RUTGERS UNIVERSITY COLLEGE OF ENGINEERING Department of Industrial Engineering

1. RUTGERS UNIVERSITYCOLLEGE OF ENGINEERINGDepartment of Industrial Engineering Discussion with Undergraduates

2. Agenda • Speaker background • Why Industrial Engineering • Examples of IE in media businesses • Movies • Magazines • Media Planning • Conclusion

3. Speak Background • Education • BA/BSE Rutgers University 1983 • MBA Harvard University 1988 • Employment • United Parcel Service • International Business Machines • Booz, Allen and Hamilton (Media and Operations) • Primedia Consumer Magazines • Primedia Responsibilities • Home Technology and Photography Titles P&L • Classified Advertising and Direct Response P&L • Internet P&L • Production, Manufacturing and Distribution • Information Technology • Strategy and Business Development • Facilities • Stuff

4. You’ve made a great career choice • Industrial Engineering prepares you to run a business if that’s what you wish • Industrial Engineering, in my view, is about making organizations perform • The reason is the IE provides both concepts and a mode of thinking that is ideal for enterprise management • Analytical underpinning • Good blend of management training • Trains practitioners to think about optimizing results – minimizing inputs, getting the most out of processes and obtaining maximum results • Industrial Engineers can speak at an appropriate level with engineering peers, finance, market and sales teams – something that few academic disciplines prepare students for • I’d like today to share with you some of my work and have you think expansively about all the avenues open to you

5. Proof of Concept -- Probability • Let’s walk through the “Monty Hall- Let’s Make a Deal ” example

6. The Answer? SWITCH STAY Prize Placement Prize Placement 1 2 3 1 2 3 W L L L W W 1 1 Pick Pick W L W 2 L W L 2 W W L W 3 3 L L AS YOU CAN SEE, REVEALING INFORMATION AFFECT THE DECISION MAKING…

7. Industrial Engineering in Movie Production? • To Come…

8. In Magazines • Circulation, newsstand sales • Distribution • SIPs • Process Design • Organization Design

9. An Industrial Engineering Framework

10. An Industrial Engineering Framework

11. Applying The Framework- Edit Example

12. Applying The Framework- Sales Example

13. Applying The Framework- Circulation Example

14. Applying The Framework- Overhead Example

15. Applying The Framework- Support Services Example

16. Applying The Framework- Building the Organization and Outsourcing

17. How About Media Marketing? • Media Planners use the concept of gross rating points to determine how to place media • The notion is to reach the target audience as efficiently, and as effectively, as they can • The goal is to drive brand awareness, brand image and purchase intent • They want: value, effectiveness and coverage • Some advertising agencies or clients use an efficiency program called optimizers that balance price and coverage. But in my experience effectiveness gets little attention • Does the concept of optimization remind anyone of IE?

18. General Items • Project financial go/no-go decisions • People still using payback as a criteria! • Product and Sales forecasting • Queuing Theory

19. Conclusion • IE principles and practices are universally applicable wherever resources are scarce or productivity needs to be improved • There is no reason why ay of you can’t achieve senior leadership roles in any organization, or consult to them on any issue • I hope this has been helpful!