BusinessStrategyDAMRevolution Widen WP

7/30/2019 BusinessStrategyDAMRevolution Widen WP

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Your business strategy and the DAM revolution

The strategic business cases for implementing digital assetmanagement software to support your communications andbottom line

Empower your digital media.

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Copyright 2012 Widen Enterprises, Inc.

All rights reserved.


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2Copyright 2012 Widen Enterprises, Inc. All rights reserved.


The strategic business cases for implementing digital asset management software to support your communications and bottom line

Your business strategy and the DAM revolutionThe strategic business cases for implementing digital asset management software to

support your communications and bottom line

Theres an old saying that goes, the revolution will not be televised.

However, quite the opposite is taking place in todays business arena, where signs are growing of a wave ofrevolutionary business transformations that definitely will be televised and those transformations are beingdriven by video. For any companys leadership, its a question of whether an organization leads the charge nowor plays catch-up later.

These sweeping changes are closely connected to the convergence of such developments as the expanding roleof social media, the growing consumption of media (especially video) on mobile devices, and the impact of bigdata capabilities, all developments that marketers and C-level leaders should be keeping their eyes on andadapting to. A key factor in enabling these revolutionary transformations is the increasingly sophisticated use ofdigital asset management (DAM) systems that can effectively deliver video in ways not previously possible.

Savvy marketing executives, brand managers, and CMOs are putting it all together and recognize the marketingimplications of these DAM-driven changes. In addition, the broader strategic implications of DAM are beginningto also get attention from C-level executives and senior management.

For example, many see the DAM-driven changes as fundamentally re-engineering the digital supply chain a transformation that is anticipated to trigger even deeper and broader changes than those caused by there-engineering of the tangible supply chain that radically re-shaped the business arena beginning in the late1980s and early 1990s.

A variation on this theme has been voiced by Ernst & Young consultant Peri Shamsai, who coined the phrase,the mediafication of business, to describe the DAM-related changes that are under way.

It is all about exploitation of content and the worldbecoming digital. Companies are going from tape assets fortelevision to digital assets and streaming online. Withouthaving digital asset management systems in place, you cannotdo any real kind of scale in your digital business.

Ernst & Young consultant Peri Shamsai

In a related vein, a report from Forrester Research released earlier this summer emphasized that, given theamount of video and images on the Web or in marketing content now versus just five years ago more andmore organizations understand the importance of a cross-channel rich-media strategy to improve customerexperiences, [and] DAM for customer experience is experiencing a revival in interest across verticals beyondtraditional rich-media-heavy industries such as marketing, advertising, publishing, and entertainment. And a


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Gartner report explains that digital asset management is regaining attention in organizations. This is becauseits getting easier for employees to capture multimedia objects (such as still images and videos) for workpurposes, and because the channels for employing them are multiplying.

For a quick illustration of the clear impact DAM can have, here are examples from three very differentorganizations Motorola, a medical device supplier, and UNICEF that point toward the far-reachingimplications that similar initiatives have for marketers and business leaders across virtually every businesssector and geographic region.

First, consider the capabilities that MotorolaMobility has rolled out in the last fewmonths for managing video. Their DAMsystem is enabling the company to moreeffectively address the complex marketingand customer-support challenges that

face the global supplier of a multitude ofmobile phones marketed by numeroustelecommunications service providers.

The core of Motorolas DAM system is itsdigital asset library, which is designedto address the companys multi-channel

publishing needs. Basically, this Motorola library contains approved versions of companys digital assets, andMotorola oversees the authorized access to those assets.

It might seem like a mundane mission. However, consider a couple of the benefits DAM software brings Motorola.

It enables Motorola to much more effectively manage the companys growing library of model-specific

how-to videos that explain various features of the phones that it markets. This includes managing videosthat explain everything from How to use email to How to use Smart Actions. The DAM system not onlystores the how-to videos, but it also makes sure that the right digital assets are delivered to the right users,e.g., distinguishing between those users who need Smart Action videos for Motorolas Droid Razr Maxx forVerizon versus those who need the videos for Motorolas Atrix 2 for AT&T.

Easy delivery of videos that are optimized for specif ic viewing and user experiences. This includes notonly optimizing videos for the specific viewers device and format including phones, tablets, iOS, Android,Macs, PCs, various web browsers, and in-store kiosks for POS demo but the DAM system even can resizethe videos to reduce the bandwidth they use so that they are more appropriately displayed. For instance,

the digital asset that is delivered can be optimized based on the last mile of the access so that the versionof a video sent to a viewer in Taiwan (which has lots of bandwidth for viewing video) is different from theversion sent to Brazil (where the bandwidth is drastically more constrained).

Overall, Motorola is reaping enormous benefits from its DAM system, including:


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Significant cost savings

Improved speed and quality of service

Greater marketplace agility through drastic reductions in the time that it takes to distribute digital assets and to roll out new initiatives in a controlled way to multiple users globally

One of the ways Motorola Mobility understands the value of digital asset managementis through Net Direct Benefit calculations. These will help you understand the value ofyour assets, which in turn will help you understand how to invest in protecting andmanaging them. Here's how Motorola did it:

ROI Metrics: Net Direct Benefit

Average value per image = $500, $250, $125?

Number of assets in system & added over 1 year of time

For example purposes: 2010 total assets added to the system = 10,000

1 years imagery value = Avg value per image x number of total assets added in 1 year

1 years imagery value @$500 = $5,000,000@$250 = $2,500,000@$125 = $1,250,000

Number of yearly downloads = Example value = 80,000

Assume 50% usage (or whatever you are comfortable with) 40,000

Cost avoidance = 50% Yearly Downloads X Average value per image

Cost avoidance @$500 = $20,000,000@$250 = $10,000,000@$125 = $ 5,000,000

Net direct benefit = cost avoidance - 1 years imagery value

Net direct benefit @$500 = $20,000,000 - $5,000,000 = $15,000,000@$250 = $10,000,000 - $2,500,000 = $7,500,000@$125 = $ 5,000,000 - $1,250,000 = $3,750,000

For more guidance on ROI calculations, contact Widen at [email protected]

Another example that illustrates a different facet of the DAM-enabled revolution is the way in which vendorsof medical equipment and supplies are looking to use DAM to enhance pre-sale marketing and post-salecustomer support.


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Pre-sale, the vendor can use DAM software to empower doctors, nurses or other health professionals toeasily find informational video (their preferred medium) that can help them to better understand the valueof a new product or service.

Post-sale, the vendor can use its DAM system to effectively store, manage and deliver videos that providecustomers with self-managed, timely support for their queries.

In particular, the popularity of iPads and other tablet devices among medical professionals means that, forexample, a healthcare company dealing with complex surgical devices can make media more useful andaccessible (for example, animations that demonstrate to surgeons how these products actually work). Usingthese videos, the vendor can provide visualizations that illustrate the inside of the brain, heart, or artery, andshow how a device actually augurs plaque in those areas serving as a very powerful marketing tool forthe product.

An example of a somewhat different flavor of DAM applications comes from UNICEF, which uses its DAM system

to support operations in 200 off ices located in 191 countries and territories around the world, along with itsfundraising partner organizations in 36 industrialized countries. The agency uses professional journalists andphotographers to report from crisis locations around the world where children are affected, and it has foundthat video is not only effective for communicating complex stories and engaging audiences, but it also hasenormous power as a medium for viral distribution especially via social media. UNICEFs DAM system enablesthe agency to effectively store, retrieve and distribute the video files. This makes it possible to quickly findvideos and make them available directly to journalists and news organizations (and, to a growing extent, tomake them available for sharing in social media).

As these examples illustrate, DAM systems enable organizations to successfully address a variety of challengesand opportunities that are arising as the line between the management and the publishing of digital assetsblurs and disappears. In effect, web-based DAM software becomes a digital media publishing solution that

makes it easier to publish and share digital assets on multiple platforms from a central location.

Particularly important benefits of a well-designed DAM system include the ability to

Keep track of approved and updated standard versions of files, thereby maintaining message consistencyand version control,

Easily customize on-demand, user-managed delivery of the right format for the job offering tremendoustime savings and cost efficiencies,

Deploy and track video that connects with social media initiatives more nimbly


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Check out our recorded webinar on Managing Video Assets in the Resources section ofwww.Widen.com.

In the same way that the Web has made everyone a publisher, the more recent explosive advances in digitalvideo have meant that all organizations have become media producers. Coca-Cola, P&G, and Kaiser Permanentemight not be media firms, but each of them now is producing as much video as comes out of many big mediaorganizations. All these videos represent increasingly important assets that need to be managed by those firms.

Down the road, DAM systems can enable organizations to effectively capture, store, and deliver their knowledgein ways that previously had not been possible, thereby opening new opportunities to create value for customers.As a result, an increasing proportion of the assets and value of organizations are represented by their intangibleassets often as knowledge that is captured in digital form.

Through savvy use of their digital capabilities, organizations can make entirely new uses of previously latentassets. They can, for example, weave digitally delivered knowledge into their products and services so that thisknowledge component becomes a key part of the value that the company is delivering potentially creatingentirely new business models for an organization.

At the same time that DAM capabilities offer exciting new opportunities, there also are major challenges.

Here are a few tips for organizations that want to begin to tap the potential of the new DAM-powered capabilities:
http://www.widen.com/white-papers-videos-webinars-newsletters-and-more/webinars/http://www.widen.com/white-papers-videos-webinars-newsletters-and-more/webinars/


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Consider starting small.

It can be a good idea to begin your DAM implementation with a small, well-defined initiative (perhaps insupport of a new product that is being launched or in support of a silo within the company). Typically, as

a DAM system begins to become established and others in the organization see what it can do, they startto recognize ways in which they could benefit from the ability to better manage and deliver digital assets.A common response is, I did not know that DAM could do that. Where can I sign up? If a DAM system isdone well, it brings new business opportunities to your organization. The right DAM system should becomelike the popular kid in the class, with everyone wanting to spend time with it.

Do not think of a DAM system as a project.

Any project has a beginning and an end. In contrast, a DAM system will be an on-going, evolving capabilitythat needs to be integrated it into your company as a living, breathing part of your organization. Forexample, a lot of organizations do not realize that a DAM system is something that needs to be managed and that it is important to have staff that is responsible for the management of the digital assetmanagement system.

Put an emphasis on learning that can help your DAM system change and adapt.

The capabilities of DAM software is evolving rapidly and the opportunities to apply those capabilities aregrowing explosively. This makes it crucial to explicitly build a learning component into any DAM initiative.Make sure to constantly monitor what you have learned so far, so that it can help guide you to where youare going next.

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