Transformation in Action: Sourcebooks - Digital Book World 2016
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Transcript of Transformation in Action: Sourcebooks - Digital Book World 2016
Transformation in Action:Sourcebooks
Digital Book World 2016 Dominique Raccah, Publisher and CEO
4 sections
1. why transformation 2. transformation at Sourcebooks 3. critical ideas 4. some tools we use
transformation in the book industry
Online Distribution/Retail
Digital
Brick and Mortar Retail Online Retail
Form
at/C
onte
nt
digital transformation
eBooks Growth: 2008 – 2013
retail transformation
Online retail is still around
10% of retail $ in America
Shoppers’ Top Priorities
ü Spending as little as possible ü Feeling like I got a good deal ü Having a stress-free experience ü Doing all/most shopping in one place ü Completing my shopping quickly
Omni-Channel is shaping what’s important:
Average Number of Retailers in Shoppers’ Networks*
Shoppers Eliminate Retailers from Their Networks Streamlining, simplifying, and engaging in “retailer ra?onaliza?on”
Green: Total Retailer Portfolio; all retailers shopped in any given month
Blue: Core Retailer Portfolio; retailers shopped every month, at least once a month, on an ongoing basis
*Inclusive of visits to stores and online shopping Web sites
Source: Kantar Retail ShopperScape®, January–September 2007, 2013, 2014
Total
12.4 5.8
Core
10.7 5.0
Total Core Total Core
9.7 4.6
Online, Especially Prime, Resets Shopper Expectations Across Retail
Penetration of Amazon Prime Membership (among all U.S, primary household shoppers)
How Prime Membership Changes Shopping Patterns
(among all Prime Members)
Source: Kantar Retail ShopperScape®, December 2011–2014, Kantar Retail es?mates
Source: Kantar Retail ShopperScape®, December 2014
Today, book retailers are
working hard to buildout
their ecommerce
capabilities to compete with
Amazon
Book Publishing today is fundamentally a Red Ocean
And it’s only going to get more crowded
2. transformation at Sourcebooks
The Strategic Problem—need to add more value
Publishers
Retailers
Don’t compete with our retail partners
Creative Partners
Our Strategic Thinking: Creating New Kinds of Value Through Direct to Consumer in Every Vertical
Exclusive channels that provide more marketing mojo and increasing revenue in a crowded ecosystem
Publishers
Retailers
Readers
Don’t compete with our retail partners
Creative Partners
Using digital and ecommerce to add real value for authors and
retail partners in ways they can’t do for themselves
What’s drives transformation at Sourcebooks
From Sourcebooks new hire orientation
“
”
…nothing says 'transformation' more than revenue sources you didn’t used to have. —Mike Shatzkin, ideolog, Nov. 5, 2015
Sourcebooks Sales by Piece of Business 2015
Driving Innovation + Transformation in 4 ways
Physical books (units)
eBooks ($) Put Me In The Story ($)
Simple Truths ($)
Core business Direct to consumers/ eCommerce
creating new revenue streams for authors + partners
The #1 Personalized Books Site in
America
NEW revenue for bestselling books + licensed content partners
Put Me in the Story adds significant value
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0 10 20 30 40 50 60 70 80 90
PMITS % of Sales
PMITS % of Sales
AVERAGE 36%
On average Put Me in the Story adds
36% NEW units
3. transformation at Sourcebooks — how
4 critical ideas
1Defining strategic model
“”
innovation is
iteration Michael Cader BISG Making
Information Pay 2008
The Lean Startup Model
The experimental model we use…challenging to implement
this model makes you think about experimentation differently
And what’s critically important is that we rethink our whole
view on FAILURE
In this model: failure is an event. It’s about the facts.
It’s not about you.
Your goal is to…
a change in our frame
These were all things we believed would work…
These were all things we believed would work…
2Understanding the customer experience
“
”
You’ve got to start with the
customer experience and
work back toward the
technology—not the other way
around.
Steve Jobs
2. transformation: what? Look to what your customers are
already doing with your content and books. What are your authors
telling you about? What do they need?
Started by enhancing existing "customer experience
Marianne Richmond
Greg Lang
Started with app built to replicatewhat customers seemed to already be doing
Incredibly easy-to-use interface in the app…
The #1 Personalized Books Site in
America
Customer experience—Visualize the user and the
purpose
3Create the culture
“
”
…always tension between control and
innovation…transformation is about
cultural change within an organization
— John Ingram, Digital Book World March 2016
New Model
Mindset
How a transformation changes our work
4Data Data Data
Need more and better data, better processes, and more transparency around every
step in the publishing process
Innovation => the gritty stuff
4. transformation at Sourcebooks
the tools we use
All of the tools we use at Sourcebooks were organically created
The Tools We Use
Management Team Quarterly Offsite
SMART Outcomes (SMART Goals)
Bimonthly Breakthrough Meeting
Questions? Thoughts? Comments?
[email protected] @draccah