Documente Academic
Documente Profesional
Documente Cultură
Effectiveness Innovation
Productivity/quality Innovation
improvement Revenue enhancement
Enhancement or expansion New business models
of existing capabilities and and capabilities
business models
Efficiency
Cost reduction and control
Lowering effort while improving output
Figure 1
companies and publishers need robust methods cloud platforms will continue to disrupt the media
of distributing and delivering content across landscape moving forward. (For more on this
a variety of platforms and experiences. These topic, read our white paper, Finding Your Place in
are capabilities that 15 years ago, most of these the New World of Communications, Digital Media
companies didnt have to worry about. and Entertainment, produced in collaboration
with the MIT Center for Digital Business.)
It is critical to After defining capabilities, the
next logical step is to look at how Phase 3: Current State Assessment
identify high-level to deliver value to customers. A With the rapid changes in content consumption,
business models business model describes the media and entertainment companies have often
that describe what rationale of how an organization implemented business processes and capabilities
creates, delivers and captures as Band-Aids, patches and extensions of legacy
your organization value. As part of the transforma- workflows. However, conducting a fully trans-
will deliver to your tion effort, it is critical to identify formational effort requires understanding of
customers, in what high-level business models that current-state business processes, at a high level.
describe what your organization This effort helps identify an organizations opera-
markets and in will deliver to your customers, in tional strengths and weaknesses, current-state
what ways. what markets and in what ways. landscape and value stream, to identify a starting
For example, with fragmented point for a meaningful business transformation.
digital distribution channels, studios, publishers,
music and content creators need to evaluate and The current-state assessment is necessary to
understand the dynamics of both subscription form a baseline for the future-state definition, as
and pay-to-own business models, such as Spotify well as gain an understanding of the critical pain
and iTunes, and how those models impact their points and improvement opportunities. Achieving
business operations, technologies and processes. a successful current-state assessment relies on
aligning the level of detail gathered within the
When embarking on a business transformation current state with the future-state objectives.
effort, it is crucial that business models and capa-
bilities align to ensure an organizations ability to Given the amount of change that most business
operate in an ever-changing business environ- transformation initiatives intend to implement,
ment. Forces such as globalization, the millennial gathering current-state information at a detailed
mindset, prosumers, business virtualization and level is typically time consuming and does not nec-
essarily serve the objectives of the future-state
Footnotes
1
John Horrigan, Broadband Adoption and Use in America, Federal Communications Commission,
OBI Working Paper Series, No. 1, February 2010, http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-
296442A1.pdf.
2
Richard Wray, Media Consumption on the Increase, The Guardian, April 18, 2010,
http://www.guardian.co.uk/business/2010/apr/19/media-consumption-survey.
3
State of the Media: The Social Media Report, Nielsen, 2012, http://blog.nielsen.com/nielsenwire/social/.
4
Market Focus Report: The Value of Mobile and Social for CRM, Nucleus Research, March 2012,
http://www.microsoft.com/presspass/itanalyst/docs/03-01-12CRM.PDF.
5
Shift to Digital by U.S. Entertainment and Media Industry Boosts M&A Activity,
PricewaterhouseCoopers, Jan. 27, 2011, http://www.pwc.com/us/en/press-releases/2011/entertainment-
and-media-industry.jhtml.
6
David Goldman, Musics Lost Decade: Sales Cut in Half, CNN Money, Feb. 3, 2010,
http://money.cnn.com/2010/02/02/news/companies/napster_music_industry/.
Bret Alexander is a Senior Consultant in Cognizant Business Consultings Information Media & Enter-
tainment Practice. Bret is a member of the Domain Process Sub-Practice within CBCs IME Practice
and specializes in strategic business transformation, process design and Agile development for studios,
broadcasters, publishers and music companies. Bret graduated from the University of Southern
California with degrees in business administration and the music industry. He can be reached at
Bret.Alexander@cognizant.com.
About Cognizant
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