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BUSINESS MODELS
AND INNOVATION
Dr Jonathan Sapsed
CENTRIM
Service versus product
• Business Models are ways of generating and capturing
  value
• Debates over product versus service strategies
  • Productisation – difficult for B2B service providers
  • Content creators- value
• The Brighton cluster is predominantly a service economy
  (offline important to 70%)
• IP revenues are low (<5%), even if over half the firms are
  producing materials eligible for copyright
What hinders Brighton businesses?
• “The current economic climate” (68%)
• „Too much competition‟ say half of content developers
• Surprisingly low (<20%) - difficulties accessing external
  finance
• Unsurprisingly low- infringement of IP
• Skills gaps for ICTs, managerial skills for creative services
Competitive advantage
• Technological expertise important (>80%)
• But also artistic and creative expertise (>75%)
  • „Fusion‟ is subtle
• Managerial expertise (>75% digital media)
  • Gap a hindrance-opportunity for development
Innovation- the successful exploitation of
new ideas
• Solving clients‟ problems ingeniously- co-creation (clients
  and users big source of ideas)
• Exploration- 25% firms give staff time to explore
  • The „Black Pebbles‟ from Black Rock
    • Black Rock – exploration
    • Network and community- FB group, meet-ups
Next steps
• Complete data collection and analysis
  • Determine business performance factors
  • Integrate results
  • A model for learning and improvement
• Short courses and activities
• Raising the cluster‟s profile
  • Links elsewhere
Types of revenue- Services, not IP
Hinders to business- not ££, not piracy
Producing copyright materials, trademarks
low
Types of revenue- B2B dominates
Interdependence- what suppliers,
collaborators and outsourcers provide
Competitive advantage- tech, arts/creative
Doing and creating new things(Innovation)
Innovation – exploration, exploitation and
empowerment
Idea sources- clients and users

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Business Models and Innovation- Dr Jonathan Sapsed

  • 1. BUSINESS MODELS AND INNOVATION Dr Jonathan Sapsed CENTRIM
  • 2. Service versus product • Business Models are ways of generating and capturing value • Debates over product versus service strategies • Productisation – difficult for B2B service providers • Content creators- value • The Brighton cluster is predominantly a service economy (offline important to 70%) • IP revenues are low (<5%), even if over half the firms are producing materials eligible for copyright
  • 3. What hinders Brighton businesses? • “The current economic climate” (68%) • „Too much competition‟ say half of content developers • Surprisingly low (<20%) - difficulties accessing external finance • Unsurprisingly low- infringement of IP • Skills gaps for ICTs, managerial skills for creative services
  • 4. Competitive advantage • Technological expertise important (>80%) • But also artistic and creative expertise (>75%) • „Fusion‟ is subtle • Managerial expertise (>75% digital media) • Gap a hindrance-opportunity for development
  • 5. Innovation- the successful exploitation of new ideas • Solving clients‟ problems ingeniously- co-creation (clients and users big source of ideas) • Exploration- 25% firms give staff time to explore • The „Black Pebbles‟ from Black Rock • Black Rock – exploration • Network and community- FB group, meet-ups
  • 6. Next steps • Complete data collection and analysis • Determine business performance factors • Integrate results • A model for learning and improvement • Short courses and activities • Raising the cluster‟s profile • Links elsewhere
  • 7. Types of revenue- Services, not IP
  • 8. Hinders to business- not ££, not piracy
  • 10. Types of revenue- B2B dominates
  • 13. Doing and creating new things(Innovation)
  • 14. Innovation – exploration, exploitation and empowerment