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3C 4 iNCUBators BuSINESS MODEl
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BuSINESS MODEl
3C 4 INCUBATORS Business Model Published by: 3C 4 INCUBATORS Coordinated by: Lazio Region Co-financed

3C 4 INCUBATORS

Business Model

Published by: 3C 4 INCUBATORS Coordinated by: Lazio Region Co-financed by: MED Programme - European Regional Development Fund October 2014

www.3c4incubators.eu

CHAPTER 1 THE OBJECTIVE OF THE CAPITALIZATION PROJECT

This work originates from the different experiences with success in former UE projects.

The objective is to capitalize on the former projects’ outputs, creating a broader vision.

By this more complete vision, we hope to make a contribution to Cultural and Creative SMEs, to Enterprise Incubators and to SMEs tutors.

The final aim is to enhance the ability to generate business models in a balanced and complete way and also to focus attention to the relationship between SME/territory and individuals.

The conclusions of this document also provide some proposals about the role of a new model of Cultural and Creative Incubators, and describe the context in which the present work could be used.

This document is designed to be

• A PRODUCT ORIENTED TO SUPPORT DIRECTLY CULTURAL AND CREATIVE SMEs IN GENERAT- ING NEW BUSINESS IDEAS

A SET OF INSTRUMENTS AND TOOLS FOR THEIR ACTIVITY

• A PRODUCT MAINLY USED BY CULTURAL AND CREATIVE SMES but also by their tutors.

CHAPTER 2 THE OUTPUTS TO CAPITALIZE

2.1 COMPUTERIZED “INNOVATION AND INTERNATIONALIZATION CAPACITY AUDIT METHODOLOGY FOR SMES”

WHAT IS THE OUTPUT

The effective deployment of innovation has been widely recognized as a means of building a sustainable competitive advantage and thereby enhancing organizational performance.

A focus group discussion of senior executives from innovative and internationalized firms in Western

Greece was conducted to test user understanding of the initial version of the framework. Revisions were made based on their comments.

TARGETS

The capacity audit methodology was conceived for:

ü SMEs

MAIN GOAL OF THE OUTPUT

This deliverable is a methodology setting specific criteria, defining key-sectors (organization – staffing – quality

– accumulative knowledge – infrastructure – competitiveness – efficiency – finances - etc.) and providing a concrete process for assessing an SME’s relevant potential.

The questionnaire consists of 13 sections: sections 1 to 11 consist of the innovation audit capacity for SMEs while sections 12 and 13 consist of the internationalized audit capacity of SMEs.

In

sections 1, 2, 3 and 4, executives that answer the questionnaire are asked to rate their capability with regard

to

several specific subjects. The ratings can range from 1 (very poor) to 5 (extremely high). The executives may

also choose to rate their capabilities with three middle rates 2 (poor), 3 (middle) and 4 (high). The respond-

ents should add the number five (5) to the selected answer if it can take the gravity rate 5, the number one (1)

to

the answer that can take the gravity rate 1 and the same for the rest of the rates.

In

sections 5 to 13, the executives have to answer YES or NO to relevant questions that test their capability

in

specific sections. The respondents should add the number one (1) to the selected answer and the num-

ber zero (0) to the answer that does not constitute an answer that describes the enterprise.

All sentences should be answered by the respondents. In case some sentences are not applicable to the relevant enterprise the answer to these specific sentences is NO.

The questionnaire should be answered by the general management of the enterprise.

According to availability, a convenient method to get the answers to the questionnaire is during the imple- mentation of the Social Consultation Territorial Focus Groups’ Sessions.

The sum of the rates of each SME’s accumulated answers show the final score of this group of questions in relation to the maximum possible score of the same group. The final scores of each group of answers have been aggregated and hence we have an overall rating of the enterprise.

!
!

2.2 TOOLKIT – A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES (ICE)

The Toolkit is a paper guide that collects specific reflections, guidelines and tools (formats) based on the most relevant management needs of cultural SMEs.

TARGETS

The Toolkit was written for:

ü Tutors of cultural enterprises

ü Cultural Managers

ü Cultural Entrepreneurs

MAIN GOAL OF THE OUTPUT

• How to emphasize the particular strengths of a cultural enterprise?

• How to avoid business failure risks due to certain starting point weaknesses?

The Toolkit for Cultural Enterprise Incubators aims to give a contribution to the former questions in terms of reflection, approach and managerial instruments.

in terms of reflection, approach and managerial instruments. Starting from the above listed needs, the Toolkit

Starting from the above listed needs, the Toolkit proposes specific tools to manage a cultural business. It is possible to identify 4 categories of tools:

MANAGEMENT TOOLS INNOVATION TOOLS Portfolio, Project Management, Problem Solving Buying Policies, Financial Plan,
MANAGEMENT TOOLS
INNOVATION
TOOLS
Portfolio,
Project Management,
Problem Solving
Buying Policies,
Financial Plan,
Training
STRATEGIC
COMMUNICATION
TOOLS
TOOLS
Business and
Marketing Plan +
Networking
Communication Strategy
and Plan,
Evaluation of Results

2.3 CREATER PILOT PROJECT OUTPUTS (CREATIVE GROWTH)

CREATER – CREATive growth in Emilia-Romagna (Crescita Creativa in Emilia-Romagna) - is a support path for creative businesses as a pilot project within the EU project Creative Growth. CREATER consisted of a six- month programme exclusively developed to support start-ups from the CCI sector based in Emilia-Romagna.

WHAT IS THE OUTPUT

CREATER supported start-ups through the following services:

Advisory services:

- Advisory services are mainly implemented during direct meetings (at least 3 during the period) and through back office activities (40 hours for each group)

- Advisory services include: A check-up of the companies’ needs, activity planning, direct support with specific issues (writing a business plan, participating in a call for proposals, communication etc.)

- The tool “Creative Enterprise Trajectory”

Training Sessions on Business Management

On-demand consultancy: 16 hours of consultancy with an external expert

Networking services

- Each company is associated with a “mentor start-up”

- Contact identification among possible customers and suppliers

- A one-day networking event “Create The Net” to enable start-ups to meet with peers and possible partners

- Inclusion of companies in the start-up community and in initiatives dedicated to them

TARGETS

New businesses in the creative sector based in Emilia-Romagna (i.e. music, entertainment, media, com- munication, cinema, audio-video, literature, design, amusement parks and visiting places)

New businesses in other sectors, but with an application in the creative sector

MAIN GOAL OF THE OUTPUT

Development of a support path for creative businesses based in Emilia-Romagna:

- Identification of companies’ needs

- Analysis of partners’ experiences and tools

- Development of a service offer

Test of the path on a selection of businesses (10 enterprises/projects)

Promotion of the selected enterprises in Emilia Romagna region through a public event

2.4 MODEL 2INS BUSINESS PLAN 2INS CLUSTERS WHAT IS THE OUTPUT

The output is a useful and ready-to-use model, that can be used by SMEs to assess their current status and identify development strategies.

TARGETS

The model business plan has been conceived for:

ü SMEs

MAIN GOAL OF THE OUTPUT

In order to anticipate changes envisaged by the market, to adapt to the changes that have already occurred, to help the company reduce the environmental impact, and to become more competitive, each company passes through a necessary evolution.

Why should a company which intends to innovate or internationalize prepare a business plan? Both to analyse its own project and to involve stakeholders in the process of changing, so as to search for partners or donors, etc. Subjects will try to understand the necessary information to express this change. In order to choose such necessary information, it is fundamental to understand the meaning of innovation and inter- nationalization processes, to identify which direction to go, and to foresee the future. We hereby identify these necessary pieces of information.

!
!

CHAPTER 3 CULTURAL ENTERPRISE, TERRITORY AND INDIVIDUALS

The business model for Cultural and Creative SMEs (henceforward C&C SMEs) is inspired by particular themes that make this issue very different in comparison with others industries.

In this case we need to consider how the business dimension could be merged with:

• the territory

• the individuals living in or visiting the territory

There are many factors that could play a relevant role, in terms of relations, added value, and innovation.

Cultural and Creative Products/Services can’t be assimilated into ordinary products/services. In this specific case, the central issue is not to satisfy a delimited requirement or to make functional a match between demand and offer. The true challenge for a cultural and creative business model is to stimulate and give value to a relation system.

The relationship between C&C SMEs, the territory and the individuals (living or visiting the territory), have to be a two-way relation. The output for everyone is something more than the pre-existing condition, linked to the experience.

An experience that produces new ideas, sensations, innovation for everyone (C&C, SMEs, Territory and individuals). However, this two-way relation is only potential, it needs to be activated.

The business model has to facilitate and contribute to the first business idea and the necessary factors to exploit this potential.

3.1. CULTURAL SMES AND TERRITORY

The Territory is composed of:

• institutions

• education system

• cultural resources

• other enterprises

• financing system

• enterprises/ideas incubators

• physical environment

• infrastructures

Examples of the two-way relation could be the following:

SUBJECT

THE C&C SMES COULD GIVE

THE C&C SMES COULD RECEIVE

institutions

• ideas/projects

• authorization

• people that manage or take care of public resources

• sponsorship

• activities that make the territory valuable and attract people or investors

• funds

• law opportunities

• recovery of degraded areas

enhancement of traditions, events or others public resources •…

• spaces/locations

involvement in events •…

education system

• ideas/projects

• skilled people

• trainers

• expertise

innovative education tools •…

• business assignments

• opportunity to experiment

 

research and development opportunities •…

cultural resources

• ideas/projects

• spaces/locations

• people that manage or take care of specific tasks

• inspirations

• activities that make the resource valuable and attract people or investors

involvements in events •…

recovery of degraded resources •…

other enterprises

• ideas/projects

• sponsorship

• expertise

• funds/equity

• innovative management tools

• supply opportunities

• innovative customer relation tools

• business assignments

new products/services/solutions •…

• expertise

• opportunity to experiment

 

• research and development opportunities

• distribution channels

access to new customers •…

enterprises/ideas

• quality and visibility if the C&C SME is innovative

• information

incubators

• expertise

• orientation

• opportunities to build new projects and partnerships with other networks of incubators, enterprises, etc…

• consultancy

• tools

• locations

• opportunity to test/experiment

• ideas

the reason in support of the incubator •…

• networking opportunities

• business acceleration

 

access to financing measures •…

financing system

• ideas/projects

• sponsorship

• expertise

• funds/equity

• innovative management tools

• business assignments

• innovative customer relation tools

• expertise

new products/services/solutions •…

• distribution channels

access to new customers •…

physical

activities that make the territory valuable and attract people or investors

recovery of degraded areas •…

• inspiration

environment

• location

scenarios for the delivery of C&C solutions •…

infrastructures

Innovation

• distribution channels

•…

• location

scenarios for the delivery of C&C solutions •…

There is also another intangible exchange that is worth exploiting: to give/receive inspiration and a unique identity. A C&C business model has to provide orientation about the needed elements to activate the long list of relations provided above.

3.2

CULTURAL SMES AND INDIVIDUALS

The C&C SME cannot be a separated entity, the relationship with the individuals is the first impetus for the business idea and the organization.

The individual is not simply a customer but is also a source of information, inspiration, ideas, and identity.

The individual that enjoys a C&C product/solution receives new experiences (or emotions) and gives expe- rience back to the SME, if that organization is able to take it.

This experience could become a new idea, if the SME is able to understand it and to get the weak signals.

In order to achieve continuous learning from individuals it is necessary to have tools, and first of all, knowl- edge. For a C&C SME, the expertise of a sociologist, a psychologist, and a cultural anthropologist is impor- tant. These are very particular roles for a business organization, but, in this case, they offer very useful knowledge about the local culture and its understanding, allowing us to predict or to supply new ways of expressions (new offers/solutions from the SME side).

This ideal relationship between C&C SMEs and Individuals also engenders a particular kind of performance measure: the well-being index.

It will be useful to provide the C&C business model with elements that can help the SME to identify how to

create and develop an effective relationship with the territory individuals (living and visiting people).

3.3 THE RELATION MANAGEMENT

Therefore, a C&C business model has to acknowledge all the elements that can create a new “Relation Box”

in the territory, with individuals and public and private organizations.

The drivers of this relation are:

• number of relations

• duration

• value

Number'of'' interac/ons'
Number'of''
interac/ons'
To#be# As#is# DURATION' VALUE' (Customer'Experience)'
To#be#
As#is#
DURATION'
VALUE'
(Customer'Experience)'

A C&C business model has to identify what the necessary factors for creating a relationship are. The man- agement of C&C business has to develop these 3 factors, in a balanced way.

CHAPTER 4 BUSINESS MODELS AND MANAGEMENT TOOLS

4.1 CULTURAL INCUBATORS BUSINESS MODEL, CULTURAL SMES AND MANAGEMENT TOOLS: A UNIQUE SYSTEM

The mission for a cultural incubator is to promote not only cultural enterprises or business, but to develop a cultural business system.

This system could be based on:

• enterprises

• private and public organizations

• territories

or could be the mixed result of a network composed of all these different entities.

In all these cases an incubator needs to:

advise a cultural SME in the phase of idea generation (by experiences, business models, and using a coaching approach)

support the SME in a more technical way during the start up phase (by business plan tools, management education, networking facilities, including financial networks)

accompany, pragmatically, the SME during the early management phase (by incubation, training, tutoring, tools)

facilitate the expansion phase, when the enterprise will leave the incubator because it is able to carry on cultural business independently (by activating the right strategic lever – e.g. internationalization, technology growth, business model evolution etc…)

The following picture shows in more detail this sequence, which can be defined as an “Incubation Model”:

Idea Generation • Business angels • Crowdfundig • Venture capitals Creativity • Public finding Rave
Idea Generation
• Business angels
• Crowdfundig
• Venture capitals
Creativity
• Public finding
Rave
Innovation\Internationalization support
• Design thinking
methodologies
• Playful multidisciplinary
workshops
• Entrepreneurial
assessment
•  team building (ex
managers, designers,
technicians, venture
partnerships)
• Psychological
assessment
• Team alignment
assessment
• Motivation support
Productt analysis
Boot-camp
(Max 6 months)
Quan%ta%ve)and)Qualita%ve)monitoring)and)Repor%ng)
)in)order)to)establish)and)mantaing)trust)between)SME)and)Incubator))
Sunstainabe Development– Resilience –Urban
regeneration

In order to be effective in developing each phase, this model has to use business models and tools containing the following requirements:

• customized for cultural business,

• able to give answers at all 4 stages (idea, start up, early stage, expansion)

• flexible,

• usable by enterprises and incubators tutors.

Our work and this report is focused on two contributions for a cultural incubator (and, obviously, for a cultural enterprise too):

• the business model for the cultural enterprise

• the management tools for the cultural enterprise

A deep understanding of the cultural enterprise business model is a pre-requisite for the cultural incubator activity.

By this strategic model the incubator can make it possible to understand the following:

INCUBATION

   

STAGE

CONTRIBUTION FROM CULTURAL BUSINESS MODEL

MANAGEMENT TOOLS

Idea

• Better comprehension of cultural ideas proposed by aspiring entrepreneurs (are they “simply ideas” or “business ideas”?) • Possibility of selecting enterprises to incubate with higher syner- gy. By means of various kinds of collaborations, a company could reinforce the business model of other incubated enterprises

• selection of appropriate management tools to satisfy business model requirements

generation

Start up

clear identification of critical management areas to establish

• selection of appropriate management tools to satisfy business model requirements

Early Stage

clear identification of critical management areas to reinforce

• selection of appropriate management tools to satisfy business model requirements

Expansion

clear identification of critical management areas to develop

• selection of appropriate management tools to satisfy business model requirements

After dealing with these strategic matters, it is possible to reach a good definition of what the enterprise business model is, at the moment, and has to be, in the future.

To be aware of this perspective, it must be allowed for the enterprise and for the tutor, to select the right management tool in order to establish, reinforce and develop specific business model elements.

The following picture describes the relationships among the incubator business model, enterprise business model, and management tools.

It is possible to identify 3 levels: 1st level The incubator business model is the

It is possible to identify 3 levels:

1st level

The incubator business model is the “container”, the ideal micro-environment in which the enterprise could develop from idea stage to development stage.

2nd level

The cultural SME business model, is the way to understand the idea, its soundness, the path from the stage idea to the following stages. The enterprise business model helps the incubator’s tutor focus on real strategic requirements.

It is also a perspective from which to analyse the cultural businesses/enterprises to gather into the incuba-

tor. By this it could be possible to create a cultural system and not only “to rent spaces” to several enter- prises. The objective is to select SMEs with “synergizable” business models.

3rd level

The management tools represent the operative level, which must be activated only after a clear understand- ing about business models requirements in order to select the appropriate tool. The tool is simply a tool, it can produce results only if it is used to provide solutions for the right need.

A

summary of this approach could be:

Incubator business model as general container and road map

Enterprise business model as priority perspective for the incubator to understand cultural business status and identify ways to develop it.

management tools as instruments (for tutors and enterprises) to reach the required development of the enterprise business model

In

the following sections of this book a customized business model for cultural enterprise will be presented.

CHAPTER 5 CULTURAL SMES BUSINESS MODELS

5.1 A BUSINESS MODEL FOR CULTURAL AND CREATIVE SMES

What is a business model? A good answer is the following:

!THE$ARCHITECTURE$THAT$ENABLES$A$SME$TO$

! ACQUIRE(
!
ACQUIRE(
CREATE(
CREATE(

!VALUE(

DELIVER(
DELIVER(

What is Value?

EMPLOYEE

SATISFACTION

PROFITS FOR SMEs

(

What is Value? EMPLOYEE SATISFACTION PROFITS FOR SMEs ( SOLUTIONS FOR CUSTOMERS The need to have

SOLUTIONS FOR CUSTOMERS

The need to have a sound business model could be better specified by the following points:

• to have a cultural resource does not mean having a (cultural) business idea

• to have a business idea does not mean having done business

These points are especially true for cultural businesses, because the specific characteristics of C&C SMEs can generate needs to manage:

of C&C SMEs can generate needs to manage: It is possible to propose useful management tools

It is possible to propose useful management tools in order to manage these needs, but it is more useful to prevent failure risk, from the very early stages of a cultural/creative enterprise, by focusing on a detailed business model.

An interesting approach to this is made by the Business Model Canvas.

This approach proposes a strategic management template for developing new business models.

It is a visual chart with elements describing a firm’s value proposition, infrastructure, customers, and finances.

It assists firms in aligning their activities by illustrating potential trade-offs.

The Business Model Canvas was initially proposed by Alexander Osterwalder based on his earlier work on Busi- ness Model Ontology. Since the release of Osterwalder’s work, new canvases for specific niches have appeared.

In this document we developed a cultural version. The aim is to create a framework for entrepreneurs and tutors, easy to use but, at the same time, covering all the strategic keys that a cultural/creative SME has to understand to start with a business or develop it.

The Business Model for C&C SMEs, proposed in the following pages, is a way to create cultural and creative business ideas:

• sound,

• balanced,

• and aware

The business model will help entrepreneurs and tutors define specific + strategic + critical factors enabling cultural SMEs to acquire, create, and deliver value. There are seven factors:

1. Value Proposition

2. Customers

3. Customer Relationships

4.

Channels

5. Key activities

6. Key resources

7. Key partners

Factors 2, 3, 4 are related to revenue creation. Factors 5, 6, 7 generate costs or are related to cost optimization.

5, 6, 7 generate costs or are related to cost optimization. Alexander Osterwalder Business Model Canvas

Alexander Osterwalder Business Model Canvas

In the following section of this document for each strategic key factor of the business model, we will provide:

• theory “pills”

• checklists helping to define the contents of key factors

• links to tools that allow one to pass from the Business Model level (strategic thinking) to the related Management Tools level

5.2 BUSINESS MODEL KEY FACTORS: CUSTOMERS

!
!

A business model may define Customer Segments. An organization must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understanding of specific customer needs.

The customer needs will, of course, be strictly linked to Value Propositions but also have a very deep impact not only on communication and distribution policies, but also on internal choices, like Key Activities and Resources.

The careful definition of the Customer targets will influence the overall business model.

In order to reach an effective relationship with the territory, the C&C SME could have a good part of its customer portfolio comprised of subjects located in its territory.

It is possible to assess if one’s business model is sound enough with regard to Customer Segments with the help of the following checklist.

How to build a sound and aware Business Model for a cultural and creative business:

Key Factor 1 - Decision About Customers:

   

MAYBE,

 

BUT IT

NOT THE

WOULD BE

CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. Are we able to give to the customer new solutions? Can we discover unsatisfied customer needs? (Is our offer related to new usage circum- stances for cultural resources? Is our offer related to new use functions for cultural resources? Are we working in a growing trend business?)

     

2. Are they willing to pay for our offer? Are they willing to pay enough? Will they pay at least 30% more than our “production” cost? Which aspects of our offer are really valuable? Are we really able to make intangibles profitable?

     

3. They could find other ways to satisfy their cultural/creative need (sub- stitutes product/services)? Are we competitive/different in other ways? Also in the medium-long term?

     

4. Have we chosen a good customer portfolio? If a target group would have bad performance could another target group balance it? When a target group is in a low sales season, is another one in a high sales season? If a target group has a long payment cycle, does another one have a short payment cycle?

     

5. Have we chosen a good customer portfolio? Is the strategy that we have to carry on in order to satisfy a target group compatible with other strat- egies planned for other target groups?

     

6. Have we chosen a good customer portfolio? Is it possible to exploit syn- ergies? Can we reach more than one target group with the same com- munication or distribution channel?

     

7.

Have we created a good customer portfolio with subjects located in the territory? (e.g. institutions, education system, enterprises, individuals)

     

Are you satisfied with your Customer Segments? Is this a strong point of your business model? Do you need to reinforce any aspect of it? If necessary, take a look at the following management tools:

Management Tools Useful to identify Customer Segments

 

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT“– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

In order to estimate the economic contribution to the company income generated by customers.

3.

Long Financial cycle

3.3

Business plan

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs.

3.

Principal component loading matrix for technology acquisition and exploitation

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs.

9.

Marketing capability

9.1

Relationship of management with major customers

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs and identify new international segments.

9.

Marketing capability

9.2

Knowledge of different market segments

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess specific customer needs and identify new markets.

3.

Market Perspectives

3.1

Analysis of the size and trend of the reference market

 

5.3 BUSINESS MODEL KEY FACTORS: VALUE PROPOSITION

!
!

The business model has to describe the bundle of cultural and/or creative products and services that create value for a specific Customer Segment.

The Value Proposition is the reason why customers turn to one company rather than another.

It solves a customer problem or satisfies a customer need.

Each Value Proposition consists of a selected bundle of products and/or services that cater to the require- ments of a specific Customer Segment. In this sense, the Value Proposition is an aggregation, or bundle, of cultural/creative benefits that a company offers customers.

It is possible to assess if your business model is sound enough with regard to Value Proposition with the help of the following check list.

How to build a sound and aware Business Model for cultural and creative business:

Key Factor 2 - Decision about Value Proposition:

   

MAYBE,

 

BUT IT

NOT THE

WOULD BE

CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. Often the value proposition in a cultural and creative business is much too intangible and in some cases difficult to understand. Is your value proposition easy to understand? Can it be described in a short sentence?

     

2. Are you the first in the market with regard to a relevant characteristic?

     

3. Is the value proposition different from competitors’ propositions?

     

4. Do you have enough of an advantage over the first competitor?

     

5. Can you defend, in the long term, your advantage? Can a competitor fill the gap in the short term?

     

Are you satisfied with your Value Proposition? Is this a strong point of your business model? Do you need to reinforce any aspect? If necessary, take a look at the following management tools:

Management Tools useful for defining a Value Proposition

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT“– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- PRISES – ICE 1- Cultural Background

To reflect on the general framework upon which unique value propositions will be founded.

1.1

cultural background

“TOOLKIT“– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- PRISES – ICE 1 - Cultural Background

To have a better understanding of how to create value.

1.2

start up

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs.

1.

Principal component loading matrix for an internal technological environment.

1.1

Technology is regarded as a key success factor.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs.

1.

Principal component loading matrix for an internal technological environment.

Top management actively participates in decisions related to techno- logical issues.

1.2

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

In order to develop specific innovation requirements.

1.

Principal component loading matrix for an internal technological environment

1.3

The budget for technology development is continuously improved.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop specific innovation requirements.

1.

Principal component loading matrix for an internal technological environment.

1.4

Technology strategy supports business strategy.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop specific innovation requirements.

1.

Principal component loading matrix for an internal technological environment.

1.5

Company targets are set to be technology leaders in the field.

Computerized “Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop specific innovation requirements.

1.

Principal component loading matrix for an internal technological environment.

1.6

Technology strategies of the company are shared and applied by every

unit of the company.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

1.7

Organizational structure is designed in such a way that it encourages

decision making. Jobs are designed to encourage autonomy in teamwork.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop specific innovation requirements.

1.

Principal component loading matrix for an internal technological environment.

1.9

There are interdepartmental teams assigned for innovation in products

and processes.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

1.10

Employees are authorized to make their own decisions in the planning

and control process of their activities.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

Company culture encourages technology development and application and regards it as a strategic factor.

1.11

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

1.12

The company shows learning organization characteristics by creating,

sharing, applying and transferring knowledge as well as learning from suc- cess and failure.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

1.13

Communication channels are open, clear and safe for ideas, decisions and

knowledge especially between R&D, top management and manufacturing.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

1.14

Change is regarded as an opportunity rather than a threat. The organiza-

tion has the structural and cultural capability to predict and adapt to changes in the future.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop specific innovation requirements.

1.

Principal component loading matrix for an internal technological environment.

1.15

Publications and scientific activities such as congresses, symposiums,

etc. related to technological issues are followed and participated in.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1.

Principal component loading matrix for an internal technological environment.

1.16

Company encourages diversification in the skills of its employees.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify develop- ment and improvement strategies.

4.

Innovation factors inventory.

4.2

Current state of the project (early stages/final stages/well established but

not yet in its final stages/required to develop unfamiliar working methods)

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

4.

Innovation factors inventor.

4.6

The project can be divided into stages needing different resources and skills.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

4.

Innovation factors inventory.

4.8

Characteristics of the team members: they have a good understanding of

their personal differences/each other’s personal needs/a shared vision of the team’s future achievements/a clear sense of shared purpose/pull together to deal with unexpected problems/are willing to take responsibility for making new ideas work/are committed to making new ideas work/use personal con- tacts to help the team in various ways/have contacts outside the team that are helpful/ good at learning from its mistakes/ talk things over constructively when things go wrong.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

4.

Innovation factors inventory.

4.9

Characteristics of team leadership: it tends to be inspirational/creative/

result-oriented/it concentrates on monitoring progress

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

4.

Innovation factors inventory

4.10 Characteristics of the team: it is creative/imaginative at work/produces knowledge that did not exist before the team was formed/is concerned with knowledge management/is productive/it produces good quality of product or service for its customers.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

5.

Learning capabilities.

5.1

Technology development trends/ capacity to assess technologies relevant

to a firm’s business strategy.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters) Learning capabilities.

To assess the current status and identify develop- ment and improvement strategies.

5.2

Work teams are encouraged to identify opportunities for improvement/

the firm’s core competencies and matching technological capabilities to mar- ket needs

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters) Learning capabilities.

To assess the current status and identify devel - opment and improvement strategies.

Computerized “Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

5.

Learning capabilities.

5.3

SME assimilates acquired knowledge/learns the lessons of experiences/passes

lessons learned across boundaries and time.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

5.

Learning capabilities

5.4

The SME cultivates learning readiness and invests in learning/pays

attention to tacit knowledge.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters) R&D capabilities

To assess the current status and identify devel - opment and improvement strategies.

6.1

Existence of mechanisms to encourage and reward inventiveness and

creativity/for transferring technology from research to development.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify development and improvement strategies.

6.

R&D capabilities.

6.2

Existence of functions (departments) involved in concept development

and screening/clear project targets, project phase standards and project managing regulations/relevance of an R&D plan to the corporate plan.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

6.

R&D capabilities

6.3

Application of advanced designing methods, such as reengineering.

Computerized “Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

6.

R&D capabilities.

6.4

Presence of established protocols such as design for manufacture,

design for customer use.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies

11.

Strategy planning capability.

Ability to identify internal strengths and weaknesses/external oppor- tunities and threats.

11.1

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies

11.

Strategy planning capability.

11.2

Goal clarity.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

11.

Strategy planning capability.

11.3

Availability of a clear plan—a road map with measurable milestones.

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess specific innovation customer needs and to develop internationalization requirements.

2.

DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALI-

ZATION PLAN.

 

2.1

Detailed description of the innovation plan (Description of the innova-

tion project/Objectives of the innovation project/Origin of the innovation).

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess specific innovation customer needs and to develop internationalization requirements.

2.

DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALI-

ZATION PLAN.

 

2.2

Detailed description of the internationalization plan (Description of the

internationalization project/Objectives of the internationalization project/ Origin of the internationalization).

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs.

1.

Principal component loading matrix for an internal technological environment.

1.1

Technology is regarded as a key success factor.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation customer needs.

1.

Principal component loading matrix for an internal technological environment

Top management actively participates in decisions related to techno- logical issues.

1.2

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Planning and implementation of the support path "CREATER".

To get inspired by the content and implemen - tation aspects before launching a support pro- gramme for CCI start-ups.

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Planning and implementation of the support path "CREATER".

To get inspired by the content and implemen - tation aspects before launching a support pro- gramme for CCI start-ups.

5.4 BUSINESS MODEL KEY FACTORS: DISTRIBUTION CHANNELS

!
!

The Distribution Channels describes how a company reaches its Customer Segments to deliver a Value Proposition.

Distribution, and sales channels, make up a company’s interface with customers. Channels are customer touch points that play an important role in the customer experience.

The distribution channel represents the access point for the service and/or to the product; it is the way to deliv- er your offer. Without a distributing channel your customer cannot have or cannot use your product/service.

Examples of distribution channels in the cultural and creative business could be internet, other mobile devices, a sales agency, help desk or other counters in the territory, corners or offices in a cultural site, etc.

Several elements in the territory could represent a distribution option. For example: other enterprises could allow access to their customers, but also the physical environment could be the place where to distribute the product/service and/or local infrastructure (routes, buildings, digital networks, etc…) could allow one to reach their customers.

It is possible to assess if your business model is sound enough with regard to Distribution Channels with the help of the following checklist.

How to build a sound and aware Business Model for cultural and creative business:

Key Factor 3 - Decisions about Distribution Channels:

   

MAYBE,

 

BUT IT

NOT THE

WOULD BE

CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. The channels that you use are specific for different customers?

     

2. Are the channels able to deliver the Value Proposition to customers in an effective way?

     

3. Are the channels you use able to reach the customers in the right time?

     

4. Do you reach enough places/do purchase situations reach your channels?

     

5. Does the distribution channel have a good influence on the cash cycle? Or is there an important delay risk? Does the customer first pay intermediaries and then intermediaries pay your company? Is solving problems possible?

     

6. Do you have enough control over distribution channels? Or do you have any constraints from public authorities or owners of cultural resources?

     

7. Are we able to exploit the distribution opportunities of the territory (routes, buildings, digital networks, physical environment, etc…)

     

8. Is the channel choice efficient or expensive?

     

Are you satisfied with your Distribution Channels? Is this a strong point of your business model? Do you need to reinforce any aspect? If necessary, take a look at the following management tools:

Management Tools Useful for Distribution Channel policies

 

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- PRISES – ICE

In order to estimate the economic contributions to company income generated by distribution channels.

3.

Long Financial Cycle

3.3

Business Plan

 

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness development and improvement strategies.

1.

Principal component loading matrix for an internal technological environment.

1.13

Communication channels are open, clear and safe for ideas, decisions and

knowledge, especially between R&D, top management and manufacturing.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness development and improvement strategies.

1.

Principal component-loading matrix for an internal technological environment.

1.15

Publications and scientific activities such as congresses, symposiums, etc.

related to technological issues are followed and participated in.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness and readiness towards international markets.

Principal component loading matrix for technology acquisition and ex- ploitation.

3.

3.3

The company has the ability to commercialize the developments made

in products and process through suitable marketing methods.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop internationalization and innovation requirements.

7.

Resources allocation capability

7.4

Full use of external technologies.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess specific innovation trends.

7.

Resources allocation capability

7.5

Understanding competitors' core technology competence

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess needs and to develop specific innovation requirements

7.

Resources allocation capability

7.6

Adapting self-technology levels according to changes in the external en-

vironment.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness and readiness towards international markets.

9.

Marketing capability

9.1

Relationship management with major customers.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness and readiness towards international markets.

9.

Marketing capability

9.2

Knowledge of different market segments.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness and readiness towards international markets.

11.

Strategy planning capability

11.4

Adaptability and responsiveness of the company to the external en-

vironment.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness and readiness towards international markets.

12.

Barriers of internationalization

12.9

Inability to contact potential overseas customers.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To communicate openness and readiness towards international markets.

13.

Internationalization enhancers

13.4 Businesses are able to register with authorities through a simple and inexpensive system, preferably by remote access through the Internet. Busi- ness licensing requirements are minimized, and when they are enforced, the objective is to safeguard the health and safety of consumers and labour rather than being a source of revenue for local and/or central governments.

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To communicate openness and readiness to - wards international markets.

2.

DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALI-

ZATION PLAN

 

2.2

Detailed description of the internationalization plan (Description of the

internationalization project/Objectives of the internationalization project/ Origin of the internationalization)

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To communicate openness and readiness to - wards international markets.

3.

MARKET PERSPECTIVES

3.1

Analysis of the size and trend of the reference market

 

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

4.

USE OF INNOVATION SUPPORT SERVICES

4.1

Acquisition of services provided by qualified subjects/professional

 

performances

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

4.

USE OF INNOVATION SUPPORT SERVICES

4.2

Acquisition of training services

 

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

INVESTMENTS IN PRODUCTIVE CLUSTERS OR BY SMEs WITHIN DISTRICTS

7.

5.5 BUSINESS MODEL KEY FACTORS: CUSTOMER RELATIONSHIPS

!
!

The Customer Relationship factor describes the types of relationships a company establishes with specific Customer Segments.

A company should clarify the type of relationship it wants to establish with each Customer Segment. Rela-

tionships can range from personal to automated.

The Customer Relationships called for a company’s business model to deeply influence the overall customer experience.

Customer relationships are made of communications that the company sends to the customers and also

conducted via means of communication that the customers can use to be in touch with the enterprise. It

is a two-way communication process.

C&C SMEs could use a large range of communication means: web, social media, fairs, events, printings,

phones, front line people, etc.

It is possible to assess if your business model is sound enough with regard to Customer Relationships via the following check list.

How to build a sound and aware Business Model for a cultural and creative business:

Key Factor 4 - Decisions about Customer Relationships:

   

MAYBE,

 

BUT IT

NOT THE

WOULD BE

CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

 

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. Your relationship media/methods are able to catch the attention of your customers?

     

2. Your relationship media/methods are able to guarantee the comprehension of your value proposition?

     

3. Your relationship media/methods are able to stimulate the right actions in your customers (purchase first of all)?

     

4. Your relationship methods guarantee solid support to the customer during the service/product usage?

     

5.

Your relationship methods guarantee good after sales support to the customer?

     

6. Your relationship methods guarantee a continuous and tailored dia- logue with customers, during the customer life cycle?

     

Are you satisfied with your customer relationships? Is this a strong point of your business model? Do you need to reinforce any aspect? If necessary, take a look at the following management tools:

Management Tools Useful to developing Customer Relationships

 

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provide a general framework useful to define, plan and control a communication strategy.

4.

Intangible capital

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify develop- ment and improvement strategies.

3. Principal component loading matrix for technology acquisition and exploitation.

3.3

The company has the ability to commercialize the developments made

in products and process through suitable marketing methods.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify develop- ment and improvement strategies.

9.

Marketing capability

9.1

Relationship management with major customers

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

9.

Marketing capability

9.2

Knowledge of different market segments

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

12.

Barriers of internationalization

12.9 Inability to contact potential overseas customers

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To assess the current status and identify devel - opment and improvement strategies.

3.

MARKET PERSPECTIVES

3.1

Analysis of the size and trend of the reference market

 

5.6 BUSINESS MODEL KEY FACTORS: KEY RESOURCES

!
!

Every business model requires Key Resources. These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues.

Key resources can be physical, technological, financial, intellectual, or human. Key resources can be owned or leased by the company or acquired/shared from key partners.

A cultural and/or creative enterprise focuses on human resources. Their knowledge and skills, but also their motivation and engagement level, are crucial for success.

In the territory a lot of key resources, material and immaterial can be found: incubators could offer orienta- tion, tools, locations, the financing system could make funds available, enterprises and the education sys- tem could be a source of knowledge, and in the territory there are cultural or natural resources that could be the focal point for the C&C SME.

It is possible to assess if your business model is sound enough with regard to Key Resources via the following check list.

How to build a sound and aware Business Model for cultural and creative business:

Key Factor 5 - Decision about Key Resources:

   

MAYBE,

 

BUT IT

NOT THE

WOULD BE

CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. Do you have enough skilled people in order to deliver to your custom- ers the required amount of product-services? Is it easy to acquire others skilled resources if necessary?

     

2. Do you have enough specialized tools (sw, hw, machinery, etc…) in order to deliver to your customers the required amount of product-services? Is it easy to acquire others tools if necessary? In particular, do you have tools to track the customer experience?

     

3. Do you have the necessary access (possibility to manage) to cultural resources that distinguish your offer?

     

4. Do you have enough funds in order to deliver to customers the required amount of product-services? Is it easy to acquire funds or new associates if necessary?

     

5. Are we able to involve in the business model territory key resources? (e.g. incubators, financing systems, cultural and natural resources, etc )

     

Are you satisfied with your Key Resources?

Is this a strong point of your business model?

Do you need to reinforce any aspect? If necessary, take a look at the following management tools:

Management Tools Useful to develop Key Resources

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provide a general overview about a managerial approach to develop organizational factors.

5.

Management approach

5.1

Management approach

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provide a general overview about a managerial approach to develop organizational factors.

5.

Management approach

5.2

Customer management and networking provider

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provide a general overview about a managerial approach to develop organizational factors.

5.

Management approach

5.3

Networking tools

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

Principal component loading matrix for an internal technological envi- ronment.

1.

1.14

Change is regarded as an opportunity rather than a threat. The organ-

ization has the structural and cultural capability to predict and adapt to changes in the future.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

Principal component loading matrix for an internal technological envi- ronment.

1.

1.16

The company encourages diversification in the skills of its employees.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

10.

Organising capability

10.1

Flexibility in adjusting the organization structure

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

10.

Organising capability

10.2

Autonomy of sub-units

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

10.

Organising capability

10.3

Ability to handle multiple innovation projects in parallel

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

10.

Organising capability

10.4 Coordination and cooperation of R&D, marketing and manufactur- ing.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

10.

Organising capability

10.5

Communication between suppliers, company and major customers

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

10.

Organising capability

10.6

High-level integration and control of the major functions with the company

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To assess the current status and identify develop- ment and improvement strategies.

10.

Organising capability

10.7

Mechanisms to track the progress of innovation projects

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters) 12. Barriers of internationalization

To assess the current status and identify develop- ment and improvement strategies.

12.3

Quality of enterprise's products and/or services; Specifications of the

enterprise's products and/or services; Price of the enterprise's products and/or services.

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop a new mind-set within the organization.

1. Principal component loading matrix for an internal technological environment.

1.14

Change is regarded as an opportunity rather than a threat. The organ-

ization has the structural and cultural capability to predict and adapt to changes in the future.

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Planning the support path "CREATER"

CREATER was launched in collaboration with other regional initiatives in order to optimise resources for the sake of CCI start-ups.

5.7 BUSINESS MODEL KEY FACTORS: KEY ACTIVITIES

!
!

The Key Activities factor encompasses the most important things a company must do to make its business model work

Every business model calls for a number of Key Activities. These are the most important actions a company must take to operate successfully.

As Key Resources, they are required to create and offer a Value Proposition, reach markets, maintain Cus- tomer Relationships, and earn revenue.

For C&C SMEs key activities could, first of all, be those related to innovation, or project management, or networking management, etc

A set of key activities have to be added to the business model in order to track, understand and develop positive relations with individuals located or visiting the territory.

It is possible to assess if your business model is sound enough with regard to Key Activities via the following checklist.

How to build a sound and aware Business Model for a cultural and creative business:

Key Factor 6 - Decision about Key Activities:

   

MAYBE,

 

BUT IT

NOT IN

WOULD BE

THIS CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. Do you dedicate enough time to the creative process? (How many new ideas, projects do you introduce successfully every year?)

     

2. Are the project management activities satisfying? Are you able to manage the number of projects necessary to satisfy customers and make the business profitable?

     

3. Are you satisfied by the networking activities required in order to develop or stabilize your business?

     

4. What is the first requirement that your customer ask to your enterprise (e.g.

     

communication, accessibility, speed, cheapness, 360° solutions, etc

)?

Do you

dedicate enough time to developing\stabilizing the performances related to the first requirement of your customers?

5. Are the activities related to customer relations satisfying? In particular, are we able to track, understand and develop the customer experiences from different points of view? (e.g. sociological, psychological, anthropological point of view)

     

6. People are the success keys for a cultural and creative SME. Are you satisfied with your people management and employee satisfaction?

     

Are you satisfied with your Key Activities? Is this a strong point in your business model? Do you need to reinforce any aspect? If necessary, take a look at the following management tools:

Management Tools Useful for developing Key Activities

 

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE 2- Uniqueness of the project 2.3.1. Project Management

Allows us to define every single activity needed in order to reach the objectives.

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provides a general overview about a managerial ap- proach to develop the key activity in the organization.

5.

Management approach

5.1

Management approach

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provides a general overview about a managerial approach in developing the key activity in the or- ganization.

5.

Management approach

5.2

Customer management and networking provider

 

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provides a general overview about the managerial approach to develop the key activity in the organ- ization.

5.

Management approach

5.3

Networking tools

 

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To develop and improve innovation strategies.

2.

DESCRIPTION OF THE INNOVATION AND/OR

INTERNATIONALIZATION PLAN

2.1

Detailed description of the innovation plan (Description of the innova-

tion project/Objectives of the innovation project/Origin of the innovation)

MODEL 2INS BUSINESS PLAN (2INS Clusters) 1. MARKET PERSPECTIVES 3.2 Demand and competitors analysis

To develop and improve innovation strategies; to identify new markets.

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Implementation of the support path "CREATER"

The programme was developed after key preliminary

actions to prepare the ground (research on CCI start- up needs, and on similar actions in other regions and

 

in the development of a local partnership), launch of

a call for applications, programme implementation

and collection of outputs and analysis.

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Monitoring and Promoting the support path "CREATER”

A

key aspect was the promotion of selected start-

ups and gathering feedbacks with the aim of devel- oping similar actions with other funded sources. A similar programme has, for instance, been imple- mented in the audiovisual sector.

5.8 BUSINESS MODEL KEY FACTORS: KEY PARTNERS

sector. 5.8 BUSINESS MODEL KEY FACTORS: KEY PARTNERS The Key Partnerships factor comprises the network of

The Key Partnerships factor comprises the network of suppliers and partners that make the business model work.

!

Companies forge partnerships for many reasons, and partnerships are becoming a cornerstone of many busi- ness models. Companies create alliances to optimize their business models, reduce risks, or acquire resources.

We can distinguish between four different types of partnerships:

• Strategic alliances between non-competitors

• Competition: strategic partnerships between competitors

• Joint ventures to develop new businesses

• Buyer-supplier relationships to assure reliable supplies

Cultural and creative business models usually have a large series of opportunities to enlarge their offer to other customers/markets. Especially for SMEs, in order to access these opportunities, it is necessary to have partners. Key partnerships allow one to develop the business without growing the enterprise dimensions or without an increase in investments. Key partnerships also allow one to develop the business while maintaining flexibility.

Partnerships could very well be the most important way to develop relationships with the territory. As pre- sented previously in this document, there are many subjects in the territory that could have a relationship with the C&C SME. Subjects include: institutions, the education system, the cultural resource management system, others enterprises, incubators, financing system, infrastructures system.

The number and the effectiveness of these relations are strictly linked with the success chances of a C&C SME.

It is possible to assess if your business model is sound enough about Key Partners via the following check list.

How to build a sound and aware Business Model for a cultural and creative business:

Key Factor 7 - Decision about Key Partners:

   

MAYBE,

 

BUT IT

NOT IN

WOULD BE

THIS CASE

BETTER TO

OR NOT

REINFORCE

ABSOLUTELY

KEY QUESTIONS

ENOUGH

THIS POINT

YES

1. Do you have all the necessary partnerships in order to fill enterprise gaps about key factors of the business model?

     

2. Is it easy to replace a partner if you need to?

     

3. Do you have the key factors that your partners need in order to fill their business model gaps?

     

4. Do the partners need you to reach their objectives? (or can they reach the final customers without your contribution?)

     

5. Are we able to establish a large number of effective and solid relations with subjects located in the territory? (e.g. institutions, the education system, cultural resources management system, other enterprises, incubators, the

     

finance system, infrastructure system, etc

)

Are you satisfied with your Key Partners? Is this a strong point of your business model? Do you need to reinforce any aspect? If necessary, take a look at the following management tools:

Management Tools Useful for developing Key Partnerships

MANAGEMENT TOOLS

WHY USE IT?

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- PRISES – ICE 1- Cultural Background

It shows the network system for a SME.

1.3

Strategy formulation

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop relations with the territory.

7.

Resources allocation capability

7.6

Adapting self-technology level according to changes in the external

environment

Computerized Innovation and Internationalization Capacity Audit Methodology for SMEs (2INS Clusters)

To develop relations with the territory.

12.

Barriers of internationalization

12.7 Identifying foreign business opportunities/Obtaining reliable foreign representation/Developing new products for foreign markets

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To develop relations with the territory.

2.

DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALIZATION

PLAN

2.2

Detailed description of the internationalization plan (Description of the

internationalization project/Objectives of the internationalization project/ Origins of the internationalization)

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To develop relations with the territory.

4.

USE OF INNOVATION SUPPORT SERVICES

4.1

Acquisition of services provided by qualified subjects/professional

performances

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To develop relations with the territory.

4.

USE OF INNOVATION SUPPORT SERVICES

4.2

Acquisition of training services

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To develop relations with the territory.

6.

INVESTMENTS IN PRODUCTIVE CLUSTERS OR BY SMEs WITHIN

DISTRICTS

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Planning the support path "CREATER"

CREATER was developed after a partnership with

the

Municipality of Bologna and with the backing

 

of the Region Emilia-Romagna together with the

development of non formal partnerships with key

CCI

actors such as Cineteca di Bologna, Romag-

na Creative District and with other institutions, like the Province of Bologna.

5.9 BUSINESS MODEL: COSTS AND REVENUES

!
!

A sound Business Model has to be sustainable. If the 7 key factors exist and are well mixed, the enterprise has satisfied the pre-requisites to stay in the market in a successfully way.

The decisions about the 7 Business Model Key factors, will generate the fundamental structure of revenues and costs. At this stage (not before) it is correct to evaluate if there is a good profitability perspective.

Management Tools Useful to estimate Costs and Revenues

MANAGEMENT TOOLS

 

WHY USE IT?

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

To understand how to make efficient the product/customer/markets portfolio

- Uniqueness of the project 2.3.2 portfolio management

2

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Provide tools to calculate the optimum buying decision

- Uniqueness of the project 2.3.3. Buying policies

2

“TOOLKIT “– A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES – ICE

Show business plan logic, schemes and formats.

3.

Long Financial cycle

3.3

Business plan

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To evaluate financial perspectives.

7.

SEAT

7.2

Economic-financial forecast

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To evaluate financial perspectives.

8

INVESTIMENT PLAN

8.1

Detailed investments

MODEL 2INS BUSINESS PLAN (2INS Clusters)

To evaluate financial perspectives.

7.

SEAT

7.2

Economic-financial forecast

CREATER PILOT PROJECT OUTPUTS (Creative Growth) Planning the support path "CREATER"

Provides an example of a support programme

that

was developed with a very limited budget.

CHAPTER 6 FROM BUSINESS MODEL TO BUSINESS PLAN

Link to the collection of selected management tools

“TOOLKIT “

A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTERPRISES

ICE

http://www.ice-med.eu/images/stories/results/livro2.pdf

MODEL 2INS BUSINESS PLAN

2INS Clusters

http://www.2insclusters.net/attachments/article/18/2INS%203%20

4%20c%20SB%20business%20plan.pdf

CREATER PILOT PROJECT OUTPUTS

Creative Growth

http://www.creative-growth.eu/Publications/tabid/1289/Default.aspx

CHAPTER 7 CAPITALIZATION RESULTS

7.1 FORMER OUTPUTS’ CAPITALIZATION

The project objective was to capitalize on the outputs produced by the former projects and to define new ideas for a new model of cultural incubator.

The 4 outputs to be capitalized upon were quite different in terms of them having:

• different support (digital tools, paper guides),

• different style,

• different focus (strategy, planning, day-to-day management, experimentation)

BUSINESS''

MODEL'

RELATION'BOX'

MODEL'

(territory(and(individuals)(

To#be# As#is# DURATION' VALUE' (Customer'Experience)' Number'of'' interac/ons'
To#be#
As#is#
DURATION'
VALUE'
(Customer'Experience)'
Number'of''
interac/ons'
Number'of'' interac/ons' RELATED' BUSINESS'TOOLS' exis%ng(outputs(by(

RELATED'

BUSINESS'TOOLS'

exis%ng(outputs(by(

former(projects( ' !
former(projects(
'
!

CLUSTERS''

INTEGRATE(SYNERGIC(BUSINESS(MODELS(

(

BUSINESS'TOOLS'

AGGREGATION'AND'RELATION'

GOVERNANCE'

In each output it was possible to find synergistic elements and the possibility of mixing them in order to obtain something that could be defined as more than a simple sum of its parts.

This Business Model is a capitalized “product” because:

STARTING POINT

CAPITALIZATION RESULT

Different outputs from different projects

A single integrated system

Separated strategic factors, planning approach, day by day management tools, pilot project.

A rational path from strategy to implementation, with a clear thread and evident links among the outputs.

Each output gives a specific guideline to the cultural entrepreneur.

A single sequence, an ordered structure that represents a complete guide.

First drawing up of specialized contents

In-depth treatment of the contents.

Adding of new customized elements for the cultural and creative business.

 

Enrichment of the methodological contribution via the use of the 9 factors classification of Osterwalder’s Business Model Canvas as a general framework. Each factor was filled with the contents of former project outputs integrated with new customized elements.

Adding a new methodological contribution for the cultural and creative SMEs, about the fundamental importance of creating effective relationships with territory and individuals.

Single enterprise use (essentially)

Not only for a single SME use Suitable for collaborative use

7.2 INCUBATORS’ CAPITALIZATION LINES

The capitalization results listed above represent an important improvement opportunity for cultural incubators.

The proposed business model for cultural and creative SMEs is not only a tool, it is also able to favour the evolution of cultural incubators model.

The cultural incubators now no longer have four separated tools, but a single structure to be used to:

• stimulate the business idea generation process, in a new effective way,

• evaluate how sound a cultural\creative entrepreneur’s approach to the business is,

• support creative and cultural SMEs via synergistic tools, from ideas to day-to-day management,

• improve and direct the creative and cultural business towards two key concepts:

- to build sound and value-added relations with the territory and individuals in the territory,

- to aggregate single competences and enterprise value with other cultural and creative SMEs.

These last two points seems to represent a new way for cultural and creative incubators.

The experiences made during this project showed us that a new model of incubators is desirable, with which we can define an “Open Incubator” that is able to aggregate:

ideas,

resources,

people

enterprises

This aggregation work will be effective if it creates new enterprise clusters.

Much evidence has emerged during the 3C 4 Incubators project to support this concept:

• a cultural and creative SME has a single idea that could be very effective but often this idea is also very specialized and with a limited range of application,

• in addition to this, it is not rare to see a high level of individualism in cultural entrepreneurs (more so than in others businesses),

• the success could be easily reached by the proposal of integrated solutions, and the incubators have to support this process,

• The cultural incubator has to motivate the enterprises to enhance a joined approach to the busi- ness, to go beyond the isolation and consequently “undersize” their ideas

• The “Open Incubator” may be such not only in terms of tools. It helps to integrate ideas and part- nerships, it could propose a model to develop relations with a territory and individuals.

• The “Open Incubator” may be such, also in terms of relation activities. During 3C 4 Incubators project we tested a “social” modality for the SMEs: the “Factory Event“. The event aimed to create new common ideas among enterprises, supported by the business model methodology. This mo- dality is a starting point, a modality that has to be merged with others (see next paragraph about future proposals),

• During the experimentations (including local events organized after the Factory Event) it was evi- dent that the Open Incubator, by the business model methodology integrated with the methodol- ogy about relationships, can be used to build up enterprise clusters.

The aggregation function by the “Open Incubator” has to produce working clusters.

7.3 FUTURE PROPOSALS

The future objective could be to develop an “Open Incubator” able to create working clusters of cultural and creative SMEs.

to create working clusters of cultural and creative SMEs. In order to make a cluster work,

In order to make a cluster work, 3 key dimensions have to be present in the incubator:

1. Business and managerial tools

2. Aggregation method and Relation tools

3. Governance competences

BUSINESS AND MANAGERIAL TOOLS

(e.g. business model, business plan) aim to support the creation of sound enterprise ideas and projects

support the creation of sound enterprise ideas and projects AGGREGATION METHOD AND RELATION TOOLS (e.g. factory

AGGREGATION METHOD AND RELATION TOOLS

(e.g. factory events and games based on the business model and relation box methodology, networking tools) aim to join SMEs in clusters

methodology, networking tools) aim to join SMEs in clusters GOVERNANCE COMPETENCES (e.g. common strategy, common

GOVERNANCE COMPETENCES

(e.g. common strategy, common marketing and communication, common sustainable way to run the cluster. We cannot assume that cultural and creative SMEs, although aggregated in a cluster, would be capable of managing the cluster by themselves) aim to conduct the cluster towards the value creation for SMEs, the territory and its individuals

At the end of the 3C 4 Incubators project, and while also looking forward, we can summarize the current status as follow:

KEY DIMENSION

AS IS

TO BE

BUSINESS AND MANAGERIAL TOOLS

Available

More accessible (delivery to SMEs and incubators) via digital means

Focused

 

Integrated

 

More focused on specific cultural and creative businesses (e.g. audiovisual, cultural heritage, etc )

AGGREGATION METHOD AND RELATION TOOLS

Ideas Factory Event tested

Enhanced

Emerging new ideas about business model gamification

Create method to Motivate Aggregate Focus common way in a cluster Maintain the necessary level of communication among cluster members

 

Results from the networking model Working group

Release 1 of the Relation box model

GOVERNANCE

n.a.

Defined

COMPETENCES

Implemented

BUSINESS''

MODEL'

RELATION'BOX'

MODEL'

(territory(and(individuals)(

To#be# As#is# DURATION' VALUE' (Customer'Experience)' Number'of'' interac/ons'
To#be#
As#is#
DURATION'
VALUE'
(Customer'Experience)'
Number'of''
interac/ons'