1. A Strategy Simulator for Newspapers: Overcoming “Silos” to Do Whole-Enterprise Planning Gary Hirsch, Vincent Giuliano, Melody Winnig International System Dynamics Conference New York July 22, 2003

2. Challenges to Newspapers Declining readership and advertising market share Downward spiral, cannibalism; consolidation had reached its limits Mired in traditional management model-- functional silos Cautious exploration of online opportunities, but clash with print-dominated thinking

3. Purposes of Simulator Help newspapers examine management issues from strategic, whole-organization perspective –capital investment and technology –staffing –marketing, pricing, promotion –content (editorial/advertising mix, special supplements) Understanding dynamics of online business –totally unfamiliar to newspaper managers –learn through management gaming –difficult, because “game” was a moving target

4. Purposes of Simulator (Cont’d) Explore transition to online –Investments required to build critical mass –Coordination with print operation (e.g., advertising sales, use of editorial content) –Begin thinking about strategy at the enterprise (media company) level

5. Development El Universal of Caracas, Venezuela served as laboratory for development and testing –150,000 daily print circulation –ambitious online activity Miami Herald provided additional insights and evaluation Belo chain, Arizona Central Group provided additional evaluation and feedback