The New York Times is an example of an organization that seems to have been taking the right steps to transform itself and transition to a digital landscape. Unlike many incumbents who have been swept away by the tides of digital disruption, the New York Times has been gradually transforming itself for the past few years and now seems to be positioned firmly to compete in the digital world. Like other newspaper publishers, the organization had earlier faced losing its competitive positioning in the industry due to the disruption of the print newspaper business. However, by executing the right strategies in a timely fashion, the New York Times seems to not only have weathered the storm of digital disruption but has gained a competitive advantage over its rivals as a result of having built the right capabilities. This article highlights some of the observations and insights from the New York Times digital journey.
1. Staying Focused on Ones Core Competencies
In the wake of digital disruption, it has become quite common these days to hear about organizations reassessing their core competencies. While that is (and has been) a valid concern in a number of cases, it’s not always as bad it may seem. Although an organization’s business model may be subject to change (meaning how it meets customer requirements and deals with its suppliers and so on,) its core competencies don’t have to. In the New York Times’ example we see that the organization has continued to focus on its core competency of journalism and continues to produce quality reporting and analysis on a wide number of topics. This is evidenced by its continued strong subscription base and its repeated mention and high visibility in the news. Furthermore, many of its journalists continue to win Pulitzer Prizes.
Lesson Learned: Despite the pressure that your organization may face to transform itself including the push to reassess your business model, your digital journey doesn’t necessarily need to depart from your core competencies. You can instead leverage the power of digital technologies to boost your competencies to help you reach more customers in the digital landscape. So, instead of being reactive and starting to make major changes, it’s always advisable to take a hard look at how your competition and markets are changing and then taking the right transformation steps by staying focused on your competencies.
2. Identifying New Sources of Revenue
A review of the New York Times’ annual report makes it clear that digital advertising has now become one of the core revenue streams for the organization. With print advertising continuing to decline, the company was able to find an alternative source of revenue in the digital ecosystem. Incumbent organizations in other industries are pursuing similar strategies to expand their revenues onto multiple channels and platforms and finding new ways to generate online revenues.
Lesson Learned: When transforming to a digital world, businesses should look for alternate revenue opportunities in the digital landscape. Many traditional brick and mortar retailers for example are expanding their online presence onto multiple digital platforms rather than simply having a website. A number of them also employ omni channel strategies to provide their customers seamless and blended online and offline shopping experiences. Organizations therefore should take a hard look at their respective industries and look to create more opportunities in the digital realm to ensure that they are immune to any disruption to their core businesses.
3. Looking Inward to Identify Monetization Opportunities
As the organization started its journey toward digital, the New York Times decided to put its old archives from many decades earlier online and opened their access to its paid subscribers. This enabled the organization to increase the value of its overall products and services and gave more reasons to its subscriber base to visit its website.
Lesson Learned: With a little creativity, you can discover many such monetization opportunities in your own digital transformation journey. As was just mentioned, in this case, the New York Times was able to monetize even its old content. Finding new opportunities may not come easy and instead may require reimagining ones business model and imagining new usage scenarios in the digital world. With the advent of creative digital marketing and advertizing tools, many organizations are also pushing their products and services in markets that were not possible earlier hence increasing their revenues.
4. Exploring More Digital Technologies for Business Improvement
NYTimes.com has introduced visual storytelling by bringing enhanced and high quality digital videos to its user base giving them even more reasons to visit their online sites and also to stay on as loyal paid subscribers.
Lesson Learned: Depending on your business model, you should explore the use of various digital technologies to enhance your customers’ experiences. For example, many health institutions and organizations are using digital gadgets and wearables to track patient health, sophisticated apps are acting as tourist guides, robots are being used to stock inventories and updating an enterprise’s backend systems, etc. Again, a knowledge of the digital technology landscape along with understanding their business usage scenarios and cases can help organizations to offer better solutions to their customers and to blend better in the digital landscape.
5. Opening up Services to More Digital Access Channels
Subscribers of NYTimes.com continue to enjoy all digital services on a plethora of digital platforms including desktop, mobile handhelds and other mobile devices.
Lesson Learned: Investment in digital solutions that deliver enhanced user experiences on all devices can help toward a satisfied customer base. For example, many airlines such as Singapore Airlines offer their customers access to rich user experiences through Smartphone apps, iOS and Android tablets, Applewatch and other wearables. Some of these airlines also enable their users to enjoy their in-flight entertainment right on their own devices bringing a delightful experience to their customers who are more comfortable consuming media and content on their own devices rather than on the in-flight entertainment screens.
The above are only some of the returns that the New York Times has gained from its early investment in its digital transformation journey. We can see that a little creativity and innovation can help organizations to not only avoid being a victim of the digital disruption but instead get a competitive advantage in the digital marketplace.
To summarize, here are some of the lessons learned as you start or continue your digital transformation journey.
- Stay focused on your core competencies
- Look aggressively to identify alternate revenue opportunities in the new digital landscape.
- Assess whether you can leverage your existing offerings (products and services) to turn them as a success in the digital world.
- Explore the use of many digital technologies as a means to improve your customer experiences
- Ensure to offer your products and services to your customers through as many digital channels as possible.
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