Dual Transformation: “What is the Prediction for ‘Transformation A’?” progression

By Deb Shaw, Editor, Local Media Today | April 2017

Late last month Deseret Digital Media President Chris Lee presented an LMA webinar that continued the exploration of the duel transformation underway at media companies, building on the academic work done by Lee’s former colleague Dr. Clark Gilbert.

Gilbert advanced the ‘Transformation A and Transformation B’ theory in which ‘Transformation A’ refers to the continued innovation required of a legacy business (e.g., newspapers, radio stations, TV stations, directories), while ‘Transformation B,’ refers to the creation of new businesses that, at a certain point, compete with the legacy business (e.g., news websites, OTT channels, apps).

Two simultaneous routes are required of companies facing this kind of disruption: 1) ‘Transformation A’ must “right-size” its cost structure to the new, reduced size of the opportunity ahead, while innovating ways to maintain relevance in a new environment; 2) Simultaneously, ‘Transformation B’ must build entirely new business models that work within the new environment.

How should organizations readjust for the future? Lee took a fresh look at this theory in the March 21 webinar. Access the full recording and presentation of this webinar at www.localmedia.org/webinars