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Dual Transformation A Work in Progress March 21, 2017 Chris Lee, Global President, DDM [email protected], @cleepost

Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM [email protected] , @cleepost

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Page 1: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

Dual Transformation A Work in Progress

March 21, 2017

Chris Lee, Global President, DDM [email protected], @cleepost

Page 2: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

1. In 2010, DDM created, with DeseretNews.com and KSL.com separated from legacy organizations.

2. In 2017, Deseret News print journalists have been brought under digital management, with print production team separated. Digital sales remains separate.

3. KSL.com remains separate, as both digital and broadcast have strong “transformations” in progress

An Update on DDM

Page 3: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Refresh on “Dual Transformation”

Page 4: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

Established Business

Disruptive Business

Net New Growth

Starts Outside Established Business

Displacement

"Overall, the newspaper industry's involvement with the Internet has been one where it had a lot to lose and it's been trying not to lose it, as opposed to starting from scratch and having a lot to win." --President of Online Newspaper Division

Finding New Market Growth

Page 5: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Dual Transformation

Legacy Organization

Separate Disruptive

Organization

•Dramatically Lower Costs in the Core

•Reposition Core around a Post-disruption “Job-to-be-done”

•Create a Separate P&L

•Separate Management Structure

•Hire Disruptive DNA

Transformation A Transformation B

“Capabilities Exchange”

between Legacy Core and

Disruptive New

Page 6: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

A Rough Picture of the Lifecycle of Disruption

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

13000

14000

15000

1965 1975 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001

Source: ITI, Industry Statistics Programs; U.S. Microcomputer Statistics Committee Forecast, Data Analysis Group

Mainframe Computer Market

Minicomputer Market

First Revenue Lead

Sustained Revenue Lead

Minicomputers Disrupt Mainframes

Dollars ($millions)

Phase I Phase II Phase III

Page 7: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Page 8: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

PC Shipments 2015-2020 forecast -1.6% CAGR

Page 9: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Page 10: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Page 11: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Newspapers: Familiar Pattern of Disruption

-8% annual decline 2013-2016 -9.8% forecast through 2020

Page 12: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

1. How much “Transformation A” is left in newspapers? (Are newspapers more like PC’s with a sustainable market long term, or like film cameras with a clear end date?) 2. What about for broadcasters?

Are we more like Kodak or Dell (or Apple)?

Page 13: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Projected 75% by 2020

Page 14: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

The Mobile Duopoly

Page 15: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Source: WSJ Live 2017 Outlook

Page 16: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Page 17: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Page 18: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

DDM Digital Sales Organization • Inside Sales (SMB) • Enterprise Sales • Cars team • Jobs team • Ad performance and operations team • Pre/mid/post campaign optimization and reporting • Performance account managers partner with enterprise

sales

client data

Page 19: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

DDM Data Analytics Organization • VP level leadership

• Data analysts • Project managers • Software developers assigned as dedicated • Creates and enforces data taxonomies and

standards across DDM • Manages data vendor selection and contracting

across DDM • Executes individual data projects with dedicated

resources

Page 20: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

DDM’s Publisher Solutions syndicates content in our areas of expertise to more than 600 news publications worldwide BrandForge powers native advertising, in English, Spanish, and Portuguese Publisher Solutions Network offers geo-targeted native ad buys through our syndication partners

DDM Syndication and Services

Page 21: Dual Transformation A Work in Progress March 21, 2017 · Dual Transformation A Work in Progress March 21, 2017 . Chris Lee, Global President, DDM clee@deseretdigital.com , @cleepost

The Trusted Digital Voice

Our mission for the benefit of our communities, our countries, and our freedoms depends on strong local media voices. It is our responsibility to find solutions to compete in order to fulfill our mission.

A Final Note