Leading Digital Transformation in the Cultural Sector: A resource for managers

Leading Digital Transformation in the Cultural Sector:

A resource for managers

IT4Arts Meeting 2014-11-06

Alex MorrisonManaging Director at Cogapp

www.cogapp.com

Overview

This digital thing: how important is it?

What does it mean for the cultural sector?

How should our cultural organisations respond?

Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

Overview

1. Situation Report: The Digital Media Revolution in the Cultural Sector

2. Leading Digital Transformation: Six Recommendations for CEOs


Chapter 1. Situation Report: The Digital Media Revolution in the Cultural Sector


1454


2007


94

Screens Today = You Screen...I Screen...We All Screen

Image: Telegraph.


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4,000

6,000

8,000

2005 2007 2009 2011 2013E 2015E

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ital I

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ion

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ated

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…Re-Imagination of Data –Big to Bigger to Bigger and It’s Still “The Wild West”…

Amount of global digital information created & shared – from documents to pictures to tweets - grew 9x in five years to nearly 2 zettabytes* in 2011, per IDC.

54Note: * 1 zettabyte = 1 trillion gigabytes. Source: IDC IVIEW report “Extracting Value from Chaos” 6/11.

Global Digital Information Created & Shared, 2005 – 2015E


62

0

300

600

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD

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Flickr

Snapchat

Instagram

Facebook

WhatsApp

Daily Number of Photos Uploaded & Shared on Select Platforms, 2005 – 2014YTD

(2013, 2014 only)

Photos Alone = 1.8B+ Uploaded & Shared Per Day... Growth Remains Robust as New Real-Time Platforms Emerge

Source: KPCB estimates based on publicly disclosed company data, 2014 YTD data per latest as of 5/14.


109

Channel Subscribers (MM)

Y/Y Growth (%)

Music 85 166%

Gaming 79 165%

Sports 78 164%

News 35 213%

Popular 28 133%

Spotlight 22 342%

Movies 18 195%

TV Shows 12 106%

Education 10 --

Music Sports Gaming

News Spotlight Popular

Movies Education TV Shows

YouTube Channels = Huge Reach + Growth

Source: YouTube. Note: Y/Y growth rates as of 5/14.


244 Years In, Encyclopedia Britannica Went Out of Print in 2012

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1990 1993 1996 1999 2002 2005 2008 2011

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0)Encyclopedia Britannica Hard Copy Sales vs. Wikipedia Monthly

Active Users (Different Scale), 1990 – 2012

Encyclopaedia Britannica Hard Copy Sales (000s) Wikipedia Monthly Active Users (MMs)

1990 – Britannica Sales Peaked at 120K/year

1993 – Microsoft Introduced Encarta Encyclopedia for PC @ $99

2001 – Wikipedia Founded, Today* Wikipedia Has 485MM Monthly

Unique Users2008 – Microsoft Shut

Down Encarta

2012 – Encyclopedia Britannica Announced End

of Print Editions

Note: *as of 9/12, per comScore global data.Source: Kellog School of Management, Shane Greenstein and Michelle Devereux, “The Crisis at Encyclopedia Britannica.” 30


Museum directors talking about digital...


“For the Smithsonian to remain a vital institution at this important time in our history, we need to fully engage younger generations with our collections and our knowledge. We need to use new digital technologies to their fullest potential so that we can fulfill the Smithsonian's 19th‐century mission—‘the increase and diffusion of knowledge’— in a thoroughly 21st‐century way for the benefit of all Americans and people around the globe.”Smithsonian Secretary G. Wayne CloughJanuary 2009


Tate director Sir Nicholas Serota said:

"In the coming years we need to devote as much attention to the digital as we have given recently to the physical expansion and improvement of our buildings."

October 2013


"We're at a phenomenally interesting time in terms of how audiences, technology and institutions are recalibrating to each other," he said, citing, for example, the way many visitors now take and share photos while in the museum.

"Along the way comes disruption and change and discomfort," Mr. Lowry added. "I like being tested by the things that make me uncomfortable."

He said the online-only platform of "Design and Violence" "would have been unimaginable a decade ago," but now may become a new format for major projects.

Glenn Lowry director of MoMANovember 2013


Interview with Thomas Campbell, Director of the Metropolitan Museum of Art

Q. What is the biggest issue facing museums today?A. Impacting all of us is technology. We’ve made a huge investment in transitioning from being an analog museum to a digital museum and there are great opportunities in that to see the collections on the whole, to deliver the information to our audiences in new ways. Still, at the end of the day, the core values remain the same: It’s about bringing people face to face with works of art and stimulating their curiosity.

from New York Times article: The Met’s Director Looks Ahead March 2014


Chapter 2. Leading Digital Transformation


Digital in Cultural Organisations

Every element of this model is evolving rapidly and continuously

Business Model for Digital in Cultural Organisations

Acquire content Provide service

Acquire tra�c

Provide infrastructure

DevelopmentBacklog

Convert for value


Research

Online Survey

Desk Research

Face-to-face interviews with Heads of Digital

Face-to-face interviews with CEOs

Group meetings with Heads of Digital


Findings

On the one hand, there is a clear perception from digital managers that there is insufficient support, engagement and leadership from the top and that this is hampering their efforts to drive digital strategy.

On the other hand, charity leaders are frustrated by lack of clarity about the application of digital to their organisations and lack of evidence on which to base strategic decisions.


Findings

Over half of the digital managers we surveyed believe their senior managers have a poor understanding of digital.

Those we spoke to say that while digital is prioritised on paper, in practice senior managers are very unclear about what they want.


Six Recommendations for CEOs

Recommendation 1: Own and drive your organisationʼs digital ambition

Recommendation 2: Maintain a strong chain of command to your Head of Digital

Recommendation 3: Keep the position of digital in your organisation under review

Recommendation 4: Operationalise digital

Recommendation 5: Invest in digital as infrastructure, not marketing

Recommendation 6: Make your senior team more digitally literate

How does your organisation stack up against these recommendations?


Thank you

Copies of this presentation and our report are available from:

Alex Morrison

Managing Director at Cogapp

[email protected]

@Alex__Morrison

www.cogapp.com


Leading Digital Transformation in the Cultural Sector: A resource for managers

Technology

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