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IBM Global Business Services

IBM Institute for Business Value

Media and

Beyond entertainment

access
Raising the value
of information in a
cluttered environment
IBM Institute for Business Value
IBM Global Business Services, through the IBM Institute for Business Value,
develops fact-based strategic insights for senior business executives around critical
industry-specific and cross-industry issues. This executive brief is based on an
in-depth study by the Institutes research team. It is part of an ongoing commitment
by IBM Global Business Services to provide analysis and viewpoints that help
companies realize business value. You may contact the authors or send an e-mail to
iibv@us.ibm.com for more information.
Beyond access
Raising the value of information in a cluttered environment

Executive summary 2. Grow beyond the core business with value-added


From carrier pigeons to the advent of mass communica- services. Analytical capabilities can be expanded
tions, the business information industry has successfully into new service realms such as predictive analysis,
adapted to many changes in its long and storied history. consulting services, alerts and time-saving customized
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Today, however, the US$70 billion industry may face its analysis.
toughest transition yet: competing in a digital world with a 3. Drive a customer-centric culture. Information providers
digitally savvy user. can adapt to a demand-driven market by coinvesting
with clients, creating a compelling user experience,
New online information providers and free services
implementing usage and preference analytics engines
including online newspapers, expert blogs, targeted
and marrying market and customer insights.
search engines, low-cost research sites and niche
providers have begun to pull audiences from Future competitive advantage will go to
incumbents. With knowledge seekers atomizing and
loyalties shifting, new competitive and substitution risks firms that provide value-added services
may be driving the industry toward an inflection point. and expert insights, not access.
Industry players need to adapt swiftly or risk losing
ground in key areas. 4. Evolve business and pricing models. Each service
within a companys portfolio can audit its unique
Near term, the industrys two historical barriers to entry competitive advantages in terms of proprietary analysis
proprietary content and proprietary analysis are and proprietary content and cross-leverage learning
expected to hold. But longer term, the opening of from other areas within the parent company. Pursuing
source information will likely drive heightened competition partnerships and adopting dynamic segmentation and
and erosion of barriers. If these trends continue, future pricing strategies will likely be important aspects of
competitive advantage will go to firms that provide value- success as the marketplace evolves.
added services and expert insights, not access.
5. Be digital with streamlined delivery. To deliver the
Despite a risk-laden outlook, incumbent players may right information to the right user on the right device
be well positioned to leverage user intimacy to deliver at the right cost, information providers can focus on
compelling next generation services and solutions. rolling out industry standards and driving device and
The following strategies can help them compete in this platform agility.
emerging environment: 6. Leverage your brand. In the effort to cut through content
1. Protect the core business by providing solutions. As overchoice, a brand that stands for expertise, trust and
access is commoditized, information providers can experience is an invaluable asset. To be effective, the
protect and grow margins by focusing on solutions brand should position the provider as a stalwart in the
that deliver greater relevancy and expertise, including overflowing information marketplace.
workflow integration, ecosystem partnerships and
ontology development. These recommendations allow information providers to
move beyond access and focus on delivering expertise
and insights.


IBM Global Business Services

A pedigreed legacy The Internet has also made it possible for primary
The information provider industry has weathered many information suppliers from news outlets to law courts
changes in its long and storied history. In the 19th century, to manufacturers to go directly to consumers, creating
Reuters used carrier pigeons to disseminate stock quotes, an additional new layer of de facto competition. In the
and the Associated Press created a collective of rowboat past, these suppliers would provide original source
reporters to scoop news from incoming ships. Later information to journals or information services. Now that
came decades of industrialization and the advent of the it is possible to offer supplier information directly online,
telephone, radio and television. Through each successive some information providers face the very real prospect of
wave of fundamental change, business information disintermediation.
providers have managed to adapt successfully.
The wave of change engulfing information providers
A digital world drives fundamental change includes another distinctive element: digitally savvy end
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Today, however, the US$70 billion industry may be facing users. Broadband adoption continues its rapid growth in
its greatest challenge yet: competing in a digital world major markets around the world (see Figure 1), driving
populated by digitally savvy users. The explosion of users appetites for new, online content and services.
the Internet has given rise to multiple new sources of Incumbents are often behind the curve in terms of
information, including free online newspapers, expert adopting new technologies for compelling and robust
blogs, targeted search engines, low-cost research sites information services. In most cases, nontraditional players
and niche providers seeking specialized audiences. have simply been quicker to innovate and are more agile
Many of these sources are technologically innovative and in leveraging new technology for the benefit of users.
often available without fees for the user.

News and newswire services face new competition as suppliers go direct


Today, some segments of the information industry face the threat of disintermediation more acutely than others. In the news and
newswire segment, for example, traditional information services are feeling the bite of commoditization as users gain direct access to
myriad digital alternatives. Internet distribution is making it possible for brands to reach their constituencies easily, cost-effectively and
directly. In an effort to capture incremental advertising revenue (and, to a lesser degree, online subscription charges and archive access
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fees), more than 5,000 newspapers and 2,000 trades magazines are now available on the Internet.

This explosion of content availability is also giving rise to a new breed of aggregators intent on competing in a space once reserved for
traditional, fee-based information providers. A prominent example of this new form of aggregator is Google News, which offers access
to 4,500 daily global news sources as a free user service updated every 15 minutes and customizable by the user. With competitors
able to reach audiences as never before, fee-based business models that rely primarily on aggregation services are most susceptible to
competitive pressure.

These dual trends open supplier information and the emergence of new aggregation points are conspiring to suppress business
performance in the newswire category. For example, Dow Jones Newswires revenues were down US$22 million, or 9.3 percent, over the
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last two years, while PR Newswire saw its revenues decline 7.1 percent between 2002 and 2003. Even as the economy recovery helped
push subscription news services back into positive territory in 2004, growth remained slow to moderate. Subscription growth for the top
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ten services was estimated at 3.9 percent between 2003 and 2004.

But even the new class of aggregators is not free of the competitive threats posed by technological change. New tools like Really Simple
Syndication (RSS) are allowing users to create their own services in effect disintermediating the aggregators. RSS feeds allow a user
to go directly to the sources filtered by an aggregator be it Google News or a traditional provider to create their personalized news
services from the pubic Internet.


Beyond access

Figure 1. Broadband has reached critical mass, leading to This flowering of choice has put
more robust information and content services.
80
customer loyalty in a state of flux. To
South some degree, users are conferring to
70 Korea
Japan free, online sources levels of credibility
60 US and confidence they once reserved
50 UK only for fee-based services.
Percent

France
40 Germany credibility and confidence they once reserved only for
fee-based services. In a 2005 survey of corporate workers
30
(from 20 industries and 10 functional areas of business),
China 73 percent responded that they rely on the public (free
20
and open) Internet as a primary research tool, with
10 69 percent relying on the open Web for daily decision
2005 2006 2007 2008
making in their job. Furthermore, 77 percent utilize search
Source: Ovum Internet services by country, July 2004. engines to get information for the job, a percentage which
moved even higher when workers hailed from Science,
Engineering or IT. Poignantly, 72 percent responded that
As knowledge seekers embrace diverse information the public Internet contains information from credible
channels, user demand is trending toward disparate and 6
sources. The numbers (see Figure 2) demonstrate the
niche information sources. This flowering of choice has resilience of free Internet sources versus traditional fee-
put customer loyalty in a state of flux. To some degree, based services a trend which continues to change the
users are conferring to free, online sources levels of economics of the industry.

Figure 2. High dependence on the free, public Internet by corporate users is challenging traditional fee-based information services.

Total corporate Finance, HR Information Sales and Science and


respondents and Legal Technology Marketing Engineering
Search engines allow me to get the 77% 71% 79% 76% 82%
information I need for my job
I use the Internet primarily as a 73% 70% 71% 76% 71%
research tool
The Internet contains information from 72% 72% 71% 73% 67%
credible and known sources
The Internet provides information that I 69% 75% 70% 66% 51%
use to make daily decisions

Source: Hot Topics: 2001 vs. 2005: Research Study Reveals Dramatic Changes Among Information Consumers. Outsell, Inc. May 2005.


IBM Global Business Services

For incumbents in the information provider industry, As this trend plays out, information
these results speak to a risk of substitution more acute
in some content categories than others as well as an providers must learn to appeal to
end-user perception gap. The results also suggest that highly diverse sets of needs.
users are taking their consumer habits into the workplace,
blurring the distinction between consumer and business Taken together, current trends suggest that the market
users. Existing information product bundles are unlikely may be headed for an inflection point (see Figure 3).
to satisfy these empowered end users as they gain The industry is far from monolithic, and different content
more say over purchasing decisions. As this trend plays segments will be impacted in different ways. But overall,
out, information providers must learn to appeal to highly the combined risks of substitution, evolving user needs,
diverse sets of needs. The user-centric trend also has technology and new competition threaten to create a
pricing implications: if existing product bundles are no growing chasm between leaders and laggards.
longer adequate, providers will be challenged to segment
and monetize their products in new ways. An uncertain outlook
Through 2008, the information provider industry is
Efforts to adapt to these unprecedented changes are 7
forecasted to grow a moderate 5.2 percent, a rate
being hampered by legacy issues, including a persistent just above the projected consumer price index. Large
product and copyright focus, manufacturing-age players will likely continue to fight for share within the
processes, legacy and piecemeal technologies and mature market while grappling with new competitive
cultures that remain oriented around the physical rather dynamics. In the near term, category and geographic
than the digital world. expansion are expected to drive revenues. Existing

Figure 3. The information provider industry may be approaching an inflection point. Different segments will be impacted at
different rates.

Industry issues
Low growth industry history
Legacy culture and business models
Fragmented audience
Business performance

Shifting user loyalties


Inflection point
Competition and substitution challenges
Suppliers releasing information
Free ad-supported services
Move to open access sources

Technology challenges
Legacy technology
Distribution challenges
Time
Source: IBM Institute for Business Value analysis.


Beyond access

Figure 4. Each content category currently derives competitive advantage from two barriers to entry. A companys strength in the
future is dependent on category and portfolio mix.

High
Constrained market position
US$8B US$19.4B Area of concern for
Proprietary source content A

Science, information commoditization


medical and
technology Financial Marketing Strongest market position
Relatively strong position,
US$17.7B reliance on analysis

Business, Legal and


trade regulatory
US$11B
US$13.8B
General news
Low and newswires C
Low High
Proprietary analysis B
A
Proprietary source content refers to the foundational information used for professional service information; this includes court rulings, breaking news, equity quotes, company
financial returns, technical specifications and scientific research results.
B
Proprietary analysis refers to the level of with analysis/editorial/interpretation wrapped around the source content for the average customer.
C
General news and newswires estimated at US$2.5M-3.5M including only the top subscriber services. All market size data is as of year end 2003.
Source: IBM Institute for Business Value analysis.

products will likely move into fast-growing markets like tions and scientific research. Such information creates a
China and India, as well as Central and Eastern Europe barrier to entry when the provider owns the source data
and Latin America. Emerging market data is expected exclusively. Aggregated information and archives are
to provide a new source of revenue, as is financial data of the utmost value to professional users, but providing
for meeting regulatory requirements and identity data these services hinges on the availability of foundational
for security analysis. An ongoing recovery in advertising data and information.
also promises to boost revenue from its present anemic
state. Longer term, however, the industry may face more The second barrier to entry is proprietary analysis, the
fundamental challenges. expert analysis, commentary and interpretation that
providers wrap around the source content. This barrier
In order to evaluate competitive advantage now and is maintained through branded, copyrighted analysis
in the future IBM has created a model defined by two ranging from strategic investment analysis to legal
historical barriers to entry (see Figure 4). The first of opinions that competes for audience mindshare. As a
these barriers is created by proprietary source content, component of competitive advantage, proprietary analysis
which can include court rulings, breaking news, equity is particularly pronounced in content areas where
quotes, company financial data, technical specifica- customers rely more heavily on expert opinion in the
course of doing business.


IBM Global Business Services

A more detailed look reveals how each sector falls at a now compete directly with the traditional aggregator for
different point along the two proprietary axes: the consumer eyeball. The providers most at risk are
Marketing (top right quadrant): Marketing research those that aggregate data rather than layer analysis
and user behavior pattern information are expensive upon it.
to collect and interpret. Thus, these assets are of high Financial information (middle): This category is
value along both axes. Companies like Taylor Nelson bifurcated, with some content such as company
Sofres (TNS), Nielsen Media Research and Arbitron records, earnings trends and stock quotes easily found
hold unique source information as well as the rating or via free services. However, investment reports, realtime
cross-tabular analysis that gives rise to insight. data, and uniquely collected industry and company
Science, medical and technology (top left quadrant): information continue to garner premium prices.
Science derives great strength from its peer-to-peer While the two historical barriers to entry proprietary
quality control processes and copyrighted journal source content and proprietary analysis seem safe for
articles. Thus, it rates highly along the content axis, the short term, only the latter appears likely to survive
but less so on the analysis axis. While industry leaders long term (a trend illustrated in Figure 4 with directional
like Elseviers ScienceDirect and Thomsons ISI Web arrows). IBM believes that source content will continue
of Knowledge have rolled out abstracting and cross- to open due to regulatory change and technological
referencing capabilities, ancillary analysis and editorials advancement. As sources open, their value as a protected
(over and above the research itself) are not traditionally stream of revenue declines.
a part of the offering.
Legal and regulatory (bottom right quadrant): In this Against this backdrop, traditional players are likely to seek
content vertical, most source documents court rulings, growth by invading each others markets. For example,
for example are available in the public domain. Thus, finance provider Bloomberg has moved into law, while
value resides in analysis, editorials and opinion-making, Thomson has moved into finance broker stations. Such
as well as in the case summaries, archive and cross- maneuvers will likely shake up share between the major
referencing of large databases. incumbents within defined markets. In addition, new
entrants will continue to exert competitive pressure, as
General news and newswires/Business and trade relative newcomers like Google, Yahoo! and CNN.com
(bottom left quadrant): By our analysis, the news and are joined by vertical information providers vying for
newswire categories are exposed to the greatest threat the specialized user. These niche players include such
from commoditization. As suppliers continue to offer diverse companies as compliance information provider
content directly to customers, these industry verticals Complinet, as well as Google Scholar and the U.S.
must evolve quickly into new business models and National Institutes of Health (NIH) PubMed Central for
partnerships. Business and trade information providers scholarly publishing and scientific research. Additionally,
face similar threats because the creators of the data free and low-fee information providers ranging from
CyberLaw expert Lawrence Lessigs blog to subscription
archive HighBeam Research to do it yourself RSS
technology will provide options for more price-sensitive
customer groups (see Figure 5).


Beyond access

Figure 5. In the future marketplace, new players will compete for audience mind-share, ultimately affecting spending trends.

HighBeam
Aggregators
NIH PubMed Central
Google Scholar
HighWire Press

UpToDate.com
Niche content Lessigs CyberLaw blog
providers Emerald
PLoS/Springer
Complinet
Knowledge
users
Microsoft workflow products
Intermediating
tools Really simple syndication (RSS) Feeds

Sources: IBM Institute for Business Value analysis.

Moving beyond access To succeed in this environment, information providers


Faced with these dynamic changes, business-to-business will have to learn from traditional and nontraditional
information providers must adapt by offering services competitors and adopt new business models and service
and solutions that move far beyond access. With myriad dimensions. In many cases, partnerships will be required
touchpoints for information, access will remain plentiful to deliver broader solutions, such as workflow integration
(and perhaps proliferate in ways we cannot imagine and value-added services, including consulting and
today). Similarly, breadth and depth of content via client-customized services. Competition among emerging
archives and aggregation will remain vital parts of the platforms, such as portals or integrated search tools on
the professionals desktop, will also require consideration
as information providers roll out new enterprise solutions
While the two historical barriers to
and services.
entry proprietary source content and
To help information providers adapt to these new
proprietary analysis seem safe for
conditions, the IBM Institute for Business Value
the short term, only the latter appears recommends six specific strategies (see Figure 6).
likely to survive long term.
1. Protect the core business by providing solutions. With
business. But as the industry evolves and mere access access to information commoditizing on many fronts,
to content erodes as the basis for competitive differen- providers must evolve beyond their traditional models
tiation a firms ability to attract and retain customers toward solution delivery. The key is to deliver greater
will shift toward the delivery of value-added expertise relevancy and expertise in a format that is compelling,
and insight (whether provided outright or in the form of seamless and easy to use. Solution capability will
services that extend the expertise and insight of the become the second barrier to entry of the future along
customer). with analysis.


IBM Global Business Services

Figure 6. Industry participants can move beyond access with the following executive recommendations.

Information provider Beyond access Executive


challenges today future characteristics recommendations
1. Protect core business by providing
Industry legacy issues Open source content
solutions

Economic and competitive trends 2. Grow business beyond core with


New business models
value-added services

Customer and end-user demand shifts Insights not access 3. Drive a customer-centric culture

Technological innovation
4. Evolve business and pricing models

5. Be digital with streamlined delivery

6. Leverage your brand


Source: IBM Institute for Business analysis.

For this to happen, third-party information providers Another fruitful area is the development of ontologies.
must recognize that they reside in larger ecosystems of Ontologies have the potential to make the Web a far
information that encompass several dimensions: the richer, semantically-based system by providing a sophis-
enterprises own work-product and information reposi- ticated sense of users needs. As the user interfaces
tories, other third-party information providers (including with the system over time, the ontology develops a mind
public sources and the public Internet), and end-users map of that user, which it, in turn, uses to deliver focused
desktop information. Playing in the information ecosystem information. While search is an important component of
will require providers to overcome their siloed structures doing business today, developing the solutions of the
and propensity to go it alone. As Figure 7 illustrates, future will require a long-term commitment to ontologies
information providers need to partner to deliver full, next and the mind of the user.
generation solutions to demanding customers.
Systematically understanding a users intentions
Customizing the user experience through workflow An ontology enables a system to develop a sense of the users
integration is one important strategy for moving to a intention by considering the objectives implied by his or her
solutions-based business model. Value-added services context, motivation and role. For example, when searching for
should seamlessly blend with user applications and New York pizza, a restaurateur and a mom planning dinner
common touchpoints and should be customized by may have very different objectives in mind and thus have very
functional user group the more granular the better. different information needs.
Such workflow integration creates high customer
switching costs by linking into the user process flow and 2. Grow beyond the core business with value-added
by making third-party content integral to doing business services. Value-added services expand analytical
day in and day out, user by user. capabilities into new service realms. Possibilities include
providing innovative visions, quality expertise and
insights; delivering expert product extensions; offering
time-saving services and solutions; and driving insights
from multiple and unique data sources.


Beyond access

Leveraging core skills for new services Sophisticated insights based on good data will underpin
Dun & Bradstreet launched the DUNSRight program to assure many of the segmentation and service customization
data quality through cross-referencing 2,000 separate automated capabilities of the future.
checks in addition to manual checks from 92 million records.
Using this multisource analysis, DUNSRight can detect trends 4. Evolve business and pricing models. Different strategic
and craft predictive analysis and alerts for clients.
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differentiators imply different business and pricing options.
As a company seeks to evolve its strategy, it should
consider its current mix of proprietary information and
As the industry evolves and mere proprietary analysis, as well as the industrys expected
access to content erodes as the basis shift toward solutions as a strategic dimension. For
example, a company that enjoys defensible positions
for competitive differentiation a firms
along both axes today (see Figure 4) may be able to
ability to attract and retain customers leverage pricing and service stratification growing
will shift toward the delivery of value- beyond the traditional niche to forestall new competitors
that enter at lower price points. Companies in more
added expertise and insight.
vulnerable positions (the bottom right quadrant) will have
fewer options and may need to focus on volume versus
Moving beyond aggregation
price plays. The bottom line: learning across categories
Factiva, a joint venture between Dow Jones and Reuters,
is the new imperative. Each service within a companys
aggregates and archives news and information from the Dow
portfolio needs to audit its unique competitive advantages
Jones and Reuters newswires, as well as from brands like The
and learn from other areas within the parent company.
Wall Street Journal. In an effort to branch out beyond its core
business, the firm launched Factiva Consulting Services, which
offers taxonomy, workflow, project management and other Figure 7. In the future information ecosystem, information
consulting services. Factiva reports over 1 million hours of providers are one of many key participants.
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subject-matter expertise in applied consulting.
Public Internet Computer files
Proprietary analysis e-mail/attachments
3. Drive a customer-centric culture. In the past, products Information archives Instant messages
in the information provider industry often went in search
of customers. But given the growing sophistication of
information buyers and heightened demands on service Third-party Desktop
providers, it is imperative that industry participants move information information
to a customer-driven product development process.
Knowing the customer through ongoing feedback
Enterprise
loops, analysis, segmentation and customer relationship Information
providers today information
management is key. Indeed, customers should take a are moving in
central role in the service development process. limited fashion
into management Structured data environment
of enterprise as Intranet portals and company
Customer-centricity should also focus on end users.
well as third-party repositories
As users become ever more sophisticated, their needs information External Web sites
will ultimately be represented in customer contracts.
Therefore, aligning products to user needs both practical Source: IBM Institute for Business Value analysis.
and emotional is an important element in creating
loyalty and stickiness. Becoming customer-centric also
requires investment in data collection and analysis.


IBM Global Business Services

To drive cost-effectiveness, information providers can Digital delivery is becoming key facet of service
assess their overall company structure to identify Thomson, with 2004 revenues of US$8.1 billion, reports that 66
opportunities for leveraging third-party specialists. percent of its business is derived from electronic distribution,
In certain cases, services can be handled more software and services. Thomson WestLaw draws information
cost-effectively through an outsourcing partnership from 21,000 databases, while ISI Web of Knowledge provides
particularly in arenas facing commoditization and access to 440,000 relevant full-text Web documents as well as
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compressing margins. links to 4,400 vetted Web sites.
Reed Elsevier, a diversified information provider that generated
New segmentation extends position
revenues of US$9.0 billion in 2004, provides two other leading
Throughout its long history, market research firm TNS has
examples of the analog-to-digital transformation in the form
specialized in qualitative and quantitative research. But in an
of LexisNexis, which reports 4.9 billion searchable documents
increasingly digital marketplace, its reliance on traditional
from 32,000 online sources, and ScienceDirect, which reports
methods was making its research expensive compared to 12
6.7 million articles available online.
that of new entrants. The advent of Internet data collection
technologies online panels provided customers with fast,
6. Leverage your brand. As users face a deluge of
lower-priced choices in the marketplace. This presented a threat
information, branded content grows in importance.
to TNS and other premium research companies, which risked
Information overload will only worsen as the volume
becoming pigeon-holed as high-priced service providers with
of online documents continues to double every six
mature or shrinking customer bases. Worse, low-cost providers
months (or faster). In this age of overchoice, a brand
could, over time, move up the delivery scale into services,
slowly eroding the stalwarts bases. In 2003, against this is a valuable asset that needs to be nurtured and fully
competitive dynamic, TNS purchased online panel expert NFO exploited for advantage.
Worldwide. By combining the two companies client acumen
and technological skills, TNS is now poised to provide a range Delivering the right information to
of services with dynamic pricing to a variety of old- and new-
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the right user on the right device at
style customers.
the right price requires adopting
5. Be digital with streamlined delivery. Digital delivery industry standards, optimizing digital
continues to transform the workplace, with doctors using supply chains and building in cross-
portable devices for mobile diagnostic analysis, financial
professionals demanding constant alerts on the data they
platform portability.
are tracking and PDA-wielding litigators garnering briefing Many information providers have established brand
materials on the go. For information providers, delivering equity among their core constituency (some companies
the right information to the right user on the right device even enjoy brand penetration outside their core).
at the right price requires adopting industry standards, However, brand equity can erode as new providers and
optimizing digital supply chains and building in cross- aggregators pull eyeballs in new directions. For example,
platform portability where appropriate. Mobility of both database services that merely aggregate documents
people and content is unlikely to fade as a feature of the make easy targets for ad-driven free aggregators (such as
workplace, and information providers need to find ways to Google Scholar, My Yahoo! and RSS feeds) that provide
help professionals obtain content and analysis through a the same content.
number of targeted channels and devices. This process
needs to be customer-driven and tailored to meet and
exceed expectations.

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Beyond access

As information providers reposition to focus on delivering How will emerging delivery channels affect your firms
answers through value-added services, workflow integration ability to reach end users? How might they expose your
and other approaches, it is crucial that the brand stay firm to new competitive pressures? Which users require
aligned with the differentiating features of the business. The multiplatform access and what are the pricing bundle
good news is that todays information providers have the possibilities?
ability to grow and leverage the brand to create an anchor How valuable is your brand as a beacon in a crowded
position in a flash flood of untested content. market characterized by overchoice? What level of
investment is appropriate to make your brand stand
How will your firm move beyond access?
out? How often do you refresh and update the user
The six strategies outlined in this paper can provide your
brand experience?
firm with insights for competing in a changing information
environment. The following questions are designed to As they face a new wave of fundamental change, todays
stimulate your thinking about issues that will likely arise as information providers are well positioned to leverage
your organization evolves beyond access. their clout with customers and their vast market and user
expertise. But in a future marked by competition to wrap
How solutions-focused is your enterprise? What
value around information, success will require change.
collaborative opportunities can your firm pursue with
Access to information alone will not be enough to secure
other ecosystem players, including other information
competitive advantage. Leading information providers will
providers? How effective is your ability to integrate with
deliver and extend expertise and insights.
customer workflows?
What gaps exist in serving customer demand today? To discuss strategies for moving beyond access, please
How robust is your companys ability to scale up e-mail us at iibv@us.ibm.com. To find out what we think
new services areas? What new kinds of skills and about other pertinent business topics, visit our Web site:
capabilities will you need to build new services?
ibm.com/iibv
How effectively does your firm include the customer in
product development? Does your development process
include systematic feedback loops?
How strongly is your firm positioned in terms of the
industrys traditional barriers to entry (proprietary
source content and proprietary analysis)? What
are the immediate open source threats? Where do
opportunities exist for deeper customer segmentation
and pricing stratification? Where might advertising
be integrated into current offerings? How mature is
your firms ability to innovate by collaborating across
business units and content categories?

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IBM Global Business Services

About the authors Acknowledgements


Dr. Saul J. Berman is a Partner, Global and Americas The author team wishes to thank additional interviewees,
Business Strategy leader and Americas Media and including Chris Charron, Forrester Research; Professor
Entertainment Strategy and Change Leader with IBM Mark McCabe, Georgia Institute of Technology; Michael
Global Business Services. In 2005, Saul was named one Nathanson, Sanford Bernstein; Anthea Stratigos, Outsell;
of the top 25 most influential consultants by Consulting and David Worlock and Nick Dempsey, Electronic
Magazine. Saul can be reached at saul.berman@us.ibm. Publishing Services.
com.
About IBM Global Business Services
Adam R. Steinberg is a Partner with IBM Global Business With consultants and professional staff in more than 160
Services. He is the leader of the Business Intelligence countries globally, IBM Global Business Services provides
practice area in the Americas Communications Sector clients with business process and industry expertise, a
and the CRM leader for the Media and Entertainment deep understanding of technology solutions that address
industry. Adam can be reached at adam.steinberg@ specific industry issues, and the ability to design, build,
us.ibm.com. and run those solutions in a way that delivers bottom-line
Louisa A. Shipnuck is the Global Media and Entertainment business growth.
Industry Leader at the IBM Institute for Business Value.
Louisa can be reached at louisa.a.shipnuck@us.ibm.com.

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Beyond access

References 8
The DUNSRight Process: The Power Behind
1
Global Entertainment and Media Outlook: 2004- Quality Information. Dunandbradstreet.com. http:
2008. PricewaterhouseCoopers. June 2004. //dunandbradstreet.com/us/about/db_database/
2 dnbinfoquality.html
Ibid.
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3 Factiva Consulting Services. Factiva.com.
Facts About Newspapers 2004: A Statistical Summary
http://factiva.com/consulting/consulting.asp?node=
of the Newspaper Industry. Newspaper Association of
menuElem1508
America. May 26, 2004. http://www.naa.org/info/facts04/
10
interactive.html; Harness the Power of B-to-B Media. Our platform for growth: annual report and accounts
American Business Media. May 2005. http://www.ameri 2003. TNS. 2003. http://www.tns-global.com/
canbusinessmedia.com/abm/Default.asp corporate/Doc/0/OPLNEJ4AD2OKNCDTF40E4VTADF/
4 TNS_2004_Annual_report.pdf
Company annual reports, 2002 and 2003; IBM Institute
11
for Business Value analysis. Westlaw Wins Law Office Computing Readers
5 Choice Awards for Eighth Consecutive Year.
EIR's Current Awareness News & Research Online
West.thompson.com. July 29, 2004. http://
Subscriber Survey, 2004 vs. 2003. Electronic
west.thomson.com/news/releases/lawoffice_8th.asp
Information Report. April 2005.
12
6 Reed Elsevier Annual Review 2004. Reedelsevier.com.
Hot Topics: 2001 vs. 2005: Research Study Reveals
http://www.reedelsevier.com/media/pdf/r/2/Elsevier.pdf
Dramatic Changes Among Information Consumers.
Outsell, Inc. May 2005.
7
Global Entertainment and Media Outlook: 2004-2008.
PricewaterhouseCoopers. June 2004; IBM Institute for
Business Value analysis.

13
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