Presentation within the MOSTI MSc on Service Innovation. What are creative industries? How do they innovate? What is digital convergence? why does it matter?

1. Innovation, Convergence and Creative (Service) Industries Ian Miles [email_address] MOSTI service innovation seminar 8

6. DCMS - definition http:// www.culture.gov.uk /what_we_do/creative_industries/default.aspx/

8. “ Creatives” in the UK – not all in creative industries, by a long shot! Source: NESTA, Beyond the Creative Industries

12. Free Newspapers Revenue Model Innovation Some examples of Innovation in Creative Industries

13. Internet Narrowcasting Innovation in service concept, design, delivery, interaction with (and among) clients

14. Digital Cinema (+3D) Innovation in Production, Distribution and Delivery, User Experience

15. Videogames Innovation in Delivery, content, user interfaces, user interaction (online games etc)…

16. Design Process Innovation – becoming product innovation (virtual prototyping etc)

17. Broadcast Media Content Innovation – routine (“fresh” content vs “novel” content) and generic (new content v new structures for content). Plus User engagement innovation

18. “ Content is King” Is the reason for the avoidance of this area a matter of these activities having been seen as nonessential luxuries – or is it the mysteries of content? (c)

21. Hidden Innovation in the Creative Industries

28. CREATIVE FIRM PRODUCTION & PREPRODUCTION PRODUCT COMMUNICATIONS USER EXPERIENCE 1 General administration & financial management 6 Back-office/ back stage production processes, design process 11 Product format (“cultural product”, performance features of product) 5 Internal communications, Management of HR & work organization 2 Revenue Model 3 Value Chain Location 7 Transaction (purchase, lease etc.) 4 Communications with suppliers, collaborators, supply chain partners etc. 8 Marketing and customer relationship management 15 User Capabilities & Media (e.g. Consumer Electronics) 12 Delivery of Product 13 User Interface with Product 14 User Interaction, including supply & configuration of content 9 Content of Product (cultural concept etc.) 10 Performance and production processes Areas of innovation Innovation = doing new things (or old things in new ways) – with or without new technology and technique FRONT STAGE BACK STAGE

36. A Three-Dimensional Media Universe Moving over Space - Telecommunications Storing over Time, Reproducing- Published Media (Broadcast Media) Transforming, Processing - Computation 1 to 1 1 to many Information CONTENT INTERACTION CHANNELS PROCESSING COMMUNICATION

37. A Growing Market Space… Increasing size of markets

38. … Within which the offerings of established industries expand == == === =Increasing = == proliferation of = == === = products

39. The Expanding Media Universe Communications Computation Content Time The three “trumpet” shapes represent telecommunications, computer, and broadcast & print media fields. Over time the product space to which they contribute, and its market size, expands, and the three fields overlap increasingly.

40. Early Industrial Society INFORMATION GOODS & SERVICES COMPUTATION (TELE) COMMUNICATIONS Paper-based communication : Stationery, Post. C19th - telephone, telegraph Mechanical information processing : very limited till C20th - punch cards, calculators Paper-based information products - books, newspapers, etc + live consultation & entertainment + mechanical recorded media (gramophone etc) All (but telecomms) based on PHYSICAL TRANSPORT

41. The mid-1950s BROADCAST + PUBLISHED MEDIA COMPUTERS Telephone Telegraph TV (mainly monochrome)AM radio, LP records, valve amplifiers Very few, very large, valve-based electronic computers; Keyboard calculators TELECOMMUNICATIONS PHYSICAL TRANSPORT plus increasing electronic delivery (telecomms, TV, radio, etc.)

42. The mid-1970s BROADCAST + PUBLISHED MEDIA COMPUTERS Telephone Telegraph Telex TV (colour) AM and FM transistor radio, LP records, transistor amplifiers Numerous mainframe computers Pocket calculators TELECOMMUNICATIONS Increasing role for electronic delivery, but little integration of media

43. Telephone Answering Machines, Mobile phones, Pagers, Business Fax Machines Videorecorders, audio CDs, cable and satellite TV, Teletext Numerous Personal Computers, Home Computers and videogames, Electronic wristwatches Electronic mail Bulletin boards Videotex Online databases for business & science Recorded information services BROADCAST + PUBLISHED MEDIA TELECOMMUNICATIONS COMPUTERS Some integration of media, emergence of optical media, increasing digitalisation The Mid/late-1980s

44. Turn of the Century Digital mobile phones, Widespread use of Fax, pagers Videorecorders, audio CDs, digital recording cable and satellite TV Numerous PCs, laptops. notebooks, pocket organisers, etc. Numerous home computers and videogames Electronic mail, SMS Mobile data comms CD-ROM publishing Cable telephony Audiotext Internet World Wide Web COMPUTERS TELECOMMUNICATIONS BROADCAST + PUBLISHED MEDIA Increasing integration of media, use of optical media, digitalisation

45. Digital mobile communications in wide use - pervasive communications MP3 and PVR, Digital Broadcast TV digital videorecording High definition TV Pervasive computers, in many types of device (e.g. Personal Digital Assistants, smartphones) Internet telephone VoI, Internet videotelephony Internet TV Video on Demand Interactive TV WiFi, Next generation of Internet & WWW, Web2.0, Video telephones and conferences DVD-R+, interactive video Now  2010? COMPUTERS BROADCAST + PUBLISHED MEDIA TELECOMMUNICATIONS

48. 1990 2003 spectrum Radiotelecommunications Agency Broadcasting Standards Commission But not print media – Press Complaints Commission etc. 1991 networks Oftel 1984 1996?

49. Jong-Seok Kim: mobile phone companies 2 nd generation, digital services – earlier 1990s generation was analogue 2.5 generation 3rd generation 128k – 2m /sec 64k /sec 14.4k/sec

56. End of Presentation