REALISING THE VALUE SPECTRUM: CREATIVE INTERDISCIPLINARYPROJECTS, EMERGING VALUE MODELS

Dr Lorraine Warren, School of Management, University of Southampton, Highfield, Southampton, UK, lw4@soton.ac.uk

Ted Fuller, Lincoln Business School, University of Lincoln, Lincoln, UK tfuller@lincoln.ac.uk

Presented in EM Normandie, March 2, 2012

Overview

Developmental discussion, examines the dynamics underlying value creation in three ongoing interdisciplinary creative industries projects. Conceptual underpinnings – Complexity theory (Fuller and Warren 2008-11, ongoing)

The cases (Acknowledgements to Giles Lane/Proboscis, Sally Jane Norman and Kirk Woolford/Gesture and Paul Walland/MUPPITS)

Future questions – creating and capturing value, theory and practice

2. Background: Creative industries within EPSRC CREATOR Project

Empirical research: Tracking co-creation in projects between groups of technologists and artists

Proboscis’ Sensory Threads project (people, their health, the local geographic context …) http://socialtapestries.net/sensorythreads/index.html

Gesture and Embodied Interaction workshops at Newcastle and Cambridge (motion capture) http://www.creatorproject.org/partners/129.html

IT-Innovation, a company involved in developing a new business model for a portal in the post-production rendering industries in Soho http://www.it-innovation.soton.ac.uk/

MiPP Platform (Sussex) Connecting mo-cap to architectural heritage

SETsquared incubators (Southampton, Bristol, Surrey, Bath): case of PINC/Portugal

Value?

Major source of innovative ideas that contribute to the development of new products and services

Offer services that may be inputs to the innovative activities of other enterprises and organisations within and outside the creative industries

They are intensive users of technology and often demand and create adaptations and new developments of technology, providing stimulus to technology producers.

Technical, social, creative, artistic, cultural, societal…..and of course economic

Systems in a complex dynamic (unpredictable) economy

Stability and Variation

Flows, emergence and temporary structures

(small worlds -> disruptive innovation)

From To

Situation analysis Experiments and models

Sustainability as engineering

resilience

Sustainability as evolutionary

agility

Value-creating ecologies

Consumers to co creators of value Value chains to value networks Product value to network value Simple co-operation or competition to complex co-

opetition Individual firm strategy to strategy in relation to

value ecologies Hearn, G. and C. Pace, Value-creating ecologies: understanding next generation business

systems. foresight, 2006. 8(1). Hearn, G., Roodhouse, S. and Blakey, J. (2007), From value chain to value creating

ecology, International Journal of Cultural Policy, 13, 4, pp. 419-436.

Entrepreneurial processes in creating and protecting value

Experimenting New structural practices

Reflexive Identity What do we take as value in our interactions with

others? Organising

What should be our everyday practices? Sensitivity to Conditions

Anticipation of threats…knowledge… reaction… propensity to survive…

Individual (Level A)

Intention, agency, personality, cognitive process

Interaction (Level B)

Discourse patterns, symbolic interaction, collaboration, negotiation

Ephemeral Emergents (Level C)

Topic, context, interactional frame, participation structure; relative role and status

Stable Emergents (Level D)

Group sub-cultures, group slang and catchphrases, conversational routines, shared social practices, collective memory)

Social Structure (Level E)

Written texts (procedures, laws, regulations); material systems and infrastructures (architecture, urban design, communication and transport

networks)

The Emergence Paradigm (Sawyer 2005, p211), showing the ‘circle of emergence’ (p220), i.e. that area which is subject to social emergence

Emergence

Entrepreneurial relational processes

Emergents with causal properties

Anticipation of valueduring innovation

Fuller, T. and Warren, L (2008) Sustaining entrepreneurial business; a complexity perspective on processes that produce emergent practice, International Entrepreneurship and Management Journal, Vol 4/1, pp1-17 Fuller, T. and Warren, L., Thelwall, S., Alamdar, F. and D. Rae (2010), Rethinking Business Models As Value Creating Systems, Leonardo Transactions , VOLUME 43, ISSUE 1, 2010Warren, L. and Fuller, T. (2010), Capturing The Dynamics Of Co-Production And Collaboration In The Digital Economy, Leonardo Transactions , VOLUME 43, ISSUE 2, 2010Warren, L. and Fuller, T., (2009) Contrasting approaches to preparedness: A reflection on two case studies International Journal of Enterprise Information Systems 5/3, 60-71

Emergents as value models: not ‘real’ artefacts such as products and services temporal visions of alternate futures consisting of interlinked, multilevel

constructs that resonate between:

Present and future products and services Present and future technologies (perhaps supported by tangibles such as proof of

concept, prototype, IP) Present and future markets or organising domains (perhaps supported by market

research or constructions of future industry sectors) Present and future dominant logics (extant and potential business practices, relations

with stakeholders, consumer/societal behaviours) Present and future business models, relating the creation and capture of value: (e.g.

economic, technological, social, cultural, artistic, environmental) Present and future identities, expertises

Emergents embrace a discursive understanding of some, or all the above elements, an entity to support the exchange of value in all its forms.

Stabilisation of value model

Processes of value creation (EROS processes)

Processes of stabilisation:Tangibles (IP, contracts, proof of concept, prototype, business plan, incubator)Intangibles (reputation, track record, identity, expertise)

Processes of value capture:Attraction of resource, causality

Value Model Products,

Services….

Metholodogy Tracking co-creation in projects between groups of technologists and

artists Participant observation during regular team meetings or focussed seminar

events Analysis of (where applicable) project management archives produced

during the project Informal ad hoc conversations with project participants, specifically

Their expectations of the project at the outset, and as it progressed The outcomes and processes of the interdisciplinary mix (identification of good

practice, barriers and enablers) Where value has been created, across a range of dimensions and levels of

analysis, including: Technical; creative; economically; academically Individually; the project team; own institution/organisation; wider

networks/society.

Analysis

the phases in innovative development their correspondence to the persistence of

stable and unstable emergents the points where new technology, new

network connections, new legislation, new social conditions, increased or selective investment or changed market drivers would influence a innovative disjuncture, or the creation of value.

Sensory threadshttp://socialtapestries.net/sensorythreads/index.html

Sensory Threads is intended to extend previous collaborative work between Proboscisand Birkbeck College in the area of participatory sensing projects. The central thrustof the project was to carry out an ‘artist inspired’ design and development project thatinvestigates new ways in which biosensor technologies might mediate our perceptionsof the world around us, and also, what happens when we extend sensing of theenvironment to our own bodies. A prototype interactive soundscape device, the‘Rumbler’ was produced with the potential for museum-style installations.

PLAYFUL EXPERIMENTATION

Marshall, J., Airantzis, D., Angus, A., Bryan-Kinns, N.,Fencott,R., Lane, G., Lesage, F., Martin, K., Roussos, G., Taylor, J., Warren, L. and O.Woods (2010) Sensory Threads, Leonardo Transactions, , VOLUME 43, ISSUE 2,2010.

Gesture and embodied interaction…

Gesture/motion capturehttp://www.creatorproject.org/partners/129.html

This case is based on a five-month practice-led scoping project explored motion capture development perspectives from artistic, technological and business innovation standpoints. The breadth and diversity of the motion capture user base make it a rich locus for interdisciplinary collaboration and novel work models, thus a source of useful insights into creative knowledge transfer processes.

computing breakthroughs, notably by making motion capture data streams interoperable with other programs: Java code was authored to connect Vicon streams to Max MSP, and patches, samples and interfaces were devised to open this hybrid platform up to various kinds of gestural control.

PLAYFUL EXPERIMENTATION

Norman, S. J., Blackwell, A. F., Warren, L., Woolford, K. (2010), Gesture And Embodied Interaction: Capturing Motion/ Data/ Value, Leonardo Transactions, VOLUME 43, ISSUE 2, 2010

IT Innovation MUPPITS developing a new business model for a portal in the post-

production rendering industries in Soho http://www.it-innovation.soton.ac.uk/

In brief, MUPPITS is based on new technology, but overall is a systemic approach to work design that brings together key players in the UK post-production value chain. The intent of MUPPITS is to investigate, develop and demonstrate a new service oriented approach to film and broadcast postproduction that will catalyse new patterns of collaborative working in the industry and enable new business models. As such, it has the potential for industry disruption, as economic (and other) pressures impact on the existing value chain: a rich ecosystem, and an emergent business model undergoing testing

Cross disciplinary connection with optimisation models from MS

MUPPITS timeline

Trajectory of Digital Media Business

Software Development Trajectory

Collaborative Service R&D in non-media business

Digital Technology Development

Business Outside Media

Business Outside mediaFunding Agency

Ongoing research questions/practice:

The identification, construction, selection and rejection of business models (in light of industry positions and funding structures: how are emergent business models and value propositions identified, articulated, refined and shaped in relation to industry perspectives

Demonstrate the need to constantly organise constantly organise for novelty in anticipation of value creation and capture

Recognise the value of playful experimentation Identify causes outside the immediate gaze (that is,

economic) of value capture, which are of public and national interest.

Ongoing research questions/theory:

Firstly, develop a new conceptual approach linking theories of emergence to better understanding of the conditions for the anticipation and stabilisation of value during (pre) disruptive innovation, thus contributing to the theoretical literature on processes of entrepreneurship and innovation with particular regard to business models and value creation.

Secondly, begin to evaluate the usefulness of network optimisation techniques to business model development (MUPPITS).