The document discusses how the digitization of the Australian economy is continuing at a rapid pace. Key points include:
- Australians have widely embraced digital technologies like internet, social media, mobile apps, and e-commerce. Most businesses, including small and medium enterprises, now have an online presence.
- Infrastructure investments like the National Broadband Network and 4G networks are expected to further increase bandwidth and digital adoption among consumers and businesses.
- The digital economy is projected to grow at 7% annually. Significant additional digital penetration is anticipated in industries like financial services, telecommunications, retail, education, and transport/logistics.
- For businesses to succeed, corporate leaders must direct resources to enable the entrepreneur
1. TAKING LEADERSHIP
IN A DIGITAL ECONOMY
BY TELSTRA CORPORATION LIMITED
AND DELOITTE DIGITAL
November 2012
deloittedigital.com.au
telstra.com
2. A NOTE FROM DAVID
Consumers and businesses are rapidly embracing digital technology and this is redefining
the traditional transaction model.
We now have a new generation of globally connected consumers and businesses who
behave very differently – and we must all adapt to these changes and take advantage of
the new opportunities.
By the end of the decade we will have connected just about every device to next generation
networks, from smartphones and offices of the future, to educational resources and digital
home appliances.
The changes we are talking about are transformational. Everything, everyone and every
place will be connected.
This will make us more innovative and more competitive – and change the way we live and
work for the better.
The challenge ahead is how to best use the tremendous creativity, innovation and
capability of Australians to participate in these new opportunities – whether it be
m-commerce, Big Data, robotics or social media.
Every part of our economy can benefit from this new era of connectivity.
Our role, as Australian business leaders, is to help build a 21st century economy that
is locally accessible and globally competitive.
As a nation, we can lead the world and create positive change.
David Thodey
Chief Executive Officer
Telstra
1
3. A NOTE FROM GIAM
The world is changing. The internet has transformed the Australian economy over the last
10 years, and is poised to play an even greater role in our daily lives and businesses as
Australia positions itself to become a leading digital economy.
The pace of technology change is growing exponentially, and in the digital age,
the only constant is change.
Disruption can sneak up on you unexpectedly. For your industry, how will you know that
disruption is coming before it’s too late? Will you know your competitor in a global market
that disrupts existing industry & country boundaries?
As a nation, we need to consider whether we are simply building better ways of
delivering the same products and services. Or are we creating truly new and different
business models? Companies that miss this distinction are at risk of becoming irrelevant
in the digital economy.
Realistically, digital creates more opportunities than dangers. As leaders, the choices we
make will be crucial in whether Australia takes a position of leadership at the forefront of
this change.
Our country’s future prosperity will depend on visionary leadership, enabling our Australian
entrepreneurial spirit, becoming more agile in our decision making and investing in the
talent required to support the digital economy.
As with all of our work at Deloitte, we hope that this white paper enhances your capacity to
act. In the digital age, how quickly and how thoughtfully we act will determine our future.
Giam Swiegers
Chief Executive Officer
Deloitte Australia
Taking leadership in a digital economy 2
4. INTRODUCTION
To some extent, Australia is already Leading our economy and our country
well positioned to be a driving force of the successfully through this change requires
digital revolution. Our infrastructure is well wisdom, courage and conviction.
developed, consumers and businesses are
rapidly embracing digital services and we This whitepaper outlines the expected rate
have talented people who can innovate of growth in the Australian digital economy
and execute. and highlights the choices incumbent
corporations face as a result.
To fulfil Australia’s potential to take a
leadership position in an increasingly Telstra itself is such an incumbent
global and digital economy, however, corporate leader and has started its own
Australian corporate leaders must accept digital transformation to ensure its future
this accountability and direct their success. Through its core business in
resources accordingly. mobility, networks and cloud computing,
Telstra is also a provider of infrastructure
Increasingly, a complex digital ecosystem enablers to the digital economy.
consisting of technologies such as web-
delivered services, mobile applications, Deloitte advises and implements
social media, machine-to-machine (M2M) digital solutions for businesses seeking
and many others move centre stage to win in their transformation through
creating opportunities for innovators, digital solutions.
yet challenging laggards.
3
5. CONTENTS
The digitisation of our economy continues at pace 5
Immense disruption ahead 9
Incumbents must respond 15
How incumbents win 20
Conclusion 25
Taking leadership in a digital economy 4
6. THE DIGITISATION OF OUR
ECONOMY CONTINUES AT PACE Figure 5: Australian SMEs taking orders for goods and services online, by industry sector, April 2011
Wholesale trade
The basics are in place The federal government’s National Broadband
Manufacturing
Network (NBN) and the Telstra lead 4G mobile
Transport/storage
Today, Australia has comparable Accommodation/cafes/restaurants are infrastructure investment
network rollout,
broadband adoption and connection commitments that are expected to facilitate
Retail trade
speeds to many of its peers in the continued future increases in both bandwidth
Finance and insurance
developed world. and customer adoption for fixed and wireless
Communications/property/business services
connectivity.
Personal services
Whilst not necessarily on top of the league
Building/construction this investment is Australia’s
An outcome of
(yet), broadband adoption has seen 30%
year on year growth 1 in 2012, and has relatively high smart phone penetration,
Health/community services
steadily grown over the past decade or so. which today stands at over 50%4.
0 10 20 30 40 50 60 70 80
Australia already has the 14th largest % of SMEs in Australia
number of 3G subscribers of any country in Online Experience of Small and Medium Enterprises 2011, October 2011
Source: Sensis, The
the world2 and the OECD places Australia
Note: Survey conducted in April 2011
8th by wireless broadband penetration, just Figure 1: Global broadband adoption and connection speed data
behind the US, but well ahead of the UK, 100
Spain and France3.
South Korea
80 Switzerland
Japan
Broadband adoption (%)
Hong Kong
Germany
60
USA
UK
Russia
Israel
France
40 Australia Spain
20
China
India
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Average connection speed (Mbps)
Developed countries Source: Akami 2012
Developing countries
5
7. THE DIGITISATION OF OUR
ECONOMY CONTINUES AT PACE
Consumers are embracing Given our high smart phone penetration,
it’s not a surprise that Australians are also
digital services establishing a love affair with mobile apps.
Australia downloads more than 60 million10
Australian consumers have embraced
apps a month making us the fifth largest
digital offerings with relish, leaving few
per capita consumers of apps anywhere
traditional products or services
in the world. Globally one billion Android
unaffected, including:
applications are downloaded each month11.
• Internet search
Australians are also prolific online buyers
• Digital content
with the growth in online sales five times
• Social media
that of traditional retail12. And double digit
• Mobile applications
growth is forecast for online sales over
• E-commerce
the next five years13.
The number of internet searches by
Australians has grown at an annual
rate of 30% and a recent Nielsen Figure 2: Australian Google search growth for banking,
Figure 3:report highlightedon each usage
Average time spent that more than 40% insurance & investment Fi
occasion (minutes)
of Australians research their purchases 800
online5, making web search a de facto 700
minutes per visit
17.86
e-commerce hub. 600
Google growth index
Average
a
500
Percenatage
According to 9.15 ACMAs Digital Australians
the 8.67 400
survey, 33% of Australians watch online 300
video content each month6. 200
Facebook Twitter Linkedin 100
Social media is experiencing
Source: Sensis 2012 0
2007 2008 2009 2010 2011
phenomenal growth with 62% of Years
internet users reporting they use social Investment Banking
Insurance
media7. Facebook, of course, has So
Source: Google 2011
seen incredible success with over 11M
33 Australians using the service regularly8
Figure 10: Average Net Promoter Score Across Industries Tr
spending an impressive 18 minutes on Index Figure 2: Aust
ag
5 Figure 3: Average time spent on each usage 4000 insurance & in
the site per visit and over 2
20% of all
occasion (minutes) 5.8
0 internet time is now spent on 3400 800
5.6
3000
social networks9. 700
minutes per visit
17.86
5.4
-5 600
Google growth index
-9
Average
South Korea 2000 5.2
NPS
15 Switzerland 500
-10 5.0
Japan 9.15 8.67 400
-15
4.8
-15 Hong Kong
1000 300
-19
4.4
200
Germany -20 15.59 4.2
Facebook Twitter Linkedin 0 100
USA Jan’12 Apr ‘12 Jul ‘12 Oct ‘12
4.0
UK -25 Source: Sensis 2012 Ratio TTM 0
Wal-Mart Stores PE 2007
Banking Health Ins Home Ins Mobile
Israel Amazon.com PE Ratio TTM
operators
Source: Y-charts 2012 Inve
ain Insu
Source: Engaged Marketing 2010
Source: Goog
So
33
Figure 10: Average Net Promoter Score Across Industries Index
Taking leadership in a digital economy 6
5
2
8. THE DIGITISATION OF OUR
ECONOMY CONTINUES AT PACE
Businesses have gone digital In some cases, social media and e-commerce
have allowed local speciality businesses to
The majority of small and medium extend their reach beyond their traditional
enterprises (SMEs) are now online, 60% catchment area as well.
have a web presence and the majority of
those sell goods and services on the web14. For example, Cuckoo Clock Nest
(cuckooclocknest.com.au), sells German
Australian SMEs are also embracing cuckoo clocks out of their shop in Eagle
social media. Approximately 27% of Heights Queensland, but have
internet connected SMEs are using some national reach through their web site.
Figure 2: Australian Googleof social media in their business
form search growth for banking,
insurance & investment
operations15. The ease to set up a Twitter Figure 4: Proportion of Australian SME’s that are online
800 account or Facebook page coupled with 70%
700
the cost effectiveness of this relatively 60%
600
cheap advertising and customer service
Google growth index
50%
500
medium is proving very compelling.
Percenatage
40%
400
30%
300
20%
200
100 10%
0 0
2007 2008 2009 2010 2011 1997 1999 2001 2003 2005 2007 2009
Years Years
Investment Banking Website Sell online
Insurance
Source: Deloitte 2011
Source: Google 2011
Figure 5: Australian SMEs taking orders for goods and services online, bydecade: letter volumes
Trends over a industry sector, April 2011
Index 140
against delivery points
4000 Bah
Wholesale trade 76
Broadband household penetration (%)
5.8 12
3400
120
Manufacturing
3000 5.6 72 11
Qa
Transport/storage 5.4 70 10100
Accommodation/cafes/restaurants
2000 5.2 62 Singa
9
5.0 80
Retail trade 59 8 Fr
1000 4.8
Finance and insurance 57 7
Aus
4.4 60
Communications/property/business services
15.59 4.2
57 6 India China
0
Jan’12 Apr ‘12 Jul ‘12 Personal
Oct ‘12 services 4.0 56 5 40
1
2
3
4
5
6
7
8
9
0
Building/construction 55
-1
Wal-Mart Stores PE Ratio TTM
-0
-0
-0
-0
-0
-0
-0
-0
-1
10
01
02
03
04
05
06
07
08
09
Amazon.com PE Ratio TTM
20
20
20
20
20
20
20
20
20
20
Health/community services 37 20
Source: Y-charts 2012 Delivery points millions
Mail items billions
0 10 0
Source: 30
20 40 50
Australia Post 2012 60 70 80
0 2
% of SMEs in Australia
Source: Sensis, The Online Experience of Small and Medium Enterprises 2011, October 2011
Note: Survey conducted in April 2011 Develope
Developi
Figure 1: Global broadband adoption and connection speed data
100 Source: Aka
South Korea
80 Switzerland
7 Japan Protecting the c
typically more c
(%)
Hong Kong
9. THE DIGITISATION OF OUR
ECONOMY CONTINUES AT PACE
The digital economy is The most significant additional digital
penetration is expected to be in financial
poised for 7% pa growth service, telecommunications, retail trade,
education and transport and logistics.
Assuming an active role of business and
government in encouraging the adoption Figure 6: Internet direct contributions to GDP
of digital services, the direct contribution 32% SHORT
of the internet to the Australian economy of the
Australian
try economy
is forecast by Deloitte to grow at 7% per
$50b
annum over the next five years, roughly
Retail trad
double total GDP growth16.
2011
60
And whilst the total direct contribution of
30 54
37
22 25
the digital economy is only $50b, a fraction
34
31 26 Arts and
of the26GDP, the indirect contribution to the
34
18
$70b
rest of the economy is fundamental.
22
Timing
Every industry will be affected
0
44 52 31 51 46
by this change, and all sectors will
48 45 58 43 48 49 60 54
2016
eventually be “more digital than not”.
17%
of the
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Source: Deloitte 2011
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Figure 7: Digital Penetration by Industry
Ag
dt
Pr
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100
90
80 60
30 54
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22 25 34
60 10 31 26
Digital potential
26 34
7 2009 14
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Pr
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Non-digital core
7 Additional digital penetration
Current use of digital technologies
6
5 Source: Deloitte 2012
1
-1
10
Taking leadership in a digital economy 8
10. IMMENSE DISRUPTION AHEAD
Just as the digital economy provides huge benefits to consumers and businesses,
it equally poses a threat to hitherto comfortable incumbents, changing goal posts,
raising customer expectations and opening the field for new competitors, globally.
It’s only a matter of time Eighteen industries are mapped with respect
to their vulnerability to disruption from two
Virtually every sector can expect to perspectives: the size of the impact and the
face changes rivalling those of the imminence of change.
industrial revolution.
As these changes will play out over many
Some industries may face extinction, years, timing of specific changes is hard
new sectors are being created, and others to predict.
are being transformed beyond recognition.
It is eye opening to realise that it took 48
According to Australia’s Digital Future years from the invention of electricity to the
to 2050 by IBISWorld17 15 different industry invention of the light bulb, 65 years to the
sub-sectors face extinction due to factors invention of the telegraph and 72 years to
such as size, international competitiveness, the invention of powered flight.
the potential for displacement, and technology.
The Internet Protocol (IP) which may be
Those 15 sub-sectors include: books and considered the “electricity of the digital
magazines, newspapers, directory and age” was invented in 1974, so is only
mailing list publishing, software publishing, 38 years old. Google was only launched
radio broadcasting, and free-to-air TV 14 years ago and Facebook is only
and cable TV. 8 years old.
Assessing the timing and severity of We’re only at the beginning.
likely impact, Deloitte’s “digital disruption
map” classifies about one third of the
Australian economy into the most pressing
“short fuse, big bang” quadrant.
9
11. IMMENSE DISRUPTION AHEAD
Figure 8: Digital disruption map
32% SHORT FUSE, BIG BANG LONG FUSE, BIG BANG
33%
Impact (% change in business)
50
of the of the
Australian Australian
economy economy
45
ICT and media
Retail trade 40
Finance
Education
35 Transport
and post
Professional services Health
30
Agriculture Recruitment
and cleaning
Arts and recreation
25
Real estate Government services
20 Utilities
Timing (years)
15
0 1 2
Construction 3 4 5
Wholesale trade
Accommodation 10
and food services Mining
Manufacturing
5
17% 18%
of the 0 of the
Australian Australian
economy SHORT FUSE, SMALL BANG LONG FUSE, SMALL BANG economy
Source: Deloitte 2012
Taking leadership in a digital economy 10
12. IMMENSE DISRUPTION AHEAD
LINKEDIN
DISRUPTING
THE CORPORATE
RECRUITMENT MARKET
Globalisation of competition
By definition, digital services are
more transportable across geographic
LinkedIn which as of March 2012, boundaries than their physical equivalents.
had more than 3 million members in Therefore domestic operators can expect
Australia, and over 500,000 members additional competition from global
in New Zealand, is disrupting the digital providers.
corporate recruiting market.
Relative to the established model No sector is experiencing this at the
of using corporate recruiters moment more than Australian retailers.
or placed advertising which can
both be expensive, inflexible and Already, 29% of Australian online commerce
have long lead times, Linkedin is conducted with international providers18.
offers an inexpensive, quick and
flexible alternative.
The proportion of online shoppers
mostly buying from overseas websites
LinkedIn has seen strong demand
has increased from 12 to 19%19.
and response for its recruitment
and marketing solutions services.
The high Australian dollar and increased
The company now has over 500
ability of global retailers to ship cost
Australian and New Zealand clients
effectively to Australia are two factors
using its Talent Solutions platform,
driving this competition.
with new customers including ANZ,
John Holland Group, OneSteel and
Mission Australia. Over 40 of the
Top 200 ASX companies now use
LinkedIn’s Talent Solutions to find
“passive talent” – where employers
can tap employees who may not be
actively looking to move.
11
13. IMMENSE DISRUPTION AHEAD
Figure 9: Top 15 online shopping sites accessed by Australians from home during June 2011
33%
of the
Australian eBay 4,297
economy
Amazon 1,623
Woolworths 1,359
Gumtree 905
BIG W 784
GetPrice Network 767
Shopping.com Network 737
Lasoo.com.au 721
DealsDirect.com.au 662
Catch of the Day 655
Myshopping.com.au 620
JB Hi-Fi 609
Kmart Australia 608
18% Ozsale.com.au 573
of the
Australian
economy FlyBuys 545
0 1,000 2,000 3,000 4,000 5,000
Source: ACMA 2011 Number of site users (000s)
Further innovation in business models
and logistics is expected to continue to
globalise online retailing. Tarazz (tarazz.
com) for instance aggregates US online
retailer sites into one interface and one
shopping cart, then consolidates the goods
into one shipment in the US and ships
that consolidated shipment to Australian
customers for one fixed fee.
Taking leadership in a digital economy 12
14. IMMENSE DISRUPTION AHEAD
FLICKR
COMPETING WITH FREE
Stuck in the middle
The digital economy lowers the barriers
to entry to a point where several hundred
million people create content and software The pioneering image hosting and
apps for free, or at least well below normal photo sharing site Flickr, offers users
rates of remuneration. the ability to release images under a
creative commons license allowing
Every minute, users upload almost other users to freely reuse an image.
100,000 tweets on Twitter, 7,000 images
on Flickr, over 600 videos on YouTube20, Flickr, which has more than
and there are now over 1 million smart 50 million registered members22
phone apps available21. and hosts more than seven billion
photos23 enables local photographers,
Increasingly, domestic incumbents of many working on a part time basis
many sectors may find themselves stuck with minimal gear and few overheads,
with high fixed cost structures between to compete on a completely different
global, massive scale digital competitors on cost base with the likes of Getty images
one hand and a large number of individual which has offices and employees in
contributors working on a totally different over 20 countries.
economic basis on the other hand.
13
15. IMMENSE DISRUPTION AHEAD
SURFSTITCH
It’s not about what you
own but what you do
In the old economy a company’s value
tends to be proportional to the value of Surfstitch.com is an online speciality
its assets. Whilst intangibles were always retailer founded in 2008. SurfStitch.
present, the majority of commercial activity com provides shoppers with over
required capital goods that could be valued 20,000 items and 318 brands including
and held on a company’s balance sheet. unique and hard to get labels, providing
significantly more choice than many
A digital business model on the other hand proprietary surf wear and
is much more reliant on the capability of department stores.
its people. The company’s value is more
likely to be a direct function of the value
Surfstitch is on track to reach revenues
it generates for its customers. In a digital
of $30 million24 and in 2009 Billabong
business model, there are few structural
International Ltd acquired a minority
advantages and lasting organisational
value is rare. interest in the organisation.
Many incumbents are still obsessed with According to Experian Hitwise,
building, buying and owning tangible assets Surfstitch is one of the country’s
and derive comfort from the perception of most highly trafficked e-commerce
“lasting value”. site, clocking up 30 million site
visits and over 250 million page
It requires a significant mind shift to views since launch.
appreciate the value of a business model
where the “assets” walk out of the door
every day and corporate leaders have to
create a work environment those assets
choose to return to the next morning.
Taking leadership in a digital economy 14
16. INCUMBENTS MUST RESPOND
Today’s corporations must respond on three levels to ensure their future:
transforming their core business to become more efficient; access new
revenue sources; develop new business models.
Allocating resources effectively requires The profound change is apparent when
good timing which is difficult in fast comparing a traditional above the line
changing markets. Due to the digital campaign with Search Engine Marketing
transformation of the economy the changes (SEM). The former has long planning lead
facing large corporations play out over times, involves several agencies (strategy,
many years, so are beyond typical planning creative, and media buying) is inflexible,
cycles and most CEO tenures. One thing has a relatively high minimum spend and
is for certain, though, being too late is delivers measurable outcomes only after
more costly than being too early. the majority of expense is already committed.
SEM, in contrast, can be deployed in real
Making the core business time by sales teams themselves with minimal
upfront cost, maximum flexibility and little
more efficient risk of failure.
Gone are the days when corporate
Overall, the cost of acquisition can be
executives could expect their operating
dramatically lowered for a digital pathway
budgets to increase year on year to keep
compared to the traditional model. Telstra,
pace with inflation and business growth.
for instance, has experienced up to 70%
Nowadays, leaders are expected to deliver
lower acquisition costs for a new mobile
more with less for the foreseeable future.
subscriber in its digital channels compared
And digitisation only accelerates
to commission driven third party channels.
these pressures.
Digital sales and marketing
Most sales and marketing departments
now have an eye on online sales and
digital marketing. However, few have
come to grips with the fact that they need
to undergo a deep change which means
that every marketer is now a digital
marketer, and sales models must be
optimised for digital channels despite
the fact that only a minority of sales are
currently delivered by those means.
15
17. INCUMBENTS MUST RESPOND
TELSTRA
CROWDSUPPORT
TRANSFORMING SERVICE
THROUGH THE CROWD
Digital customer service
Digital technologies promise radically lower
cost and more effective customer service
than traditional means.
Even with the rapid rise of the mobile web
In 2011, Telstra launched its
there is still a lot of life left in the traditional
Crowdsupport customer service
corporate website, provided it is designed
platform, a community forum where
for customer service. Most corporate sites
started life as “digital brochure racks” with users, including Telstra customers and
little real transactional service functionality. others, answer questions and help
Providing customers with rich, real time and each other. Crowdsupport entices
easy to use functions can both reduce cost community members with elements
and improve service by putting customers of “gamification”, including badges,
more in control of their affairs. status levels and user awarded
“kudos” points. The fast growing
Mobile applications and social media service already attracts over 60,000
platforms can provide effective extensions unique visitors per week, saving cost
to web based service portals. Aggressive and improving customer service.
adopters see significant reductions in their
call centre volumes and an overall drop in
crowdsupport.telstra.com
service cost as a result.
Collaboration
In addition to customer facing tools,
digital platforms can enhance how
employees collaborate and work more
effectively to service their customers.
The “social corporation” has been subject
to extensive debate and in some ways
there is no ideal model quite yet. One
thing is for sure, though, if an incumbent
does not already experiment with internal
networks and digital collaboration tools,
it will be too late to catch up later.
Taking leadership in a digital economy 16
18. INCUMBENTS MUST RESPOND
NIKE+
DIGITAL EQUIPMENT
Access new revenue sources Different approaches are described below
depending on a company’s risk appetite.
As industries transform, and traditional
sector boundaries shift, incumbents
encounter opportunities to generate Nike is a global sports equipment
new revenue. A manufacturer, for instance supplier which has built its success on
may start producing software that is product innovation and brand building.
complementary to its goods, and telco’s Nike has successfully innovated,
move into areas such as home security investing early in social networking
and “carrier billing”.
platforms to support the 2006
World Cup.
Initially, these opportunities are likely to be
relatively obvious and quite adjacent to the
core business. In 2010, Nike created a new digital
division, Nike digital sport, under the
However, the more exciting opportunities Nike+ brand. Nike+ which has grown
are likely to be less evident, and therefore to 7M customers launched innovative
require a specific effort and slightly higher products including its flagship Nike
risk appetite to be pursued successfully. fuelband which allows a user to
compare their activity to other contacts
Above all, it is important that an via the Nike+ social network, the
organisation’s customer base is open to fuelband retails for $US150 and sold
adopt new services under the same brand. out within days of its launch25.
So, a healthy core business is a necessary
foundation for the expansion into new
revenue sources.
17
19. INCUMBENTS MUST RESPOND
SCHIBSTED
FROM PRINT TO DIGITAL
Develop new
business models
Many incumbents can expect their
Founded in 1839 the Norwegian core business model to be challenged
publisher Schibsted has transformed in the course of digital transformation.
itself from a traditional publishing High prices, that were once justified by
business making 100% of its revenue high cost structures of physical assets
through print to a business that today and sustained by limited competition,
makes 35% of revenue and 55% of will collapse as low cost, intense
gross operating profit online26. It was just competition enters a market. Most
12 years ago that Schibsted made its often this occurs through substitutes.
foray into digital through an online
A powerful example is the rise of
classifieds venture.
email rapidly replacing physical mail.
Australia Post has seen a dramatic
Schibsted is utilising its established
decline in letter volumes of close to
expertise in content to move from being 9% over the last four years driven by
an established reporter of news to a electronic substitution.28
supplier of content that helps users
make commercial decisions. Business model innovation is difficult
and requires bold leadership but the
Businesses include lendo.se a finance rewards for success can be material.
broker and Letsdeal.se which brings the
Groupon model to Swedish consumers. Harvard Business Review analysis
suggests that 11 of the 27 companies
“Online services areas are charged with founded in the last quarter century
and having entered the Fortune 500
finding new revenue beyond the media
in the past 10 years did so through
house and online classifieds businesses –
business model innovation. However,
though it keeps those linkages in mind”.
this type of innovation is also relatively
– Ken Doctor, Nieman Journalism Lab27 rare with no more than 10% of global
corporate investment being focused
on developing new business models29.
Taking leadership in a digital economy 18