Mexican media company Grupo Acir needed to embrace digital technologies, strategies and practices to attract and keep online and mobile listeners and advertisers.
Grupo Acir enlisted Digital Business Services by NTT DATA to assess its digital readiness and develop a multiphase plan to transform its business.
“Our partnership with Digital Business Services by NTT DATA is not only helping us differentiate our company in the marketplace, but it’s also positioning us as a market leader”.
To stay relevant in an increasingly digital world, companies of all types and sizes must adopt a culture of digital innovation. With the rapid growth in Internet usage and mobile devices, customer expectations are shifting toward digital content, communications and connections. Industries are also facing new competitive and regulatory pressures. For companies that have thrived for decades using traditional business practices, a digital transformation can seem daunting.
Grupo Acir, one of Mexico’s leading radio broadcasting companies, owns and operates 60 radio stations offering a variety of music formats to listeners of all ages. As the company approached 50 years of success, its IT leadership saw the potential that digital technologies offered to better engage its listeners and advertisers, drive additional revenues, achieve internal efficiencies and stay competitive. IT leaders realised, however, that the company was not ready to initiate something as significant as a digital transformation on its own. Antonio Ibarra, Grupo Acir’s CEO, explains, “As a traditional, family-owned company, Grupo Acir had some internal cultural and budgetary challenges. Tackling a digital transformation wasn’t even part of our mind set until recently”.
For help evaluating its business and operations, and for insight into the digital landscape, Grupo Acir met with Digital Business Services by NTT DATA. As CEO Ibarra explains, “More and more of our listeners and advertisers are embracing a digital world. In early conversations with Digital Business Services by NTT DATA, it became clear that staying relevant meant our company needed to do the same. They helped open our eyes to not only the advantages of digital technologies in the near term, but also to the possibilities we could realise with a digital transformation”.
Through discussions with consultants from the Digital Business Services team, Grupo Acir became more clearly convinced of new opportunities for radio broadcasters created by digital technologies. These opportunities included engaging with radio listeners via social channels to promote its brand, gain needed insights and sell products and services; diversifying beyond terrestrial products into event marketing and digital advertising; and mining valuable data from digital channels to improve content for programming, advertising and events.
Grupo Acir’s leadership team decided to move forward on a transformation. They knew they needed the help of a strategic partner, and their requirements were specific: a relevant background and experience in digital transformation; experience in digital strategy and operations, business process and organisational change management; objectivity; and a hands-on, productagnostic approach. The Digital Business Services team became Grupo Acir’s trusted advisor.
The Digital Business Services team proposed a plan to help the company modernise in phases that fit its readiness, timeline and budget. Manuel Perez, CIO at Grupo Acir, remarks, “They came in and took the time to learn our business and really understand our company and culture. They developed a pragmatic three-phase digital transformation strategy for us. I appreciate their hands-on, practitioner-based approach”.
In phase one, NTT DATA assessed Grupo Acir’s digital readiness in key areas that included culture, strategy, operations and organisational capabilities, and then identified related gaps and outlined recommendations to address them.
During phase two, NTT DATA introduced operational improvements that helped Grupo Acir better leverage its existing social media channels and web properties. “They helped us make immediate improvements while we moved forward on the larger digital transformation”, explains Perez. They also introduced some new tools and technology so the company could gain better insights into the needs and preferences of listeners and advertisers, and how those overlap. “It is essential to have tools that help us connect to both our audience and our advertisers”, says Juan Carlos Alonso, marketing director at Grupo Acir. “Now we know more about what our customers are talking about – what they like and don’t like. We no longer have to guess”.
–In phase three, NTT DATA identified potential opportunities – approximately 20 high-value digital use cases – that would enhance Grupo Acir’s listener and advertiser experience, improve internal operations and extend the company’s business model. Then they developed a comprehensive plan to realise these opportunities. This plan includes needed digital investments and their associated cost justification, along with a time sequenced roadmap for delivery.
With NTT DATA’s guidance, Grupo Acir is building a digital ID of its customers. Says Ibarra, “Its innovative stuff”. Understanding more about its listeners and advertisers helps the radio station deliver the content and experiences its audience wants, and take advantage of new advertising opportunities and relationships. It opens the door to a whole new revenue model – selling new products and services across the company’s entire value chain. “Our partnership with Digital Business Services by NTT DATA is not only helping us differentiate our company in the marketplace, but it’s also positioning us as a market leader”, adds Ibarra.
After half a century of operating with traditional conservative business practices, Grupo Acir will soon be positioned to fully leverage social media, mobile, analytics, the Internet of Things and more – setting itself up for success today and into the future. “We are excited about the next 50 years”, says Ibarra.*
*This case study was originally written by Dell Services, which has become NTT DATA Services as of November 2016.