Subscribed 2015: Organizational Transformation: Building Your Subscription Culture
40
ORGANIZATIONAL TRANSFORMATION: BUILDING YOUR SUBSCRIPTION CULTURE Ulrich Hermann CEO, Wolters Kluwer Germany
Transcript of Subscribed 2015: Organizational Transformation: Building Your Subscription Culture
ORGANIZATIONAL TRANSFORMATION:BUILDING YOUR SUBSCRIPTION CULTURE
Ulrich Hermann CEO, Wolters Kluwer Germany
Agenda
Our Mission
What Drove our Transformation
The Organizational Requirements
Building a Subscription Culture
Lessons Learned
Key Takeaways
Q & A
“Wolters Kluwer’s mission is to empower our customers with the
information, technology, and services they need to confidently make and
follow through on critical decisions. ”
OUR TRANSFORMATION
PRINT PUBLISHING
• Legacy Business
• Transitioning to online
ONLINE SOFTWARE +
SERVICES
• Customer workflow
• Tremendous upside
potential
DATA ANALYTICS
• High disruptive
potential
• Internal + external
value
deliv
ere
d v
alu
e
Time
Expert Content
Transaction / usage data
In 2014, 80% of Wolters Kluwer global revenue is made up
from digital Solutions & Services.
SLIDE HEADER100
25
0
50
75
64
23
13
2013
68
20
12
2014
Revenues by media
(%)
Services
Digital
100
25
0
50
75
25
75
2013
24
76
2014
Revenues by type (%)
RecurringCyclical
Source: Wolters Kluwer 2014Annual Report
So, what happened?
1980’s
Business was all about producing and selling a
good product on marginal cost…
Marketing & Sales:
Promotion of single products with direct mail, retail
marketing, advertisement
Sales via retail’s “bookshelf”
Direct marketing & sales of subscription
Value of a Single Product:
Renowned authors
High quality content
Index + taxonomy
In a product centric business, we sold content into the print-
customer’s shelf…
INCREASED PRESSURE ON
CUSTOMER PRODUCTIVITY
flat rates
tenders
access to legal services via the internet
insourcing of legal services to corporate legal departments
global firms enter the market
1. The client does not necessarily go to a
lawyer
2. Prices for standard services will erode
MORE PLAYERS
COMPETE FOR
MARKETSHARE
SLIDE HEADERTHE MARKET WILL LIBERALIZE
Technology trends changed customer requirements.
Customers today have new expectations
Personal Real-Time Immediatefulfillment
On Going Value
Memorable Services
What did this mean for us?
2010’s
HEADING
Section break slide
“Our value proposition changed from ‘Content Source’ to ‘User
Experience’. ”
Controlling content vs
Enabling experiences
Enabling a Unique Experience
• Technology
• Intuitive workflow
• Ecosystem
• Relevance
• Productivity
Controlling Content
• Access to author driven content
• Opinion leadership
• Community membership
• BrandREQUIREMENT: Radical innovation
REQUIREMENT: Radical innovation
At the core of our business model is the customer experience.
Customer Workflow
Print Media
localsearch/understanddomainsmediaavailability
Product driven
Content:Competence:
Editorial:Formats:
Value:
Digital Media
Customer Lifecycle driven
Customer Workflow
Solutions
integratedserve/solvetaskssolutionsproductivity
Old
New
THE OLD VS. NEW WORLD
product
customer
1 yR subscription (Jan.-December)
or One time purchase
by piece/license
offering
features
Customer hunting across channels
internet search
usage
FreeRegister
Voucher
1 – 2 mo trial
subscription per month subscription per quarter subscription per year
“Building a business model around the customer experience requires organizational transformation. It means building a subscription
culture.”
guiding customers through the right
channels…
training and coaching every employee in Customer Lifecycle Management (CLM)
related workflows…
What it takes to build a
subscription culture…
Aligning marketing, sales and service
around the customer experience…
streamlining the customer experience
across all touch points…
enabling ERP to automate multiple subscription based business models…
SEO/SEM/SEA/Social Media
▪ Customer Journeys▪ Topic related
education centers▪ Quality content
Ease of Use
Comprehensive functionality & quality content
▪ My Document Library
▪ Quality contents / newsletters
▪ Reminders in case of legal changes etc.
AGILE DEVELOPMENTThe underlying principle of our
product development
(re)definition of the problem we hope to solve
(re)identification of the customer
testing and iterating on business assumptions, positioning, feature requirements, marketing and sales tactics
research the market, analyse customer, interpret usage reports
Customer Development
measuring product use
elaborate feature, user experience (main success and alternative scenarios), interface design
release new and different functionality to the customer as quickly as possible
assuring reasonable product quality
Product Development
AGILE DEVELOPMENT Shifting the focus from product features
to an agile process comes from the top
down
based on minimal viable product (MVP), steering committees, etc. focus on:
efficiency (management resources)
and
effectiveness (CPA’s & CLVs)
as they relate to the agile process
Management Focus
plan
requirements
analysis & design
implementation
test
evaluate
initial planning
customer feedback
Deployment Minimum Viable Product
Source: Steve Blank,Why the lean start up changes everything, Mai 2013, Harvard Business Review
The established global firm can help create competitive advantage for a new venture at every stage of the entrepreneurial lifecycle.
CREATING COMPETITIVE ADVANTAGE
IN THE STARTUP PHASE
yield asymmetric market insight
uncover problems and provide critical resources for a solution
capital and business functions as well
access to supply chain, distribution networks & other critical assets
negotiate and leverage market participants
IMPROVING RISK MANAGEMENT
being part of a bigger portfolio
pilots, trials and testing with existing customer base
EXPANDING THE VENTURE’S
EXIT OPTIONS
recycling the venture into different product / business
spinning-off, licensing, white label
integrating into an existing business unit
carving it out as a new business model
Focusnear term performance
large business units
BE AWARE a corporation protects its core business
while applying proven concepts
Minimizesmall up front investments
business on standards
Avoidfailure perceived as a career-ending event
incentivize a decision making structure that avoids
risk
Protectsupport for new ventures coinciding with
economic cycles, management interest and
budgeting
Key behaviors to maximize return
on invested resources
Lessons learned? Identifying potential roadblocks.
HEADING
Section break slide
“Transformation is possible only, if top Management introduces a perspective
for a new business model.“
POTENTIAL ROADBLOCK: FINANCE
“(Publishing) Business in the future is about customer value and experience --
not merely domain knowledge and expertise.“
POTENTIAL ROADBLOCK: EXPERTS
HEADING
Section break slide
POTENTIAL ROADBLOCK: BACK OFFICE IT
“Startups develop business from the customers’ context, established
corporations develop business from existing core capabilities.”
POTENTIAL ROADBLOCK: THE ESTABLISHED CORPORATION
“The established corporation can be the enemy of any startup venture.”
KEY TAKEAWAY
Work with agile concepts in marketing and product development to avoid late and expensive failures and constantly pivot the business model and solution.
KEY TAKEAWAY
Managing a Customer Lifecycle rather a Product Lifecycle requires a different DNA across all company functions.
Q & A
