“Transformation in the Digital World”: that was the headline for this past week's SIIA Information Industry Summit, an annual event that I always look forward to, both to reconnect with industry folk as well as to hear the issues of the day. Fundamentally, the themes don't change: what opportunities and threats are being created by new technologies; what impact might they have on the industry's economic models; who are likely to be the winners and losers; is it a good time to buy/invest or sell/divest? You can always count on hearing lots of relevant questions, and even more answers, or shall we say, perspectives. Many of these questions I will leave for a different day, but one theme that threads these questions together was captured by an anecdote earlier in the week. I had the opportunity to dine with an industry group that included senior executives from Google, Dow Jones, Fox Interactive and Time Warner, among others. There was a bit of a round robin, where these executives were asked to speak briefly on any industry topic that they had on their mind. Gordon Crovitz, former publisher of the Wall Street Journal, fresh off his colorful experience in seeing his employer be gobbled up by NewsCorp, spoke about how traditional media companies and their response to technological change reminded him of a time when his son was an infant sitting on the beach. As the little guy watched wave after wave hitting pounding the shore, all he could do in his frustrated state was pick up fistfuls of sand and throw it back in the water. He did this for a half hour until he tired. The image lends itself to how many traditional information and content companies initially failed (and, some would say, continue to fail) to respond to changes in consumer behavior and the role of enabling technology. The ongoing debate of whether content or distribution is king is beside the point. The reality is the consumer, of course, is king. This is the first tenet in Google's approach to product innovation, as described by David Eun, Vice President of Content Partnerships: - focus on the user;
- build a solution bottoms-up; and
- launch quickly and iterate
Many of the larger, more entrenched information providers have relied too much on their sales and distribution capability and less so on how to evolve along with their clients' workflow. You can call it the 'walled garden' approach, when really, the mode should be one of customer-focused 'perpetual beta', as of the attendees noted. In the same vein, an entrepreneurial company with enabling technology that does not enhance the user experience and somehow integrate with workflow will struggle to maintain momentum and ultimately dissipate. The lesson seems to be as clear as the waves from the ocean: keep your finger on the pulse, or else you may soon be reaching for sand. |
