Sandler Techworks
Technology * Workflow * ROI
Media Survival
Categories: Business

BoSacks for circulated MediaPost commentary on Deloitte’s Center for the Edge report on emerging biz opportunities. Excerpts below.

“…Media, telecommunications and technology companies…are clinging to performance metrics which are no longer relevant to the new digital norm, says John Hagel, co-chairman of Deloitte’s Center for the Edge which explores emerging business opportunities.

[These] industries — like most of corporate America — have experienced a dramatic decline in return on assets (ROA) over the past 40 years despite major improvements in productivity…

New digital technology is being adopted five times faster than previous infrastructures, such as the railroads and telephone networks. But most of our institutions and metrics have failed to adjust to and reflect the change….

“Most media companies say they are audience-focused, but they are really product-focused. They need to pay more attention to what is relevant to individual consumers,” Hagel said.

Here are some of the ways media, telecommunications and technology companies can better position themselves for a new digital year:

*Try reverse mentoring. Integrate ideas of younger employees who represent the new generation consumer. They have a different set of values and practices using digital technology.

*Adopt new metrics such as Return on Attention. Targeting is imperative to give consumers what they want and need. They will spend more time with, pay more attention to, and spend more money on what is relevant. Those are the new metrics. Return on assets and other historical financial measurements are rapidly deteriorating.”

Posted by Kathy Sandler on Monday, December 7, 2009 at 12:01 AM

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