The Impact of Information Technology on Business Model Changes in Print Mass Media Industry: Case Study of Surat Kabar Republika

Abstract

The development of information technology has transformed business model in most of major industry, including mass media industry. Republika, as one of national newspaper in Indonesia has embedded Information Technology (IT) in their strategy and capabilities of the company in response to the changes in customer’s behavior who mostly demand instant access to content, whenever and wherever. This study aimed to understand the impact of IT on business model changes in Republika’s strategy, capabilities, and values. The authors also focused on the analysis of IT impact, whether IT drives revenues growth, drives asset efficiency, drives cost savings, or create a virtuous cycle of innovation, productivity, and increasing returns. The research methodology used in this study is qualitative method through observation and literature study. The results concluded that IT has increased Republika’s online advertising revenue by 43% compared to online advertising through publishers based on Republika’s annual report. The use of social media has also resulted in a significant increase in Instagram audience by 164%. Whereas other social media platforms grow by 5-10%. Information Technology also facilitated efficiency in distributing Republika’s value propositions, costs savings in their core processes, and also generate new revenue streams (digital newspaper-Epaper).