We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byDraven Heldreth
Modified about 1 year ago
Digital Transformation of Business Models in the Creative Industries: The Emergence of the Portfolio Model Professor Feng Li, PhD, FBAM Cass Business School City University London Feng.email@example.com Research Seminar at Kent Business School Kent University, 4 February 2015 © Feng Li, 20151
Introduction Why the creative industries A holistic business model framework Emerging trends The portfolio models Discussions © Feng Li, 20152
My Research Focus Strategic and organisational changes facilitated by digital technologies in different sectors and domains How firms manage the transition to new digital technologies, new business models and new organisational forms Research projects on ‘Sustainable and Scalable Business Models in the Digital Economy’ Addressing ‘Societal Challenges’ by following robust business principles (ageing, social inclusion, sustainable development) SiDE, SALT, LimbsAlive, NEMOG … © Feng Li, 20153
What are the creative industries? ‘What began as an opportunistic yoking together of art and industry in cultural policy for purposes of advocacy and investment has now been enthusiastically adopted by politicians, analysts and educators around the world as an umbrella term covering all or some of the arts, media and entertainment industries and associated branches of the knowledge economy.’ (Bilton, 2007: xvi). © Feng Li, 20154
The creative industries An umbrella term for those industries ‘based on individual creativity, skill and talent and have the potential to create wealth and jobs through developing intellectual property’ 13 sub-sectors explicitly identified A significant and rapidly growing segment of the economy © Feng Li, 20155
Sectors of the creative industries 1Advertising8Film and video 2Architecture9Music 3Art & antiques markets10Performing arts 4Computer & video games11Publishing 5Crafts12Software 6Design13Television and radio 7Designer fashion 14 Others © Feng Li, 20156 Source: UK Department of Culture, Media and Sports (DCMS)
Why creative industries? An ideal domain for systematic examination of the digital transformation of business models Full range of organisations - from large multinationals to micro-businesses Full range of activities – – digital native sectors (such as digital games) where many new business models are developed and adopted – traditional sectors that have been significantly affected by digital technologies (e.g. Publishing, design and music) – areas where the full impacts of digital technologies are still to emerge (e.g. fine art, cultural heritage) © Feng Li, 20157
This research Systematic literature review Two strands of empirical research Primarily qualitative to identify emerging trends Initial ideas in a pilot project Primarily funded by the Research Councils UK (RCUK) under SiDE (£12.6m) Follow up project – NEMOG (£1.2m) © Feng Li, 20158
A holistic analytical framework of business models © Feng Li, 20159
The case studies Mini Case StudiesMain Case Studies Total Number of Cases3050 Advertising-3 Architecture-2 Art and antiques markets44 Computer and video games24 Crafts13 Design55 Designer fashion52 Film and video13 Music119 Performing arts-4 Publishing13 Software-3 Television and radio-2 Others (e.g. Museums)-3 Sizes (No. of Employees) <101323 11-50912 51-50046 >50149 Market Orientation UK428 European412 Global2210 © Feng Li, 201510
How digital technologies changed business models? 30 Mini Case Studies50 Main Case Studies EnhanceExtendTransformEnhanceExtendTransform Value proposition Product offering3 (10%)14 (47%)13 (43%)32 (64%)17 (34%)1 (2%) Market segment2 (7%)12 (40%)16 (53%)32 (64%)18 (36%)0 (0%) Revenue model5 (17%)7 (23%)18 (60%)37 (74%)10 (20%)3 (6%) Value Architecture Value sensing1 (3%)3 (10%)26 (87%)24 (48%)20 (40%)6 (12%) Value creation5 (17%)15 (50%)10 (33%)40 (80%)9 (18%)1 (2%) Value distribution1 (3%)9 (30%)20 (67%)26 (52%)20 (40%)4 (8%) Value capture1 (3%)5 (17%)24 (80%)32 (64%)12 (24%)6 (12%) Functional Architecture Product innovation2 (7%)10 (33%)18 (60%)34 (68%)12 (24%)4 (8%) Infrastructure mgt2 (7%)16 (53%)12 (40%)30 (60%)19 (38%)1 (2%) CRM1 (3%)2 (7%)27 (90%)25 (50%)20 (40%)5 (10%) © Feng Li, 201511
Emerging trends Exclusivity through personalisation Association and brand extension Pay as much as you like and dynamic pricing ‘Wisdom of the crowd’ Significant changes in - – Revenue models in value propositions – Value sensing and value capture in value architecture – Customer relationships management in activity architecture © Feng Li, 201512
Three levels of changes Digital information and interaction Digital extension of traditional business models Digital transformation of traditional business models Limited evidence on the emergence of unprecedented, genuinely novel business models © Feng Li, 201513
Digital transformation of business models Original objective: To identify new or radically reconfigured business models enabled by digital technologies Key finding: Digital technologies primarily used to reconfigure key components of traditional business models, or deploy other types of business models to supplement or replace traditional business models Reconfigured or ‘other’ business models are often not new or novel - clear antecedents can be found elsewhere. The digital transformation of business models is not necessarily about creating radically novel or new business models that did not exist before, but in allowing organisations to deploy a wider range of business models than previously available to them © Feng Li, 201514
What is a NEW business model? Unprecedented new idea – very rare Unprecedented context – borrow ideas from one area and apply in new areas Unprecedented impact – modify and scale up a business model to produce significant impact Unprecedented combinations – the portfolio models? © Feng Li, 201515
The portfolio models: Four variants The market portfolio model - deploy two or more business models to tackle different markets or market niches (e.g. design) The product portfolio model - new niche products from different stages of work-in-progress (e.g. digital arts) The product-service portfolio model – sell experience as well as final product (e.g. the 360 room) Multi-sided business model - interactions with multiple stakeholders upstream, downstream and horizontally in a complex value network or eco-system (ebay, alibaba, 360 degree contract etc.) © Feng Li, 201516
Different levels of integration A loose collection of discrete business models The hybrid models where some key components are shared Full integration of multiple business models as new business model © Feng Li, 201517
Financial sustainability & stakeholder credibility Maximising revenues from different markets or market niches, different stages of work in progress, or multiple sides of the market - reduces risks and increases resilience Previously insignificant markets or market niches grow in business volume and the traditional main market declines, the nature of the business is transformed Increase stakeholder credibility © Feng Li, 201518
Conclusions Pervasive change of business models in the creative industries All layers and all components of value proposition, value architecture and activity architecture All sectors of creative industries in different types of organisations Significantly affect financial sustainability and stakeholder credibility © Feng Li, 201519
Conclusions …. cont Not about creating radically new or novel business models that did not exist before Enable the deployment of a wider range of business models than previously available Traditional business models adapted and applied to different ranges of products online Increasing adoption of the portfolio model across different sectors © Feng Li, 201520
Future research Define conditions when particular business models can be deployed - long term financial sustainability and stakeholder credibility Methodological challenge - very early stage of development with limited empirical presence Policy interventions and incentives © Feng Li, 201521
Thank you! Any questions? Feng.firstname.lastname@example.org Acknowledgements: We acknowledge the financial support by the Economic and Social Research Council [ESRC Grant number RES-185-31-0017: Identify and Promote Sustainable Business Models in the Creative Industries]; and The Research Councils UK Digital Economy Programme [grant number EP/G066019/1 - Social Inclusion through the Digital Economy]. © Feng Li, 201522
Creative Industries By Jenny Johnston. What is the creative industry? The Uk Government has a Department called the DCMS which is Culture, Media and sport.
2014 CHADWICK FELLOWSHIP: Cultural Economic Development Policy in Hackney and Lewisham (London, UK) Richard G Maloney, PhD Director ad interim, Arts Administration.
Michael Seeney Head of Creative Industries Division Department for Culture Media and Sport.
Creative Britain: New Talents for a New Economy The UK strategy for the Creative Industries Will Calladine, Project Manager, Creative Economy Programme.
│ 1│ 1 What are we talking about?… Culture: Visual Arts, Performing Arts, Heritage Literature Cultural Industries: Film and Video, Television and radio,
Visual Arts Further and Higher Education Guide Fine Art Textile ArtPhotography.
Creative Industries Finland Silja Suntola Project Director Helsinki University of Technology / Lifelong learning institute Dipoli CIF is realized in co-operation.
Creative industries-a summary of international research and comparisons Applicant: Benhua Wang Supervisor: Hong Wu.
Driving Innovation Connect & Catalyse The Cultural – Creative Industries Contemporary & Future Challenges Sian Brereton 24 th February 2010.
© Feng Li, How have we changed the business model? Sustainable Business Models for Assisted Living Technologies and Services (SALT) Professor.
Aberdeen Culture Network 14 th May Defining Culture Defies true definition but requires practical parameters Previous definition adopted by Cultural.
By Kieran Roy. Creative Industries are those which have their origin in individual creativity, skill and talent. They also include industries which.
Culture and Mass Media Economy1 Culture Industry Cultural Industries Cultural quarter policies Creative Industries 3. lesson Simona Škarabelová.
Creative Industry in the UK Sean Robertson What it is What it is made up of Recent major developments Importance to UK economy Cultural importance Difference.
The EU at a glance Culture, Tourism and SME development With the support of the Europe for Citizens Programme of the European Union Towards Excellence.
UK work to date and the use of allocation factors: The Problems of Mixed Classes in Economic Classifications OECD Workshop, Paris, 4-5 December 2006.
Visual Arts Further and Higher Education Guide Fine Art Textile Art Photography Graphics.
Digital Media Funding Innovation Centred Funding for the Digital Media Age… Cannes, 21 May 2008 David Furmage Digital Media Policy Lead & Screen, Image.
Creative Industries: Brief Review of Research Literature Julie Carr Culture, External Affairs & Tourism Analytical Unit 6 August 2009.
Presentation of creative industries and their role for the development of youth potential Eugeniy Ivanov 17 July 2012, Dobrich Investing in your future!
6 th National Art Education Summit Yunnan Arts University October 2011 Emma Hunt Dean: Art, Design and Architecture University of Huddersfield.
Culture as an Economic Factor in the development of the city Geoffrey Brown
We-Community Organisation and Key Concepts ©Rob Hayles We-CommunityWe-Community & We-(xxx) brand and the We-Community “jigsaw flower” belong to Rob Hayles.
About the Creative industries Did you know the creative industries in the UK contribute revenues approaching £60bn to the economy and employ more than.
A Health Innovation Systems Approach: The Opportunity and the Challenge Dr. Padmashree Gehl Sampath Department for Public Health, Innovation and Intellectual.
Inspiring Learning for All Jonathan Douglas Head of Learning and Access Museums, Libraries and Archives Council.
EU budget for culture: consultation on the European Culture Programme Pearle conference Frankfurt – november 2010 Agenda point 10.
UNCTAD Classification – CREATIVE INDUSTRIES/CREATIVE ECONOMY HERITAGEARTSMEDIA FUNCTIONAL CREATIONS A) Traditional Cultural Expressions Arts and Crafts.
Higher Education & the Creative Economy Dr Roberta Comunian, School of Arts, University of Kent Introduction An expanding literature acknowledges that.
To businesses seeking a competitive edge, To societies looking for new ways to tackle issues and improve the quality of life. This offers the UK enormous.
SEMINAR ON INTELLECTUAL PROPERTY AND CREATIVE SMALL AND MEDIUM-SIZED ENTERPRISES IN DIGITAL ENVIRONMENT Geneva, May 20-22, 2008 WIPO Creative Industries.
The Value of Nothing: Aesthetics, Creativity and Cultural Economy Justin O’Connor Media, Film and Journalism Monash University.
Professor Dave Delpy Chief Executive of Engineering and Physical Sciences Research Council Research Councils UK Impact Champion Competition vs. Collaboration:
Rural Development Programme 2014 – 2020 Local Government Practioners Workshop 12 th February Lorraine Lynas RDP Managing Authority.
Creative Industries Donna Henderson. What is the creative industry? “The first Creative Industries Mapping Document, published in November 1998, was the.
Ashish Mishra, CEO Strategic Asia, European Office East Asia’s Creative Economy Opportunities and Policy Dimensions.
H2020 FOCUS ON EDUCATION Creat-it Conference
Culture and regional development What’s new?. Culture as strategic investment for EU regions? catalyst for economic development engine for creativity.
UNESCO INSTITUTE for STATISTICS Statistics and Cultural Policy Simon Ellis Head of Culture Science and Communications.
Role of RAS in the Agricultural Innovation System Rasheed Sulaiman V Centre for Research on Innovation & Science Policy Hyderabad, India.
The 2013 State of the Nation Address: A Thematic Analysis Focusing on Tourism Daniel Tevera (PhD) Professor and Head, Department of Geography & Environmental.
Mary-Alice Stack, Director ArtCo Projects, Arts Council England Creative Industry Finance Seminar Series Session 3: Tuesday 13 November 2012.
1 Introduction of Taiwan Cultural & Creative Industries Development Plan 2005/11/14.
Faculty of Computing, Engineering & Technology Professor Hongnian Yu Digital Economy Digital Britain.
Creative Knowledge and the Competitiveness of EU Metropolitan Regions The EU ACRE FP6 Project Julie Brown, Caroline Chapain, Alan Murie, Austin Barber,
Managing Convergence “ We must never forget it’s the content that matters most of all … All the technology in the world will have no impact if there is.
EXPANSION OF THE CULTURAL SECTOR SEEKING THE ECONOMIC DEVELOPMENT OF THE REGION Ingrida Tatarūnė Deputy head of the Planning and Finance department of.
The Global Context LECTURE 8 Marketing Decision Areas.
© 2017 SlidePlayer.com Inc. All rights reserved.