Shifting Business Modelsin Creative Industries...Shifting Business Modelsin Creative Industries Paul...

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Shifting Business Models in Creative Industries Paul Rutten Creating 010 Rotterdam University of Applied Sciences 2nd Seminar on Business and Management-Related Question in the Creative Industry Rotterdam School of Management (Erasmus University), May 31, 2016

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Page 1: Shifting Business Modelsin Creative Industries...Shifting Business Modelsin Creative Industries Paul Rutten Creating 010 ... , digital platform, complete global reference toBach online

Shifting BusinessModels inCreativeIndustries

PaulRuttenCreating010

RotterdamUniversityofAppliedSciences

2ndSeminaronBusinessand Management-Related QuestionintheCreativeIndustry

RotterdamSchoolofManagement (ErasmusUniversity),May31,2016

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Urgenciesfor(businessmodel)innovation

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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.”

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Urgenciesfor(businessmodel)innovationDevelopmentofcompanies,jobsand added value inDutchcreatieveindustries (2005-2013)(2005=100)

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Banen Vestigingen Toegevoegdewaarde

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Urgenciesfor(businessmodel)innovationDevelopmentofproduction value inDutchcreativeindustries (2005-2013)

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Kunstenencultureel erfgoed Mediaenentertainmentindustrie Creatievezakelijkedienstverlening

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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

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BusinessModel(Concept)

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‘NEW BUSINESS MODELS ARE A GREATER SOURCE OF COMPETITIVE ADVANTAGE THAN NEW PRODUCTS AND SERVICES’

THE ECONOMIST INTELLIGENCE UNIT

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Businessmodel

The core logic by which a firm creates, delivers and captures

value

Joan Margretta(2002)

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Businessmodels createvalueItisnot thetechnology ortheproductthat creates value,it’s thebusinessmodel

Product/technology/knowledge value

businessmodel

business strategy

enables

defines

creëert

X

Source:WaltervanAndel,Antwerp ManagementSchool

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Case:All ofBachBased onresearchcommissionedbijNBVin2013co-authored byWaltervanAndel

(Antwerp SchoolofManagement)

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JosvanVeldhoven:(ArtisticdirectorNetherland BachSociety)Imagination and Aspiration

“Let’spostponethefestivitiesuntilwereacha100years,thenwe’llhaveagrandcelebrationshowcasingeveryworkofBachonline.Werecordeverypiecethat’severbeencreatedbythecomposerwithourensembleonvideoandmakeitavailableforthewholeworldtosee.We’llcallitAllofBach.”

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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

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BusinessModelAll ofBach

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Case:AppliedGamingBased onresearchcommissionedby RotterdamMediaCommission in2013– co-authors:MijkeSlot(ErasmusUniversity)and MatthijsLeendertse(ELMConcepts)

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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

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Leverage potential newsectors(source:vanOortcs.)Example:clusterlifecycles andcrossovers

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Finally...

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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

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Appendix

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Distributionofjobsamong subsectors ofcreativeindustries enICTintheNetherlands(2013)

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0t/m1 2t/m10 11t/m50 50+

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bero

fJobs

Kunstenencultureel erfgoed Mediaenentertainmentindustrie Creatievezakelijkedienstverlening Diensten Hardware

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Average companysize:creative industries,ICTand total economy

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Creatieveindustrie ICT Totaleeconomie