Presentation by Torben Lundberg, CIO at Mecom Group, used at the World Publishing Expo 2012 in Frankfurt (on 30.10.2012). Topics covered: - Mecom's mobile framework, - role in the e-commerce value chain / e-commerce model, - social buying with Sweetdeal and - sourcing of digital IT (outsourcing, nearshoring with Ciklum and cloud sourcing).

1. Session:
Digital Innovations
Title:
Digital Innovation and IT
Sourcing Strategy
Speaker:
Torben Lundberg, CIO,
mecom Group, UK

2. 1
Mecom Case Study:
Digital Innovation and IT Sourcing Strategy
WAN/IFRA, Frankfurt
October 30th, 2012

3. 2
Torben Lundberg
Mecom Group CIO

4. 3
Topics for Today
About Mobile Social Sourcing of
eCommerce
Mecom framework buying digital IT

5. 4
About Mobile Social Sourcing of
E-commerce
Mecom framework buying digital IT

6. A Pan-European Media Company
The group headquarter is based in London as Mecom is
listed on London Stock Exchange. Revenue is at €1.4bn
level whereof the majority is generated from traditional
newspaper business (circulation, advertising and related
printing and distribution) and the remaining is generated
from digital, tv, radio and e-commerce activities. Mecom
employs 10,000 FTEs and was founded in 2005.

7. 6
Platforms and Main Titles

8. 7
About Mobile Social Sourcing of
E-commerce
Mecom framework buying digital IT

9. 8
Mobile Framework - Considerations
• Challenges
- Content from many different CMS’
- No tradition for unified development
- Deploy and maintain 100+ applications
- Frequent changes to content in apps
• Strategies
- Introducing Mecom Mobile Feed Definition (XML)
- Involve local heads of divisions’
- One-build approach iOS, Android, HTML5
- Mecom Mobile Administration (back-end)

10. Mecom Mobile Framework 9
Results – smartphones multi platform
iPhone Android HTML5

11. Mecom Mobile Framework 10
Results – Cross division
Wegener Media Berlingske Media
Edda Media PressPublica Media Regionalne Wegener Media

12. 11
About Mobile Social Sourcing of
eCommerce
Mecom framework buying digital IT

13. 12
Our Role in The eCommerce Value Chain
Inspiration Buy
Partner Partner
Mecom
Import Ware- ATL/BTL Sales Customer
house Service Logistics
Production Communication Order
Exposure/ CMS
Stories Sales
Partner
eCommerce USP:
Traffic- > Inspiration -> Buy

14. eCommerce model
Flow of customers to the shops created
Customers through product promotion on in-house
TRAFFIC! media. Identity and branding as a well
known ”shopping centre”
Retailers with Retailers with online
online shops shops
• Procurement • Stock
• Products Partners provide the Partners receive the
• Pick and Pack
full product portfolio orders and fullfills
• Pricing utilising existing • Distribution
for the Mecom shops
processes

15. 14
Product Examples
Wine
Sports Events Sales: 100.000 bottles
45.000 participants Radid growth in partners
For running, cycling or sailing Wine Club
Events and
Entertainment Travel
Festivals, Tivoli Tematic travel packages
Movies, GastroWeek etc 200+ destinations

16. 15
Movie Example From Web Shop

17. 16
About Mobile Social Sourcing of
E-commerce
Mecom framework buying digital IT

18. 17
Sweetdeal – Really Effective Online Sales
• New sales and marketing model with rapid
growth in Mecom markets
• eCommerce and social media
• Optimises capacity and brand awareness
• Marketing - no cure/no pay
• Revenue share model

19. 18 18
A Random Sunday Deal: Revenue 92.000€

20. Sweetdeal Growth
Geographical growth General growth
%growth
From being a local concept with Revenue
shops in a few cities in 2010,
Sweetdeal has developed into an Permissions
international conecpt.
Cities 740%
620%
2010 2011 250 %
Number of cities with local deals has
grown 250%. Number of collected
permissions grown with 620%. Growth in
revenue is 740%. All since 2010.

21. 20
About Mobile Social Sourcing of
E-commerce
Mecom framework buying digital IT

22. 21
IT Sourcing Strategy
Outsourcing “Near-Shore” Cloud Sourcing
• Central IT and • Digital development • Mecom was early with
infrastructure outsourced to Ciklum cloud sourcing
outsourced to HCL in in Ukraine experiments in 2009
India
• Easy access to • All communication
• Application Drupal Open Source infrastructure cloud
management is 70% web programmers sourced to Google
outsourced
• Magento e-commerce • CRM cloud sourced to
• Governance over IT comptence centre for Salesforce.com
has been improved Mecom
to speed up decision
processes • HTML5, iOS and
Android programmers
working with teams in
Western Europe
IT costs has been Flexible and scalable Fast implementation of
reduced by 20% solution which reduced new software for
digital costs by 30% end-users

23. 22
IT as a Strategic Differentiator
Category Project Technical
delivery
Mobile iPhone and Android Kiev team
Tablets
HTML5
Mobile TV Delivery in Kiev and India is
Editorial websites News and tabloid Kiev team
Paid for content Contractors ready:
City guides
Communities
Commercial E-commerce Kiev team - High level of
websites Sweetdeal Contractors engineering competence
Pay sites HCL
Topic pages
Customer Targeting Kiev team - Scalable resource
intelligence Consumer marketing Netsprint
CRM and self service HCL
Data mining Contractors
- Competitive cost
Cross disciplines Payment solutions Kiev team
Single sign-on Netsprint
Search and blogs HCL
Digital analytics Contractors

24. 23
Our New IT colleagues in Ciklum and HCL
Data centres (Amsterdam, Warsaw)
IT specialists (Chennai, Apeldoorn, Copenhagen, Kiev)
IT servicedesk (Krakow)

25. Questions?