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Developing a Digitally Transformed Business Model

A study about steering the Danish movie industry towards a digital transformation.

Written by Anonymous

Paper category

Master Thesis

Subject

Business Administration>Communication & Media

Year

2018

Abstract

Master Thesis: Digital transformation The definition of digital transformation is the use of new digital technologies (social media, mobile, analytics or embedded devices) to achieve major business improvements, including enhanced customer experience or new business models (Fitzgerald et al., 2013). According to In a 2015 study, 76% of interviewed employees stated that digital technology is important to their organization, and 92% stated that the technology will be important in three years (Kane et al., 2015). However, despite acknowledging this, many companies around the world are still struggling to reap obvious benefits from new digital technologies (Fitzgerald et al., 2013). Due to the emergence of new technologies, digitization has made it possible to deliver and design new business models. Therefore, companies also need to continuously explore the best ways to generate revenue, organize events, and place themselves in new or existing industries. (Berman, 2012) Digitization has moved physical objects to files, and then from digital files to cloud service experiences. When the media exists physically, the concept of digital media still draws on the traditional interaction model. Sticking to these traditional concepts helps end users understand them easily, but it also means that they cannot take advantage of the new possibilities that digital media brings. (McMillan et al., 2015) The Internet has created an opportunity to gain wider exposure, reduce costs, and the ability to target a small part of the population (Ulin, 2010, p. 3). A new cost-effective tool that can help bring offline media into the online space is the use of scannable Quick Response (QR) barcodes (Cooper, 2011). QR codes have several advantages: better contact with consumers, traceability and tracking options, opportunities for product evaluation, and curiosity creation (Larkin, 2010). In order to succeed in digital transformation, companies need to redefine customer value and operating model at the same time. Companies that can implement new business models based on customer needs can get the first choice of talents, partners, and resources. (Berman, 2012) Fitzgerald et al. (2013) pointed out that even though companies may be afraid of doing something wrong, the only wrong move they can do is to take no action at all. The ability to carry out digital transformation is not only related to technology, but also to having a clear digital strategy. In fact, how companies integrate these new technologies to change their business. (Kane et al., 2015) This was supported by Matt et al. 5.2 The Danish film business model CanvasUlin (2010, p. 34) pointed out that movie theaters want a protected window because they are afraid that they will not survive otherwise. When looking at statistics on the average number of times people go to movie theaters per year, it is obvious that from 13.5 (Wümpelmann, 2008, p. 74) to 2.3 (Nordicom, 2017), the number of times people go to movie theaters has decreased because they have other options. Although the average level of participants is 4.1, there is still a big drop compared to 13.5, and due to the membership of the movie club, the average level is only that high. Excluding the three people who had more than ten times, the average number of visits per year for the remaining fifteen people was exactly 2.3 times. In any case, because people still associate the cinema with the experience, they do not believe that the cinema will die, so it is still part of the business model. Pedersen believes that the decline in Danish film sales is a sign of the failure of Danish production companies, otherwise foreign films will also decline. Christensena agreed because she said that total ticket sales did not decrease. Nonetheless, from 2016 to 2017, total film box office sales declined (Danmarks Statistik, 2018), although cinemas offer far more films than before, Pedersen points out. Therefore, people believe that movie theaters need to create more unique experiences and offers to attract more audiences and connect movie theaters with experiences they cannot get at home. This is due to the discovery that the focus group links the movie to the social experience, as McNamara (2017) also pointed out. Since Danish households paid about 275 DKK for streaming services (Slots-&Kulturstyrelsen, 2017), which is almost equivalent to 2.5 movie tickets per year, they get more content at the same price at home, but only in movie theaters. 2.5 movies are required. Therefore, the cinema must focus on its value proposition and how to ensure that people get the unique and social experience that the focus group wants, and make the trip to the cinema worth the money. Therefore, movie theaters should provide "dinner and movie" arrangements to allow customers to enjoy discounts when purchasing combinations. Customers can sit and talk after the movie theater. This is the first choice and missed by many participants. It is found that the movie club membership supports Danish movies and movie theaters, Because member participants go to movie theaters most often, they criticize movies less and watch more Danish movies. Since participants are found in 50+ focus groups, movie theaters should focus on having other different members, each member All target different people in order to get more data from these members and start to target niche markets instead of the general public. Read Less