Strategically Speaking: How Will E-books Impact Your Bottom Line?
Net Sales - Cost of Goods Sold - Operating Expenses = Operating Profit
I believe there is no question that the e-book has the potential to replace a long-cherished cultural icon—the printed book—and little doubt that the e-book is here to stay and destined to experience steady and potentially spectacular growth.
That said, the real opportunity of e-books is the reshaping of the financial characteristics of the industry as we now know it. But this is a transformation that will neither be quick nor painless, and much can be gained by understanding and planning for the potentially significant personal and organizational change that will follow. BB
David Hetherington is director of major account sales for Baker & Taylor's Digital Service Group and an adjunct professor at the Pace University Graduate School of Book and Magazine Publishing. He was previously managing director for strategic business development for Integrated Book Technology, and has held senior positions in finance, operations and manufacturing with some of the industry's largest firms, including Simon & Schuster, Reader's Digest Association, BearingPoint Consulting, Wolters Kluwer Health and Columbia University Press.