AMERICAN BUSINESS MEDIA/BOOZ & COMPANY STUDY REVEALS TWO PATHS
TO PROFITABLE GROWTH FOR B-TO-B INFORMATION COMPANIES
Study Highlights Best Practices for
Developing Superior Products and Services for the Marketplace
NEW YORK, March 4, 2009 - A recent study of business information companies found that there are two paths companies can pursue to transform their businesses, and each has its own distinct capabilities required for success. Commissioned by American Business Media (ABM), the global association of business information companies, and conducted by management consulting firm Booz & Company, the study further found that business information leaders who are far along one or the other path outperform industry averages.
The study, titled “A Roadmap for Profitable Revenue Growth,” outlines two paths for transformation that involve practical ways to create new and innovative products and services for customers. The first, called “marketer-driven solutions,” includes advertising, marketing, and custom services that meet b-to-b advertisers’ unmet needs. The second, “end user-driven solutions,” is about developing content, data, applications, and services that enhance productivity of the end user (readers, viewers, attendees).
“Both paths involve developing new capabilities to build a leading position, and the capabilities required for success on each path are different,” said Matt Egol, partner at Booz & Company.
The benefits of following one or the other transformation path are clear, as those companies further along either path outperform their industry peers. Three-fourths of these leaders enjoy revenue growth above industry averages. Further, in 2007, leaders doubled the average growth rate of the industry overall (11 percent vs. 6 percent) and outperformed in print revenue growth by an even greater margin (5 percent vs. -2 percent). The study findings also indicated that leaders are still gaining share in today’s more turbulent market.
Additionally, the study highlighted seven building blocks for success with distinct best practices for each transformation path. These include editorial/data capabilities, market and end user insights, innovation, sales effectiveness, relationship marketing, operational efficiency, and globalization.
Booz & Company and ABM unveiled the study findings at ABM’s Top Management Meeting in November. Said Gordon T. Hughes II, president & CEO of ABM, “Our members are not only embracing this study, but we are finding that a number of them are already using it as a basis to drive their agendas for the year as a way to enhance value for their clients and customers.”
Hughes added that ABM will continue to educate and engage members around the study findings and roadmap for implementation on an ongoing basis throughout the coming year as part of ABM’s programs and communications with its members.
About American Business Media
Founded in 1906, American Business Media is the association of business information companies, delivering business intelligence to industry professionals worldwide, including Madison Avenue, Wall Street and the Beltway. Its 300-plus member companies reach an audience of more than 100 million professionals and represent nearly 6,000 print and online titles and over 1,000 trade shows, with well over $33 billion in annual revenues.
About Booz & Company
Booz & Company is a leading global management consulting firm, helping the world's top businesses, governments, and organizations. Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914.
Today, with more than 3,300 people in 59 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage. For our management magazine strategy+business, visit www.strategy-business.com.
Visit www.booz.com to learn more about Booz & Company.
American Business Media
Booz & Company