Project Management in Digital Media Agency

SATAMA INSIGHT What do digital media companies expect from their project managers? ©2005 SATAMA INTERACTIVE Tommi Pelkonen Satama Interactive Nov 10, 2005 Tommi Pelkonen, digital media professional 33 years, living in Amsterdam M.Sc. (Econ.) 1999 at HSE Doctorate student, HSE (2001->) Researcher LTT-Research Ltd / Digital Media (1996-1999) Satama Interactive/Amsterdam Senior consultant Specialisation areas Telecommunications Digital media Internationalisation Business strategies SME development During 1996-2005 ~70 completed business, research and analysis projects both in professional career and academy ©2005 SATAMA INTERACTIVE 1

Satama Interactive – Design and production of interactive services We help our clients make better business online. Satama employs ~320 professionals. • Our experts are specialized in business Tampere development, design, and technology. Turku • Our own operations are complemented by an effective international partner network. • Satama’s client-specific teams delivered over Stockholm 1.000 world-class projects in 23 countries last year. Helsinki Satama is a financially solid, growth-seeking company: • Satama’s revenues in 2004 were EUR 23.6 million. • Revenues increased by 10.5% compared with 2003. Amsterdam Düsseldorf / • Net profit was EUR 1.5 million, which is 6.3% Stoneroos / NeoMotion of revenues. Hilversum • At year-end, Satama’s equity-to-assets-ratio was 76.3% and liquid funds were EUR 8.4 million. ©2005 SATAMA INTERACTIVE Satama Interactive – Design and production of interactive services FINNAIR CATERING Tampere Turku Stockholm Helsinki Amsterdam Düsseldorf / NeoMotion Stoneroos / Hilversum ©2005 SATAMA INTERACTIVE 2

Satama’s clients demand global delivery capability Satama delivers projects in 20+ countries annually. During the last 12 months Satama has delivered projects for example in: Brazil Poland Singapore China Germany Italy Spain USA Malesia Thailand France ©2005 SATAMA INTERACTIVE Satama’s mission and core messages Understanding the customer Satama means better business online Concrete results quickly Understanding by applying appropriate the users skills and tools ©2005 SATAMA INTERACTIVE 3

SATAMA INSIGHT: What digital media companies expect from project managers? Definitions Professional production process What do digital media companies expect from PM’s? Conclusions and recommendations ©2005 SATAMA INTERACTIVE DEFINITON 1/2: DIGITAL MEDIA: Three key business areas and underlying business models Key business area and analysis subject Key focus of this presentation Business area 1: Business area 3: Digital media Business area 2: Software content creation Digital media business service creation Digital media Software Content creation professional companies companies business service companies Dominant Dominant business model Dominant business model: Professional services business model: Software procuction, (often project-based Content IPRs sales and distribution EUR/hour or day) EUR/production (EUR/licence + service fee) Regardless of the domain, a project manager/ producer is required to deliver the requested outputs Source: Pelkonen & al., 2003 ©2005 SATAMA INTERACTIVE 4

Digital media industry activities Digital media Digital channel solutions Ente rtainme nt (WWW, e-mail, banner advertising) (digital television, streaming media) (e.g. CD-ROM, DVD, installations) M arke ting communications Digital broadcasting Digital storage media (e.g.. SMS, WAP, MMS) Solution area Online media A dvisory a nd cons ulting se rvice s Mobile media Exte rnal Corporate communications Inte rnal Le arning Loyalty and community Se lf-se rv ice Comme rce Te rminal-re late d syste ms and software de v e lopme nt T echnology solutions Conte nt and acce ss manage me nt syste ms Te chnical inte gration to othe r syste ms Copyright Pelkonen, LTT-Research Ltd, 2003 Each solution area requires different substance understanding Source: Pelkonen & al., 2003 ©2005 SATAMA INTERACTIVE Digital media productions are created in a value-adding process: 1) content products and 2) service creation 1) CONTENT Content Content Content Content Consumption/ CREATION creation marketing distribution aggregation Usage VALUE CHAIN 2) DIGITAL Strategic Creative Implemen- Distri- SERVICE planning planning tation bution CREATION VALUE CHAIN Program management subcontracting and client responsibility subcontracting Specialist Efficient small production house For larger productions, multi-vendor management capabilities are called for ©2005 SATAMA INTERACTIVE 5

Communications solution value-web Selected role/objective Actors throughout the value/service creation process for action Objective Strategic Creative Implemen- Distri- Consumption/ setting planning planning tation bution Usage Marketing Print Print house communications Comm- muni- Outdoor Comm- Media Reproduction Digital media role: cation muni- agency house Communications cation agengy one Radio channel agengy -way AV-producer Media \"Message\" Design agency Telev ision Consuting Adv ertising company agency house Direct marketing Key question: PR-agency What kind of message Ev ent inter reaches consumer the marketing Digital media serv ice companies -action best in the selected media-mix and w ithin the media budget Digital marketing Copyright Pelkonen, LTT-Research Ltd, 2003 In marcom: Digital media company needs to master its relationships with esp. ad agencies Source: Pelkonen & al., 2003 ©2005 SATAMA INTERACTIVE Digital solution creation value-web Selected role/objective Actors throughout the value/service creation process for action Objective Strategic Creative Implemen- Distri- Consumption/ setting planning planning tation bution Usage Role 2: Service channel Service Serv ice provision Serv ice creation and implementation location consultants \"Dialogue Ad agency Consulting \" Technology company Contact prov ider (Serv ice Design Center strategy) house Key question: Digital Where and how to Digital media serv ice company serv ice serv e the consumer/ end-user the best? Copyright Pelkonen, LTT-Research Ltd, 2003 In IT: Digital media company needs to master its relationships with esp. technology vendors Source: Pelkonen & al., 2003 ©2005 SATAMA INTERACTIVE 6

What are the outcomes of digital media companies? Internet pages, Digital marketing E-Commerce and e-learning extra- and intranets Services supporting client loyalty Custom mobile Mobile applications Multimedia Digital TV services for events ©2005 SATAMA INTERACTIVE We as consumers decide where, when, and with what device we use these services Mobile Digital TV Mobile Software Internet On the At home go Internet In social At work Mobile Mobile situations Internet Software ©2005 SATAMA INTERACTIVE 7

DEFINITON 2/2: Project management • Project management is the discipline of defining and achieving targets while optimizing the use of resources (time, money, people, space, etc). Thus, it could be classified into several models: time, cost, scope, and intangibles • In contrast to on-going, functional work, a project is \"a temporary endeavor undertaken to create a unique product, service, or result“. • Projects are temporary because they have a definite beginning and a definite end. • They are unique because the product or service they create is different in some distinguishing way from similar products or services. Project has clear start and an ending. It needs to managed by professional leader. Sources: Wikipedia, 2005 & A Guide to the Project Management Body of Knowledge PMBOK® Guide, Third Edition, Project Management Institute, 2004, p. 5 ©2005 SATAMA INTERACTIVE Project management is an very well established field of discpiline with strong professional guidelines Project management literature is versatile and offers massive amount applicable models to manage production variables ©2005 SATAMA INTERACTIVE 8

Project phases 1. project initiation (Kickoff) 2. project planning 3. project production or execution 4. project monitoring or controlling 5. project completion Project management tries to gain control over five key project variables: • time • cost • quality • scope • risk ©2005 SATAMA INTERACTIVE Putting a digital media project into scale: mega-projects vs. digital media production... ©2005 SATAMA INTERACTIVE 9

SATAMA INSIGHT: What digital media companies expect from project managers? Definitions Professional production process What do digital media companies expect from PM’s? Conclusions and recommendations ©2005 SATAMA INTERACTIVE Activities are based on five types of resources Personnel Hardware Software Organisational Financial • Business • Office • Licences • Strategies • Finance for • Technical premises • Intellectual • Goals operations • Design • Production property rights • Organisational (e.g. R&D, machinery • Proprietary con- commerciali- • Managerial culture sation, inter- • Other tents • Organisational nationalisa- • Production structures tion) process knowledge • Knowledge about technology • Knowledge about custom- ers • Production software The key resource is the personnel! Source: Pelkonen, 1999 ©2005 SATAMA INTERACTIVE 10

Combination of technology, business, management, communication, design creates digital media understanding Competence management Entrepreneurship Project management Accounting and finance Communication skills Marketing Group work skills Internationalisation Business expertise Managerial expertise Technical Communications expertise expertise Digital media understanding Digital graphics creation Multimedia manuscripting Database design Communications Programming process understanding Cognitive psychology IT system design Pedagogy IT system integration Ability to combine media elements Interactivity understanding Ability to create new business models Ability to measure new media impacts Key to success: to orchestrate different competencies Source: adapted from Helomaa & Väänänen, 1999 pp. 40-54 ©2005 SATAMA INTERACTIVE E.G. Satama Interactive: Competencies working in harmony Account Management Project Consulting Management Creative Technology Design Working is a production team is constant interaction = meetings, knowledge sharing and co-ordination ©2005 SATAMA INTERACTIVE 22 11

People are the key resource in digital media production Succesful companies can make different competencies to appreciate each other and work seamlessly together ©2005 SATAMA INTERACTIVE Development of our clients’ services requires expertise in business, design and technology Nature of employment 2004 At the end of 2004, Satama employed 292 persons Permanent, full time 89% (316, Q3/06) in Finland and Permanent, part time 5% the Netherlands. Approx. Temporary, full time 4% 50% of employees have Temporary, part time 2% worked for Satama for over 4 years. Job description Invoicing 92% Business development 37% Creative design 31% Technology 32% Administration 8% Gender distribution Female 29% Male 71% ©2005 SATAMA INTERACTIVE 12

Digital media production process in professional firms Digital solution development work-flow Strategic planning Creative planning Implementation Delivery Sales negotiations Account management Further sales Testing Conceptual planning Installation Graphical Training Full deployment/ Graphical implementation roll-out Strategic planning planning Piloting Technical planning Technical implementation Maintenance Project planning Project management time Digital solution development in releases Release 1.0 scoping Release 1.0 deployment Adjustments Release 1.1 Release 2.0 Release 2.0 scoping deployment time Larger development programs consist of multiple project i.e. may demand a team of project managers to work together and deliver each their project ©2005 SATAMA INTERACTIVE PROCESS IN PRACTISE: Production process is the digital media company backbone Agreement on workflow, method and deliverables is propably the only way to standardise quality of production within people-based business ©2005 SATAMA INTERACTIVE 13

SATAMA INSIGHT: What digital media companies expect from project managers? Definitions Professional production process What do digital media companies expect from PM’s? Conclusions and recommendations ©2005 SATAMA INTERACTIVE PM: the master of planning and control PM needs to able to be the ultimate co-ordinator and planner for activites and identify key dependencies of an activity to another ©2005 SATAMA INTERACTIVE 14

Project managers in multiple roles Hey boys, let’s do this first and those things later. Please let me know if SHALL WE MAKE something are not clear! THE DEADLINE I will ensure the OR NOT? profitability of this project PM needs to be a true multi-tasker. ©2005 SATAMA INTERACTIVE What do digital media companies expect their PM’s to do Strategy & Project Management manage client relationships and get projects done on-time and in- budget. They help the client define business and communication goals. The people in this group are client managers, management consultants, and technical & commercial project managers. (Framfab, 2003) Project managers are responsible for project management at Satama, which involves client project design, resourcing and follow-through. Their job is to keep projects moving according to schedule, while attending to budget and planning issues in cooperation with our client, other vendors and the project team. (Satama, 2005) ©2005 SATAMA INTERACTIVE 15

What is requested from PM applicants? 1/2 Project Manager (position filled March, 2005) Satama Interactive is looking for experienced, active Project Managers to work with either technology or marketing communication oriented projects. The essential role of project manager is to take ownership of a client project and ensure that it is delivered according to requirements. You are responsible of planning and managing projects: project schedule, budget, quality, profitability and the end result are your driving forces. You work closely together with Satama’s client manager and with the clients and other vendors. At the same time, you have the opportunity to lead a team of skilled and motivated people with very different backgrounds. To be a successful project manager you need to understand the whole project with its functions and techniques, and be capable of managing change and risks. That is why we are expecting previous work experience of either application development client projects OR marketing communications client projects from the vendor point of view. As a person you should be able to motivate project teams, delegate work, solve problems and give feedback. The work requires good presentation, communications and negotiation skills both in Finnish and in English. ©2005 SATAMA INTERACTIVE What is requested from PM applicants? 2/2 Project Manager (position filled May, 2005) Satama Interactive is looking for a MarCom Project Manager for challenging www and mobile projects. The essential role of project manager is to take ownership of a client project and ensure that it is delivered according to requirements. You are responsible of planning and managing projects: project schedule, budget, quality, profitability and the end result are your driving forces. You work closely together with Satama’s client manager and with the clients and other vendors. At the same time, you have the opportunity to lead a team of skilled and motivated people with very different backgrounds. To be a successful project manager you need to understand the whole project with its functions and techniques, and be capable of managing change and risks. That is why we are expecting previous work experience of international B to C marketing communication projects and experience of leading comprehensive service development projects. As a person you should be able to motivate project teams, delegate work, solve problems and give feedback. The work requires good presentation, communications and negotiation skills both in Finnish and in English. Knowledge in Swedish would be a big plus! ©2005 SATAMA INTERACTIVE 16

Professional organisation’s managerial challenges Extreme situation: anarchy High Professionals Leaders co nti no us Professional co PROJECT Administrative nfl expertise ic t Extreme situation: bureaucracy personnel MANAGERS Low Supportative Managers personnel Organisatory expertise Low High Winning professional companies make management of Source: Kuokkanen, 2000 the continous conflict their asset! ©2005 SATAMA INTERACTIVE Management as key challenge for digital media companies STATEMENT: The key challenges in the digital media business relate to managerial models of the companies 1.3% 1/75 Totally agree 40.0% 30/75 Agree to some extent 25.3% 19/75 Do not agree or disagree 17.3% 13/75 Disagree to some extent 12.0% 9/75 Totally disagree 4.0% 3/75 Cannot say Project managers are the critical power to make the difference between one company to another Source: Pelkonen & al., 2003, sample 75 Finnish digital media companies ©2005 SATAMA INTERACTIVE 17

Key challenge areas digital media productions • Planning and follow-up • Keeping up with deadlines and budgets • Resource acquisition and allocation • Managing client expectations • Legal and contractual issues • Internal conflicts within teams • Change management • Communication challenges inside • Claim management and outside • Closing of projects – approvals and • Quality ensurement milestones • Competence development • Working with multiple partners and sub-contractors Digital project management is no different from any other people-based project management. HOW WILL I SURVIVE? Only the substance differs. • ©2005 SATAMA INTERACTIVE What role should the PM play in the production team? GO PM GO! ©2005 SATAMA INTERACTIVE 18

SATAMA INSIGHT: What digital media companies expect from project managers? Definitions Professional production process What do digital media companies expect from PM’s? Conclusions and recommendations ©2005 SATAMA INTERACTIVE SUMMARY: How projects function in reality... ©2005 SATAMA INTERACTIVE 19

Conclusions Managing digital media productions do not differ radically from any other project management tasks The better the project manager knows the substance, the easier it can be to manage professionals and the production process. Yet, PM should NOT be the substance problem solver, but rather the facilitator and co-ordinator for solving Digital media PM should constantly focus on ensuring that the different experts in production teams are working: Key focus area for PMs: Making team 1) on right tasks; members to trust each others, play 2) on time together and knowing how to get the best out of them in different 3) with best possible harmony and situations! 4) towards common goals. ©2005 SATAMA INTERACTIVE For more information Project management is one the most established disciplines within busines literature ©2005 SATAMA INTERACTIVE 20

Project Management in Digital Media Agency

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