1. Business Strategy & The Arts Value Chain Dr Paul Jackson Senior Lecturer Edith Cowan University © Dr Paul Jackson

2. The Internet – you can do amazing things with it A lot (most?) of life’s activities involve the exchange of information: A visit to the doctor A chat Paying a bill Taking a trek Giving a talk Controlling the air conditioner Opening a door The Internet is about the exchange of information …. anywhere, anytime So… you can use the Internet for ….. pretty much anything … © Dr Paul Jackson

3. The Game Changer “The internet is not about uploading a video to youtube or starting an online gardening community...this is a new mode of production that is emerging. It is beginning to fundamentally change how we orchestrate capability to innovate, to create goods and services, to govern and to educate” The Internet is a game changer for business, for the arts, and for the business of the arts We need to understand how the Internet changes things and draw lessons for the arts Frameworks are needed to understand the challenges and opportunities from the Internet in general, and specifically how to respond as artists and arts businesses. Don Tapscott, “Wikinomics”

4. We cannot launch into choosing tools, doing designs of sites and twittering without beginning at the beginning and working out where you want to go and why you want to go there. "Would you tell me, please, which way I ought to go from here?" "That depends a good deal on where you want to get to," said the Cat. "I don’t much care where--" said Alice. "Then it doesn’t matter which way you go," said the Cat. "--so long as I get SOMEWHERE," Alice added as an explanation. "Oh, you’re sure to do that," said the Cat, "if you only walk long enough." You need a plan … © Dr Paul Jackson

5. Business Planning What is the purpose of your business (vision)? – What is your value chain? – Where can you provide value to others? What is the business landscape (environment)? – What are the opportunities and threats from competitors, suppliers, other products, a weak economy, a thriving middle class? – What are your strengths and weaknesses? What will help you achieve your purpose (objectives)? How will you achieve these objectives (strategies and tactics)? © Dr Paul Jackson

6. Setting Objectives What precisely do you want to achieve with your business goal? – What do you want to create? – What do you want to present or perform? – Where do you want to do it? – How much of it do you want to do? – How much money do you want to make? – By when do you want to do it? – Etc etc etc © Dr Paul Jackson

7. Analysing the environment What: OPPORTUNITIES related to your business idea are present in the marketplace? THREATS are there to me succeeding in getting my business idea working? These can be: Political Economic Social Technological © Dr Paul Jackson

8. What is your market? Markets: – Customers, size, locations Marketplaces: – Public spaces? – Commercial spaces? – Fairs, festivals? – Private individuals? – Your gallery / theatre / workshop? © Dr Paul Jackson

9. Tactics and Timelines Think in advance: – Exhibitions, performances, festivals … – Consider what you need to do in leading up to those Not ONLY production or rehearsal Information to the public Fan engagement, creating a buzz Involving fans in co-production Getting early funding Creating an EVENT Translate these plans into: – Interventions … through the Internet of course! – cash flow planning! © Dr Paul Jackson

10. Discussion Think about these questions: – What is the purpose of your business / organisation? – What are your markets? – How is your business landscape? – What do you give to your customers? – What do you see as key opportunities where the Internet can help you? © Dr Paul Jackson

11. It is often not clear to you, what people value in you … Think about what is “adding value” How do you recognise how, where and with whom this happens? How can you look at your artistic life, analyse it and identify: – the things you do that add value and are therefore worthy of improvement through using tools (such as the Internet) – The things that should become more efficient so you have more time to pursue your art? © Dr Paul Jackson

12. WHAT ADDS VALUE? © Dr Paul Jackson

13. Technology is a tool not an end in itself! Start with what you DO, NOT with a tool that looks sexy © Dr Paul Jackson

14. Activities seen as “Adding value” http://www.youtube.com/watch?v=uhS_Ujij8Jk © Dr Paul Jackson

16. Looking at your artistic lifeworld. What adds value? How is value added? Who adds value? Where is value added? © Dr Paul Jackson

17. What adds value in artistic life? Creating an idea Refining the idea Obtaining funding Developing the product Marketing a product Developing an audience Performing / delivering Balancing the books Learning and improving Good people Trust Creativity Artistic space Specific skills / knowledge Money Relationships Community & culture Communication and organization skills Technology ProcessesResources © Dr Paul Jackson

18. WHAT adds value? Create Idea creating Build relationships Collaborate Engage in a specialist community Gather Information Enabler http://www.app2art.com/ http://www.plotbot.com/ Process Resources WIKI Resources © Dr Paul Jackson

19. WHO adds value? CreateCreateDevelopDevelopFundFundPerformPerform........ Where can / do my customers, audience, partners, employees ADD VALUE? © Dr Paul Jackson

20. WHERE is Value Added? Zones of influence Home Environment Transport Environment Coastal Environment Urban Environment Cruise Ship Environment … Coastal Environment Urban Environment Cruise Ship Environment … Home Zone Transit Zone Destination Zone Mobile Environment Online Environment Mobile Environment Online Environment Mobile Environment Online Environment © Dr Paul Jackson

21. Example: Interactions with the patron by process and space Process / Space CreationSales...Performance Home Home Internet Mixing, crowdsourcing ideas, collaborating Home Internet Theatre On demand, Live streamed Transit Mobile Phone SMS Song lists, Facilities, Announcements Destination Mobile Phone Bluetooth, SMS Buy song as it is played Feedback / interaction

22. HOW DO WE DO THIS SYSTEMATICALLY? © Dr Paul Jackson

23. Conduct Research Prepare policies and plans Manage compliance Issue and manage licenses Develop commercial and environmental strategy Prepare legislation Prosecute offenders Figure : A Top Level Process Model In business courses, we do process modelling … © Dr Paul Jackson

24. Arts Information Architecture Can we “standardise” the arts value chain and its components and build models for the arts? Primary Value o Create o Collaborate o Fund o Develop o Rehearse o Distribute o Market o Engage fans Secondary Value o Manage accounts o Manage bookings o Manage technology o Manage human resource Maximise ValueMinimise Overhead Internet Cloud © Dr Paul Jackson

25. Limitations Not all arts roles go through the whole process Composers do not just stop at composing – see Eric Whiteacre – Composers in Berlin actually end up organising a lot of concerts, in which they include a couple of their own compositions. The reproductive arts will have quite different priorities and ways of thinking to the creative arts. There is also art where the artists don't bother to create anymore. – Schopenhauer - the objects of art exist already. – The artists just puts them together - Cage. © Dr Paul Jackson

26. Discussion Do you think there is a standard value chain model for the arts, abstract enough to be generalised but specific enough to be useful? © Dr Paul Jackson

27. Reflection Think about your artistic life or your arts business – What are the key value- adding activities? – How do they relate to each other (is there a flow – draw a picture of this)? Where do they happen? – Who is involved? Now, your art may have very specific requirements or you may have a particular skill where you can provide a value: – Where do you think you provide a very specific service or add value to something? – Performing / Teaching / Designing / Organising / ???? – How can the Internet and social media help you develop or deliver that value to your customer? – Are there specialised web sites or tools that can assist? © Dr Paul Jackson