Axel Springer in 2014: Strategic Leadership of the Digital Media Transformation Harvard Case Solution & Analysis

Axel Springer in 2014: Strategic Leadership of the Digital Media Transformation Case Study Solution

How block chain, AI, Big Data, IoT may impact on the digital strategy?

The artificial intelligence (AI), internet of things (IOT) and block-chain tend to represent the unprecedented opportunity for the companies in publishing industry. The companies would be capable of exploiting or capturing these technologies that would give a fair chance to the company for radically enhancing and streamlining the current processes, developing innovative services and products, and creating new business models.

Generally, the digital transformation is one of the complicated challenge, but the integration of AI and block chain has made it much easier. Considering partners that includes external, internal or both in processes, the system in which the multitude of the electronic parties would collaborate, transact and communicate without human intervention is highly efficient and agile. The companies that tend to embrace the digital strategy, would most likely be able in more consistent workflow, better user experience, more streamlined operations, value-added services,differentiation and competitive edge over competitors.

In addition, the IOT enables the digital content providers to move beyond the traditional entertainment and content space. They might leverage their positions in home for the purpose of offering ta plethora of new services, which includes home automation, smart metering, and utilities developed in partnership or directly within the established customer relationship & same subscription packages. These services can be offered to the customers by using capabilities to build the engaging and delightful customer experience around the content.(Newman, 2017).

Transformation governance model

The strong governance should be practiced at the business transformational program or project level. The implementation of the governance model ensures that the transformational goals and objectives are met. It most likely enables the transformation program to control ad track change decision in the business processes, capabilities and artefacts more collaboratively and effectively, thereby reducing the costs and churn.(Cristina, 2017).

The steps included in transformational governance model are as follows:

  • Recognize that the company has to change.
  • Understanding the business.
  • Recognizing the strengths that can be used.
  • Acquire the organization where it tends to make strategic sense.
  • Changing the business culture for matching the acquired companies.
  • Pushing internal change and creating showcases for the future ahead.

An effective governance model is helpful for every successful transformation program. The model supplements the speed at which the company tends to embed the transformation into its business operations for the purpose of achieving compliance (Temurnikar, 2017).

Development plan (Roadmap) based on short, mid and long-term horizons

The development in accordance with short, medium and long term horizon are discussed below:

Short term horizons

Since, the company has taken part in Silicon Valley outpost, it should strategically plan to advance the proficiency and adequacy in direction and communication alongside the innovation modernization with the most recent pattern is vital and crucial for the benefit of the company.

Mid-term horizons

Due to the fierce and strong competition in the market, the company should focus on the systems and methodology of advancement, and separations to compete with the market competitors.  The management structure and hierarchy should be upgraded for the purpose of growing the productivity and adequacy in the business operations.

Long term horizons

The company should promote its business culture with appropriate methods and systems, it should also concentrate its focus and efforts in understanding the strengths, positives and opportunities of the company. Not only this, the company should revamp its business by focusing on commodities that would bring desirable profit returns to the company, also it should omit the business activities which are less productive. In short the long term plan of the company is to be the market leader with maximized market share and increased profit margins.

Reflection on digital leadership

The Chief Executive Officer and the Chairman at Axel Springer has proposed the clear objective of starting the company. He has been greatly known for the digital technology in the business media in Europe. He has contemplated to lead the company with his decision of acquiring Germany’s TV broadcaster, which in turn would make the company more powerful in terms of controlling the market and public opinion. He has re-evaluated this strategy with an intent of promoting the digital technology with promotion of online channel of the company that has challenged the company to earn the 50 percent EBITDA and revenues from digital technology.

Also, the management has re-addressed the corporate strategy of the company to achieve the market leadership in the respective segment of publishing industry, this has been done by developing two pronged strategies including diversification in domestic market of home country and internalization of the organization.

The internalization strategy of the company has been achieved by tapping the attractive and new markets in the international arena. The strategy of the company’s management has exclusively been achieved through acquiring the digitally transformed corporations including Russia, Indonesia, Macedonia, Estonia, Ukraine and Finland.

In contrast, the diversification strategy of the company has been achieved by expanding the service or product offerings in the local markets of home country, and penetrating the markets by acquiring the modernized and latest platform for acquiring German TV channel.(Wind, 2016).............


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