Saturday, 6 March 2010

Vol.24: How Media/Communication Channels Are Changing? (Part 2)


In the previous article Vol 23: How Media/Communication Channels Are Changing? (Part 1) paradigm shift in media and communication channel attributed to web/internet, dramatically changing traditional media was discussed. This article, the latter half of paradigm shift in media and communication channel, focuses on spatial channel.

1. What kind of paradigm shift has been in process (and still is) in spatial channel, with the advent of the Internet and Web 2.0?

The essence is the same as the paradigm shift in traditional media, i.e. in addition to emergence of online media, online and offline spatial channels have been converging. This has been triggering emergence of new communication and business. Moreover, online is truly becoming ubiquitous, attributing to the fact that web 2.0 technologies mean emergence and proliferation of social media, further driven by mobile (platform, applications, devices).

Based on the Media/Communication Channel Paradigm Shift chart, the author would like to briefly explain how such paradigm shift is in progress.

2. How are spatial channels changing?

Online and offline convergence is in process, triggering dramatic changes. This has created some innovative ways of content/service delivery and new business model.

1) Stores

Stores used to mean physical space where consumers visit, interact with staff to see and try products and services to buy. With the emergence of the Internet, websites became popular, which are, regardless of the type (e.g. corporate information, product information, EC = Electric Commerce), can be and often are regarded as stores in website analysis and development. In such a case, top page is regarded as front entrance, left hand menu as level/ground of the building, web content as sections, web page as shelf, and links as doors leading to different buildings, level/ground and sections.

(1) Emergence of online stores led to new business models and paradigm shift in retail industry in particular

Internet marketers realized that websites have potential to play the role of the offline store, including trading by adding EC function, and developed the first online stores such as eBay and amazon, symbol of the Internet business. This meant new business model and paradigm shift in retail industry worldwide. In Japan Rakuten, another type of online store business started whose business concept is online shopping mall. Rakuten is the online shopping mall owner and attracts and supports online business owners to do business in their online shopping mall. Support includes providing the platform and consulting. Today there are many different types of EC websites/online stores, and more new business models leveraging the Internet.

(2) Manufacturers including traditionally brick and mortar companies now enjoy online store business

Online stores are not limited to IT business companies; many manufacturers including traditional brick and mortar companies also do business online leveraging online stores. Dell, famous for its unique and original PC manufacturing and delivery business model leveraging the Internet, extremely enjoys online business with Dell Outlet (leveraging social media), and offline business as well.

Panasonic, a symbol of a Japanese brick and mortar company that had once withdrawn from computer business, re-entered PC business around 2000 and started their online PC business (at least in Japan) when they launched Let’s Note series. Their Let’s Notes series online store started to become popular when they made differentiation between online and offline business by allowing online consumers to select a colour from 16 colours available and order for a particular model, and established an online community website. Large proportion of their revenue comes from offline business but now they do enjoy online business of Let’s Notes series as well.

2) Trade shows

Trade show itself is still online focused in general but usually its content is available online today. Since the objective of trade show web content is providing web users with information of the show and not (directly) selling products and services, one difference from online store is that is does not have EC function, and focuses on information of the show.

3) Events, forums and seminars

Events, forums and seminars used to be something held offline, but today, similarly to store, online and offline is converging, leading to new forms of events, forums and seminars. With the advent of the Internet, information of events, forums and events held offline started to be provided online, similarly to trade show information. And now, some are now planned and held online, even exclusively online, especially seminars.

Seminar held, often exclusively, offline has become popular, leading to variety of web content and services, which can be said as new business models for some. Online seminar has become so popular, and new word of “webinar” (web + seminar) was coined and has become quite popular among web users. Online training and education can be included in / categorized as online seminar, and many of them have become quite popular, some evolving into new format and/or business. Many companies provide employees around the globe with online training (a European pharmaceutical company calls it “e-learning”). Some business schools provide courses/programmes online in addition to traditional offline courses/programmes or online exclusively. This attracts customers (students) not limiting to their physical location, time of their availability etc., meaning new business opportunity and business model, similarly to online store.


Having looked at paradigm shift in media and communication channel, the author would like to discuss how marketers, PR professionals, communicators and business owners can leverage online and offline media and communication channels to maximize effect in the next article.


References:-

Mitachi, Takashi (1998), Deconstruction: Disintegration and Reintegration of Value Chain. Diamond Harvard Business Review, October-November, in Japanese, pp110-123.

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