I was interested to see the New Orleans Times-Picayune in the news again, reporting positive results and growth in readership as a result of their actions in  late 2012 to scale back their print publication from daily to three times a week while continuing to put out a fresh issue online every day. They apparently remain a profitable newspaper and, so far, the largest to make this conversion in the United States. A very visible sign of the times, it's a good example of a company preserving its traditional business through transition. Addressing the need for change, they are holding onto the print subscription and advertising base while providing an easy online platform for conversion to a more accessible and convenient form of daily delivery. They are making this transition based on the anticipated model three years out rather than the current cost-benefit model. Although 70% of the Times-Picayune's existing customer base is currently online, community backlash against the change has been strong. However, they stay committed to making this transition, looking to the future and taking action before it becomes an economic necessity.

In another example, Netflix began transitioning over three years ago to a streaming model of movie home delivery. In 2011, they surpassed iTunes for the greatest share of streamed movies, and they sold an equal amount of streamed TV programs. As of yearend 2012, they continued to surpass estimates, having added 5 million in U.S. and International customers while improving margins and profitability. This did not come without problems in pricing and resistance from consumers. But Netflix listened to customers, made adjustments, and got it right.

In all business sectors, there are many examples of transition attempts-successful and failed-that demonstrate the preservation of the old model through evolution. Looking at the current environment, it seems that the banking industry's time has come. Forced by nontraditional delivery models, the retail and small business sectors will be the first to experience this need for change. Case in point: Bret King was awarded the "Innovator of the Year" title for 2012 by Bank Technology News in anticipation of the launch of Movenbank. Movenbank is billed as "the world's first cardless bank" and is described as combining the best aspects of a financial services provider with a customer-focused tech startup. Integrating banking and payments partners, mobile operators, consumer credit groups, social media partners, merchants, and many others, it will be Smartphone-based, and traditional services will be linked from the beginning.

Movenbank is not alone in this space, and strategic delivery alternatives need to be considered soon so that we are not left with the proverbial "buggy whip" of delivery channels. The questions we face are how do we transition, and how soon? As more innovative concepts enter the market, the competitive leverage of geography, convenience, timeliness, and responsiveness will be minimized and replaced by speed and ease of use, and it is not going to take a decade. Interesting times are ahead; as you contemplate transition strategies for your organization, please feel free to drop me a line at bob_grasing@renolan.com and I will be happy to share some of our insights and suggestions.