Investing in Creative Technology

Investing In Creative Technology

Matt McNeany, Code

• What is Creative Technology – and is it relevant to you?

• What are the financial cases?

• How do you decide what to invest in? And how to make that investment work

What I want to do today

What is Creative Technology?

And why do you need it?

The Debate

“You cannot now talk about Creativity without talking

about Technology”

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BusinessIntelligence

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Knowledge Management

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“App”

Cloud

Rich Internet

Applications

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Analytics

Machine Optimization

Distribution networksMedia

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Marketing Automation

Games

Augmented reality

Social

(Hyper-) Localization

NFC

Mapping

Digital @ Retail

Enterprise Social

Networking

Defining Creative Technology

Creative Technology

New Business Models

New ways of Engaging the ‘Audience’New ways of Working

Why this definition matters

“It’s like hundreds of baseballs are dropping all around me

and I don’t know which one to catch”

Hyper Island studentThe Future of Advertising, Fastcompany, Nov 2010

Why this definition matters

Different technologies = different business models

A (personal) Map of the Creative

Technology-osphere

Mapping Creative Technology

New ways of Working New ways of Engaging the ‘Audience’

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Digital @ Retail

API/open architecture

Web Digital Video



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Digital foundation technologies and emerging

media platforms



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Digital foundation technologies and emerging

media platforms

www.thewildernessdowntown.com



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Marketing Content Management & Distribution tools – release value of

content; deploy across multiple screens



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Digital Display


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Web Digital Video

Marketing Content Management & Distribution tools – release value of

content; deploy across multiple screens



Revenue

Cost

Mobile

Ad Builder

(e)CRM

Email

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html5

Data visualisation

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End-to-end, fully automated, constantly optimized

marketing implementation



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“The Future is here. It is just unevenly distributed.”

William Gibson

Fast-tracking evolution...

• WE NEED A WEBSITE

• WE NEED A WEB STRATEGY

• WE NEED TO MAKE MONEY FROM OUR WEBSITE

• WE NEED A FACEBOOK PAGE

• WE NEED A SOCIAL STRATEGY

• WE NEED TO MAKE MONEY FROM SOCIAL

• WE NEED BETTER TECHNOLOGY

• WE NEED A CREATIVE TECHNOLOGY STRATEGY

• WE NEED TO MAKE MONEY FROM CREATIVE TECHNOLOGY

The Business Case for Creative Technology

• There are as many business models as there are tech ideas

• 3 real world examples that have worked

Monetization strategies

Agency Operating System

Initial investment $ 250,000 Number of employees 450 Anticipated lifespan of product (years) 3 Minutes saved per employee per day 15

Amortized investment cost per year $ 83,333 Time saved per month in business (hours) 2475 Maintenance allowance 15% Hours saved per year 29700

Total cost per year $ 120,833 Equivalent FTEs 16.5

Average cost per FTE $ 75,000

Cost savings per year $ 1,237,500 Return on investment 1024%

Social Media App

Cost Option 1 - Time & materials Option 2 - Licensed product

Initial development cost $ 45,000 Bill 100 days @ $900/day $ 90,000 Client per site per market per year license $ 18,000

Productization cost $ 22,000 Number of sales until break even 3.72

Total Cost $ 67,000 Profit $ 45,000 Number of sales made to date 14

Revenue $ 252,000

Profit $ 185,000

Return on investment 100% Return on investment 276%

How do you embedCreative Technology within

your business?

• “We’re pitching for Acme and we’ve got to demonstrate that we’ve implemented a global workflow system.”

• “Our Amsterdam office has got a tool – can we use that?”

• “CompetitorCo have just bought BrainDogg! We need to do a deal with FlapBird.”

Good and Bad Ways to start

Building a Creative Technology Strategy

Vision

Business Model

Technical Architecture

ResourcePlan

ChangeManagement

Who are you in a technology world?

Who are you?

What you are passionate about?

What you can be best in the world

at?

What drives your economic engine?

• The advertising implementation marketplace will come to be dominated by automated solutions .

• Clients will implement their marketing campaigns across all media channels in seconds, whilst continually optimizing the effectiveness of their content

• It is our goal to be the leader of that movement

• We will develop a re-usable product and license it to our clients, saving them money and building our profit as our marginal cost of implementation will be very low.

Example – Creative Technology Strategy

• Every time a consumer encounters our clients’ brands, it must be a memorable event

• Digital media may be functional but it is ugly, cluttered and confused.

• We will beautify digital.

• We will be the aesthetic reference point for all digital brands

• We will understand - and lead - the art and science of digital communications

• We will charge a premium for this service

Example – Creative Technology Strategy

Example Technical Architecture

• Are we going to build it or buy it?

• Which individuals can do this work – internally and externally?

• How do we find them, train them, motivate them?

• How do we organize them?

Resourcing Strategies

“Agency teams should include data analysts and technologists that work in tandem with creative staff”

Forrester – The Future of Agency Relationships

Resourcing

• This will change your business – you want it to

• Not everyone will want that

• The tech will fail sometimes

• Be prepared to evangelize, incentivize and compel the change

Change Management

Talk less; do more

Vision

Business Model

Technical Architecture

ResourcePlan

ChangeManagement

ACTION!

“It is not the strongest of the species that survives, nor the

most intelligent that survives. It is the one that is the most

adaptable to change.”Charles Darwin

More...

JP Rangaswami – Chief Scientist, salesforce.com@jobsworthhttp://confusedofcalcutta.com/

Tim Sparke – Digital Coach, [email protected]

Mewww.codeworldwide.com@mmcneany

http://confusedofcalcutta.com/

http://www.codeworldwide.com/

get in touch

Matt McNeanyCEO

[email protected] +1 212 824 4036

mailto:[email protected]

mailto:[email protected]