Bonnier: Digitalizing the Media Business Case Study Solution

Was the approach Bonnier chose to establish a centralized R&D department and to change its innovation practices a sound business decision?

The significant change in the media landscape i.e. the transformation of the socio-technical structuressince the last decade has led to the guaranteedchange in Bonnier’s strategic direction. (Nylén, 2015 )Due to the advancement in the technological usage and significant growth of the digital world;the current demise of both Kodak, as well as Tower Records,has beenrepresented as a morbid reminder of possible threatsto the print media industry. By the year 2009, many of the leading newspapers in the United States had filed for bankruptcy. Considering the decline in the magazine subscriptions, there had been a decline by approximate of 10 percent from 2008 to 2010. (Lynda Applegate, 2012)With respect to the increasein the launch of social media platforms, there seemed to be a significant need forimprovement in the use of technology at Bonnier. The research and development at the Bonnier had not been centralized. Thus, each unit of the business was responsible for their increased use of digital technology despite the traditional media methods.

However, it seemed quite difficult for Bonnier to continue with the approach of scatter-gun. Therefore, there was a requirement of the introduction of new approaches and an increased co-ordination among all the business units in order to compete against other players in the market. By the division managers, despite the key concerns highlighted regarding the giving overcontrol of their key projects, the challenge wasassociated withexistingnotions of the business units. With respect to the suggestion given by Ohrvall, the establishment of the centralized department of Research and Development was considered to be a sound decision as it was pivotal for Bonnier in terms of meeting the goals i.e.the new software platform for publishers and the creation of the digital magazines for the iPad for the development of the material……………….

 

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