This document discusses the importance of digital transformation in cultural organizations. It summarizes the current state of digital media and findings from research with digital managers and CEOs in cultural organizations. The document concludes with six recommendations for CEOs to better lead digital transformation, including owning the organization's digital ambition, maintaining a strong relationship with the Head of Digital, keeping digital priorities under review, operationalizing digital strategies, investing in digital infrastructure over marketing, and increasing senior team digital literacy.

1. Leading Digital Transformation
in the Cultural Sector:
A resource for managers
IT4Arts Meeting 2014-11-06
Alex Morrison
Managing Director at Cogapp
www.cogapp.com

2. Overview
This digital thing: how important is it?
What does it mean for the cultural sector?
How should our cultural organisations respond?
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

3. Overview
1. Situation Report: The Digital Media Revolution in the Cultural Sector
2. Leading Digital Transformation: Six Recommendations for CEOs
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

4. Chapter 1. Situation Report: The Digital
Media Revolution in the Cultural Sector
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

5. 1454
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

6. 2007
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

7. Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

9. 94
Screens Today =
You Screen...I Screen...We All Screen
Image: Telegraph.
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

10. …Re-Imagination of Data –
Big to Bigger to Bigger and It’s Still “The Wild West”…
Amount of global digital information created & shared – from
documents to pictures to tweets - grew 9x in five years to nearly 2
zettabytes* in 2011, per IDC.
8,000
6,000
4,000
2,000
0
Global Digital Information Created & Shared, 2005 – 2015E
2005 2007 2009 2011 2013E 2015E
Digital Information Created &
Shared (zettabytes)
Note: * 1 zettabyte = 1 trillion gigabytes. Source: IDC IVIEW report “Extracting Value from Chaos” 6/11. 54
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

11. 62
Photos Alone = 1.8B+ Uploaded & Shared Per Day...
Growth Remains Robust as New Real-Time Platforms Emerge
Daily Number of Photos Uploaded & Shared on Select Platforms,
1,800
Day
per 1,500
Shared 1,200
& Uploaded 900
600
Photos 300
of # 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD (MM)
Flickr
Snapchat
Instagram
Facebook
WhatsApp
2005 – 2014YTD
(2013, 2014 only)
Source: KPCB estimates based on publicly disclosed company data, 2014 YTD data per latest as of 5/14.
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

12. 109
YouTube Channels = Huge Reach + Growth
Channel Subscribers
(MM)
Y/Y Growth
(%)
Music 85 166%
Gaming 79 165%
Sports 78 164%
News 35 213%
Popular 28 133%
Spotlight 22 342%
Movies 18 195%
TV Shows 12 106%
Education 10 --
Music Gaming Sports
News Popular Spotlight
Movies TV Shows Education
Source: YouTube.
Note: Y/Y growth rates as of 5/14.
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

13. Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

14. 244 Years In, Encyclopedia Britannica Went Out of Print in 2012
1,000
100
2012 – Encyclopedia
Britannica Announced End
10
1
1,000
1990 – Britannica Sales
Peaked at 120K/year
100
10
1
1993 – Microsoft Introduced Encarta
Encyclopedia for PC @ $99
2001 – Wikipedia Founded, Today*
Wikipedia Has 485MM Monthly
Unique Users
of Print Editions
2008 – Microsoft Shut
Down Encarta
1990 1993 1996 1999 2002 2005 2008 2011
Wikipedia Monthly Active Users
(Log Scale – MM)
Britannica Annual Hard Copy Sales
(Log Scale - 000)
Encyclopedia Britannica Hard Copy Sales vs. Wikipedia Monthly
Active Users (Different Scale), 1990 – 2012
Encyclopaedia Britannica Hard Copy Sales (000s) Wikipedia Monthly Active Users (MMs)
Note: *as of 9/12, per comScore global data.
Source: Kellog School of Management, Shane Greenstein and Michelle Devereux, “The Crisis at Encyclopedia Britannica.” 30
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

15. Museum directors talking about digital...
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

16. “For the Smithsonian to remain a vital institution at this
important time in our history, we need to fully engage
younger generations with our collections and our
knowledge.
We need to use new digital technologies to their fullest
potential so that we can fulfill the Smithsonian's 19th‐century
mission—‘the increase and diffusion of
knowledge’— in a thoroughly 21st‐century way for the
benefit of all Americans and people around the globe.”
Smithsonian Secretary G. Wayne Clough
January 2009
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

17. Tate director Sir Nicholas Serota said:
"In the coming years we need to devote as much
attention to the digital as we have given recently to the
physical expansion and improvement of our buildings."
October 2013
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

18. "We're at a phenomenally interesting time in terms of how audiences,
technology and institutions are recalibrating to each other," he said, citing,
for example, the way many visitors now take and share photos while in
the museum.
"Along the way comes disruption and change and discomfort," Mr. Lowry
added. "I like being tested by the things that make me uncomfortable."
He said the online-only platform of "Design and Violence" "would have
been unimaginable a decade ago," but now may become a new format for
major projects.
Glenn Lowry director of MoMA
November 2013
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

19. Interview with Thomas Campbell, Director of the Metropolitan
Museum of Art
Q. What is the biggest issue facing museums today?
A. Impacting all of us is technology. We’ve made a huge investment in
transitioning from being an analog museum to a digital museum and
there are great opportunities in that to see the collections on the whole, to
deliver the information to our audiences in new ways. Still, at the end of
the day, the core values remain the same: It’s about bringing people face
to face with works of art and stimulating their curiosity.
from New York Times article: The Met’s Director Looks Ahead
March 2014
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

20. Chapter 2. Leading Digital Transformation
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

21. Digital in Cultural Organisations
Business Model for Digital in Cultural Organisations
Provide
infrastructure
Acquire content Provide
service
Acquire trac
Convert for
value
Development
Backlog
Every element of this model is evolving rapidly
and continuously
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

22. Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

23. Research
Online Survey
Desk Research
Face-to-face interviews with Heads of Digital
Face-to-face interviews with CEOs
Group meetings with Heads of Digital
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

24. Findings
On the one hand, there is a clear perception from digital managers that there is
insufficient support, engagement and leadership from the top and that this is
hampering their efforts to drive digital strategy.
On the other hand, charity leaders are frustrated by lack of clarity about the
application of digital to their organisations and lack of evidence on which to base
strategic decisions.
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

25. Findings
Over half of the digital managers we surveyed believe their senior managers have a
poor understanding of digital.
Those we spoke to say that while digital is prioritised on paper, in practice senior
managers are very unclear about what they want.
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

26. Six Recommendations for CEOs
Recommendation 1: Own and drive your organisationʼs digital ambition
Recommendation 2: Maintain a strong chain of command to your Head of Digital
Recommendation 3: Keep the position of digital in your organisation under review
Recommendation 4: Operationalise digital
Recommendation 5: Invest in digital as infrastructure, not marketing
Recommendation 6: Make your senior team more digitally literate
How does your organisation stack up against these
recommendations?
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014

27. Thank you
Copies of this presentation and our report are available from:
Alex Morrison
Managing Director at Cogapp
alexm@cogapp.com
@Alex__Morrison
www.cogapp.com
Leading Digital Organisation in the Cultural Sector © Cogapp, 2014