June 20, 2012
A new report warns that it will be either the quick or the dead, as the nation's two biggest media organisations wrestle with the challenges of the digital age.
Accounting firm Deloitte says successful innovation in the media will be driven by strong leaders.
Global investors placed a 15 per cent equity premium on companies with strong leadership, Deloitte's Innovating for a digital future report showed.
Conversely, there was 20 per cent equity discount on organisations that had ineffective leadership, the report found.
Deloitte partner Stuart Johnston said one of the biggest challenges for Australia's media organisations was how to continue to embrace new ideas.
"Media organisations are still learning," Mr Johnston said.
"They face an incredible challenge, going forward.
"But really it comes back to how well these organisations look from an innovation point of view."
Although Mr Johnston declined to speak specifically about News Ltd and Fairfax, which are both making severe cuts to their workforces, he said the Australian Broadcasting Corporation (ABC) was a very good case study in how to embrace innovation.
The ABC concentrated on resources and then organised the business around its digital capability.
Mr Johnston said the future shape of Australia's media industry would depend on how it learned and innovated in the face of structural and cyclical change.
Innovation was critical to the survival of companies such as Apple and the lessons of Deloitte's study could be applied across every industry, he said.
There were threats to every organisation as the world became more digitally connected.
"The first step is how you prepare your organisation to answer those challenges but also how you prepare the organisation to be able to see the opportunities that may arise over time.
"The organisations we've seen topple over the past 10 years have all been closed (to change and new ideas)."