shifting business modelsin creative industries...shifting business modelsin creative industries paul...
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Shifting BusinessModels inCreativeIndustries
PaulRuttenCreating010
RotterdamUniversityofAppliedSciences
2ndSeminaronBusinessand Management-Related QuestionintheCreativeIndustry
RotterdamSchoolofManagement (ErasmusUniversity),May31,2016
Urgenciesfor(businessmodel)innovation
UrgenciesforbusinessmodelinnovationLabor marketstudy by RvCand SER• Creativeindustries havebeenhitby theeconomic crisis
• Creativeservicessuffered from receding demand• Example:architects and buildingand construction
• Subsidiesgavetemporarily protection forartsand heritage
• Cutbackshaveinthemeantime takentheir toll inartsand heritage
• MariëtteHamer(CouncilforSocialand Economic Affairs):“Theimageappearing inthis study,leadstotconcernabout theposition ofpeople working inthis sector.“
• JoopDaalmeijer (Cultural Council):“Thefinancialposition specifically offreelancers inthecultural sectorissorrowful.”
Urgenciesfor(businessmodel)innovationDevelopmentofcompanies,jobsand added value inDutchcreatieveindustries (2005-2013)(2005=100)
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Banen Vestigingen Toegevoegdewaarde
Urgenciesfor(businessmodel)innovationDevelopmentofproduction value inDutchcreativeindustries (2005-2013)
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Kunstenencultureel erfgoed Mediaenentertainmentindustrie Creatievezakelijkedienstverlening
Urgenciesfor(businessmodel)innovationConclusions• Sensitivity formarketfluctuations• Recentcrisis• Luxury good character
• Structural changesincreative industries• Companiesand Labor (shrinking avarage companysize)• Mediaindustries intransition• Slidingproductivity
• Changing cultural policies• Cutbacksinartsand heritage
BusinessModel(Concept)
‘NEW BUSINESS MODELS ARE A GREATER SOURCE OF COMPETITIVE ADVANTAGE THAN NEW PRODUCTS AND SERVICES’
THE ECONOMIST INTELLIGENCE UNIT
Businessmodel
The core logic by which a firm creates, delivers and captures
value
Joan Margretta(2002)
Businessmodels createvalueItisnot thetechnology ortheproductthat creates value,it’s thebusinessmodel
Product/technology/knowledge value
businessmodel
business strategy
enables
defines
creëert
X
Source:WaltervanAndel,Antwerp ManagementSchool
Case:All ofBachBased onresearchcommissionedbijNBVin2013co-authored byWaltervanAndel
(Antwerp SchoolofManagement)
JosvanVeldhoven:(ArtisticdirectorNetherland BachSociety)Imagination and Aspiration
“Let’spostponethefestivitiesuntilwereacha100years,thenwe’llhaveagrandcelebrationshowcasingeveryworkofBachonline.Werecordeverypiecethat’severbeencreatedbythecomposerwithourensembleonvideoandmakeitavailableforthewholeworldtosee.We’llcallitAllofBach.”
All ofBach
Backgroundand value proposition• Global,digitalplatform,completeglobal reference to Bachonlinesince 2014
• Coherence,consistentquality,completeness ofall relevantcontent• 20%ofBach’s work isperformed regularly
• Disclose completemusicalheritage ofJ.S.Bach(1080BWVnumbers)• Provide cultural contextinwhich works areperformed
• Strategicmotives• Reduce NBV’s dependence onconcerthalls,organisers,R-TVand music industry• Explore newchannels to reach existing and newaudiences• Frontrunner and innovator inthedomainofclassical and baroque music• Differentstrategy compared to forinstance DigitalConcertHall(BerlinerPhilhamonic)
• Strategicdecisions• Freely accessible,nocharges• Financing based onsponsorships, donations and subsidies• Valueexchangebased oncultural value,quality and tradition• Channelstrategies:liveand online• Leverage brandvalue and position ofNetherlandsBachSociety
BusinessModelAll ofBach
Case:AppliedGamingBased onresearchcommissionedby RotterdamMediaCommission in2013– co-authors:MijkeSlot(ErasmusUniversity)and MatthijsLeendertse(ELMConcepts)
BusinessModelIssuesSeriousGaming(inRotterdam)• Commissioned by RotterdamMediaCommission• Researchonvalue and potential ofSeriousGamingforRotterdam• Rotterdamhasaconcentration inappliedgaming development• Combinationofdevelopment expertisewith domainknowledge• Companies(asforinstance Ranj)operate globally• Repeat businessbuthardly scale economics• Modelbased ondesignpractice (work forhire)• Valuecreatedßà value captured• Nosustainable modelforahealthy growth strategy• Urgencyto switchto publishingmodel• Leverage potential
Leverage potential newsectors(source:vanOortcs.)Example:clusterlifecycles andcrossovers
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Finally...
Some conclusions
• Businessmodelinnovationessential forsustainable future• Remains abigissueforcreative industries• Mediaindustries challenged by structural changes• Predominantmodelincreative serviceshinders scalibility• Artsand heritage dependendonincreasingly volatile policycontext• Research:moreempirical work – cases,theory and modelling• Mistake ofDutchMinistery to axe theCLICKNLCINextNetwork• Thanks foryour attention
Contact:[email protected]:http://independent.academia.edu/PaulRutten
Appendix
Distributionofjobsamong subsectors ofcreativeindustries enICTintheNetherlands(2013)
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Average companysize:creative industries,ICTand total economy
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Creatieveindustrie ICT Totaleeconomie