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BUSINESS | Noah Brier

Horizontal Media in a Vertical World

How traditional corporate structure is (not) changing as a result of new media.

April 2, 2007 | RSS | EMAIL | PRINT | 4 COMMENTS

Time for another one of those conversations I've had about 50 times in the last few months but have yet to blog (at least as far as I can remember). If you've heard this spiel already, I apologize.

One of the problems with web sites in corporations is that they don't play particularly well together. It's hard to decide who owns what and as a result you often get sites that are all split up into pieces according to corporate structure rather than consumer understanding. In other words, just because sales and marketing are separate parts of the business with separate budgets doesn't mean the information the two departments produce shouldn't live together.

Blogs are another great example. Who owns them? Is it marketing? Corporate? Communication? By the time everyone gets done fighting over it the site's been torn to shreds and there's no point behind it anymore.

The way I've been thinking about the problem (and visualizing it in my head) is that most corporations grew up in an age of analog media (and those that didn't have modeled themselves after the old guys). Analog media flows one way: Records only play on record players, television signals only play on televisions and paper is, well . . . paper. In those days it was far easier for companies to have silos because information couldn't move through boundaries anyway.

All of a sudden digital media comes along and starts to screw things up. It doesn't know boundaries. The figurative and literal walls between departments are of little use when it comes to digital technology (think about the effect of something like email on the way people communicate and share information).

When the web came along and every company decided it needed a website decisions had to be made about who was going to 'own it.' Problem was, as I mentioned earlier, it didn't fit into the nice little boundaries that corporations were built around. If companies are traditionally structured vertically (silos) then the web is a horizontal medium, cutting across the business.

That's a bit over-simplified (I think in reality it's a medium that moves in every direction), but at least it gets started at why so many companies are having serious issues grappling with the digital age. Communications no longer belong to a specific channel or silo since nearly all become digitally encoded at some point in their life, allowing them to travel seamlessly around the corporation without worry for the havoc they're wreaking.

I don't know that I have the answer, but it seems more and more apparent to me that traditional structures are not the way forward (guess I have written about this in the past). In lieu of killing silos altogether, companies need to find ways to create horizontal units. The team who manages a website, for example, should work and have real say over any number of business decisions within the different silos the site touches. I'm sure there are major stumbling blocks to this kind of idea and I'd love to hear from folks who work in know large corporations well. I guess the bottom line for me is I don't see any other option: It's either change or get beaten by the little guys. (Which may or may not be a new idea in and of itself . . . )


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COMMENTS

1Todd Krieger

It's really appropriate that you would put this up as I was just pulling together some of my past work and trying to figure out what to do with online work related to TV - does that go in the TV section or the online section. And after a decade of separating my print journalism from my online I just combined the two and called it journalism.

April 2, 2007

2amber

you have a sixth sense, i swear...i am in the middle of a detailed analysis of the various websites of competitors for one of my clients - like you mention above, there has recently been a major shake-up over who owns what - the two main contenders being the marketing group and the website group.

I think that since really everything you put out there as a company is marketing, someone who has audiences interests and desires at heart should be involved in structuring content and information.

Meaning, what makes sense to an IT/ Web Information Architect might conflict with how the audience really interacts with the content on the site. ( and it usually does )

It's hard when you're dealing with the huge volume of information that most large corporate sites have to house, but I really think it's impossible to structure any information without having a person who is totally connected to the consumer and the way they seek out information.

I think we'll see a lot of changes in the way large sites are structured - hopefully they'll become more intuitive, and less tied to a "template" that's existed probably since they first put the site up in 1995.

April 3, 2007

3Steve

Noah, your view on the media companies having grown up in an analog world is right on... what I'd add is something I've noticed so often at the large media company I work at. The two major issues I can identify are:
1. Compensation Scheme
2. Poor appreciation for the concept of a "whole product"

On Compensation Scheme -- today's TV producer is not incented in any way to see that the web site tied with their program succeeds. Nor are they incented to see any element of alternative distribution of their programming succeed. They are compensated for one thing, and one thing only; to see their LINEAR, Non-Time-Shifted program draw eye-balls. And it is because of that, the producers are scared to let other teams encroach on their territory. They don't want anyone from the on-demand business, or the mobile-phone business, or the iPod business telling them what to do, or steal their thunder... and they don't care to help those businesses succeed because they're not getting paid any extra to do that - they've got enough to do as it is.

And the reverse is true. The "new media" people who are taking programming from a network and making it available to customers on a variety of plaforms aren't incented to see any platform other than their own succeed. Nor do they want to loose their influence by letting someone else make or dictate their content.

And then there's the ego side of compensation - where the IT dept. (for example), who was for a long time the owner of anything that had to do with computers, has been very leery of giving up control of what goes on the web - which is a big reason why there is so little creativity with corp. web sites.

On to poor appreciation for "whole product"

This is closely tied in to compensation. Old media companies aren't used to selling a whole product. They're primarily used to selling ONE product to customers: an experience lasting up to an hour, in one environment, with one device. They're having a hard time appreciating what new technology offers them and their customers... which is the opportunity to create a whole product which can extend past the (up-to) 1 hour on one device... it can extend on to several devices, which are appropriate at different times of the day, in different environments, at different lengths... and it can be experienced over and over, like a book - all at once, or in snippets picked by the customer.

This thinking is responsible for Apple's success. Steve Jobs understands a simple principle outlined by Geoffrey Moore in "Crossing the Chasm" - create a whole product, that is fully supported from the beginning of the experience to the end, and you will own your customer. Steve Jobs doesn't give people computers with the "hope" that they'll figure out what to do with them; and the "hope" that content creators will make tools and content that users can then tinker with. Steve Jobs gives people a computer with a built-in vision for what that tool will do, and how people will interact with it. And that message is consistent in the design of the packaging, their commercials and retail stores, and obviously in the programming they lined up for use with their devices. Media companies need to start thinking about whole product.

April 9, 2007

4Steve

Noah, your view on the media companies having grown up in an analog world is right on... what I'd add is something I've noticed so often at the large media company I work at. The two major issues I can identify are:
1. Compensation Scheme
2. Poor appreciation for the concept of a "whole product"

On Compensation Scheme -- today's TV producer is not incented in any way to see that the web site tied with their program succeeds. Nor are they incented to see any element of alternative distribution of their programming succeed. They are compensated for one thing, and one thing only; to see their LINEAR, Non-Time-Shifted program draw eye-balls. And it is because of that, the producers are scared to let other teams encroach on their territory. They don't want anyone from the on-demand business, or the mobile-phone business, or the iPod business telling them what to do, or steal their thunder... and they don't care to help those businesses succeed because they're not getting paid any extra to do that - they've got enough to do as it is.

And the reverse is true. The "new media" people who are taking programming from a network and making it available to customers on a variety of plaforms aren't incented to see any platform other than their own succeed. Nor do they want to loose their influence by letting someone else make or dictate their content.

And then there's the ego side of compensation - where the IT dept. (for example), who was for a long time the owner of anything that had to do with computers, has been very leery of giving up control of what goes on the web - which is a big reason why there is so little creativity with corp. web sites.

On to poor appreciation for "whole product"

This is closely tied in to compensation. Old media companies aren't used to selling a whole product. They're primarily used to selling ONE product to customers: an experience lasting up to an hour, in one environment, with one device. They're having a hard time appreciating what new technology offers them and their customers... which is the opportunity to create a whole product which can extend past the (up-to) 1 hour on one device... it can extend on to several devices, which are appropriate at different times of the day, in different environments, at different lengths... and it can be experienced over and over, like a book - all at once, or in snippets picked by the customer.

This thinking is responsible for Apple's success. Steve Jobs understands a simple principle outlined by Geoffrey Moore in "Crossing the Chasm" - create a whole product, that is fully supported from the beginning of the experience to the end, and you will own your customer. Steve Jobs doesn't give people computers with the "hope" that they'll figure out what to do with them; and the "hope" that content creators will make tools and content that users can then tinker with. Steve Jobs gives people a computer with a built-in vision for what that tool will do, and how people will interact with it. And that message is consistent in the design of the packaging, their commercials and retail stores, and obviously in the programming they lined up for use with their devices. Media companies need to start thinking about whole product.

April 9, 2007