Media

A market-share leading US record label company was challenged with its ability to participate in new market opportunities and was experiencing compression of their revenue and margins. At the same time, the Media industry went through disruptive changes to their distribution channels caused by the Internet. The shift from physical to digital media drove significant growth in transaction volumes.

The revenue per transaction contracted and ended up below the transaction unit costs, which made the client's business model unsustainable. Outdated and disjointed back-office systems created significant execution costs and go-to-market risks for the business, in this rapidly changing business model.

Exigen's IT 2.0 Business Solutions for Operational Innovation and New Product Introduction were used to streamline and integrate the client's systems.

Results

• Reduced transaction unit costs by 40-60% by sharing Business Process Utility assets
• Improved time-to-market of new products by 5x
• Increased the ability to up-sell to gain 30-50% of revenue from new products

Following, are some of the IT 2.0 ingredients used to deliver these results:

Contract – Equity Joint Venture Business Process Utility (BPU) was the best model to transform the royalty processing part of the business

• Market metrics, including market share, equity growth and economic value added
• Partners rewarded through profit and equity sharing

Methodologies

• Exigen Operational Innovation and New Product Introduction business solutions methodologies were applied to create an agile, highly efficient and scalable solution in the form of the BPU.
• Exigen capital resources secured the required investment

Technology

• Combination of Exigen Process Backbone, business process rules, and best practices for accurate and compliant royalty, residuals and participation calculation

Delivery

• Combination of offshore/onshore development
• Provisioned as a Business Process Utility managed service offering