Creative Business Models @ Picnic #1
Martijn Arnoldus (projectleader) gives a presentation on the preliminary research results. And he isn’t handing out blueprints or business models. We call it a workshop, so it will be an interactive session. Today’s workshop is a mind game. We think of creative industries as if a cluster of industries.
Wt is wrong with the shown picture of a man with a bugaboo? Well: it’s a guy, with a baby. The photo is a screenshot of the Bugaboo website. Bugaboo is one of the cases we’ve researched. Bugaboo isn’t into selling buggy’s, Bugaboo wants to sell mobility. In their brochures there is no space for baby’s or even people. They’ve started with a buggy, but that’s just a start. We’ll see more product form this manufacturer.
Second photo is a cd. What’s missing is a case and a booklet. We don’t care anymore if a booklet is missing. The experience of music has changed since we download music. Beck believes that the physical aspect is part of the music experience as well, So his last cd had ‘create it yourself artwork. Complete with an exhibition in Japan.
Value is where you don’t expect it. As an entrepreneur you look into the places where you expect to find added value.
In our research we use a business model with the following building blocks:
* The business logic of a company. Usually this model is in the heads of the founders.
- Value – what value do you create
- Customers – who are your customers
- Company structure –
- Partner network. Creatives most often don’t cover the whole productions chain, who do you team up with.
- Revenue model – how do you make money
- Value is not just the product or service you deliver.
- The value can also be in the brand (= a reputations), this can be an investment for the future: you might ask a higher fee next time, bases on increased reputation.
- Knowledge of the creative process.
- goodbye to the ‘look and feel’. It’s time to stop thinking that how your product or service looks or feels is enough.
- Experience starts in the firm, not outside it. E.g. Bugaboo wanted to tell dads that they’re parents as well. But fathers don’t needs buggy’s, they need a car. Bugaboo delivers a buggy that feels like a car.
- Producers: The roles of producers an consumers are melting. But is this a trend friend or foe? Martijn mentions the first book by Cory Doctorow, he published this book in paperback =, but also online. The second vrsion of the book had an even more open licence: readers were allowed to change storylines. Doctorow writes sci-fi, his audience is keen on reshaping content. His readers are devote conference go-ers and entire communities live on the web that write fan fiction. . By using an open licence Doctorow earned credit.
3. Company architecture
You’re not just producing product or services, you need affiliation with what you make. How do you come to grips with your creative DNA. How do we engage your staff?
In our interviews we see that lots of companies struggle ith this question.
4. Partner network
Very useful for cross subsidizing risks of productions. There is always an uncertainty f demand and supply. You look for ‘value partners’, who share your view.
5. Revenue model
Sure you’re in it for the money. But if all the others building blocks of the business model aren’t in order, you won’t make money.
WE see a few mechanisms to make money:
- Sell ‘sweat: the hours of labour that you invest
- Sell intellectual property
- Sell your brand or personal reputation (Rem Koolhaas)
- Sell your knowledge (e.g. All Stars sold it format: a production bible which tell you how to arrange the production chain). Such a production bible is a smart way to make money.