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21 March 2012 | Posted by Innova Institute

Social CRM future scenarios for the Media Industry

As part of a recent research project conducted in the Innova Institute, we have been exploring the current situation and future trends in Social CRM adoption. In this blog entry, we would like to share the key themes that are seen to define the possible future scenarios for the Media Industry.

The research results point towards three key themes: (a) "The Social Media enhances the dominance of existing players in the Media Industry", (b) "The Social Media drives the digital transformation of the industry" and (c) "Stagnation that favors consolidation of the current situation".

The first scenario (a) "The Social Media enhances the dominances of existing players in the Media Industry", depicts a situation where a high personal digitalization (Social Media gets fully integrated into the social life) coexists with a weak transformation of media industry value chain. Thus, it outlines a situation where major media groups continue dominating the market, and where user-generated content has a value for a limited audience. This scenario suggests that dominant Media groups become adoption leaders of Social CRM to generate further value added products and services to their highly digitalized customer base.

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The second scenario (b) "The Social Media drives the digital transformation of the industry", proposes a context characterized by both, high personal digitalization and high transformation of the industry value chain. In this scenario large Media groups lose market power in favor of user-generated content. Therefore, traditional Media is pressured to add a layer of content personalization through Social CRM adoption, aiming to come up with an answer for the raising challenge posed by the new sources of digital content and distribution channels.

Finally, the third scenario (c): "Stagnation that favors consolidation of the current situation" suggests that there are few changes compared to current situation. It describes a situation where there are minimal changes in the industry value chain and the level of personal digitalization among the population remains heterogeneous. In this scenario, the industry moves towards the integration of Social Media and CRM leaded by large groups, but it remains part of dual strategy to keep serving a multichannel market.

Have you changed your media consumption habits since the Social Media development?

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