MIT-fit-for-the-future-final

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Foreword If you showed a publisher or broadcaster from twenty years ago today’s media market, to say they’d be shocked would be an understatement. 2 COGNIZANT September 2012 If you took a publisher or a broadcaster from twenty years ago and dropped them into today’s media environment, it would be an understatement to say they’d be shocked by how the market has changed. While on the surface there are many continuities, look a little deeper and the channels, revenue models, technologies, partners, behaviours and platforms have shifted to become totally and unexpectedly different. The world’s biggest bookseller is also a publisher… and sells everything from shoes and groceries to business IT services. And yet it is only just getting around to opening its first brick-and-mortar store. A company known for making PCs is now the world’s biggest music and video seller. Its catalogue includes 28 million songs and millions of films and TV shows, but there’s not a single CD or DVD on its shelves. The video game industry is forecast to hit revenue of $70 billion by 2015 1 , bringing it almost on a par with the book trade’s current revenue 2 — in-game advertising will add $2.67 billion to that by 2017, plus more for in-game purchases and cross-media tie-ins. Game publisher Valve is even employing professional economists to manage the growth of its “virtual economies”. 3 If you run a media business — publishing house, film studio, newspaper, music label, TV station, distributor or retailer — how do you respond to such large-scale disruption? That’s the question we set out to answer. This paper is a summary of rigorous in-depth research conducted by Gregory Gimpel and George Westerman at MIT’s Center for Digital Business in collaboration with Cognizant’s Information, Media and Entertainment consultants. In the following pages we outline seven strategic principles that organisations like yours can follow to get “fit for the future”: making brave and often counterintuitive choices to navigate successfully through the dramatic changes that are reshaping your industry. We hope that it gives you some food for thought. If you’d like to discuss how what we’ve learnt can be applied to your business, speak to your Cognizant consultant or get in touch with us direct — you’ll find our contact details at the back of this paper.
Contents 4. Step 1: Scan for change 8. Step 2: Disrupt yourself 9. Step 3: Co-opt threats 10. Step 4: Find your secret weapon 11. Step 5: Focus on your core value 13. Step 6: Build virtual value networks 14. Step 7: Plan for platforms 17. Are you ready for change? September 2012 COGNIZANT steps to success 3
Page 1: In association with Fit for the Fut
Page 5 and 6: Globalisation Thanks to advances in
Page 7 and 8: The real disruption is that platfor
Page 9 and 10: Step 3: Co-opt threats You can’t
Page 11 and 12: Leverage VRIN to grow your business
Page 13 and 14: Step 6: Build virtual value network
Page 15 and 16: Alternatively, you can create or sp
Page 17 and 18: Building demand To take users away
Page 19 and 20: About Cognizant Cognizant knows you

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