This episode features The New York Times (NYTimes.com) and reviews that as a business case of a successful digital transformation and highlights the lessons learned and best practices from that journey.

In this episode (included at the end), we will review a business case of successful digital transformation.

If you are part of an organization, especially a mid to large enterprise, then chances are that your organization is engaged in some type of a digital transformation. However, not all such transformations are successful. In this case study, we will look at the case of New York Times, an organization that seems to have taken the right steps to transform itself and transition to a digital landscape.

Unlike many incumbents who have been swept away by the tides of digital disruption, the New York Times has been gradually transforming itself for the past few years and now seems to have positioned itself firmly to compete in the digital world. Like other newspaper publishers, the organization had earlier faced losing its competitive positioning in the industry due to the disruption of the print newspaper business. However, by executing the right strategies in a timely fashion, the New York Times seems to not only have weathered the storm of digital disruption but has gained a competitive advantage over its rivals as a result of having built the right capabilities. In this episode I will highlight some of my observations and insights from the New York Times digital journey.



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Staying Focused on Ones Core Competencies





My first observation is that NYT seems to have stayed focused on its Core Competencies. In this age of digital disruption, it has become quite common these days to hear about organizations reassessing their core competencies. While that is (and has been) a valid concern in a number of cases, it’s not always as bad it may seem. Although an organization’s business model may be subject to change (meaning how it meets customer requirements and deals with its suppliers and so on,) its core competencies don’t have to change. In the New York Times’ example we see that the organization has continued to focus on its core competency of journalism and continues to produce quality reporting and analysis on a wide number of topics. We see a clear evidence of this in its continued strong subscription base and its repeated mention and high visibility in the news. Furthermore, many of its journalists continue to win Pulitzer Prizes.

So the Lesson Learned here is that Despite the pressure that your organization may face to transform itself including the push to reassess your business model, your digital journey doesn’t necessarily need to depart from your core competencies. You can instead leverage the power of digital technologies to boost your competencies to help you reach more customers in the digital landscape. So, instead of being reactive and starting to make major changes, it’s always advisable to take a hard look at how your competition and markets are changing and then taking the right transformation steps by staying focused on your competencies.



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Identifying New Sources of Revenue





My next observation is that NYT seems to have found success in identifying new sources of revenue. A review of the New York Times’ annual report makes it clear that digital advertising has now become one of the core revenue streams for the organization. With print advertising continuing to decline, the company was able to find an alternative source of revenue in the digital ecosystem. Incumbent organizations in other industries are pursuing similar...