DICoDE 2011: Tools to Innovate in Media, Entertainment and Telecom Universes

DICODE 2011 FABIAN TILMANT

Digital Media Ecosystems

& Business Models

TOOLS TO INNOVATE IN MEDIA, ENTERTAINMENT & TELECOM UNIVERSES

Well, there are disputes !whether Darwin really said !this or not.!But it’s still pretty !inspiring, isn’t it ?!

DICoDE is a set of tools that helps Media, Entertainment and Telecom professionals to better understand the complex systems they’re active in since the rise of digital technologies in their business.

Following last year’s presentation, I’ve worked further on the concept, the design, the scope and the acronym meaning of my Digital Information Consumption and Distribution Ecosystems tool. Oh yeah, I’ve also added a Business Models tool too !

Here’s the 2011 update !

DICODE 2011

If you want a detailed explanation !of the Universes (Media, Telecom, !User Interface, User) and steps!presented in the model, the!History of DICoDE, the main!leading concepts at play… please!have a look at the 2010 version!

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I’ll be right here waiting for you!to come back !!

Zc beeeneeea Fabian Tilmant – www.DICoDE-thebook.com

http://bit.ly/DiCoDE

http://bit.ly/DiCoDE

http://www.DICoDE-thebook.com

2 TOOLS IN THIS YEAR’S VINTAGE Ecosystem Mapping & Business Models mechanics

This one helps you understand the complex system(s)!"" "" "" "" "" "" "" " "" "you’re active in.!"" "" "" "" "" "" "" " "" "It’s indeed an !"" "" "" "" "" "" "" " "" "update of last!"" "" "" "" "" "" "" " "" "year’s. Simpler.!

This other one helps you !understand the value creation !and extraction mechanics!at play in Digital Ecosystems and see how you score compared to your partners !



DICODE STRATEGIES Key principles

The purpose of DICoDE Strategies is to aid you in identifying, comparing and finding opportunities in terms of products, services, features, partnerships, market niches and more by mapping out your activities and ecosystems.

It’s a tool designed to help you understand, adapt and innovate in your business fields to create new value and increase your profits by grasping new opportunities.

For practical application, fill up DICoDE Strategies by putting all the actors in your ecosystems on the board. Trigger discussions, challenge current situations, put yourself in the shoes of your user, your competitors, your partners, and brainstorm while completing DICoDE Strategies. Interesting outcome must be logged into a mind map to be directly actionable.



LET’S TAKE AN EXAMPLE Apps Distribution Ecosystem: iPhone



They’re taking quite some space, right ?!What? No in-app purchase via!credit card ? Everything must!pass via their iTunes account ?!What’s the workaround ?!

How do other mobile apps ecosystems look like ?!What about Android ?!

We have some contingency on!Connectivity. Let’s discuss with !local Mobile Carriers ! !

LET’S TAKE AN EXAMPLE Apps Distribution Ecosystem: iPhone



OK, less intrusive and more open to partnerships, apparently !!Aren’t there Mobile Carriers and/or Device Manufacturers which have!custom App Store and/or Custom OS and/or Partnership with Google !for using the SIM-based authentication for billing ?!

YES ?!? Let’s analyse it further…!

LET’S TAKE AN EXAMPLE Apps Distribution Ecosystem: iPhone vs Android



LET’S ANALYSE IT FURTHER... Vodafone in Europe and Verizon in the US

Seems like Vodafone and Verizon, after having created App Stores on their own, are struggling with Samsung which also wants to play the aggregator and biller roles. And rising Google Wallet will make it even more difficult in the future ! And we haven’t yet talked about PayPal, Boku, PaymentOne, Amazon, VISA… nor Android OS hyper-fragmentation (manufacturers, versions…). Lots to see !!



Let’s not forget to look at it through!the Advertising, Content/Developers and!Social Media/UGC lenses…!

…and regulation, active at several levels throughout!the whole chain: copyright, user privacy…!

Are there User’s elements!we also need to take into !account ? New trends ? !New kind of audiences ?!New behaviours…?!

And what about META!trends like Global Warming!or Economic Downturn ?!Any influence ?!

And it also works with Consumption!Ecosystems. Try to map Deezer or Spotify !!

LET’S ANALYSE IT FURTHER... What else is at play in this Ecosystem ?



DICODE BUSINESS MODELS Key principles

DICoDE Business Models provides insight into the economics of New Media ecosystems. This model follows the path through the 4 levels of any one-to-one relationship in Digital Distribution and Consumption: Discovery, Interaction, Relationship and Transaction.

Each cycle is based on the principle that all actors in an ecosystem create value together. If the user trusts that the value proposition is worth the “price” requested of him, (s)he will pay! But not always and in fact, decreasingly through money.

I identified 3 other currencies, each corresponding to one of the first 3 levels of the relationship: Attention, Engagement and Data.

Together with Money on the 4th level, these currencies represent value that is extracted by all actors in the ecosystem. Now you can spot the winners and the losers in your ecosystems!



4 STEPS TO MONETIZATION 4 Levels of Relationship, 4 Currencies



When the user first accesses the product or service, we say that (s)he

is entering the Discovery phase. This is the lowest level of 1-to-1 relationship between the content and the user. Best case for Discovery model is Display Advertising. Usually, companies give more value than they extract at this stage.

4 STEPS TO MONETIZATION Discovery > Interactivity > Relationship > Transaction



Attention is the traditional currency of advertising. The deal with advertisers is that editors divert some of the

attention they gain from users thanks to the content they present to a 30s clip, a banner, a full magazine page... In exchange, advertisers are ready to pay publishers and broadcasters for this Attention.

4 STEPS TO MONETIZATION Discovery: capturing the user’s Attention



When the user starts engaging with the content, we enter the Interactivity phase. This level creates interaction between the user and the content but no real relationship. Best advertising case for Interactivity level is Branded Content. Monetization is usually achieved through « per action models ».




Engagement is the currency that interactive channels enable. Not only eyeballs can be captured, like in the Attention model, but interaction with the user. Thanks to a click, an advertiser can interact (through a game, a poll, a contest...) or direct the user to one of its pages. This is the model Google forced with AdWords and AdSense. This is also what powers affiliation programs and CPC campaigns.

4 STEPS TO MONETIZATION Interactivity: capturing the user’s Engagement



At this stage, the user starts a real Relationship with the content. Data can be captured in order to personalize the user’s experience with the content.

Best case for Relationship interaction is achieved through Social Media. This profile data can be used to monetize the investment done until now.




Data is the most valuable currency besides Money. Indeed, refined profiles of individuals as well as organized databases are a unique tool for corporations to tailor great solutions to their users or monetize the traffic they succeed to concentrate.

4 STEPS TO MONETIZATION Relationship: capturing the user’s Data



Here, the user will enter a Transactional relationship with the product or service. This is the highest level of the 1-to-1 relationship in a digital ecosystem.

Monetization scheme is pretty simple: user pays with money.




Well… Do I really need!to write about Money ?!

4 STEPS TO MONETIZATION Transaction: capturing the user’s Money



4 STEPS TO MONETIZATION ...and beyond: Customer Care, Cross-sell and Up-sell

As said, Transactional relationship doesn’t replace the other levels. All levels are activated at this stage. After the first purchase, the user expects to be treated as a customer now. That’s where we activate loyalty, customer care, stimulation... in order to retain the customer in the Ecosystem and satisfy his/her future expectations.



4 STEPS TO MONETIZATION ...nurturing TRUST

This is also where we can connect the user to other Ecosystems we’re active in.

And, as said, it’s important to keep on catching his/her Attention, trigerring his/her Engagement, managing an active Relationship and making Business !

But the most important of all is to keep his/her TRUST !



DICoDE 2011 Main Findings

Let me summarize my main findings using these tools during the whole 2011 year:

1.  You’re not playing alone anymore. Ecosystems are before all Partnerships ! 2.  Noone owns the Customer. But some own (a big chunk) of Ecosystems ! 3.  You create value all together ! And you need to agree on who’s extracting how much

value, in which currency.

4.  The value of an Ecosystem equals the value of its weakest element ! So help your partners to understand it and to grow ! You have no interest in them going bankrupt !

5.  Credentials layer is key to creating and extracting value on 3rd and 4th levels, Aggregation layer is key to transcending and including a level to the next one.

6.  There can be several Aggregators in Ecosystems, especially in new Media ones (Digital Magazines, Digital Television...). Think App Stores...

7.  Main enabler of Value Creation is User Convenience.

If you have!questions, just !contact me !!



DICoDE 2012 Perspectives

Here are the tracks I am working on for the 2012 edition:

1.  A checklist for rating performance of Platforms. The 3 main criteria are Utility, Solidity and Agility, which make this project code-named #PlatformUSA.

2.  A dynamic between Qualitative User Research (think Field Study) and Quantitative Market Research that leverages on each other to validate User Insights. I am also interested in Community-based Market Research.

3.  And most of all an end-to-end Innovation Methodology, possibly for any sector, using Design Thinking and System Thinking as wheels to put it in motion.

Get in touch if you want to collaborate on one of them ! Thanks !!


Fabian Tilmant

Consultant in New Media Mobile Expert

Passionate by Telecom-Media Convergence and Media Transformation Creator of DICoDE models

www.fabnet.be - [email protected] - twitter: @fabnet_be


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