It's evident that if you run a traditional media company, you need a new business model to survive and prosper into the next generation. While it's true that a significant number of traditional media companies will fail to make the turn, some will pull through and become the new leaders in media innovation.
It often takes radical thinking and actions to dislodge the old systems that once prospered. The challenge of dismantling the old and simultaneously setting up the new is excruciatingly difficult. It can also be exhilarating.
Any model you conceive at this point will include a digital component. I've spent most of my time over the past five years learning how to manage digital development—from engineering to programming to design. It's incredibly complex from the technology side trying to sort out the tools and programs you need. It's made much easier when you've thought through what the technology has to do. As a matter of fact, you have to start with the customer proposition first. Don't spend a dime on technology until you know what it has to do to satisfy customer's needs.
These are the process steps and framework for creating a new business model that I walk you through:
- Identify your customers and what they need done that you can do. It will be different from your existing model in both customer need and expectations of delivery.
- Run through pricing and volume scenarios. Create a break even analysis including fixed and variable costs.
- Identify the key resources and processes needed to deliver excellence.
- Identify what if any contribution your existing enterprise makes to the new model. Where does it create a drag?
- Draft a plan of implementation.
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