Imacs 2016 imecs 2016 Proceedings (Preliminary version) of the 4


INNOVATIONS IN PUBLISHING IN THE PERIOD OF DIGITALIZATION



Download 2.73 Mb.
Page13/62
Date20.10.2016
Size2.73 Mb.
#5106
1   ...   9   10   11   12   13   14   15   16   ...   62

INNOVATIONS IN PUBLISHING IN THE PERIOD OF DIGITALIZATION

74.Dana Dvořáková



Abstract

The present paper deals with contemporary changes in the world of entrepreneurship and economics. It explains the difference between the traditional and current cognizance of the innovation process and the related necessity of innovation of the entire business model. It is particularly focused on the field of publishing practice where the explicit phenomenon is at present digitalization. An analysis is presented of the facilities available in our country and on a global scale and summarizes and presents comments on contemporary trends in the sphere of media.

The paper includes a case study of a publishing house which within the scope of the innovation of its business model introduced on the market in addition to a well-established print journal also its tablet version. On the basis of a questionnaire distributed among readers the paper presents the results of the survey which identifies reserves and shows the specific character of digital publishing.

The definition and addressing of the target group of readers and focusing of marketing activities is a very significant factor. Another significant factor of success is besides the high-quality content also a guarantee of the optimum technical parameters of the journal related with the size of files and adaptation of the content to individual types of reading devices (tablet vs. smartphone). A frequent mistake is an excessive volume of data in a single edition which can discourage a lot of readers from downloading the file and subsequently reading it. Owing to the different display of the journal on a tablet, smartphone and desktop, the production of a tablet journal must count with and invest in three different output versions optimized for individual devices. In conclusion the paper summarizes the advantages and disadvantages of digital publishing.


Key words: Innovation, business model, print journal, digitalization, publishing.

75.Introduction


The world as we know it is aproaching its end. During the last few years we are faced with the most rapid and most extensive changes of production, consumption, values and of the behaviour of individuals, groups and nations. Hitherto unprecedented changes have appeared and the transformation of real economy is in progress – digitalization, automation, removal of interfaces, individualization, recycling, etc.

Standards which were valid only a few years ago are not topical any more. If now firms want to be successful, they must take interest in contemporary trends and adequately respond to them, they must transform their business and react to the requirements of today´s customers. In the present era of entrepreneurship, the development of entrepreneurial thinking has a paramount priority (Zelený, 2016).


1 Innovation and business model


One of the most significant prerequisites of the transformation of the global business is the discovery of opportunities and innovation of business models (IPA Slovakia).

At present innovations are an item which is very often spoken and written about. Traditionally the innovation process was understood as an improvement of existing or new products and production processes. Inventiveness, however, will become an innovation only under the assumption that the product will be bought by the customer. Thus the customer is the Alpha and Omega of every innovation process. Thanks to globalization the global market is full of innovators from all over the world and this leads to a rapid increase of competitiveness namely in the sphere of innovations. A new trend has appeared when instead of partial innovations of goods or services the entire business model is innovated and its ultimate quality affects the final acceptance or rejection of the offer (Zelený, 2016).

“Innovations are developed on a higher level than that of a product, service or company process. They are created on the level of the business system. New business models frequently utilize completely new technical solutions, materials, they create new supplier networks and communities of customers.“ (Košturiak, 2016).

A business model includes customers, provided value, infrastructure delivery value, relations with customers, key activities and resources, key parameters, generation of the revenue and structure of costs (Osterwalder, 2013). Together the above nine blocks form a complete business model. Hence the creation of a model is not the domain of an engineer or an improvement proposal without any direct contact with the customer but a new professional field in the entrepreneurial system. A fundamental change has occurred in the world of innovations (Zelený, 2016). The influence of the main transformation trends on current business models is summarized in Fig. 1.



Fig.1 – Fundamental changes in business models



Source: Košturiak, 2016

“Competition today no longer means competition between products and services. The real challenge is a business concept design; designing entirely new business models.” (Gary Hamel, in Design)” (Landa, 2015).


76.2 Sphere of publishing and digitalization in the 21st century


The issue of innovations and the related changes of business models concern all fields ranging across economics including the sphere of publishing on which this paper focuses. The global contemporary phenomenon also in this sphere is digitalization. Digitalization of media represents:”Introduction of digital technologies into mass communication processes into the production and processing of the media product and its multiplication and mass distribution” (Osvaldová, 2002).

A number of publishing houses in the present period of digitalization and gradual transfer from print media to on-line versions are faced with the problem how to change the existing business model, how to adjust their business in order to be able to keep pace with global trends and simultaneously to develop their business.

These issues are dealt with at numerous international conferences and meetings of publishers and representatives of the academic sphere who are intensively engaged in these issues. Let us mention e.g. the Digital Innovators Summit organized at the end of March 2016 in Berlin. About 60 representatives of most significant publishing houses and scientists from all over the world shared their experience in a 2-day marathon of lectures and presentations with approximately 600 registered delegates from 35 countries from Europe, America and Asia.

The explicit message from this event is that at the beginning of the 21st century digitalization is very much active in global media. The greatest world publishing houses like e.g. Hearst Magazines Int., Times, Axel Springer, Burda, The Media Trust, National Geographic are successfully engaged in business and profit from the innovated business model in relation with digital publishing, operating on a global market exceeding the national borders of countries, interconnecting the printed form with the web, sharing parts of the content of their titles and the active utilization of various social networks focused on a selected group of readers. The publishing houses impose high requirements on the quality of the content intended for global receivers, optimum graphics in individual smart devices, accessibility of the digital content 24hours every day and on sensitive positioning of correctly selected advertisements in the right place.

The revolutionary changes in global media were made possible due to accessibility of the internet and a rapid increase of the availability of electronic facilities. In the next section of this chapter we will deal with the analysis of statistics reflecting these facts including changes in the preferences of consumers of media in the Czech Republic and abroad.

2.1 Accessibility of the internet


Approximately 40% of the world population have daily access to the internet and the number of internet users rose between 1999 and 2013 tenfold. China, a country with the highest number of users (642 mio in 2014), represents 22% of the total number of users and has more users than e.g the USA, India and Japan together. In the USA, Germany, France, Great Britain and Canada 80% of the population can be connected to the internet (FIPP World Magazine Trends 2014/2015).

In the Czech Republic 73% of the population in 2015 had access to the internet, which corresponds to 3.1 million households. This is 1 million more than five years ago (Czech Statistical Office).


2.2 Equipment with electronic devices


In 2010 the company Apple introduced its first iPad tablet on the market. In three years tablets completely changed the world of personal computers. Besides iPads with an iOS operating system, tablets with the Android operating system supplied by more producers (e.g. Samsung, LG, Acer, Lenovo, Google, and Sony) are increasingly winning recognition. And in 2012 also Microsoft introduced its operating system Windows 8 on the market.

Statistics monitoring the global sales of tablets and smartphones indicate a rapid growth of the number of these electronic devices. In 2011 about 500 mllion smartphones were sold, whilst in 2015 it was nearly 1.5 billion pieces. In 2019, according to estimates, approximately 239 million tablets should be sold worldwide (Das Statistik- Portal).

The trend of a rapid increase of the popularity of tablets and other reading devices can also be observed in the Czech Republic as can be seen in Fig. 2. Approximately 50% of the population have either a smartphone, tablet or a reading device. Most popular are smartphones which are owned by 43% of the population. The popularity of tablets grows year after year. Two years ago only 9% of the population used them, two years later they were used by 24% of the population and the number of users grows continually very rapidly (Media Project).

Fig. 2 – Equipment of Czechs with reading devices (souhrnný ukazatel =summarizing parameter, čtečka = reading device)



Source: Media Project, 2+3Q/2015, Union of Publishers, Median, Stem/Mark

2.3 Comparison of consumption of classical and on-line media


In relation with trends of spreading digital equipment among consumers of media communications, their user customs and practice obviously also change. According to a study by GlobalWebindex at present more time is devoted to reading digital media than classical ones (Mediaguru).

The growing trend of on-line media is most apparent in the United Arab Emirates and in China, where digital media represent more than 6 hours of the daily consumption of media. Classical media (TV, radio, press) remain to be the main source of media observation in advanced European countries (The Netherlands, Germany, Breat Britain) and also in the USA. Altogether 31 countries were included in the study. In 23 of them the time devoted to on-line media is higher than that devoted to classical media (Mediaguru).

From the above it is explicitly apparent that not only in the Czech Republic but on a global scale the interest in electronic equipment grows. And this is directly related with the popularity of the use of such equipment for the consumption of media and reception of topical information.

77.3 Changes in the forms of publishing


Publishers see in digital publishing on tablets and/or smartphones a great potential or means how to apply experience from classical media and transfer it into the world of on-line information. In contrast with webs, tablets are appropriate for publishing texts arranged similarly as in journals which have their layout and information well-arranged in pages. A doubtless advantage of tablet journals is their potential interactivity, i.e. inclusion of videos and audio records, pop-up bars, multimedia graphics, photogalleries etc. which make such a journal more attractive and user friendly compared with the printed version.

Most publishers continue to publish their printed titles and simultaneously offer a web version of the printed journal completed with pictures and videos and/or a tablet journal.

This is also testified by the results of research performed by Media Project in the Czech Republic in Q3/2013 on a sample of 4925 respondents with access to the internet. According to these results the questioned readers favour extended versions of titles on the web as an alternative to an electronic platform. The study indicates the following key benefits of the electronic versions compared with printed ones: greater accessibility of electronic versions, easier access, appropriate price, possibility of viewing, interconnection with other media and their sharing. An important advantange is also electronic archiving.

The research also presents factors of the longtime orientation of readers on print media, among them routine and “delight“ in reading from paper, unwillingness to pay for information from the internet and human inclination to laziness, i.e. reluctance to consider transfer to an electronic print platform (Media Project).


78.4 Trends in publishing in the 21st century


Concerning trends in media in the forthcoming period in view of what has been presented above they can be summarized as follows:

  • Print media are interconnected with the internet - so-called convergence or distribution of identical content by various channels (Čuřík, 2012).

  • Digital infomation are employed. In consequence the receivers of medial communication have immediate access to a vast amount of information and it only depends on them which field and which form they will prefer.

  • Digital publication which is related with the above makes it possible to bring information to owners of smartphones, tablets and desktops in an absolutely new way.

  • New tablet journals only in the on-line version are established. In our country, e.g. Tablet Media (weekly periodical “Dotyk“ (touch) and“Dotyk Byznys“ (Touch business)) and Optio (musical monthly Headliner) are specialized in publishing tablet journals.

  • The number of readers and popularity of digital journals grows. This is related with the growing interest in presentations of firms, growing revenue from digital advertisements and charges for downloading journals. The revenue from the publishing of digital journals showed the fastest growth. The total revenue from digital journals will reach USD5.2bn in 2016. Owing to the fact that publishing houses appear to find a higher potential in the transfer from free-of-charge to payed access to digital journals, the revenue from digital journals will increase from 4% of the total revenue from journals in 2013 to 11% in 2016 (FIPP World Magazine Trends 2014/2015).

  • Attempts have appeared to influence media by politicians and by the sphere of business and the related effort to connect political power with the ownership and control of significant media companies in the Czech Republic (e.g. A. Babiš, owner of the Mafra publishing house and Radio Impulse) and abroad, (e.g. S. Berlusconi, owner of Mediaset).

  • The user routines of receivers of media communication are changing. Mobile phones are mostly used in the morning. During the day PCs dominate, whilst in the evening, approx. between 19:00 and 23:00 hours, tablets are used most frequently (Tablet Media).

It must be mentioned that digitalization has its limits and that it depends on the particular experience and priority of the given publishing house. As an example let us mention the experience of the US weekly Newsweek. The print version of the journal ended after 79 years in 2012 and was replaced exclusively with a digital version. Subsequently this step was not evaluated as optimal and since 2014 the publishing house decided to return to the print version. The print version started to be published from the automn of 2015 also in Czech.

79.5 Case study of MM Publishing, Co.Ltd.


In the next chapter an example will be shown of the change of the business model of a selected publishing house which, in response to global trends, decided newly to include in its portfolio the digital version of its journal.

5.1 Introduction of the publishing house


MM publishing, Co.Ltd. Publishes a technical monthly journal specialized in mechanical engineering MM Průmyslové spektrum (MM Industrial Spectrum) (www.mmspektrum.com) in the Czech Republic since 1997. It primarily provides information on current domestic and international trends in specific sectors of the field. The journal is intended for middle and higher company management, designers, technologists, importers and exporters, personnel in research and development, and the staff of universities and secondary technical schools. The publishing house also publishes a scientific journal “MM Science Journal” in English and a number of professional technical publications.

5.2 Reasons for digital publishing of the MM Tablet version


The management of the publishing house decided to follow global trends and started publishing an on-line version for tablets and smartphones for iOS and Android operating systems. MM Tablet publishes most interesting information from print issues supplemented by unpublished photo material and videos, which represents a new dimension and an interactive level. Available are also special articles, reports and information only for the tablet version. Download is free-of-charge.

This change was accompanied by very high costs for the purchase of new software and licences for publishing, education of staff, graphic works, and marketing and expert consultancy services. The first issue of the tablet version of MM was released in March 2014 and there were five further issues the same year.

The publishing house found this change of the business model to be very strategic and with a big potential in the future. It was anticipated that this innovation could be very attractive to readers and could also have a commercial effect. This meant that firms interested in being presented in this way were to be addressed.

5.3 Survey using a questionnaire


A year after the start of digital publishing the publishing house performed a survey of the satisfaction and popularity among target readers since the number of downloads unfortunately did not correspond with the expectations of the publishing house. Over 60 respondents were selected and addressed from the professional and general public. 85% were men and 15% women, which corresponds with the fact that the journal is devoted to technology and men prevail in this field. The age of the respondents was in the range from 18 to 55 years. Most of the respondents work in the field of mechanical engineering. Approximately 22% of the addressed persons filled in the questionnaire. Another 20% of the respondents informed the publishing house that either technical conditions or restrictions from their management prevented them from downloading the tablet journal.

The survey was orientated on a particular edition No. 6/2014 – and further on preferences in the consumption of digital journals, equipment with digital devices and use of a particular operating system.

The results of the survey can be summarized as follows:


  • Respondents liked animated titles and the introductory parts of articles. However they require minimum pauses during the onset of individual elements of the animations (they critisized longer time periods).

  • Respondents are not interested in the graphic format of the journal (e.g. in a PDF file format) and neither in the flip digital version of the printed journal.

  • Operation with the journal is considered by the respondents to be simple and user comfortable. A simpler user environment is not required.

  • Respondents amuse themselves by finding hidden windows, looking at photogalleries, uncovering puzzles and other interactive elements.

  • The structure of the journal was found to be well-arranged, a single-column arrangement of pages is preferred.

  • The respondents could not agree on the favoured form of the display of titles (horizontal vs. vertical)

  • The shortest size of a file (max. 120MB) is unambiguously most favoured. Downloading of bigger files is problematic (capacity of the hard disc, time consuming...)

  • Respondents most of all read the journal on a 9´´ or bigger tablet.

  • Use of the operating systems iOS and Android is roughly equal.

  • Respondents generally agree that they are interested in the commercial presentations of firms. In this category they favour static graphics without animation.

  • Bad legibility on mobile phones was critisized and also the fact that some data could not be magnified.

5.4 Analysis and conclusions of research results


Wit respect to the above the publishing house decided to adopt certain measures. Cooperation was established with an external firm Optio CZ which has longtime experience with the creation of digital journals. The following most significant changes were made:

  • The size of individual editions was reduced from the original approx. 180MB to approx. 120MB.

  • Newly the journal was offered besides for operating systems iOS and Android also for Windows. The journal can be read not only on a tablet and smartphone but also on a desktop.

  • Instead of only one version of the journal for all types of devices, three different versions, one for tablets, one for smatphones and one for desktops were created. Each type of device has different requirements on graphics and on its operation.

The above measures were a bound forward for the tablet journal. At present the publishing house is busy with marketing in an effort to increase the awareness of the journal and the interest of the public.

From the above it follows that in the creation of a digitial journal, besides a high-quality content which is the fundamental prerequisite of success, the following aspects play a significan role:



  • Technical parameters of the journal – final size of the file (a large file can can discourage from downloading and reading), respect for the differences and possiblities of displaying on individual devices on which the journal is read (tablet*smartphone*desktop).

  • Correctly targeted marketing which defines and addresses new readers and is simultaneously aimed at downloading and “loyalty“ to the title (in this respect a significant instrument is functional notification (advice) of the new edition of the journal automatically displayed on the device which previously downloaded the application).

80.6 Advantages and disadvantages of digital publishing – view from experience


Digital publishing experiences a great boom and at present is obviously one of the paramount trends in the sphere of media. Summarized below are the advantages and disadvantages of the transfer from the print to the digital version of a journal for tablets and smartphones from the aspect of the publisher. Their definition reflects the practical experience of the publishing house MM Publishing in the publishing of its tablet journal MM Science Journal.

6.1 Advantages


  1. The design of the tablet journal is similar to that of the print journal. It maintains its advantages concerning the layout, arrangement in pages, clear arrangement. In addition it permits inclusion of attractive interactive elements such as animation, photogalleries, videos, multimedia graphics, etc.

  2. It enables the journal to address and communicate with readers, to give them advice of new editions, to gain operatively feedback in the form of a questionnaire or to contact the publishing house with a single click by e-mail.

  3. Costs pertaining to printing, distribution and for searching distribution channels, which represent the highest item in the publishing of print media, are eliminated.

  4. A journal published digitally can be corrected retroactively e.g. if the date of the advised events was changed, this can be simply corrected.

  5. The number of users of smartphones and tablets grows which in turn increases the potential of the family of readers.

  6. Presentations of firms – advertisments can be published by applying interactive methods, e.g. by inserting a video with the offered product. This increases the interest of firms in such presentations and the earnings of the publishing house from mobile advertising.

  7. Statistics can be monitored of the interest in particular articles, the number of downloads of the journal, number of clicks etc., and thus to obtain immediate feedback on the interest of readers.

6.2 Disadvantages


  1. An optimum graphics programme must be selected for the production of the digital version of the journal. Many of them are available on the market (DPS, Tribo, CoverPage) and each of them has its own advantages and disadvantages.

  2. It is important to count with high initial costs (leasing of the graphics programme, training of graphic designers and gaining enough initial capital).

  3. Further capital is necessary for public publishing and downloading (volume of data).

  4. After regular upgrading of operating systems they are subject to some instability.

  5. An optimum user comfort must be guaranteed and different variants prepared for tablets, smartphones and desktops. Simultaneously the different possibility of displaying which each type of device can offer must be considered.

  6. The operation of the medium must be guaranteed on all platforms, i.e. Android, iOS and Windows in order to enable all users of smart devices to have access to the published information.

81.Conclusion


The present period is characterized by great changes including the world of media. On-line media have become a current component of the media landscape. This is an unambiguously positive signal to receivers of media communication because the ways how to gain access to necessary information are continuously improved and accelarated. It depends only on them what type of information they favour and in which form they will receive them. If publishers and media companies want to be successful they must adapt themselves to this situation and be abreast with global trends.

“Technology, product, content, data, advertising and distribution are inseparable... We need to be in control of the whole experience.“ (Duncan, 2016).

Particular information presented in this introductory study serve as a basis for further research in the field of digital media, preferences of readers and related changes of business models of publishers.

82.References


IPA Slovakia, [ONLINE] Available at: http://www.ipaslovakia.sk/sk/tlac-a-media/aktualne-vzdelavanie/novy-svet-podnikania-vsetko-bude-inak

Zelený, M. (2016). Mysleme globálně, jednejme lokálně. Transformační trendy. MM Průmyslové spektrum, 1- 2/2016, s. 18, 19. ISSN 1212-2572

Košturiak, J. (2016). Innovation Business Model. Handwritting, s. 11.

Ostervalder, A. & Pigneur, E. Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley and Sons, 2013.

Landa, O. Business Model Innovation. IMACS 2015, University of Economics in Prague

Osvaldová, B. & Halada, J. Praktická encyklopedie žurnalistiky. Praha: Libri, 2002, s. 46. ISBN 80-7277-108-6.

Media Projekt, 2+3Q/2015, Unie vydavatelů, Median, Stem/Mark, [ONLINE] Available at: http://www.unievydavatelu.cz/gallery/files/MP_3-4-2015-Prezentace_v13.pdf

Tablet Media, [ONLINE] Available at: http://www.tabletmedia.cz

Das Statistik-Portal, [ONLINE] Available at: http://de.statista.com/statistik/daten/studie/256337/umfrage/prognose-zum-weltweiten-absatz-von-tablets-pcs-und-smartphones/)

FIPP World Magazine Trends 2014/2015, s. 5, [ONLINE] Available at: http://fipp.s3.amazonaws.com/media/documents/91a87ca4-dd22-465c-b9b1-96d497d3e3eb.pdf Český statistický úřad, [ONLINE] Available at: http://www.czso.cz/csu/tz.nsf/i/temer_tri_ctvrtiny_cechu_jsou_online_20141202

Stemmark, [ONLINE] Available at: http://www.stemmark.cz/prints-not-dead-aneb-tisk-v-konfrontaci-s-novymi-medii-obstal/ Mediaguru, [ONLINE] Available at: http://www.mediaguru.cz/2013/03/online-media-uz-predbehla-v-konzumaci-klasicka-media/#.VK-PJxZVTfZ

Čuřík, J. (2012). Nové trendy v médiích I: Online a tištěná media. 1. Vyd. Brno: Masarykova univerzita, 2012. 240 s. ISBN 978 -80 -210 -5825 -5.

Duncan, E. (2016). Digital Innovator`s Summit, 21. - 22. 3. 2016, Berlin (paper).
Contact

Dana Dvořáková

University of Economics in Prague

Faculty of Business Administration, Department of Entrepreneurship

W. Churchill Sq. 4

130 67 Prague 3

E-mail: dana.dvorakova.fph@vse.cz



Download 2.73 Mb.

Share with your friends:
1   ...   9   10   11   12   13   14   15   16   ...   62



The database is protected by copyright ©ininet.org 2024
send message
    Main page
educational programs
capital structure
innovative development
strategic planning