Innovation and the publishing industry

Hesmondhalgh states that when an industry is in flux, before it matures ‘there is often more room for manoeuvre for independents’ leading to an increase in entrepreneurialism and a growing emphasis on ‘going it alone’.

The creative industries have seen great change over the past decade, particularly as a result of digitalisation, and small, independent companies have been able to thrive alongside large conglomerates as a result.

This can be observed in the publishing industry, since the new digital landscape within which publishers must now operate, necessitates considerable change to existing business practices. Publishing is an industry in flux, and one where as a result, new innovators have been able to seize opportunities and enjoy success alongside established corporations.

Innovation is key, since as the consumer market changes drastically with the recent uptake in use of digital devices such as the iPad and Kindle, many publishers remain reluctant to embrace new opportunities to develop digital platforms, whereas new innovative entities are able to identify new ways to develop as well as deliver content effectively.

However, it is possible for larger publishers to develop innovation, since, as advocated by Bessant and Tidd, in any business, be it entrepreneurial or an established organisation, successful business opportunities begin with identifying the drive for innovation and recognising an opportunity. This has been difficult for many in a traditional industry such as publishing, however, there are some key players who are keen to innovate and are applying Bessant and Tidd’s model to their long-term business strategy.

One such company is Bloomsbury Publishing PLC, a publisher that declares its commitment to entrepreneurialism and innovation within its digital business strategy and utilises elements of the four Ps of Bessant and Tidd’s innovation model in order to deliver it:

Product

In 2009 Bloomsbury’s Chairman demonstrated their understanding of the changes in publishing products that are taking place, explaining that they capitalised on the opportunities available with their “understanding of the transformational forces at work in the publishing industry” as well as their ability to respond to them by capitalising on the growing “opportunities of new delivery systems” and digitisation.

Process

In 2010, at Bloomsbury’s Investor Day Conference, the Chief Executive, Nigel Newton and Executive Director, Richard Charkin discussed the fact that the current revolutions in digital business had relied upon delivery systems, for example the internet and the Amazon Kindle, however, this had led to demand for content to feed such systems and with the wealth of content and intellectual property owned by Bloomsbury, this was an opportunity that the company was well placed to exploit.

Position

At the same investor day, Newton explained that the digital age had enabled Bloomsbury to focus on innovation, inventing new revenue streams and business opportunities where previously there were none. The company is moving away from reliance solely on the traditional market for profit and loss through publishing a book, and instead towards management contracts and business-to-business projects which were conceived by Bloomsbury themselves.

Paradigm

In 2010, again at the investor day conference Newton and Charkin summarised Bloomsbury’s unique approach to its performance in the digital landscape. They outlined the company’s digital business strategy and plans for the future, stating that Bloomsbury’s style of operation was now entrepreneurial, using the skillset available within the company to move away from reliance solely on the traditional market for profit and loss through publishing a book, and instead towards management contracts and business-to-business projects which were conceived by Bloomsbury themselves. Newton explained that this strategy was based on the management of content, which as a publisher, Bloomsbury specialises in.

As Bessant and Tidd stated when discussing the creation of value, looking to profit from patent and copyright in order to profit, is no longer really the goal or outcome. Looking beyond these towards expertise and the potential for exploiting knowledge and intellectual property is another possibility.

Bloomsbury’s digital success in 2011, with a 564% increase in digital sales and a year-on-year increase in sales of 30% for the end of the year, indicates that Bessant and Tidd's model is one that could be applied across the publishing industry. Perhaps such results will persuade other large publishers that innovation is the way forward.

 Bloomsbury Publishing PLC. Interim Management Statement. 16 Jan. 2012. Web. Accessed 30 Jan. 2012. http://www.bloomsbury-ir.co.uk/html/media/press_releases/160112.html

Bloomsbury Publishing PLC. Annual Report and Accounts 2009. 30 Mar. 2010. Web. Accessed 30 Jan. 2012. http://www.bloomsbury-ir.co.uk/annual_reports/2009/019.asp

Bressant, J. and Tidd, J. Innovation and Entrepreneurship, 2^nd ed., Chichester: Wiley & Sons. 2011. Web. Accessed 30 Jan. 2012. http://books.google.co.za/books?hl=en&lr=&id=kKvKh7pla8kC&oi=fnd&pg=PR11&dq=related:HixYGkNAZ0kJ:scholar.google.com/&ots=EMbHdLzRX9&sig=LNF2Ln8img4VyVVDWFF0MTWwpxo#v=onepage&q&f=false

Hesmondhalgh, David. The Cultural Industries. London: Sage. 2002. Print.

Newton, Nigel and Charkin, Richard. Bloomsbury Investor Day Presentation. 36 Soho Square, London. 2 June 2010. Web. Accessed 30 Jan. 2012. http://www.bloomsbury-ir.co.uk/archives/i_presentations/presentation-020610.pdf