A Simple Framework for Competitive Strategy
Many books have been written about competitive strategy, but few deal
specifically with information businesses. Our work with clients over the
years has led us to believe that information businesses require their own
competitive framework because of their special characteristics. First,
information is an intangible product whose value varies in different
circumstances. Second, information products are typically (and increasingly)
a complex package of content, applications, functionality, and delivery.
Third, despite being intangible, information purchases outside of the
consumer market are seldom discretionary because information is a "fuel"
that drives many industries. Finally, information businesses typically
focus narrowly on serving niches, not broad markets. We believe that
competitive strategy for information companies boils down to four critical
elements, which are briefly outlined in this paper.
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Rapid Strategic Planning
This white paper is the result of work conducted with several clients using a new approach to strategic planning. With the urgency of setting a new direction, often under the constraints of tight budgets and stretched staff, we have evolved an accelerated strategic planning process. As with conventional approaches, rapid strategic planning ™ is highly structured and results in a road map for a business, but it delivers an actionable plan faster and at less cost than most conventional methods. In addition, our approach connects the resulting strategic plan to a company's operations, so that the plan serves as an ongoing management tool, not a term paper. Because it is streamlined, rapid strategic planning works just as well for both smaller situations, such as departmental or divisional planning, as for enterprise-wide strategic planning. Rapid strategic planning can be carried out in as little as four weeks depending on the size and complexity of the organization. Regardless of the type or size of the organization, the process adheres to a step-by-step process.
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Rules for Pricing Digital Information Services
Pricing is an especially challenging strategic issue for all digital information companies because of at least three intertwined factors:
1) Information content and services are intangible and perishable, unlike physical goods, 2)The same information content may have widely different value to different types of customers, and 3) Technology can dramatically enhance the value of information content by overlaying functional applications, such as searching, sorting, alerting, analytics, and visualization.
Publishers and other information service companies often find it daunting to devise pricing approaches that can apply across all customers. Lack of effective pricing drives many information companies and their customers to expect negotiation as a normal part of the sales process. In our experience, pricing negotiation is both undesirable and avoidable.
Business
Impact of the Digital Object Identifier (DOI)
The Digital Object Identifier (DOI) is a technology that helps make
information more discoverable through persistent linking and interlinking.
It has been adopted universally across the scientific/technical/medical
(STM) publishing sector and more recently is being adopted in other
sectors of publishing and other industries. All publishers we studied
achieved measurable benefits from the DOI, and publishers in the
process of implementation expected similar results. Publishers experienced
benefits in one or more of the following ways: increased discoverability
of their content, increased content sales, and reduced costs in
product development and maintenance. Increased discoverability of
content via cross-linking. Publishers using DOIs have experienced
significant increases in inbound traffic to specific pieces of content
from a variety of sources: search engines, aggregators, and other
publishers' content. This white paper is the bi-product of research
originally commissioned by a major publisher to assess the opportunities
and financial returns for using the DOI within its various publishing
businesses. The findings are based on interviews with publishers
in the U.S., Europe, and Australia. Download
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