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Posts Tagged ‘disruptive innovation’

Clayton Christensen, photo linked from API

Clayton Christensen‘s diagnosis of how the newspaper industry blew its Newspaper Next opportunity is dead-on.

In an interview with the American Press Institute’s Millie Tran, Christensen discusses several new disruptive challenges and opportunities in the media. But this exchange hit home with me (I added some links):

What did you think of the industry’s reception of the ambitious Newspaper Next project that you worked on with the American Press Institute back in 2006? Today, would you prescribe different things or in different ways?

CHRISTENSEN: My sense of the Newspaper Next project is that people read it as an interesting, academic exercise but somehow, whether it was our fault or theirs, the report was consumed at the level of the brain and not the heart.

Most newspapers decided that might happen to others but it doesn’t happen to us. And on a day-to-day basis, you don’t feel it until it’s over. And now there are a lot of people who are saying oh my gosh this really is happening in many ways. The degrees of freedom that are available are far more limited now than they were. (more…)

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This post was published originally on the old Newspaper Next site on the N2 Blog, Aug. 30, 2007. It was one of several posts in my API days dealing with the Newspaper Next project, an API partnership with Clayton Christensen. I blogged last week about Christensen’s most recent insights on the news businessBreaking News, in the Nieman Reports. I have updated the links. Thanks to Elaine Clisham for reminding me of my contributions to the N2 Blog.  

At a recent reception, a colleague scorned efforts by the newspaper industry in the mid-1990s to appeal to young adults.

I could join that colleague (a former newspaper editor) in criticism of many things newspapers have tried in pursuit of young readers, but he was way off in one point that he made: He said newspapers were crazy to pursue nonconsumers. Who, he asked, ever succeeded by trying to sell to nonconsumers?

“Can you imagine the automobile industry targeting people who don’t drive?” he asked.

In a social setting where I didn’t feel like arguing, I let the comment pass. But it’s a point of view that inhibits innovation.

Let’s flip that editor’s question around: What business ever grew without winning over some nonconsumers?

(more…)

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This post was published originally on the American Press Institute site on my old Training Tracks blog, Feb. 9, 2006, after the first day of a two-day Newspaper Next symposium, introducing the disruptive innovation principles of Clayton Christensen to the newspaper industry. I just blogged about Christensen’s most recent insights on the news business, Breaking News, in the Nieman Reports. I removed outdated links.

At a recent meeting of well-meaning newspaper executives, somebody suggested convening a reader panel for an upcoming conference. I suggested including some non-readers. A colleague dismissed the suggestion as a waste of time.

I wasn’t feeling particularly feisty, so I didn’t pursue the issue, but I thought the statement, and the lack of a challenge to it from other colleagues, said a lot about our business and where we are.

Wednesday I heard a lot about our business and where we could be. We could be important to those non-readers (non-users or non-consumers might be a better way to describe them).

I spent Wednesday at the Newspaper Next Symposium at the National Press Club. The symposium, which continues Thursday, presents the initial work of API’s project to develop a new business model for the newspaper industry. The project won’t be finished until later this year, but I was excited about what I heard. (more…)

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It was déjà vu all over again, as Yogi Berra would say, when I saw that Clayton Christensen was offering the news business advice on dealing with disruptive innovation.

I look back with a mix of pride, gratitude and anger on my experience with Christensen’s partnership with the American Press Institute in the Newspaper Next project. We offered the newspaper business a strategy and process for changing our business model to adapt to the digital earthquake that was destroying our foundations.

If someone had embraced and fully pursued that approach, instead of merely dabbling with it, I think that company would be dramatically better off today than the rest of the news business (it would be so different that we certainly wouldn’t call it a newspaper company, even if it still produced newspapers). I could be wrong, but I’d like that company’s chances. And it could hardly be worse off than its peers are.

And, of course, we’re such a copycat industry that other companies would have followed that company and they would be better off as well. Instead, the newspaper industry copied each other in acting timidly and protectively.

We published the first N2 report in September 2006. That year newspaper ad revenues would decline by 1.7 percent from 2005′s peak level of $47 billionmillion. In my lifetime, newspapers’ print ad revenues had fallen in only seven years, according to Newspaper Association of America data. Only two of those declines were more than 3 percent, none larger than 9 percent. On the other hand, 10 times during my life, we saw double-digit growth in ad revenues.

The newspaper business was used to the gravy train and it wasn’t ready to change. (more…)

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I won’t be blogging for a few more days about Clayton Christensen‘s Nieman Reports piece Breaking News, but I want to acknowledge it and encourage reading it. (I’ve been too busy to dig into it, but plan to do so this weekend.)

Mark Potts, one of the smartest voices about digital journalism, calls it “maybe the most insightful, important article on the future of the news business since Clay Shirky’s legendary ‘Newspapers and Thinking the Unthinkable‘.” (I blogged about the Shirky piece when it was published in 2009.)

When I was at the American Press Institute from 2005-8, we partnered with Christensen on the Newspaper Next project. I came to respect his insights about business and disruptive innovation greatly. I wish the newspaper business had followed the Newspaper Next recommendations more aggressively. I encourage people in the business to read Christensen’s latest piece (co-authored by David Skok and James Allworth). And I’ll have more to say on it soon.

Update. I have now blogged some thoughts on Christensen’s Breaking News.

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Howard Owens gives a great explanation of what makes his journalism venture successful. But he mistakenly extrapolates to some rules about what other entrepreneurs should not do.

I recommend reading Howard’s post Forget “value-added journalism” — Think, disruptive innovation and Kevin Anderson’s post Journalism: What added value will add revenue? Howard was responding to Kevin, so I suggest reading Kevin first, then Howard, then coming back and finishing this.

Howard understands correctly that his venture, The Batavian, is succeeding with a simple formula of providing lots and lots of community news. He isn’t “adding value” with many feature stories or investigative journalism that would take considerable time. Instead, he says, he is following Clayton Christensen’s disruptive innovation formula by providing just “good enough” quality, but lots of it. (more…)

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