What's the story of your business?

If you were to attend a creative or digital conference, across any industry the mention of business models would at some point waft from tweets and discussions throughout seminars, panel discussions and networking breaks. These may include thoughts about how business models need to change, or what business models are disrupting industries.

However, if you were to ask a selection of folk 'What is a business model?’ they might suggest it is about pricing or the exploitation of IP or what a customer wants. The answer to the question is all of the above and more. The standard definition is a business model explains how a company creates, delivers, and captures value.

In this blog I want to lift the lid up on the term ‘business models' and look at what it really means. 

According to a variety of sources including Business Model Generation the segments of a business model are the following:

Customer Segments - This is the different groups of people your content/product/service is for. You also need to think if your users and customers are different i.e creating content for broadcasters. You have both the broadcaster and the viewers.

Customer relationships – How to build a relationship with your customers - do you need different styles depending on who you are targeting? Does the interaction need face time or an automated process?

Value Proposition – A light bulb moment for me was starting to ask customers not what you need but what ’job’ are you trying to get done. This approach changes the thought process for both the customer and you and jointly moves you into an innovative space. What do your customers consider valuable? What will they pay for?

Revenue Streams – How are you generating an income? Are you being paid for a job? Or licencing your content? Do you have a residual income? Who is paying the users or customers?

Cost Structure - How much are you charging for the value you are delivering to your customers and users? What is your cost structure? How much are the materials etc to create your value and what is your pricing structure?

Channels - How are you distributing or delivering your content/product/service to your customers?  What methods are you using to deliver the value you are offering?

Key Resources – What resources, people do you need to make your business model work effectively? This could be physical assets or skillset.

Key Activities –What activities do you need to do to build relationships, earn revenue, to achieve your business model?

Key Partnerships –What partnerships do you need to build and maintain your business model? This could be suppliers, distributors or a new collaboration to reach new markets or launch an innovative product.

There are many elements to make up a business model. Obviously, each section contains a greater depth and complexity than shown above but it is useful to look at an overview to map out and strategise your current activities, then see if any changes or tweaks can be made to improve the way you are doing business. If you are interested in seriously reviewing your business model check out our free worksheet which has questions based on each section above which can enable you to evaluate your business.

It is worth mentioning that although internal resources and activities are not as sexy as pricing and IP, they can still offer a lot of value. Changing the way you do things internally can impact on, cost, customer relationships and profit.

To conclude I would like to share with you one of my favourite quotes from Joan Magretta, former editor of the Harvard Business Review : ‘Business models are the stories that explain how enterprises work’. Taking that one stage further, just as in a story there tends to be characters, action, and motivation, in a business you have customers, users, their motivation and what the company needs to do to deliver. Customers, partners buy into your business story. This will be how you will differentiate from your competitors. So one thing you can ask your self is what is the story of your business?

For additional info here is a video guide by Tom Hulme, Business Design Director from Ideo.

Creative Leaders Round table discussion to be continued

A few weeks ago as part of the Theme Champion role I put on a round table discussion about business models in the digital creative industry for creative leaders. Some of the companies attended included: Mint Digital, Poke, NixonMcinnes, Golant Media Ventures, Moo, BBC, Putitout.  We had apologises from Aardmann, Keo Films, and Berg who through illness and urgent work matters couldn't make it but would like to be involved in other activities. 

We chatted over dinner about what digital entrepreneur need to support them, the challenge of developing a business as well as running the day to day activities. We also discussed the current level of understanding about business models, how to move from a gun for hire company to creating and selling IP.

All the companies mentioned they were interested in continuing the relationship and discussion and so we will be running another one over drinks in a month or so. The format would be we would have a short talk by an expert, another by one of the companies who would be attending then a chat. If you are interested in joining us please drop me a line at Mel@media-sauce.org.

Slides from Digital 2012

Now that I am back from Digital 2012 in sunny Glasgow ( yes - believe it or not it was!)  I though it would be worthwhile to share with you my slides for the event.

Interactive Scotland asked me to run a workshop on how you can accelerate sales and generate income (hence the title) for their digital and creative sectors. We had around 180 people at the workshop and in approximately one hour we whizzed through how a company can apply a few new business development techniques to increase the amount of customers they have. Thanks to Alisdair and the Interactive Scotland Team for making me very welcome and for running a fantastic event. I look forward to returning soon.

Digital2012final

View more PowerPoint from melnorman

Creative Industries KTN announce the ‘Leap Day Business Challenge’ as part of Social Media Week

Calling all company owners, join us for the Business Leap Day Challenge. Spend your extra leap day this year to review the way you are doing business with our experts in order to take your business to the next level.

Why we are doing this..

A recent study by IBM interviewed 1500 CEOs from around the world and revealed that nearly all of them are adapting their business models - two thirds are implementing extensive innovations, with more than 40% re-defining them to be more collaborative. 

This is aimed at company owners and CEOs who are successful, but who would like to stay ahead of the curve to secure their future. Most companies are re-evaluating the way they do business to keep up with technology disruptions. Join them to review your business model

Register now for your free worksheet written by our panel of business experts   bm@creativeindustriesktn.org

By stepping back and thinking how you can change your business model it can bring so many opportunities to your attention. This is exactly what the leap day business challenge is all about- you only get an extra day once every four years, we’re calling on companies to really make the most of it!

The ‘leap day challenge’ will be followed up by further events, including a free invitation only round table for senior execs, expert blogs, interviews which will be housed at our business model community http://bit.ly/yp5rQc.  Businesses are being encouraged to share their experiences to create a valuable dialogue about the future business models in the creative industries.

If you think your company could benefit from reviewing your business model, join the challenge today!

Register now for a free work sheet by sending your name, company name and why you would like to participate to bm@creativeindustriesktn.org. We will send you the worksheet for you to fill out alone, or with your team. All participating companies will be entered into a prize draw to win a prize kindly donated by MOO, £150 credit to spend on Business Cards, Stickers, and other print products.

 This Leap Day Business Challenge has been made possible by – The Creative Industries Knowledge Transfer Network (CI KTN) and Media-Sauce

First bloggage in new role as Theme Champion for Business Models Creativektn

Two months of meetings, deliberations, and consultations have come up with the following;ideas, themes which will be weaved throughout the year for my new part time role as Theme Champion of Business Models and Growth. I’m really excited by this theme as it offers a lots;of opportunity to creative and digital company business owners and has been a passion of mine for many years.

Why is there a need for this role?

It is particularly sad to watch big global giants like Kodak who were the pioneers of digital photography, fall by the way side. Companies are not only having to change and adapt to;survive, not only having to change their products or and services but there the DNA, at the;heart of their business. There is no constant. A recent study by IBM interviewed 1500 CEOs;from around the world and found out that nearly all CEOs are adapting their business model.

Two thirds are implementing extensive innovations and more than 40% are re-defining their business model to be more collaborative.

The way that companies do business is changing, they are

• being original rather than traditional

• building collaboration into their business model

• baking immediate decisions rather than death by committee

• understanding that what their customer sees as valuable may change tomorrow

• simplifying processes for the benefit of employees and customers

• putting people centre stage.

It is easy to wax lyrical about these ideas, but is a lot harder to implement when the day to day running. Adding the ‘Must adapt strategy or business model’ to your 20 minute free slot during the day is easier said than done.

Who this is for?

This Theme and it’s supported activity, targets company owners and CEOs who are running successful businesses, but who would like to stay ahead of the curve and seek the latest knowledge to secure their future.

Ask yourself:

How will you challenge your business model to maximise opportunity?What will be your main revenue stream in 3-5 years time? Will your current one still be as strong?

What are the benefits? Through blogs, events, interviews and discussions, my personal aim is to deliver the best;business model knowledge that exists to creative/digital company CEOs and business;owners in a jargon free format so you can grow your business, move forward on your journey of adapting your business model and save time researching.;Join us at the business model group on theconnect site where we will provide a space for learning, sharing and debate and signpost you to further knowledge inside and outside of the creative industries.

I can’t offer you a magic potion to transform your business but what I can do is show you a framework for you to start the process yourself, translate knowledge from experts both inside and outside the creative industries and share case studies of many companies who have succeeded.