Tom Casey, Harry Hawkes, Raj Parande, Will Cotter
February 19, 2013
The media industry is evolving. As consumers increasingly turn to digital channels for their entertainment and information needs, new opportunities are emerging, in which companies with a strong Internet presence, such as Amazon, Apple, Hulu, and Netflix can offer on-demand capabilities. But these new, widely untapped market opportunities also pose a threat to traditional media companies’ operating models. The technologies and capabilities needed to compete today are significantly different from those that these companies have developed over time.
To learn more about the impact this transition is having on the industry, Strategy& conducted a study of leading media organizations. The study revealed that these companies are struggling to adapt their workflow, technology, and content management capabilities. They face a wide array of hardware and software choices, which include immature software options that aren’t integrated together, a lack of standards adopted by technology vendors, complex workflow processes that do not fit well with traditional operations, and old organizational and business models that lag behind the technology. Decision makers in the media industry are investing heavily to prepare for the transition they face, but they lack a road map that would show them how to enable their organizations to reap the full potential of these investments.
To bridge this gap, media companies should adopt a series of best practices. These practices often involve differentiation of some activities: for example, keeping technology platforms separated by content type to reduce complexity. At the same time, they often involve integration of other activities: installing a common software backbone, streamlining workflow, and creating new governance and oversight processes to manage decisions about that workflow. These practices, and others, will enable business leaders to achieve their near-term objectives while creating a flexible infrastructure that can adapt to market demands.
The media industry is in a period of dramatic change, and that change will continue at a rapid pace. Consumers’ preferences for accessing content continue to evolve, and the number of platforms available to them continues to grow. Business leaders must adapt to this new media environment by making smarter investments in technology and maximizing workflow efficiencies. Reacting to the changes without a cohesive, holistic strategy and clinging to outdated business models can result in lost market opportunity. Adopting these seven best practices will help your company avoid such pitfalls, realize the full potential of your investments, and build a technology foundation that is flexible and reliable enough to meet today’s ever-shifting market demands.