer intelligence
on what is working
Pricing,
Merchandizing,
On-Sale-Date
Tactics & Monitoring
Reach & Discovery
9
• Changing economic conditions
• Dual investment strain (digital and traditional)
• Speed and complexity of technology
• Service capabilities grow in importance
• Skill sets required
• Lack of training budgets
• Modular attributes
• Cloud Scalability
Why SAAS is the new business imperative
10
Innovation + Execution = Scale
Authors’
Content
Consumers

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Ken Michaels - New World Scale Equation

  • 1. The New World Scale Equation Ken Michaels President Hachette Book Group
  • 2. 2
  • 3. 3 Ways to Scale… Wal-Mart Logistics / Delivery Huffington Post Content Aggregation Netflix Accessibility Intel R&D Find your core competency and build on that!
  • 4. 4 Self Publishing Traditional Market is now “Over-Served” with huge supply of media choices
  • 6. 6 Distributed with Discovery and Reach in mind Data Quality & Intelligence Global Rights & Monitoring Global integration & interoperability Demand/Supply Forecasting Efficiency & Integration at HBG Commerce Analytics Marketing Community Content Created Once
  • 7. 7 Data is the Key to Execution Fix Retailers Metadata Author Bio Description BISAC Category Presentation & Discovery
  • 8. 8 Challenge Target Solution Reaching consumers where they interact, share, and influence Facebook Reaching consumers’ influence points Where consumers “flock” Consumer intelligence on what is working Pricing, Merchandizing, On-Sale-Date Tactics & Monitoring Reach & Discovery
  • 9. 9 • Changing economic conditions • Dual investment strain (digital and traditional) • Speed and complexity of technology • Service capabilities grow in importance • Skill sets required • Lack of training budgets • Modular attributes • Cloud Scalability Why SAAS is the new business imperative
  • 10. 10 Innovation + Execution = Scale Authors’ Content Consumers

Editor's Notes

  1. Let’s start by challenging some assumptions about scale… Does scale only meangirth in title output? No. To me, scale is a strategic perspective.Scale does NOT equal volume, necessarily, or competitiveness. It’s all about relevance about what you are trying to accomplish as a strategic initiative. It’s not a volume game, it’s an execution gameYes, you can combine for greater volume and negotiation/bargaining power, but that’s not adding value in connecting readers to authors. It’s not size, it’s vision focused to execute. Are you meeting the needs of the environment you are dealt with? Better to invest in Integration & Reach, Find your core competency and focus on that to build a competitive advantageScale for Efficiency & Effectiveness
  2. Find your core competency and build on that. Examples of success:Wal-Mart: Logistics (delivery)Huffington Post: content aggregation (they are not the originators of content, but aggregators)NetFlix: Accessibility, and have adapted over time, moving from mail to online streaming. All the while making it easier and easier for their consumers to get to the content they want and when they want it. IMB: reinvented themselves, moving from mainframes to business servicesIntel: has substantial technological rivals, but their research and development budget (upwards of $7 billion annually) is difficult to compete with. Intel’s semiconductor market dominance, rock solid balance sheet, and large R&D expenditure, allow the company to consistently produce cutting edge processors, and when caught off guard, gives them time to adapt to market rivals. There companies gained achieved prominence not through acquisitions but because they found a need, and a gap in the market and they invested
  3. Scale won't solve this without smart disciplined executionReachValueDiscoveryRelevantVolume consolidation doesn’t create competition
  4. Any of these…Traditionally back office, but can’t think of it as de-coupledNow enablers!
  5. PrintDemand & Supply forecasting for “Just In Time”Marketplace feedback loops to constantly improve
  6. Data quality is key Simplifying accountability TransparencyPositioned Properly for discoveryData cleansingOnline Detailed Dashboard -Interactive comparative views of data highlighting identified issues Validation - Automated review of metadata using latest BISG Best Practices for Data SendersCertification Scoring - BISG defined metrics for each tested element
  7. ChallengeReaching consumers where they interact, share, and influenceReaching consumers’ influence pointsConsumer intelligence on what is workingTargetFacebookWhere Consumers “Flock”Pricing, Merchandizing, On-Sale-Date Tactics & MonitoringSolutions
  8. Play to your strengthsWhere you have weaknesses, plug and play with world class providers
  9. Goal is to bridge authors to consumers in a cost effective and valuable wayConclusion:You have a choice: invest horizontally or verticallyWhat do authors want?Flexibility and agility to tell their stories FeedbackRich mediaConsumer interactionsAppreciate qualityImage & brand well reflectedWho do you trust your name to?Be careful how you step off (self-publishing)Does scale provide new value to authors?Not about sizeIt’s about services, capabilities, agility, reach, branding, analysisInnovate to new needs and challenges – and do it well – to bridge authors to consumers