[+57] Creative Colombia (Disseration)
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An innovative platform to NURTURE & PROMOTE the design & crafts sectors of the creative industry in Colombia. A business strategy based on strengthening the connection between creators, ...

An innovative platform to NURTURE & PROMOTE the design & crafts sectors of the creative industry in Colombia. A business strategy based on strengthening the connection between creators, producers and consumers.

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[+57] Creative Colombia (Disseration) Document Transcript

  • 1. CREATIVE COLOMBIA / The Value Of MakingHow can Business Design drive innovation into the countries’ creative and productive force?Felipe GómezJozeph ForakisMaster in Business Design Academic Year 2010-2011Milan, October 15 2011
  • 2. [+57] CREATIVE COLOMBIAAbstractColombia has become a new important economy in the modern world. This South American Country is thefourth biggest economy amongst the Latin Countries (after Brazil and Mexico and Argentina) and holds thethird biggest market segment in the region. But the business environment in the region is changing, thepopulation number is rising fast and their buying power is also increasing. In order to keep the pace with itsstrategic markets and become more competitive; Colombia will need to understand how to generate value outof its creative industries, they are becoming a key asset to compete strategically and build the strength for thedeveloped and developing regions in this modern economy. The different sectors that compose the NationalCreative Industries could lead the development process of the country and transform it from its current andtraditional efficiency-driven model to a more innovation-driven one.The Colombian Creative Industries have a skilled and resourceful workforce; of craftsman’s, designers, smallproducers and entrepreneurs that are having great ideas and projects but are not being able to communicatetheir value and introduce their products to the markets. The local and creative value is underappreciated withinthe global society; therefore, the former needs to be addressed with a solution that equips the creative andproductive community with tools and channels in order to communicate and explore the cultural andeconomical value of their creative makings.Consequently, this project will use the power of a collaborative brand “[+57]”, that will unify theColombian creators, producers, and businesses communities through an online Open-sourced Magazine &Store where the content is generated to draw interest about Local Creative Makings.This model is conceived as an evolution of what a creative MEDIA-driven business model is (like the OneMONOCLE MAGAZINE follows). It goes even further by being a protagonist in the creative and businesscommunity, that by discovering new talents and driving strategic design research and business modeling withthem to collaboratively conceive new product lines, services and business models.Finally, the solution model seeks to connect and support the community of creators, makers, and businesses, bydriving innovation through a series of online networking, educational and collaborative strategies, allowingthem to learn, share and participate through out the whole process of creation and innovation. 3
  • 3. TABLE OF CONTENTSIntroductionChapter 1: Background. A global and local view of the creative industries. 1.1. The Creative Industries definition and their value for development. 1.1.a. Current business models for creative organizations. 1.2. The challenge for innovation in developing areas, an overview of the present situation. 1.3. Local Context. Colombian creative power and the situation for local innovation. 1.3.a. Colombia; Socio-Economical frame of reference 1.3.b. Innovation competitive outline of the country 1.3.c. The local creative industries definition 1.3.c.1. Being a Colombian Maker. The local crafts sectors case. 1.3.c.2. Being a Colombian Creator. Local design sectors case.Chapter 2: Problem Definition. The under appreciation of the local creative value. 2.1. Introduction 2.2. Defining the players: Creators, Makers and Consumers 2.3. Problem general Overview: The Under appreciation of the local creative value 2.3.a. Generalized fear to take risks, a problem for innovation. 2.3.b. Low exposure of the “Creators” and their creations. 2.3.c. Scarcity of support and lack of business planning. 2.3.c.1 WAYRA network case study 2.3.d. Absence of collaborative spirit amongst the players.Chapter 3: A Design-Driven approach to help local creative businesses. 3.1. Business Design as transformation leverage for the local creative and productive forces. 3.1.a. Slow food case study 3.2. What is business design? A new approach for businesses innovation process 3.3. The value of the local creative force and their makings 3.4. Story telling, expressing the value of local creative makings 3.4.a. WALLPAPER case study 3.5. Driving Innovation into the creative and productive sectors through design. 3.5.a. COMMON case studyChapter 4: Precedent Studies. Existing Models that support creative outcomes. 4.1. Creative-Led Publications; an inspirational source for design 4.1.a. MONOCLE MAGAZINE / Print and online Content; Driving innovation into creative communities. 4.2. Online Design; Online Design Shops and Project Promotion. 4.2.a. FAB.COM / E-retailing and reselling of creative products 4.2.b. ETSY.COM / Community Sourced Platform for Handmade Products 4.2.c. KICKSTARTER / Crowd-Funding Creative Enterprises 4.3 Creative Networking and Crowd Sourced Innovation 4.3.a NAPKIN LABS / Virtual collaboration tools for creativity. 4.3.b Open IDEO / Challenging the creative community. 4.4 The design Brief what a new business should offer to Colombian creativity. 4
  • 4. [+57] CREATIVE COLOMBIAChapter 5: The project. [+57] A Local Resource For Creativity 5.1 Introduction to [+57] 5.1.a Brand Identity and values 5.1.b A link between the Creators and the Consumers 5.1.c [+57] An On-line Magazine and Store for creative content. 5.1.d [+57] A Resource for local innovation 5.2 The strategy; introducing innovation into the local creative process. 5.2.a Phase 1: Gather & inspire the local creative power with education 5.2.b Phase 2: Discover & Communicate the new creative talents 5.2.c Phase 3: Draw attention towards the creative people and their offers 5.2.d Phase 4: Drive innovation amongst the creative players 5.3 The scenario, how does it work? 5.3.a The Inspirational Creative Maker; the one with a developed product 5.3.b The Inspired New Talent; the one that is developing an idea 5.3.c The Industrial Partner Seeking Inspiration; those who need new ideas 5.4 The Business model, how do we make money? 5.4.a Business model Overview and Business Positioning Strategy 5.4.b Key Activities and Key Resources 5.4.c Key Partnerships 5.4.d Revenues & Costs 5.5 Scalability & future developments 5.6 Final ConclusionsBibliography 5
  • 5. 6
  • 6. [+57] CREATIVE COLOMBIAIntroduction.The creative industries, and the different sectors that compose them, have become one of the fastest growingsectors in today’s international economy. This Industries have teach us their economical importance indeveloped countires, like England , where it was proven that in the city of London, this activities generate moreeconomic value than the one that is being produced by its entire finacial sector. Now is time to understand howthe activities realted to these industries can generate value, and become a trasformation leverage, for developingcountries like Colombia. In order to become more competitive and keep the pace of todays world, thiscoountires will need to overcome their traditional economical models based on the efficiency of their industrialpower and move to an innovation driven economy.Colombia counts with a skilled and talented creative force, this community’s count with a high tradition incrafts and cultural activities that are being complemented by a resent proliferation of the design disciplines thathas been occurring during the last decade; a rise of creative force is happening together with the economicalgrowth of the country. This creative force is generating a broad number of products, services and business withhigh levels of innovation and quality. Never the less there is a general under-appreciation amongst the globalsociety of the value of these Colombian creative makings, that are not reaching the local or international goodsmarket as their creators expect them to. The main reason for this, is that even tough the creative communitycount with a high number of well developed product concepts, they are not being able to achieve the same levelof business conceptualization and planning to communicate and distribute this values. This thesis explores theway in witch business-design, business modeling and design-thinking methodologies can assist this communityto overcome this problem and set long lasting and profitable business around their creative activities.It is possible to observe how around the world new communication channels and distribution strategies arebeing set to manage the value of creative communities. These strategies are facilitating channels that allowcreative products and ideas to reach a large mass of consumers, thanks to the networking power of the Internet,social media and communications. Now, new business models are supporting the creative communities fromthe first stages of conceptualization, where virtual collaboration has enabled people to share knowledge in away that was never seen before; to the final stages of implementation where ecommerce platforms have set newretail and distribution strategies to support and argument the public awareness of creative enterprises. Duringthis project this companies will be studied in order to understand how their business models and strategiccomponents could be articulated in a way that suites better the Colombian creative communities.In the final section of this document, I will explain my solution. A business strategy that uses the power ofstory telling and todays WEB 2.0 functionalities; to manage and promote the local creative power and theircommunities. Hoping to gather the creative force on a single platform that will be able to support andempower them with the required tools to communicate and distribute their creations. After this strategy hasachieved to draw attention and rise public awareness towards the local creative and productive communities itwill go farther by facilitating collaboration and innovation dynamics that will allow them to keep generatingnew products, services and business ideas and introduce the in the local and international markets. 7
  • 7. Chapter 1: Background.A global and local view of the creative industries. 8
  • 8. [+57] CREATIVE COLOMBIA1.1 The Creative Industries definition and their value for development.In order for any country to keep up with today’s market and trading pace, it is necessary to understand theircreative value and work to make use of them as a main national asset. As it was stated by the OECDeconomies, the creative industries are one of the fastest growing sectors in today’s international development.They “have an expected compound annual growth of over 9%, generate 7% of the global GDP, employing onaverage 5% of the workforce and Representing 4% of the world trade” according to the United NationsConference on Trade and Development (United Nations , 2009)These industries are mainly conformed by different subsectors: Performing Arts, Arts, Television &Radio, Film & Video, Music, Publishing, Advertisement, Antique, Crafts, Design, Fashion and Software.Besides the definition of these types of industries have been sketched by some governments andorganizations and can change depending on the source. From the UK Government’s Department for Culture are: ‘Those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property.’ (Parrish, 2008) And, Defined by UNESCO as: ‘industries that combine the creation, production And commercialization of contents which are intangible and cultural in nature; these contents are typically protected by copyright and they can take the form of a good or a service.’ (Parrish, 2008)These industries vary in level, and because of their unclear definition it’s hard to understand how they areconformed and the true value that they could represent. Normally it’s difficult enough to understand thedifference between creative and cultural industries and what characterizes each of these. Therefore, in order todefine the types of categories in thesis industries it was useful to apply the economic model that was developedby Professor David Throsby to classify and describe the economic inter-dependencies between them. (TheWork Foundation, NESTA, 2007)His model describes concentric circles with the ‘cultural value of cultural goods’ being passed outside the coreto broader economic categories which further commercialized those cultural goods. In the center we can findthe Core Creative Fields with the expressive value of creation, where pure creative content is the outcome.This is the domain of the author, painter, filmmaker, dancer, composer, performer and software writer.Although the creator seeks an audience and market, their activity is the pure expression of personalized value inwhich both creator and users have a unique relationship from which both gain. It is the most intensely feltexperiential form of both delivering and consuming expressive value. It can be generated by the artist as sole 9
  • 9. trader, as part of the content generation of a large company or via public support; in whatever structure specialcare has to be taken to ensure that that creator has the opportunity to experiment and constantly innovate.Because of being a personal expression in most cases it is hard to ensure the intellectual writes(rights?) andproperties at this level, but special care has to be taken to this issue at this or any other level where contentcreation of any of the creative Industries can be found. f The Econ Rest O omy The dustries & Act e In ivi ativ tie Cre s ral Industri ltu es Cu Core Creative Fields Possess a high degree of expressive value and generates commercial outputs. Small copyright protection. Ac Ex p f gh n o tiv ie ct io it re s i n t ss d u ri ive v o l v e m a s s re p ro o py outp nc Th u ts b a se d o eu o lt se ti a of e en M th e xp e ss an u p e r re s s i v e v a l u e i s e c t o r s lo it th fact fo r m a s xp e e uri n ce o f t h e s e d e ies n n xp res g and m a ustr sive s e r v i ce t fro d outp sectors bene ative in re uts gen erated b y the c 1.1 Image1: Creative Industries Classification (The Work Foundation, NESTA, 2007)At the next level we find the Cultural Industries - which focus primarily on the commercialization of pureexpressive value. Here we would find things such as music, television, radio, publishing, computer games andfilm in business and organization. These industries normally work according to a vertical integrated modelwhere everything is done inside the organization, like EMI Music, but lately is starting to give way to morenetworked forms of organization. In the UK television production is increasingly organized this way. Channel 4was founded on the basis that it would solely commission independent production companies to delivercontent. And during the last years with the power of crowd sourced initiatives this collective behavior has goneeven farther. Now the development of a videogame can be completely sourced by the crowd and thanks to thenew web-based technologies and how they have been empowering the use of the crowd, creative people aregetting more involved with the producers. But whatever organizational models it uses to gather the content; theheart of the business model is generating copyrightable acts of origination of expressive value representedunder an organizational model.The next circle refers to the focus of the Creative Industries, here activities like architecture, design, fashionand software based services are located. In this group the market offerings pass both an expressive andworkability value. They are composed of both an expressive and functional content, responding to the study orforecast on needs and demands based on the consumer. They represent a linking stage between the culturalindustries and the rest of the economy, and are now very closely related to the consumer driven ones such asmanufacturing and service providers. 10
  • 10. [+57] CREATIVE COLOMBIAIt is then that the relation of this rich productive force with this project becomes visible and relevant, where theapplicability of business design and a design-driven holistic approach to generate outcomes of creativity andcultural relevance that can empower the conventional creative sector to make them market successful. Anyexpressive and valuable creative activity should embody the culture but it is useless if the products don’t countwith a sustainable development and support in the industrial fields it cannot succeed. Fashion products have tobe culturally in the vanguard but wearable and in pace with the contemporary and global manufacturing andretail directions.The application of creative and cultural values into the industries doesn’t stop at this kind of level. It’s reallyobvious how they have also been introduced and are present in The Rest of the Economy, the last sector ofthis model. And thats where the term, “creative business” becomes visible. It’s where creativity starts playingan important role in the innovative creation and organization of new business models that can influence therest of the economies. Be it the manufacturing, financial or service sectors that start gaining expressive valuethanks to promoting creative methodologies into their commercial activities. In this way, companies such asApple have been able to introduce creativity, not only in terms of technology and product, but also into itsretail and communication model. For example the Apple Stores have taken the company to a highercommercial level, thanks to creative outcomes and creative strategies its been possible for them to innovate inthe retail experience and now they are able to offer costumers creative value in all their activities, not just in afiscal way but each time in a virtual and long distance dimension.Even though these sectors have been of great benefit to mankind since its first cultural expression, theindustries of this nature where not defined as part of traditional economic models and sectors until lately. Theold models that where followed came from the industrial era, and worked, based on the productive levels, whatcould be achieved just by the transformation of work and matter in order to give them an extra value and makethem profitable. Based on those models, the only way for a country to achieve economic development was togo through an industrialization process to produce and gain enough infrastructure and capital to become awealthy country. These models are quite adverse to the realty of some undeveloped economies, such asColombia, that would by no chance be able to compete on a market set over those conditions and because ofthis reason are becoming more dysfunctional. Where productive monopoles are already established anddistributed amongst a few, the market for ideas and innovation rises as a new path to economic wealth andprogress and are driving the way in which things are happening.1.1.a Current business models for creative organizations.We should also understand the classification of the creative business based on their business model; in order tounderstand how is possible to generate value. A clear business model classification of the organizations thathave a creative value was made by the Center For The Creative Business (Centre For Creative Business,University Of the Arts of London). This categorization depends on the value preposition that the differentbusiness dealing with creativity offer make to the market and there are three basic ways to do this. The firsttype of model would be the Creative Product Driven Business, that are those firms that create a replicableproduct that can be protected by intellectual property. Normally this companies address their creation to final 11
  • 11. consumers (B2C). For this enterprises intellectual property, creation of a brand and a well established instinctfor winning market products is the key. In this area we can find companies such as Zara, Ikea and Nespressothat drive their innovation strategy toward the development of creative products. 1.1.a Image1: Creative Business Model (The Work Foundation, NESTA, 2007)Then they are the Creative Process Business. These are mainly professional services enterprises that delivercreative services to clients. They are mainly business-to-business driven and need to develop strongrelationships and trust with their clients. Design driven consultancy agencies, like IDEO and innovation hubsare some examples of this nature. They use creativity to drive their clients initiatives into the market and makethem succeed.Finally there is the Media Based Business that uses recurrent media to deliver creative outcomes to acommunity of consumers or businesses that also work to keep them informed or entertain them. Driven by thenew possibilities that are available with new media and the internet this firms are able to distribute a large rangeof creative content being develop by their creative community really facts, and that the key for them. Newstartups such as KickStarter.com and Eatsy.com are based on this model.This three business model typologies, all are based on the commercialization of creative value. Be it on a skill,talent, process or organization of the creative force, its possible to generate value. Today we see a lot how bigcompanies are directly related to their creative preposition. Mapping this companies allows us see how having acreative business model and how they manage to create creative products, process and media, hybrids of thethree main models, and how they achieve to complement them to get a better market position, basingthemselves in their creative not only at one level but in a multiple way. 12
  • 12. [+57] CREATIVE COLOMBIA Creative Product Business Creative Process Creative Media Business Business 1.1.a Image2: Creative Business Models In Todays Companies (positioning map).1.2 The challenge for innovation in developing areas, an overview of the present situation.Innovation climates in developing countries are, by nature, problematic, characterized by: poor business andgovernance conditions, low educational levels, and mediocre infrastructure. This makes clear how thoseenterprise wanting to innovate in this areas are in need of a package of support – technical, financial,commercial, legal, and so on. There is a need to think about innovative approaches adapted to the needs andpossibilities of developing countries. These economies are in need of technological innovation but also otherkinds of non-technological, such as organization innovation and creative innovation, in order to introduce newkinds of products and services in the markets that won’t required of big inversions but can produce new jobopportunities and benefit the local Communities.The creative sectors lack of innovation is produced by a series of weaknesses that are present at individual,organizational, social and governmental levels. The low technical and managerial capabilities of these regionsare the most visible obstacles for innovation to take place in these areas. There is also an absence of educationin the different social leaves. In the preindustrial sectors, where craftsmen and a big portion of the locale workforce is, education is in need of basic literacy and better implementation. In the industrial sectors, moreprofessional and medium-level skills are required. And in the post-industrial phase, where designers thatnormally have been educated in a university are, there is a need of entrepreneurship and leadership attitudesthat could lead initiatives to share more knowledge with the part of the population that is not having access toeducation, a more collaborative spirit.A week business environment also characterizes the innovation process in developing countries. Thebureaucratic climate and poor definition of intellectual property and creative markets, makes hard to 13
  • 13. entrepreneurs to self-start their own business. For this the creators that want to start a new endeavor have toface a lot costs and waste of time.There is a lack in infrastructure and technological capabilities, and this problem is more visible for newbusinesses that don’t count with financial power or business planning. The access to new communicationchannels and low development of Internet business connectivity creates barriers to penetrate the market. Itstrue that the Internet has created a new era for the commercialization of ideas, goods and services, and if itcould be accessible to more people, they will find easer to promote their product and expand their reachablemarkets, this makes part of the lack of exposure that local “makers” and “creator” and their creations have andthat better explained in champed two.There is a little support in research and development for creators. They don’t have access to studies orknowledge that could support their work, something that is very important to innovate not only intechnological terms but also to know the market, trends, legal, etc. Also, Innovation systems are reallyfragmented, there is a high number of small-enterprises some of them operating in informality with a greatcapability to produce but they are completely disconnected from a small number of local and foraging-basedfirms that hold the main markets.In general, these areas are more efficiency driven and their implementation of innovation is in an early stage,but a maturing process has begun and it’s growing fast. Its amassing how globalization and the sharing ofinformation is making this areas develop, and to keep this going; it will be necessary to find solutions to theprevious problems in order to accelerate the innovation level of the countries that present this conditions, notonly in Colombia. The general conditions in a lot of these areas are becoming more positive; education isbecoming more accessible in this days, as well as technology. The new creative business models are giving newpossibilities to establish better collaboration and less vertical organizational models. But for developingeconomies to generate innovation new models with local identity and that are not just implementation of thoseexisting in developed countries need to be established. This new models will need to address the specific needsand the reality of this areas in order to developed their own innovation models, of course it should not beforgotten the rapid pace in with things are evolving in this areas and how already existing models that havedriven innovation in other countries can be used as inspiration for those that haven’t been able to do so.1.3 Local Context. Colombian creative power and the situation for local innovation.How innovation and creative industries are behaving as economic development accelerators in developed areascould also happen in developing economies if the correct direction is visualized and followed by the creativetalent that is emerging from those areas. But for this, a series of strategies should be developed in order tooverpass as much of the problem explained in the last section, that are characteristic of the creativedevelopment of a region. As a specific case study of how this could be proven, in a scenario of contemporaryeconomy, this project will be focalized in the South American Country of Colombia. This is a rising economywith a deep need to organize, develop and make value out its creative industries in order to continue itseconomic growth and become a sustainable economy. 14
  • 14. [+57] CREATIVE COLOMBIA1.3.a Colombian socio-economical frame of refenceColombia is one of the richest countries is the region, South America. It has a total population of 53 millioninhabitants that makes it the third most populated country in Latin America, with really young population thatrepresents 62% of the country. This nation has been witnessing and experiencing an economic change and anindustrial development process, that has make possible a series of improvements in: quality of life,infrastructure, life stile and purchasing power (Departamento Nacional de Planeación, 2010)The country’s social fragmentation is critical, with an accumulation of richness between a few in a high levelclasses, that represent 3,1% of the population, a rising middle class that represents 33,4% and a majoritarianlow income population, 63.5% (Departamento Nacional de Planeación, 2010)As Raul Almeda Ospina defined in the article “The Socio Economic Pyramid in Colombia” (Ospina, 2007) thethree different classes are marked by a series of unique characteristic and are defined based on the purchasingpower and quality of life that locals have. Those on the top of the pyramid can make salary that goes over$3.000 USD. They own their own business and have high acquisition power. Normally consume importedgoods and poses a high education level, they studied at national private universities and some of them wentabroad to international institutions mainly in the United States and Europe, they speak English and in mostcases a third language. They are consumers of Internet and are used to buy online from international and localwebsites, they also download content from the web and are members of social networks.Then there is the people from the rising middle class, they are becoming each time more rich and numerous,whit a meddle salary that goes between the $1,500 USD and $3000 USD, salary that is normally produced bywork or owning a small enterprise. At this level we would find small producers, politicians, executives, teachersand other positions that require certain type of education, that they received from a national private or publicinstitutions, they normally have English as a second language. They are starting to have access to secondnecessity products such as cars and consumer technologies; in general they count with a relative good quality oflive. They have Internet access from their homes and participate in social networks also.Finally the majority of the population is considered to have a low-income level. They are the segment of thepopulation earning a salary below the $1.500USD. They are mainly employed by a company to do differenttypes of work or are really small producers working in informal markets. A small part of this group has accessto technical level education and a big part of it hasn’t even finished primary level education, they don’t speak asecond language. They just have access to fundamental products and posses a low access level to Internet ormedia based services with the exception of television and radio. Most of them are considered to live in extremepoverty and have acces to governmental subsidy plans.In terms of national trading on the last year there where estimated exports for $39 billion in 2010 and importsfor $41billion. The trading structure and positive economic growth of the country is very dependent on the bigamount of international investment done in the country that as a percentage of GDP was around 28% in mid- 15
  • 15. 2011, higher than the numbers reported by Brazil and Chile during the same year. This has been possible afterthe normalization of the local political climate and governmental policies that has been happening during thelast decade, and thanks to a series of campaigns that where launched by the government and industrial sectorsto promote the reestablishment in the national territory of international companies working in the region andto win the trust of international investors. Its main commercial partner is the United States, representing about41% of exports and 27% of its imports. Being Colombia the third-largest export market for the United States inLatin America, behind Mexico and Brazil, there is a high consumption of imported goods. Its major exports arepetroleum, coffee, coal, nickel, cut flowers, and bananas, normally sold to the American and Europeancountries.In the last years Colombian government has also set a series of diplomatic endeavors to open new markets. Thelocal administration has concluded or is pursuing free trade agreements with the U.S., EU, Canada, Switzerland,Turkey, Panama, South Korea, and Japan in addition to its existing trade agreements with Mexico, Chile,Central America, the Andean Community of Nations, and Mercosur.1.3.b Innovation competitive outline of the country 1.2.2 Image1: Colombian Competitive mapping matrix ((World Economic Forum, 2010)Colombia stands out for a large-scale mismatch between the size of its economy and level of economicdevelopment, on the one hand, and on the other the low performance that it has in what has to do withinnovation, and markets developmentIn terms of size, Colombia is a relatively important new economy in the world. When ordering the countries ofLatin America, a region who’s market is considered as one of the most import rising markets of the last decade 16
  • 16. [+57] CREATIVE COLOMBIAand one of the more active during the last years of economic recession. By the size of gross domestic product,Colombia is in fourth in the region, behind Brazil, Mexico and Argentina. In the classification the GlobalCompetitiveness Report (GCR) (World Economic Forum, 2010) published that and that classify the trade,social and technical characteristics of the majority of nations. Colombia is ranked as the country number 32 formarket size, between 139 tested in 2011, and in Latin America is only surpassed by Brazil and Mexico.However, in the Global Competitiveness Index Colombia ranks 68 and is the seventh country in Latin Americaafter Brazil, Chile, Mexico, Costa Rica, Panama and Uruguay. As for the efficiency of its goods market, thecountry is ranked 103. As for his technological readiness is number 63 and in innovation is in position 65among the 139 countries surveyed.This report uses the Michael Porter’s theory of stages (Porter, 1990), and situates Colombia as a efficiency-driven economy, meaning that it competes with its unskilled labour and natural resources as main assets. Thecompanies localized in these countries normally tend to compete on the basis of price and are characterized byhaving low productivity and innovation levels; caused by a lack of industrial, technologies advantages and anumerous but poorly educated working force. Colombia counts with a market that in terms of size is big butcounts with low efficiency levels of its goods and service markets. But by the other hand it has goodsophistication level of its business. The stability in the macro-economical environment also stable and countswith a healthy and young workforce that need more access to education and knowledge in order to be moreproductive and creative. In definition the country looks to be ready to start the transition stage from beingefficiency driven to innovation driven. For this it will need grow in terms of innovation and take advantage ofits big market size by applying new strategies that allows it to raise the not so good efficiency of its goodsmarket. Its typical to companies that operate in this economic transition to start innovating for the local marketas a reaction to the fact that the general purchasing power of the consumer rises and in this way it results muchmore difficult to compete as a producer on terms of price.Chile is a case of a country that because of the inversion done for research and investigation, and good marketconditions have started to be part of this transitional stage. It ranks 44 in the innovation indicator and 28 in theefficiency of its goods market.So innovation and market developing becomes a requirement for any economy to enter in an innovation-drivenstage, where some countries known for their creativity and innovation superiority as the United Kingdom andItaly are. At this point wages will have risen by so much that the local business will only be able to satisfystandard of living of the consumers only if their businesses are able to compete with new and unique products.At this stage, companies and organizations must compete by producing new and different goods using the mostsophisticated production processes, incubating innovation and collaborating with other key players to addressthe savage market. 17
  • 17. 1.3.c the local creative industries definitionAs it was mentioned before, the development of innovation and of the goods and service markets is required.Parallel to this it was also pointed that the creative industries are a key driver of progress in developing areas.Reason way its important to understand how these industries operate in the local level and how they compereand develop amongst the global market for creativity. 1.3.c Image1: Contribution of the creative industries to the economy today.Creative business represent only the 2% of the countries GDP, a disappointing number if we cross thisinformation with the number of people being employed in this sector, that represents around 6% of thecountries total workforce (Revista Dinero, 2010). The situation is not positive, considering that some othercountries of the region, with similar development and cultural conditions as Chile and Peru count with moreproductive creative industries. The ideal situation would be something similar to what Peru has achieved, thisneighbor country has been able to generate more value out of this industries (4% of GDP) using just a smallpart of it work force 2,5%, as it was published by Keith Nurse, in her report about the “Creative sectors in theCaribbean Community” (Nurse, 2009).The development of this type of business inside innovation driven countries, such as the United Kingdom,Korea or Italy shows the relevant contribution done by a well-established creative industries to their economiesand their innovation models are showing a great performance. In the specific case of the United Kingdom, acountry known by its good design and crafts culture, the creative industries had reached a considerable level ofproductivity. Thanks to the support that these industries had been counting with for the last decade, they havebecome a pillar of the U.K economy, producing 7% of the country’s GDP and employing 5% of the country’sworkforce. These sectors have overpassed some of the most typical and traditional sector of English economy,as David parish quote form the 2003 Financial Times Newspaper: “the creative industries in London are nowmore important than financial services to the economy. Employment in the creative industries (includingfashion, software design, publishing, architecture and antique dealing) has topped 525,000 and is still rising,compared to a mere 322,000 and falling in financial services” (Parrish, 2008).This Makes obvious the need for the Colombian development, and transition towards an innovation driveneconomy, to take advantage of the high number of workers used by the creative sectors and start producing 18
  • 18. [+57] CREATIVE COLOMBIAmore value out of it. How these industries sectors are contributing to the economy and how they are able toproduce and operate inside the markets must be understood in order to accelerate the local development ofcreative value.The lack of conscience about the relevance of defining and promoting the local creative industries by thegovernment and industry is proven by the absence of actualized data and indicators about the performance anddistribution of the creative sectors in the country. Some international institutions have been collecting dataabout this topic for the benefit of the inversion coming from private and public enterprises from their nationsbeen done in Colombia. Based in the studies done by the British Council, in Colombia the subsectors that havea bigger number of enterprises conforming the creative industries go like this: Crafts (35.5%), Fashion Design(21,44%), Editorial y Publishing (6,38%), Advertisement (5,79%), Architecture (4.82%). Then the subsectors ofInterface & Software Design, Graphic Design, Industrial Design, Textile Design, Antique, Film & Movies,Radio & Television, photography and music, are small players with less than a 4%. (Docherty, Shackleto, &Morales, 2008) ) 4% . Cr (30 Fashion (21%) aft rs s (3 Othe Interface Design (3,9%) 6%) Graphic Design (3,8%) Industrial Design (3,4%) Textil Design (1,5%) Others: ,Advertisement (5,79%), Architecture (4.82%). Editorial y Publishing (6,38%) - Antique, Film & Movies, Radio & Television, photography music (less than 4%.) De sig n (∑ 3 3,6 %) 1.3.c Image1: The creative industries distribution by number of business per sector (Docherty, Shackleto, & Morales, 2008)So the local creative industries are manly composed by the crafts sector, what is a consequence of the high localcultural tradition in this kind of skilled and talent driven activities. Different kinds of business are seated aroundthe local artisanal work. It goes from the individual reproduction of a local technic, the reproduction of aproduct with cultural DNA or it become more sophisticated as an specialized retail surface for this type ofcreations, like the one promoted by the organization “ARTESANIAS DE COLOMBIA” that runs a series ofstores to commercialize the local craftsmen productions.Then the country’s creative industries are going through an expansion of its design related industries, lead byfashion. Together all the design disciplines (Fashion Design, Graphic Design, Interface & Software Design,Industrial Design and Textile design) represent 33.6% of the creative industries, similar to the Crafts sector.Together they represent a 69.5% o the creative industries. 19
  • 19. 1.3.c.1 Being a colombian Maker. The local crafts sectors case.Making is something that we can all do, but when making becomes part of the local identity like in the case oftraditional crafting, the outcome counts with a great cultural and expressive value that on this days have startedto be more present in the mind of the consumer. The use of natural resources that these types of creatorsmanage also becomes really attractive for the present markets. The quality of handmade is something that thesecommunities dominate. During years the local craftsmen force has become of making a critical aspect forsurviving, and they have achieved a developed skill to produce objects that are very rich in esthetics, materialsand meaning. With a high capacity to adept their development process to a surroundings environment and alimited access to technology and information.The definition use by the National Government or this discipline is: “Crafts is the creative production ofobjects made predominantly manually with the use of simple tools and machines with an individual outcome,determined by the environment and historical development” (Artesanias De Colombia).In Colombia the craft sector is the productive force, composed of people and their capacity for knowledge andtechnology, in which the craft is generated within a geographical, historical, social and cultural development.This productive force is not all of the same kind and can be classified based on criteria such as education,geographical origin, cultural identity and type of trade practiced. Lets start from those coming from the mostrural parts of the country to the more urban ones.With the implementation of low technology and industrialization processes in the typical sectors and theestablishment of making technics from outsized the country, making has become one of the main resources forproducing wealth and involves a big part of the local workforce, from the majority of the population that arethe poorest; those who live in the jungle and those who live in the big cities. A classification of the differentproductive characters that make part of this productive and craft based force; was done in the month of August(2011), in an observation process and analysis done together with the designer Cecilia Arango (Arango, 2011),who is an expert in local . The following are the description of them and their main characteristics from themore rural to the more urban ones:The IndigenesThis kind of creator is who lives and produces his creations inside an indigenous Community. In Colombia,these cultural groups are numerous and each of them is really linked to the surrounding context of theircommunity. The transformation of natural resources into functional objects makes part of the close bond thatthese people have with nature, and the domain of certain technic (like basketry) is more than a trade activity buta cultural and social custom. Because of this, this specific type of makers are really devoted to their hand-madeproduction process, “they count with the patience that characterises those who live surrounded by nature andwhere rise away from the perversions of civilization”. (Arango, 2011)The problem of working with The Indigenas is that due to their in-land and remote location it is hard to establisha stabile commerce relationship between them and the main cities where the markets are concentrated. Thisgroups don’t count with any technical education so all what is expected should be communicated in an oral or 20
  • 20. [+57] CREATIVE COLOMBIAgraphic way, but of course that the complexity of a technical drawing wouldn’t be understood by them in caseof outsource of collaboration.1.3.c.1 Image1: Indigena Maker - Name: Sirahi Paniza /Age: 42 /From: Kuna People, Golfo de Uraba /Education Level: Primary School / Technics: Molas & Textile based CraftsThe CampesinosThey are not part of an ethnic group but still live in remote and in-land locations. Normally they use crafts as aparallel activity to their agricultural labours. They live in more modern and big communities, small towns orvillages. They are used to trade with more populated urban areas transporting their products to offer them intrade and make money out of their production.1.3.c.1 Image2: Campesino Maker - Name: Ramiro Bautista /Age: 49 / From: Guacamays, Boyaca /Education Level: No Formal Education / Technics: Fique (Basket Weaving)Urban EmigrantThese types of makers are from the same origin as the Compassions. The main difference is that because oflocal conditions (as violence or lack of opportunities), they where forced to move into mayor urban areas. Theylearned their talents where they where born, and now in the city use them to generate an economic income.They work for formal manufacturers and some times have their own workshops where they work for designersor final costumers. 21
  • 21. Gypsies & HippiesThey were born in urban or rural areas, but have no craft tradition in their family or community. Normally, theyare travellers who operate in an informal commerce, going from town to town looking for fairs or local marketswhere to sell their production. They are innovators, in the way that they normally use traditional crafts technicsas seed craving (Tagua) or bags knitting, to produce new products that combine those technics with new shapesand colours in order to make them more appellant to the urban market.They are not as detailed with their technics, its more about being free and making money out of a personalexpression for them. Contacting them and controlling the production that they do is easer than with ruralcraftsmen. Normally their products involve low cost material as natural fibbers, seeds and cheap metals and thelabour cost they charge is also low. 1.3.c.1 Image 4: Gyssies & Hippies - Name: Camila Toro / Age: 23 / From: Tunja, Boyacá. / / Education Level: High School Drop Out/ Technics: Leather work, weaving and others.Urban CreatorsUrban creators come from metropolitan areas, and it was there where they were instructed in the labour theyrealize. Their knowledge was acquired by one of three different ways: Learning by doing, knowledge transferform a more experienced craftsman or from formal technical education institution. There education level, beingthe more advanced between craftsmen, allows them to follow a higher degree of specification, and theprocesses they use are normally more technology based than those used by the other types of craftsmen. Theyalso tend to charge more for their work. They work for small, medium and large manufacturers and are willing 22
  • 22. [+57] CREATIVE COLOMBIAto work for designers and final costumers if they count with an own workshop and if the clients are capable ofpaying what they demand. `1.3.c.1 Image 5: Urban Creators - Name: Segundo Morales / Age: 48 / From: Bogota, Cundinamarca. /Education Level: Technical Degree / Technics: Leather Work, Shoemaking1.3.c.2 Being a colombian Creartor. Local design sectors case.Design culture in Colombia is just becoming relevant. This discipline is relatively new and still hasn’t penetratedin the Colombian cultural DNA. The first design practice done in Colombia were done by a few industrial andgraphic designers that were educated in international schools and then came back to start their own companiesmainly in the furniture, graphic and editorial sectors. A few designers in the sector had become recognizedfigures in the local design world, and have been able to reach international markets by developing high qualityproducts thanks to the good adaptation of productive technics and a descent product development that allowsthem to offer a good quality product to the international market. A company such as SERIES, created by theindustrial designer Mauricio Olarte, has been present in the local furniture design business from around twodecades and had been able to introduce their products to international markets, like the United States, Europeand Middle East.Fashion is the most advanced design discipline in the country. It represents 21% of the creative companies ofthe country and produces around 2% of the country’s GDP. Then there are also other sector with activities thatrelate to design such as: Industrial design, web an software design, interior design, graphic design, textile design,interaction and experience design and branding.The first characteristic of the companies in the national design industries is that they are normally small andnew companies. They are small enterprises run by a single individual or a small group of people. In the fashionindustry 90% of the business are constitute by single owners, in industrial design business 76% of them areconstituted in the same way and 18% are constituted as a commercial corporations. In the graphic design areathe number of commercial societies is higher, 47% of them follow this characteristic and a single individualowns 51%. The majority of companies that were studied by the British council (Parrish, 2008), with the 23
  • 23. exception of the graphic sector that is more established with companies that had been functioning for morethat 5, the companies in the rest of the design sector are mainly early stage startups with no more than 1 year inthe market, In the same way most of this enterprises are characterized by their low value, their assets andliabilities are not superior to $10.000 US.In general the design driven business are mainly focused on the product they offer, little consulting is done forthose that are starting projects that count with poor support tools to develop their products for the business orconsumer market. In the same way that we were describing the creative business models based on the valuepreposition that they offer to the market we could do the same analysis for the local design drivenorganizations of the country: Creative Product Business CECILIA ARANGO Creative Media Creative Process Business Business 1.3.c.2 Image1: Creative Business Models In Todays Colombian Companies (positioning map). 24
  • 24. [+57] CREATIVE COLOMBIAChapter 2: Defining the problem.The under-appriciation of the local creative value. 25
  • 25. 2.1 Introduction to the problem.First we explored the creative industries and what have made of them an important force for todays economicgrowth of developed economies and how they can signify transformation leverage for developing countries.Their capacity to generate economic and cultural value and their ability to drive innovation and generate asignificant amount of jobs are; just some of the evidences, that more cultural developed economies like theUnited States and the United Kingdom have taught us. We explored the subsector of this industries and classifythem, understanding that they are not just cultural industries but because they also deliver an expressive andfunctionality value, responding to the study or forecast on needs and demands based on the consumer, theyrepresent a perfect breach between the market, defined in a cultural context, and the traditional industries thatoperate in the middle of this same context .Subsequently we explored the problem of innovation in developing areas, a series of complications that areslowing down the maturation process of this type of industries in regions that are not able to link innovationand industry. What took us to a specific case study, Colombia.We sketched this Latin American countries’ socio-economical context, and were able to draw a competitivenessmap of it, understanding that innovation should be the solution to overcome a series of problems that areaffecting the countries’ development process. It was patterned a low efficiency of its cultural industriesgrounded on the little economic contribution they do to the countries’ productive indicators and the highamount of workforce that they employ. Going then deeply into their productivity data to understand what arethe key sectors to propose any transformational strategy; getting to the conclusion that there is a big tradition inthe crafts disciplines that are normally composed by a poor but numerous and talented human resource, theproductive force. And a rice of the design related disciplines, which are not well articulated with the traditionalindustries.At this point the problem is to general; it will be needed to understand in a systemic approach how the playersare being defined and how they interact amongst themselves and with the reachable consumers. Why are thedesigners not being involved in the productive sectors of the country? Way the traditional industries andinstitutions are not reaching the expected innovation levels and why their goods markets efficiency is so bad?Can the efficiency-driven model that characterizes the country’s economy be transformed into an innovation-driven model with designers as leaders of this transformation? This are just some of the questions left after theobservation done during chapter ones, here we will try to spot the problem inside the two sectors and theconsumers complex ecosystem, going to lower level to understand possible approaches that could give theanswers to this questions.2.2 Defining the players: Creators, Makers and ConsumersThree different types of clusters compose the normal system in which new creative outcomes are conceived:the consumers, the creators and the makers. The three of them are interconnected during different steps ofthe creative process: create, produce and commercialize. 26
  • 26. [+57] CREATIVE COLOMBIAThe first group, The Consumers, is composed by the community of people that are interested in buyingartifacts, goods or services with a creative component. They are driven by a necessity or desire that influencesthem to acquire creative content with an intangible and emotional value. The market for these creativeoutcomes can be found in a local or international frame, each of under specific circumstances. This people arelooking for expressive content, goods and services; to please their necessities of differentiation and self-fulfillment. With new media, Internet, social networks and new technologies the access to creative content hasbecome easer for this people. Now they have access too much more information about what they consume,information that talks to them in a personal way in order to influence its decision making process. Now itseaser for them to find new ideas and have access to them, internet retailing, blogs and a complete new series ofchannels being use by this crowd to spot newness .Then there are the Creators; those eclectic people capable of creating innovative ideas using a design-drivenapproach to problem solving are the ones in this group. They are the ones who feed the system with non-conventional problems, spot opportunities, and find directions and solutions. Being a “Creator” demands aholistic approach to problem solving and a non-linear way of thinking, in order to find innovative ideas. In this group we find two different types of subjects: the “Designers and the Amateurs”. In the designers cluster we find leading designers, people with certain level of experience in the design industry and who have been able to introduce their product to local or international consumer driven markets in a successful way and/or have been able to work for international brands, as the fashion designer Silvia Tcherassi1(see 2.2 Image:1), who’s name is known in the fashion world at an international level, being part of the international runways in Milan, N.Y, and Paris and who’s design has reached international apparel manufacturers as PAYLESS SHOWSOURCE2.2 Image1: Colombian Fashion During the development of previous projects they have been able to explore theDesigner , Silvia Tcherassi, forPayless Shoesource markets and along the way have established different kinds of relations with the manufacturing and services sectors (the makers). Next. there is the other kind of designers; the “New Designers”. They are new in the industry, with a resent degree in a design related discipline, they are seeking ways to gain exposure amongst the consumers and learn how to deal and create business relations with providers and manufacturers, but because of the their lack of experience and contacts they are struggling to launch their professional carriers and scale their ideas. The case of the local design studio DosUno, with base in Bogota, leaded by the 29 years old Israeli Assaf Waxter, who moved to Colombia in 2009 after 2.2 Image 2: Industrial Designer associating with the Colombian designer and industrial engineer Pablo Fog. Assaf Waxter from DOSUNO Together they have conformed a multidisciplinary tam to develop locally DESIGN STUDIO1. See more about the Colombian fashion designer Silvia Tcherassi at: http://www.silviatcherassi.com/enter.html 27
  • 27. produced products with a high content of innovation and awareness about sustainability, one of their mainphilosophical drivers. Now they are trying to get in the market by introducing their products in small shops andfinding promotion of local media and magazines. Parallel to this they participate in local and internationaldesign competitions to sustain themselves. They are also interested in promoting their creations in internationalmarkets, but they don’t count with the distributional channels to promote the products outside. Recently thepossibility of going into distributions design networks as KICKSTARTER and ETSY was discussed with them.This discussion took place during the interview (Fog, 2011) to discuses their strategies; they were reallyinterested but new little about these support systems and how they work, but after explaining them thediscussion led us to the conclusion that introducing the products in this channels would be possible but it iscomplicated since they normally don’t connect their money manage system with Colombian bank accounts,requiring them to not only solve logistic problems of distributing to international clients but also how tomanage payments from the Country from where this networks operate.Then the “Amateurs”; are the people that by trade or hobby had become honorary members of the “Creators”cluster. People who during their work as craftsmen or manufacturers had achieved innovation by applying aseries of design-driven processes to their productive systems. For example the case of a carpenter who hasachieved a high level of innovation by developing a costume made series of tools, or found the way to apply anew material in order to generate a unique and innovative product. In both cases they are people with a skill tomanage and drive creative process during their work, even though if its on an unconscious way, and areconstantly seeking to come out with new creations and not limit themselves to the reproduction of a talent, skillor process. This seeking for “new stuff” allows them to identify and solve problems in such way that theircreations can be considered as innovative achievements.Finally the Makers; composed mainly by small and medium sized enterprises from the commercial,manufacturers and craftsmen industries. Are those who had established a productive system, based on an old(thread and needle) or new (3D printing station) technology to transform materials or work into goods andservices? Their value is generated by re reproduction of a certain talent, a skill or technic to produce big orsmall series of certain product. Here we would find the local artisans, small and medium size enterprises fromthe productive and manufacturing industries. Makers can be innovation-driven manufacturers or efficiencydriven. 2.2 Image 3: Industrial The Players Definition; Consumers, Creators, Makers 28
  • 28. [+57] CREATIVE COLOMBIA2.3 Problem Overview. The under appreciation of the local creative value.There is a collective ignorance in the country about what its creative value can offer. The country ignores howdesign, creativity and innovation can become transformation drivers for the country’s economy and how can itsignify a leverage of change for local industries. As it was mentioned before, the value of creativity is of greatimportance for the development and introduction of innovation amongst creative and productive processes.Unfortunately in Colombia the innovation performance of these industries is not positive and new strategieshave to be conceived if it wants to stop being behind the main region competitors, such as Peru and Chile, thatin terms of value, achieve to generate much more out of their practice of creativity; reflected by thecontribution that their creative industries do to their GDP and how much jobs they offer amongst the localworkforce (see 1.3.c Image 1).There is a significant amount of people being employed by the creative industries, but they are not being able togenerate the enough value out of their creations, lacking the opportunity to introduce their creations as winningproducts on the market. This problems comes from a series of factors: a) Generalized fear to take risks, a problem for innovation. b) Low exposure of the “Creators” and their creations. c) Scarcity of support and lack of business planning amongst entrepreneurs. d) Lack of collaborative spirit amongst the players.2.3.a. Generalized fear to take risks, a problem for innovation.According to Tim Brown, founder of IDEO and one of the world’s foremost proponents of design thinking,there exist two main obstacles in the path of every disruptive idea: “Gaining acceptance in one’s ownorganization and getting it out into the world… More good ideas die because they fail to navigate thetreacherous waters of the organization where they originate than because the market rejects them. Any complexorganization must balance numerous competing interests, and new ideas… If it is truly innovative, it challengesthe status quo. Considering all of these potential obstacles, it is a wonder that new ideas make through at all”(Brown, 2009).And the case amongst the local manufacturers and organizations in the local context is exactly that they resistto aloud innovation into their productive structures. As it was mentioned in chapter one, the innovation levelof the local manufacturing industries is not good. In general terms producers, most of them small and mediumones, still believe that their productive systems should be based on the efficiency of their processes and directedto set their competitive strategies so they can compete in the arena of price, and quantity; a typical behavior indeveloping economies. As a result to this; they are resisting to involve designers that at the end are the key forinnovation, into their productive systems.The relationship between the design and manufacturer sector is fragmented because of this generalized fear.Characterized by a few amount of opportunities for new designers to get a job at their companies. Not onlythere are little chances for designers to get a job, but also for those who find one will have to work under reallybad salaries and working conditions that will kill their creativity. The industrial designer Cesar Augusto 29
  • 29. Zambrano who is a local teacher at Universidad Nacional De Colombia and an important opinion voice forethe national design industry, during the interview done for this project expressed: “During a series ofinvestigations I was able to figure out that in average, a Colombian designer gets pay something between 70%and 80% of what any other average professional, like an engineer or a lawyer is getting paid” (Zambrano,About work conditions for Colombian designers, 2011). Also by crossing information found on ones ofZambrano’s economic reports about the national design sectors (Zambrano, How much designers make incolombia, 2010), that stated an average salary of $12.000 US per year for a new designer, that then comperedwith the data published in the Survey of Design Salaries 2011 (AIGA, 2011), saying that the same kind ofdesigner gets an average of $40.000 US in the United Stated, clearly pictures with numbers how the localindustry underestimates the value of local designers.There for those who accept this poor salary conditions, comes the other problem. The manufacturingindustries, mainly those of small or medium size, prefer to copy design coming for other countries, mainly theUnited States and Europe, than developing new products. The normal behavior in the fashion and furnitureindustries is to find nice and trendy American or European design in magazine and internet and adapt it to thecapabilities of their industries, then sell it as their own creation to local markets or what is worst as imitationsbranded with the name of the original international brand. This is making designers to get demotivated, theylike to create not to copy, and because of this lack of creative motivation they won’t stay for long working for asame company , what at the end will affects the innovation process of the company by not allowing them toestablish a lasting design team able to generate a corporate design identity.But the fact is that with the development process that the country has been going through, the opportunitiesfor those who won’t take the risk and innovate are becoming rare. The economic development in the country ischaracterized by a general rise of wages, there is now access for the masses to acquire better and less basicproducts that the ones they could afford before, but most of what they are consuming at the moment areimported goods brought to overfill the local demand and lack of “Colombian Made” products to consume.This situation has brought out the need for producers to develop new strategies that will allow them to comeout with new and better products to satisfy and address this new demand being able to compete withinternational brands established in the local market. A dark future waits for those who won’t accept to take thisinnovation challenge.Some few examples of good practice of innovation and how this can make the local design industries moresustainable in the actual markets are present in some of the leading design-driven companies of the country,that demonstrate the benefits of overpassing this fear to change. One of them is the case ofMANUFACTURAS MUÑOZ2 (MUMA), a local furniture producer with more than 40 year in the market.They are the only company in the country that has ever been awarded with the REDDOT DESIGN AWARD- with their Menta chair (MUMA, 2011). The company has been a pioneer in innovation and has always beenin the hart of the local design industry, since it developed the first chair in polypropylene - the Mariposa chair,until now. Thanks to its philosophy that establishes design as a key wining strategy for their commercialactivities, they are always working in how to apply last generation materials and 100% Colombian creativity,2. See more about MANUFACTURAS MUÑOS at: http://www.muma.co/ 30
  • 30. [+57] CREATIVE COLOMBIAcoming out of its designers team, merging them together to generate an innovative product that is connected toglobal and local trends and will allow them to reach the top of the local market and be known for its quality andfair price amongst international buyers.Cases as the one of MANUFACTURAS MUÑOS are strange amongst local manufacturers, innovation hasstarted to show its advantages in some of the leading and big companies but is not the case amongst the smalland medium size ones, those who don’t count with this creative conciseness and are not willing to take the riskand innovate because they think that creating new thing is expensive and that those creative people don’t knowenough about the market to assure the success, and that doing it would take a lot of resources that are alreadyassigned. And in fact it is expensive if we understand the limited economic capacity of this companies, in mostcases they don’t count with the available money to hire good designers, something that is evident in the lackoffers available for designers, that are supposed to be innovation drivers, to work in national industries.2.3.b. Low exposure of the “Creators” and their creations.The “creators” and small “makers” are lacking access to potential markets. The majority of them will say thatthis is because they don’t count with the means to run expensive communication campaigns or set themselvesin stores in the main commercial spots of the city, but the problem is more complex than that.The main problem is that the small enterprises started by “creators” and “makers” normally don’t have theaccess to physical or virtual channels to reach clients. This narrows the offer amongst the market that in settledaround the geographic location of the company. Most of this business are unique placed, the majority countingonly with a workshop or home business as their unique commercial establishment, some few with a store thatrepresents big part of their overhear expenses and that in most case are not able to support due to high price ofcommercial establishment in the country. As the studies done by the British Council to define the typology oflocation in which the creative companies in the city of Bogota operate revels; In the crafts sectors, 93.9% countonly with one commercial establishment and just 6,1% have multiple selling points, 9% of them work and dobusiness from their place of residence. In the industrial design sector, almost all of the business 98% countswith one single commercial establishment and just 2% have multiple selling points and 11% of them work anddo business from their place of residence. In the fashion business a total of 100% are unique locations and 30%of them wok in their residence place. And similar with graphic design business were 92% of them count withjus one commercial point, from which 22,6% are established in the same place were the owner lives (Parrish,2008).This looks like a strong explanation of why the creations are not reaching the markets, they have centralizedpositions with low ace to potential buyers. Obviously this not the only reason found along this investigation,and maybe if would have been during a market analysis done before the Internet boom that characterized ourcontemporary lifestyles. Its obvious that the only way that a producers can set distribution channels is not byhaving a store, they could establish commercial relationships with retails or apply new media based channels asInternet and Social Networks, those that have been changing the ways consumers use to purchase newproducts and have been making things easer for the producer not only to promote themselves but also togiving them that chance to complete a commercial transaction in a virtual way. 31
  • 31. This web-solution looks really convenient for small producers, the Internet has become an ideal channel toreach clients located far from the location of the businesses. But in the local context the situation is far away ofbeing like this, a restricted access of business to these technologies is reducing their possibilities to access thisweb market. On average of 100 companies dedicated to the craft production and commercialization only 6 ofthem have a computer in their working place and just two of them count with access to internet. Of course isbecause a lot of them are located in rural areas of the country that don’t count with the communicationinfrastructure and the money to afford acceptable level of connectivity. In the design related sectors thesituation is less dramatic but stills bad, on average every company has three computers and one of each two hascomputers is alto 6 for each 100 and just 4 of them are connected to Internet.To generate new organizational models and communication strategies to scale the size of their ideas in themarket, with limited economical resources, is the challenge. The ideas are good but need more than FacebookFront Pages and fans lists to make themselves popular. The creative forces of the country are in need offiguring out better ways to communicate the story of their creations to the public and set the proper channelsthat could aloud them to deliver this message to a wider group of people. The technological barrier has to beoverpass and new field need to be explore.2.3.c Scarcity of support and lack of business planning amongst entrepreneurs.The slight job opportunities available in the market for designers and the bad conditions, under which thosethat found one have to work, is creating a big entrepreneur wave to rice amongst the young creators. A seriesof multidisciplinary design studios like DOSUNO DESIGN3 and IONN GROUP4 are beginning to befounded by young designer that because of the lack of opportunities in the job market decided to go solo,create a multidisciplinary work team and start looking for new clients, inspired by the design-thinkingphilosophy, something that is not easy to introduce to the market more if the possible clients in the industry arenot open to introduce innovation to their companies as it was mentioned before. For this reason the youngstudios are struggling to find adequate revenue streams. The independent designers and design studios arebeing forced to lead and develop their own ideas, something that requires money and time they don’t countwith. Since the financial and legal support available in local backs, companies, private and public institutions arenot normally available they are drifting.The support networks available for these start-ups or early stage-business are rare. There is a lot of internationalinvestment going on in the country as well as local investment done by the private sectors of the industry butnone of them is getting to the designers, it goes to the industry, an industry that is not welling to involve design.This kind of funding is also distributed by a series of venture capitalist and business angels in the region, butthey normally assign these funds strictly to some specific industries such as telecommunications, software andpharmaceutics and more advanced ventures. Like the Spanish telecom company TELEFONICA, that justlaunched WAYRA5, a private initiative that promotes local technological development in the areas of mobile orweb communications that could represent them a benefit for their own establishment in the local market.3. To see more about DOSUNO DESIGN go to: http://www.dosunodesign.com4. To see more about IONN GRUPO CREATIVO go to: (http://www.ionngroup.com)5. See (2.3.c.1) WAYRA case study. 32
  • 32. [+57] CREATIVE COLOMBIAA weak establishment of copyright laws and the lack of incentives and governmental funds directed to thecreation of this kind of start-ups, shows that the problem is not only at a industrial or organizational level butalso in a more macro way, national support for this creative initiatives is also needed. The government hasexpressed the necessity to promote innovation and entrepreneurship and is working to define the game rulesfor this challenge. There has been some initiatives like the one achieved by creating the law 1014 on 2006(Universidad Autonoma De Occidente, 2007), for the establishment of a entrepreneur culture as they call it, and thecreation of Ley Lleras (Reyes, 2011) (being studied by congress at this moment for its approval) that seeks todefend the copyrights of content, creators and creative works. These initiatives are creating the legal bases for anew beginning. But the truth is that the applications of these laws that seek to promote and protect the creationof new business and the introduction of creative minds in the traditional ones is far away of the country’s reality,now there has to be a creative boom able to build over this the new national reality.But limited financial, strategic and legal support are just the external problems making more difficult to new“Creators” and “Makers” with innovative ideas to prosper. There is an internal reason inside their own way ofplanning and executing their ventures that needs to be solved before any external intervention can generate apositive and disruptive impact.They are lacking a winning strategy to fulfill their purposes, or as Alexander Osterwalder defined in his bookBusiness Model Generation, they are lacking a business model: “ the rationale of how an organization creates,delivers, and captures value” (Oswalder). Since the first problem that was mentioned in this section, the lack ofgeneralized fear amongst the industries and productive sectors to take risks can be explained in the reducedcapacity of “creators” to define a clear value preposition and use it to build strong customer relations. And thesecond problem spotted shows this as well, the lack of exposure that new “Creators” and small “Makers” aregoing through, can be reduced to the lack of having defined the proper communication channels to address apoorly defined customer segments.In general it could be said that the creative and productive main forces of the country lack education in how toset their business going and the tools that exists for this matter. An important figure reveled inside the studydone by the British Council amongst the Colombian creative industries (Docherty, Shackleto, & Morales,2008) shows for example that in the crafts sector only 36,2% of the business count with a updated and properbalance sheet of their activities and 26% of them don’t have any financial record of their businesses. In thedesign related industries the situation is slightly better; in the fashion sector only 27.5% have a balance sheet, inthe graphic design and industrial design sectors, they area a little more aware about this issue, maybe because ofits personal counts with a better level of education, but still only 58% and 51% respectively have balance sheets.What gives us a picture of the poor business planning that is going on here.Related to this business planning lack it becomes interesting that fact that in The Global CompetitivenessReport 2010–2011 (World Economic Forum, 2010), Colombia business sophistications is mentioned to beone of the competitive advantages of the country but this is not the case of the creative industries. Why is this?The only reason that comes to my mind is the same that is being argued here and its that in general the creativesectors of the country are badly supported and poorly educated in business terms, it would be much more easerif the creative and productive new enterprises counted with the same level of strategic and business support 33
  • 33. that telecommunications start-ups are counting with. They are in need of business planning and if they can’tafford to outsource this job they will need to be instructed and supported by those who know how, and arecreating “sophisticated business” as the world economy forum said, in order to do it by themselves.2.3.c.1 WAYRA case study Wayra is a private initiative made by Telefonica, a Spanish telecom company that operates in Colombia. Its objective is to promote technological startups in the Latin American Region.Thanks to the high entrepreneurship environment that they were able to spot during their previous activities inColombia, the Spanish company decided to start this model in Colombia, and after finishing the firstconvocation, they decided to move into other countries as Peru, Chile, Mexico and Argentina.For those that have a new idea in the technological area, developing a new website or a mobile basedapplication, this campaign offers financing, management consultancy, technical support and physical space towork. As a benefit in return, Wayra is entitled to a share of up to 15% of the capital of the new company.In the first edition of this initiative, that took place on the month of July 2011, a total of 487 ideas werepresented and a total of 10 were selected to develop. The selected project will count with six months at theWayra Academy, a physical space of 400 square meters, were they will be assisted to develop their ideas and willcount with the support of strategic partners that Wayra has found in the region, like: Endeavor Colombia,HubBog, and some other private and public institutions. The winners will also count with a capital that couldgo from $30.000 USD to $70.000 USD depending of the maturation and necessity of the initiative. After theseeding period is completed, a new convocation will be available and hopefully the number of ten selectedprojects will be raised. The projects that are successfully developed during this period will still be promoted andwill receive support to find business angels for the future stages.Some of the winning proposals during the 2011 convocation were:-Yimup, a marketing, distribution and diffusion system for the national musical industry. With this platformartist will be able not only to distribute and promote the ideas but also develop their creation by themselveswithout the help of any 3rd party producer.- Cubby.Co, a cloud based platform for the administration and management of customer relationships for thesmall and medium size local enterprises that is really easy to use.As Telefonica’s president to the Latin area, Jose Maria Alvarez (Academia Wayra inicia operaciones con sus10 seleccionados , 2011) Wayra initiative shows how the creative talent in technological development ispresent in the country, and what is more interesting is that it protects the development and acceleration ofprojects, motivating the creators to stay in the country, and promoting the sustainable development of localtechnologies. 34
  • 34. [+57] CREATIVE COLOMBIA2.3.d. Lack of collaborative spirit amongst the players.As we keep exploring the problems amongst the players and start studying the systemic relationships thatinterconnect the parts of the system we are able to find a generalized individualism and disarticulation of eachpart. The business people and some local industries count with business sophistication and by the other handthe designers and small producers are lacking business knowledge. The designers count with access to newmedia and are experienced in innovation processes but lack the workforce and financial support to start, andthe same time the small and medium size producers are lacking the access to this new communicationschannels, need to apply more innovation-driven strategies and have what designers are missing that is theproductive force. So it seems as each player is lacking something that the other player haves.As Tim Brown “Challenge your organization to think about how it can spend more time doing collaborative,generative work that will produce a tangible outcome at the end of the day—not having more meetings…Make it as productive and creative as possible. Building on the ideas of others is a whole lot easier when thebuilding is happening in real time and among people who know and trust one another. And it is usually a wholelot more fun”There is a need for those who have a higher education level to share the knowledge that they have with thoselacking it. There is little or none involvement of the design community with the crafts community, and theycould really help them to give momentum to their technics and business by proposing new formal expressionsand how to empower their productive capacities to develop new solution produced in a more efficient way, thisway the artisans could stop being known only for their technical capacities and really explore new businessscenarios. Universities and industries need to involve more design to create new business prepositions andshare more of their previous collected knowledge and capital with the new entrepreneurs and creative minds, asTELEFONICA did with WAYRA6. In this way they could open new markets for themselves, be it a big orsmall idea or a small or large business, putting together the creative and productive classes will only driveinnovation in each of the involved parts.These collaboration strategies should promote multidisciplinary relations that can find new opportunities anddevelop truly innovations, there is a high necessity to connect the players in a creative atmosphere were newideas can come to life and what is more important that recognizes to each player its part. If the resistancepreventing the “Creators” of being hired by the industries internal organizations persists, maybe they don’tneed to incorporate them permanently maybe they just need create cooperation policies together with designersand design studios to assist them during their innovation process, like happens in tally between the designers,entrepreneurs and the manufacturing industries, and that has always been one of the biggest innovation driversfor this European country.6. See (2.3.c.1) WAYRA case study. 35
  • 35. Chapter 3:A Desing-Drived Aproacch to support the local creative business 36
  • 36. [+57] CREATIVE COLOMBIA3.1 Business Design as a trasformation leverage for the local creative and productiveforces.In the last section we were able to identify a series of problems that were persistent at a systemic level, in whichthe interaction between the parts (Creators, Makers and Consumers) were presenting a series of barriers thatwere spotted as the main reason for the regions low innovation level. But being the problems so complex asystemic solution of the same complexity needs to be developed. A solution capable of accelerating innovationlevels amongst the productive force of the country; a solution that holds designers as main innovation sources;them, as design thinkers have a non-linear way of thinking and do problem solving in a way that could allowedto tap all capacities that each part of the Maker-Creator-Consumer system have, but that are being misused bytheir more traditional and conventional solving-problem practices. Business design gives us the possibility toapproach the problem in a non-conventional way, to generate innovative solutions for the problems.It’s multidisciplinary and non lineal approach to generate new business, based on design driven methodologieswith a high capacity to run research, spot new opportunities and understand the players and the markets willgive us the possibility to find new ways of helping the local creative forces. They need to find a way to innovatein their offer, communicate this value to the market, and collaborate; in order to make their businesssustainable, not only in a “green” way but also sustainable as a fissile and self-sufficient businesses.This solution should involve all the players of the system, leading them to a more collaborative way of working,where new interdisciplinary and disruptive outcomes can change the course of how things are being done in thelocal productive and creative sectors and give their businesses better ideas to offer to the local and internationalmarkets.The methodology of setting business through design has shown to be able to generate sustainable business ofthose who traditional economics that where impossible to make profitable. An example of that is what theItalian Organization, SLOW FOOD , has been able to achieve by redefining a complete business that sees thealimentary industry from the point of few of local producers and has manage to create for them new channelsto expand their business and position themselves in todays markets.3.1.a SLOW FOOD Case Study This Italian non-profit member-supported association, was founded in 1989, in Italy, to counter the rise of fast food and fast life, the disappearance of local food traditions and people’s dwindling interest in the food they eat, where it comes from and how it tastes. It is a global, non-profit organization with supporters in 150 countries aroundthe world with a commitment to their community and the environment It opposes the standardization offood and culture, and the unrestrained power of the food industry multinationals and industrial agriculture. 37
  • 37. They have over 100,000 members, as well as a network of 2,000 food communities who practice small-scaleand sustainable production of quality food. Creating this community of creators and co-creators is a mainactivity in which collaboration enables small producers to protect the identity of their products.For example The National Cacao Presidium (Slow Food) was created in response to the diminishing numberof productive national trees left in Ecuador, that where in risk of despairing by the establishment of oilextracting multinationals in the region. Its aim is to assist the indigenous cacao farming communities in thefermentation and drying of their cacao beans and help them obtain better prices on the market. It helpsproducers in producing chocolate in the premises of the cooperative and is one of the few examples in wherecacao processing is being carried out within the same cooperative. Slow Food is also working with the localproducers to prove to the Ecuadorian government that cacao production represents a viable alternative to oilconcessions to foreign companies and could serve as a cash crop and at the same time provide enormousbenefits in terms of the environmental conservation of the region.The secret of this organization and relevance for this project is how after doing the scouting and selection ofproducts with a high local identity and super top quality standards, set by them, are committed to create newdistribution channels and communicate on campaigns that inform the consumer about the company identitybut also informs it about the origin and authenticity of the product ant its producer and the personal andenvironmental benefits of consuming the products they promote. Something that has become a winning whenit comes create successful relationship with new markets, based on the new trend of back to the origin or backto basics.With the creation of Eataly, a food retails the company has accomplished to take Slow Food philosophy into aconsumer driven experience that reflects what the company promotes. With it, they are also opening a new andcontrolled market platform with a top selection of alimentary products that they select, price, promote anddisplay.They are a classical and very clear example of how with the write support strategies and business drivencouching the small producers can compete and survive in a world that looks dominated by big multinationalsand corporations.3.2 What is business design?A new approach for businesses innovation process.The Roterdam School defines this methodology as “the integrative way of design - thinking and problem-solving that can be applied to all components of business”.Design is characterized by its deep understanding of the user, creating solution to fix what is missing or failing,collaborative prototyping and continuous modification and enhancement of ideas and solutions. And latelydesign started to apply its “design-thinking” capacity to solve not only the stylish and visual look of products,now it is getting involved in a series of new areas where the same approach can lead to never seen beforesolution. “Whether the goal is to develop new products or services, create new ways of marketing to customers 38
  • 38. [+57] CREATIVE COLOMBIAor reinvent an entire business model, ‘design thinking’ helps get bigger ideas, faster and more efficiently. Webelieve the mindset and methods behind great design are the same ingredients for successful Business Design”(Rotman School, 2009).The application of design thinking is a relatively new methodology to approach problem solving by having amultidisciplinary, user centered and systemic approach. The use of this methodology to generate new businessis what makes Business Design a truly applicable tool in the cases of Colombian innovation problem and couldlead a way to solve the problem of exposure and collaboration, amongst others, that are having the creativeindustries. A series of problem that should be thought and approached in a systemic and multidisciplinary way,then, it could really become a main tool for the local creative force. As Tim Brown stated in his book “What weneed is an approach to innovation that is powerful, effective, and broadly accessible, that can be integrated intoall aspects of business and society, and that individuals and teams can use to generate breakthrough ideas thatare implemented and that therefore have an impact”. (Brown, 2009). And that’s the approach that DesignThinking gives. It is that non-technological innovation driven process that allows people to innovate with anyhuman, natural, economic or technological resources that are available for them. It’s the other way of engagingthe problem of what the country is doing now; it’s not about a technocratic view of innovation, the same onethat has put us where we are, and that is becoming each time less reachable and sustainable, now the wayshould be lead by a more human approach to innovation.The Design Thinking Methodology is a powerful tool for innovation and it has become so powerful that somegiants like General Electric, Procter & Gamble and Philips Electronics that are using and obtaining the benefitsout of it not only in the development of new products, technologies and services but also in an organizationalway to set new strategies for addressing the market with Business Design. One of the creators of this brilliantidea and pioneers in involving design methodologies to business settings is IDEO, a company that wasfounded by the father of Design-Thinking Tim Brown. In his own words during a TED Talk he defines designthinking as “a discipline that uses the methods and sensitivity of designers to match the needs of people withwhat is technologically feasible and what viable business strategies can convert into customer value and anopportunity to the market." (TED TALKS, 2009)This methodology, makes design go beyond the style or formal boundary but introduces its thinking methodsinto completely new action fields; be it a business, social venture or any other problem that need to be take care.A couple of decades ago there was an idea that design was only to operate as stylish process for the products,its formal characteristic and communication but now design has been proven to be applicable to a series newchallenges. The way, in which designers use creativity can lead to innovation to other sectors, making them tothing in a non-conventional way is the goal. So not every designer has the capability to be a business designer,and not all business designers need to be designers. In fact this methodology states that design-thinking andbusiness design are only achieved inside multidisciplinary teams able to challenge one an other in a way thatdifferent ways of approaching to the problem could be visualized, each of them supporting the view point oftheir specialty. 39
  • 39. The main pillars of the design thinking methodology are: take into ideas as quickly as possible in order to failearly and learn from mistakes, working with an interdisciplinary teams, prototyping ideas, and building acollaboration and symbiotic relationships between all the involved parts from the beginning of the project, be itthe producers, designer, engineer and even the customers; by making him participate in an active way in thedevelopment of the things that we uses.The importance of the interdisciplinary groups and collaboration dynamics that design thinking states are notjust a simple addition of each single part, here 1+1 is not 2, here the outcome is grater that the addition of itsparts. With this multiple approaches to a certain project its much easer to innovate, seeing things in a way thateach of the members could never had seen it before by its own. Here collaboration is promoted since thestarting point, “a collective ownership of ideas and everybody takes responsibility for them” (Brown, 2009).Going into the design thinking territories, not only as a process to propose the solution but also as arequirement of the solution itself is a must. The nonlinear way of matching the necessities of the consumersand opportunities spotted within the different possibilities of the creative and productive local force is what thisproject seeks and what design thinking can provide to us.Using business design and the design driving approach to re-establish the local creative business that are lackingstrategies to innovate, in the same way they do with their products but now with the way they developcommunication and distribution strategies to spread their expressive value amongst the market, something thatwould allow to understand what are those values and the more creative and design-based ways to communicatetheir products to the contemporary markets. This is a time of change for our economy and this will require ofthem to change in the way they interact with society, a society that is getting tired of old solutions and need tolook for new ideas and solution.3.3 The value of the local creative force and their makings.One of the first things that design-driven approaches need to do is understand where possible values andopportunities are present, and after spotting them try to understand what and who are the key sources of thisvalues. That was the first thing that we did by understanding the context in which the creative industries arepresent in Colombia. We said that mainly “the Creators”, “the makers” and “the consumers” composed thissector. Being the two first the source of new local creative value to offer “the Consumer” that are the onesdemanding and consuming their products. Then we spotted a series of problems that were presented in theinteraction between these groups not only in order to exchange creative value that already exists but also togenerate new one.The next thing that must be done is understood how this community of Creator and Makers is generating acreative value, define it and work with them. First of all we started to see how this two forces are fragmented,but also the case studies of the local established designers and innovation driven companies have shown that isnot possible to innovate being just a Creator or just a Maker. It is needed that the creative outcome comes fromthe overlapping of this two groups. When the Creative and Making forces come to work together there is a 40
  • 40. [+57] CREATIVE COLOMBIAcreative working force, able of conceiving innovation and also able to execute action plans to developed andcommercialized their novelty.3.3 Image 1: Local Creative MakingsLocal Creative Makings are the main value that the creative force can offer to the public. This creative forcecounts with expertise, knowledge and innovation, that is being demonstrated in local creations but the Creative-Makers are not being able to communicate to the market. As it was mentioned by the English Crafts Councilduring the exposition at Victoria and Albert Museum “THE POWER OF MAKING” this creative Makingscome “at a time when the loss of skill is threatening cultural practice and impacting on commercial industries.However, there is also a resurgence of making currently taking place as a means of self expression, socialparticipation and cultural definition.” (Victoria and Albert Museum, 2011)This local creation that are rich in cultural content can be communicated in a better way, in the way the localproducts can become more accessible to the public that each times seeks more products with quality that allowthem to identify something personal on them. The local Creative - Makings are those that count with acomponent of local production and a component of local creative talent. Objects that speck of the sheer of fun,imagination and brilliance of this local skill and originality. Be it a traditional artisanal product that remembersus of our cultural heritage or a creation coming from the work of designers of local schools and studios, theycount with a direct liking component wen they are locally made taking into account the skills and resources ofthe local context. That is the reason why only those that develop design thinking and seek to implementinnovation processes are those able to make new things of their skills and capacities.The local creative makings are those that propose new solutions to seek for value inside the productive andcreative forces of the nation and where able to stop looking how to import creative content from outside andspotted what is locally happening that counts with the emotional connection with our origin and that means amarket opportunity for locals and people outside the country.3.4 Story telling, stating the value of local creative makings.Now that we where able to understand the source and the value that a Colombian design driven business canwork over to support the creative and productive force of the nation, this value needs to be communicated inorder to overpass the frontiers blocking creative makings to penetrate the markets; by telling the people thestory of what the local creative power, at lease to those people that care. That is the first thing that should be 41
  • 41. done. As Tim Brown says in his book Change by Design, in the chapter Spreading the message, or the importance ofstory telling, “From the perspective of the design thinker, a new idea will have to tell a meaningful story in acompelling way if it is to make itself heard.” (Brown, 2009).Story telling is the best tool for new and non-conventional business to overcome possible resistances alongtheir organization, investors or consumers. This tool doesn’t only helps the generation of the idea but alsohelps to promote it to the people that may be located in a possible customer segment for that offer. In his book,The Business Model Generation, Alexander Oswalder defines the Story telling process in three steps.First is MAKING THE NEW TANGIBLE, if its to promote an idea into an organization or a finalizedproduct in the market its important to tell the value of it to the interested people in order to make the benefitsof it tangible for them, and because normally they don’t understand new ideas they have to be explained tothem the importance of it newness. Then the process continues with the CLARIFICATION step, here thecreative person train to promote an idea inside his organization or to potential shareholders, they have toexplain the benefits of it. How is it going to make money? How long would this take? This step also applies tocommunicating to the final consumers, how before decides to through himself to consume needs tounderstand the benefits of it and how it can solve a problem for him. Here does it comes from? Is it a long orshort-term inversion? It’s the quality of this up to my standers? Does it personalize something I’m or want tobe? Attracting the person that may be interested in your ideas is what matters here, and if at this point they getto be engaged they will go deep into details and consider the possibility of accepting the new idea and maybewill put their money to it. Finally, ENGAIGING THE PEOPLE, be them consumers, investors, employs orpartners its important, after you are able to explain what your idea is about and what it represents, a goodnarrative is needed to make them follow you. This people can become a powerful resource for your idea notonly us buyers but also as supporters and collaborators. A compiling narrative its crucial for this because peopleseem to get more engaged by story that buy logic. 3.4 Image 1: What is story telling (Oswalder)One of the problems is that the Creative Makers in Colombia are not communicating to the correct public andthey haven’t understood the meaning and the value that they produce and that is a real asset form them. Thishas to be worked with them and they are in need of some support and new solution to address this problem.Tim Brown also states in thiss chapter “The creation should be able to tell about its value to itsintended audience in such a way that some of them, at least, want to go out and buy it.” Telling thestory of the cultural values and connections to their source and local context is important for local creators toreach the consumers. They need someone to help them define this values and how telling to people aboutthemselves before and during they are introducing their products to the market. 42
  • 42. [+57] CREATIVE COLOMBIAAs in the cases study that explained how the Italian company SLOOW FOOD, that has been able to work withand support small producers, by telling in an adequate way the characteristics of uniqueness of the locallyproduced alimentary products to a global level, using story telling to communicate the origin of products andthe connection to who produces them, starting from telling the possible consumers the story from the start,where the history of the productive human force behind this products starts engaging the possible consumer,to the end consequences and benefits that consuming them bring to those who buy them. Using this strategiesallows this Italian brand to imprint a lot of emotional and appellant characteristics to the commodities theyoffer, besides all the marketing and logistic that need to be done to open new channels to deliver the productsand the messages to what they call The Glocal market.Design thinking states that the process of story telling should evolve all the players, and should be done fromthe beginning of the creative process. Is important for the story to be created not only by the creator, or theteam behind the idea, but also buy external observers and people that have been able to experience any aspectof the creation, production or commercialization that happens to bring this idea to reality. This guarantees thestory to tell the truly values behind the idea, this story telling process gives local Creations a power to attractconsumers, that in this times are seeking for stories of products that drive them into a much self-awareconsumption, not only as with typical advertisement but by giving a personal meaning for each person that isinvolved in the process of the idea. “When we create multiple touch points along a customer journey, we arestructuring a sequence of events that build upon one another, in sequential order, across time” (Brown, 2009).Information Content Generation is the activity that some of the top communicators of this times are using.The story of the creative forces is normally very rich in meanings and content, and if the correct tools andenvironment are facilitated to register this story and use it as a communication asset to promote the idea thingscan start changing. That is what a lot of content generators, as magazines and websites, specialized ininnovation and design are doing. They generate content out of real stories of creative Making taking place, andthat can drive meaningful information to the readers. Information that will promote not only the business butalso the creations that is being communicated. Each time we see how these creative editorials are mergingcontent with advertisement, or better advertisement into the content. Telling people what is good fans cool touse and buy, where can they find it, and what is the real value that it gives you if you decide to have it. For thiscreating a name and a community that believes what you are telling is a requirement.The technical resources, to generate recurrent media based content, are a key factor; new media has made mucheasier to deliver ones message to the crowd and facilitates the tool to not only for expert communicators to tellstories. Now with crowd sourced content and the power of telecommunications technologies it has becomemuch easer to register and report what is taking place amongst creators. Photography, video and writing arebecoming not only an activity that experts can do but that any creator can realize to register and communicatethe value and uniqueness of their products. 43
  • 43. 3.4.a WALLPAPER. CASE STUDY The Handmade Issue With the special edition dedicated to this project, that was released for second time this year, the English design magazine, gets to generate a interesting interdisciplinary collaboration dynamic. Putting together expert manufacturers, artists, master craftsmen and top designers to work hand to hand and develop very special and unique products, furniture, fittings, food and fashion. ‘Cape’ suit, By Constantine Crcic and Brioni Crcic is one of the most successful modern industrial designers with a high capacity for re-engineering products, and not much of a fashion designer. But together with the Italian tailoring company,3.4.a Image 1: “Capa” By Constantine Crici tmore than revolutionizing contemporary menswear could show howfor Wallpaper Handmade Edition 2011 to keep hand-making relevant and practical in a commercial scaleReborn In IndiaWith this other initiative, after the made in china campaign two years ago and born in brazil last year, that ispart of the CreativeRootes campaign that looks to create an impressive art, design, food and crafts catalog torepresent the different countries of the world creative value. 3.4.a Image 2: “Landscape” By Sangaru Design Stutio fot Wallpaper Reborn In India edition 2009The most inspiring case emerging of this project is the one of Landscape , a bamboo shelves system , bySandeep Sangaru for Sangaru Design Studio. This is just not a case where a product is developed under eco-design, esthetics and contemporary trends, its about sustainable design, and how the intervention of design cansupport small productive communities, very skilled in transforming this material, in rural India to become self-sufficient.Young designers are coming up with simple products that minimize the use of hardware, are sourced locallyand develop local skills. Then the same creators involved in the design process are the ones promoting theproduct in the market. With the creation national crafts retail stores such, Bamboo Canopy, where they open agate into local and international markets to this local productions. 44
  • 44. [+57] CREATIVE COLOMBIA3.5 Business Design; A resource for local creative makers.Now that we understand how Business Design operates, we understand that is a really useful tool tocomprehend and develop the possible business that can grow around Colombian creative Makings. Thelandscape for innovation in the country is dark and doesn’t look to be improving. I personally believe that thisis because we haven’t been able to look outside of the box and establish feasible businesses that can make outof local creativity a profitable asset for the country. Unfortunately we haven’t been able to guide creativity inthe proper way to make it a source of local innovation. The creative talent of the country needs to be takenseriously and be supported by business strategies that allow this creative talent to get involved as a main growthdriver and incorporate it into the countries’’ productive structures and promote it in the market. This creativeforce counts with the strength and potential of becoming of great cultural, intellectual and productive value forthe local economy.During a conversation that took place earlier this year about the Colombian creative industry, between theBritish Council and the Colombian, Juan Carlos Gaitan, director and founder PRANA Incubator, they discussthe problem that local creators are having to introduce business strategies to their endeavors. PRANA is thefirst kind of business incubator for Cultural Organizations and Creative Industries in Colombia and they havebeen promoting and supporting local musicians and artists during the last 9 years, with the believe that localcreativity has a great business value but that the young creative entrepreneurs need to be qualified in order tolive from the product of their creativity, and establish business that can succeed and sustain success for a longtime. “It is commonly understood that creative professionals work in the industry motivated by love andinterest in the subject. However, in this South-American country, many times that’s all there is; the products oftheir hard work are not always followed by financial gains. “Money is not in the equation”, said Juan Carlos(British Council , 2011).This expert was able to perceive the rise of the creative people and by giving the creators the businesseducation to set their business plans and make their endeavors take off. With this he is starting a change thathas to spread to other creative disciplines as design, crafts and fashion. There are thousands of small andmedium sized enterprises working in creative ideas, and they don’t seem able to keep the pace with the evolvingmarkets and society that is changing and growing at a really fast pace, especially in this region where theeconomic boom, internet based globalization and new trading dynamics are accelerating the process.Its getting harder to differentiate your products in a saturated market, an for Creative outcomes is the samesituation. Although this creative force is having new ideas for products, services, and business they are nottaking into account all the component of a business model they have to develop. They just cant keep thinkingthat to count with an attractive offer is going to make their business succeed, although they are able to applycreativity to the production and conception of new ideas they are not being carful evolve to define the otheraspects  that  compose  a  business;  customers,  infrastructure  and  financial  viability.  Business design counts with the characteristics that can assist Colombian creative people to solve this problem.Thanks to the design-driven approach that Business Design uses to generate new business models that can be 45
  • 45. successful, it can help local creators to better understand what Alexander Oswalder (Oswalder) called thebusiness model enviroment; that is composed by the context, the design drivers and contrains that can berelated to an idea an the business that intends to make money out of it. Its important for the business modeldesign that te creator not unly understand the value and forces that could drive the idea in the market, but themarket itslef and all the external forces that can couse any effect in the development of the idea or project.Forces such as: (1) Market forces: an analysis of the market issues, segments, demands, needs costs and revenueattractiveness. (2) Industry forces: Such as competitors, substitute products or services, the complete valuechain and possible stake holders interested in the project (3) Key trends: Societal and cultural trends,understanding future implementations of available technology and regulatory laws that can be foreseenaffecting the enterprise, as well as the understanding of the socio-economic environment surrounding theproject. (4) The macroeconomic forces that can affect the idea development process such as the global market,the capital market available for that type of idea, the economics of needed resources that could affect thepricing strategy of the project as well as the economic infrastructure that describes the infrastructure of themarket in which the idea will operate.By one hand business design can help the Creators to understand their project, communicate it using storytelling and being conscience of the value that their creations represent. But by the other hand this new way ofconceiving business can also picture the complete canvas of things that are happening around the idea, in sucha way that the creator can count with this information since the first steps and during all the innovationprocess; ideation, production, commercialization and future developments or expansion of their ideas. Acreative business supporting creative people to set new business, that is what the solution to the problemsstated in this study seems to be. A business that knows how to help creative people to focus in the creativeprocess but also set financial sustainable endeavors without killing their creativity. The case study that will beexplained in the next section is an example of a business of this nature, the company COMON has come outwith a series of strategies and services that are articulated in a really creative business model able to support thecreative crowd and encourage them to generate new ideas in a collaborative environment and community. Thisexample will show how a clear understanding of the business environment and the proper setting of a businessmodel that has in its core the value that creative minds can produce making them profitable for both. Thiscreative business initiative gives the creative people the correct business and creative tools to take theirinitiatives into action, overcoming any possible barrier that the environment can present.3.5.a COMMON, case study. A Unified Brand for the creative force.Launched in January 2011 by Alex Bogusky, Ana Bogusky, Rob Schuham and John Bielenberg, COMMONconnects entrepreneurs, designers and creative to accelerate their businesses and ideas using the power of rule- breaking innovation. COMMON has come out with an innovative Business model based on the statement that a common brand, a shared brand, can unify a creative community to support it during the implementation of their ideas. They are the world’s first collaborative brand, instead of a TM (Trademark) they invented the CM (Collaborative Mark), COMMON is a brand that will be shared amongst deferent projects lead by the COMMON team and developed by the 46
  • 46. [+57] CREATIVE COLOMBIACOMMON community. They propose, “That a brand should be shared, just like any other asset. One in whichmany small entrepreneurs, with their own start-ups or early stage business ideas, can immediately share havingall access to a huge brand value” (COMMON; Creative Community, 2011), and brand recognition. Somethinglike unifying and conquering is what they have in mind.COMMON does not own or have any stake in the ventures that are created, accelerated or advanced by theCOMMON Community. Each of the ventures is an independent entity whose values and philosophies matchthose of the COMMON community and COMMON collaborative brand, but the intellectual and commercialproperty of the idea remains always with the entrepreneur that came out hit it. Never the less COMMON it isdesigned as a for-profit venture, meaning that they create profit out of this idea. It main revenues come fromsponsorship, attendance fees and ticket sales for educational talks. Over the long term, companies in theCOMMON Community that select to use the COMMON Collaborative brand pay a small license fee, this feeis a fraction of a single percent until they scale to at least a million dollars in annual revenue. At which point itscales up to 1% and then caps at 3%.The company defines itself as three basic components. (1) A Creative Community. (2) A Business incubator,and (3) A collaborative brand. They seek to generate the proper condition to lunch a series of mutuallysupported business (COMMON BIKES, COMMON GIFT CARDS, etc.), by bringing together a creativecommunity and empowering them to unleash their creativity value and ideas into the market with theimmediate global brand awareness that the name COMMON is creating for them.Using the power of online connections to bring together a collaborative community on a platform that enablesthem to spread their ideas and get inspired. But the members of this community have to share the values of thecollaborative brand, they COMMON is only wheeling to promote those ideas that generate any type ofinnovation but also are able to generate local impact, by setting their business models mindfully, taking intoaccount their local topography and communities. 47
  • 47. Chapter 4: Presedent Studies.Existing Models to support creative outcomes. 48
  • 48. [+57] CREATIVE COLOMBIA4.1 IntroductionWe have understood the role of Business Design and how it should be implemented to help nurture the localcreative value and support it in the path to develop new Business Concepts. But as design teaches us, a goodway for finding the correct path to a solution is to understand already existing cases (business typologies) thathave achieved some of the desired results of our project. In this case we will a look those cases; that using newand tradition media are helping to shape the paths of design in the contemporary world.Traditional and new media; and communication technologies have enable new ways of collaboration, projectmanagement and support for creative entrepreneurs. Now with the power of communications and theglobalization of information, its easer for creative enterprises to have more exposure of their offer using newmedia and communications. This new media is able to generate much more desirable content, using amazingpresentation technics and a design-thinking inspired approach to really understand the needs and behaviors ofthe economical drivers of creativity, the creators and the consumers.Now there is a complete new series of tools for design and creative driven communities. Magazines that are notonly and inspirational source of information for the creative force but also help to drive consumers towardthem and shape their opinion about life and design. Websites that use the huge reachability of the internet toapply long tail Business Models that offer design in a complete new way to people, in some cases outsourcingthe products of services to a creative community able to feed this model with really niched offers. And finally aseries of networking and crowdsourcing platforms that have change the innovation process that designers arefollowing today by enabling them to have long-distance and multidisciplinary ways of collaboration to conceivenew ideas and empower their initiatives with a huge awareness amongst the online community that thisplatforms bring together.4.1 Design-Driven Publications, inspirational source for design.As it was mentioned in chapter three, with the WALLPAPER magazine case study, there is a way in witchinnovation media Business Models and the recurrent content that they produce can help draw interest in themarket for the creative makers and their ideas. For them, a key activity is to be constantly be researching andlearning to be able to create a strong opinion voice and make people follow them, they are powerful opiniondrivers of the environment in which they operate.Using beautiful printed publications that not only broadcast the series of new offers being introduced in themarket by the design and creative industries but also the history of the human resources and communities thatare behind this ideas they are able to do the link to show people information and publications about the thingthat they can have access to. They use their publications to show people the relevance of the contemporarycreations, and what they are doing to build our identity as individuals and as a society. Companies that generaterecurrent content about these industries like WALLPAPER, MONOCLE, FAST COMPANY, COLOURS aremagazines and content generators that are becoming key players and opinion drivers in the way that peoplehave their approach to design. They address the creative community and show them the new paths thatconsumers want to navigate and at the same time; picture this paths for the consumers by doing a series of 49
  • 49. recommendations and mindful comments about what should be consumed and why doing so is relevant andgood for them.This content has overcome the physical stage of matter and has been introduced too much more wide publicthrough the online commerce channel. There is a series of websites that are using internet and social media topromote the creative force and their new ideas, by generating or crowd-sourcing content from the consumersand makers communities that follow them. The case of all the resent and proliferating design, fashion andlifestyle blogs and online publications that are distributing content in a massive but also really flexible andpersonalized way to the public is changing the way in which we have access and see design, creativity and theirvalue. Websites, blogs and platforms such as FASTCODESIGN.COM , DESIGNBOOM.COM, WIRED,COOLHUTER.COM and TRENWATCHING.COM are being able to consolidate and organize aconsiderable amount of creative content in their platforms that helps drive innovation into the consumers,industry and society involved with this business. By doing a mindful selection and curating process of newcreations and the minds or communities behind them, information that this content generators are constantlyspotting through a complex research and scouting activities, they are finding linking patterns (trends) amongstcreators that shows the real talent in them. Also by having a deep understanding of the current consumer andmarket driven trends they are linking all the information and distributing it, at a global level, to the consumersand the rest of economical players.As a result this information drivers, that use a design-thinking methodology to do interconnections of relevantinformation, for both the creative makers and creative consumers, are being able to link pieces of informationthat drive innovation generation and consumption amongst the creative players. They have been using thepower of content and how this asset had established their companies as key information source and give them astrong opinion voice power, to move intro different distribution channel, along this, they also are able to movethrough this channels the creators and creative community that have been spotted by them and generate newbusiness strategies, as co-produced products or design physical stores that get not only to show the content butalso link it to a commercial concept of the products involved where people get to purchase what ever they likeabout what they perceive as self expressive in the content they consume. What I intended with stating this is,that they are able to first give people criteria to then build a personal opinion about what they like to consume;finally they give them access to acquire whatever creations they propose can please that needs better. “I tell youwhat is good for you” was first, now they move with in new dimensions, they also give you immediate access tohave it.Using multiple channels like :(1) PRINT (2) Websites (3) Physical-Stores and, (4) Online-Stores this businessmodels have been able to promote the creative making businesses. The use of storytelling and communitybuilding; to strategically promote the creative value is the main contribution that this new solutions are themain contribution of them to the creative sectors and will keep driving the way consumers perceive the value ofmaking and innovation. 50
  • 50. [+57] CREATIVE COLOMBIA4.1.a MONOCLE PRINT- ONLINE AND STORE MONOCLES Business model is achieving to generate desire amongst their readers using insightful articles about small and big creative business, products, government and communities that have new strategic insights to lead the creative communities and the consumers to a conscience consumption of creativity.This company acts ass a cultural arbiter, and as a strategic consulter that also offers a physical and online storeto drive intellectual and physical creations into the consumer’s hands. With their business they promote thespotted new talents but also invest money on what they talk about to show its relevance and take it into theirreaders hands. 4.1.a Image 1:(left) Monocle October 2011 Magazine Publication (Right) Monocle Special Edition Media Content in www.monocle.comThe company has really strong brand values that characterizes it as creators of mindfully conceived content thatis consent and consistent about global problems; something that drives them to collaborate and work only withbrands that are also responsible and have high moral values, creating a really strong and positive perception . AsTyler Brûlé, the editor in chief of Monocle magazine, expressed in an interview to the New York Times, “We’relooking for a clear line when it comes to the provenance of a product,” Mr. Brûlé said. “We don’t want to workwith brands that might have a good name,” he added, if their products are “made in questionable ways orquestionable parts of the world.” (The New York Times, 2010)Using a print publication they are able to shape the consumer perception about the creations, but it doesn’tstops there. They use online communications, not just as a soft copy of the print edition but as aninformational supplement for what readers can find in the print edition. Using engaging multimedia, they areable to complement and augment the informational experience we can access in the magazine with interviews,spectacular footage galleries to expand the experience of content for their readers. 51
  • 51. 4.1.a Image 2: Monocle Flagship Store Los Angeles, CANow they gave an other step and with physical and online Stores that offers a selection of outsourced orcoproduced products that reflect the topic they pretend to discuses in their print and web publications allowsthem to engage the consumer in a complete new way. Now Monocle became also a brand with shops, trousers,candles, and furniture and, as Brule said, the shops allowed them to create a sense of community andcollaboration around the brand. In these commercial spaces they highlight a special and selected collection ofthe best creations that they have discovered along their journalistic researches. In this small shops and websitereader can find an eextensive range of branded merchandise, created in conjunction with high-end designersand boutique brands.Finally the other key strategy of this company is how they are able to merge advertisement and content in asame and pleasant platform somewhere around media and advertisement, which makes the endeavour muchmore sustainable in economical terms. The twist they have given to their publications is in its business modeland innovative approach to working with advertisers and sponsors”. Linking their activities to sponsors andpowerful brands and by blending content with advertising they’ve moved beyond a simple ad-led revenuemodel to a savvy product partnerships with advertisers and sponsors. As I found this describes on and articlefound on the PSFK BLOG (Fawkes, 2009) “Monocle is leading the trend where titles help brands by creatingcontent readers really want to consume (rather than the stuff many add agencies hope will catch our eye)”.4. 2 Online Design Retailing; Stores and project promotion.With Internet a new commercialization and promotion space has been open for designers and creative makers.Now we can se a massive proliferation of websites that offer this creative products and services in a new andincredible way.Websites as FAB.COM, EATSY.COM and KICKSTRARTER.COM. BLOOMING.COM , amongst hundredsof others more, are helping to promote and commercialise established and new designers through theecommerce market, giving them a global exposure and scope amongst consumers and a close community thatthey cultivate.These platforms normally crowd-source their offer to the creative community and are being able to run a LongTail Business model with great economical impact for the creators of the ideas, in his first years of operation 52
  • 52. [+57] CREATIVE COLOMBIAthe website FAB.COM, an ecommerce platforms that runs flash sales of a wide variety of international design;was able to rise $8 Million in it first round of capital.With the democratization of innovation and of the offers that they promote, this companies are allowing thecreator to feed their catalogue by submitting, uploading and pitching their ideas to make money out of them.Solving for the creators all the visual display problems and logistic of accounting, shipping & handling onlineinternational sales.This platforms focus on offering a large number of niche products that can be as lucrative as traditional modelswhere a bestseller represented a big percentage of reviews. Normally impaling a short amount of investment forthe company in product development and inventory costs. The idea here is to develop and engaging experiencefor the consumer that will need to be driven into buying a product. This sometime is a problem about thiswebsite that count with a large range of products that can confuse and sometime become overwhelming. Neverthe less is interesting to see how they are proposing new economical models to commercialise design, usingflash sales for reducing inventory costs and allow the creators to get rid of accumulated products, pre-sealingthat allow the creators to be more safe in the moment of taking the decision to invest in running a productionof certain good or even racing seed capital to start creative ideas looked the American website Kick-starter isdoing.For them the constant feeding of the platform with new offers and the way they are able to generate acommunity of creators and makers are the key activities. How they create a story around the products they sale,be it by telling the story of their creators or highlighting specific values of their products, they need to offer areally engaging experience for those that can buy at they websites.4.2.a FAB.COM / E-retailing and reselling creative products.In this group first they are the retailing or resellers as FAB.COM; this companies are looking to introduce asuper wide variety of design pieces to the ecommerce market. Having to create a large amount of offers andpush them through email and social media into a large amount of possible consumers. They have to becomereally sustainable and economically profitable, for this new commercialization’s strategies and retail models likethe ones GRUPON introduced and they now are applying to design shopping. They offer special offers andprices that are strategically planed with the creators to help them push their products in the market in a safeway. Targeting a young public that get easily engaged with the novelties and innovation that can be found inthis websites4.2.a ETSY.COM – Community Sourced Platform for handmade products.Then they are all the series of websites, that as ETSY.COM, crowdsourcing form the creative community, alarge number of creative products. They use memberships of creators and consumers and bridge the distancebetween them to help them set a new retailing models to share this products. ETSY describes itself as theworld market place. They displey a series of handmade products that goes over the 2000 offers.With this social trading a and communications tool, the creators members of the community count with the 53
  • 53. platform not only to promote but also to sell and distribute their products at a global scale. They are able to settheir own virtual shop within the main EATSY website and manage sales from there for a accessible fee.ETSY makes money by charging a listing fee of 20 cents for each item and getting 3.5% of every sale. Andbesides the online store count with the support of ETSY LABS, a physical space where they host educationsessions, business consultancy and other services to support the creative community that work with them,giving the creative creators the tools not only to produce and learn how to make handmade products but alsoteaching them about how to set selling strategies to position their products in the market.3.4 KICKSTARTER.COM – Crowd Funding Creative EnterprisesAnd finally we find a more sophisticated business models, like the Ones of Kick-Starter. This crowd-fundingplatform enables creators to peach their ideas to find seed-funding capital for their projects. In this dynamicsite, creators are supposed to set a project pitch where they inform the community about the objectives theywant to achieve and how the community can economically assist them to achieve these objectives. Then theplatform gives the functionalities for the readers that wish to pledge for this initiatives to contribute with adonation or by doing an advanced purchase of the item that is being developed. Here the model assures thatthe money is going only to those producers able to carry out what they offer, by using amazon to recollectpayments and then hand this money to the project that can demonstrate the progress and that in fact costumerswould receive what they where promising in the project pitch. The idea is that here if you want to produce ashort film, a product, or any kind of creative endeavor this open source platform helps you to communicateand raise founds to do so.This website clearly states how a new media platform can be an effective channel to promote creative ideas andhow the web can be used to unify the creative community and promote their initiatives driving them through awide costumer segment. The projects that are displayed in KICKSTARTER have been able to rice funding formore than 1 million dollars from KICKSTARTER’s pledges community. In periods not superior to 3 months.Projects like the TikTok+LunaTik Multi-Touch Watch Kits for the ipod NANO created by Scot Wilson,have been using this social tool to accelerate the startup of their creative concepts. In their case , running agood communication plan parallel to the pitch, generating buzz in design blogs and directing people toCICKSTARTER through social media as well as other low cost communication strategies was the key to such asuccess.The problem here becomes the trust and protection that they can offer to new undeveloped ideas. Facing nowcopyright and patent legal problems, this company is in problems because they have to respond for the creativecommunity acts, something that is really getting out of their hands. This model has to be approached withprecaution because the Colombian creative industries count with poor copyright and patent legislation relatedto its bad institutions, an initiative of this kind would face a series of bureaucratic resistance and legallimitations. 54
  • 54. [+57] CREATIVE COLOMBIA4.3 Creative Networking And Crowd Sourced InnovationInternet has revolutionized the way in which we produce and conceive new ideas. With new networking tools(that I’m not going to explain here, given to their popularity in our every day life); communications platformshave revolutionized the working patterns of humanity, we can see now how Skype, Linked-in, Twiter,Facebook and a series of new networking strategies have not only change the way we handle our social lives butalso the way we work and collaborate through this channels. In his book CROWDSORCING, Jeff Howe ,points out this behavior: “The potential of the Internet to wave the mass of humanity together into a thriving,infinitely organism. It is the rise of the network that allow us to explore a fact of human labor” (Howe, 2008)Design-thinking propose that the team working in the creative process should be as diverse andmultidisciplinary as possible, and this web-based tools are facilitating this for the creative force, now workteams and collaboration dynamics can take place with no limitation of location of the involved parts. This hasrevolutionized the way in which we create and innovate, an example of this is how Linux and its communityco-created the hall operating system as an open source platform, created buy a high community of all over theworld that has contributed to its creation. And the interesting part is that many of the do it just for FREE,because people like to be part of the story of what they consume.Before it was communication, being able to run a meetings in over an online platform and sharing status andpictures with my friends what unlashed this amazing possibility of online collaboration, and now this tools havebeen strategically developed for the creative processes and are transforming the way in that the design-driveninnovation process is being manage from the ideation part to the consumer following final stages of the idea.Now places like BEHANCE NETWORK GLOSOM.COM that are creative networks showcase creative talentand provide a place for creative professionals to build a dynamic portfolio and gain exposure. Thesecompanies have developed tools and functionalities to facilitate presentation of work, and support the creatorto make communicate their talent in a proper and engaging way. This helps linking them to consumers andindustries that are receiving this content in a positive way, as they are entertaining and pleasant to visit. Thiswebsite promote the outstanding projects amongst social networks giving more exposure to the creators anddriving attention amongst the readers to know them.Then the Internet has started to give the creative tools to collaborate on-line and to produce and developprojects to the creative community as it has been making possible to corporations executives to runconferences and meetings on-line. With places like the New Zeeland start-up PONKO.com and the Italiancommunity GARAGE DESIGN now I possible for the creative people to outsource the production of an ideathat then the Company produces with their innovative manufacturing services, that involve new 3D printingtechnologies and a solid online platform for posting the idea specifications. With them, creator can host andproduce design in a digital way. They commercialize the idea also for the creator in their online marketplaces.For this kinds of start-ups establishing a strong community of creators and buyers is key activity. Ones thecommunity is created they also apply retailing strategies for the creative products to facilitate commercial 55
  • 55. activities; as hosting pre-sales to test the buyer’s community and run project promotion before startingproduction.Here we start seeing how this websites use the economical value of this creations by applying an ecommerceplatform to their website that enables the creative community to trade and commercialize their product. Acrowd-sourced online-design store, where ideas are crowd-sourced form the creative community and, producedand commercialized by both, all in a virtual way.These crowd-sourced activities have enable creators to collaborate in a way never seen before. Howe states inhis book “crowd sourcing uses technology to foster unprecedented levels of collaboration and meaningfulexchanges between people form every imaginable background in every imaginable geographical location”(Howe, 2008)4.3.a. NAPKIN LABS/ Virtual Collaboration For Creativity. This company has taken the idea of virtual collaboration into a complete new level. With the development of an innovative and customizable crowdsourcing platform that allows companies to create challenges and collect insights and ideas from theircostumers using a series of design-thinking driven collaboration dynamics and applications that run this groupcreative activities online.With a series of applications the companies are able to run 10 different strategies to develop new product ideasand do market research online directly with real costumers in an online-platform. This dynamics include online-focus groups, posting challenges to create new products or packaging solutions, brainstorming session, runphoto contests and collect voice and video recorded feedback from consumers.Businesses pay a rate starting at $99/month for basic options, including up to 1,000 fans and unlimitedchallenges. For rates starting at $499/month, Napkin Labs will create a completely custom experience thatallows the business to brand, embed and personalize the looked of the lab, which also includes the ability tomake a challenge private. In return the costumers get ratings that at the same time allows the client to measurethe impact that has on certain community.Thanks to a gaming layer, and in return for the collaboration, the community of fans, the participants, will getand emotional reward of felling as being part of the development of what they like to consume and recognitiongiven by the brand. And if the business believes it convenient they can offer, in additions, coupons, oreconomic reward as incentive to the most participative and loyal collaborators.This model follows the design-thinking methodology and takes it into a completely new virtual operational level.Now companies can led research amongst a curated group of consumers to have specific insights in an onlinemeeting point. In doing so NAPKIN labs is helping the companies to have access to a democratized butorganized access to costumer-based information and a better dialog with the consumers. 56
  • 56. [+57] CREATIVE COLOMBIAAs time brown states in his book CHANGE BY DESIGN; The users should be involved in this process afterthey have contact with the solutions, collaboration should involve the user as a main project representative andambassador. “The Internet helps move information around but has done little to bring people together.Creative teams need to be able to share their thoughts not only verbally but visually and physically as well”.And this is what the specially developed NAPKIN’s platform does; the applications that this interface offers tocreative members of the community give them the graphic, social and technical possibilities to easily runstrategic activities to work in creative teams or with the consumers.This platform was launched in the marked and has won the trust of their clients real fast, in the list of clientsusing their services we can find companies as: Sony, Marriott Hotels, HunterDouglas, Google TV and others.In This models and some other open source businesses is incredible how the people collaborate, but by itssocial nature has the power to involve also a big amount of consumers to make part of the experience.This open source model that involve the community in a strong way, count with great advantages for projectdevelopment, but it also generates a strong sense of belonging amongst the community that grants them greatbrand awareness and world of mouth promotion. Online creative collaboration also has an impact in thebusiness promotion strategy, as Jeff Howe states in his book abut the t-shirt manufacturer and open sourcecommunity Threadless : “Threadles don’t need advertisement or marketing budgets, as the communityperforms those functions… Designers spread the word as they try to persuade friends to vote for their designs,and Thread (Howe, 2008) less rewards the community with store credit every time someone submits a photo ofthemselves wearing a Threasdless shirt ($1.50) or refers a friend who buys a shirt( %3).4.3. a OPEN IDEO; Challenging The Creative Community The platform created by the design thinking driven company IDEO: called OPEN IDEO is an open sourced community and platform of creative thinkers, where people collaborate in creative projects. A strong community platform allows them to run the IDEO design aninnovation process amongst a virtually connected creative community. They involve this community byteaching them innovation processes and then drive them to develop projects with a social purpose usingchallenges that involve that creative community and guides them through the inspiration, concepting andevaluation of creative projects.Giving the creative community challenges, and support during the development of this competitions; drivesmotivation amongst them, this competition makes each participant be more proactive. With Internet and thesocial media platforms it has become much more easy and interesting to run collaboration dynamics with thecreative community on-lineWorking within interdisciplinary team and community is one of the most important doctrines of the designthinking method. This allows each specialist in to play the roll of advocate for its own discipline, so the stylistwill look for a formal improvements and will protect this position against the Artisans who will be searching to 57
  • 57. preserve their cultural esthetic values, what could give as a final result a very stylish and at the same timecultural attached product.The process works like this: (1) they post an online question that makes people think. (2) Then comes theinspiration phase, where people respond by participating and sharing videos, pictures and comments of howthe question can be approached.(3) Then the creative community gets to post the possible solution anddiscuses about them. Building on shared ideas that then, (4) go through a crowd-sourced evaluation process tobe ranked by the community and finally (5) the wining concepts are linked to the project sponsors for thefuture development and to put in action of the idea.Through the process the creative people is challenged to participate. They use the figure of the“Innovation Coefficient” to reward the anticipation. The more you participate the higher it is and morecomplete your profile gets. By participating the members of the community also win recognition, sincethose that are outstanding, are specially promoted by the platform.By creating a collaborative design-driven platform they have enable creative communities to solve everydaysocial problems. They impulse the culture of sharing to achieve innovation developed by the design community,allowing them to build over each part of the creative process with the help of others. Now innovation is beennot only promoted in the online networks but also is being created with these new connectivity tools.4.4 The design Brief; what a new business should offer to Colombian creativity.After studying a series of business models that are working with creative communities, and that in a way or another are helping creative makers from all over the world through the process of ideating and developing theirideas, we can start shaping a business model that drives in a similar way innovation into the ColombianCreative and productive structures.This model should assist the creative community in all the phases of their creative activities. Starting from theearly stages of inspiration the model should (1) Educate and Inspire, assisting Creative Makers to setprofitable business around their ideas by giving them the knowledge that that they lack. The solution needs toraise awareness amongst the creative community about the possibility of improving their business and be moreinnovative. By allowing them to learn about new design-driven methodologies and a strategic business-designapproaches to business setting, we can help the creative community in Colombia to define better the businessconcept for their already developed products, and drive them toward the innovation and creation of newcreative makings.Then In the Ideation and development process, the creative communities are in need of (2) Networkingsupport that empowers them with communication tools and allows them to collaborate and develop togethernew and better products on a interconnected open source collaborative platform. This networking will allowdifferent multidisciplinary teams to form and ideate together not only new products but also business and socialventures. Now with Internet and the globalization of communications this teams can be more decentralised andeven count with international collaboration. 58
  • 58. [+57] CREATIVE COLOMBIAHaving a community and a solid platform to manage it; are components of the solution that will also facilitatefor this new solution to offer support mechanism that gives assistance to the creator during the early stages ofthe implementation phase; by introducing and connecting them with the different productive sectors andcommercial sectors of the country, in this way the lack of collaborative spirit can be addressed. New ways ofhaving online portfolios and of introducing and sharing professional profiles is a main tool that this creativeclass requires, a shared and open database of the designers, producers and industries is lacking to the country.Lets not forget that there are a series of products that already have manage the first stages of Inspiration andIdeation but now are struggling in the final stages of Project Promotion, where they are not being able tocommunicate the real value of there solutions. So the solutions need to (3) discover the new talent amongstthe creative community. For this point of the solution is important to have created first a series of relationshipswith the creative and productive force and have a community of local makers and creators to work with.Ones the talents have been spotted the solution will need to (4) Promote and raise awareness about thiscreative ideas by communicating the real value of their creations and the people behind them. Using storytelling seems to be a really good communication tool to do this. Examples as the one of Monocle AndWallpaper show how telling the story about the things that we see in the market is a strong driver of publicopinion and can help establish new ideas and influence in the consumer’s preferences.Finally during the Commercialization phase we will need to (5) give the creative power access to updatedon-line based distribution channel to reach possible clients and offer them their creations. With theexamples like EATSY.COM and FAB.COM We were able to see how the Internet and the new media basedretailing solutions that involve social shopping and networking, can help promote creative ideas to explore theireconomical value. Generating an online-distribution channel for the creators will not only allow them promotethemselves and their ideas but also manage sales and distribute them to the public that was engaged by them.The final solution has to: 1. Educate & inspire the creative and productive force, introducing them to Design-Thinking and Business-Design Methodologies. 2. Discover new emerging talents, and with them, rise public awareness about the value of local creativity 3. Enable the creative makers with an online distribution channel to sell and promote their creations. 4. Create an community driven platform to run networking, collaboration and crowd-sourcing dynamics. 59
  • 59. Chapter 5: The project.[+57] A Local Resource For Creativity 60
  • 60. [+57] CREATIVE COLOMBIA5.1 Introduction to [+57]“[+57]” is a collaborative brand that will unify the Colombian creators, producers, and businessescommunities through an online Open-sourced Magazine & Store where the content is generated to drawinterest about Local Creative Makings and the communities that are involved during the hole process. Aftergathering sufficient information and insight about this industries, through its promotion and communicationactivities, will take a more active role in the local creative processes; supporting, networking and collaboratingtogether with local creative enterprises, driving innovation into the countries productive structures.This model is conceived as an evolution of what a creative MEDIA-driven business model is (like the OneMONOCLE MAGAZINE follows). We introduce to the consumer and business public to the local newcreations and the communities behind them through a series of online publications that are specifically selectedand curated to drive strategic insights amongst the players and inform them about the local creative activities.With this open sourced generated content we expect to engage people and drive them to a series of productsand offer the ones that are specifically related to the information that we give them through our publications.Giving the local producers and creative communities and their offers the opportunity to finally update theircommunication channels and start making part of online trading, a landscape that is highly unexploded in thecountry.It goes even further by being a protagonist in the creative and business community, by discovering new talentsand driving strategic design research and business modeling with them and conceiving collaboratively newproduct lines, services and business models. Our strong sense of community and deep understanding of thelocal and international design and business environments allow us to go beyond and work hand to hand withthe business and creative communities to communicate, commercialize and develop products and services thatare of great quality, attractive, and innovative.Finally, the solution model seeks to connect and support the community of creators, makers, and businesses, bydriving innovation through a series of online networking, educational and collaborative strategies, allowingthem to learn, share and participate through out the whole process of creation and innovation. Generating anonline and physical community platform that offers to the creative and productive business the tools,information and knowledge we support them to introduce or improve the usage of creative innovationprocesses into their companies and businesses5.1.a Brand Identity and valuesThanks to the deep analysis that was done during the previous research and analysis sections, it was understoodthat a brand is an really important asset for creative enterprises, but its also an expensive one to maintain andestablish. Most of the businesses that are being created in the local creative market, count with low brandawareness due to their poor communication strategies and uncommon branding knowledge. We propose abrand that will unify the producers and designers, not with a labile, but as a collaborative partner to generatemore impact on the consumers. 61
  • 61. For this reason the brand decided to have a name that refers immediately to a local memory. The name [+57] isthe way in which we do that, this characters combination are the area code of the country, the one that isneeded to place any international call from anyplace outside the country to a Colombian phone number. Thenour slogan “ The value of Making” is set to communicate to the creative and productive communities that wecan help them to generate value and revenues out of their makings.This community driven brand should need to follow three main values that will allow local products to have ahigher brand equity. These main values are an essential part of this project and will help it to build connectionsbetween our consumers and the products that we offer. Being Colombian-Centered, always seek and look forthe new and being collaborative, are the first values that will shape this brand. In this chapter we will defineeach of this brand values and how they will help in the establishment of the services, products and businessthat we collaborated with.1. Colombian-CenteredOur main objective is to work with Colombian creative and productive communities, to support them andencourage them through their creative endeavors. We believe and promote only producers and creations thatcount local identity, and that in a way or an other are linked to local communities.We believe in the popular term “Glocalisim” that makes of us a community, which is willing and able to “thinkglobally and act locally.” This philosophy tells that the community has to be centered in the local context, butalso needs to take into account global forces influencing in the local environment.The Colombian creative creations that are being concaved amongst the creators and makers of the countryneed to gain access to the markets and go through a strong communication campaign and business planning toshow their real intangible values, this products are completely ready to compete with the imported offers thatare coming from more developed economies and that are invading our trade places, like those coming China yU.S.A. The general public is not being able to differentiate from all the offers that are coming from outside thecountry and that’s why wee need to promote and talk about what is happening in the country, the ultimate goalof this endeavor.For these reasons the projects and individuals that get involve with [+57] have to be of local relevance but thisdoesn’t means that we only take into consideration locally manufacture products and that all the content thatwe future talks about the Colombian context. It has to be clear the role that the international design andbusiness communities play for the development of a strong local design culture; they are of great relevance andinspiration for the local sectors and should be always next to us. The cases of a series of designers that havebeen involved in the international design world and that thanks to strategic collaboration with internationalbrands, as Silvia Tcherassi with the American Shoes manufacturer Payless Shoes, have been able to launch andscale their creative activities in an international level. Because of this reason all the activities and values of thebrand are aligned to involve international designers, manufacturers and products if this represent a benefit forthe local communities, individuals or brands. 62
  • 62. [+57] CREATIVE COLOMBIA2. Discover the NewThe creative workforce of Colombia counts with a series of skills and talent that allows them to constantly beconceiving new ideas and solutions to introduce to the market. During the observation activities of this projectit was possible to spot how local labor is doing a great effort to come out with innovative ideas, but it also wasvisible how this ideas are not reaching the market by a series of reasons that don’t imply that the products arenot good or ready; this ideas just need support and tools to launched in the market. Because of this it a keyvalue for this solution to understand where the creative talents of the country are emerging, start a dialog andsupport them to grow and spend their already creative ideas into profitable and long-lasting business.3. CollaborativeWe believe that the people in Colombia are really resourceful and skilled, but we also understand that amultidisciplinary a collaborative way of working is the only way to innovate. It’s important to understand andhelp others understand the role that each one has in the creative process. And then generate a series of linkingtools that allow people to focus on their part and collaborate with others to do what they are not supposed to.We connect people through the hole creative process, and support them with design-thinking and businessdesign methodologies to partner and collaborate with other members of our community, providing them withan atmosphere for building on one other’s idea.5.1.b. A link between the Creators and the ConsumersThe creative players of the country are fragmented, there is none or rare collaborative spirit between the playersbut there is also no communication between the consumers and the makers or creator of Colombian creativecontent. The creative and productive structures of the country are struggling to communicate their valueprepositions to the different segment of the market and because of this reason their creations are not deliveringto them the value that they could. For this reason this project seeks to generate linking channels to breach thedistance amongst this players.The market for creators can have two different kinds of consumer. First, those that are seeking objects andproducts of self-expression with a high cultural relevance; this are the creative buyers, they represent the B2Ctarget of this project. This people can be from all over the world, and are people normally with high livestandards. In the local context this group is composed by a series of demographic groups that goes from therichest classes of the country, where people is educated and have a high level of exposure to internationaldesign and fashion; to the growing middle class where the rising salaries and, resent improvements that develophad brought to the country, are allowing them to become more consciences about what they consume, focusinga lot in aspirational products and services that they are starting to have access to thanks to their new purchasingpower. This kind of consumers are getting more engaged by international campaigns and products, and havebecome more attracted for international made products, despite of their high proudness for being Colombians,this is because they ignore the great outcomes that are being develop by the design and crafts communities intheir own country. 63
  • 63. Then there is the other type of creative consumers, the B2B market. This market is composed by the nationalindustries that are in need of access to creative people and their ideas to implement innovation inside theircompanies’ structures. In this moment the big majority of this segment ignores the relevance of design andcreativity for their businesses, they are normally driven by efficiency models, but each time due to the hardtimes that they are having to maintain a good competitive level of their business in the market, they arerealizing and becoming more aware of the importance of incorporating creative services into their processes. Inthis group are also a series of companies that have already started to innovate inside their structures and needsupport of the creative community to keep growing these activities.And finally there are the international brands that are planning to enter the local Market, Colombia has becomea mains business hub in the region and because of this reason a lot of international companies are establishingin this country to manage their local operation. These international endeavors are in need of involving the localcreative communities to develop specific products, communication campaigns and ideas to address the localmarket. They are a big source of inspiration for the hole Colombian community but specially for the creativeones, their experience in the international business and design worlds have show them the importance ofhaving a close relationship with creative figures, besides this companies posses a lot of insightful informationabout local and international markets.As it was stated in the problem, the under-appreciation of the local creative value amongst these two types ofconsumers is a characteristic in the region. For this, this project pretends to find solutions to this problem. Asan approach to this problem, the solution requires that a strategic partner, [+57], starts doing a series of effortsto communicate this two segments of creative consumers with the creators and makers of Colombia. It will berequired to understand the talents and the possible consumers that could be attracted by their offers, and theSeattle communication channels between them booth. For this there are two main strategies. (1) Create amonthly online publication that uses the connectivity power of the Internet and delivers strategically generatedcontent to draw attention from the consumer segments toward the local creative force, and (2) Generate aseries of commercialization and distribution strategies that facilitate the trading of the creative offers betweenthe makers and the consumers segment, this channels have to overcome the distance and communicationbarriers that are stopping the sharing of creative content amongst the players, and set efficient and engagingdistribution channels that are not as obsolete as the ones creative people are using, so finalize the transactionsand deliver the offer to those that are attracted by it.5.1.c. [+57] An On-line Magazine and Store for creative content.As it was mentioned in the previous section, the Colombian communities are requiring a series of strategies tofacilitate the shearing of local creative values amongst the players. For this, this project propose the creation oftwo different costumer channels: An online magazine, to communicate and promote the local creativeoutcomes of the local producers and makers, and an online store, to facilitate the trading of the productsbehind the stories that we talk about in the magazine. This will compose the value preposition that we offer toour first customer segment; the consumers. By being a creative content distributor that gives access toinformation, products and services using content and a trade place we will address this market needs. 64
  • 64. [+57] CREATIVE COLOMBIAThe first channel, [+57] publication is a magazine that runs specific research amongst the local andinternational design communities to spot insights that could help promote and establish the local creative andproductive communities amongst the different types of consumers. This channel will use the story tellingmethodologies to communicate the value of the creations, by generating conics, videos, footage and othermedia pieces, that count with an informative and entertaining narrative, reoffering to local products and thecommunities behind them. This channel will allow the creators and makers to address the consumer andbusiness markets telling them about what is new in the local creative context. People that see these publicationswill be able to understand what is accessible for them in the local design and cultural markets. This publicationswill work with a monthly topic that will be stated by the [+57] editors, who will be guided by the local eventsand trends to set a series of topics related to Design, Culture and Business. This issue will be composed by aseries of communities, products, trends and insights that this group believes are influential and can represent,and for this an art direction activity will be required.Then after people have access to the information about what is going on and if they seem to like it, they shouldalso have access to acquire this goods. This is way [+57] is not only offering information and content but goesbeyond that by offering the consumers the possibilities to purchase the creative makings we talk about, with[+57] online store, an e-commerce website that allows the consumer to purchase the products that arementioned in our publics. This is a strong merchandising strategy; nowadays consumers are really becominginterested in searching for information about the products they buy. As it was mentioned in the trend review,“5 Social Shopping Trends, Shaping the Future of Ecommerce” realized by Power reviews in may 2010, theconsumers are having a high tendency to do research and consult in the web for the products they consume,before they purchase them. But this behaviour is starting to be more focused on the brand and manufacturerwebsite: “ Research starts with search but happens on brand/retailer sites. A majority of shoppers (57%) beginresearch with a search engine; yet one-fifth choose either the brand’s site or a retailer” (Power Riviews, 2010).With this strategy we pretend to: Initiate the conversation, focusing on the fundamentals, that is theinformation that people requere before buying something, then, we eliminare what could degrade the custumertrust by focusing in the quality and not in the quantity of on the content, and also by having a strong opinionforce by being a publication, and finally we minimize the friction between engaging with contennt andpurchasin a product by facilitating the acces to the offers related to the content we generate.5.1.c [+57] A resource for local innovationThe country doe not only is in needs promoting and commercializing existing creative offers. We also need tokeep innovating and realizing new products, services and business with a high component of creativity andinnovation. But for being able to do this, the communities of designers and producers will need to have accesseducation and support to implement innovation dynamics that could generate new creative outcomes. [+57]offers a series of creative services to support the creative, productive and business communities in this task.This is the part where we need to set a value preposition addressed not to the consumers but to the creators.For them we are a resource of support, information and insights that collaborates along the whole innovationand development processes of their offers. We will offer these segment 3 basic services to this segment: 65
  • 65. (1) A retailing and promotion platform for their products and ideas, where the producers can upload their ideasand comments to address the consumer and engage them to then purchase the products using our online order,shipping & handling services that will allow the creators to focus on their creative activities and live the rest tous, this, implying no cost for the producers but just a small sales fee that is charged to the consumer, who willbe willing to pay it thanks to the previous engagement we did with our top quality content and to the comfortthat we offer them by not having to do product research in the street or going out of home to buy stuff that ishard to find.(2) A series of social and collaborative tools that will facilitate connectivity amongst the creative players and willencourage them to build together new ideas. These tools are composed by a series of content generationsystems that allow the creators after signing in to create their own creative profiles. Then if the craters want,they can go online and in the [+57] online platform create their own portfolios to showcase their previouscreation. The best of this work will be especially promoted by our editorial time.With this database of producers and designers we will facilitate networking and will make them more visible toeach other allowing them to establish business relations with each other through us.Other tools will allow the communities of companies and business that are seeking information, inspiration andideas from the creative communities to drive online and physical creativity dynamics as: brain storming sections,focus groups and inspiration gathering by hosting challenges for the consumer and creative communities onour online platform(3) A series of educational and informative services to upgrade their knowledge about innovation and businessplanning. Through a series of lectures and a series of strategic reports addressing the creative and productivecommunities with insightful information, we will help this companies to gain knowledge and become moreinnovative. These activities are not just only important to improve the innovation level in the country but arealso key activities to gain the trust of the community. By running design driven research and using it to generaterecurrent content addressing the creative society this business will enable the creative classes with usefulinformation we will become a protagonist amongst the design and business communities with a strong opinionvoice.5.2. The Strategy; introducing innovation into the local creative process.The startig question of this project was, how can business design drive innovation into the local creativecommunites? And or this the solution that was founded requieres a hole strategy that starts by engaigin thecreative community, wrising awarness about their talents, facilitating the distribution of their offers through theconsumers and markets. After all this strategies have achived, their main objective o f becoming of [+57] aprotagonist amongs the creative and productive communities then it will be able to drive innovation amongstthe members of the previouslly conformed community.This plan understands that introducing innovation to an efficiency driven society is not a simple task. First a lotof tabus and generalized fires need to be adressed and solve. There is a need to fist use the creative existingvalue to inspire those that at this moments are ignoring the importance of innovation for their indevors. That 66
  • 66. [+57] CREATIVE COLOMBIAway [+57] implementation strategies is composed by a series of phases that don’t run siquencially but in aparallel an interconected way. In this section we will understan better what every stratigic step refers to andhow it will be implemented.5.1.a Phase 1: Gather and inspire the local creative power with education.In order to start the communication and trading activities it will be required to understand the local creative andbusiness environments first, in order to set a series of strong relationships with the key players that will becrucial during future activities. This phase involves running strategic research of the business and creativeenvironments that surrounds local creative makings. This research activities will allow [+57] to gather usefulinformation that then can be use to address and engage the creative communities.During this phase the [+57] multidisciplinary team will run Radical Research sessions. By scanning the local andglobal design and business environments they will need to spot the key design and consumer trends, theindustry forces and market and macro-economical forces that can affect and involve any of the creative players.With this material we will generate a series of strategic reports that are rich in content and mindfully conceivedinsights that can be attractive for the creative community. This reports will be articulated with an informativenarrative through key-note presentations and group activities, as workshops and lectures.After the material has been created gathered the [+57] team will go and find the creative communities. For thisit will be needed to run a series of promotion activities in local universities, technical and research institutes,sector fairs and other kinds of institutions and events that gather this communities and that can help us findingthis creative talents. Simultaneously we will use social networks to promote our educational events and drivepeople to our website where they can find more information about the specific activity and buy the entrance tothose that are not free.These events will mainly gather the creative and productive communities to learn about design, innovation andbusiness. But beside of contributing to rise the education level and readiness of our community they will helpus to start doing a series of talent spotting amongst the participants. By delivering strategic design research andknowledge we expect to attract the creative community in a same location and introduce our selves to them andoffer our online magazine and store services for their convenience. This phase is crucial in the early stages ofthe business, it will allow it to build a community around it, but, this activities need to be constant through allfuture phases since it enables the creative people with better knowledge to produce better products.Phase 2: Discover & communicate the new creative talents.As it was mentioned before there is a proliferance of creative people in the academic and professional circles ofColombia society. This people come from all over the country, from the most isolated places in the mettle ofthe amazon rainforest to the capital city, Bogota. To be able to start its commercial an promoting activities thismodel needs to first understand who are the people that are having great ideas, ideas and projects that can be 67
  • 67. explored in the different markets and that are of need of promotion and commercialization channels to richthis markets.Through a series of talent scouting activities that will take place during he educational events, explained in theprevious phase, the [+57] team will start spotting and selecting a group of creative makers that posses ainteresting offer or a cool story behind their activities. All of this people will be addressed immediately and willbe invited to become part of our creator’s community.Ones a considerable amount of people with this characteristics become familiarized with the brand they will beinvited to sell their creative making through our website. But before taking into place this commercial activity itwill be required to use a series of communication tools to give their ideas meanings of relevance for theconsumer segments. These products normally count with a good product concept but are poor in the way thatthey communicate it. [+57] will assist the creative makers by offering them the tools to generate entertaininginformation pieces about their creations. We will ask them before starting to sell their products to submit acomplete description of the origin, techniques and communities that where involved during the entire processof developing their ideas. Then we will ask or help them to generate audiovisual content, that can be highresolution pictures of the offer, videos of the usage of the products and a large numbers of supplements thatexpand the description of the product and could help to be more appellant to the consumer eyes.Ones the first editions go public and people start knowing about us and our creative community this phase willhave a second cycle. When the development level of our online platform the people will allow us to, we willcrowd source this material through the web to the creative player. Through a competition dynamic, people willbe asked to submit the pitches for new products to be sold in our store together with the pieces of content thatcan help them win this competition. They will use our product presentation templates to upload a series ofwritten content, images, and videos that then they will pitch to the community for two kinds of feedbacks. (1) Voting. In this process we will showcase the pitched products and will ask to our website visitors to vote for them. This strategy will helps the business by encouraging the creators to talk amongst their friends about us by asking them to support them with their votes. An will also grant it with a series of customer insights for future developments (2) Pre-sales. With our selling platform the creators expecting to introduce their products in our online store will seed to set a minimum of teams to be pre sold before getting into the store. This helps them to run a market test before investing money in the production of certain products that the platform cannot assure them that will have involve sales to be sustainablePhase 3: Draw attention toward the creative people and their offers.Ones the material is gathered our editorial team will start composing a series of no less than three pieces ofcontent to publish together with the profile of the creator and the related products in our website. But becauseit was clear that the content has to be managed with specific care to don’t overwhelm the consumer thiscontent need all to be articulated in a monthly edition that will talk about an specific topic of cultural relevance.For this the Art Director will select a series of the best information pieces and products and will crate the [+57] 68
  • 68. [+57] CREATIVE COLOMBIAmonthly topic for the magazine and the [+57] monthly collection for our store. Those products that cannot bearticulated into the month edition will be accessible by the store or magazine links to the community wherepeople can see all the information and offers uploaded by the name of specialty of their creators.In the first editions all of the material will be specifically selected by our team, and organized in collections thatbased on our radical research activities seem to be relevant for the creative markets. But after we start crowdsourcing the material of our store to the creative community, the products will have to go through a curatingprocess where very pitch will be evaluated before going into a product collection or before their story becomespart of our monthly topic, for this the [+57] art director will have to make use if the insights that where spottedduring the previous market analysis activities, the customer votes and his personal criteria to select the bestproducts and generate a new monthly topic.Phase 4: Drive innovation amongst the creative players.This is the final phase of the strategy. Ones the publication and stores have gathered the creative community inone single platform that they will love and follow due to its high level of creative content and the quality of theproducts that we promote, the final challenge can be achieved; drive innovation amongst out communitymembers. Now counting with the community and the opinion voice that the previous phases have given thebusiness, it can run a series of strategic activities that will allow to drive innovation by facilitating collaborationamongst the players.During the previous phases a complete database with the contact information of the community members willbe available to our viewers. Now with the creative portfolios and the list of outstanding members [+57] willbecome a networking agent between the design, productive and business communities of the country. A localindustry that is looking for a creative collaborator to develop a new product line or idea can consult with ourplatform to find those people and establish a creative relation with them.But it goes further than that. Our solid and interactive web platform and creative community will allow [+57]to run innovation dynamics, like crowd sourced brain storming sessions and inspirational footage gathering.The idea is that with our community of creators and consumers we will allow local partners and clients to runthis activities, be it online or if its required by hosting physical sections organized and hosted by us.This phase also contemplates the power of challenges as motivators for great creative outcomes. With cases asOpen IDEO we were able to see how running challenges amongst the creative community can be a greatsource of innovation for society and of insights and ideas for an specific client. For this the business will helpand assist the local industries to crest challenges addressed to the creative community to develop new productslines and services together. 69
  • 69. 5.3 The scenarios, how does it work?During the strategy implementation, the company will need to set relationships with a series of differentcostumers. Some of them will have already developed products; they are the ones that will start to feed thesystem with their ideas and stories. Then they can also be people with a great idea but that lack resources tobecome of it a market ready product, they are the second group of costumers. And finally there is a series ofstrategic partners and clients form the different industrial sectors that will come to us for support in theirinnovation processes.All of these players have the common characteristic of being part of the creative Colombian ecosystem and sothey are part of the [+57] Community. It will be requires establishing a different kind of relationships betweenthe platform and these players in order to address their individual need and characteristics. In the next chapter ahypothetical case will be explained for each of this three key players. Showing the platform functionalities thatsuite them better.5.3.a The Inspirational Creative Maker; the one with a developed productThis is the case of the Creative Makers. People that have already market ready products and that are lackingcommunication and update distribution channels to access the market. The editorial team will spot this peopleduring the educational activities of phase 1. They will be personally addressed by the brand representatives andinvited to become [+57] members. They are key players during the start of the website activities, because withthem is that the store will start its commercial activities and with the stories behind their products the firstpublications will be generated.5.3.a Image1: Creative Maker [+57] profile page. With content and products attachedAll the members that make part of our creative community will have a personal [+57] profile page where theywould be able to upload the basic information about themselves, and that will host all the information andnotes created by them or by the editorial team. This profiles should include the professional background of thecreator, a contact number or email in case that some one is interested in their work, and if they wish so, they 70
  • 70. [+57] CREATIVE COLOMBIAcan also use one of our creative C.V templates to have a complete online curriculum to show to show futureclients.The products of this designers and creative people will be uploaded during the first monthly edition by the[+57] editorial team. But before doing this they will generate a series of content pieces reporting the value andquality of the products. This content will be carefully generated by the editorial team to communicate the valueof this creations to the public that will read our magazine and hopefully will be engaged by out stories that willgenerate in them a desire to go on the shop and purchase them. Then a special section in the site store willshowcase these products, if they get to be part of the monthly selection. If not this products will be accessibleby the creator profile site where they would be able to run a personal store.5.3.b The Inspired New Talent; the one that is developing an idea.This is the case of the previously defined Creators and Makers. These are the people with great ideas that havenot been implemented jet and that are in need of support and market testing before being released into themarket. Also it could be the case of those that have products that are market ready but because of a lack ofcapital or channels have not been jet lunched into the market.5.3.b Image1: Maker [+57] profile page. With attached portfolio.As the Creative Makers, that are defined in the previous scenario this people need to open an account, by doingthis they will add the basic information of there professional profiles an curriculums. But there is an extra toolthat [+57] platform offers them; the portfolio creator, with this tools the creates and makers will have theopportunity to chose from a series of carefully defined presentation templates to add their information. Withthe help of the out design team this templates need to be created to match the visual look of our website and toenhance the qualities of the products and community members that they host. The creators will first need toupload a series of projects that they have previously developed, these projects can be on any stage of thecreative process; they can be even undeveloped concepts. 71
  • 71. After selecting a template and uploading the portfolio of project together with their basic information thecreator or maker will be able to post a pitch for one or more products related to this projects to be added to thesite shop. This project pitch is composed of a series of images and a minimum of one project abstract and onesupplementary content piece that could be videos or written articles, this content pieces have to clearlycommunicate the relevance and value of their product and the reason why they think that the communityshould chose their product to get into our store. Parallel to this the creator should specify a minimum amountof units to be pre-sold before they can go into the store database. After the pitch is uploaded, the editorial teamwill have to accept them and if they go through this process they will be posted in the store candidates websitewhere people will be able to vote and place pre-orders. Then the creator should be assisted with a series ofrecommendation to do social advertisement of their pitch in order to get the stipulated amount of pre-ordersand a good amount of votes. If the minimum of pre-orders are achieved then the website will allow thisproducts to become part of the store catalog, if they don’t the pitch will be rejected. A product can be posted amaximum of 3 times with this method.5.3.b Image2: [+57] store main page. With attached portfolio.This products will be showcased in our store section of next month candidates, where people will be able tovote for them and place pre-orders. Ones the voting period is over, the editorial team will have a creativesession where using the statistics of votes, the relevant information spotted during the research activities andthe criteria of our art director will decide the products that will be part of next months product selection andwill be specially promoted by the site.With the online pitch and pre-sales system, people with products that are ready will count with the possibility torun previous market tests amongst the [+57] community. Is important to the creators and makers in Colombiato count with a start-up capital for running the first productions. For this, the system will represent a safeinsurance for them. Also, because the store should not be as other online stores, like EATSY.com, where therange of products is so huge, the selection stagy will ensure that consumer will first have access to reallyoutstanding products. 72
  • 72. [+57] CREATIVE COLOMBIA5.3.c The Industrial Partner Seeking Inspiration; Those who need new ideas.For this last scenario I will discuses the case of the strategic partners. They are people from the industry that arewilling to collaborate with the creative community to generate new ideas, develop new product lines orconceive new business strategies. After analyzing the case studies of OPEN IDEO, COMMON, NAPKINGLABS, and other platforms that allow to run collaboration dynamics using the connectivity features of theinternet, it was spotted the opportunity that this creative online activates represent to drive innovation amongsta collaborative community.5.3.c Image1:[+57] challenge main page, for Payless. With the collaboration of the established designer Silvia Tcherassi.After generating and establishing a rich and creative community through our online magazine and store, we willaddress the local industries offering them strategic design consultancy services. During my experience workingwith Studio Forakis, here in Milano I understood that design not always has to be realized inside the structuresof a company but can be outsourced, what allows the companies to have an external and more balancedperspective at the moment of having new ideas and at the same time reduce costs, avoiding to have a designerthat some time is not required full time in a company but only in certain moments. For this the brand willintroduce to the local industries our services to run [+57] challenges. These events will be crowd-sourcedthrough out online platform to the creative community.The first step when a client needs to run a challenge through our website will be to find one of the experienceddesigners that have been participating with us and that we know, thanks to the portfolios and projects that wehave previously manage for them, that are the correct people to lead this projects. After the mentor is selectedand they have accepted to lead the challenge; them, the client and our creative team will have a briefing sessionwhere a discussion of the situation will allow us to define a challenge brief document. This brief will be a digitaldocument containing the main explanations of what we are seeking, without blocking the creativity with a lot ofrules or direction. Instead the brief will contain a clear description of the company, their history as well as a linkto the Mentor [+57] profile page where they could find all the information about the creator that is leading this 73
  • 73. project. Beside this two basic pieces of information, the brief will also contain a series of inspirational contentthat will help shape the direction of the project and possible solution; images, videos, links and documents thatcould help the creator during the creative process. This document will also include a clear description of: theobjectives, problems, activities and millstone for the development of the project. Then a price statement has tobe done by the client, this is a clear document that has to explain and make clear to the creative communitywhat the price is will be, when will they get this price and how the intellectual properties related to this projectswill be manage by the challenge sponsor; then before launching this project this document will be carefullyrevised with the assistant of our legal advisers and published.After we have composed the challenge brief this document will be uploaded to our challenge website and willbe promoted amongst the creative communities. Some of this challenge will require having collaborativeactivities to support the ideation process of the designers. These activities could be: Brain storming sessions,inspiration collection, focus groups and sketching portfolio. This undertakings can be hosted in our websiteusing our social collaboration platform. In some cases when the project requires it and the budget of the clientallows it, this creative dynamics will not be hosted completely in a virtual way but will be supplemented with aseries of activities that will be host by the Challenge Mentor, and sponsored by the client. Here people willreunite in a physical space to drive the same activities as mentioned before but with the assistance and feedbackof the mentors and the clients. Of course all the material and key insight that come from this physical activitieswill be documented and uploaded to the [+57] challenge page.5.3.c Image2: [+57] Magazine main page. Featuring Challenge with the shoe manufacturer Payless ShoesOnes the community of creators has started their participation in a challenge they will be asked to upload anysolution or contribution to the challenge site, where the clients will be able to see the proposal and if theywishes to do so, they will be able to ask the community to rate and vote for each proposal. This adds an extrafeature for our clients, now they will be able to establish tight relationships with possible consumers by allowingthem participating in the development of the stuff that they will consume in the future, something that rises thecompany public awareness and has proven to be a strong tool to gain new loyal clients. 74
  • 74. [+57] CREATIVE COLOMBIAThen the winners will be selected. During this selection process the client will be assist by the [+57] team todefine witch are the best directions presented by the creative community. The winner will be publish in ourmagazine and we will make sure that they get the price that was proposed in the challenge brief. After this, theclient will also count with the help of the team to find the proper players amongst pure community database totake the crowd sourced ideas into the next step, implementation. During this phase we will connect the makersand creators that could assist the client and will manage the collaboration between them, hoping to engage allthe players to generate new products.5.4 The Business Model.In this chapter, the business model of this project will be defined, following the structure proposed byAlexander Oswalder in his book, BUSINESS MODEL GENERATION (Oswalder, 2010). Here it would bedefined the way in which [+57] will create, deliver and manage local creative values through a business.Previously we have defined some of the components of this business model, we talked about the costumersegments, as well as the customer relationships that we will establish with each of these groups. We have alsodefined that the main channel to establish this relationship will be a web publication and magazine that willaddress both the consumer and business segments. 5.4. Image 1: [+57] Value Preposition and Costumer segmentsNow, we will first introduce a simple overview of the business model and how the positioning strategy toestablish this business in the local competitive landscape. Then we will go more in detail and explain the keyactivities and resources that are required to deliver our value preposition to the costumer segments. Finally Iwill do a fast overview of how the business is going to make and spend money.5.4.a Business Model Overview and Business Positioning Strategy.This Business model can generally be defined as a multisided platform-model. Oswalder defines this pattern ofbusiness as: “multi-sided platforms bring together two or more distinct but interdependent groups ofcustomers. Such platforms are of value to one group of customers only if the other groups of customers arealso present. The platform creates value by facilitating interactions between the different groups. A multi-sidedplatform grows in value to the extent that it attracts more users, a phenomenon known as the networkeffect.” (Oswalder, 2010) 75
  • 75. 5.4.a Image 1: [+57] Business Model Overview, Multi-Sided PlatformThis is really clear for us since first we have by one hand the customer segment A that refer to the B2B, orconsumer driven segment. For them we are a creative content distributor and curator. Meaning that though anweb based channel, we deliver to them information through a series of publications generated to engage andentertain them using specialized content about the creations and the stories of the people behind them. Thenwe are also curators and distributers of a selection of products and services that we distribute through ouronline creative store.But this will not be possible without first establishing a strong bond with our other customer segment; thecreators and producers of local creative makings. They are the ones that are feeding the magazine with storiesand the shop with offers, and with out them this model will have no relevance. The community of designers,craftsmen, and local producers mainly composes this segment. To them, we are mainly a local resource forinnovation and scaling their ideas. First of all to them we offer a service of promotion and distribution of theirproducts. Then we will offer a series of support services that are composed by our networking platform andour education and collaboration activities. But this will not be possible without the support of the Segment Athat with their economical contribution will help funding most of the activities that don’t count with andindustrial sponsor and that will never be possible to maintain without the support of the store revenues. Now we will need to understand what kind of positioning is possible for this business in the global and local competitive landscape of the creative business that where defined in section 1.1.a and that refer to those business that deliver, communicate or manage creative values. This project is conceived as a similar business model that what the magazine monocle does. An from the beginning of the solution statement for the problem it was clear that 5.4.a Image 2: [+57] Creative Business Composition the solution should be positioned really near to thisgreat Publication. We expect as them as have a composed business model of the three main creative businessstructure. 76
  • 76. [+57] CREATIVE COLOMBIAFirst of all we will be a Product Driven Business, by delivering products to the consumers and by collaboratingwith our creative community in the development of new offers. This model also has a component of a CreativeMedia Driven Business, using content generation and addressing both; the B2B and B2C markets. This contentis recurrently generated to deliver information and products to both customer segments. And finally we willenhance a the business model by being a Process Driven Creative Business; that uses collaboration dynamicsand offers networking services to the creative communities.Since the majority of our activities are focused to generate content that communicates and delivers the creativevalue the main component of this different business compositions will be the Creative media one. In the localcontext this landscape is really unexplored. The only two magazines that exist, Proyecto Diseño and Casa Viva,are dedicated only to generate publications and have little involvement with the product driven businesses orwith the creative processes driven businesses. For this [+57] will be positioned in a unexplored area of thecompetitive landscape of the country, being a protagonist that influences the three basic creative business, andthis I love. 5.4.a Image 3: [+57] Positioning map in the local creative Business Models Landscape5.4.b. Key Activities and Resource.The main resources that will be needed to set this business will be to have a collaborative team of businessdesigners, web and user experience designers and art directors that will also perform the function or journalists.This group will be in charge of all the series of activities that we will host and will become the future opinionvoice about creativity and innovation for the country.Then the second most important resource for us will be to have a solid online platform that can run all theactivities and functionalities mentioned before. During the development process of this platform theinvolvement of experienced web designers and user experience experts will be needed. The platform has tocount with a high level of usability and engagement, showing information in a clear and simple way butallowing the user to expand this information as much as needed. This platform should also count with a seriesoff social media and database characteristics that allow it to run crowd sourced dynamics and the creativitysessions that it [+57] host for its strategic clients and partners. 77
  • 77. A series of activities will be required to address the consumer segment. First, all the content generationactivities will need to be done, here the group of art directors and journalists will need to start the researchactivities to generate the first pieces of content, articles, videos and notes about local creativity will need to beproduced by this team in order to feed the first edition. This activity will continue through the whole processbut the community will support it during the advanced phases, when the generation of this content will also becrowd sourced to the creative community. Ones the first pieces of content are ready and ones the platform hasbeen open a series of promotion and marketing campaigns should be deployed through social media and highlypopulated places of the main cities to rise awareness bout the website and our services. And Finally all the storeactivities will need to be handled, the orders will start to be placed by the consumers and we will need tocommunicate and manage them together with the creators.Then all the innovation dynamic will be deployed. Through a series of talks and public events, where the localindustries will be present, we will do simulation of the online and physical innovation activities. Client will startsourcing our services and we will need to start managing the activities with the creative community. Parallel tothis all the networking activities will need to be done, we will start to link the different creative players, givingthem advice about who are the people that can collaborate in their new endeavors, its about recommendingone to an other and, generate new business opportunities and partnerships that will benefit our clients and ourcommunity. Here it needs to be mentioned that a lot of this activities will be able to run completely online butthey should not be restricted only to this channel, in order to address the local community where the usage ofinternet is high but doesn’t reaches all of the player, some face to face activities will need to compliment thevirtual ones.5.4.c Key partners.Because we are a collaborative community each member of our community will be a partner for us, they will allcontribute with their products, stories and collaboration. But there are some partners that are strategic for thelogistic setting of the Business and that are the ones I will refer in this section. Key partners will facilitateservices that we are not able to perform or that would involve a high inversion that is not really required.Establishing strong links with these partners will be crucial for the success of the project.First of all there is the group of institutions that already have been gathering the creative community.Institutions as EL TALLER DE ARTES Y OFICOS JULIO MARIO SANTO DOMINGO, an organizationthat gathers and educates the productive and crafts communities of the country, for example will be one ofthese partners. This institution will be crucial to find the talent and are a great source knowledge and inspirationfor [+57]. In return this partners will receive recognition and free advertisement in our publications, but themost important is that they will find a channel that is needed to them to promote the products of theircommunities. In this group we also find design schools, governmental institution in charge of protecting thecultural identity of the country and technical education institutes.The other key partner will be the logistic ones. They are the companies that will host our website, manage the 78
  • 78. [+57] CREATIVE COLOMBIAshipment and storage of orders. The majority of these partners will be paid by their services. All the onlinemanaging will be outsourced to the company PAGOS ONLINE, a local payment portal similar to Pay Pall ,that counts with the infrastructure to allow different payment methods that goes from credit card to physicalrecollection of payment at the customer house. For the order handling a local company like PAGOS ONLINEis require because they know how the ecommerce customers behaviors operate in the region.5.4.d Revenues and Costs.The revenue structure of [+57] is fragmented amongst a series of streams that can be deviated by customersegment. First the B2C revenues will mainly come from the online sales commissions that will be generated bythe online store. This revenue is of grate importance, mainly in the first phases, before other revenues streamsbecome available. Over this sales [+57] will set a fixed fee that will be charged to the consumer. This fee willnever be communicated as part of the product price, because it is not, we are committed to communicate thereal value of Colombia creation, and because of that the creators should be the ones setting the process for theproduct. Our commission will be communicated as an extra service that will be paid by the people because theyknow our cause and support our activities. Consumers can also do donations to [+57] this strategy will seek torise funds to support the community building activities and take education to the less wealthy sectors of thecountry that are in deep need of learning about innovation, design and business.Then parallel to this revenues streams, coming from our B2C market, there is a secondary revenue stream thatwill comes from the B2B markets; the community of creators, clients, and partners. This revenue stream comemainly from education sessions that we will be hosting constantly, with this activity the community of designersand makers can have access to our research reports that will talk about industry insights and finally frombusiness modeling and design-thinking modules. Ones we start the collaboration and starting consulting phase,we will have a high percentage of our revenues coming from this actives, with us, the companies will be able todevelop product and business model innovations.Having these revenues will imply also a series of costs that will be caused first of all by the community settingactivities. Running the design and innovation talks will imply a series of expenses related to the logistic ofhosting this type of events. This cost will be covered y the fees we will charge for the community and the restof it will be used to fund the second expense that will appear, the creation of the platform and website that willallow our future activities. The overhead costs will mainly represent human labor and the expenses of or officeand scouting activities. Since the beginning of this endeavor an inversion on marketing and branding will berequired, [+57] will need to become a known brand and this misplays a high amount of communication andpromotion expenses.5.5 Scalability & future implementation.This section will talk about how [+57] could expand its community and commercial activities after the businessis positioned and sustainable. In this moment this is mostly an imagination exercise since there is an infiniteseries of possible scenarios in which [+57] could start to get involve. First of all the possibility of coproducing a 79
  • 79. special line of [+57] products together with the partners and the community is a very possible futureimplementation for this business model. Counting with the talent and the resources to run innovation amongstthe players it will be very interesting to get more involves not only as promoters, distributors and consultants,but also as coproducing or by investing money and knowledge in the development of new products, servicesand business that can become long-lasting and highly profitable thanks to their high creative levelIn this thesis we talk normally of the creative making as an outcome coming mainly from the design and craftsworkforce of the country, but the reality is that they can come from a series of different activities that implycreativity, that are all the human activities. We can see this brand collaborating with other local industries likethe touristic industry, and the alimentary industry, the sectors that are dedicated to retailing and entertainmentcan also become involved with the brand. Social ventures are also in need of creative collaboration and socialawareness. And so on I could keep explaining how a series of different sectors could become part of the [+57]model, but I won’t. The point here is to understand that collaborating to support the local talents, can beexpanded to a lot of commercial and human activities that are present in the country and, that can beconsidered in future stages of this business.Besides this expansion of [+57] to other fields in the country, this model could be expanded to other countrieswith similar conditions, other countries that are developing economies and that need to learn and startimplementing innovation dynamics and managing their creative outcomes, that will represent a alternative wayfor their economical grow, one that more is centered in local talents and outcomes. The idea will be toimplement this concept to similar brands, like; [+54] Creative Argentina, [+52] Creative Mexico… and so.Ones this model has shown its power by re-enforcing the Colombian creative value, it will be lovely to see itovercoming local frontiers and establishing in other nation to help creative and productive communities in allthe developing countries where a collaborative and innovation driven brand can represent a source of changeand an improvement to the live of their citizens.5.6 Final ConclusionsSo finally we can go back to the initial question; how can Business Design drive innovation into the countries’ creative andproductive force? The answer to this question is not very punctual, that’s because in order for Business Design todrive innovation, first it will be need to consolidate the creative masses, and support them to generate a highereconomical value of their creative activities. This talent is abundant in our country but is in deep need of beingmanaged to become a profitable value and, Business Design, looks like the perfect manager that could assistthis communities to create, communicate, deliver and capture this value. It can help them to set innovativebusiness model to exploit their talents and generate new offers.What this thesis propose is just an strategy of how this could be done; never the less the country will need tounderstand that their creative communities are a diamond in the rough that could be easily exploited, it wasnice when we talked about creativity in terms of a personal expression, but now is time for us to talk ofcreativity as an economical asset for the country and high leverage factor for the country’s economic growthprocess. 80
  • 80. [+57] CREATIVE COLOMBIA 81
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