Traditional media organisations are struggling to survive in an environment in which digital platforms are more pervasive channels for distributing content. The financial losses of the Guardian and the Observer are examples of the hard times more traditional companies are facing.
The better answer for this challenge is more about business innovation. Digital technology is here to stay. The only ones which will survive and be about changing the game are the ones that are incorporating digital technology. However, technology alone is not the answer. It is the opposite: investing in technology without a clear business model means just losing more money. Organisations need to develop integrated strategies, in which business models are supported by technology and vice-versa.
A new report from Accenture confirms this perspective. In the report Accenture’s 2013 Communications, Media and High-Tech Predictions, the consultancy firm explores the main trends media companies are to face next year. The emphasis that the report puts on three pillars has especially called my attention : business models, operating models, and user-generated content (the contributions consumers may give through generating content).
I have talked to Charlie Marshall, senior manager for Media and Entertainment at Accenture, to explore more details on these three aspects. It is clear that media companies need to have an innovative attitude which brings together new business models (how to monetise the value created by the company), new ways of operating (which should fit the business models, delivering agility and flexibility), and new ways of engaging the audience in the production of content.
This approach is interesting because it goes further than the more known model of alignment which considers only technology and business. In other words, Accenture puts customers in the process of innovation, taking into consideration the contributions the audience (as consumers) may give to innovate the business platforms. Interesting, this approach is helpful not only to understand how traditional media companies may reinvent themselves, but also to explore how new media platforms may increase their chances of succeeding. It is never enough to remember the success of Huffington Post.
You can read more on the interview with Charlie Marshall on the digital industry hub New Media Knowledge. The NMK is a community-based service, sponsored by Westminster Business School. On this website, you will find relevant content on digital industries, a contribution of WBS to practitioners in digital industries. Have a look at NMK content, and if you wish to contribute to the debate, drop me a line to discuss the topic.
Magda Hercheui
Senior Lecturer in Project Management and Information Systems, and editor of New Media Knowledge. Researcher on social media.
