THE BUSINESS CHALLENGE

A specific example of the way in which Interactions influence each other is explored further is the traditional print media companies – such as regional newspapers – that are by and large at the crossroads. A particularly disturbing trend is that print media companies are losing revenue to the Internet (Forbes, Time Inside Business, Business Week Online). With the advent of the internet and new media, many related market segments in areas such as print media, video games, television, radio, and particularly advertising and marketing (which seeks to gain from the advantages of two-way dialogue with consumers) are rapidly evolving. For example, content production can be by individuals and distribution can be though U-tube, thus disrupting the traditional value chain (content production, packaging, distribution) of newspaper companies. The advertising industry has capitalized on the proliferation of new media by new technologies for interactive advertising (Arie 1997, Boczkowski 2004).

To understand the larger context within which Interactions change we re-draw and re-associate both the traditional and the more disruptive new media Interaction context and value chains in this industry at the top of the Figure 1. The traditional RED Interaction chain of content creation → packaging → distribution is deployed by a specialized infrastructure of agents – reporters, production equipment and feet on the street. This is now being replaced. The RED Interaction in New Media is now being supported by a new Role set of individuals, inexpensive equipment, and the Internet. In the context of this dynamic we can also next identify the forces on the traditional print media companies.