New Ideas for the Creative Economy

In this last episode, the author discusses 5 new ideas to support the creative economy, mainly directed to training programs and public policy makers.

  • Think of a new profile of the creative professional that balances the development of talent with its opportunities to impact the economy and society
  • Use the model of the 4 P’s (products, peers, projects and people) for the development of a robust portfolio in the creative disciplines
  • Think about the main business models (experiences, products and digital) beyond the categorization by creative sectors (heritage, arts, media and creative services)
  • Promote the importance of creative cooperation as a sustainability strategy in the cultural and creative sector
  • Reflect on the proposal of a Sustainable Creative Economy Index that integrates economic impact, state of the creative ecosystem, artistic education and cultural consumption as its main components

Innovation, Creative Ecosystem and Cultural Citizenship

This episode discusses the last three chapters of the book. The culture of innovation is presented as one of the key aspects in cultural and creative management. The different types of innovation that enterprises can generate are discussed. Likewise, some tools that ventures must establish to promote innovation in products, processes, organizational and marketing are discussed. Creative ecosystem is also presented as a field of action of cultural and creative enterprises to promote sector sustainability. Finally, the concept of cultural citizenship is presented as a field of action of the social impact that cultural and creative enterprises must address. Concepts such as creative, ethical, social and local development impact are discussed. These elements are considered as key objectives for sustainability in the cultural and creative sector and in society.

Objective

  • Assume the importance of creating a culture of continuous innovation in enterprises
  • Know the different types of innovation that an enterprise can generate
  • Know and use tools and dynamics to promote innovation in a venture
  • Recognize the importance of the externalities generated by creative entrepreneurship
  • Know models to understand the non-economic impacts of cultural and creative enterprises
  • Design strategies to maximize the impact of a venture on the creative ecosystem
  • Understand the importance of the social impact of creative enterprises
  • Create awareness of the role of creative companies in urban development and the challenges that this represents


 
Assignments

  1. Make a diagnosis of the products, processes, organizational and market aspects of your enterprise. Identify areas that still create problems for the customers or resources of the organization. Create a dynamic that facilitates the generation of ideas to solve it. Choose the idea that is most viable in terms of problem solving and implementation. Develop an actionable plan to implement it.
  2. Based on the third axis of the mission that you have elaborated previously (educational, social, community, urban, etc.), identify the audience you want to benefit through this component. Define the current condition of that audience, the actions you will take to change it, and how you expect that group to change after those actions. It uses the Logical Model as a reference.

Financial Management

Financial Management

This episode discusses some key concepts needed to understand the financial condition of an enterprise. The episode emphasizes on budget development, determining start-up investment need and financing alternatives.

Objectives

  • Know the fundamentals of financial statements
  • Know how to design a budget for new projects and ventures
  • Know financing alternatives for creative enterprises

Assignment

  1. Initial investment – Identify the resources necessary to start your operation. Start by making a list of expenses and assets. Aggregate them in categories such as operational expenses, equipment purchases, inventory, etc. Then, identify your available resources: cash, equipment, in-kind, etc. Finally, identify and plan your funding sources to cover that initial investment: contributions from the owners, private investment or loans. Make sure there is a balance between the three components. In general, a bank or investor will not contribute 100% to the initial investment.
  2. Financial statements – Prepare a proforma financial statements using the models presented in the book (Income Statement, Balance Sheet and Cash Flow Statement). Prepare a list of notes for each of the sources of income and expenses that explain the assumptions that led you to use those totals.
  3. Financing plan – Create a crowdfunding campaign to generate seed capital for your enterprise. Analyze the requirements and payment methods of various platforms and choose the one that best suits you. Establish a budget, write the description of the project, create a script for your video, structure a contact database and create a calendar for social networks.

 

Marketing

This episode explores the discipline of marketing as the main resource to reach customers. The importance of market research and consumer behavior is analyzed to develop an effective strategy. Accordingly, the elements of a tactical plan are discussed, with direct actions that implements the strategy. The episode incorporates the importance of internationalization as a growth strategy.

 

Objective

  • Know the scope of marketing as a functional area in enterprises
  • Be able to design a market strategy based on a market analysis
  • Know how to create a tactical plan that includes activities of product development, pricing, distribution and promotion

Assignment

  1. Market research – Establishes a research plan for the next 12 months. This may include interviews with key stakeholders, a focus group with clients and supporting resources, analysis of social networks or surveys. Defines the problem or opportunity that requires research, the objectives, the methodology and the analysis of the data collected.
  2. Social network plan – Establish a plan for the social networks you use. Include the type of content you expect to communicate, the dates, graphic elements, frequency and person responsible. Be sure to include scope expectations and evaluate its performance so you can make modifications in the medium term. Establish a fixed time period before making changes to the strategy. Remember that consistency is the key to evaluating performance.
  3. Export – Prepare a list of events related to your industry at the international level. Evaluate the participation requirements and reviews previous events. Define a budget to participate in this type of events. Similarly, identify successful enterprises in your sector in other countries. Contact them through email or social media. Present your work and analyze the possibilities of collaboration.

 

Organizational Design

This episode presents organizational design as a determining factor to implement the strategy of the creative venture. Aspects such as the organizational structure and the importance of human resources, processes and leadership in business management are discussed. Different models are presented to adapt it to the reality of cultural and creative enterprises.

Objectives

  • Know the importance of organizational design as a tool to implement strategies
  • Define an organizational structure through resources, processes and tasks that respond to the reality of the enterprise
  • Learn to design and implement evaluation indicators for projects and ventures

Assignment

  1. Tasks, profiles and processes:
    1. Prepare a list of all the tasks that the operation you propose will need, regardless of the people or the profile of the job.
    2. Groups the tasks that should be done by the same person.
    3. Based on this group of tasks, define the profile of the job and person who will perform it.
    4. Group the roles and establish the relationship between the roles and the supervision level. This will allow you to establish an organizational structure based on the real needs of the enterprise.

Business Models

This episode presents tools to design a new venture. It also discusses the multiple components of a mission and the development of a value proposition that consider elements beyond the creative product or service. Also, the importance of identifying revenue streams, cost structure and the legal structure that best adapts to the operation of the company are presented. Intellectual property aspects are also presented as an element of differentiation and income generation.

Objective

  • Know the importance of designing a mission with multiple dimensions
  • Assume the importance of developing a value proposition that incorporates customer experience
  • Know and use design tools such as the Business Canvas Model and the Logic Model

Assignment

  1. The mission – Prepare a mission statement for the venture in 100 words or less. Be sure to identify the three axes of the mission. The first from an artistic or creative nature, the second from an economic sustainability focus (market oriented) and the third axis that will vary depending on the nature of the initiative (social, community, educational, urban, etc.)
  2. Customer Analysis – Describe your main customer profile in up to 150 words. Use demographic, geographic, lifestyle, generational, tastes and behavioral aspects, among others. Describe the main “pains” or difficulties experienced by your client or user when consuming a product or service similar to yours. Similarly, describe what the customer expects to “gain” by consuming or participating in your product, service or experience.
  3. Value proposition – Use the model of the four concentric circles value proposition model to establish keywords in each of the levels. Go from the inside out. First, identify the main activity of the company. Then, establish all the elements that customers expect as part of the consumption of your product or service. In the third circle, establish complementary activities that guarantee the satisfaction and delight of consumers. Finally, include some elements that would be necessary to develop in the future to improve the experience.
  4. Canvas model – Prepare a canvas model for your business idea. In a first exercise, use keywords for each of the blocks. Then elaborate more specific approaches and actions for each component.
  5. Prepare a business presentation in a maximum of 3 minutes. Be sure to present the problem you are solving (aesthetic, emotional, social, entertainment, educational, etc.), your success elements, the target market and the resources you have to achieve it. End by answering the question about how the business will generate revenue. Practice it frequently.

Market Analysis

This episode presents the importance of incorporating market analysis at all stages of business management and entrepreneurship. We will discuss the aspects of the external environment that affect creative entrepreneurship. The analysis of the value chain is also presented as a tool to understand the different stages of an industry as a mechanism to understand challenges and opportunities that a creative venture will face. The generation of business ideas and the analysis of their viability are also discussed.

Objectives

  • Understand the variables of the macro and microenvironment and their importance in the development and management of cultural and creative ventures
  • Know how to perform an analysis of the external environment of the creative venture
  • Understand the importance of the value chain analysis of the cultural and creative sectors
  • Know tools for generating business ideas and analyzing their viability.

Assignment

  1. Value chain analysis: Identify the sub-segment of the creative industries where your enterprise is associated. For example, if the creative sector is music, then a sub-segment could be classical music. The same would be the case of documentary film within the general film sector or furniture design within industrial design. Analyze the value chain. Start by establishing the activities that make up that chain. Then, identify a list of companies for each activity and its level of impact.
  2. Based on the inventory findings, draw a mental map that exemplifies the composition of the ecosystem and the relationship between the agents.
  3. Perform a SWOT analysis (Strengths, Opportunities, Weaknesses and Threats) based on what you have observed.