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2019 | Buch

Managing Media and Digital Organizations

verfasst von: Eli M. Noam

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft" , Springer Professional "Technik"

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Über dieses Buch

What does it take for success in the media business? Creativity, innovation, and performance, of course. Plus experience and good judgment. However, it also requires an understanding of the principles and tools of management. This book summarizes the major dimensions of a business school curriculum and applies them to the entire media, media-tech, and digital sectors. Its chapters cover—in a jargonless, non-technical way—the major management functions. First, creating a media product: the financing of projects and the management of technology, HR, production operations, intellectual assets, and government relations. Second, harvesting the product created: market research, marketing, pricing, and distribution. And third, is the control loop: media accounting and strategy planning. The book’s interdisciplinary approach goes beyond an industry-by-industry coverage and centers around management functions.

In the process, this book becomes an indispensable resource for those aiming for a career in the media and digital field, both in startups and established organizations. It is also a work that helps advance the entire field—the management of information resources and products—to a more central role in business analysis. This book is designed to help those already in the sector or those joining it to become creative managers and managerial creatives. It aims to make managers in this field more knowledgeable, less blinded by hype, more effective, more productive, and more responsible.

Inhaltsverzeichnis

Frontmatter

Correction to: Managing Media and Digital Organizations

Eli M. Noam

Overview

Frontmatter

1. Introduction

Abstract

The author discusses whether there is the need for a distinct “media management” and what the different approaches to the study and the teaching of media management have been. This book proceeds as a matrix of major management functions such as marketing, financing, human resource management, distribution, pricing, and so on, applied to the several media industries.

Eli M. Noam

2. The Information Environment

Abstract

The author presents an overview of information as an input and output in the economy and discusses the emergence of an information society and the drivers of change. Thirteen key characteristics of the new information economy are then identified. These include: extreme economies of scale; network effects; divergent cost trends in the value chain; excess supply; price deflation; non-normal distribution of success; importance of intangible assets; the presence of non-maximizers of profit; public good characteristics; high government involvement; and more. The author then draws out the managerial implications.

Eli M. Noam

Production

Frontmatter

3. Production Management in Media and Information

Abstract

What are the factors for success in content production, as exemplified by the dominance of Hollywood? Several conventional factors are found to be secondary: market size, language, stars, and vertical integration of content with distribution. In contrast, success factors are organizational structure, with networked production and clustering; mechanisms of risk reduction; and a sophisticated post-conception product development mechanism. The author discusses managerial tools for production, including those of budgeting and budget control, production design, supply chains and inventory management, production scheduling, quality control, capacity planning, and productivity measurements. This is followed by a look at the production system for the next generation of content. The case discussion looks at how the French media company Vivendi and its subsidiary Canal Plus aim to match the Hollywood companies.

Eli M. Noam

4. Technology Management in Media and Information Firms

Abstract

The author discusses how R&D is managed, a particularly important function in a sector characterized by disruptive technology. Tasks covered include: technology assessment; selection of R&D projects for funding; integration of technology with firm strategy; the location of R&D activities; the organizational structure of R&D activities; budgeting; implementing R&D alliances; standards strategy; and collaboration with open community-based R&D. The second part of the chapter covers the six stages of media-tech convergence and introduces the various elements that jointly form the media-tech sector. The first convergence was that of calculating devices, components, and control code, resulting in computers. The second convergence is that of computers with communications hardware, and includes telecommunications, cellular telephony, and the Internet. The third convergence joins the elements of consumer electronics, the fourth those of content, and the fifth leads to the emerging online-based media cloud. Anticipated is the next convergence, that of bio-electronics and human cognition. Throughout the chapter, the Japanese firm Sony is discussed with its struggles to integrate across multiple hardware and content segments.

Eli M. Noam

5. Human Resource Management for Media and Information Firms

Abstract

The author discusses the Human Resource Management (HRM) function and its organization, looking first at “hard HRM” (financially oriented HRM by the numbers). This includes finance approaches to investment in human capital; internal labor mobility; the structuring of organizational hierarchies and compensation; and measures of productivity. The second part of the chapter deals with labor unions. It covers different segments of media and digital employees: the industrial workforce; crafts (skilled) people; creatives; freelancers; and middle managers. The third part of the chapter covers HRM by human touch: “soft control” or managing and motivating the creative workforce; models of personality and of motivation: the need for esteem and self-actualization; and corporate culture. The author also discusses the impact of the digital economy on employment and the consequences for digital management. The Disney company is analyzed as the case study for HRM practices.

Eli M. Noam

6. Financing Media, Information, and Communication

Abstract

How are companies, products and projects funded? The chapter first covers internal funding and self-financing. It then moves to debt financing—senior and subordinated debt, commercial paper, corporate bonds and so on. Also discussed are other types of debt: securitization; vendor, buyer and lease financing; and government loans. The chapter then moves to the various types of equity financing: limited partnerships in films and technology; private equity; angels; crowdsourcing; venture capital; and initial public offerings (IPOs) and secondary public offerings (SPOs). The last part of the chapter investigates media ownership and its impact on content—by individuals, institutional investors and governments. The concluding section deals with the question of a capital structure that is optimal for company operations and value. These themes are tracked in the case discussion, which compares the financing options available to an established media firm (Time Warner) and to a start-up.

Eli M. Noam

7. Intellectual Asset Management

Abstract

The chapter deals with the key role in media and digital organizations played by companies: how they create, protect, and manage intellectual assets. Different assets are discussed: trade secrets, contract-created rights, patents, trademarks, and copyrights. We learn how to get a patent, the frontiers of patents, and how to deal with patent infringements. For copyrights, issues covered are what can be copyrighted, international copyright protections, and “fair use.” The next section deals with the commercialization of intellectual assets: how to value intellectual assets and how to license them. The final section deals with the challenges of piracy; and the various protection strategies of law, technology, and business responses. Reform proposals and new approaches such as open-source are discussed. Throughout the chapter, the case discussion tracks General Electric’s intellectual assets, and how much of General Electric’s value and profits are based on them.

Eli M. Noam

8. Entertainment Law and Media Regulation

Abstract

The chapter deals with “non-market” forms of competition with rivals in the public sphere—litigation, lobbying, public relations, and regulation. The legal function in media firms is discussed first, with the dimensions of compliance management and investment calculus for litigation. The next themes are the management of lobbying and of public relations, and how much to spend on them. The chapter then covers the regulatory process, both by industry self-regulation and by government, and how it is used strategically by companies. The concluding sections cover substantive media law: content restrictions such as libel and slander, morality and child protection, the regulating of advertising, antitrust and anti-monopoly law, rules against price discrimination, profit and investment regulation, regulation of “universal connectivity,” support for national industry, spectrum allocation, privacy protections, and the future of video regulation. The case discussion covers the non-market competition between Comcast and Google.

Eli M. Noam

9. Demand and Market Research for Media and Information Products

Abstract

The chapter discusses how media companies organize their demand research. How do they collect data? At the user level, the approaches to data collection include surveys, focus groups, test marketing, demand experiments, and biometric testing. Automatic audience metering has made great inroads, especially for websites. Measurement at the provider level include retailer surveys, self-reporting, point-of-sale measurement, and the tracking of downloads, Internet traffic, website visits, and exposures to advertising. Once the data has been collected it must be analyzed. “Big data mining” techniques include statistical inference; clustering and anomaly detection; and association, correlation, and econometric regression; also discussed are techniques of A/B testing, conjoint analysis, and diffusion models. The final section deals with challenges in audience and market research: coordinating and integrating multiple user data flows, internationalization, privacy issues and restrictions on data collection and uses, and the creation of new research methodologies. Tracking these themes is the case discussion which looks at the market analysis by the media company Viacom for three interrelated new media products.

Eli M. Noam

Marketing

Frontmatter

10. Marketing of Media and Information

Abstract

The marketing of media products and services differ from the marketing of other products in a variety of ways, in particular because it is often two-sided: it requires the promotion of media products to end users and for the promotion of the media outlet to advertisers. The authors discuss the role of marketing in the product design. The analysis of positioning requires demand and audience studies, diffusion models, competitor analysis, and branding. Several dimensions of promotion are then discussed: timing; word of mouth; publicity and public relations; and product placement. The authors then look at advertising: optimal budgets and the mix of media choices. Critical to success is promotion to advertisers, retailers, and distributors, all with their own techniques. These marketing activities have been impacted by the Internet with its new tools and approaches. The authors then analyze the promotion of media products—film, TV channels, music, books, newspapers, magazines, videogames, and technology. Next discussed is the regulation of marketing. The authors conclude by investigating marketing performance tools. The issues are highlighted by a case discussion on the marketing efforts for a planned magazine by Condé Nast.

Eli M. Noam

11. Pricing of Media and Information

Abstract

The chapter deals with how firms organize and manage the pricing of media and information products. Pricing strategies vary and include those based on cost, those that are market-based and may vary by peak-load, and those based on value. To determine the willingness to pay, one may use techniques of econometric estimation, conjoint analysis and hedonic prices. Key strategies are keeping pricing above cost to reduce consumer surplus. Protection from price variations takes place through hedging. Legal constraints exist for price fixing, resale price maintenance, price discrimination and predatory pricing. Technology enables an individualization of pricing, and rapid variations are possible. But it also leads to the spread of “free” alternatives. A major theme of the case discussion centers on the struggles of Encyclopedia Britannica to deal with the free online models.

Eli M. Noam

12. Distribution of Media and Information

Abstract

The chapter covers distribution networks, the major trends in electronic distribution, and the economic characteristics and implications. The author identifies the various “architectures” of distribution networks and also reviews the analytic tools for distribution management created by different disciplines, from sociology to regional planning, electrical engineering, statistics, and operations research. This leads to tools of network management, supply chain logistics, and inventory control. The author reviews wholesale distribution and its trends in a number of major media industries, such as film, books, and consumer electronics. A similar review of retail distribution follows. The business models for online media retail are discussed. A final question is the impact of distribution on content. The case study centers on the role of distribution in the future of the major German media company, Bertelsmann.

Eli M. Noam

Feedback Loop

Frontmatter

13. Accounting in Media and Information Firms

Abstract

The chapter proceeds by presenting the major financial statements of organizations. Profit accounting is the first such document used for projects and limited partnerships. The other major financial documents for investors are the balance sheet, the income statement, the cash flow statement, and pro forma financial statements. There is a discussion as to how these financial statements are used to evaluate company performance and valuation, covering various ratios and metrics such as leverage, P/E, performance measures, and financial returns. A discussion of balance sheet assets follows. When it comes to liabilities, topics covered are stock options, pension plans, and off-balance-sheet financing. The chapter continues with income statements and their various definitions such as EBITDA, before dealing with managerial accounting—capital budgeting, profit centers, overheads, internal transfer pricing, and the tracking of costs. All of these accounting activities are assisted by an increasingly powerful information technology. The case study centers on Disney’s accounting practices.

Eli M. Noam

14. Strategy Planning in Media and Information Firms

Abstract

The chapter deals with strategy setting in the media and information sector. It begins with an introduction of major theories and tools of business strategy: business policy, game theory, competitive analysis, core competencies, and the adaptability approach. The second part of the chapter deals with the process of formulating strategy and how the various constituencies engage in strategic planning. The main elements are an assessment of the external setting of the company: markets, users, competitors, and barriers to entry. The internal assessment covers a firms’ core competency and competitive advantage, its leadership, and its human, financial, technological, and intellectual asset resources. These analyses are applied to identify strategy options. The generic options for media and digital companies are then discussed. How does one select among strategies? The chapter lays out several selection methodologies. A final issue concerns the implementation of the strategy along with the challenges of internal communications, reorganization, budgeting, monitoring, control, and feedback.

Eli M. Noam

15. Concluding Observations

Abstract

The final chapter responds to the question whether management in the media and information sector is different from that of business in general. There are many fundamental challenges for media managers in the form of a search for new models of business, industry structure, content, and government regulation. The management of media and digital activities requires an understanding of the past, and how to apply today’s fundamental changes to the future. Properly analyzed and implemented, it points the way to how organizations succeed in economic terms, how creativity is fostered, and how individuals maintain personal responsibility.

Eli M. Noam

Backmatter

Titel: Managing Media and Digital Organizations
verfasst von: Eli M. Noam
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-71288-8
Print ISBN: 978-3-319-71287-1
DOI: https://doi.org/10.1007/978-3-319-71288-8