RBC - RosBusinessConsulting

RBC Information Systems General Director Yury Rovensky: "You can just stand in Red Square, and you will be surrounded by companies for whom we created websites - the Kremlin, GUM, Lenin Library, Bolshoi Theater, etc."

- The secret to our success is very simple - we weren't just at the right place at the right time. We actually strived to be No. 1 and take the lead. The idea is to not just answer the existing question in the best possible way, but to be the one asking the question. Over the last few years, when the company has been enjoying rapid growth, we managed to create demand for our products and services and we were able to meet this demand. RBC started in 1993 as an information agency. Two years later, we were the first Russian information company to have an online resource. This was due primarily to the fact that the distribution of information in a print format had become way too expensive. Furthermore, the Internet's great advantage is that no time is wasted when posting the latest information. Amazingly enough, in the mid-'90s people thought of the Internet as some sort of toy which would never become a business environment. By going online, we created an information resource that in 1998 was the first ever online resource that was publicly accessible. Believe me, making information available in 1998 - at the peak of the economic crisis, when it was vital not only to satisfy one's curiosity, but to know exactly what was going on - back then it was a matter of survival. Many companies appreciated this, and RBC's first real success came about around that time. So basically, having intentionally given up on profit, we helped everyone else, because we realized that we all had to pull in together to withstand the outcome of the crisis.

In 2002, we were the first Russian company to make an IPO. For us it was a step that allowed us to retain our independent editorial policy, as we were formed as a mass media source that did not allow any strategic investor influence. At that time, RBC found itself at the crossroads: the company would either enjoy rapid development and become a leader on the market or remain an unknown figure in the field of information services. By making a public offering, we were able to stay completely independent and at the same time raise funds to finance the creation of the first business channel in Russia. In September 2003, we launched the TV broadcasting. Over these years, television has seen significant changes and growth. It would be enough just to mention that as of today the channel's audience exceeds 15 million people. Back in 2003, we could not even imagine such a thing. By gradually expanding the content, creating educational programs, mixing all of this not only with economic statistics, but also with the actual experiences of companies, and by focusing our attention primarily on providing information to people, I believe, we managed to expand the channel's audience quite considerably.

RBC TV is currently working on the distribution of the channel's signal in Moscow via Mostelecom's facilities. This will lead to a wide-scale expansion of the audience base thanks to greater coverage in the city. We expect to complete the process in 2008.

RBC TV has already become a prestigious channel to watch. The channel is made available in Europe, Northern Africa and the Middle East through European satellites. Furthermore, our company is one of the few channels in the country that broadcasts online, meaning it is available anywhere in the world. In November 2007, we organized an international conference in Tokyo. This is yet another important element of RBC's activities. We transferred the Internet broadcasting signal to the in-room TV system, so then people could watch RBC TV in all hotel rooms. Moreover, we were able to print the new issue of the RBC Daily newspaper, and the conference's guests were able to get the latest news during the morning session, thus staying in the loop. I think this is just one of RBC's secrets of success. We do not follow any existing standards, but rather strive to create comfortable conditions for our customers.

- How lucrative do you think investments in the country's information systems will prove to be in general, if the actual need for information technologies exists only in Russia's largest cities?

- Information technology is an absolute reality of today, and it is of a global nature. You are right in saying that the implementation of these projects is possible only in large cities in Russia. But if we gave up the development of information technology, that would mean halting development in the future, especially considering the fact that the development of technologies is inevitable.

The work of computer networks connected with gas supplies is completely managed with the help of IT, for instance. Could we even imagine this 10 years ago? Certainly, the centers for the localization of computer technologies are somewhat dependent on the industry and location. I insist, however, that sooner or later the so-called 'digital inequality' between large Russian centers and provinces will disappear. In 10 or 15 years, existence without technologies will simply be impossible.

That is why investments in information systems and technologies are so important today, given that they ensure the country's competitiveness and serve as a basis not only for the citizens' social right to access information and services, but also for the general level of life in the country and Russia's integration into the unified global community. Come to think of it, today we face the problem of actually losing the territory of the Far East. The concentration of all industries in the central part of the country has resulted in a completely different pattern of the development of businesses and society itself in the regions. Therefore, the desire of the country's leaders to decentralize the points of growth, including the initiatives on holding major summits in Russia's regions, is not just an attempt to shift investments to the regions, but also a flip in the country's overall development strategy. Meanwhile, investments are closely connected with the development of information technology. In many respects, not only the development of Russia's regions, but also the future of the country in general depends on the dynamics in the elimination of the existing differences between regions.

- RBC offers a wide range of information technology and services for businesses. What services are currently in the highest demand and bring the most profit to the company?

The IT business appeared simultaneously with the creation of the website, since in the beginning of the '90s there were no companies on the market providing such services. Later on, it was cheaper to do this job ourselves and, as a result, we became less dependent on other companies, and were able to provide up-to-date information. By 1999, RBC Soft evolved into a full-fledged IT company specializing in website design and development. We have a huge portfolio at the moment: we even say that you can just stand in the Red Square, and you will be surrounded by companies for whom we created websites - the Kremlin, GUM, Lenin Library, Bolshoi Theater, etc.

Along with the company's development came new projects: system integration, outsourcing, computer programming, and the acquisition of new companies. By mid-1997, we realized that what used to work well - being a multimedia and IT company - was becoming a hold-back for the general development. Any piece of equipment has its maximum capacity, and any additional energy applied to it will be eliminated to bring the total down to the maximum capacity. With this in mind, we made a secondary public offering of RBC Soft's shares. Today, it is still demonstrating steady growth, not to mention a good market position.

In terms of what RBC has always been - a media company - it is comprised of an information agency, a TV channel, print media, a large number of supplements to them, and the acquisition of Salon Press publishing house, which publishes various glossy magazines in the sphere of design and architecture. Recently, we have started developing yet another project - non-business information resources. For the latter project we select resources that have a well-established status and great potential. Business information, though, is still our top priority and it enjoys the highest demand by our users. The share of business information in RBC's total pool of information resources exceeds 90 percent.

It is hard to say which projects of ours see the highest demand, as RBC resembles a complex plant, in which all of its different departments create one product, which is delivered by various means and in different packages. For us, it consists of a TV signal, Internet agencies, newspapers and magazines. The idea is that each of these communication channels has its own audience.

We have a firm understanding of the fact that what used to be called 'business audience' several years ago needs to be classified according to the following criteria: location, size, gender, age, social status, and so on. The realization and analysis of these matters allow advertisers to have more direct access to their target audience. As a result, advertising on RBC proves to be efficient, and the company has a major share of advertisements among online business resources and an extensive business audience in general.

Four years ago we announced that the main trend in the company's development is a strategy called Multi Channel Delivery. You can create a product and sell it many times, come up with different packaging for it, so to speak, and then go ahead and sell it. If you want to sell more, you must invest more and develop.

As of today, RBC employs more than 2,500 people, while just a year ago the figure stood at 1,700 people. When I started working in the company in 2000, it had a mere 100 people on its staff. At the recent New Year's party, I was shocked by the realization that I knew only a very small number of the people who came to the company. I do understand that it is inevitable, though. With the company's development and the formation of decision-making centers, we are forced to delegate our responsibilities to department heads. The company structure is not hierarchical, but instead looks like a matrix with several decision-making centers, so that there is personal responsibility and motivation not only for the performance results of the whole company, but for the results of each and every department.

Today we supervise more than 20 online projects: RBC Rating, Real Estate, Market Research, Seminars Store, Business Trade, automobile and tourist portals and many other target audience-oriented websites. Each one of these projects is managed by a group of people focused on excellent performance. This is precisely what allows us to develop each line of business, and for our employees to demonstrate their creative skills and passion for their work in the exemplary job that is done.

People who are happy to come to work in the morning make up any company's most valuable asset, making it an efficient organization whose existence is based not on natural resources, but on what is known as Knowledge-based company - personalities and the expert knowledge of its staff.

RBC's primary source of profit is advertising, and the company's business model is based on this. The total revenue for 2007 amounted to $193m, having increased 45 percent from the previous year. Such a considerable rise can be attributed to higher demand for RBC resources demonstrated by advertisers. The core of this interest is brand recognition, an active marketing policy, RBC's launch of print publications, and positive dynamics in revenue from recently launched media products. Furthermore, the most important thing is the company's consistent increase in the audience base.

For the most part, information is made available online. Meanwhile, it is important to point out that the volume of information is great, as it includes news (nearly 1,500 stories per day), analytical articles and commentaries. Thanks to high demand for this information, all of RBC's resources enjoy very high traffic. Notably, the company has managed to unite the biggest business audience among all Russian business media resources, as its own audience reaches 30 million people per month.

Proceeds from advertising are certainly quite hefty, but not the only source of the company's revenue. Despite the fact that RBC's revenue from advertising reached nearly 90 percent last year, subscriptions and sales of print publications accounted for the remaining 10 percent. In order to attract young and active people, in whom advertisers are most interested, the channel needs to create and promote various types of niche information products focused on education, vacationing and communication (for instance, tourist and social services). We consider this sort of work a means for development and a future asset.

- The RBC brand is well recognized by those seriously involved in business in Russia. However, there is very little information available about the company's structure. Can you tell us more about it?

- In 2002, our company became a public company, having made the first initial public offering in Russia, and this status provides for the transparency of all of its activities. RBC currently employs 2,500 people, most of whom are journalists. RBC TV has the biggest staff - about 800 people, while print publications employ about 350 people. Online resources management departments and Media Mir have a staff of about 300 people, and the advertising department employs more than 150 people, each one of them part of a great team. I also want to point out that Interbrand Zintzmeyer & Lux AG (Interbrand) consulting company estimated the RBC brand value at $215m in 2007.

- Yes we do, and in most cases this is connected with the geographical distribution of information, which is collected not only in Moscow, but also by the main regions. Furthermore, sometimes it makes more sense for us to use the services of a local TV and radio company. At the same time, the company's structure includes programmers, designers and other employees who do not have to be involved in the general work process. On the contrary, it is impossible to create newslines or support and supervise TV broadcasting by means of freelancers, since this requires collective effort.

- Many university deans believe that the modern so-called 'thumb generation' is a lot smarter than our generation. At the same time, there is the notion that people have not been changing very much since the times of Herodotus. What do you think?

- People change because the world around us changes. Humanity is collective intelligence. We are not free of the past and at the same time we have modern knowledge. It is quite logical that young people seem to be more advanced and technically savvy. They have an understanding of information systems, speak several foreign languages and actually know more and can do more. Yet this is not a result of the change in generations or gene mutation, but rather an outcome of several objective reasons. Our country has only recently opened up its borders. Economic globalization, new working conditions that require mobility, knowledge of business basics - all of these things allow young people to have rapidly developing careers.

In general, however, I would like to use the following comparison to answer your question: when you are invited to a reception, to come dressed formally, thus looking smart, you might sometimes be a little uncomfortable. But when you come to a party and everyone is wearing jeans and T-shirts, while you are wearing a tux and a tie, you will feel just as uncomfortable as if you came in jeans to a formal reception.

- What technological breakthroughs will modern civilization see in 10, 25, 50 and 100 years?

- Humanity is currently facing several global problems. One of them is the problem of energy supplies. Without alternative sources of energy, the world will not survive. And there must be a breakthrough in this field, even though just a year ago this problem seemed totally ridiculous. The second problem is the amount of drinking water. This problem is now becoming the cause of wars between different countries. The problem of environment in general is very important. But the most acute problem is the lifespan of an individual, which is way too short, I think. That is why such matters as modern medical treatments, prolonging life, generating and replacing body organs, and genetic engineering are all becoming extremely important. We can also talk about more technical stuff, like information systems. They will continuously be improved, while the creation of artificial intelligence is something that people will always strive for. Thank you.