The Cole Papers

Newspapers' competing tech, system and production needs

(Editor's note: When it came time to assign a story about the Newspaper & New Media Seminar -- co-sponsored by Seybold Seminars and this very newsletter -- we decided to go with someone who was independent and, if necessary, would have the courage to suggest that the moderator of the session -- the editor of this very newsletter -- was a jerk.

(We called upon Teresa A. Martin, co-founder of the Palo Alto, Calif.-based Project Cool Inc., a resource for web developers at http://www.projectcool.com. Martin claims to be a "reformed journalist" who in a past life worked for Knight-Ridder's Information Design Lab in Boulder, Colo., and its New Media Center in San Jose.)

There are excuses, and then there are excuses.

"The hurricane ate my house" is the one that kicked of the Digital Dilemma session, the first event in the Newspaper & New Media Seminar held Sept. 9 in conjunction with Seybold San Francisco.

While the audience basked in the perfect 70-degree sunny fall day in San Francisco's Yerba Buena Gardens, the East Coast was being battered by Hurricane Fran.

Panelist Frank Daniels III, CEO of KOZ Inc. and former executive editor of the News & Observer of Raleigh, N.C., one of the first newspapers to successfully grapple with the emerging on-line medium, was reduced to sending digital images of his home's water-soaked kitchen and tree-dented roof in place of himself.

All of which was a reminder that in the grand scheme of things, the Digital Dilemma is far more manageable than the everyday dilemmas of the real world.

Knight-Ridder presents ...
Fran left Bob Ingle, vice president of new media for Knight-Ridder Newspapers, holding the stage alone to explain how newspapers can balance emerging new media requirements with day-to-day delivery of the printed newspaper.

Ingle, one of the driving forces behind the Mercury Center project at the San Jose Mercury News, first pointed out that Merc Center is now alive and well on the World-Wide Web. The service is running a monthly subscriber growth rate of 11 percent; subscribers pay between $1 and $4.95 a month.

This means that, every day, the Mercury News is doing a real-time dance between the demands of the two media. But, Ingle said, there are notable overlaps between the two forms.

The major difference is in the contour of each medium. In print, there are only a certain number of pages and a certain size newshole. The on-line form is considerably more flexible.

The bottom line remains the same. Said Ingle, "You still have to be an editor. You just go about it in a different way."

To highlight the differences, he talked about a recent series titled "The Dark Alliance." This Mercury News project caused a bit of a stir as it traced the CIA-cocaine connection in the 1980s, alleging that the CIA was actually involved in cocaine distribution in U.S. cities. It is the kind of investigative report that showcases the key role newspapers play as members of the "fourth estate."

The print version was in the traditional text-and-images format; it "didn't have space to run the volumes of testimony the story was based on because it just doesn't have the newshole," said Ingle.

Mercury Center ran the report, too, but it provided a way to make the testimony and other supporting background material available to the public. The on-line version had links to the reports behind the story and to the actual documentation. Thus, it contained two to three times the quantity of material of the print version.

The two products -- print and on-line -- worked in concert to extend the value of the reporting.

Many print rules apply in the on-line environment, Ingle said. For example, the inverted pyramid style is still of value -- it saves the reader time by giving the most important facts first, and saving time is perhaps even more important on-line.

But other rules change. Navigation, for example, can't be taken for granted. Everyone knows the navigational rules for print, Ingle said, but the navigational rules for an on-line product require thoughtful consideration.

Additionally, the on-line form is constantly current; it isn't a snapshot of a moment the way print is. Readers expect up-to-the-moment information -- and they expect to be able to search through it for bits they want.

During the Q&A session, Ingle pointed out another important factor in producing an on-line product: marketing it.

"Newspapers do not know how to market," he said, noting that this would have to change in order for on-line products to truly succeed.

As for staffing, Ingle maintained that the job could be done by one or two people at a smaller paper, and five or so people at a larger paper (although Merc Center has a staff of 15). The key is to draw on the resources of the newspaper's reporting staff in order to pull content into the on-line version (the Mercury News has a newsroom staff of 350 supplying the on-line and print products).

"Be prepared to lose millions," Ingle warned. Knight-Ridder found a source of revenue in archives, some advertising and some subscription fees, he said, but the business models are still evolving.

Challenges for classifieds
Classified advertising, the bread-and-butter revenue source for many newspapers, was next on the agenda. Happily, none of this panel's participants had homes in the path of Hurricane Fran.

Cole Group Consultant Garrett Queen ran through a brief history of the technological challenges of classified ad systems. A new challenge seems to emerge every two or three years, and HTML output is simply the most recent one, he said.

The emergence of web-based classifieds has led to a new model of customer interaction and redefined who the customer is, Queen said.

Traditionally, the customer was the person placing the ad, and the paper's role was to list and deliver that customer's message. Today, there are two customers.

First is the person placing the ad; second, thanks to new media, is the on-line reader. With custom search tools, the reader suddenly becomes as much a customer as the seller, Queen said.

This is a change that newspapers need to think about as they explore on-line classified ad options, he said.

The legion of classified ad system suppliers claim they can handle everything from ad placement through HTML output. In reality, well, that's a different story.

Peter Ill, vice president of affiliate relations at InfiNet, the Knight-Ridder/Gannett/Landmark web site provider, picked up on this point as he did a mock sales call with a member of the audience. The exercise highlighted the common myths of on-line classifieds:

  • It's easy to do.

  • It comes with a fixed total cost attached.

  • It can be an automatic "all-in-the-software" process.

  • It won't require extra people or time.

  • Only two weeks are needed to install it.

  • The system won't ever break.

    Of course, the only place these claims are true is in the salesman's patter. The reality, Ill said, is that several steps are involved, each with its own considerations.

    The first two -- getting data out of the classified front-end, then converting them into a standard format -- are a lot easier said than done. The final two steps -- adding HTML and a search interface -- are significantly easier, but not an automatic given either.

    Roddy de la Garza, chief marketing officer of the on-line classifieds service bureau AdOne Classified Network of New York, talked about some of his company's successful partnerships with newspapers. He began, though, by noting that the real problem with on-line classifieds is that newspapers apply the known print responses to a new medium, without really examining the issues.

    Getting the ads out of the legacy system is just the start, he said. Knowing what to do next is where it gets tricky.

    More for less, faster
    After lunch, Howard Finberg, director of information technology at Arizona's Phoenix Newspapers Inc., talked about the new paradigm of buying and installing a system. His goals: doing more with less, and doing more faster.

    He used the ongoing experience of his own papers, the Arizona Republic and Phoenix Gazette, as an example of how the processes need to change to reflect a new reality.

    "Technology should free people, not limit what we do," he said.

    In a brief chronology, Finberg reminded the audience that in the mid-'70s and early '80s, electronic paste-up was all the rage. The computer replaced the X-Acto knife, but workflow stayed pretty much the same.

    In the late '80s through the early '90s, Phoenix Newspapers, like others, was faced with having to replace aging systems. Phoenix was in a slightly different situation, though, as it had embraced full-page pagination in 1986. It was clear that a replacement plan was in order -- and that the replacement needed to be not merely evolutionary, but truly evolutionary, Finberg said.

    In the end, Phoenix settled on a product from CCI Europe of Marietta, Ga., but it wasn't the product that signified the paradigm shift -- it was how the process of buying and installing the system was handled.

    In 1991, Phoenix started looking for a publication database, something that would allow for collaborative sharing of information across many departments. In its implementation, this system would be "owned" by both technology and the system users.

    Unlike selection of previous systems, this time the users -- from news, production, library and advertising -- would have a say in which system got the thumbs-up.

    Finberg pointed to three changes that had to happen for the newspaper to select a new system for a new era.

    First, the paper made a concerted effort to avoid knowledge concentration. In the typical paper, people do their tasks with virtually no cross-training.

    The result is the scenario in which Joe Guru gets hit by a truck while crossing the street, or decides to go raise llamas in Montana: All of a sudden, no one can produce headers from the system because all the typeset-header knowledge had been concentrated in Joe's head.

    During Phoenix Newspapers' installation, there is a commitment to cross-training. Everyone knows about the system; it isn't one person's little secret.

    Second was a commitment to build consensus and to shape a new attitude, that everyone was working for the same company. In both the selection and implementation process, the Phoenix team worked hard to avoid the classic production vs. editorial vs. advertising imbroglio. Instead, the system was viewed as a newspaper-wide solution, from which everyone benefited.

    Third was a commitment to measured and accurate communication. At the most basic level was a newsletter; at a more complex level, the company used Lotus Notes and e-mail to take input, give feedback, and keep everyone involved and bought in to the process. Participation was encouraged and even expected, and helped advance the notion that the system belongs to everyone.

    Vendors' view
    The day's final session brought together a panel of newspaper suppliers to answer the oft-asked question of newspapers everywhere: Why haven't suppliers delivered what we need?

    Speaking were Al Edwards, president of Autologic Information International of Thousand Oaks, Calif.; Marlow Einlund, president/CEO of Sysdeco Media Group of Bedford, Mass.; Bernard Grinberg, managing director Cybergraphic Systems of Burlington, Mass., and Australia; Dennis McGuire, president of Managing Editor Inc. of Jenkintown, Pa., and Frank Washington, CEO of System Integrators Inc. of Sacramento, Calif.

    The executives' responses ranged from "fear," to faulting newspapers for a lack of commitment, to publishers' inability to clarify just what it is they do want. The suppliers said they feel like they are trying to hit a demanding, moving target that is unwilling to make a commitment upfront.

    "Newspapers want services for nothing," noted Einlund, whose Sysdeco owns the remains of Atex Publishing Systems Corp.

    Edwards, who has been involved with many major systems suppliers over the years, noted that suppliers must cope with a seven-year cycle. All get caught in the trap of an industry that asks for the next generation of system -- while simultaneously wanting unique individual needs met immediately.

    And, by the way, he pointed out, they don't want to buy something until it's been proven by someone else.

    Even the hardware profits no longer go to the system suppliers, as everyone has moved to UNIX, PC or Macintosh platforms and the newspapers prefer to buy these generic machines directly. This all combines to make a difficult business model, Edwards said.

    The cost of selling to the newspaper industry is extremely high, the suppliers agreed, as the panel cited the multiday dog-and-pony shows ("making the monkey dance," McGuire called it) that newspapers expect -- and which detract from development resources.

    Which is why, the panelists agreed, their respective companies were broadening their products beyond newspapers, and looking to other markets to stay in business.

    Ongoing R&D funding is important, and the newspaper industry isn't one that supports it. The bottom line from the suppliers was: We aren't going away, but we can't afford to serve just newspapers.

    In toto
    The day brought a telling mix of viewpoints from the newspaper industry. Any of the session topics alone could easily have become a day-long session, but the balance helped put the diverse needs within each paper into focus.

    That, perhaps, is the one message to take away from this event: Newspapers, more than any other industry, hold a set of competing technological, system and production needs.

    Historically, those needs have been segmented into "business systems," "advertising systems," "classified systems," "production systems" and "editorial systems," but the world has changed.

    Maybe it is time -- for the sake of our sanity, our budgets and our suppliers -- to focus on ways the newspaper as a whole can work together, whether we are producing a print daily, an on-line service or a classified ad section.

    To do so would change the paradigms we know. But then, they are changing around us nonetheless.

    -- Teresa A. Martin

    AdOne Classified Network,
    (212) 431-3303;
    Autologic Information International Inc.,
    (805) 498-9611;
    CCI Europe Inc.,
    (770) 419-1588,
    e-mail: jt@cci.dk;
    Cybergraphic Inc.,
    (617) 221-0077,
    e-mail: 0004484910@mcimail.com;
    InfiNet,
    (804) 628-1020;
    KOZ Inc.,
    (919) 832-8926;
    Managing Editor Inc.,
    (215) 886-5662;
    Sysdeco Media Group,
    (617) 275-2323;
    System Integrators Inc.,
    (916) 929-9481,
    e-mail: sii@sii.com.

    From THE COLE PAPERS, October 1996, Copyright © 1996, All Rights Reserved.

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    Modified date: 10/ 7/1996, 2:12:52 AM.
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