Media companies should be better prepared for digital business than many other companies. They are used to produce and sell information goods. And often they are experienced with two-sided markets. Both areas are important in digital business.
Customers can easily switch vendors in the transparent and often global digital marketplace. They are often hunting for the best deal and whichever vendor can offer this best deal will get the business (spot market).
The best deal is not necessarily the one with the best price, there are other values as well (e.g. convenience). And sometimes network effects are important and platforms are developing.
My thesis is that owning the customer is the central success factor in the digital economy. Whatever the specific situation looks like, vendors should not compromise on keeping their customer relationships. Otherwise they may end up as interchangeable subcontractors to dominating platforms.
This is just a first exploration into a plethora of topics. More elaborate thoughts will follow.
The new Master program Digital Business Management which I will be heading at my university has finally been approved. It will clearly focus on digital businesses and their management. See RFH website for further details.
Please find my paper on Internet business models here. See the abstract of the paper for more details.
Here you will subsequently find our musings on media, management and more. For some thoughts on Internet business models please see the working paper in the Papers section.
This website will become a science-oriented site of Prof. Dr. Ralf Wagner, Köln (Germany). It would like to foster the advancement of the knowledge society by presenting, sharing and developing knowledge – hence the name of the site.