A three layer model for media organisations

As you know, I spend an excessive amount of time trying to describe how Digital Economy businesses are different from Industrial Economy ones. A structure I've tried out recently is the one shown in the picture below, which is intended for a TV/ filmed entertainment company.

The idea is that the business can be abstracted into three layers:

A Presentation Layer, that enables their products/ service/ content to be accessed/ used/ consumed;
A Monetisation Layer that enables assets to be... well, monetised through the presentation layer; and
An Asset Layer that describes the explicit and implicit assets of the business

On the left side of the diagram are the traditional controlled and ordered layers of the Industrial Economy. On the right is the often unknown and anarchic world of the Digital. I think it's quite fun to play with, which you do by picking one square on the left and imagining how the squares on the right would change how your business operates and competes.

And of course the beauty of it is that you can add more squares as new technologies and trends emerge. Hope it's interesting. I'm going to continue to play with it, as ever!

Comments

Impacts of a handset leasing model on mobile telcos

Following yesterday's post, here's some related thinking on the impacts on operators of handset leasing. Handset sales represent around 25% of operator revenues in a typical European market, but generate only around 5% of margin. It may therefore be the case that the scenario described would lead operators to a more profitable structural model than exists today. Oil companies are consistently and acceptably profitable, despite being (literally in some cases) the ‘dumb pipe’ that operators are so desperate to avoid becoming. One of the reasons for the oil majors sustained profitability is clear focus on their role in the value chain – to supply the fuel that enables transportation, relying primarily on location, then brand and finally product innovation to compete. BP or Shell do not need to subsidise the purchase of a car in order to drive consumption of fuel because consumers are ‘hooked’ on it (it gets them from place to place) and there are many credible car manufacturers an...

Differences between Industrial and Digital businesses

Since I'm stuck on a Eurostar crawling through western France I thought I'd use the downtime to share this table I've made on the differences between Industrial and Digital companies across the main business functions. A strange insight into how my mind works... but hopeful a useful summary!

Value drivers for telecoms retail

I've been doing a really large number of driver trees recently - we've taken to using them on every project to get really into the guts of value creation for businesses and thus decide where to focus initiative development (How To Win, if you're keeping score). Anyhow, I had to pause for thought recently to work out how to represent the subscription aspect of telecoms retail for a client. Since it took me a minute, I thought I'd share... its lack of elegance suggests that its not quite right, although it was enough to demonstrate that there was a certain lack of coverage in the initiatives that my client was pursuing and thus spark a debate. Enjoy.

Versatile Amphibian

Search This Blog