Salford April 14 2010

The Creation and Articulation of Value in the Creative Industries Salford, April 14 Ted Fuller Lorraine Warren Giles Lane

Data: Creative industries within EPSRC CREATOR Project
Empirical research: Tracking co-creation in projects between groups of technologists and artists http://proboscis.org.uk/category/films/
Proboscis’ Sensory Threads project (people, their health, the local geographic context …)
http:// socialtapestries.net/sensorythreads/index.html
http://proboscis.org.uk/projects/sensory-threads/
Gesture and Embodied Interaction workshops at Newcastle and Cambridge
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 /

Creative industries as engines of innovation
Emergence of VALUE
Disruptive and incremental innovation
Major source of innovative ideas for new products and services
Offer services that may be inputs to innovative activities of other endeavours
Intensive users of technology, often demand and create adaptations and new developments, takes technology forward
Muller et al 2009

Purpose
Engender new behaviours
Seek new business models in Digital Economy
Disruptive industry change -> how might this emerge? How might we capture emergent value [or increase likelihood of capturing emergent value]

Key questions
How can we conceptualise the deeper dynamics underlying the anticipation and emergence of value in creative technological processes
How can the ‘value spectrum’ be articulated so that the contribution of small creative arts groups is recognised and rewarded

Conceptual Framework
A METHODOLOGICAL CHALLENGE:
How “entrepreneurship” and innovation are causally connected
How to research ‘emergence’
How to capture multiple observations at multiple levels of analysis over time

Theory
Emergence perspective on entrepreneurship and innovation…informed by…
entrepreneurship theory (e.g. effectuation, bricolage, opportunity, entrepreneur, network), complexity (emergence, attractors) and critical realism (e.g. morphogenetics, structures, causal mechanisms)
… interlinked processes of interactions between agents and structure produce emergence
… ontology is as significant as process (by agents) to the production of innovation (changes in structure)
Cf. Ephemeral and stable ‘ emergents’ (Sawyer 2005)

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

Methodology
Gaze on empirical emergent (ontological) properties that have an influential effect on the shape and sustainability of the system we are observing.
In practice, this means keeping an eye on the group of actors foregrounded in the study and on the artefacts, discourses and exchanges produced.
Our analytical perspective is value creation; how is value created / captured?
This is ongoing research (Cf. ‘future research)

Sensory threads
Proboscis: publicly authored work where events and installations are designed to enable people to use emerging technologies in new and exciting ways, creating and sharing knowledge that is often location-based (IRO)
Group expedition through a city using wearable sensors and real-time audio feedback
The ‘Rumbler’ a gallery-based interactive soundscape ‘player’ [pic]
Queen Mary, Nottingham, Birkbeck

Methods
Participant observation during team meetings
Analysis of the Basecamp project archive (which included specific reflections on value emerging from creative and technological discourse )
Informal ad hoc conversations with project participants

Emerging value
Do we know what future ‘value’ might look like?
As in ‘The Rumbler’??
Relationship between co-produced knowledge (novelty of ideas/concepts) and ‘value’ (exchangeable value within an ecology of actors)
Relationship between human and social capital <-> symbolic and economic capital
How do relationships maintain their generative power -> communities of practice?

Value Creating
Individual – personal research strengths, , new connections, levels of trust (high-level gains)
Project team – manage complex collaborations, reputational ecosystem, articulate the value of arts/academic projects in research in bridging research cultures *not* just adding a bit of stimulus
Temporal dimension -> technical/creative->academic->economic and wider societal impact

-> Value capture: Business Models
“ it creates value and it captures a potion of that value. It creates value by defining a series of activities from raw materials through to the final consumer that will yield a new product or service with value being added throughout the various activities. The business model captures value by establishing a unique resource, asset or position within that series of activities, where the firm enjoys a competitive advantage”
Chesborough et al, 2006

Value capturing (or Business model challenges)
Innovation takes place across distributed networks [poor correspondence with linear ‘business plan’ models, value chains  value networks/value ecologies (Hearn & Pace, 2006) ]
New network configurations present challenges to traditional modes of monetisation and value capture
High uncertainty
Values issues regarding interchange of artistic, cultural, social capitals, particularly where creative output is critical of powerful groupings

Business model challenges: creative industries
Values clashes
Tensions between first and second order activities [Thelwall]
Potential for amplification

Outcomes: ‘Stable emergents’ in creative ‘value creating systems’ (coarse grained analysis)
Inter-activity between agents was the way that values associated with creativity or technicality interacted with economic value... (e.g. reputational value)
… possible trajectories were identified and tested out, either as thought experiments, shared mental models, or sometimes as rough working prototypes….
…‘ ephemeral emergents’ were narrowed down to the most promising variant: at this point the transition from ephemeral to stable occurs.
… this is the point at which discussions shift from value creation to value capture. (Warren, Fuller et al, 2009)

Conclusion (one of many): value creation and value capture…3 types of model
“ The first is a model that creates the conditions for creativity and reputation by establishing attractors; typically resources for co-operation.
The second is a model that stabilises the emergent properties of the first; typically the creation of codified knowledge.
The third is one that enables the exchange of monetary value for this codified knowledge, and is more recognisable as a business model by investors
Attract/amplify <-> stabilise <-> realise value
(Fuller, Warren et al, 2009)

Final thoughts
Attract/amplify <-> stabilise <-> realise value
ROLE OF HEIs/Government/organisations
IF ANTICIPATION OF VALUE STABILISES EPHEMERAL EMERGENTS, THEN HOW IS THAT ARTICULATED?
[Engines of innovation & anticipatory thinking in a creative milieu]
[worth, usefulness, merit vs. power, habits, harm]
[Social contract]

Salford April 14 2010

by Lorraine Warren on Apr 15, 2010

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Salford April 14 2010 — Presentation Transcript