Technology Helps Barnes & Noble Survive ... and Thrive

• provide e-book recommendations from its expert employees for NOOK readers;
• developed a lending technology for the NOOK so readers could share e-books just as they would print copies;
• launched "Read and Record," a tool where parents can read into the NOOK's built-in microphone when reading to their children, who can then play back the recording at a later time;
• built coalitions with trusted partners that are strategically aligned with it, such as the digital content partnership Barnes & Noble recently signed with Microsoft whereby its NOOK bookstore is available in all Windows 8 products;
• maintained strong relationships with its retail partners, including Target and Best Buy; and
• maintained strong relationships with book publishers, who, as Lynch noted, share the same goal as Barnes & Noble: to have people read more, whether that be in digital or print format.

Lynch credited the courage and resolve of Barnes & Noble's shareholders as a major reason why the company has enjoyed success with its digital efforts. Success didn't come easily, however. The retailer's initial efforts in the digital book space, particularly its color e-reader, were panned by the critics. Combine that with the fact that Barnes & Noble lost $140 million in the first year of developing the NOOK technology (which also happened to be Lynch's first year as CEO), and it would have been easy for the board to scrap the digital initiative. It didn't and Barnes & Noble has been reaping the benefits ever since.