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This paper suggests that in order to create shareholder value, companies in the content, tech and distribution sectors must adopt an open business model, eliminating internal walls between business units and external walls between the company, its partners and other strategic business allies. This can mean making alliances with competitors, and may require a willingness to take a smaller stake in an investment opportunity, rather than holding out for a 100% stake in something that never materialises.
There are four basic attributes of an open business model:
- Employing the disciplines of the capital markets
- Personalising the customer relationship
- Maximising the potential of content
- Creating a culture of innovation
Implications:
- Companies that contribute energy to the marketplace will benefit the most, and need to find a formula for operating at a new velocity
- “Open” companies should be able to change quickly based on consumer, competitive or technological demands and move forward in harmony with the changing worlds of customers and business partners
- The report lists key issues and actions to consider around those issues, tying in PricewaterhouseCoopers' service offerings:
- Partnerships and alliances
- Revenue leakage
- Consumer privacy, security and privacy
- Customer service
- Change management.
