Issues arising from Issues arising from research into the research into the

emergence of enterprise emergence of enterprise in the creative industriesin the creative industries

Lorraine WarrenLorraine Warren

Ted FullerTed Fuller

Sept 16, BAM 2009Sept 16, BAM 2009

Previous research (1)Previous research (1)

• Fuller and Warren et al (2004-8)Fuller and Warren et al (2004-8)

• Complexity and entrepreneurshipComplexity and entrepreneurship

• Emergence of novelty (products, Emergence of novelty (products, services, patterns of behaviour, firms, services, patterns of behaviour, firms, etc)etc)

• Methodological issues arising from Methodological issues arising from tracking emergencetracking emergence

• Airline, retail industriesAirline, retail industries

Previous research (2)Previous research (2)

• Processes of emergence – Processes of emergence – experiments, reflexivity, organising experiments, reflexivity, organising domains, sensitivitydomains, sensitivity

• Ephemeral/stable emergents which Ephemeral/stable emergents which may or may not persist over time, may or may not persist over time, become strategically significantbecome strategically significant

CREATOR - EPSRCCREATOR - EPSRC

• Creative industries in the Digital EconomyCreative industries in the Digital Economy• A diverse range of increasingly cross-linked industries (e.g. arts, A diverse range of increasingly cross-linked industries (e.g. arts,

culture, heritage, gaming, performance, sports)culture, heritage, gaming, performance, sports)• The potential for many inter-related (aesthetic) artefacts and The potential for many inter-related (aesthetic) artefacts and

servicesservices• Digital technology can establish new resonances between social Digital technology can establish new resonances between social

practices and the techno-creative milieupractices and the techno-creative milieu• The need for continually (re) organising entrepreneurial & The need for continually (re) organising entrepreneurial &

innovative team collaborations around new projectsinnovative team collaborations around new projects• Novel, sometimes unorthodox, combinations of people and Novel, sometimes unorthodox, combinations of people and

technologies for which there may be no precedenttechnologies for which there may be no precedent• Values issues regarding interchange of artistic, cultural, social Values issues regarding interchange of artistic, cultural, social

capitals (particularly where creative output is critical or capitals (particularly where creative output is critical or challenging of powerful groupings).challenging of powerful groupings).

• Fluid, dynamic, indeterminate outcomesFluid, dynamic, indeterminate outcomes• Multiple levels of analysis, very intertwinedMultiple levels of analysis, very intertwined

ProjectsProjects

• Short case studies, interviews, internet Short case studies, interviews, internet analysis, project based: how novelty analysis, project based: how novelty arises through interactions between arises through interactions between actors in study over time – stable actors in study over time – stable emergents?emergents?

• Proboscis, iShed, SCAN, IT-Innovation, Proboscis, iShed, SCAN, IT-Innovation, Gesture/Embodied InteractionGesture/Embodied Interaction

Stable emergentsStable emergents

• Sensory Threads: the ‘Rumbler’ a Sensory Threads: the ‘Rumbler’ a novel interactive soundscape devicenovel interactive soundscape device

• Gesture: a unique combination of Gesture: a unique combination of skill-sets in the sound/motion capture skill-sets in the sound/motion capture domain, supported by robust codedomain, supported by robust code

• IT-Innovation: a potential business IT-Innovation: a potential business model as yet untestedmodel as yet untested

OutcomesOutcomes

• Stable emergents with ontological status and Stable emergents with ontological status and causal power – NOT well-specified at outsetcausal power – NOT well-specified at outset

• Particular business models, particular Particular business models, particular dominant logics, triggers for changedominant logics, triggers for change

• Command intensive resource and attention – Command intensive resource and attention – may or may not be developed through to may or may not be developed through to fruitionfruition

• Can value be extracted? Processes that Can value be extracted? Processes that create value may not necessarily capture it!create value may not necessarily capture it!

Value creating ecologies Value creating ecologies (Hearn)(Hearn)• Concept of business model tends to over Concept of business model tends to over

simplifysimplify

• Consumers as co creators of value

• Value chains to value networks

• Product value to network value

• Simple co-operation or competition to complex co-opetition and

• Individual firm strategy to strategy in relation to value ecologies

Rethinking business models as Rethinking business models as value creating systemsvalue creating systems

• Firms act to stabilise ephemeral Firms act to stabilise ephemeral emergents sufficiently to introduce emergents sufficiently to introduce them into value creating ecologiesthem into value creating ecologies

• 3 types of model are necessary for 3 types of model are necessary for creative people and activities to creative people and activities to create value in a reproducible form:create value in a reproducible form:

3 models3 models

a model that creates the conditions for creativity and reputation by establishing attractors; typically resources for co-operation.

a model that stabilises the emergent properties of the first; typically the creation of codified knowledge.

a model that enables the exchange of monetary value for this codified knowledge, and is more recognisable as a business model by investors