Insight on digital media project management

1. SATAMA INSIGHT
What do digital media companies
expect from their project managers?
©2005 SATAMA INTERACTIVE
Tommi Pelkonen
Satama Interactive
Nov 10, 2005
Tommi Pelkonen, digital media professional
33 years, living in Amsterdam
M.Sc. (Econ.) 1999 at HSE
Doctorate student, HSE (2001->)
Researcher LTT-Research Ltd / Digital Media
(1996-1999)
Satama Interactive/Amsterdam
Senior consultant
Specialisation areas
Telecommunications
Digital media
Internationalisation
Business strategies
SME development
During 1996-2005 ~70 completed business, research
and analysis projects both in professional career and
academy
©2005 SATAMA INTERACTIVE
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2. Satama Interactive – Design and production of interactive
services
We help our clients make better business
online.
Satama employs ~320 professionals.
• Our experts are specialized in business Tampere
development, design, and technology.
Turku
• Our own operations are complemented by an
effective international partner network.
• Satama’s client-specific teams delivered over Stockholm
1.000 world-class projects in 23 countries last
year.
Helsinki
Satama is a financially solid, growth-seeking
company:
• Satama’s revenues in 2004 were EUR 23.6
million.
• Revenues increased by 10.5% compared with
2003. Amsterdam Düsseldorf /
• Net profit was EUR 1.5 million, which is 6.3% Stoneroos /
NeoMotion
of revenues. Hilversum
• At year-end, Satama’s equity-to-assets-ratio
was 76.3% and liquid funds were EUR 8.4
million.
©2005 SATAMA INTERACTIVE
Satama Interactive – Design and production of interactive
services
FINNAIR
CATERING Tampere
Turku
Stockholm
Helsinki
Amsterdam Düsseldorf /
NeoMotion
Stoneroos /
Hilversum
©2005 SATAMA INTERACTIVE
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3. Satama’s clients demand global delivery capability
Satama delivers projects in 20+ countries annually. During the last 12
months Satama has delivered projects for example in:
Brazil Poland Singapore China
Germany Italy Spain
USA Malesia Thailand France
©2005 SATAMA INTERACTIVE
Satama’s mission and core messages
Understanding
the customer
Satama means better business online
Concrete results quickly
Understanding by applying appropriate
the users skills and tools
©2005 SATAMA INTERACTIVE
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4. SATAMA INSIGHT:
What digital media companies expect from project
managers?
Definitions
Professional production process
What do digital media companies expect from PM’s?
Conclusions and recommendations
©2005 SATAMA INTERACTIVE
DEFINITON 1/2:
DIGITAL MEDIA: Three key business areas and underlying
business models
Key business area and analysis subject
Key focus of this presentation
Business area 1: Business area 3:
Digital media Business area 2: Software
content creation Digital media business
service creation
Digital media
Software
Content creation professional
companies
companies business
service companies
Dominant
Dominant business model
Dominant business model:
Professional services
business model: Software procuction,
(often project-based
Content IPRs sales and distribution
EUR/hour or day)
EUR/production (EUR/licence + service fee)
Regardless of the domain, a project manager/ producer is required to deliver the requested outputs
Source: Pelkonen & al., 2003
©2005 SATAMA INTERACTIVE
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5. Digital media industry activities
Digital media Digital channel
solutions
Ente rtainme nt
(WWW, e-mail, banner advertising)
(digital television, streaming media)
(e.g. CD-ROM, DVD, installations)
M arke ting communications
Digital broadcasting
Digital storage media
(e.g.. SMS, WAP, MMS)
Solution area
Online media
A dvisory a nd cons ulting se rvice s
Mobile media
Exte rnal
Corporate communications
Inte rnal
Le arning
Loyalty and community
Se lf-se rv ice
Comme rce
Te rminal-re late d syste ms and software de v e lopme nt
T echnology
solutions Conte nt and acce ss manage me nt syste ms
Te chnical inte gration to othe r syste ms
Copyright Pelkonen, LTT-Research Ltd, 2003
Each solution area requires different substance understanding
Source: Pelkonen & al., 2003
©2005 SATAMA INTERACTIVE
Digital media productions are created in a value-adding
process: 1) content products and 2) service creation
1) CONTENT Content Content Content
Content Consumption/
CREATION creation marketing distribution
aggregation Usage
VALUE CHAIN
2) DIGITAL Strategic Creative Implemen- Distri-
SERVICE planning planning tation bution
CREATION
VALUE CHAIN
Program management
subcontracting and client responsibility
subcontracting
Specialist
Efficient small
production house
For larger productions, multi-vendor management capabilities are called for
©2005 SATAMA INTERACTIVE
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6. Communications solution value-web
Selected role/objective
Actors throughout the value/service creation process
for action
Objective Strategic Creative Implemen- Distri- Consumption/
setting planning planning tation bution Usage
Marketing Print
Print house
communications Comm-
muni- Outdoor
Comm- Media Reproduction
Digital media role: cation
muni- agency house
Communications cation
agengy one
Radio
channel agengy -way
AV-producer Media
quot;Messagequot; Design agency Telev ision
Consuting Adv ertising
company agency house
Direct
marketing
Key question: PR-agency
What kind of message Ev ent
inter
reaches consumer the marketing
Digital media serv ice companies -action
best in the selected media-mix
and w ithin the media budget Digital
marketing
Copyright Pelkonen, LTT-Research Ltd, 2003
In marcom: Digital media company needs to master its relationships with esp. ad agencies
Source: Pelkonen & al., 2003
©2005 SATAMA INTERACTIVE
Digital solution creation value-web
Selected role/objective
Actors throughout the value/service creation process
for action
Objective Strategic Creative Implemen- Distri- Consumption/
setting planning planning tation bution Usage
Role 2:
Service
channel Service
Serv ice
provision Serv ice creation and implementation
location
consultants
quot;Dialogue Ad agency
Consulting
quot; Technology
company Contact
prov ider
(Serv ice Design Center
strategy) house
Key question:
Digital
Where and how to
Digital media serv ice company serv ice
serv e the consumer/
end-user the best?
Copyright Pelkonen, LTT-Research Ltd, 2003
In IT: Digital media company needs to master its relationships with esp. technology vendors
Source: Pelkonen & al., 2003
©2005 SATAMA INTERACTIVE
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7. What are the outcomes of digital media companies?
Internet pages, Digital marketing E-Commerce and e-learning
extra- and intranets Services supporting
client loyalty
Custom mobile Mobile applications Multimedia Digital TV
services for events
©2005 SATAMA INTERACTIVE
We as consumers decide where, when, and with what
device we use these services
Mobile
Digital TV Mobile
Software
Internet
On the
At home
go
Internet
In social At work
Mobile Mobile
situations
Internet Software
©2005 SATAMA INTERACTIVE
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8. DEFINITON 2/2:
Project management
• Project management is the discipline of defining and achieving targets
while optimizing the use of resources (time, money, people, space, etc).
Thus, it could be classified into several models: time, cost, scope, and
intangibles
• In contrast to on-going, functional work, a project is quot;a temporary endeavor
undertaken to create a unique product, service, or result“.
• Projects are temporary because they have a definite beginning and a definite
end.
• They are unique because the product or service they create is different in some
distinguishing way from similar products or services.
Project has clear start and an ending.
It needs to managed by professional leader.
Sources: Wikipedia, 2005 & A Guide to the Project Management Body of Knowledge PMBOK® Guide,
Third Edition, Project Management Institute, 2004, p. 5
©2005 SATAMA INTERACTIVE
Project management is an very well established field of
discpiline with strong professional guidelines
Project management literature
is versatile and offers
massive amount applicable
models to manage production
variables
©2005 SATAMA INTERACTIVE
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9. Project phases
1. project initiation (Kickoff)
2. project planning
3. project production or execution
4. project monitoring or controlling
5. project completion
Project management tries to gain control
over five key project variables:
• time
• cost
• quality
• scope
• risk
©2005 SATAMA INTERACTIVE
Putting a digital media project into scale:
mega-projects vs. digital media production...
©2005 SATAMA INTERACTIVE
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10. SATAMA INSIGHT:
What digital media companies expect from project
managers?
Definitions
Professional production process
What do digital media companies expect from PM’s?
Conclusions and recommendations
©2005 SATAMA INTERACTIVE
Activities are based on five types of resources
Personnel Hardware Software Organisational Financial
• Business • Office • Licences • Strategies • Finance for
• Technical premises • Intellectual • Goals operations
• Design • Production property rights • Organisational (e.g. R&D,
machinery • Proprietary con- commerciali-
• Managerial culture
sation, inter-
• Other tents • Organisational
nationalisa-
• Production structures
tion)
process knowl-
edge
• Knowledge
about technol-
ogy
• Knowledge
about custom-
ers
• Production soft-
ware
The key resource is the personnel!
Source: Pelkonen, 1999
©2005 SATAMA INTERACTIVE
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11. Combination of technology, business, management,
communication, design creates digital media understanding
Competence management
Entrepreneurship Project management
Accounting and finance Communication skills
Marketing Group work skills
Internationalisation
Business expertise Managerial expertise
Technical
Communications expertise
expertise
Digital media understanding Digital graphics creation
Multimedia
manuscripting
Database design Communications
Programming process understanding
Cognitive psychology
IT system design
Pedagogy
IT system integration
Ability to combine media elements
Interactivity understanding
Ability to create new business models
Ability to measure new media impacts
Key to success: to orchestrate different competencies
Source: adapted from Helomaa & Väänänen, 1999 pp. 40-54
©2005 SATAMA INTERACTIVE
E.G. Satama Interactive:
Competencies working in harmony
Account
Management
Project
Consulting Management
Creative
Technology
Design
Working is a production team is constant interaction
= meetings, knowledge sharing and co-ordination
©2005 SATAMA INTERACTIVE
22
11

12. People are the key resource in digital media production
Succesful companies can make different competencies
to appreciate each other and work seamlessly together
©2005 SATAMA INTERACTIVE
Development of our clients’ services requires expertise in
business, design and technology
Nature of employment 2004 At the end of 2004, Satama
employed 292 persons
Permanent, full time 89%
(316, Q3/06) in Finland and
Permanent, part time 5% the Netherlands. Approx.
Temporary, full time 4% 50% of employees have
Temporary, part time 2% worked for Satama for over
4 years.
Job description
Invoicing 92%
Business development 37%
Creative design 31%
Technology 32%
Administration 8%
Gender distribution
Female 29%
Male 71%
©2005 SATAMA INTERACTIVE
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13. Digital media production process in professional firms
Digital solution development work-flow
Strategic planning Creative planning Implementation Delivery
Sales negotiations Account management Further sales
Testing
Conceptual planning
Installation
Graphical Training Full deployment/
Graphical implementation roll-out
Strategic planning planning
Piloting
Technical
planning Technical implementation Maintenance
Project planning
Project management
time
Digital solution development in releases
Release 1.0 scoping Release 1.0 deployment Adjustments Release 1.1
Release 2.0 Release 2.0
scoping deployment
time
Larger development programs consist of multiple project i.e.
may demand a team of project managers to work together and deliver each their project
©2005 SATAMA INTERACTIVE
PROCESS IN PRACTISE:
Production process is the digital media company backbone
Agreement on workflow, method and deliverables is propably the only way to
standardise quality of production within people-based business
©2005 SATAMA INTERACTIVE
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14. SATAMA INSIGHT:
What digital media companies expect from project
managers?
Definitions
Professional production process
What do digital media companies expect from PM’s?
Conclusions and recommendations
©2005 SATAMA INTERACTIVE
PM: the master of planning and control
PM needs to able to be the ultimate co-ordinator and planner for activites
and identify key dependencies of an activity to another
©2005 SATAMA INTERACTIVE
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15. Project managers in multiple roles
Hey boys, let’s do this first
and those things later.
Please let me know if
SHALL WE MAKE something are not clear!
THE DEADLINE I will ensure the
OR NOT? profitability of this
project
PM needs to be a true multi-tasker.
©2005 SATAMA INTERACTIVE
What do digital media companies expect their PM’s to do
Strategy & Project Management manage client
relationships and get projects done on-time and in-
budget. They help the client define business and
communication goals. The people in this group are
client managers, management consultants, and
technical & commercial project managers. (Framfab,
2003)
Project managers are responsible for project
management at Satama, which involves client project
design, resourcing and follow-through. Their job is to
keep projects moving according to schedule, while
attending to budget and planning issues in cooperation
with our client, other vendors and the project team.
(Satama, 2005)
©2005 SATAMA INTERACTIVE
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16. What is requested from PM applicants? 1/2
Project Manager (position filled March, 2005)
Satama Interactive is looking for experienced, active Project Managers to work with
either technology or marketing communication oriented projects.
The essential role of project manager is to take ownership of a client project and
ensure that it is delivered according to requirements. You are responsible of planning
and managing projects: project schedule, budget, quality, profitability and the end
result are your driving forces. You work closely together with Satama’s client manager
and with the clients and other vendors. At the same time, you have the opportunity to
lead a team of skilled and motivated people with very different backgrounds.
To be a successful project manager you need to understand the whole project with its
functions and techniques, and be capable of managing change and risks. That is why
we are expecting previous work experience of either application development client
projects OR marketing communications client projects from the vendor point of view.
As a person you should be able to motivate project teams, delegate work, solve
problems and give feedback. The work requires good presentation, communications
and negotiation skills both in Finnish and in English.
©2005 SATAMA INTERACTIVE
What is requested from PM applicants? 2/2
Project Manager (position filled May, 2005)
Satama Interactive is looking for a MarCom Project Manager for challenging www and
mobile projects.
The essential role of project manager is to take ownership of a client project and
ensure that it is delivered according to requirements. You are responsible of planning
and managing projects: project schedule, budget, quality, profitability and the end
result are your driving forces. You work closely together with Satama’s client manager
and with the clients and other vendors. At the same time, you have the opportunity to
lead a team of skilled and motivated people with very different backgrounds.
To be a successful project manager you need to understand the whole project with its
functions and techniques, and be capable of managing change and risks. That is why
we are expecting previous work experience of international B to C marketing
communication projects and experience of leading comprehensive service
development projects.
As a person you should be able to motivate project teams, delegate work, solve
problems and give feedback. The work requires good presentation, communications
and negotiation skills both in Finnish and in English. Knowledge in Swedish would be a
big plus!
©2005 SATAMA INTERACTIVE
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17. Professional organisation’s managerial challenges
Extreme situation: anarchy
High Professionals Leaders
co
nti
no
us
Professional co
PROJECT
Administrative nfl
expertise ic t
Extreme situation: bureaucracy
personnel
MANAGERS
Low
Supportative Managers
personnel
Organisatory expertise
Low High
Winning professional companies make management of
Source: Kuokkanen, 2000
the continous conflict their asset!
©2005 SATAMA INTERACTIVE
Management as key challenge for digital media companies
STATEMENT: The key challenges in the digital media business relate to
managerial models of the companies
1.3% 1/75 Totally agree
40.0% 30/75 Agree to some extent
25.3% 19/75 Do not agree or disagree
17.3% 13/75 Disagree to some extent
12.0% 9/75 Totally disagree
4.0% 3/75 Cannot say
Project managers are the critical power to make the difference between
one company to another
Source: Pelkonen & al., 2003, sample 75 Finnish digital media companies
©2005 SATAMA INTERACTIVE
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18. Key challenge areas digital media productions
• Planning and follow-up • Keeping up with deadlines and
budgets
• Resource acquisition and allocation
• Managing client expectations • Legal and contractual issues
• Internal conflicts within teams • Change management
• Communication challenges inside • Claim management
and outside
• Closing of projects – approvals and
• Quality ensurement milestones
• Competence development
• Working with multiple partners and
sub-contractors
Digital project management is no different from
any other people-based project management. HOW WILL I SURVIVE?
Only the substance differs.
•
©2005 SATAMA INTERACTIVE
What role should the PM play in the production team?
GO PM GO!
©2005 SATAMA INTERACTIVE
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19. SATAMA INSIGHT:
What digital media companies expect from project
managers?
Definitions
Professional production process
What do digital media companies expect from PM’s?
Conclusions and recommendations
©2005 SATAMA INTERACTIVE
SUMMARY: How projects function in reality...
©2005 SATAMA INTERACTIVE
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20. Conclusions
Managing digital media productions do
not differ radically from any other project
management tasks
The better the project manager knows
the substance, the easier it can be to
manage professionals and the production
process. Yet, PM should NOT be the
substance problem solver, but rather the
facilitator and co-ordinator for solving
Digital media PM should constantly focus
on ensuring that the different experts in
production teams are working: Key focus area for PMs: Making team
1) on right tasks; members to trust each others, play
2) on time together and knowing how to get the
best out of them in different
3) with best possible harmony and
situations!
4) towards common goals.
©2005 SATAMA INTERACTIVE
For more information
Project management is one the most established
disciplines within busines literature
©2005 SATAMA INTERACTIVE
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21. Satama -
Better Business Online
Tommi Pelkonen
tommi.pelkonen@satama.com
©2005 SATAMA INTERACTIVE
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