Tag Archives: Netherlands

Wise crowds and wildcards: the moment of truth for the CommerceAccelerator

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Commerce-Accelerator-logoMid-September we kicked off the #CommerceAccelerator. This is the third in the series of Innovation Accelerators at Sanoma. We have two big goals for the program: 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.  We believe this will boost our capability to succeed in the overall digital transformation of the company.

This accelerator has two new angles. Firstly, we are focusing on “enabling commerce” rather than creating and distributing content: how can we use our ability to inspire, engage and reach consumers to enable commerce? And secondly we have opened up the process to include about 70 students from 6 European universities, to bring an extra richness of talent and ideas. This has given a great new twist to the proceedings.

Vote yes to make it happen

Previously we have selected the top ten ideas and their owners to build pro-MVPs. vote-yesTomorrow evening is the moment of truth!  In a live webinar we will select the top five that will be given the opportunity to go to bootcamp. At the bootcamp we will be build working prototypes and evaluate the potential of both the concept and idea owner to take the next step in our intrapreneurship program and establish a new venture at Sanoma.  Places at bootcamp are highly coveted and are a ticket to build your idea and show your talent at our company.

Wisdom of the crowd and expert opinions

Three of the five winners will be chosen by the public vote with the final two positions awarded by a team of experts (the “wildcards”). We took a first view on the ten competitors in the expert team last week and made a preliminary ranking for the wildcards. The experts tend to use the wildcards to strengthen alignment with the overall strategic goals of Sanoma. It was really great to see the pitches and concepts – it’s going to be a hard fight for the places tomorrow! In previous accelerators it’s been remarkable to notice how similar the voting of the wisdom of the crowd and the experts has been.  In some ways that gives a certain level of confidence that we are making the best choices. (In others, I wonder if I could save some money on the experts :-)).

Three criteria

There are three key criteria that will be considered when voting. 1. Strategic fit with Sanoma.  2. Ability to operate.  3. Financial attractiveness.  Most of the ideas tend to score highly on the first two points, partly due to the guidance we give during the process and partly because of the experience of the participants.  My biggest question usually relates to the financial attractiveness of the idea – particularly with regard to scale. What are the ideas that could really succeed at scale?

Intrapreneurs

Last week we reviewed the first quarter performance of the new ventures Hubly and SpotandShop that we created from the #ContentAccelerator.  I was truly impressed by the progress Birgit and Nikky have made, including first sales already!  It’s really brilliant how they have taken the opportunity and brought it to life. Respect!  I hope this is a sign of what is to come from the #CommerceAccelerator.

Good luck

So, I’m excited about the outcome of tomorrow’s voting.  Good luck to the ten teams competing and thanks to everyone who joined the program. It will be great to see the winners at bootcamp in Amsterdam during the week of 9 December! Looking forward >>. 

I’m interested to hear how other corporations boost innovation, or any feedback or comments you have on our program – feel free to drop me a line!

 

NU-lab: open innovation in the news

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NU nl InfographicOne of the absolute success stories of Sanoma in recent years has been the illustrious growth of NU.nl, the leading news site by visitors and strongest media brand in The Netherlands. NU.nl prides itself on speed (“the latest news first”), neutrality and user-friendliness and I pride myself on being one of its heaviest users :-).

Usage of NU.nl has grown rapidly from about 500 M page views per month in the summer of 2011 to almost 1.000 M by the summer of this year. That’s massive engagement, especially if you consider there are less than 17 M inhabitants in the country!  This spectacular growth has been driven by mobile consumption – more than 2/3 of page views now come from mobile, with Android devices leading the charge recently.  NU-apps have been downloaded almost 5 M times so far.

Strong  Sanoma Digital Network

NU.nl is a cornerstone of Sanoma’s digital network – comScore ranks Sanoma #4 of the big 5 in The Netherlands with 8.5 M unique visitors (MUV) in October 2013  – behind Google, Microsoft and Facebook (12.7, 11.1 and 9.8 MUV, respectively), but ahead of eBay (7.1 MUV).  Other Dutch media groups are also performing well and are represented in the top 20, but lack the reach of Sanoma.  The state-subsidised NPO, and privately run TMG, De Persgroep and RTL Groep, registered a reach of 6.3, 6.2, 5.3 and 5.2 MUV respectively in October.

NU.nl is also a cornerstone of the newly formed business unit Sanoma Digital that will boost digital growth, innovation and capabilities at Sanoma.  Sander Stallinga, the superstar publisher of NU.nl will lead the domain of Digital Content in the new Management Team.

Winning team at NU.nl

The success of NU.nl has been created by the NU.nl team and I am really proud of that team. One of the things I respect about them is that they are looking ahead. This is a sign of a winning team! It can be easy to sit back and relax when you achieve success.  But this team is working hard on further developing the brand to make it even more relevant for our customers in the future.  Part of this relates to extending NU.nl into new verticals, such as nutech.nl (great launch recently!) and new media (especially mobile and video).  But we want to bring an additional richness to innovation at NU.nl, using not only the talents of our own people but engaging with outside talent too.  For that reason, and building on the early success that we have had with our series of innovation accelerators, we decided to run an open innovation accelerator on news called NU LAB, sponsored by Sander Stallinga and in cooperation with the excellent Joris van Heukelom at MakerLab.

NU LAB

NU-LAB-blogWe have accepted more than 150 participants into the program. It’s a highly diverse group that includes not only journalists and Sanoma enthusiasts, but also professionals from advertising agencies and government ministries and students (about a quarter of the total).  We even have a 16 year old school pupil on board.  It’s really great to see this rich diversity of talent and enthusiasm!

The program started with a kick-off, and is followed by a series of webinars for inspiration, training, and guidance on the assignments. Through a competitive process we expect to select the top three ideas that we will send to bootcamp at the end of January – the winning idea owners will form a team with an interaction designer, designer and developer to build a working prototype of their concept.   The winner will receive a prize of € 10.000 and the chance that their idea will become part of the superbrand that is NU.nl.

Quick pitch and value proposition

In the first webinar, Gert-Jaap Hoekman (Editor-in-Chief of NU.nl) explained the three domains that form the scope of this open accelerator: the distribution, production and bundling of content.  Brechtje de Leij (Senior Product Manager Mobile), explained how we work.  Our American guest Mark Briggs (author of Entrepreneurial Journalism and Journalism 2.0) gave an inspiring session on innovation in journalism.  And Joris van Heukelom (Partner at MakerStreet) talked about design thinking.  Participants also got their first assignment: develop the quick pitch and describe the value proposition for your idea.

Customer validation

In the second webinar Mark Vos (Editor Social and UGC at NU.nl) talked about the role of the user in the creation, aggregation and selection of news, and Jerry Vermanen (data journalist at NU.nl) about data journalism.  Joris van Heukelom went further with lean product development.  Participants got their second assignment: customer validation.  This is so important on the journey of discovery!  This is the assignment that the participants are currently working on.

Inspiration

I’ve been browsing the content of the platform this afternoon and always find this insightful and inspiring.  I love to see the ideas and am curious about the person behind the idea. I always wonder: why is this important to them?  And I cannot deny my competitive streak which generally guides me to the leader boards for ideas and engagement – they are quite powerful in steering perception.

Respect!

So, we still have a couple of months to go, but I would like to express my heartfelt support for open innovation at NU.nl and for the participants who have joined us on this journey.  Respect to you for looking ahead and making something new!

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.

SanomaVentures helps develop young enterprises in digital information, entertainment and education

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sanoma_ventures_header

Digital technology is driving fundamental change in media and learning markets.  Sanoma is responding to this by a) transforming core brands to play multichannel and b) building new digital brands.  I’ve recently posted about the accelerators at Sanoma and the role they play in the (early-stage) innovation portfolio.  In addition, the company has established SanomaVentures (www.sanomaventures.com) to support early-stage (external) businesses looking for growth funding following initial market success.

Herman Kienhuis, Investment Director at SanomaVentures

Herman Kienhuis, Investment Director

I’m enthusiastic about SanomaVentures.  I think it brings Sanoma a lot on this journey of discovery to the digital future. Clearly it will not be an answer to all of the opportunities and challenges we face, but it is an important piece in the overall puzzle.

This week I caught up with Herman Kienhuis (@kienhuis), Investment Director of SanomaVentures about their approach.  I believe in Herman and his team.  I think he’s smart and professional.  He’s proactive and takes initiative – he’s out there in the network.  He’s commercial and has sharp analytical skills, and thinks creatively about negotiating attractive deals for both parties.  And I like him – he’s a decent chap.  I respect his support for microfinancing organization Kiva.org and he’s very sporting with his annual Movember action.  Here’s what he had to tell.

Why was SanomaVentures launched?

We had five main reasons to go for this.  It gives us access to new sources of innovation and entrepreneurial talent.  It creates new avenues for growth.  It’s a vehicle that allows us to spread our investments across multiple new ventures, also making use of media as part of the investment currency.  And we felt the time is right, partly because of the fundamental shift in consumer, advertiser and learning behaviour and partly because of the rise of the start-up and venturing communities in our markets.

What’s your investment scope?

We focus on areas where the strategic fit with Sanoma is the strong – specifically, digital consumer services; online video and connected TV; advertising, marketing services and e-commerce; mobile & tablet apps; e-learning & personal development.

What are your investment criteria?

We invest in enterprises that are entering their first growth phase, where cooperation with Sanoma can add value through our media, network and expertise.  Within that scope we make our assessment based on five criteria namely a high quality team, revenue & profit potential, sustainable competitive advantage, international scalability and strategic fit with Sanoma.

What does Sanoma have to offer?

Typically, we invest € 100 k – € 500 k as a combination of working capital and media, with the mix depending on the needs of the enterprise.  Sometimes cash is king.  In other situations the reach and exposure of media offers a significant value to boosting the brand, engagement and conversion.  We have found both cash and media to be useful and valuable currencies.  We also bring online expertise; Sanoma has highly successful digital operations, including NU.nl and Kieskeurig.nl in The Netherlands for example.  And access to our networks – not only advertisers and consumers, but also to other expertise.

How does the process work?

We spend a lot of time networking and orienting ourselves in the start-up community. When we identify opportunities where the fit is good we make an assessment of the venture against the investment criteria mentioned earlier.  If the opportunity is attractive we negotiate terms in preparation for decision-making by both parties.  If the investment case gets the green light, we then proceed to due diligence, contracting and closing.  The entire process typically takes about 3-4 months from first contact to closing.  We then move forward with the funding and access to media, and supporting with any agreed expertise.

How is SanomaVentures organized?

We launched in The Netherlands, with two Investment Directors (Antoine Hendrikx and me), an Investment Associate (Sjoerd Huitema) and access to two Legal Directors (Marije van Akkerveeken and John Vogel).  In the meantime we have also extended the concept to Finland with Investment Director Ville Varis.

Have you closed many deals?

To date we’ve made investments in nine ventures: Vault79, a designer fashion auction; Fashionchick*, a fashion storefront; VirtuaGym, an online fitness platform; Peerby, a local P2P sharing platform; Scoupy, a mobile couponing app; Truly Yours, a beauty products discovery subscription; brandkids, a kids fashion e-commerce platform; Nosto*, e-commerce personalization and recommendation tools; and Fosbury, a passbook campaign management tool.   We see a lot of potential and promise in these investments and are proud to be working with these entrepreneurs.

Good start.  See any challenges ahead?

Sure, opportunities and challenges always go hand-in-hand. A couple of areas come to mind.  In the first year we have been focusing on making the initial investments.  Moving forward we have to combine scouting and deal-making with supporting the growth of the ventures – that’s a more complex task.  Also, we expect that about half of our investments will fail – we will have to make tough calls on which ventures should get additional funding and where to take a loss.  Given the relatively early stage of these ventures those calls might not always be clear-cut.  Maybe the first year was the easiest; now the hard work starts.

How do you look back on the first year?

From a professional perspective, I think we have been successful in establishing the SanomaVentures brand in the market.  We’ve made some very promising investments.  We’ve built a good investment team and established strong links to some great entrepreneurs.  And there’s been a positive buzz about SanomaVentures, both inside and outside the company.  From a personal perspective, it’s been an exciting and demanding period in setting this up, well worth it.

Thanks for the good update Herman.

*The investment in Fashionchick was made prior to the establishment of SanomaVentures and the investment in Nosto was made by the Finnish team