Ken Michaels -- Software as a Service

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In a rapidly transforming industry the ability to innovate and adapt can require huge capital investment, expertise and change. The good news is that publishers do not have to be experts at every process or capability nor do they need to build these tools for themselves. Hachette Book Group COO, Ken Michaels, has been leading the innovative transformation at his company in a comprehensive way over the past three years. He will discuss the changes and the opportunities along with the transitional issues and challenges in this journey -- as well as sharing some new capabilities Hachette has developed that may now be available as SaaS tools for others in the industry.

Bildung Technologie Business

Software as a Service:
The Opportunity for Publishers

Ken Michaels
COO, Hachette Book Group

Change Forces Us To “Re-Think”

Amazon.com launches cloud software store

New app helps local
bookstores compete
FCC Pushes E‐Textbooks on US
Schools Facing Budget Crunch

Apple Releases Free Software for Distributing Class Materials
Ingram’s Vital Source expands e‐textbook
reach with Android application

Library Lends Out E-Readers
Google rolls out social
search service 2

Mobile devices have become centerpiece of U.S. consumer life

3

Market is now “Over-Served” with huge supply of media choices

Self Publishing Traditional

4

Consumers want a mix of physical & digital goods

% of Revenue
Gaming
58% 42%
Physical Digital

Trade Book
22% 88%

Music
52% 48%

5

Key Processes & Investments

Reach
• Publicity + Marketing Intelligence
• Social Media
• Syndication Presentation
• Social Analysis
• Mobility
• Customer Relationship Management
Delivery
• Point of Sale
• Demand / Supply Planning
• Digital Consumer + B2B Distribution Transaction Processing
• Rights Management
• Self-Service / Intelligence
• Personalization / Preference Capture
Data Storage
• Digital Asset Management
• Architecture Capabilities
• Cloud Infrastructure
Content Creation
• XML First
Author Acquisition • Digital Workflow (P&E)
• Information Intelligence • New Products
• Access
• Digital Prowess

Choose your core competency
and focus your energy there.

Then find world-class partners
to fill in the rest.

Acquirer
Bought SAAS

EMAIL

Piracy monitoring
Potential Provider
E-processing

Unique Core Capabilities Built for
Multi-Tenets on a Scalable
Infrastructure
(Info at July Cloud Conference)

Why SAAS is the new business imperative…

• Changing economic conditions
• Dual investment strain (digital and traditional)
• Speed and complexity of technology
• Modular attributes
• Skill sets required
• Lack of training budgets
• Service capabilities grow in importance
• Cloud Scalability

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