The business system of creative industries: interaction of creative and technological components Doc.dr.Monika Petraite - Kriaucioniene Kaunas university of technology about creativity and capital “Wealth results from creativity, ideas, imagination and innovation” change is the process by which the future invades our lives -> Alvin Toffler innovation, convergence and creative industries Areas of innovation CREATIVE FIRM 1 General administration & financial management 5 Internal communications, Management of HR & work organization PRODUCTION & PREPRODUCTION 6 Back-office/ back stage production processes, design process 2 Revenue Model 3 Value Chain BACK Location 7 Transaction (purchase, lease etc.) 9 Content of Product (cultural concept etc.) 4 Communications with suppliers, collaborators, supply chain partners etc. 11 Product format (“cultural product”, performance features of product) 10 Performance and production processes 14 User Interaction, including supply & configuration of content 12 Delivery of Product STAGE PRODUCT 13 User Interface with Product FRONT STAGE 8 Marketing and customer relationship management COMMUNICATIONS 15 User Capabilities & Media (e.g. Consumer Electronics) USER EXPERIENCE Innovation = doing new things (or old things in new ways) – with or without new technology and technique digital convergence Distinct industries have dealt with hardware, software, telecommunications, broadcasting, print, recorded music, images, other media a three-dimensional media universe COMMUNICATION Moving over Space Telecommunications Transforming, Processing Computation INTERACTION PROCESSING CHANNELS Information (Broadcast Media) CONTENT Storing over Time, ReproducingPublished Media a growing market space, increasing size of markets Increasing diversity of products The expanding media universe Communications Computation Content turn of the century TELECOMMUNICATIONS Increasing integration of media, use of optical media, digitalisation Digital mobile phones, Widespread use of Fax, pagers BROADCAST + PUBLISHED MEDIA Numerous PCs, Electronic laptops. mail, notebooks, pocket SMS organisers, etc. Mobile data Numerous home comms computers and Internet videogames World Wide Web Cable telephony Audiotext CD-ROM publishing Videorecorders, audio CDs, digital recording cable and satellite TV COMPUTERS now 2010? COMPUTERS TELECOMMUNICATIONS Digital mobile communications in wide use pervasive communications Internet telephone VoI, Internet videotelephony Internet TV Video on Demand Interactive TV Pervasive computers, in many types of device (e.g. Personal Digital Assistants, smartphones) WiFi, Next generation of Internet & WWW, Web2.0, Video telephones DVD-R+, and interactive conferences video MP3 and PVR, Digital Broadcast TV digital videorecording BROADCAST + PUBLISHED MEDIA High definition TV uncertainties new product categories internet narrowcasting Innovation in service concept, design, delivery, interaction with (and among) clients digital cinema (+3D) Innovation in Production, Distribution and Delivery, User Experience games Innovation in delivery, content, user interfaces, user interaction (online games etc)… design process innovation – becoming product innovation (virtual prototyping etc) Broadcast Media Content Innovation – routine (“fresh” content vs “novel” content) and generic (new content v new structures for content). Plus User engagement innovation Content is King (c) Content innovation is only part of the story… Innovation in production, distribution, delivery of creative products involvement of “consumers” and relations between firms business models and customer relationships Holistic approach designing success smart specialization Search for market niches worldwide in terms of technologies, customers and favorable institutional settings