Collaboration business models - rapport

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Collaboration and Business Models in the Creative Industry. Exploring heterogeneous collaborations.

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<ul><li> CollaborationandBusinessModels intheCreativeIndustry Exploringheterogeneouscollaborations Commissioner: IIPCreate Authors: RemcoKossen PetervandePoel IsabelleReymen Date: March2010 </li> <li> CollaborationandBusinessModelsintheCreativeIndustry Page2of47 </li> <li> PREFACE This report is the result of the IIP Create project "Collaboration and business models in the creative industry". Collaboration and business models are one of the key themes of the Strategic Research AgendaofIIPCreate.IIPCreateisoneoftheInnovationplatformsofICTRegie,stressingtheimportance of the creative sector. The report describes a) important and relevant literature, b) important stakeholders,andc)bestpracticesandproblemsoncollaborationandbusinessmodelsinthecreative industry. The aim of this report is to inform and convince policy makers, knowledge institutes and practice of the importance of the topic and indicate areas for further research in the near future. It shouldprovidethebasisinformationforaproposalandconsortiumonthetopic. Based onarequestfrom IIPCreate,IsabelleReymenfrom Eindhoven Universityof Technology (TU/e) and Catholijn Jonker from TUDelft wrote a project proposal in Spring 2009, which was accorded by IIPCreate in August 2009. It was one of the Ways of Working (WoW) Projects, coordinated by Anne Nigten. The project was performed from September 2009 till March 2010 by two master students of TU/e,RemcoKossenandPetervandePoel,undersupervisionofIsabelleReymen. dr.ir.arch.IsabelleisAssistantProfessorDesignProcessesattheEindhovenUniversityof Technology(TU/e)andworkingintheInnovation,TechnologyEntrepreneurship,andMarketing Group(ITEM)oftheDepartmentofIndustrialEngineeringandInnovationSciences.The researchconductedintheITEMgrouprelatestotheareasofNewProductDevelopment,and EntrepreneurshipandCommercializationofNewTechnology.Educationismainlyprovidedin theprograms"InnovationManagement"(Master)and"TechnischeBedrijfskunde"(Bachelor). EntrepreneurshiprelatededucationactivitiestakeplaceintheBrabantCenterof Entrepreneurship,acollaborationbetweentheUniversityofTilburgandtheTU/e. B.Sc.PetervandePoelfinishedhisBachelorIndustrialEngineeringandisenrolledinthe OperationsManagementandLogisticmasteratTU/e.Heplanstograduatethissummer. B.Eng.RemcoKossenfinishedhisbachelorMechanicalEngineeringandisenrolledinthe InnovationManagementmaster.Heplanstograduatethissummer. Weespeciallyliketothankpeoplewhomadethisstudypossible.Firstofall,weliketothankCatholijn Jonkerforhersupportinwritingtheproposal.AlsoveryimportantwasAnneNigtenforrepresentingthe WoWprojectsonahigherlevelinIIPcreate.WeliketothankGeleijnMeijer(directorofIIPCreate)and PatriciaHeukensfeldtJansenandFritsGrotenhuisworkingforIIPCreatefortheirsupportofourproject, alsofinancially,andforarrangingallcontractrelatedaspects.Contentrelatedexpertiseinthefieldof collaboration and business models was obtained from the TU/e Department of Industrial Engineering andInnovationSciences,groupofInnovation,TechnologyentrepreneurshipandMarketing(www.item eindhoven.nl).EspeciallyHansBerendsandKseniaPodoynitsynaprovidedconstructivefeedbackduring theproject. CollaborationandBusinessModelsintheCreativeIndustry Page3of47 </li> <li> TABLEOFCONTENTS Preface..................................................................................................................................................... 3 Summary.................................................................................................................................................. 5 1 Introduction ..................................................................................................................................... 7 2 ResearchApproach .......................................................................................................................... 8 2.1 OverallApproach .................................................................................................................... 8 2.2 IdentificationofImportantStakeholders ................................................................................ 8 2.3 IdentificationofBestpracticesandProblems ......................................................................... 8 2.3.1 DataCollection ................................................................................................................... 8 2.3.2 CaseSelection..................................................................................................................... 8 2.3.3 DataAnalysis ...................................................................................................................... 9 2.4 LiteratureReview.................................................................................................................... 9 3 LiteratureReview ........................................................................................................................... 10 3.1 Introduction.......................................................................................................................... 10 3.2 TheCreativeIndustry............................................................................................................ 10 3.3 Collaboration ........................................................................................................................ 12 3.4 BusinessModels ................................................................................................................... 13 3.4.1 WhatisabusinessModel? ............................................................................................... 13 3.4.2 FrameworksofBusinessModels....................................................................................... 13 3.4.3 TypeofBusinessModels .................................................................................................. 16 3.5 CollaborationandBusinessModels ...................................................................................... 17 3.5.1 OpenBusinessModels:InsideoutandOutsidein........................................................ 17 3.5.2 Codevelopmentpartnerships .......................................................................................... 19 3.6 Conclusion ............................................................................................................................ 19 4 ImportantStakeholders.................................................................................................................. 20 4.1 StakeholdersInterviewed ..................................................................................................... 20 4.2 OtherStakeholdersintheCreativeIndustry ......................................................................... 22 4.3 Conclusion ............................................................................................................................ 23 5 BestPracticesandProblems .......................................................................................................... 24 5.1 CollaborationintheCreativeIndustry .................................................................................. 24 5.1.1 Theimportanceofhavinganetwork ................................................................................ 24 5.1.2 Formalizationandcontracts&amp;IP ...................................................................................... 24 5.1.3 Communication&amp;trust .................................................................................................... 26 5.1.4 HeterogeneityinSizeandDiscipline ................................................................................. 26 5.2 BusinessmodelsintheCreativeIndustry.............................................................................. 28 5.3 CollaborativeBusinessModels.............................................................................................. 30 5.4 Conclusion ............................................................................................................................ 32 6 Conclusions .................................................................................................................................... 33 7 References ..................................................................................................................................... 35 8 Interviewnotes .............................................................................................................................. 36 9 Appendices..................................................................................................................................... 37 9.1 InterviewProtocolentrepreneur .......................................................................................... 37 9.2 InterviewProtocolinformationbrokers ............................................................................. 39 9.3 BusinessModels ................................................................................................................... 41 CollaborationandBusinessModelsintheCreativeIndustry Page4of47 </li> <li> SUMMARY This report is the result of the IIP Create project "Collaboration and business models in the creative industry". Collaboration and business models are one of the key themes of the Strategic Research Agenda of IIP Create. The report describes a) important and relevant literature, b) important stakeholders,andc)bestpracticesandproblemsoncollaborationandbusinessmodelsinthecreative industry. The aim of this report is to inform and convince policy makers, knowledge institutes and practice of the importance of the topic and indicate areas for further research in the near future. It shouldprovidethebasisinformationforaproposalandconsortiumonthetopic. Collaboration in the creative industry is indeed very important. There are several reasons for collaborations betweenpartnersinthecreativeindustry.Forexample,creativebusinesses(ZZP,start ups, SME,) often lack resources to leverage their creativity into successful products whereas other (larger) companies often lack creativity and speed to exploit their IP. Based on our study, we see heterogeneous collaborations in the creative industry as collaborations a) between different type of partners:e.g.ZZP,SME,startupsversuse.g.largecorporations,knowledgeinstitutes,culturalinstitutes, b) between partners from different disciplines (different Beta disciplines like mechanical engineering, electrical engineering etc., but also alfa and gamma disciplines), and c) with different positions in the valuechain/ondifferenttopics,e.g.conceptdevelopment,marketingandcustomerinvolvement,supply chain,etc.. Importantproblemsrecognizedincollaborationsinthecreativeindustryarea)economicvaluationof creative/cultural value is difficult since this value is to a great extent intangible, which often rises problemswiththeprotectionofIPorintheattractionofmoney;b)differencesincultureandapproach between partners (e.g. formality, hierarchy, scale). Since the creative industry employs approximately 30%oftheDutchemployees,thecollaborationproblemsarenotincidentalbutstructural;mostofthe intervieweesstatethatitisdifficult. Important enablers for collaborations in the creative industry seem to be subsidies (like Point One), developmentenvironments(likeFablab),networks(likesocialnetworks),andcommunicationandtrust (versus formalization, contracts and IP). Practitioners invented numerous ways (best practices) to overcome typical problems with heterogeneous collaboration. Many entrepreneurs are involved in (large)networksandusestrongandweaktiesrelationships.Theserelationshipsenablethemtoattract moneyandraisefunds,get(free)juridicaladvice,and/orstartnewcooperations.Manyofthemstate thatcommunicationandtrustareessentialinmaintainingthesenetworks.Furthermore,entrepreneurs showagreatamountofcreativityincreatingbusinessmodels.Someofferadiversifiedproduct/service portfoliotoextentthenumberofpossibleincomechannels.Othersareinvolvedinnumeroussubsidy programs.Someevencreateuniquedistributionchannels. Twodominanttypeofbusinessmodelscouldbeidentifiedinthecreativeindustry,namelycreators,in whichproductsarecreatedandsoldtobuyers(physicalaswellasintangibleassetsarebeingsold)and brokers,facilitatingsalesbymatchingpotentialbuyersandsellers,ofmainlyintangibleassets(basedon the framework of Malone, 2006). Some other business model related aspects we found are: every model is unique; alignment of the partners' business models is essential in fruitful collaboration; and open innovation (insideout and outsidein) stimulates collaborations and enables new ways of doing business.Despitethelargeamountofprofessionalattentiontobusinessmodels,academicliteratureon business models is scarce. We could identify several frameworks of business models and types of business models. But insight on the design and development of business models for (heterogeneous) collaboration is limited, let alone specific to the creative industry. Empirical research based on some good(andbad)practicesmayhelptocreateinsightinthedevelopmentofeffectivebusinessmodels CollaborationandBusinessModelsintheCreativeIndustry Page5of47 </li> <li> andcreateguidelinestodesignbusinessmodelsusefulinthecreativeindustry.Soalthoughsomebest practice exist, more research towards effective business models for collaboration in the creative industryisneeded.Itshouldenhancebothscientistsandpractitionerstofullyexploittheopportunities inthecreativeindustry. Also guidelines and support is needed to face the many challenges when setting up heterogeneous collaborations.Thishasnotbeencoveredwidelyintheliterature,andalsoinpractice,littleisknown. Many of the interviewees acknowledged that most collaborations are designed by their gut feelings. Insight in the development and guidelines for the design of business models for different type of (heterogeneous)collaborationsisdefinitelymissing.Inordertocreateusef...</li></ul>