Bonnier’s Approach to Establish a Centralized Research Essay
What specific approaches did Bonnier and Arrival use to overcome related challenges? Due to Orwell installation in San Francisco (in the heart of the digital revolution), Bonnier perceived earlier the consequence of digitization on his traditional market segment. Orwell also placed a bet on digital touch screen and was one of the first media companies who provide dedicated content on pad.
She perceived globally the challenges media companies face due to the disruptive effects of digitization, where traditional products and services are challenged by new digital category breakers.
Question 3:What is the nature of digital innovation and how can fast-paced digital innovation practices be most effectively handled in traditionally conservative business contexts and industries? The nature of digital innovation for Bonnier was to build a new digital business modeling the top of traditional publishing industry. In this model -? content (Bonnier digital publishing or publishing customers), experience (customer interactions) and platform (Mage+) -? work together to create a compelling customer value proposition.
Common to all these efforts was the creation of unique content not available via any other source. As Orwell said, in a presentation tattle; University, the following constraints or problematic need to be addressed, especially in a traditionally conservative business contexts and industries: Firstly, you need to be not only the most innovative company on your existing market segment but more than that, the most one on next market segments.
Secondly, she also described the four dilemmas to resolve if you want to promote a culture of innovation in a company: #1 SST problem area- Product development inertia: Orwell wanted to lift main constraints on innovation, like the “kill your cask cows” syndrome or the risk o go outside your comfort zone.
#underemployed area – Coordination Chaos: Bonnier found ways to open discussion with inside and outside people in a more relax context (coffee house, lab on liner social media, etc. ). 3rd problem area – Amoeba Product: Bonnier needs to see the next step outside simply digitize actual market. It is difficult because you need to ask your costumers earlier: “what do you expect from a product that you don’t know the existence today? ‘ To resolve this dilemma you need to create cross functional teams inside your organization in links with consumers and pa raters.
Outperform area – Talent Shortfall: You need to have the right people (geek) at the right place (San Francisco). Thirdly and lastly, this movement needs to be fully initiate and supported by the CEO of the company.
Question 4:How did Arrival organize innovation differently from the traditional incremental innovators in the industry? The traditional industry implements slowly and in a step by step way innovations. Lat moves most on a reactive way against market evolution than on a proactive way.
The reasons were known: fear of change, fear of the unknown, fear of logrolling’s or fear to kill your “cask cows”. Herbal resolved potential constraints in using his “independent” R team, in direct link with the CEO, as a “pilot fish”.
This organizational the Group a phase ahead of product innovations and technological breakthroughs. Question 5:What direction should Bonnier take when developing Mage + further? The preliminary design process phase had been an intense experience focusing on the format and functionality.
Beyond that, the reading experience can be better integrated with social media partners or the revenue streams can be adapted (issue vs.. Subscription, Advertising, software cost, etc. ). Question 6:How should Mage + be positioned visa vi other products and services?
Firstly, Mage+ was not only a digital platform who translates an existing magazine into a digital one as other competitors; it gave a new customer experience and value proposition on both sides: content Cope digital platform” for publishers) & experience (via pad for readers).
Secondly, Mage+ gave the possibility for publishers to handle their own hosting. Thirdly, Mage* revenue model was based not only on a basic package but provided also additional services (technical/creative consulting, training, etc. ) on a “Mage+ care” bundle.
Question 7:Should some content from Mage + be free, and if so, how can that be addressed in the service design? As, the backbone Of the service design process is to understand the behavior of the customers, their needs and motivations, you need to record their behaviors with or without any revenue streams-A free offer doesn’t mean without any interactions with your consumers. Question 8: What should Bonnier focus on in its NEXT innovation project and why? The next focus is to find totally new types of digital business that create more revenue streams in order to compensate for the declining sales in traditional printed media.
That’s mean not only digitize existing products (digitizing the “cow paths”), but moreover to explore new species of prod cuts and services and be able to deliver them fast and in high quality.
For example, if Bonnier needs to create value for public shareholders. New researchers suggests that the stock market particularly values business models based on innovation and intellectual property (IP). IP gave additional stock value but also protect Bonnier (see Apple vs..
Samsung IP warier). Question 9:What would be a totally new type of business for Bonnier? A totally new type of business could be for example an “attractor” business models.
In this case, Bonnier needs to adapt his digital business model to attract people’s attention (readers)and then “sells” that attention (an intangible asset) to advertisers. As an attractor, Bonnier moderate significant effort to creating or distributing the assets that attract attention, but the revenue stream come from the advertisers who pay to deliver a message to the audience that is attracted. Question 10: What is an example of a company in the media industry (publishing music, entertainment) that has done this especially well? Who, how and why? On example is Apple Inc with the tunes music store.