As legacy media organizations deal with tremendous competition and financial pressure from digital natives, their path to survival is to better address the needs of the evolving consumer. To succeed in the “app economy”, businesses are compelled to acquire new capabilities and skills, and they can only do that by making big investments. How can traditional companies win the digital war? Customers today want freedom. They want to switch between contracts easily without paying extra and they want access to services that are on-demand.
The “app economy” adheres to several software-driven principles – data, agility, test & learn methodologies, transparency, and ongoing data-driven improvements. All of them must keep up with the fluctuating expectations of digital consumers constantly assessing their options. That being said, the only viable way of exceeding expectations and delivering value is via high-quality, rock-solid, innovative content.
The impact of migrating from traditional viewing to digital streaming services
Disruptive technologies are changing the dynamics of the whole media industry. Audiences are switching to streaming services like Hulu, Netflix, HBO Go, or Apple TV because the content offered is incredibly well-targeted. Furthermore, social media has created new content pillars in the ecosystem. And due to the tremendous expansion of data-powered digital natives, content supply chains are being altered to enable precise, specialized content that is on-demand.
For companies to win the app economy battle, they must find a way to set themselves apart. In today’s tech-centric, consumer-ruled market, the end goal is to find solutions that can drive operational efficiency via transformative initiatives.
The fit-for-purpose strategy, a winning approach in the digital space
Every business in the media space has its very own background and trajectory for the future. Although there’s no one-size-fits-all solution for success, a customized governance model paired with a fit-for-purpose strategy could enable organizations to compete successfully in the digital space; and have a chance at standing out by leveraging their original, inherent strengths.
To operate in the app economy, three core components must be considered by organizations that seek to jump on the transformation path:
- The operational component is aimed at the organizational aspect of the company. It involves making an investment in an app-based type of framework, the end goal is to switch to a tech-center business model.
- The architectural component is aimed at creating a suitable environment for executing functional objectives.
- The analytics component is aimed at performing in-depth analyses. It involves combining the architectural output (where the action takes place) with outside data, the purpose being to develop real-time intelligence for a brand new operational model.
To win big, the key is to embrace change
Regardless of characteristics, traits, revenue focus or content offered, to win the app economy war organizations must embrace change. This means being more dynamic, agile, and bold. For many, such an innovative approach may involve introducing a whole new way of doing business, with a strong emphasis on a delivery model that is adaptable.
Companies active in a software-driven world have the best chances of success in an app-driven economy. And that’s because most leaders already hold a data-driven mentality. Data lies at the core of modern businesses regardless of industry. The more you learn how to use data correctly, the better chances you have to adapt to current market dynamics, establish new revenue models, and mitigate risks.
Paving the way to creating a pragmatic, proactive business model
As companies transition to the new app-based economy, the need to outline a transparent, clear vision becomes critical. A pragmatic approach has to be based on internal realities, changing market conditions, and ultimately, fluctuating demands of the digital consumer. Eventually, legacy organizations will feel the pressure, too. They will need to develop a digital identity, otherwise, they won’t stand a chance in the competition.
Bottom line is, that it pays to have perspective. Or, at the very least, become open to transitioning to the app economy. In the end, it’s all about preparing a company for the inevitable digital future. Historical brands may still be able to hold the attention of their loyal customer. But soon enough, things will change as increasingly more baby boomers, gen X-ers and Z-ers, and millennials become fully accustomed to consuming media-on-demand, whenever they want, from any device, and from any location.