Tag Archives: Innovation

Sanoma Digital to boost transformation on three fronts: growth, innovation and capabilities

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nu-labSanoma recently announced the planned launch of Sanoma Digital as part of an overall accelerated transformation program.

We see many opportunities in digital and have in the meantime built a substantial and growing digital business.  We intend to boost digital by creating this new business unit which will focus on pure-play digital assets in consumer media in Finland and The Netherlands, and will include brands such as oikotie.fi, NU.nl and kieskeurig.nl.  Digital brand extensions such as hs.fi and libelle.nl will be run directly by Sanoma Media Finland and The Netherlands. Sanoma Learning will drive all Learning activities.

Focus

A core element of the overall transformation program is to bring more focus to the business and to ensure that each part has a clear mandate and objectives.  This also holds true for Sanoma Digital.  Growing and innovating pure-play digital businesses in consumer media is a different assignment than transforming a portfolio of magazines, winning viewers for television, taking newspapers to their next level or building digital workflow solutions for learning.  Each of these assignments needs dedicated management attention to focus on making it happen.

Digital enjoys a unique role within the portfolio and will for that reason also work very closely with the other platforms to enable cross-media solutions for consumers and advertisers – shared sales, insights & analytics and ICT teams will help us to achieve that.

Goals

Sanoma Digital will have three main goals:

  1. The first goal is to grow.  growthWe intend to significantly grow the digital consumer media business in the next 5 years. Part of that growth will come from working closely with the local business in Finland and the Netherlands, including adding new verticals, new media (mobile and video) and new services to our performance-based (lead-generation, e-commerce, online classifieds) and pure-play digital content businesses. Another part of the growth will come from scaling successful concepts created in The Netherlands and Finland to new markets.  We have been investing in the early part the product pipeline recently with quite some new launches in the final quarter this year.  We expect this to bear fruits during the course of the coming years.
  2. The second goal is to boost innovation and to strengthen skills across the organisation on lean development methods. Commerce-Accelerator-logo To achieve this we will establish a new innovation lab which will nurture the winning concepts borne out of our ongoing series of innovation accelerators.  Furthermore, we will continue to invest in external digital enterprises via Sanoma Ventures. We want to fill the pipeline with new business lines – to plant the seeds of the next generation Sanoma.
  3. The third goal is to strengthen our capabilities on data insights & analytics. We will bundle our resources on insights and analytics, boost them, and deploy them across Sanoma, to help the whole company to succeed in the digital transformation.

Positive outcomes

From the perspective of digital, we hope this will position us to better serve our customers. If we are successful, we will grow digital and this should help us to provide attractive new opportunities for employees and improved returns for shareholders.

Two passions

From a personal perspective, my next assignment is to establish Sanoma Digital. I’m excited about this and believe setting up Sanoma digital is a good step to boost the digital transformation. We’re now in the process of setting up a new team to drive this agenda.  I’m really proud of the talented people who are joining this team and who will work at Sanoma Digital!  During Q1 next year I will succeed Jacques Eijkens as CEO of Sanoma Learning.  My two passions are digital and learning.  Sanoma has a strong and successful international Learning business that is also going through a digital transformation.  I hope and believe that I will be able to contribute to the further success of Sanoma Learning by boosting the leadership of digital and innovation there.

Enabling commerce through open innovation: the #CommerceAccelerator

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New launch

This week we launched the #CommerceAccelerator in Helsinki and Amsterdam. This is the third accelerator so far in the series. We began in the Autumn last year with the #MobileAccelerator and continued in the Spring with the #ContentAccelerator.

Intrapreneur Nikky Hofland at the Helsinki launch

Intrapreneur Nikky Hofland at the Helsinki launch

I notice the Finnish contingent of the team in particular has become increasingly creative in finding launch venues. The first round was in the auditorium at Sanoma House. The second round was at Adams and was the first time I have given a corporate presentation under a disco ball. This round was at cultural arena “Gloria” where Finnish Eurovision Song Contest 2006 winner “Lordi” has recorded some music video – I will spare you the footage of that here. We are considering video and vlogging as the focus for the fourth accelerator – I am already wondering with some trepidation where we will meet for that kick-off.

New business and new skills

We have two big goals for our Innovation Accelerators: i) to build new business lines and ii) to learn new skills.  As a direct result of the first two accelerators we have established six new start-ups and by the end of this accelerator almost 450 of our most talented employees will have learned new skills about Lean Innovation.  Learning by doing.

This accelerator has two new aspects.

Enabling commerce

Firstly, we are focusing on developing concepts that can “enable commerce” – “content” is not necessarily central to our thinking in this accelerator.  How can we use our ability to reach, inspire and engage consumers to enable commerce?

Open innovation

Secondly, we have opened up the process.  We are joined on this journey by approximately 70 students from 6 European universities, along with a handful of participants from a leading e-commerce player and leading telecoms operator.  We are looking to the outside world and want to bring in new talent and ideas.

Positive spirit

I felt excited at the kick-offs– the same way I used to feel when starting a new academic year – a time of new beginnings and new opportunities.  Program leaders Lassi Kurkijärvi (@lassi, Director of Innovation & Development at Sanoma) and Joris van Heukelom (@jorisheuk, Partner at Makerstreet) were in good form and inspiring as always.  What I especially liked at both kick-offs was the positive and optimistic spirit of the participants. I can sense the ambition of my colleagues, an eagerness to learn and to develop something new.  It felt good.

Good luck!

So, after the kick-offs we will be moving on to the ideation and learning experience and then taking the best 5 ideas to bootcamp to build functional prototypes. I am extremely curious to see what this accelerator brings us.  Good luck to all participants and respect to you for going for it!

Making innovation happen: how to organize for disruptive growth?

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video-screenshot

One of our new intrapreneurs is building a marketplace for fashionista’s.

Following excellent performances at the bootcamp of the #contentaccelerator in June, two of our top talents have taken new roles as intrapreneurs at Sanoma this week. Making it happen!  This innovative burst immediately caused temperatures to sky-rocket to a sweltering 33°C at the office. Respect to them for showing the courage of their convictions and going for it. And thanks especially to the local organisation for supporting a speedy transition.

Creativity and customer-focus sit deep in Sanoma’s character.  However, we have deliberately organized these and other new ventures separately from the core business, yet cooperative with it.  We wanted to establish a model which gave the accelerators and new ventures the liberty to exploit their disruptive opportunity unrestricted by the core, yet in a way which supported both the new venture and the core. In my view, the process of the accelerator (ideation and competence development for hundreds of people from the core) and the sharing of various capabilities in the operation (mainly marketing, technology and expertise) achieve that.

Dual Transformation

I recently came across an excellent article by Gilbert, Eyring & Foster, in the Harvard Business Review called Two Routes to Resilience which clearly articulates the case for developing disruptive and core businesses separately yet under one umbrella. How to organize for new growth?

The authors make the case that when your industry is undergoing disruptive change, companies should respond by making two distinct transformations in parallel. Transformation A focuses on repositioning the core business to its altered circumstances. Transformation B should create disruptive innovations that will eventually bring new growth. And the structure should work for both through a “capabilities exchange” that allow the sharing of select resources for the benefit of both parties, without changing the mission of either. Each transformation needs a leader fully convinced of the future success of their mission. Both pillars of the transformation have to act in the market as if the future of the company depended on it alone.

“Capabilities Exchange”

The “capabilities exchange” should in principle bring competitive advantage to each pillar in the transformation. In the case of our accelerators and new ventures, some important shared resources come to mind. The Sanoma brand helps us to build connections to consumers, advertisers and schools.  Easy access to media and traffic help support existing brands and build new brands. Expertise in content, advertising, learning and other capabilities required in managing a company, such as finance and HR can support each transformation. The re-use of content and technology can reduce unit costs and bring speed to innovation. An international network can bring scale. Access to a skilled talent pool and methods of developing new skills on innovation are required in both tracks. And a dual transformation can support the financing of the respective pillars. That’s quite an exchange when you come to think of it!

Boosting Transformation B

For the sake of good order, Sanoma has many growing, successful and disruptive business lines and I would not for one moment say that the ventures born from the accelerators are the only seeds of the next generation of our products and services and everything else is legacy. That’s clearly not the case. The new ventures are just one of the pockets of innovation and digital disruption in the company. And we have many other business lines which would not count as digital disruptions but are far from legacy status.

Yet the argumentation in the HBR article is good and sharp. I believe it’s a credible approach and our actions and investments in new ventures are for their part consistent with it. Bringing additional relative scale to what the HBR article refers to as transformation B (the new growth businesses) would help to support the dual transformation. Increasing the pipeline of new ventures would be one way to achieve that.

I’m interested to know your opinion about this.  Feel free to leave a comment or send me an email.

Sexiest Job at Sanoma: Data Scientist

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During a recent webinar I gave about our strategy, Lassi Kurkijärvi (Director of Innovation & Development) was voted to have the sexiest job at Sanoma. This victory was by a comfortable margin, getting about twice as many votes as the second placed “my own job”. I agree that our Mobile Superhero has got a hot job. However, in my view, the sexiest jobs at Sanoma in the next few years will be those of the Data Scientists.

I realize not everybody will share my view and I am arguably biased due to my background (a lot of Bioinformatics in my PhD). Yet I believe there’s a big opportunity for us to be even more relevant to our customers (and make more money) by providing them more accurately with the right content and functionality at the right time, on the right medium and device and for the right price. (By customers, I mean consumers of media, advertisers, learners and teachers).

To do this, we have to make a quantum leap forward in our insights and analytics capabilities. This week I caught up with our Queen of the Quants – Ulla Kruhse-Lehtonen (VP, Customer Insight and Analytics) about insights and big data at Sanoma. She’s a brilliant addition to my team, fun to work with, fast, determined and has the brain the size of a planet. She’s building our new team and co-developing the cases with the business owners.

Ulla Kruhse-Lehtonen, VP Customer Insight & Analytics and Queen of the Quants at Sanoma

Ulla Kruhse-Lehtonen, VP Customer Insight & Analytics and Queen of the Quants at Sanoma

Ulla, why did you decide to join Sanoma?

I was immediately intrigued when I heard about the opportunity. Having always been an avid reader and a magazine buff, I was fascinated by the chance to work for a company whose business is storytelling. At Sanoma, I can combine my love for stories with data science, which is my other passion.

I’m excited by Sanoma’s wealth of consumer data and the business opportunities it provides. The media industry is currently undergoing a fundamental transformation from print and broadcasting to digital. Consumer analytics is at the centre of the transformation. Modern data mining, visualization, and machine-learning techniques provide us with strategic and operational insights as well as targeting and personalization capabilities for our current and future products and businesses. Data science helps us create unique, relevant and exciting experiences for our customers.

How is Sanoma rolling out the new data science capabilities?

The new capabilities are used to optimize consumer sales, target digital advertising, personalize services, and create strategic consumer metrics and other data-driven insights. The data science team develops the capabilities in close collaboration with the respective business and IT functions. Roll-out happens in stages. Only after verifying the performance of the new analytics capability through a pilot, will it be rolled out further. This helps us ensure the success of the new capability before making large-scale investments into technology and training people. 

We also aim at creating a culture of sharing and communicating of successes and failures in order to share best practices and learnings across units.

What is the most critical factor for making a Big Data initiative successful?

The most critical factor is to closely align data, insights and analytics activities with the company’s business strategy. It’s easy for an analytics team to keep itself busy with interesting and challenging, yet irrelevant matters. Once Data Scientists thoroughly understand the business goals and logic, they will be able to translate them into data and analytics questions and come up with unexpected, sometimes unintuitive outcomes, which may have tremendous business opportunities.

At Sanoma, the executive-level support for analytics is extremely strong, which is one of the most pivotal matters for a successful analytics transformation of a company.

What are typical challenges in Big Data initiatives?

The technical effort related to the gathering, management and utilization of data should not be underestimated. The more silo’s there are, the longer it takes to gather and utilize data across the organization. It takes successful analytics companies several years to get it right. At Sanoma, our approach is to prioritize consumer and advertiser use cases and build up the technical enablers in a clear order. It is important to constantly deliver short-term business wins while building up the long-term infrastructure to support the company’s vision.

However, in the end, technology is money and hard work, but analytics is about people’s mindset and the willingness to do things differently. Unless analytics capabilities are taken into use and the results are acted upon, there is little point to build them in the first place.

You’re building a team of Data Scientists and other data experts. How’s it going?

First group of new recruits. In the lift at Sanoma House.

First group of new recruits. In the lift at Sanoma House.

The recruitments are going quite well. We have signed on thirteen people in Helsinki and Amsterdam. Finding the right talent is critical for the successful execution of the analytics strategy. We need skilled people to create value out of data. In addition to Data Scientists, we have established the position of the Consumer Privacy Officer and the Head of Data Asset. We have also hired Big Data Developers and Database Administrators. The openings are no longer visible on our website as we are working through the applications, but if readers of this blog are interested in hearing more, feel free to drop me an email (ulla.kruhse-lehtonen@sanoma.com).

In September you will have been with Sanoma for a year. Still excited about the job?

Absolutely! It’s great to work with talented and skilled people and to develop the data science competency here. Data, analytics, and privacy are at the core of Sanoma’s transformation and reflect the consumers’ changing behavior. Data science is cool!

Looking forward >>

I’m with Ulla on that!  I love the creativity of a media and learning company. Putting insights to work is the next generation. This is what makes these jobs so sexy.

Looking further than Sanoma – the opportunity for societies to use insights derived from big data to improve quality of life (for example through better healthcare and education) and economic performance (for example through better allocation and targeting of resources and higher productivity) is substantial; the McKinsey Global Institute (MGI) estimates a potential for $ 300 bn of value creation per year in US healthcare alone.

USA is educating data scientists for the future

USA is educating data scientists for the future

However, the rate limiting factor in capturing this potential is in my view the availability of skilled Data Scientists. MGI estimates a shortage of 190,000 skilled data scientists and 1.5 m managers with sufficient analytics know-how in the USA by 2018. Probably the European challenge is of a similar magnitude.  In the USA we see Seattle (see e.g. the eScience Institute at the University of Washington and PhD program in Big Data) and New York (see e.g. the Institute for Data Sciences and Engineering at Columbia and Center for Data Science at NYU) contending with Silicon Valley to become the next hotbed for educating the data scientists of the future. 

We need more initiatives like this in Europe too. With a substantial opportunity gap on the one hand and European unemployment now estimated to be more than 26 m (with youth unemployment over 50% in some countries) data science is an area that should be prioritized for education and training. 

My advice to anyone considering education or training in data science as one of their options: go for it!  Not only will it be good for your chances of getting a job, it might even be a sexy one at a cool company like Sanoma!

Sanoma’s #contentaccelerator bootcamp: making it happen!

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Participants at bootcamp

Participants at bootcamp

Last week we ran the bootcamp for the #contentaccelerator. After seven weeks of ideation and training, of building and testing minimum viable products, we sent the five winners to bootcamp to build prototypes of their concepts – to take the next step in making it happen.

On a personal note – these weeks are amongst the absolute highlights of my year. We take some of the most talented people in the organization and give them the opportunity and tools to turn their idea into a prototype. I believe in innovation by doing. Not only is this the best way to move fast and develop close to the customer. It’s also the best way of learning new skills.

Focus on delivery

The first impression of a visitor to the bootcamp is that we put the participants in a cool space and give them four days of playtime to see what they make of it. However, the fact of the matter is that bootcamp is tough and demanding. Deliverables and discipline are at the core of the way of working. Preparations for the bootcamp have been stringent. We have selected the best ideas and leaders by a competitive and transparent process. Teams with complementary skills are formed including a visual designer and interaction designer best suited to the team and assignment. Each day starts by establishing clear deliverables for that day, and we are very strict in maintaining discipline to ensure that the results can be presented at end of the day. It’s structured, focused and intense.

Five concepts turned into prototypes

The outcome of the week is that we have built five great prototypes that have been tested with customers. They include i) a content marketplace (“if content is King, come and join the other Royals”); ii) a fashionista community (“you spot the look, we spot the shop”); iii) a service to hear the news in a new way (“have you heard the news”?); iv) an educational talent discovery app (“discover the talents of your children”) and v) a learning solution that mashes up the real and virtual worlds with educational quests. It’s amazing how far the teams have been able to bring these concepts in just four days. I’m tempted to link to the promotional videos here, but it’s a bit premature to make external announcements at this stage.

Proud of the teams

I’m really proud of how the teams have performed. Not only what they have delivered as prototypes. But also how they went about it; the spirit, motivation, energy and passion – the “can-do” approach has been truly inspiring. Congratulations to the team leaders and respect for the blood, sweat and tears that you have put into the last few months. Thanks to the support teams from Sanoma and Makerstreet for helping to make it happen. And once again Lassi Kurkijärvi (@lassi, Director at Sanoma) and Joris van Heukelom (@jorisheuk, Partner at Makerstreet) have been brilliant and inspiring in leading this program from beginning to end.

Fostering an innovative culture

As we continue on this journey of discovery to the roles that Sanoma will play in the futures of media and learning, it’s of the essence that we foster our creative and innovative culture. I believe the accelerators contribute to this in several ways. Directly, we are training hundreds of people on lean development methods and building new digital business lines. Indirectly, the accelerators generate discussion about innovation in the company, with supporters and sometimes detractors too. And the discussion often leads to new initiative – to more attention for innovation – what to do, what not to do, and how?

High level support is critical to the success of any program like this. I especially liked the visits of Harri-Pekka Kaukonen (CEO) and Jackie Cuthbert (CHRO) to the bootcamp. Both are strong supporters of the program and it’s great that they are visible and transparent in that. I loved the way the project leaders engaged with them, and the different styles they used in pitching their ideas and themselves – not only using facts, figures and beautiful design, but also appealing to their emotions (“Harri-Pekka, imagine your daughters using this”; “Jackie, this will help you find more great shoes”). Definitely some natural sales talent in the room!

The accelerators have proven the case that women rule at Sanoma. All five of the first round of new ventures are led by women and four of the five teams at this particular bootcamp were led by women too. Probably the sample size is too small to draw any conclusions about this phenomenon of the superior performance of women in the accelerators. Our experience on the whole is that the participants who came with the best ideas, put the most effort into developing them and sold them most effectively, came the furthest. Is there something about the accelerators and intrapreneurship that might give Sanoma a competitive advantage by creating an innovation and venturing space that particularly appeals to women, or at least supports a level playing field for talent?

Next steps

Based on the outcomes of the bootcamp we are now working on the next steps. In some cases, we will create new ventures. In others, we will likely sponsor next steps in the local business. There is one case where we believe we might need to work with an external partner to win in the market. We are currently engaging with the various stakeholders and expect to have made agreements within two weeks.

The clock never stops ticking of course. On Monday we will launch the recruitment drive for the #commerceaccelerator that we will run in the Autumn of this year, in cooperation with a number of leading European universities. Looking forward >>.