EDM and The Digital Domain

EDM AND THE DIGITAL DOMAIN
WHY DJS AND FESTIVALS SHOULD CHANGE
DENIS DOELAND
PRE-READ VERSION
0.9995 | NOT FOR PUBLICATION
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AuthorsNote
Preface:EDMandthedigitaldomain
Introduction:EDManditsrevolutionarycharacter
TheroleoftheinternetecosysteminEDM
Thebusinessmodelexamined
Howtoorganizeyourorganization?
Settingupadigitalstrategy
Fanbaseinformationisthekey
Companyvalueinthedigitaldomain
Transformingintoadigitalmaturecompany
Epilogue:DontbeHansjeBrinker
Extra:HavesomeDJshittheirceiling?
Appendices
Sources
Abouttheauthor
Colophon
1.Authorsnote
Thisdigitalpublicationismycontributiontotheentertainmentindustry,andthe
danceindustryinparticular.Ihavebeenactivelyinvolvedintheworldofdance
musicforsometwentyyearsandthisismywayofsharinginsightsandexperiences
regardingdigitization.
Istartedoutintheentertainmentindustryintheearly1990sandhaveseenhowthe
riseofthedigitaldomainchangedtheeld.Becauseofmypassionforcomputers
whenIwasyoungandinspiredbyBertholdGunstersbook,Ja,maarHuh?!:de
1
techniekvanhetomdenken ,andhisip-thinktechnique,Ireectedonthecoming
digitaltransformationandchangedmymindabouttheacceptedbusinessmodel
andearningmodelsoftheindustry.
2
Irealizedthatanentertainmentcompanysreasonforexistence isthecontentit
producesandthefanbaseitbuilds.Atthetime,Ihavespreadandarticulatedmy
thoughtsregardingtheriseofthedigitaldomainintherstdigitalvisionforID&T:
TheDJ,eventorfestivalisanetwork.Contentisthedrivingforcethatconnectsthe
DJ,eventorfestivaltofansandclients.Dataaretheadditionaleconomicvalue.
Inthedigitaldomain,theattentionforandtherelationshipwiththe(future)fanor
clienthasbecomethemostimportant(economic)value.Themostsuccessful
entertainmentcompanyistheonethatsucceedsinattainingthebestpositionand
thestrongestrelationshipsintheinternetecosystem.TheHolyGrailisthe
personalizationoftherelationshipwiththefan.Fanswantadirectandpersonal
relationshipwiththeirfavoriteDJs,eventsorfestivals.Entertainmentcompaniesin
denialofthisnewrealitywillmissopportunitiesandeventuallyturnover,andsee
theirvaluedecrease.Organizationsandartiststhatdopayattentionwillnally
overtakethem.
Dataprimarilyprovidedirectionandhavegainedineconomicvalue.Yousolidify
yourreasonforexistencebyinvestinginadigitalstrategy.Bydenition,acompany
increasesitsvaluebyharvestinginformationandcontextualization.Thatbecame
3
apparentwhenSFXpurchased ID&T.
Gunster,B.(2008).Ja-maarhuh?Detechniekvanhetomdenken.Amsterdam,TheNetherlands:A.W.BrunaUitgeverij.
ed.chapter12Extra:HavesomeDJshittheirceiling?(HavesomeDJsreachedtheirlimit?)
3
Doeland,D.(2013)OvernameID&T:heeftdataeenprijsgekregen?(Doesdatahaveaprice?)Informationsourcedon2July
2013:http://www.emerce.nl/cases/heeft-data-een-prijs-gekregen
2
Itismyhopethatyou,thedanceentrepreneur,feellikemakingthenextstepwith
yourcompanyandwillintegratethedigitaldomainintoyourbusinessmanagement.
Onethingiscrystalclear:theentertainmentindustryisdoingbetterthanever
before,duetothedigitaldomain.Nowthattheairisclear,itistimetotransform
fromanaloguetodigitalandtostepitup.
2.Preface:EDMandthedigitaldomain
Inthemid-1990s,theinternetsurfacesinmainstreamculture.Itisthestartofthe
digitalrevolution.Orrather,itisthebeginningofachainreactionthatseemstobe
unstoppable.Ithasfundamentallychangedthewaywespendmoneyandsave
money,relax,work,startandconserverelationships,shop,study,evenhowwe
date.
Oldergenerationsstubbornlytrytoadapttothisnewreality.Intheirbook,Generatie
4
Z (GenerationZ),RenBoenderandJosAhlersmaintainthatyoungsterswhoare
growingupinthisnewrealitydonotknowaworldwithouttheworldwideweband
itsprominentpresenceindailylife,aworldthatisshapedbyswiftlydeveloping
technology.Theybelongtoagenerationthatcannotremembernorimaginea
worldwithoutonlinecommunication,accordingtoBoenderandAhlers.Inthat
respect,theyaretherstgenerationinthehistoryofmankind:theyaredigital
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natives .BoendersandAhlersusethetermGenerationZforthisgenerationofdigital
natives,bornfrom1992onward.InAmericanprofessionalliterature,older
generations,bornbefore1992,areoftenreferredtoasdigitalimmigrants.These
generationshaveoftenagainsttheirwillmigratedtothedigitizedworld,yet
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sometimesndithardtoacclimatize.OntheblogOmni ,Ahlerswrites:Digital
immigrantsfeeltheneedforauserguide,digitalnativesdont.
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Nottoolongagoitbecameapparent thattheinternethasbecomepartoflifes
basicnecessities.Meanwhile,inmostpartsoftheworldtheinternethasbecomea
commodity,fordigitalnativesinparticular.Thelargestpopulationthathasgrownup
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withEDM aredigitalnatives.Itisexactlythisgroupthatnaturallydependsonthe
internetecosystem,thedigitaldomain.Thesedays,EDMisanintegralpartofa
digitaldomainthatbecameavailabletothemainstreamaudiencesometwentyyears
ago.ItisthereforeobvioustostatethatEDMandthedigitaldomaingohandin
hand.
Boenders,R.,Ahlers,J.(2011)GeneratieZ.(GenerationZ)Amsterdam,TheNetherlands:Bertram+DeLeeuwUitgeversB.V.
Borninthedigitaleraofcomputers,videogamesandtheinternet,theyarethenativespeakersofthedigitallanguage.The
agebracketofthisgenerationis15-25years(bornafter1992).Theyareheavyandexperiencedusersofinternet-connected
devises.Technologyisimportanttodigitalnativesandtheirlifestyle.24/7internetaccessistherule,whichmakesthem
distinctlydependentontheirsmartphone.Theyvaluetheirsmartphonesmulti-functionalityinparticularandregardthedevice
astheirpersonalassistant.
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Ahlers,J.(2013)DeWensenvangeneratieZ:zwemmenofverzuipen?(DesiresofgenerationZ:swimordrown?)
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ed,inpublication:Hofstee,G.,Doeland,D.(2013).vanAnaloognaarDigitaal.nudedigitaleverandering(ondigital
transformation).Amsterdam,TheNetherlands:DDMCA
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EDMisnowadaysinterpretedasasub-genrewithinthegenreofdance(electronicclub)music.However,EDMstandsfor
ElectronicDanceMusicandthetermrefersinthispublicationtoalltypesofdancemusic.
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Ecosystem
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Thedigitaldomainisanecosystem ofthousandsandthousandssub-ecosystems:
onlinecommunitiesofend-users(fansandclients),developers,suppliersand
distributors.Theyuseeachanothersstrongpoints,complementandstrengthen
oneanotherinordertojointlycreatevalueforotherend-users.Thisisthebasisof
thedigitaleconomy,ofwhichthecontemporarycreativeindustryandthereforethe
entertainmentindustryisanintegralpart.
Initsbroadestsense,theinternetisoftendenedasthetotalsystemofinteraction
betweenindustry,brand,product,dataandpeople.Itincludesallstakeholders:
partners,suppliers,competitors,clients,analysts,commentators,journalists,
bloggers,prospects,andindividualfansandclients.Thetechnicalinfrastructureand
thenetworksfunctionsarepartoftheinternetecosystem.Byviewingtheinternet
ecosystemasabusinessecosystem,oneactuallyseestheemergenceofnewvalue
modelsintherelationshipsofalltheinternetecosystemsstakeholders.
Asystemthatisorganizedaroundtheinteractionbetweenlivingandnon-livingentities.
Theinternetisanecosystem;itcomprisesamicro-ecosystem,whichisyourbit,and
themacro-ecosystemdirectedbyoperatingsystemsandsearchengines,ofwhich
yourbitisapart.Theinternetinltratesthroughalllayersofcompanies,
organizationsandbrands.Itfunctionsasauidentitythatenvelopscompanies,
organizationsandbrands,andtouchesuponalmostanydisciplineofacompany,
organizationorbrand.You,asaDJorevent/festivalproducer,needtoadapttoit.
Context
Itisallaboutthevariousdevicesandplatformsweconnectto,thedigital
landscapeswegotoandthemutualrelationshipsbetweenindividuals,companies,
organizationsandbrands.Meanwhile,theinternetandits(social)ecosystemis
everyones24/7/365concern.TheDJandeventproducerhavetomeetthisnew
reality.Youshouldmakeavailabletime,peopleandresources(know-how,money
andtools);developanadequatepolicy;andcreateasolidactionplanthatclaries
yourambitionandobjectives,basedonproperinsight,relevantcontent,andthe
realizationandmaintenanceofconnections.Theecosystemsuser,i.e.fanorclient
ofaDJoreventproducer,isthefocusofthispolicy.
Thedigitaltransformationisprimarilyaboutrapidlyembracingthetechnologythat
willprofoundlychangeprocessesandperformanceofcompaniesandorganizations.
Itprofoundlychangesthebusinessmodelaswell.Theinternetecosystem,the
businessmodel,theorganization,thedata,theDJ,theevent,thefestival,thefan
andthecontentareallpartofthedigitaldomainofwhichEDMhasbecomean
element.
DJsandeventproducerscurrentlybuildanenormousfan-baseviasocialplatforms.
Theemergenceofadvancedtoolsforthemanagementoffansandclientsopensup
theopportunitytobuildrelationshipsthatleadtotransactions.Thispublication
describesthecontextthewiderframeworkthatattachessignicanceandmeaning
ofEDMandthedigitaldomain.You,theDJ,themanagerandtheeventorfestival
producer,mustaddressthecontextofthedigitaldomain.Youhavetotransform,
investintransformation,andformulateadigitalstrategy,asthedigitaltrainwillnot
waitforlaggards.Thispublicationwillinformyouofhowthecoherenceofcontent,
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connectionandcurrency functions,andhow(potential)fansandclientstinit.
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ed.economicvalue
3.Introduction:EDManditsrevolutionarycharacter
Danceisthecatch-alltermforalltypesofelectronicdancemusic.Currently,the
termsEDM(ElectronicDanceMusic)andEMC(ElectronicMusicCulture)arein
use.Themostoutstandingattributeofthistypeofmusicisitsdigitalorigin,using
computersandsamples.Mostdancestylesusefour-to-the-oorbeatsthatcarrya
plainmelody.Themusicisarrangedinrepetitivepatternsandmostrecordsare
drivenbyaprominentbassline.Occasionally,popsongsarerecreatedindance
style,oracousticinstrumentsenhancethedigitalproduction.
Initsearlystages,dancewastheexclusivestyleofmusicplayedatmanyclubsor
events,initiallycalledhouseparties.Mediacoverageofdanceeventsoften
focused(andfocuses)ontheallegeduseofdrugsandoutbreaksofviolence,
althoughithasneverbeenestablishedthatdruguseandviolenceoccurmore
frequentlyatdanceeventsincomparisontonon-danceevents.
Therst,embryonicdancestylesevolvedintheUnitedStatesintheearly1980s,an
outgrowthofItalodisco,newageandsynthpop/newwave,thepopularsoundsat
thattime.Inthemidtolate1980s,houseandtechnowereestablishedastherst
stand-alonedancestyles,spinningointoaclutchofsubgenres.TheWarehouse
clubinChicago,oneofdancesbreedinggrounds,gaveitsnametohouse,while
technooriginatedinDetroitparalleltotheproceedingsinChicago.Inthelate1980s,
bothstylesventuredintotheEuropeanclubscene;theUnitedKingdom,Germany,
TheNetherlands,BelgiumandtheMediterraneanholidayislandofIbizainparticular.
Itwasjustamatteroftimebeforetherstdancerecordsenteredthecharts.
Until1992,alldancestyleswerecalledhouseinTheNetherlands.Whiledance
rosetoprominence,moreandmoreclubsstartedtofocusexclusivelyonthenew
thing;AmsterdamsRoXYclubbeingoneinastringofmany.Outdooreventsand
festivalsattractedvisitorsintheirthousands:Mysteryland(since1993)andDance
Vally(since1995).Thesuccessofdanceestablishedaneconomicfootholdandled
tothefurtherbranchingoutofthemusicintonewstyles:trance,gabber,hardstyle,
drumnbass.
Disruptionmeansabreakdownoftheestablishedorder.Oldcompaniesand
businessmodelsmakewayforanewlyorganizedmarketthatcaterstonewplayers
anddevelopsanewdynamic.Ifeveramusicstylecouldbeattributedofa
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disruptive i.e.revolutionarynature,itisdance.Bythemid-1990s,therstcracksin
thebusinessmodeloftheestablishedmusicindustrystartedtoshow.DJswereable
tomixrecordsintheirboysroomintheatticandplaythetracksatpartiesand
events.Assimpleasthat.Thetechnologicalevolutionofthemeansofproduction
meantthatmakingrecordswasbecomingprogressivelycheaper.
Aboutthesametime,thedistributionofmusicwasgoingthroughrapidand
revolutionarychanges.Thousandsofradiostationsengagedtheinternetastheir
broadcastingsystem,by-passingtheairwavesaltogether.Someyearslater,internet
wasthelocusofonlineservicesoeringfreeandinsomeoccasions,selling
musictoaworldwideaudience.ServiceslikeNapsterandPirateBayhostedbanks
ofmusicandmoviesavailableforfreeandillegalstreamingordownloading.The
newdigitalrealitymadethemusicindustrysbusinessmodelnexttoredundant.
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Millennials ,thepeoplebornbetween1982and2001a.k.a.generationY,arethe
biggestconsumersofmusicandthemostvocalabouttheirmusicofchoice.Whyis
itimportanttosharewhatwelike?Themusicindustryofoldhaditsunique,eective
waytomeasuresuccess:chartaction,thesalesofsingleandalbumreleases.
However,recordsalesstartedtodeclinebytheendofthemillenniumwhileonline
musicserviceshavebecomemoreandmoreaccepted.Themusicindustryhas
learnedthehardwaytofaceuptothenewreality:theirbusinessisadigital
economy.Successisnolongerexclusivelymeasuredintermsofrecordsales.
Attentionisthenewcurrency.Anewgenerationofartistsunderstandsthatattention
isjustasvaluableasrecordssales,sinceitcanleadto(paid)performancesat
festivalsandevents,merchandiseandothersourcesofincome.
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Deranging,destructive.
ed.Generationbornbetween1982-2001,publication:Howe,N.Strauss,B.(2000)MillennialsRising:TheNextGreat
Generation.RandomHouseUSAInc.
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Limitedrequiredinvestment
Thedigitaltechnologyischeapandhigh-qualityeducationaltoolscostnextto
nothing.Theresultisartistshaveacquiredamassaudiencewithhavingtoinvestin
atraditionallyexpensiverecordingfacility.Allthatisneeded,intermsof
production,tomakeamoderndayrecordisacomputerandaordableproduction
software.GotyeproducedthehitSomebodyThatIUsedToKnowathisparental
homenearMelbourne,Australia.Theself-producedtrackwasa#1hitsinglein23
nationalchartsandaTop10hitin30+countriesworldwide.Inlate2012,the
best-sellingsinglethatyearbecamethebest-sellingdigitalsingleever.Itsolda
mere11.8millioncopies.
Afewmonthslater,ayoungDutchdanceproducerwhogoesbythenameofMartin
GarrixhitthetopofthechartsinovertencountrieswithhistrackAnimals.Hewas
17yearsofagewhenherecordedandreleasedthetrack.Animalshitthe#1spot
oftheBeatportchartsandGarrixbecametheyoungestartistevertoclaimthatfeat.
Danceturnoverontheincrease
Overthelasttenyears,theturnoveroftheDutchdanceindustryhasincreasedbyat
least20percent.In2012,Dutchdancedidbusinesstothetuneofover586million
Euros,accordingtoconsultancyEVARandBuma/Stemra,theDutchorganizationfor
collectingmusiccopyrights-relatedfees.Thenumberofmasseventsisrisingfast.
Theturnoverof3000+visitor-eventshasincreasedby70percentoverthelastten
years.StrategistKevinWatsonestimatesa6.2billionEuroturnoverin2014forthe
danceindustryworldwide.For2013thatgureis4.5billionEuro.Others,suchas
JohnD.LandonofMassiveAdvisors,estimatetheturnoveroftheglobalEDM
industryat15to20billionEuro.EVAR-consultantApReindersexpectstheindustry
tohitthe7billionEuromarkin2017atthelatest.
GoldRush
Overthelastveyearsaveritableracehasemerged,withmanyanAmerican
companyjoiningtheplayingeldoftheever-increasingEDMmarket.Thisgold
rushscalednewheightsin2013.SFXEntertainmentbidsuccessfullyforcontrolling
sharesinID&TandBeatport,atthattimethebiggestonlinerecordstoreandDJ
community.Moreover,20thCenturyFoxandEDMproducerDiploannouncedthe
rstEDM-relatedmoviethatyear.
SFX,thattradesitssharesatthe(American)NasdaqstockmarketquotedasSFXE,
wasestablishedin2011bymediaentrepreneurRobertF.X.Sillerman.Thecompany
producesfestivalssuchasElectricZooinNewYorkandTomorrowWorld,which
attracted140,000USfansin2013.TheAmericanentertainmentcompanyfetched
260milliondollarswhenitwentpublicinOctober2013.Incidentally,itsshareprice
nosedivedafterwards.AtthattimeSFXisoftremendousimportancetotheUS
marketandtheforemostcompetitorofLiveNation.Bothcompanies,bytheway,
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werefoundedbySillerman .
Since2012,SFXproducesover1,400eventsviaitssubsidiariesDiscoDonnie
Presents,ID&T(Sensation,Tomorrowland,Q-Dance,Defqon1),I-Motion,Miami
MusicGroup(LIV&Story)andLifeInColor,claimingtheleadforthedanceevent
market.Currently,LiveNationcontrolsHARDandInsomniac,andincludesvarious
promotersinrockandothermusicandentertainmentsectors.
GoingpublicispartofSillermansgoaltoestablishanEDMcompanywitha
multi-billiondollarturnoverfromticketsalesandradioairplay.SFXsstrategyis
focusedonacquiringqualitycompaniesandcreatingamulti-faceted,all-round
dancecompany.ItprocuredtheNetherlands-basedID&Tandhasstrengthenedits
positionwiththeacquisitionofAwakenings(technoeventsandfestival)andALDA
Events.
InFebruary2016,SFXsmarketvaluehitanall-timelowduetoachapter11
bankruptcythecompanyssharesarewithdrawnfromthestockexchange.SFXis
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expectedtobecomeprivate againsometimein2015.
Themusicindustrysshifttowardsliveeventsandfestivalshaswhettedtheappetite
ofitsmajorplayersforapieceofthefreshandtastyEDMpie.Arecentlistingofthe
mostpowerfulpersonsintheEDMindustryincludesJoelZimmerman(ofthenew
electronicdivisionofWilliamMorrisEndeavor),JamesBarton(LiveNation),Robert
Sillerman(SFXEntertainment)andPeteTong(BBC1Radio).Leadingthelistis
PasqualeRotellaofInsomniac,theproductioncompanyoftheElectricDaisy
CarnivalandtheEDMbizconferenceinLasVegas.DuncanStutterheim,oneof
Hollandsbest-knowndanceentrepreneurs,announcedhisdeparturefrombothSFX
andtheEDMindustryinFebruary2015.
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TheformerSFXsolditsnetworktoClearChannelsometenyearsago.ItbecamethefoundationofwhattodayisLive
Nation.
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NRC(2015)AmericanfestivalgiantSFXostockmarket.Informationsourcedon27May2015:
http://www.nrc.nl/handelsblad/van/2015/mei/27/dance-amerikaanse-festivalreus-sfx-vande-beurs-1501635
Festivalsandevents
Since2007,theattendanceofEDMeventsintheUnitedStateshasincreasedover
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46% .InEurope,eventslikeTomorrowlandandTimeWarpattractmorevisitorsas
well.Emergingevents,suchasSerbiasExitfestivalandBPMinMexico,appealtoa
growingnumberofvisitors,whileestablisheddancefestivals,likeUltraandSonar,
currentlyrollouttheirbrandsontotheglobalplayingeld,cateringtothemarketsin
NorthernAmerica,Europe,LatinAmericaandAsia.SFXisprimarilyfocusedon
large-scaledanceeventsthatattractfansintheirtensofthousands.
SinceitwentpublicinOctober2013,SFXisfacingthefreshchallengetoprotits
shareholders.Consolidationofitspositionhasyettoresultinprotability.InSFXs
rstquarterof2014report,Sillermanstatedthatgreatstrideshavebeenmadein
realizingtheworldsbiggestproductioncompanyofEDMliveeventsandleading
digitalentertainmentcontent.For2014,hepredicteda30%increaseof
SFX-producedfestivals,totalingsome70events(in2013,SFXproduced54events).
ThemajorityofthisgrowthwillberealizedinNorthAmerica,wherethecompanyhas
introducedpopularfestivalstonewterritories:Mysteryland(originallyfromthe
Netherlands)intheStatesandElectricZoo(NewYork)inMexico.Moreover,SFX
initiatednewfestivals,suchasDontLetDaddyKnowinTheNetherlandsandThe
HudsonProjectinSaugerties,NewYork.In2015,furtherexpansionwasexpected
forNorthAmerica,LatinAmericaandAsia.
Althoughnolongerapubliccompany,SFXwasworkinghardonrevolutionizingthe
productionofEDMliveevents,concentratingonpromotingthefacilitationoftotal
marketingsolutionsforbrands.TheFX-1platformsupposedtoserveasthe
frameworkfortheintegrationofartistmanagement,socialmediapositioningand
digitaltechnology.Pioneeringmarketingandcontentpartnershipsaimedat
achievingMillennialswerefundamentallyimportanttoSFXsstrategy,sinceitisthe
waytolinkEDMfanstoprominentbrands.
Intheopeningquarterof2014,SFXannounceddealswithfourtopbrands,including
AnheuserBusch-InBevandClearChannel.Laterthatyear,theDJprojectwith
SimonCowellsSycoEntertainmentwaslaunched,inpartnershipwithT-Mobile,the
Statesfastestgrowingtelecomprovider.TheuniquepartnershipofT-Mobile,Syco
andSFXenablesUltimateDJ,anewconceptinTVprogramming.Itwillstimulate
theadoptionofEDMasamainstreamgenre.
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BasedonthecombinedannualgrowthasstatedintheIMSreport2015.
Undergroundvs.Mainstream
EDMisquicklygainingmainstreamstatus,leadingtosponsordeals,company
takeovers,fusions,strategicpartnershipsandbrandaliations.Allofasudden,DJs
arethenewrockstarsor,toquoteUSmagazineForbes,theElectronicCash
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Kings.Theannuallist ofthetradesbiggestearnersisheadedbyCalvinHarris
andrunner-upDavidGuetta;theirearningsover2014areestimatedat66millionand
30milliondollarsrespectively.HarrisisabiggerearnerthanJay-ZorKatePerry.His
polepositionisacareerrst.InFebruary2014,hesignedacontractwithLasVegas
megaclubHakkasanfor70+gigsinatwo-yearperiod.Heenhanceshisincomeby
writingandproducingsongsforpopstarslikeRihanna.Theriseofdanceoverthe
lastthreeyearshasbeenastronomical,hetoldForbesmagazine.Ihappenedtobe
attherightplaceattherighttime.
Themajorityofthedancemusicfestivalsoperatesastandardline-upofaselectfew
bignameDJsandacts.Insomecircles,thispracticeisregardedasarapeofthe
electronicmusicgenresessence.Forexample,CarlCox,DavidGuettaandTisto
representvarioussubgenresandassociatedaudiences,whilemanyfansopinion
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thattheseartistsdontcomplytoEDMsexpectations.Theunderground vs.
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mainstream conictisbattledoutcontinuouslyonTwitterandothersocialmedia
byanynumberofDJsandproducers.
SomeoftheDJsauthenticityisquestionable,forthatmatter.Itconjuresupshades
ofthehiphopbattlesofthe1990s.ReportsonParisHiltonandKimKardashian
behindthewheelsofsteelortheannouncementofanIbizaclub-residencyforJustin
Bieberfueltheamingdebates.SomebelieveEDMtobeapoptrend,abubble
abouttoburst.Forthetimebeingtheglobaltrendpersistsanddancemusic
graduallybecomesamatureglobalindustry.
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Forbes(2015).Theworldshighest-paidDJs:ElectronicCashKings2015.Informationsourcedon24August2015:
http://www.forbes.com/zackomalleygreenburg/2015/8/24/the-worlds-highest-paid-djs-electronic-cash-kings-2015
17
Undergroundisthesubcultureinwhichidealisticorartisticcreations,consciouslyorsubconsciously,reactagainstthewider
public.Thesecreationsinclude,forexample,art,literature,music,lmandfashion,andalsomediainwhichidealismor
alternativelifestylesareimportant.
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Mainstreamisatermconveyingactivitiessuchasartandmusicmovementsthatareinterestingtoalargeamountofpeople,
themass,andareobviouslypresentinsociety.
Progress
Sinceitsbeginningsintheearly1970s,theevolutionofelectronicmusicisintimately
linkedtotheprogressoftechnology.TheadvanceofonlineDoItYourselfplatforms
hadmadelifeeasierthaneverbeforeforthemusicacionado.Theclosingofthe
gapbetweenthefanandtheartistfeedsthebelievethatanybodycanbethenext
bigtimeDJorproducer.Studiogearhasbecomefarmoreaordableoverthelast
tenortwentyyears.Recently,SkrillexpointedoutthatheproducedhisGrammy
Award-winningtracksonhislaptopwiththeaidofsomegenericsoftware.
ThesinglebiggestproblemoftodaysEDMindustryisitslackofprofessionalism
andexpertise.Thisdoesntcomeasasurprisesinceitisdrivenbytechnologythat
hasbeenpracticedfortwodecadesorless.Oneverylevel,thousandsofonline
courses,specializedschoolsandbusinessconferencesareaddedtothe
knowledgestructure.Withitsowering,theindustryhelpstoredenetheconcept
ofeducation.Ofspecialimportanceareeducationalinstitutionsdedicatedtothe
trainingofnoviceproducers,artistsandbusinessprofessionals,likeRichieHawtins
CNTRL:BeyondEDM.
Hawtinandateamofstand-outDJ-producerslectureandhostworkshopson
variousaspectsoftechnologyandmusicproduction;inturn,theylearnfrom
interactionwithstudentsandprofessionals.IntheNetherlandsyoungstersare
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educated tofeelcomfortableinanentertainmentandlifestyleenvironment,andto
beawarethatthemusicbusinessisnotjustaboutmusic;itisabusinesstoo.Atthe
institutions,thenewcommercialandcreativeprofessionalswillconceptualizethe
toolsfortheglobalindustrythatisinvolvedinevents,lifestyleandentertainment,an
industryworthbillionsthatkeepsongrowing-andgrowingbiggerdueto
technologicalandsocio-culturaldevelopments.
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ed.TheSchoolofHouse,HogeschoolInholland,RockAcademie,FontysACI,HKUaresomeexamples.
Technologyandthedigitalage
Thegrowthofthefestivalandeventmarketwasfacilitatedandmarkedlyaectedby
digitaltechnology.Thisisallthemoreremarkablesinceattendanceratesof
non-dancemusicfestivalsandeventsareindecline.EDMfestivalspullmorepeople;
moreover,thenumberofEDMfestivalhasgrownbyathird.EDMeventsappealto
the18-35agebracket,whichrepresentsthemostauentcohortinallofthe
entertainmentindustryshistory,onethathasmoneytospendlikenogeneration
before.
Thesuccessofsocialmediaanddigitaltechnologyfeedsandsupportsthe
popularityofdance.Digitaltechnologyassertslowthresholdinteractionbetween
artistandfan,accesstoandsharingofaudioles,andenablesonlineaudioand
videoservicessuchasSoundcloudandYouTube.Thefearofmissingout(FOMO)
drivesfanstoelevateEDM-relatedtopicstotrendingstatusonsocialmediaandthe
internet.PubliccompanieslikeSFXEntertainmentinvestseriousmoneyindigital
technologyand,byconsequence,theartist-fanrelationship.
Theaspectsoftheindustry
Therecordlabelormusiccompanyisresponsibleforthedistributionofthemusic
andthesupportoftheartistwhoistryingtoestablishhisname.Atthesametime,
theyconnectartistsbymaintainingrelationstomanagementcompanies,booking
agenciesandotherartists.Itisoftensaidthattherecordlabelisdeletedfromthe
businessequation.Overthelasttenyearsthelabelsrolehasbecomemoreoblique
andshifted,orsoitseems,toonlinemarketinganddistribution.Itisbecominga
service-centeredbusinessastheartistisbecominganetwork,asopposedtoa
product.
Mostrecordlabelsoperateinaparticularnicheandthuscreateimmenselypopular
subgenres.PlayMeRecords,forinstance,hasbecomesynonymouswiththe
aggressivedubstepsoundsinceitsinceptionin2009.SpinninRecords,onthe
otherhand,releasesmanyapopcrossoverEDMhitsingle,whileotherlabels
concentrateonanon-traditionalsound.Labelsareasnumerousasstarsinthesky,
however,mostbarelymanagetocovertheiroperationalcostsandcanonlysurvive
bybreakingnewartistsandacts.
Manylabelsarerunbypeoplewhoarepassionateaboutthemusicandwillmove
mountainstosupporttheirartists.OneofthemostinterestingaspectsoftheEDM
revolutionistherapidevolutionoftherecordlabeloverthelasttenyearsandthe
drasticchangeofitspartinartistdevelopment.Thedigitalmusiclandscapehas
beentransformed,andsohasthemusicindustryofold,includingtheroleofwhat
usedtobeknownastherecordcompany.
Chancesare,you,thereader,willhaveboughtnewmusicatBeatportoriTunes.
Bothplatformsdistribute(digital)music;Beatporthostsalibraryofsome1,110,000
trackson8,000+labels.Thustheyenablefanstosupportartistsviathepurchaseof
theirmusic.InEDM,labelsfunctionasmiddlemenwhomarkettheartistsoutput.
Beatport,iTunesandSpotifyare,simplyput,hubsthatconnectmusicandits
audience.Duetotheeverincreasingdemandfordigitaldistributiontheyhave
encounteredvariouschallenges.Piracyandtheriseofpeer-to-peerlesharinghave
resultedinunlimitedaccesstoanycommerciallyproducedtrackoralbum.iTunes,
BeatportandSpotifyhadthereforetowinovertheconsumerwhohadgrown
accustomedtoafreeforallfrenzytopayforhisorhermusic.Gradually,the
balanceisshiftinginfavoroflegalmusicconsumption.
Beatport,forinstance,ensuresfanspayforatrackofguaranteedsoundquality,
oering320kbps(theindustrystandard)downloadsinWAVformat.iTunesuses
lowerbitrates,sotheirtracksarecheaper.The192kbpsdownloadsarenefor
iPodsandiPhones,butareunsuitableforusebyworkingDJs.Recordcompanies
sellmusicviaadeliveryplatformoraggregator,thatoersthemusicforsalethrough
thehubsmentioned.Thesetaketheircutfromthesale;acertainpercentagefrom
thehubscutispaidouttothelabel.
Themanagerstillhasanimportantroleintheartistsbusinessmodel.Hends
opportunitiesfornetworking,givescareeradvice,setsupinterviewsandmedia
interaction,andhelpsoutontheroad.Agoodmanagerhashissightsrmlyseton
theartistsgoals.Theartististhefocusofattentionforateamofsupporting
professionals.Adedicatedplanandtransparentcommunicationassisttheeortof
achievingtheartistsobjectives.Themanagerconstantlycounselstheartistonhis
waytothetop,unburdeninghisartistwhereverandwheneverhecan.The
managerseortsareaimedatextendingandexpandingtheartistscareer,attaining
thehighestpossiblelevelofsuccessandcreatingplusguardingtheartistspublic
image.Likewise,managersmustbeawareofthemannerinwhichthedigital
revolutionhastransformedtheirrole.
Thewayahead
Dancekeepsonswayingtheworld.Meanwhile,anewgenerationofmusicfansthat
appreciatesastronglinkbetweenmusicandtechnologyiscomingofage.TheEDM
fanisdeeplyinvolvedindigitaltechnology,moresothanfansofothertypesof
music;thisinvolvementappliestoliveeventsaswellascommunicationwithfellow
fans.Theonlinebehaviorandthefocusondigitaltechnologyofthenewgeneration
ofEDMfansdirectlyaectthegrowthoftheEDMindustry.
Evidently,EDMfansaretotallynutsabouttheirmusicandlovetodiscussit.
Eventbrite,aleadingonlineticketingandregistrationplatform,haslookedintofan
20
behaviorinconjunctionwithMashwork .Thestudyshowedthatfans(punintended)
fantheamesutilizingsocialmedia.
ThestudysobjectivewastounderstandtheconversationaltopicsofEDMfans,
suchasthedierencebetweenfansofthevariousEDM(sub)genres.Over70million
messageswereanalyzed.Theresultsshowedthat,onaverage,EDMfansdaily
tweet11times,amarkedlyhighernumberthanthe1,85tweetsperdayofthe
averageTwitteruser.EDMfansareusedtodiscussingconcertsandeventsvia
socialmediaandover30percentofthefansdiscussvariousEDM(sub)genres.One
inthreetweetsisEDM-related.However,notallconversationswereaboutmusicper
se;14percentwassubculture-related,likePLURlifestyle,ravecommunitiesand
certaindancesteps.
ThequantityofEDM-relatedmessagesissimplybewildering,MartinaWang,
EventbritesHeadofMarketing,statesinBillboard.EDMfansarethemostsocialof
musicfans,bothonandoine.ItoersanoutstandingopportunityforEDMbrands
tocatalyzedancebyconnectingthemonline.
20
Eventbrite(2013).ElectronicDanceMusic(EDM)fanbehaviordiersgreatlyfromthatofothermusicfans.Information
sourcedon20August2015:
https://www.eventbrite.com/pressreleases/edm-fan-behavior-diers-greatly-from-that-of-other-music-fans
Mobile
TheuseofmobilephonesatEDMeventshasalwaysbeenstigmatized,however,
festivalandeventproducerscanapplythistooltocreateacommunalawarenessat
theirevents.OneinfourEDM-relatedpostingswereactuallypostedduringanevent.
Ittallieswithsome42milliononlineimpressionsforEDMeventsperyear.
EDMfansarereallypassionateabouttheirmusicandexpressitinapositive
manner.TwooutofveconversationsaboutEDMonsocialmediaaddressthe
adorationofthegenre.EDMfansareconstantlysharingphotosandvideosofpast
events,andsharemusicofnewlydiscoveredartists.Theirardorseemstobe
inexhaustible.
Danceloversaresuper-fans.TheyreallycreatethesuccessofEDMeventsbytheir
passionforliveexperiencesandtheirbehavioronsocialnetworks,Wang
elaborates.TheEDMindustryhasauniqueopportunitytoconnecttothisgroupof
verysocial,passionatepeople.
Content
Theemergenceoftheinternethascompletelytransformedthewaywedobusiness
inthemusicandentertainmentindustry.Technologicalprogressandsocialmedia
toolshaveinducedarevolutioninthewayweconsume,produce,distributeand
discovermusic.Artistshavecreatedvastpoolsofnewfansviatheinternetbecause
theyunderstandthepowerofthenewtechnology.EDMisinherentlylinkedto
technologyandcanthereforebelabeledasdisruptive.Artistsoftenstartoutby
llinguptheirlaptopswithmusicandsubsequentlyintegratenewtechnologyintheir
productions.Innovativesoftwareassistsliveshowsinstadiumsandarenas.
DJshaveusedmoderntechnologytobuildapersonalandintimaterelationshipwith
theirfans.Socialmediaaresupremelyequippedtofocusontheindividualinan
authenticandmeaningfulfashion,inshrillcontrastwithanaloguemedialike
televisionandradiothatrenderstheconsumerapassivereceptorofinformation
broadcastedbybrandsviacommercials.Socialsmediaarepersonal,intimateand
interactive.Itenablesuserstoparticipate.Bythesemeans,musicandstoriescan
disperseviaFacebook,Twitterandothertypesofsocialmediaplatforms.
ManyDJsandeventandfestivalproducersacknowledgethepotencyofsocial
media.Increasingly,theymobilizesocialmediatoenterthefansdigitalhabitatin
ordertocommunicateoneonone.Theyreacttotweets,commentonmusicand
contentoffellowartists,andcustomarilypostpersonalvideosoftheircreative
endeavors.Thefanshavedirectaccesstotheartistsandfeeltheybelongandare
partofaninnercircle.Theresultisamultitudeoffans,bothonlineandoine.
ManyDJswereearlyadoptersofthefreemusic-modelanddecidetothedismay
oftheirrecordcompaniestocontinuethepracticeofmakingtheirmusicavailable
forfreeviasocialmedia.OnchannelslikeSoundcloudtheyoertheirmusicfor
remixing,soitcanbere-used.Thereupontheyutilizesocialmediatocommenton
thenewremixesandsharethem.Tomanyfans,itfeelslikebeingpartofthecreative
process.Anartistisnotjustanicesongthatisconsumedandforgotten.Heisin
non-stopinteractionwithhisfanbase.ItcompelsEDMartiststobefreshand
innovative.
Bindingagent
Musicconnectsandisuniquelyabletostirupemotions,evenrapture.Thepowerof
musicdoesnotchangeandnordoesthedemandformusic.Nevertheless,the
musicindustryischanging,atanastonishinglyfastrate.Ifanywheredisruptive
21
forcesareatplay,itisinthemusicindustry.Weareonthecuspofthethird
disruptivespell.Again,thedancesceneisleadingtheway.
Socialmediabringaboutdirectrelationshipsbetweentheartistandthelistener.
ArtistsnolongergeneratethebulkoftheirrevenuesthroughsalesofCDsor
downloads.Itisfromperformingthattheyearnthemoney.Thistransformsmusic
fromaphysicalproducttoanexperience.Freedownloadsandlesharinghave
mademusiccommonproperty.Scarcesupplyisnolongerrelevant;itisallabout
grabbingthelistenersattention.Ownershipmakeswayforaccess.Inthemusic
industrysellingphysicalproductsisreplacedbydownloadsandstreaming.These
days,fanshaveaccesstoimmensedatabanksofnewsongsandoldermaterial(the
so-calledbackcatalog).Itisnolongeramusttophysicallyownthemusic,that
attitudeappearstohavebecomeobsolete.
Marketsocialism
ThemusicindustryandthepartthatdealswithEDMinparticular,mustacceptthat
weliveinaneraofmarketsocialism.Marketsocialismiswhathappenswhena
capitalistsocietyisconfrontedwithamarketvaluethathasbeenredened.Money
isnolongertheapprovedwaytoexpressmarketvalue.Connectionsandartist
contactsarethenewvalueindicators,asexpressedinYouTube-plays,
Soundcloud-plays,Facebook-likesandTwitter-followers.
21
Therstperiod:thetransitionfromanalogtodigital.Thesecondperiod:fromdownloadstostreaming.Thethirdperiod:from
streamingtonetwork.
Consumerresearchpointsoutrepeatedlythatthemajorityofthemarketing
messagesmisstheirtarget,connectingtotheinterestsandneedsofthecustomer,
byamile.Moreimportantly,nowadaysanyoneisabletocontrolwhatmarketing
messagesarepresentedtohimorher.Telemarketing,directmailandemailcanbe
blockedfromourdailyinfodiet;wezapTVchannelstododgecommercialsor
simplyskipthemwhenwewatchTVatourtimeofpreferenceviaadigitalservice.
RedBullisacompanythathasunderstoodthisnewrealityanditoersagreat
exampleofhowtodealwithit.RedBullcreatesmorecontentthanDisneyand
publishesitinanenvironmentnotjustmediaenvironment,bythewaywherethe
brandidentitycomesintoitsown.NoneofitsmessagessellRedBull,oranything
forthatmanner.Whatthecompanydoes,media-wise,ispublishanddistribute
contentthatappealstoagroupofusers,connectsthemandmakesthempartofa
certainlifestyle.Ithelpsthemtoexpressanidentity.
Transition
Thisexposesanewand,tosome,uncomfortablereality:albumsalesarenolonger
thebedrockofanartistscareer.Noraredownloads,whosesalesguresare
slipping.Theoldschoolmusicindustryclingsdesperatelytoitsbusinessmodel,
thesaleofphysicalproduct.However,thatmodelisobsoleteandhasbeenforsome
time.Eventhesuperstarsarestruggling.Pittbullsoldlessthan10millionalbumsin
hiscareer,inspiteof54millionFacebookfansandmillionsofYouTube-viewsatone
pointin2013.Thisistherealityofthenewmusicindustry.Itisbuiltonuid
attention,notondirectmusicsales.
Festivalandeventproducersmakemoneybyaddingmeaningfulcontenttothe
fansexperience,raisingtheirproleand,hopefully,gaininginuence.OnTwitter
massesofloyalandresponsivefollowersbecomeactive,whichactasambassadors
22
andbrandadvocates .Theyspreadthebrandsmissiontotheirfollowers.On
Facebook,festivalsandeventscancreatedynamicandloyalcommunities;
interactioninspiresandcreatesanincreaseofreactions.
22
Endorsersofabrandviasocialmedia
Freedomofpublication
Meerkat,Periscope,UstreamandYouTubeoeropportunitiestoreachaworldwide
audienceandcommunicatetoalivecommunitythatspillsovertovarioussocial
networks.Bloggingismoreimportantthanmostpeoplerealize.Thisstreamof
messagesenablesfestivalandeventproducerstolearnfromtheirfansand
participateinthediscussionaboutthefutureofthefestivalorevent.
Sinceanyoneisfreetopublishandhashisorhersay,artistandfestivalproducers
canreachpartsofthepublicthatisnottheirtargetaudienceviatheircontent.Itall
startswithamissionandisreinforcedbythecontentartistsandeventproducers
create.Oneofthemostvaluablemeansthattheartistorthefestivalproducer
23
attainsisinuence,goodwillandsocialcapital .Obviously,ithasaprice:thecosts
ofproduction,distributionandmaintenance.Butintheend,thepayoishandsome.
Itjustiestheinvestmentoftime,money,creativityandpassion.Thiswayartistsand
eventproducersnotjustbuildtheirproleviamedia,theybecomeprominent
throughcontentandcomplicity.
Levelplayingeld
Thesedays,artistsandeventproducerscanreachabiggeraudiencethroughdigital
channelsthanbefore,whentheyhadtorelyonthetraditionalgatekeepersofmedia
platforms.Theopportunitiestoimpacthavebeenleveledandthisaects
programmingevents;thebusinessmodelofartist,eventproducersandthemusic
industry;andmediaparticipation.Itisthroughtheinterplaybetweenmediaand
interactionthatweestablishthebasisofanity.Peopleconnecttomovementsthey
canbelievein.Itisthehuman,intellectualandnancialinvestmentsingenuine
contentthatgivemeaningtoexperiences,andinthisway,hopefully,onedayyour
brandwillbecomemeaningfultoo.
Artistandeventproducersmusttakecontroloftheirfuture.Theyhavetounderstand
intellectualpropertyrights,includingcopyrights,patentsandhallmarksthatprotect
theirassets.Theyhavetolearntounderstandthecoreprinciplesofthedigitalworld
inordertoalignthestrategicpartnershipsforthedistributionofmusic,content,
touring,merchandisingandbranding.Theyhavetolearnhowtobuildaneective
teamthatcanexploitthepotencyoftheircreativityandcontentinabusiness-sound
way.Onlybyself-educationareartistsandeventproducerscapableofsurvivaland
beingresponsiblefortheirsuccessinthedigitalworld.
23
Referstosocialnetworksofindividualsandallresourcestheindividualisabletomobilizeviathesenetworks.Socialcapital
isnotonlyimportanttosocietyssocialcohesion,butisalsoofeconomicvaluetoboththeeconomyandtheindividual.
4.TheroleoftheinternetecosysteminEDM
Thestartofdigitaltechnology,itsinitialuseandsubsequentbroadpenetrationof
internet-linkeddevicesintandemwiththeemergenceofasupportinginfrastructure
arethedriversofthedigitaltransformation.However,thepossibilitiesandlimitations
ofthedigitalrealmarestillexploredeveryday,resultingintheconceptionand
productionofaneverincreasingnumberofappliances,applicationsandnetworks.
Theirtotalsumconstitutestheinternetecosystem.Anycompany,organizationor
brandisbothpartoftheoverallinternetecosystemanditsspecicinternet
ecosystem,thepartoftheoverallstructureinwhichitaimstobeembracedbythe
endconsumer,thefuturefanorcustomer.
Artistsandproducershavetocontinuallyadapttonewtechnology:newdevices,
newsoftwareandnewinterfaces.Thefurtheradjustmentsofthemediaand
businesslandscape,supplyingwiththecorrectcontent,establishingtheconnection
andreadingouttheresultingdata,areallpartofthetransitionyouwillendure.When
you,asanartistoraproducer,realizethephenomenalimpactofthedigitalchainon
thewaybusinessisconductedandthebusinesscultureingeneral,youshould
adjusttotherulesandregulationsoftheinternetecosystem.Thischapterwill
discusstheinternetecosystem.Whatisitsrole?AndwhatdoesitentailfortheEDM
industry?
Digitalworld
Ifyou,theartistofthefestivalproducer,stillrefusetoparticipateintheonlineworld,
chancesareyouarelaggingbehind.Thatcreatesanuncertainfuture.Weliveinan
eraofever-increasingtechnologicalchange.Itimpactsourworkandourdailylives.
Whetheryoulikeitornot:forartistsandproducersitiscrucialtoworkoutadigital
strategyinordertooptimizetheopportunitiestheinternetoers.
Sowhatdoesdigitalmean?Inpractice,itbreaksdownto:
Thevirtualworldtheworldwideweb,socialnetworks,mobileapplications,
softwareandthecontentthatispublishedinthevirtualrealm;
Thedevicesweusethinkofcomputers,laptops,tablets,smartphones,
television,radio,wearablesandotherconnecteditemsanddevices;
Ourbehaviorandneedsthereasonswhyweusethesedevicesand
(social)networksandtheopportunitiestheyoer;
ThephysicalandwirelessnetworksthatlinkdevicesandpeopleWi-Fi,
broadband,cable,ber,3G/4G/5G,satellite,etc.
Today,weliveinadigitalworld.Justabouthalftheworldpopulationhasaccessto
theinternetinonewayoranother.Internethasopenedupastaggeringamountof
information.Moreover,socialmediaenableustocommunicateandshare
informationeortlessly.Theultra-fastdigitizationofcontemporarylifehassweeping
consequencesforsocietyanditseconomy,resultinginthegradualemergenceof
newwaysoflearning,working,doingbusinessandmakingmoney.
Inthedigitalworlddierentrulesandregulationsapplytoeconomicpractice.It
comparestoabartersystem.SocialplatformssuchasFacebook,Googleand
Twitteroerunlimited(free)accesstotheirservicesinexchangeforourpersonal
dataandinsightintooursocial(online)behavior.Thatinsightrepresentsvaluein
termsofmoney.Theartistoreventproducerisabletoobtaintheseinsightsaswell.
Rawdatalikepersonalnamesoremailaddressesdonotconstitutemuchvaluein
itselfthough.Whatyoumustdois:analyzethedataandlocateinterconnections.
Theseopenuppossiblebusinessmodels:acertainpersoncanbevalidatedasafan
soallhisorhertweetsandlikescanbeusedtointerpretthevalueofacompany,
organizationorbrandintermsofpotentialgoodwill.
FortheworldofEDMitistimetodevelopabetterunderstandingofitsrelationto
thedigitalworld.Whatdoesitmeantobeanartistoranevent/festivalproducerin
thedigitalworld?Whatarethechallengesforartistsandevent/festivalproducers?
Whatarethebestpractices?Andhowdothesebestpracticestranslateto
sector-wideinnovations?Thise-bookwilldiscussideasandinsightsthathavean
importantbearingontheartistsandeventproducersperformanceinthedigital
world.InprincipleitfocusesonthechallengesfacingEDMprofessionals.Itwill
indicatehowresearch,analysisandassessmentcanassisttheEDMprofessionalin
facingthesechallenges.
Ecosystem
Theinternetisa(macro)ecosystemofonlineconnectedcommunitiesofendusers,
developers,suppliersanddistributors.Theseallusethefortitudesofoneanother,
complementeachother,improveandboosteachother,togethercreatingvaluefor
enduserslikecustomersorfans.
Asanartistoraproducer,aswellasanindividual,youarepartoftheinternet
ecosystem.Allthemoresowhenyouwanttobeacceptedbytheenduseri.e.your
(future)fanorcustomer.Moreover,asanartistorproduceryouarepartofa
communitywithintheecosystem,centeredaroundthecontentyoucreate,the
functionalityyouprovideandthedatayoucollect.Contentisdistributedviathe
24
websvarioususerinterfaces,socialmedia,mobileappsandopenAPIs .
Whenyou,theartistorproducer,wanttoestablishamultitudeoffansaroundyour
community,youhavetoadaptafundamentallydierentattitudetowardsthevarious
entitiesintheecosystem.Thisconcernsnotjustyourwebsiteandthesocial
networks,italsoappliestoallconnectedindividuals,companies,organizationsand
brands.Conditionsusedtofavoralliancesthatfocusedoncompetitionand
protection;theemphasis,however,hasshiftedtotransparency,collaborationand
promptness.Beawarethatfansandcustomersareableandwillingtoarrangetheir
aairsonline,whenitsuitsthem,quicklyandwithoutmuchado.Listening,
participatingandanticipatingthedatathatwillbegeneratedareimportant
provisionsinordertoenterintoconversationsandinteractions.Thedatathus
generatedaresaved,analyzedandrelatedtotheinformationalreadyatyour
disposal.
Information-richproductsandservicesareproducedbyandfortheparticipantsof
anecosystem.Themosteectivestrategyisfortheorganizationtopositionitself
closetothecenteroftheweborecosysteminordertobecomearelayforessential
transactions.
24
ed.Interfacesopentocustomizedandself-designedfunctionalities.
Fromanalogtodigital
Weareinthemidstofaconversionfromanalogtodigitaland,asanartistora
producer,youarepartofanecosystem.Whetheryoulikeitornot,yourfans,
customers,visitors,partnersandsuppliersareonline.Thediagramvisualizesthe
webofconnections.Theinternetisusedbyyourfans,partnersandvisitorsto
benetfromeachother,toshareopinionsandtocomplementandstrengthenone
another.Thustheyaddtoyourcontent,whichbenetsothersinturn.Andtheydo
sowithorwithoutyouractiveinvolvement.Together,theycanmakeorbreak
productsorservices.TheEDMindustryhasgraduallylostitsgriponcustomers,
fansandambassadorsasaresultoftechnologicalevolution.Marketinghasbecome
anarchipelagoofoineandonlineactivitiesthat,forthemostpart,donotconnect.
Artistsandfestivalproducersspendtoolittletimeponderingthequestionhow
internetandsocialmediacanhelpthemtofurthertheirbusiness.Theyfocussolely
onthetraditionalpushprincipleandusethechecklistattitudetosendout
messages.Thesilomentalityusedtobepartofthemarketingmansprofessional
DNA.However,theplayingeldhasbeencompletelyoverhauledbytheinternetand
socialmedia,andtheruleshavechangedaccordingly.Fans,customersandvisitors
prefertolistentooneanotheroverconsumingcommercialsandadvertising;they
aremoreassertiveandmorepowerfulthaneverbefore.Therefore,itisofcrucial
importanceto(re)establishtheemotionalconnectionwithfansandcustomers.
Followtheroutetoalikablestatus.Conversationandconnectionarethekey
concepts.
Frommarketingtocommunication
Conditionsthatusedtofavorcompetitionandprotectionofknowledgeand
informationhavemadewayforanenvironmentthatrewardsopenness,transparency
andcollaboration.Itdemandsadierentwayofthinkingandacting.Thepointisto
viewandlisten,andtoparticipateandsmartlyanticipatethehugepileofdatathatis
generatedbytheseconversationsandinteractions.
Marketinghaschangedalmostovernight.Itrequiresnewpracticesbymarketing
specialistsandanewdesignofthemarketingprocess.Furtheroninthispublication
wewilldiscussthesenewrequirementsofprocessandpractices,anddetailthe
mostimportantcurrentchallengesforartistsandeventproducers.
Nottoolongago,themarketingprofessionalscoredkudosforthedevelopmentof
anRTVcampaignoraprint/outdoorrun.Itwastheerainwhichmarketing
professionalscouldhidebehindthein-view:Halfofthemarketingbudgetismoney
wasted,wejustdontknowwhichhalf.Itwastheverysameerathatnumbereda
selectfewcommunicationchannels;whencommunicationprofessionalsused
jargonlikeaboveandbelowtheline;whengroupsofcustomerswerebroken
downintobracketsforage,gender,educationandincome.Thoseparameters
covereditquiteadequately.Meanwhile,customershavegrownaccustomedtothis
rough-hewnsegmentationandaccordingonesizetsallapproach,anddemanda
morepersonalizedoutlook.
Newparadigm
Inscience,paradigmsrepresentacomplexofrelatedmethodsandnotionsabout
questionsconcerningrealityandhowtoapproachthesequestions;aframeof
referenceoramindframe,sotospeak.Paradigmsdenetheboardonwhichwe
play,nottherules;thelandscapeinwhichweoperate,notthetemperatureorwind
velocity.Inthisrespect,theydene(asopposedtoinuence)thedynamicsofour
actions.Changetheparadigm(playonadierentboard)andyouchangethe
dynamics.
Paradigmsareanabstractnotion,however,intherealworldtheydochange.
SciencephilosopherThomasKuhnhasdevelopedamodelthatdescribesthe
workingsandchangeofparadigmsastheyfunctionforthegatheringofscientic
factsandknowledge.
Modelsonlydescribepartofreality;theyfailtoexplainallphenomena.Everymodel
hasitsholes,whereexceptionstotheruleandanomaliesslipthroughthenetof
reason.Bytweakingthemodel,onoccasionitispossibletobringtheanomalyinto
order.However,toomanyexceptionstotheruledilutetheruleandthemodelloses
itsdescriptive(andpredictive)ecacy.Thissituationcanleadtoanewsetofrelated
theoriesanewparadigmthatisbetterinexplainingthecurrentsituationor
circumstances.ThishasbeenthecasefortheEDMindustryforadecadeorso.
TheintroductionofdigitaltoolshasreshapedtheEDMindustry.Ithascreatedanew
dynamic,anewparadigmthatdictatesthesuccessorlackofsuccess.Oneaspect
ofthenewparadigmconcernstheapplicationofdirectdigitalchannels.The
disruptionofthemarketing,communication,salesandinnovationofEDM-related
productsandservicesoccursatbreak-neckspeed.
Therealityofalwaysconnectedcreatesbetter-than-everopportunitiesforartists
andeventproducerstomaintainadirectrelationshipwiththeirfansandcustomers.
Digitalchannelslikewebsites,onlinecampaigns,blogs,socialmediaandmobile
devicesconstitutethemostexible,eectiveandscalablewaytodevelopthese
relations.
Inordertodoso,artistsandeventproducershavetoembracethenewparadigm.In
theiroldschoolcontacts,artistsandeventproducersfocusonafewselectkey
channels,withlimitedpresence.Thenewparadigmasksforcontinuouspresencein
allrelevantchannels.Fansandcustomersdecidewhen,inwhatwayandtowhat
extenttheyinteract.
Changesareevident
25
26
TheEDMmonitor ofRankingz showsacorrelationbetweenFacebookranking

andtheartistspositionintheDJMagTop100,theannuallistthatrankstheworlds
mostpopularDJs.Jocksbornafter1987performbetterinthepopularitypollthan
theiroldercolleagues.ThismeansthatDJswithmorefansonsocialnetworks(in
absolutenumbers)arenotbydenitioncapableofreachingmorefans.The
networksofDJssuchasNickyRomeroandHardwellaresignicantlymoreactive
andtheyarebetteradministered.YoungDJsarebetterat,anddisplayamore
relaxedattitudein,usingsocialmediathantheolder,establishedgeneration,it
appears.Theyarebetteratmaintainingrelationsviasocialmedia.Theyaretherst
tounderstandtheneedtoapproachthefansinadierentandanewway.
ComparetheFacebookscoresfromtheEDMmonitortotheresultsoftheDJMag
Top100pollanditisobviousthattheyoungerDJsdobetterinbothtallies.It
appearsthatsocialmediaarebecomingpredictivewhenitcomestotherankingof
DJsintheTop100,evenhintatthetimespanoftheproductlifecycle.Atanyrate,
thedataoftheEDMmonitorareausefulmeanstotryandpredicttheresultsofthe
DJMagTop100.
25
http://denisdoeland.com/2014/02/18/uitgelicht-data-uit-de-edmmonitor-2013-van-rankingz/
Rankingzisacommunitythatcomparesthedigitalreputationofbrands.Itcheckssearchengines,blogs,wikis,forums,
socialnetworks,communitiesandmicroblogs.Byindexingbrandsanimageofabrandiscreatedwithinacertainindustry.
Theoutputispresentedintheformofalist.Moreinformationabouttheindexescanbefoundhere:
http://www.rangkinz.com/nl/de-rankingz-index
26
Rankingzssurveyconrmsthis.TheanalysisoftheresultsoftheEDMmonitor
displaysacorrelationbetweentheageofafestivaloreventandthegrowthofthe
numberofTwitterfollowersmeteredoverthatyear.Theageisrelatedtotheyearthe
festivaloreventwasrstorganized.TheTwitterplatformispreeminentlysuitedto
openupdialoguecoveringtopicssuchasthemeoftheevent,theartistsonthebill
andtheset-upoftheeventitself.Co-optingthefansideasanddiscussingtheir
inputistheplatformsforte.However,itappearsthatolderorganizationsinparticular
employsocialmediaforoldschoolmarketing.Theysendoutinformationandshun
27
interaction.Accountsofthatnaturedonotshowmuchdigitalwordofmouth .
ThismeansthatolderDutchfestivalsandeventswithabiggerfanpool,suchas
Paaspop(since1985),ILoveTechno(establishedin1995)andEmporium(2005),are
notbydenitionbetteratinvolvingtheircommunitiesandconnectingtheirfansto
brands.YoungerorganizationsusesocialmediaplatformslikeTwitterinamore
naturaland,aboveall,authenticmanner.Inthisfashion,theUltraMusicfestivalis
theyoungestandalsothefastestgrowingplayeronTwitterin2013.Oneexplanation
isthefestivalsorigin:itisconceivedandmanagedbydigitalnatives.Theyounger
generationisdominatedbytechnologyandadoptsamoreorganicandhands-on
approachtoitthantheiroldercolleagues.
Businessecosystem
OnvanAnaloognaarDigitaal.nuyouhavebeenabletoreadthatyou,theartistor
eventorganizer,havetoestablishyourveryownecosystemwithintheinternet
ecosysteminordertobesuccessful.Theinternetecosystemreallyisabusiness
28
ecosystem,asdened inthe1990sbyJamesF.Moore.Hediscoveredthat
successfulcompaniespracticesurvivalstrategiesthatoccurinnaturalecosystems.
Mooreformulateshiscoredenitioninhisbook,TheDeathofCompetition:
LeadershipandStrategyintheageofBusinessEcosystems.Initsbroadestsense,
aninternetecosystemisoftendescribedastheaggregateinteractionsofan
industry,brands,products,dataandpeople.
27
ed.Wordofmouthadvertising
ed.ThedenitioncanbefoundinMooresbook,TheDeathofCompetition:LeadershipandStrategyintheAgeofBusiness
Ecosystems.Thedenition:Aneconomiccommunitysupportedbyafoundationofinteractingorganizationsand
individualstheorganismsofthebusinessworld.Theeconomiccommunityproducesgoodsandservicesofvalueto
customers,whoarethemselvesmembersoftheecosystem.Thememberorganismsalsoincludesuppliers,leadproducers,
competitors,andotherstakeholders.Overtime,theycoevolvetheircapabilitiesandroles,andtendtoalignthemselveswith
thedirectionssetbyoneormorecentralcompanies.Thosecompaniesholdingleadershiprolesmaychangeovertime,butthe
functionofecosystemleaderisvaluedbythecommunitybecauseitenablesmemberstomovetowardsharedvisionstoalign
theirinvestments,andtondmutuallysupportiveroles.
28
Itincludesallconcerned:partners,suppliers,competitors,customers,analysts,
commentators,journalists,bloggers,prospectsandindividualcitizens.Thetechnical
infrastructure,aswellasthefunctionsthenetworkfullls,ispartoftheinternet
ecosystemtoo.Byviewingtheinternetecosystemasabusinessecosystem,new
valuemodelsintherelationsofallpartiesconcernedemerge.
Untilnow,yourgreatestvalueasanartistoreventproducerwasprobablyyour
brand.Itisoftennot(yet)includedinthebalancesheet,yetitrepresentsahidden
value,alsoknownasgoodwill.Goodwillisanintangibleasset,usedinnancial
reportstoindicatethepartofacompanysmarketvaluethatisnotdirectlyrelated
toassetsandliabilities.Itisafuzzyconceptthatinmostcasesisonlyusedto
representacompanysaddedvalueincaseofatakeover.Inthisview,goodwill
representsfutureearningsthatarenotvaluedinthebalancesheet,yetdoexistin
theformofknowledge,customers,brands,personnelandthelike.
Personalizationandinformation
Thegreatpromiseofdigitalandinteractivechannelsispersonalization.Attheright
time,youcanprovidefansandcustomerswithrelevantoersandexperiences,
wherevertheymaybeatthatmoment.Manyartistsandeventorganizerslackthe
know-how,technology,leadershipandsupportinginfrastructureinordertorespond
tothisimportantdevelopment.Withoutaccesstotherightdataattherighttime,
personalizationviadigitalchannelsisnotpossible.Thepointis,contextualdataon
thebackgroundofthefanorcustomer,likelocation,personalinterestsandrelevant
communities,enabletheartistandeventorganizertomodulateinrealtimethe
personalexperienceforfansandcustomers.
Artistsandproducershavetocollectdataandintegratethemintheirdailyaairs.
Subsequently,theycanusetheknowledgeobtainedinthiswaytosupportthefanor
customerrelationandoerhimorherapersonalrelation.Inthatrespect,theartists
andeventproducersobjectiveisveryplain:theartistoreventproducerwhohas
directaccesstothemostrelevantdatawinsthestruggleforthefansand
customersattention.Itisassimpleasthat.Theexecutionofexhaustiveofperiodic
analysiswillnotdo.Employeesmusthaveaccesstorelevantdataonadailybasis.
Thisinformationshouldnotbehiddenawayinvarioussiloswithintheorganization
oratnon-resident(service)suppliers,suchasmerchandisesaleschannels,ticket
vendorsormusicandvideoservices.Employeesandpartnersoftheartisthaveto
workwiththesedataonadailybasis.
Thesedevelopmentsrequireanintegratedpolicy.However,silo-thinkingisdeeply
embeddedinourgenes.Thatiswhymanyartistsandeventproducersaddresstheir
onlinesocialchannelsseparately,forgoinganyformofintegrationofmarketing,
communication,serviceandsales.Theypersistinadvertisingviachannelsthatfans
andcustomersuseforconnectivity.Frompushtopullisthewaytouseinternetin
ordertostructuretheorganizationanditsnetwork,andmakeitmoreecient.
Humanresource,customerserviceanddigitalplatformdevelopmentareofthe
utmostrelevanceinthisrespect.Objectivesliketurnoverandcoverageare
becominglessrelevant.Thevalueofyourcompanycanonlygrowbysteppingo
thetroddenpath.
Analysisandresearch
Howtouseoneswebsiteandwhatsocialnetworkstoapply?Tacklingthese
questionsrequiresanunderstandingofthefunction,relations,sizeandcomposition
ofthepeoplethatmakeupyourecosystem.Thesecanbemappedprettyprecisely
withthehelpofsurveysandreportsbyNielsen,GlobalWebIndex,Kleiner,Perkins,
Caueld&Byers,BusinessInsider,eMarketerandStatista.
Thesevariousreportsshowthatasocialmediumisalocalphenomenon.Arather
largeholeinFacebooksworlddominanceisChina.TheChinesegovernmenthas
blockedaccesstoFacebookandlocalChinesesocialnetworksdominatethe
Chinesemarket.AccordingtoStatistaslatestgures,Qzonetakestheleadin
China,followedbyWeibo,SinaWeiboandRenren.InRussia,vKontakteand
Odnoklassnikiaretheleadingsocialmedia,rapidlyexpandingtoothercountriesin
EasternEurope.
Alsorequiredisananalysisaso-calledmacroecosystemanalysisofthedigital
realm.Thisistherstinanumberofstepsintheprocessofsurveyingthedigital
domaininwhichtheartistoreventproduceroperates.
Theanalysisbreaksdownintoanumberofsteps:
29
29
Development ofthedigitaldomain
Sizeofthedigitaldomain
30
Segmentation ofthedigitaldomain
31
Growth ofthedigitaldomain
Developmentandsizeofthedigitaldomaincanbemonitoredvia,forinstance,
http://www.internetlivestats.com/internet-users/
30
Segmentation(devices,landscape)ofthedigitaldomaincanbemonitoredvia,forinstance,
http://wearesocial.net/blog/2014/01/social-digital-mobile-worldwide-2014/
31
Deepersegmentationandgrowthofallsocialnetworks(content,connections)canbemonitoredvia,forinstance,
http://insight.globalwebindex.net/gwi-social-q2-2014
Conversationprism
32
Theconversationprism isaneattoolformappingtheartistsdigitalenvironment.
TheprismwasdesignedbyBrianSolis,incollaborationwithdesigncompany
JESS3,andpublishedin2008.Itisagraphicrepresentationoftheinternet,broken
downintovarioussocialsegments:
Thegraphicmightbeabitconfusingatrstglance.Theartistoreventproducerand
hiswebsitearelocatedatthecenter.Theadjacentcolorclockrepresentsasocial
mediashell,orderedtothemannerofinteraction.Theprismoerstheoptionto
decidewhatsocialmediatoutilizeinregardstothetypeofinteractionyouwantto
engagewithfansandfollowers.Moreover,itsuggestswhichmediatomonitor.
32
Thelatestversionoftheprismcanbefoundon:https://conversationprism.com
Themostimportantsegmentsforartistsandproducersare:
Comments:insertapplicationsthatfacilitatereactionoptionsorimage
elements,Disqusbeingthemostprominent.
SocialNetworks:themostwidespreadandcommonlyusednetworks.
Apartfromcommunicatingwithfriendsandaddingfriends,these
networksareaboutproling,sharingcontent,discussing,socialgaming,
marketplacefeaturesandmanymoreactivities.Well-knownexamples
areGoogle+,FacebookandMySpace.
Business:Socialnetworksthatstartedupaftertheintroductionof
Facebook,facilitatingtheprofessionaluser(asopposedtoFacebooks
consumerusers).ThemostprominentexampleisLinkedIn.Xingisan
importantbusinesssocialnetworkontherise.
Location:Location-basedservices.Usersofthesesocialnetworkslogin
dependingontheirphysicallocation.Thesenetworksincludegame
elementsanddiscountsbasedonlocation.Themostprominent
exampleisFoursquare.
Video:Socialnetworksthatfacilitatetheuploading,sharingand
commentingofvideos.Thesenetworksaresocialbycharacter,they
oeroptionslikefollowingmembersandmakingfriends,and
incorporateratingsandreactions.Themostprominentexamplesare
YouTubeandNetix.
Events:websitesthatenabletheplanningofevents(meetings,parties
andsuch).ThemostprominentexampleisMeet.up
Music:sharingmusicalfavorites,newmusic,playlists,bandsandartists.
ThemostprominentexamplesareSoundcloud,Shazamandlast.fm.
Livecasting(orlivestreaming):socialwebsitesthatenableusersto
broadcast(stream)self-producedorrecordedvideosinrealtime.Other
userscanfollowstreamsbyloggingintochannels.Themostprominent
examplesareUstreamandJustin.tv.
Pictures:socialwebsitesthatenabletheuploadingofphotosand
visuals,forothersuserstorateandcomment.Moreover,thesesites
oeroptionsforintegrationwithdierent(social)websites.Themost
prominentexamplesareFlickr,InstagramandPicasa.
Blog/microblogs:oneoftherstconversionoptionsofthewebthatcan
belabeledsocialiswebblogging,blogginginshort.Installinga
bloggingapplicationonyourwebsiteobviatesHTMLexpertise.
Moreover,thesebloggingplatformsfacilitatefreeuseofpersonalized
pages.ThemostprominentexamplesareWordPress,Blogger,
PosterousandTypePad.
SocialCuration:Curationistheselectionofinformation,lteringthe
essencefromamultitudeofdata,andpresentingitinanaccessible
format.Itappliestoalltypesofinformation;text,audioandvideo.A
prominent(iPad)applicationisFlipboard.Furthermore,Paper.liand
Scoop.itareexamplesofthistypeofsocialnetwork.
SocialStreams:Thecollectionofinformationandcontent,plus
publishingitinaconcisemanner.Thiscategoryincludesmicroblogging,
ofwhichTwitteristhemostprominentexample.
360degreesapproach
Thefanorcustomerdecideswhatnetworktoutilizeinordertocontacttheartistor
eventproducer.Furthermore,heusesvariousservices,suchasticketproviders,
saleschannelsandmusicand/orvideoservices.Thisasksforacrosschannelor
360degreesapproach.
Analysisofdatageneratedbycustomersandfansiscentraltocurrentandfuture
digitalcrosschannelmarketingcampaigns.Howcanartistsandeventproducers
33
constructa360degreesimage oftheircustomersandfans?Andwhatdataare
themostvaluableinordertopersonalizemessages?Howtomakethecustomeror
34
fanthecenterofattention?Bigdata willhelp.Bigdatameansmoredata,it
spawnsamuchwidervarietyofdatathantheconventionaldatabaseisableto
handle.
Inordertoestablishaproper360degreesimageofthefanorcustomer,artistand
eventproducersmustcreateanunderstandingofthehabits,preferencesandreal
timebehaviorofthefanorcustomer.Forinstance,peoplewhovisitStarbucksona
dailybasiscanbeidentiedbytheircheck-ins(andmaybeevenbytheirorders).The
35
FacebookOpenGraph datashowtheirhabits.Ishe/shearegularjogger?Does
he/shestrictlyreadliteratureofthesciencectionvariety?WhatDJsorartistsdoes
he/shelistentoviaSpotify?Itisthesedatathatconstitutea360degreesproleof
thefanorcustomer.
33
Seeillustration.
Hofstee,G.,Doeland,D.(2013)Bigdataisnotsciencection.Informationsourcedon12January2015:
http://www.vananaloognaardigitaal.nu/big-data-is-geen-toekomstmuziek-2
35
OpenGraphwasinventedbyFacebookin2010,mostlytoestablishabetterintegrationbetweenwebsitesandFacebook.In
practice,itturnedoutthatlinksofwebsitespostedonFacebookcouldbecomeso-calledrichgraphs.
34
Wehavebeendiscussingacontinuousstreamofconsumerdatathatkeeppilingup.
Howtoutilizethesedata?Actually,theyrepresentthedigitalequivalentofgold,the
pointistoapplythemisaclevermannerinordertobenetfromthem.Sofar,the
conceptofbigdatahasbeenratherabstract,soherefollowvariousexamplesof
businesspracticesthatillustratethepracticalvalueofbigdata.
Producersoffansandconsumercommoditiesmonitorsocialmediasuch
asFacebookandTwitterinordertogaininsightintobehavior,preferences
andexperiencesoffansandcustomers.
Manufacturesmonitorsocialmedia,however,theiraimsdierfromthe
marketingmanagersobjectives.Theyareafterquestionsconcerning
customersupport.
Financialservicesusethedatageneratedbytheinteractionwiththeir
clientstopositiontheirprincipalsinbettertunedsegments.Thisenables
nancialservicestocreateacontinuouslymorerelevantandrened
tender.
Advertisingandmarketingagenciesfollowconversationsonsocialmedia
inordertohaveabetterunderstandingofcampaignsandpromotional
activities.
Insurancecompaniesusedataanalysistodistinguishwhatrequestsfor
hazardinsurancecanbehonoredrightawayandwhichneedtobe
validated.
Hospitalsanalyzemedicaldataandpersonallesofpatients,sotheycan
activelyassisttheindividualinpreventingailmentordisease,andindoing
solimitthedurationandcostsofhospitalaccommodation.
Companiesaredevelopinginformationproductsthatcollectandcross
referencedatainordertooerattractivesuggestionsandmore
successfulcouponprograms.
Governmentsusedatatodevelopnewservicesatnational,provincialand
municipallevel.
Sportsclubsandeventorganizersusedatatomanageticketsalesand
evenstrategy.
Strategy
Itistimetoformulateastrategy.Thestrategymustaccommodatetheharvestingof
alltypesofdata.Selectwhichgroupsyouwanttoservice,whoyouwantasyour
collaboratorandhowyouwanttocollaborate,andinwhichmicro-ecosystemsyou
wanttobepresent.Developnewttingproducts,onlineservicesandalluring
tactics.Allthisrequirescreativity.Accommodateyourbusinessmodel(moreonthat
inthefollowingchapter)andaddnewsourcesofrevenue.Thusyounotjusttakethe
leadvis--visthecompetitionordierentmarketfactions,youstimulateyour
organizationtoinnovate,andtoreachandretain(new)fansorcustomers.The
adviceis:reallybuildarelationshipwithfansandcustomers,andpositionthemat
thecenterofyourattention.
Furthermore,theartistoreventproducerhastobeawarethatthecontentdenes
yourexistence;thatyouoerafunction;andthatyourdataisavailableonline.
FormulatingasolidstrategyyouhavetoconsidertheDLCCIprinciple:
Devices
Landscape
Content
Connection
Information
Theartistsoreventproducersthatdevelopacorrectstrategyhavetheupperhand.
Thecorrectstrategyisbasedontherightuserexperienceattherighttime,on
procuringasignicantplacewithintheecosystem,onprocessesthattseamlessly
andextractfromvarioussources.Thepartiesthatenablethefanorcustomerto
havetheoptimumexperienceinrelationtotheutilizedchannelordevice,andthat
areabletocorrelateandanalyzethedatainarelevantfashion,willmaximizetheir
prots.Inthefollowingchapterspracticalinsightswillhelpyougetstartedand
36
explainhowtogoaboutthesemantic designofthenetworksoittransformsintoa
microecosystemwithinthemacrointernetecosystem.
36
Semantic=relatingtomeaning.Thethumbnaildenitionofsemanticnetworkwouldbe:anetworkofcorrelations.
5.Thebusinessmodelexamined
Presently,internetandsocialmediaareoftenviewedasthenewremedytowinfans
andclients,toincreaseturnoverandtoraisethebrandawareness.Inrecentyears
manycompanies,organizationsandbrandshaveincreasinglyinvestedindigital
presence.Manyofthosepromptlypointoutthatthispresencedeliveredlowyields
athighcosts,exceptpossiblybrandawareness.Thebusinessmodelisnot
addressedatall.
Aspointedoutinthepreviouschapter,themusicandentertainmentindustryhas
37
changed dramaticallyinrecentyearsduetotheintroductionofdigitaltools.Anew
dynamichasevolved,resultinginnewparadigmsthatdeterminewhetheranartist,
festivaloreventissuccessfulornot.Oneofthosecriticalnewrulesisthe
applicationofdirectdigitalmedia.WithinEDManditsindustry,thedisruptionof
marketing,communication,salesandinnovationhappensatastaggeringpace.
Therealityof24/7/365connectivityenablesartistsandfestival/eventproducers,
moresothaneverbefore,tomaintainadirectrelationshipwiththefansorclient.
Digitalchannels,likewebsites,onlinecampaigns,blogs,socialmediaandmobile
devicesoerthemostexible,eectiveandscalablemeanstoestablishthese
relations.However,artistsandfestival/eventproducershavetoupholdthisnew
paradigm.Thebusinessmodelreallyhaschanged.
Inoldstylecontact,artistsandproducersconcentrateongettingexposureata
limitednumberofkeychannels(i.e.certainmagazinesorradiostations);theyoptfor
aselectivepresence.Thenewparadigmdemandscontinuouspresenceonall
relevantchannels.Afterall,fansandclientsdeterminewhen,towhatextentandin
whatmannertheycontactyou,theartistoreventproducer.Fortherecord,inthis
chapteraspointedoutearlierartistsareperceivedascompanies.Whatisthe
(new)businessmodeloftheentertainmentandmusicindustry?Whatdoesthis
entail?Whatistheartistsvalueproposition(hisaddedvalue)intheworldofEDM?
37
Hofstee,G.,Doeland,D.(2013)Hetveranderdebusinessmodelvandemuziekindustrieenhaarkansen(Thetransformed
businessmodel:themusicindustryanditsopportunities).Informationsourcedon12February2015:
http://www.vananaloognaardigitaal.nu/het-veranderdebusinessmodel-van-de-muziekindustrie-en-haar-kansen/
Businessmodel
Therightbusinessmodelfocusesontheproductsvaluetothefanorclient;noton
theproductassuch.Forexample,afanorclientisnotinterestedinsolarpanels,but
inthebenetstheybring.
38
ThebookBusinessModelGeneration describesthetermbusinessmodelas
follows:abusinessmodeldescribesthecentralideaofhowanorganization
creates,deliversandretainsvalue.Itsconceptmustberelevanttoandeasyto
graspbyconsumers,withoutoversimplifyingthemannerinwhichthecompany
functions.
ThebookintroducesthebusinessmodelCanvas.Thismodeltakesuponepageand
describesinninemodulesthelogicofacompanysbusinessstrategy.Centraltothe
Canvasmodelisthevalueproposition:adescriptionoftheclusterofproductsand
servicesthatcreatevaluetoaspecicsegmentofclients.Thevaluepropositionis
thesolutiontoaproblemoftheclientorprovidesforarequirementoftheclient.
Theyarethebenetsthecompanysuppliestoitsclients.Somevaluepropositions
areofaninnovativenature.Othersaligntowhatthemarkethastooer,albeitwith
addedcharacteristicsandattributes.Subsequently,theeightremainingaspectsare
lledoutandtypiedaroundthecentralaspect,thevalueproposition.
Valueproposition
Manyartistorproducersoffestivalsandeventsuseavaluepropositionwhich
essenceis:Weprovidemusic,afestivaloranevent,andweaddabitofsupport,in
exchangeforaslightlybettermargin.Theyoftenlackgenuineinterestintheir
supportersorclients.Allwaswell,untiltheinternetreareditsheadandsocialmedia
becameestablished.Newcompetitorshaveenteredthemarket,bringingnewand
leanbusinessmodels.Moreover,anewtypeoffanorclienthasemerged:always
connected,wellinformed,andmoreabletoselectandchoose.Fansandclients
havebecomemoreassertiveandlessgullible.Theydemandtransparencyandclaim
personalcontactwiththeiridolorprovider.
38
Osterwalder,A.(2014).BusinessModelGeneration.AlphenaanDenRijn,TheNetherlands:Kluwer.
39
OnMarketingOnline (aDutchmarketingblog),MarkHedemaexpoundsfour
challengestocompaniesinformulatinganappealingpropositionthathasactual
valuefortheirclients.Hesuggeststhat:
Companieshaveinsucientunderstandingofwhatavaluepropositionis,
letaloneuseanadequatevalueproposition;
Companieshaveinsucientunderstandingoftheclientsvalueandhis(or
her)needs;
Companiesworkfromanoutdatedpropositionthatusedtobesuccessful
yetisnolongertting;
Companiescompletelyrejectformulatinganall-encompassingandclear-cut
valueproposition.
Intodaysdigitalrealm,yourvaluepropositionasanartistoranevent/festival
producermustincludeandexpressthefans(orclients)completeexperience.It
impliesthatavaluepropositioncannolongerbelimitedtomarketingorsales,but
hastobesupportedbytheentireorganization,bothmanagementaswellasshop
oor.Anadequatevaluepropositionisbasedondetailedknowledgeofthefanor
client.Besidesbusinesslikeandrationalknowledge,thisincludesknowledgeofa
personalandemotionalnature.Whoarethedecisionmakersandthearbitersof
taste?Whatcatchestheirattention?Whatexcitesthem?Whatlightstheirre?
Thevaluepropositionisoftenconfusedwithauniquesellingpoint;amissionand
visionstatement;anelevatorpitch;amarketingmessage;orsimplyusedasa
dierentwordforproductorservice.However,avaluepropositionismuchmore
thananyofthese.Aproperlyformulatedvaluepropositionincludesthefollowing
aspects:
Why?WhatdoIbelievein?Whatsetsmeapart?
How?Experiencesandperceptionsthataredeliveredtofansandclients;
What?Thesumtotalofcontent,productand/orservicesonoer;
When?Mannerandmomentofcompany-inducedinteractionbetweenyou
andyourfansorclients.
39
Medema,H.(2014)Zobenjevanwaardevoorjeklant(Thismakesyouvaluabletoyourclient).Informationsourcedon28
January2014:http://www.marketingonline.nl/blog/zo-ben-je-van-waarde-voor-je-klant
Outsidein
Thefoundationofeverybusinessstrategyislookingandthinkingoutsidein:
empathizewiththefanorclient.Stepintothefansorclientsshoesandseethe
worldfromhis(orher)perspective.Whoisyourclientreallyandwhatarehisorher
values?Thinkingabouttheclientfromtheclientspointofviewhelpstoformulate
clientvalues,whichcanbeusedtoassesswhatdierentiatesyoufromthe
competition.
40
TheBusinessModelCanvas,developedbyBusinessmodelsInc. isalsoknown
asOsterwaldersbusinessmodel.Itisatoolthathelpstoestablishavalue
proposition.Addingtheselectedbusinessstrategy,inordertodierentiateyour
companyfromthecompetition,completesthemodel.
Thecanvasispredominantlyfocusedonwhat:thematerializationofthestrategy,
thereasonwhyacompany,organizationorbrandexists.Intheoutsidein
approach,thewhatiswhatitisallaboutforthefanorclient.
Everyenterprisehasabusinessmodel,evenifitisnotawareofhavingone.A
companysbusinessmodelincludesanumberofessentialfunctions:
Whoarethepotentialclients?Whatistheintendedgroupofcustomers?
Whatdoweoertheclients?Whatistheproposition?
Howwillwedelivertheproposition?Whatisourmarketingstrategy?This
accomplishestheproposition!
Howmuch?Howarewemakingmoneyviatheproposition?Whatarethe
costsandhowmuchwillwesell?
Thebusinessmodellaysoutthisidea:who(i.e.theintendedgroupofclients)
providestheturnover,how(i.e.theaccomplishment)determinescost,andwhat
(i.e.themarketingstrategyandproposition)makesfortheprot(turnoverminus
cost).Thebusinessmodeldenoteswhatvaluethecompanycreatesforthefanor
client,howitcreatesthatvalue,andtowhatextentitcancornerthemarketand
claimitsshareofthevalue,formulatingaprojectionofitsprotability.
40
Seetheillustration:Hofstee,G.,Doeland,D.(2013)vanAanaloognaarDigitaal.nudedigitaleverandering(ondigital
transformation).Amsterdam,TheNetherlands:DDMCA.
Income(revenue)model
Theincomemodelispartofthebusinessmodel.Asoftwaresuppliercanchargefor
itemssold,pertimeunitofuse,orsimplyhand-outhisproductforfreeandgenerate
revenuefromadvertisingorconsultancy.Agenericproductoersmanywaysto
raiseprot,soyouhavetodecidehowyouwilldierentiatefromthecompetition.
Theincomemodelisnothingmoreandnothinglessthanthewaytherevenuesare
structured.
Thesimplestexampleofanincomemodelcomesfromthesaleofgoods.Entering
thelocalsupermarket,droppingstuinyourshoppingcartandpayingatthe
check-outcounterisanexampleofthesaleofgoods.Youpaymoneyandinreturn
yougetgoodsrightaway.
Hereisanotherexample.Interestedpartiesarefrequentlyoeredtheoptionof
subscriptionatalowerrateperitemasopposedtoregularone-opurchases.An
annualsubscriptionmeansasteadysourceofrevenueforthesellerandadiscount
forthebuyer,plusguaranteedsupplyandconvenienceasaddedbenets.
Andhereisonemoreexampleofanincomemodel,theconsumemodel.Inthe
consumemodel,theuserischargedasmallerpriceasheconsumesmoreofthe
productorservice.Itusuallyentailsastartingratethatdecreaseswithincreased
use,inordertoencourageconsumption.Someexamplesaretheuseofwater,gas
andelectricityathome,andcallingfromaphonebox.
Oeringadvertisingspaceisanexampleoftheadvertisingmodel.Itisawell-known
sourceofincomefordailypapersandmagazines,andforsportingclubsthatdisplay
billboardsaroundthegrounds.Theadvertisingmodelisfrequentlyappliedinthe
mediasector.
Forafestivalorevent,themostimportantrevenuestreamsare:
Ticketsales
Merchandising
Contentlicensing(radio,TV,internet,IP-TV,(subscription)videoondemand,
musicservices,videoservices)
Mediavalue(advertising,sponsoring,endorsements,brandintegrations)
Additionalservices(membership,lockers,etc.)
Data
Abusinessmodelmustbeplainandsimple.Itshouldtakenomorethan20minutes
towriteallkeyelementsdown.Thesekeyelementsare:
Theproblemthatisbeingtackled
Intendedgroupsoffans,clientsandusers
Theuniquevalueproposition
Thesolution
Distributionandcommunicationchannels
Streamsofrevenue
Coststructure
Numbers,metricsandanalytics
Theunfairadvantage(whichcannotbecopiedorbought)
Contentisvitalstrength
Text,audio,videoandillustrationsarethelifebloodofinternetandmayeven
determineitsvitalstrength.Withoutcontent,internetwouldbeanempty
technology.Blogsandonlinemagazines,streamingservicesformusicandvideo,
downloadservices,onlineradio,applications,socialchannelsandsoon,itis
impossibletoseparatetheinternetfromitscontent.
Theartistorevent/festivalproducerisactuallyacontentcreator.Everyday,amass
ofcontentisproduced,oftenunsolicited.Thiscontentcanbecuratedand
(re)distributedinlimitlesswaysviatheinternet.
Thecontentgeneratedbyartistsandeventproducers,whetherornotlive,gives
themauniqueanddistinctivecapacity.Thiscontentismostlyentertainment,
infotainmentandmusic.Apartfromthefestivalprogram,artistsandeventproducers
cancreatemoreuniqueandrelevantcontentthatcanbedistributedonline.Because
fansareabletoconsumethecontentviamultiplechannels,thecontentmessageis
ampliedandthusstrengthensthebondwiththefan.Moreover,thecontentis
availableforcross-mediaexploitationandcanbeappliedtoanewincomemodel.
Theinformationthatcanbedistilledfromthefanssocialmediabehaviorleadstoan
understandingthatinturninspiresnewproductsandincomemodels.
Contentisavailableeverywhere,anytime,inmanydierentforms.Itisanintegral
partofthedigitaleconomyandgeneratessignicantrevenuesforallsortsof
internetcompanies(searchengines,socialmedia,onlineretailanddistribution)and
providers.Thedatacollectedbythesecompaniesmustbestored,analyzedand
relatedtotheartistsoreventproducersdata(i.e.information).Contentthus
generatessupplementarydataaboutyourfanandhelpstobetterunderstandhimor
her.
Everythingisatimeline
Socialmediaarewebsites(networks)wherepeoplecommunicatefreely,shareand
discussinformationandtalkabouttheirlives,aidedbyamultimediamixoftext,
photos,videoandaudio.Individualsandgroupscreatethecontentofthese
websites.Itsdistributionisdependentontherelationshipbetweentheindividuals,
whichdeterminesthedegreeofinteractionandthetypeofconversation.
Overthelasttwodecadesadenselypopulatedandmulti-variedsocialmedia
landscapehasemerged.Itincludes,amongotherthings,blogsandmicroblogs,
forumsandmessageboards,communitiesofdigitalfriends(Facebook,Google+),
wikis(Wikipedia),virtualWorlds(SecondLife),socialbookmarking(Reddit,Digg),
digitalstorytellingandscrapbooking,sitesforsharingmusicandvideo(Pinterest,
Instagram,YouTube),andpodcastportals.
Manyofthesesiteshavebecomehouseholdnames,likeFacebook,Instagram,
Snapchat,Twitter,YouTube,andmore.Allthesenetworkscompriseatimeline.In
fact,theyareatimeline.Themostcurrentandrelevantitemisshownrst.The
onlinedomainoftheartistoreventproducer,hiswebsite,isalsobeginningtoshow
networkcharacteristicsviathemultimediamixoftest,photos,videoandaudio.
Moreover,thedomainexhibitsanincreaseduseforinteractionandfandialog.It
createsatimeline.
Fromproducttonetwork
Thetrendisforsocialmediaandtheinternettomergeandbecomemoreandmore
intertwined.Itisnolongersocialmedia,itisthesocialweb.Smartphonesaretaking
overastherstchoice-deviceforcommunication,whetheritisemail,textmessages
ormessagingviaanWhatsApp-typeservice.
Intermsofactivitiesemployedbyusers,socialnetworksbreakdownroughlyinto
fourmaincategories:
Publishing(blogplatforms)
Sharing(platformsformusic,videoandphotos)
Communicating(thevariousplatformfordigitalfriendsandcommunities)
Networking(thebusinessequivalentofthesocialnetwork)
Herearesomeexamples:
Publishing:Blogs(suchasBlogger,LiveJournal,TypePad,Tumblrand
WordPress)andwikis(suchasWikipediaandWikia)
Sharing:Music,photosandvideos(Flickr,Pinterest,YouTube,Vimeo,
Dailymotion,Deezer,Spotify,SoundCloud),apps(Instagram,Vine)and
communities(Behance,TheFancy)
Communicating:desktop-basedplatforms(Quora,Reddit,Github,Disqus,
Skype,SinaWeibo,TencentWeibo)andmobileapps(WhatsApp,Snapchat,
FacebookMessenger,BlackBerryMessenger,Kik,MessageMe,Telegram,
Pheed,Viber,Nimbuzz,Hike)
Networking:business-to-consumer(Tagged,Nextdoor,Qzone,vKontakte,
RenRen,Mixi),business-to-business(LinkedIn,Viadeo,Xing),dating(Badoo,
OKcupid)andthemobileequivalents(HappnandTinder)
InanovercrowdedmarketofDJs,artists,festivalsandevents,innovative(original
andunique)andauthenticcontentiscrucialforgrabbingandmaintainingthe
attentionoffanswholingerinthesocialweb.
Theartistoreventproducerisabrand.Hewantstocatchthefansandclients
attentioninanorganicfashion.Thisisachievedbyfeeding,onadailybasis,thefans
insatiableappetiteforrelevantcontent,likenewsupdates,up-to-datefeatures,
socialmediaandvideo.Asportsbrandforexamplenolongerhasaneedfor
advertising.Whenthebrandproducesrelevantcontentonnutrition,physical
exerciseandhealthandsharesthiscontentonsocialmedia,theintendedgroupof
customerswilltryitoutandcomebackformoreadvice.Possibly,itwillfollowitup
bypurchasingone(ormore)ofthebrandsproducts.Inthisway,thefocusshifts
fromyourproducttoyournetwork.
Brandsneedtocreatetheirowncontent
Brandsthathavesomeknowledgeofandexperiencewiththedigitalrealmrealize
thatrelevantandauthenticcontentisthefutureofadvertisingandmarketing.Thatis
whyleadingbrandsorganizecontentcreationin-house,asopposedtooutsourcing
ittooutsideparties.Theiraimistowintheconsumersoftheircontentoverasfuture
clients.
RedBullisneexampleofthistrend.Thesoftdrinkproducerhasredeneditselfas
amediacompanyandintheprocesscreateditsownnetwork.Why?Toexpressthe
qualityanddepthofthebrand.RedBullscontentvaries,fromattemptsatbreaking
recordsforbikes,mopeds,motors,cars,planestoskydivingfromspace.RedBullis
virtuallyamediacompany,creatorofitsownnetworkwithintheinternetecosystem,
thatcompeteswithvarioustraditionalradioandTVbroadcasters.Ithasshiftedits
attentionfromitsproducttoitsnetwork.
Protcenter
Inordertowinoverthefanandconnecthim(orher)toyourcompany,allinthe
digitalrealm,onehastosetupanewbusinessunit.Thisunitisat,smallandaimed
atcreatingnewopportunitiesforsourcesofincomeforthecompany,organizationor
brand.Itshouldactuallybemanagedlikeastart-upcompany;itshouldhavetimeto
learnhowtodealwithdigitalinteractionwithfansandclients.Howtoconnectto
someonelivingintheappeconomy?Howtoconnecttosomeonelivinghis(orher)
lifeontheinternetandsocialmedia?Aretheythesamepeople?Ordierent?In
whatwayaretheydierent?Whatistheplantointegratethesekindsofcontacts
intoyournetwork?
Thedatageneratedbyyourowninternetecosystemcanberegardedasabusiness
model,applicabletoOsterwaldersBusinessModelCanvas.Sincethisbusinessunit
isrunlikeafree-standingcompany,itshouldworkwithitsownprot&loss
41
calculation.Ithastobemanagedlikeaprotcenter .Inthenextchaptermorewill
followonhowtoorganizethebusinessunitforcontentcreation.
41
Aprotcenterisanelementofanorganization.Itisusedforreportingpurposestocontrastcoststoreturn.Thisallowsfor
thecomparisonofvariousprotcenters,somarkingoutpossiblebestpractices,whichcanbeannexed.Protcentersarethe
departmentofthecompanythatareresponsibleforthesalesandturnovergures,aswellasthepairedcosts.
TheartistorDJ
Sofarwehavediscussedthenewbusinessmodelforproducersofeventsand
festivals.WhataboutartistsandDJs?Experiencelearnsthatintheentertainment
industryandthemusicbusinessinparticular,innovationstakealongtimetoland.
Oneofthereasonsisthatchallengersofthestatusquoareeverdependentonthe
establishment.Thisstateofaairsisillustratedbythelackofurgencytore-evaluate
contentorassesthevitalityofcurrentbusinesspractices.
Nottoolongago,recordcompaniesandmusicpublishersdominatedtheworldof
musicanddictateditspractice.Musicianswerereliantonthemfornancing,
marketinganddistribution.Thosedaysareover.Self-publishedcontentismore
powerfulthanmanyrealize.Itcanbethelaunchingpadforacareerinmusic(or
writing,orcinema,etc.).Thekeyissueistocreateafanbase,whichismore
importantthanmakingmoneyfromtheself-publishedcontent.Inthemusicindustry
oftodayitisstillnotclearwhoisresponsiblefor,orhastoinvesttimeandmoneyin
theinternetstrategyoftheartist.Allpartiesinvolvedrecordcompanies,music
publishers,bookingagenciespointattheirneighbor,sonothingreallyhappens.So
whatistheartistsorDJsnewbusinessmodel?
Startahouseofcopyrights.Ahouseofcopyrightsisalegalentity(private
limitedcompanyorfoundation)thatowns,administersandexploitsthe
artistsintellectualproperties.Itmakesiteasiertonegotiatedealswith
organizationsinthemusicbusiness,suchasrecordcompanies,music
publishers,bookingagentsandthelike.Itsimpliestheapplicationand
managementoftheartistsinternetecosystem.
Oneofthehouseofcopyrightsobjectivesistheexploitationoftheartists
rights.Atthecloseofthenancialyear,theorganizationwilltakestockofthe
results-whattherightshaveyieldedandpayouttheshareinprots
accordingtoagreementswithpartiesinvolved,forexamplemanager,record
companyormusicpublisher.
Ahouseofcopyrightsisaveritable360-degreescooperation;afterall,itrepresents
acommoninterest.Moreover,andthisiscontrarytothesituationofold,itisnota
defensivecollaboration.Before,thestandardcontractimpliedthattherecord
companyownedthecopyrights.Itlimiteditsriskandprotecteditsinvestment.
Thisnew360-degreescooperationiscurrentlythejuridicalsolutionforthechanges
internethaspresseduponthemusicbusiness.Decreasingrevenuesfromrecord
salesandpay-per-downloadsobligetheartistorDJtolookfornewincomemodels
withinthebusinessmodel.Furthermore,thevaluepropositionmustbethefocus,
nottheincomemodel.Artistsareawarethatinternetgivesthemendless
opportunitiestoconnectwiththeirfans.Theywanttoadopttothenewdynamicof
themusicbusiness.
Thisdynamicseesborderlinesdissolveandmusiccompaniesenteringaterritory
thatusedtobetheprofessionalareaofcomplementarybusinesses.Inotherwords,
therecordcompanyisnolongerinpoleposition.Thebookingagencyisontherise,
sincethebulkoftheartistsrevenuescomefromliveperforming.However,the
360-degreescontractfrequentlyfailstodeliveronitspromise.Recordlabels,aswell
asmanybookingagencies,aresimplynotabletofullyexploitthecopyrightsorwork
intandemwithoutsideparties.Releasingandmarketingmusicwhichisanincome
model,notavaluepropositionistherecordlabelscorebusinessandtoppriority.
FanswanttobeclosetoanartistorDJ.Theywanttodecidewhether,andhow
much,theypayformusic,aliveperformanceormerchandise.Whoownsthe
artistsorDJsfans?Nottherecordcompanynorthebookingagency;notthe
managementnorFacebook,actually.Obviously,itstheartistorDJ.Thefan
connectionishisonlytangibleasset.
AlthoughtheDJorartisthasmoredataonhis(potential)fansandfollowersthan
everbefore,thevastmajorityofthesedataisnotstoredorvalued.Asaresult,the
artistorDJmissesoutonopportunitiestoextendhisfanscope.Andletsnotforget,
thedirectcontactwiththefan.Thus,theartistoverlookswhatcouldverywellbethe
cruxofthematter,whichisthemonetaryvaluehisfansrepresent.Afterall,thefan
baserepresentsnancialvalue,whichcanbeaddedtothebalancesheet.Thisis
thenewparadigm.
TheartistorDJshouldcollectonlydatathatreallyproducerelevantknowledgeor
resultintotransactions.Onlythencanthedatabeaddedtothebalancesheetas
monetaryvalue.Often,thesedataareattheartistsorDJsdisposal,yetheorhis
managementhasnotguredouthowtoexploittheinformation.Indeed,thepresent
dayartistoreventproducercollects,withoutrealizingit,anextensivevolumeof
fan-relateddata,producedbyhisemaildatabase,Facebookfriends,andfriends
andfollowersonvariouschannelslikeTwitter.
TheartistorDJcanstartadirectrelationwithfriendsandfollowers,who,inturn,
canberecruitedtoraisenewfriendsandfollowers.Thishelpstoexpandthescope
ofnewsitemsonupcomingperformances,merchandiseandmusic.Moreover,the
connectionsprovideendorsementandsponsoroptions,duetothelinksthatwill
emergefromcross-referencingthedatabase:thedatabaseisamapoftheartists
audience.Informationofthiskindwillhelptonegotiateafavorablecontractwith
recordlabels,musicpublishers,bookingagencies,eventproducers,brands,
organizationsandcompanies.
Forfans,thecementthatholdstheartist-fanrelationtogetheristhemusic,thestory
andthepersonalityoftheartistorDJ.Infact,theartistorDJhimselfisthe
intellectualpropertyviahismusic.He(she)makestheconnectionwiththefans,
whichsubsequentlyresultsinthedatathattheartistorDJcancapitalizeon.Inthe
right360-degreescollaboration,themanageristheartistsbusinesspartnerwho
operatesinafullrightsmanagementbusinessmodelthatsupposestheartistorDJ
asabrand.
AlltheartistsorDJsrights,likepersonalityrights,trademarkrights,relatedrights,
copyrightsandotherrights,aretheaccessinthemanagersarsenalinnegotiatinga
favorablecontractforhisclientorbusinesspartner.Theserightsarepartofthe
houseofrightsthatisadministeredbytheartistsorDJsmanagement.Fromthis
houseofrights-construction,youcanlicensetherightsperareatoanoperatorwho
isbestathischoseneld.Inthisway,recordslabels,musicpublishers,booking
agencies,eventproducers,commercialsponsorraisersandmerchandisershave
becomeserviceproviders.
BusinessModelArtist(DJ)
Inthenewbusinessmodel,themostimportantrevenuestreamsfortheartistorDJ
are:
Contentlicensingtoradio,TV,internet,IP-TV,video-on-demand,
subscriptionvideo-on-demand,musicservices,videoservices;
Concertticketsales;
Saleofmerchandise;
Mediavalue(advertising,sponsoring,endorsements,brandintegrations);
Data
Obviously,manyadditionalincomemodelsareconceivable.Forinspiration,theblog
42
oftheFutureofMusicCoalition oersaselection.TheFutureofMusicCoalition
explainstheroutingofthecashow;itdoesnotdescribeindetailthenesseofthe
incomemodels.
Content=relation=information
Thecontent=relation=informationprincipleisthefoundationofthevalue
propositionoftheentertainmentandmusicindustrysbusinessmodel.Theparties
(i.e.artistsandproducers)thatfurnishtheoptimum24/7/365experienceforthefans
orclient,andareabletoreadoutthedataandusethesedatatostrengthenthe
relationship,willeventuallyreaptherewards.ThepaperRadiowillneverbethe
sameagainexplainstheprincipleveryprecisely.
WilbertMutsaers,directorbroadcastingofDutchpublicradiostation3FM,writesin
43
2012onDutchpublicradio-aliatedmusicblog,3voor12 :
Radio=Visualradio=Socialradio=Socialaudio=Socialvideostream=
trans-mediaplatform=Mediabrand.Theusercanchoose.Theseassortedoptions
enablethecontentproducerwhoworkswithapotentandtransparentradio
propositiontoprolehimselfasawell-roundedmediabrand,cangoanywherehis
audienceis,andtransposehiscontenttotrans-mediaplatforms.
42
FutureofMusicCoalition(2014).42revenuestreams.Informationsourcedon16February2015:
http://money.futureofmusic.org/40-revenue-streams/
43
Mutsaers,W.(2012)Radioligtnietaanhetinfuus(Radioisnotyetdead).Informationsourcedon12December2012:
http://3voor12.vpro.nl/nieuws/december/Wilbert-Mutsears--3FM---DEAd-and-gone-radio-gaga.html
Mutsaersconrmsmythesisthatthecontentofradiobroadcastingstationsmustbe
distributedinadecentralizedmanner;theconnectionwithfansorclients(in
Mutsaerscasethelistener)comesrstandforemost.ParaphrasingMutsaers
postulation,wecanstatethattheartistoreventproducerwhohasapotentand
transparentvaluepropositionisenabledbytheendlessopportunitiesofthedigital
worldtoprolehimself(orhisevent,incaseoftheeventproducer)asa
well-roundedmediabrand.Thisimpliesithastobewhereverhisaudienceis.
Initsbroadestsense,aninternetecosystemisoftendepictedasthesumtotalof
interactionbetweenindustry,brand,product,dataandpeople.Itincorporatesall
stakeholders:partners,suppliers,competitors,clients,analysts,commentators,
journalists,bloggers,prospectsandindividualfansorclients.Thetechnical
infrastructureandthefunctionssupportedbythenetworkarealsopartofthe
internetecosystem.Byregardingtheinternetecosystemasabusinessecosystem,
oneactuallyseestheemergenceofnewvaluemodelsintherelationshipsofall
stakeholdersintheinternetecosystem.
Uptonow,yourgreatestvalueasanartistoreventproducerwasprobablyyour
brand.AccordingtoWikipedia,brandvalue(orbrandequity)isthemonetaryvalue
thatthebranditselfrepresents.Usually,brandvalueisidentiedwithfuturecash
owgeneratedbythebrand.Yourbrandisnot(yet)includedonthebalancesheet.
However,itrepresentsahiddenvalue,thegoodwill.
Theliteralmeaningofgoodwillissympathyorbenevolence.Itisusedintheworld
ofnancetoindicatethecompaniesimmaterialassets.Goodwillusuallyonly
becomesrelevantinsituationssuchassaleortake-overofthecompanyandis
regardedintheworldofnanceastheaddedvalueofacompany,ontopofitsnet
value.Thusgoodwillrepresentsfuturerevenuesofcompanies,organizationsor
brands;ithastobeaddedtothebalancesheet,yetexistsintermsofknow-how,
customers,brands,humanresourcesandsuchlike.
Socontentcementstherelationshipwithfansorclients.Itsuppliestheinformation
thatenablesyoutomakestrategicdecisionsandhelptocapitalizeonvarious
incomemodels.Thebusinessmodeloftheentertainmentandmusicbusiness,
content=relation=informationplusitsmatchingincomemodels,hasthustaken
shapeandwillbethestartingpoint.Nextisthechallengeofhowtostructurethe
teamthatsupportsyou,theartistoreventproducer.Thisisthetopicofthefollowing
chapter.
6.Howtoorganizeyourorganization?
Inthischapterweviewtheorganizationinwidescreen.Itisaformofcollaboration
inwhichtheparticipantsdeliberatelyperformcertainactions,usingvarioustools.An
organizationisnotthesameasacompany.Acompanyisanorganizationthat
provides(digital)productsorservicestothirdparties,personsorcompanies.So,a
companyisanorganization,butanorganizationisnotalwaysacompany.Thiscan
muddythewater.Inestablishinganorganization,questionslike:Whyarewedoing
whatwedo?Howarewerealizingouraims?Whatexactlyisitthatwewanttodo?
willbeaddressed.Byrestructuringtheirorganization,DJsandeventproducershave
toevaluatetheirbusinessmodelasdiscussedinthepreviouschapter.
Thedigitalworldistheworld
Theworldiswhatitis.Itisbothoandonline.Thedigitalworldisjustpartofthe
world.Brandscanonlybeasuccesswhentheyaddvaluetothedailylivesoffans
orclients,establisharelationshipwithfansorclients,andwinthetrustoffansor
clients.Theinternetecosystemistheplacewherethistrustiswonorlost.
ThedigitalworldfacilitatesaslewofnewoptionsforDJsandevent/festival
producers;itsimportancetotheirsuccesswillincreasewithtime.Amsterdamisan
exampleofthisphenomenon,itsconglomerateofcreativeindustry,gamingindustry,
musicindustryandfestivalindustrythrives.Itsworkingenvironmentisprofoundly
shapedbythedigitalworld.Expertiseisexchanged,commongroundisdeveloped.
Moreexamples:thegraphicindustryinrelationto3D-printing;bigdatacreatingnew
opportunities.
Theup-to-dateorganizationoftheDJoreventproducermustadapttoprotfrom
thesenewopportunities.Thisdoesnotcomeeasy.Inestablishinganorganization,
questionslike:Whyarewedoingwhatwedo?Howarewerealizingouraims?What
exactlyisitthatwewanttodo?willbeaddressed.Byrestructuringtheir
organization,DJsandeventproducershavetoevaluatetheirbusinessmodelas
discussedinthepreviouschapter.
Organization
Inthischapterweviewtheorganizationinwidescreen.Itisaformofcollaboration
inwhichtheparticipantsdeliberatelyperformcertainactions,usingvarioustools.An
organizationisnotthesameasacompany.Acompanyisanorganizationthat
provides(digital)productsorservicestothirdparties,personsorcompanies.Both
theDJplushismanagementaswellastheeventproducerareacompany.An
organizationisnotalwaysacompany,yetacompanyisanorganizationby
denition.
Anorganizationisbynameanentitythatfunctionsasanorganizer.Inthissense,
theorganizationisanactivity.Forexample,inthiscontext:Heisinchargeofthe
organizationofsuchandsuchfestivalorevent.Or:Heisinchargeofsettingupthe
DJtourofsoandso.
Therearemanywaysinwhichanorganizationcanoperateandthatisthetopicof
thischapter.Often,themodusoperandiofanorganizationhascomeaboutinan
organic,non-deliberateway,notastheresultofawellthought-outplanofoperation.
Boththespecicaccommodationofhumanandnon-humanresources,aswellas
thespecicrealizationofbusinessmanagement,isoftenillconsideredwhenthe
organizationofaDJoreventproducerisestablished.Itistheorganizationthatis
transformedintheadaptationtothenewbusinessmodel.Thewaytogoaboutitis
toviewtheorganizationasaplatform.
Businessunit
ItisvitalfortheDJoreventproducertocreateabusinessunitthatisdedicatedto
theorganizationsinvolvementwiththeinternetecosystem;thisbusinessunit
regardstheinternetecosystemasabusinessecosystem.Operatingseparately,it
enablesthecreationofnewvaluemodelsandnewincomemodels.
WhenaDJoreventproducerbecomesactivelyinvolvedwiththeinternet
ecosystem,heorshedoesbesttoregardhisorherselflikeheorsheisaplatform.
Thisplatformcomprisesofhis(her)webenvironmenti.e.thewebsite,social
channels,servicechannels(suchasiTunes,Spotify,Soundcloud,ticketingand
assortede-commercechannels)plustheoinecontextinwhichtheDJperformsor
theeventoccurs.Thebusinessunitthatisresponsiblefortheplatformandits
interactionwiththeinternetecosystemmustbeself-supportingviaearnings
generated.Infact,itmustfunctionasaprotcenter.Toachievethis,anactionplan
mustbeformulated.
Theactionplanisanextensiveelementaldocumentthatformulatesthecrucial
issuesinthedevelopmentofadigitalstrategy.Theactionplandetailsvarious
aspects:
Elaborationoftheresearchresults,pluscalculationoftheeorttoachieve
theseresults,measuredintimeunits;
Therequisitelevelofquality,plustherequiredmeasurestosafeguardthe
quality(qualitycontrol);
Theorganization,includingthepeopledirectlyinvolvedandtheirtime
behavior;
Thecommunicationrequired;
Thedependenciesandrisks,andhowtodealwiththem;
Theprojectsbudget;
Theto-dolist.
Whatplanisagoodplan?
Whatisthesecretofagoodplan?Howdoyoumakeafeasibleplan?Aplanthat
reallyworks?Agoodplandeliversandenergizes.Agoodplanthatworkscanhave
apowerfuleectonthepeoplewhomakeithappen,itslikeadrug
Whatisthepurposeofaplan?
Agoodplanwillhavelostitsfunctionwhentheprojectisnalized.Itsdigitalversion
willrepeatedlyberevisedandadjusted.Why?Becauseitisputintoaction!Theplan
isnotaswiftlydraftedmemo,itrequiresseriouspreparationanddittodedication.
Afterall,itplotsthecoursetheorganizationwillfollowfortheforeseeablefuture.
Realizingtheplan
Thebenetofagoodplanisthatitenablesyoutoturnambitionintoreality.Thatis
theproject.Andthisiswherethesecretofagoodplanlies.Twoinvisible,yet
powerfulforcesaremoreimportantthanwhatevertheplanentails:thereasonfor
existenceandtheinvolvement.Onlywhenthereasonofexistenceofthe
fundamentalconceptandtheinvolvementoftheteamiswarranted,willitbe
possibletomaketheplanworkforanorganization.Collaborationandmutualtrust
areatthecoreofsuccess.
Withoutavalidreasonforexistenceandlackingtheunadulteratedinvolvementofall
participants,thebestofplanswillfailtobecomereality.Botharefundamentalfor
theplantosucceed.
Content
Text,audio,videoandillustrations(photos,infographics)aretheinternetslifeblood
andmayevendetermineitsvitality.Withoutcontent,theinternetwouldbeanempty,
superuoustechnology.Blogsandonlinemagazines,streamingservicesforvideo
andaudio,downloadservices,onlineradio,applications,socialchannels,andsoon,
constitutecontent.Internetandcontenthavebecomeinseparable.
DJsandeventproducersarecontentproducers.Apartfromthemusicandvideos
theycreate,theeventitselfproducesabarrageofnew(attimesnot-commissioned)
contentbefore,duringandaftertheoccasion.Thiscontentcanbecuratedand
redistributedviatheinternetinnumerousways,thuscreatinganincomemodel.
ThecontentproducedbyaDJ,inalivesituationorotherwise,isuniquetotheDJ
andmakeshimdistinctfromtherestorstandout.Thiscontentusuallyentails
entertainment,infotainmentandmusic.Apartfromfestivalprograms,artistsand
eventproducerscangenerateotherformsofrelevantanduniquecontenttobe
distributedonline.Byoeringthiscontentviamultiplechannels,thecontent
messagebecomesmorepowerfulandthuswillintensifythefanrelation.
Furthermore,thecontentcanbeexploitedcross-mediallyandcommissionedfora
newincomemodel.Theinformationsuppliedbythefanssocialmediabehavior
mayresultinperceptionsthatallowfornewcontentproductsandnewincome
models.Contentnurturesthefan(orclient)relation.
Contentisavailableatanytime,anywhere,invariousforms.Itisanintegralpartof
thedigitaleconomyandgeneratescrucialinformationforallsortsofinternet
companies(searchengines,socialmedia,onlineretailanddistribution)and
technologysuppliers.Thedatacollectedbythesecompaniesmustbestored,
analyzedandreferencedwiththedata(i.e.information)ownedbytheorganization.
Contentgeneratesadditionalfandataandthusamorecompletefanprole.
Inthefuture,fansandclientswillrequiremorefan(orevent)relatedexperiencesand
inspirations;itpropelsthemtotheDJs(orevents)onlineenvironment.Theyounger
generationsoffansandclients,inparticular,expectmorethanahandfulofpostsor
anausteree-commercefunctionality.Inordertoservebothtodaysandtomorrows
fan(orclient),theDJhastosmartenuphisonlinepromotionandsaleschannels.
MostDJonlineenvironmentsarestillstand-alonesilosthatdonotcrossreference
thegenerateddata.After(re)structuringallonlineactivitiesinordertocreate
coherence,eectswillbeeasiertogauge.Theresultsare:morepeaceforthe
organizationandallitsbusinessrelations,plusamoreexibleorganizationthatis
betterequippedtoadapttofuturechangesthatwillsurelycome.Itwillimprovethe
resultsoftheinternetstrategyandsecurethevalueproposition.
Brand
EachDJandeveryeventandfestivalaswellisactuallyabrand,thatis,a
platform.Whattodoinordertorealizestrikingonlinepresenceanddittovalue?For
theDJoperatinginthedigitalworld,properbrandingentails:
TheDJswebsitemustbedetachedfromtherecordcompanyswebsite;it
servesasacentralhubforallinformationandcontent.
TheDJswebsitemustincludeordinarye-commercefacilities,forexamplea
basicwebshopoeringmusic,merchandise,downloadsandticketsfor
sale.
TheDJswebsite,socialchannels,appsandadditionalplatformsmustbe
interconnected.
Pre-ordersarethekeytomaximizingdigitalturnover.Alldigitaland/or
physicalalbumsandsinglesmustbeavailableaspre-orderitems.
Thedistributionofsingleandalbumreleasesviaallrelevantonlineretail
channelsmusthaveglobalcoverage.
LeakingWAVs,MP3sandmixes(DJsets)tobloggers,podcasters,DJs,
radioandjournalists.
AdigitalPRteamthatcontactsinternetradio,podcasters,bloggers,
journalistsandDJsandcompilesonlinepromotionpackages.
ImagesofallMP3andmixreleases.Thesearepresentinthesearchengine
directoriesofGoogle,Yahoo,BingandDuckDuckGoinordertogenerate
trac.
Photosand/orvideosofperformancesandconcerts;documentariesonthe
DJandhis(her)career;clipsoftours;andinteractivewebactivitymustbe
usedtoengage(therelationshipwith)thefan.
Providemobileconvenience.Createamobileapp(foralloperatingsystems:
iOS,Android,WindowsandBlackBerry)thatisfrequentlyupdated,or
remodelthewebsiteandmakeitresponsive,i.e.indiscriminate
functionalityforlaptop,tabletandmobilephone.
OpenaccountsonFacebook,TwitterandYouTubetobolsterfan
engagement.ConsideraccountsonmorerecentchannelssuchasPinterest
andVimeo.
CustomizedbannersonvarioussocialnetworksthatlinktotheDJs
website.
PublishanElectronicPressKit(EPK)withbiography,photosandvideos(for
example,MP3s,clips,minidocumentary,releaseinformationofthe
completediscography,buy-button,infoonairplay,performinghighlights,
upcomingevents,potentialaudiences),thatincludelinkstotheDJsprimary
channels(website,Facebook,Twitter,iTunes,Spotify)andthecorrect
contactinformation.
Createafanbase.Publishasignoneldorincludeasignonbuttonfor
example,foranewsletterandinvitefansandvisitorstosubscribe.
Usetheemaillistforfrequentmailouts;themailoutserviceisequipped
withanautoresponder
AneventcalendarisincludedontheDJswebsite;itcanbecopy-pastedby
thirdparties.
Informationoncollaborationsvis--visstrategicpartnershipsandsponsoring
forcross-promotionreleasesandclientrecruitment.
24/7digitalradiodedicatedtopriorityreleases.Itshouldbeavailabletothe
websiteoftherecordcompany,theDJ,hightracinternetradiodirectories,
plusmusicchannelsofcableandsatelliteservices.Thisradiostationisthe
DJsocialradiostation.
Abasicdigitalplatformforlicensinguserrightsandcopyrightsformovies,
TV,multimediaandadvertisingagencies.Applyingandapprovalshouldtake
upaminimumoftime.Studyoperationalmusiclicenseplatformsfor
referenceandresearchbasicsandbestpractices.
Connected
DJsmustbeandstayconnectedtofansandclients.Toeectthesetof
recommendationslistedabovetheDJmustbeencouragedtoengageproactivelyin
themarketingofhisdigitalbrand.Thatrequiresacamcorder,orasmartphonewith
anaccuratelens,externalharddriveforvideostorage,plustabletorlaptop.These
gadgetsareimperativeforDJswhoaspiretoacrediblecareerinthedigitalmusic
business.Thecostsarenegligibleinrelationtotheprotsthatcanbegeneratedvia
personalcontent.
ForeachDJ,creativityinordertocreateanddistributecontent,andpersonal
commitmenttothefan,arethetoppriorities.Musicianswillhavetotunetheir
strategytothefanrelation.ThisrelationisrootedintheDJspersonality,his(her)
imageandtheextenttowhichheorsheispartialtosharingtheirinnersecrets.The
HolyGrailistopersonalizethefanrelation.Afterall,fanscraveapersonalrelation
withtheobjectoftheiradoration,soitisuptotheDJ(andhismanagement)tobuild
thatrelation,inanyshapeorform.Disregardingthefansappetiteforany
idol-relatedcontentwillresultinlossofturnoverandmissedopportunities.
AnythingthatappliestotheDJisrelevanttotheeventandfestivalproducersas
well.Tofansandclients,theeventorthefestivalisabrand.Simplysubstitutethe
festivaloreventnameforthewordDJinthelistofrecommendationsoutlined
above.
Networkorganization
IftheeventproducerortheDJmanagerstickswithanoutdatedstrategyand
continuestobeself-centered,hewillrunintoproblems:heisnotabletoadaptina
swiftandpro-activefashiontotheshiftingdynamicsofthemusicmarket.Amistake
frequentlymadebyself-centeredorganizationsistofocusexclusivelyoncost
reductionwhensalesaredwindling.Thispracticewillprovideonlytemporaryrelief
thatdelaysthesalesslump.Inthelongrun,thecompanywilllanguishwhenit
refusestorefashionitsbusinessmodelanditsorganizationalstructure.
Rigidlyhierarchicalorganizationsarefadingfromthebusinessplayingeld,thereis
nofuturefortheminthedigitalworld.Pillars,cocoons,silos,powergamesinthe
boardroom,andself-occupiedmanagementlayersthatstieinnovationare
increasinglyathingofthepast.TheDJandeventproducermuststructuretheir
organizationhorizontally.Asolutionthatcanworkmiracles,increasinglypracticed
bycompanies,issimplytocutthetiesbetweenthedirectorsandtheboard.The
generaldirectorandahand-pickedteamofcompanyrepresentativesmanagethe
departments.Thiswillonlyworkbydelegatingtrustandresponsibilitytomiddle
managementandprojectmanagers.
Analternativetothehierarchicalorganizationisthenetworkorganization.Itismade
upofsemi-independententities(modules)thatconnectinanon-hierarchical
fashion;everymodulehasitspersonalrelationtothesurroundings.Thisset-up
comeswithbenets:itcanquicklyrespondtochangesinthesesurroundingsand
questionsfromclients.Themodulesoperateindependently,andarefacilitated,more
sothanmanaged.Networkorganizationsarecharacterizedbyclear-cut
relationshipsbetweenthebidderandthecontractor;(self-managing)teams;
facilitatingmanagement;andmoreknow-howatemployeelevel.Network
organizationsmakedowithfewermanagers.Employeesmanagethemselves,
whetherin(self-managing)teamsornot.
TheDJandhismanagementmustset-uptheirteamasanetworkorganization,
foregoinghierarchicalarrangements.Networksaskforadierentmanagementstyle
withoutformalizedlinks.Notheistheboss,butIaccepthisorherleadershiporI
acceptthatheorsheisresponsibleforaspecictaskorpartofthejob.Itisabout
sharedleadership.Infact,theteamidentiesitsinformalleader.His(orher)main
objectiveisthepeaceandharmonyoftheteam.Thestruggleforpowerisirrelevant.
TheDJsmanagementmustevolvefromahumiliatingmachineintoaexibleand
horizontallystructuredvaluecreatingnetwork.Thecreativity,dedicationand
problem-solvingqualitiesofthepeoplethatcomprisetheDJsorganizationmake
hisorherpositioninthemusicbusinesssturdier.
TheDJsmanagementanditsrst-linepartners(recordscompanies,music
publishers,bookingagenciesandthelike)mustco-operateonequalterms,realizing
goalsbyexploringoptionsinclosecollaboration.
Co-operation,complementingcompetitions,trustandsharedambitionsare
fundamentalcharacteristicsoftheneworganizationalform.Thepeoplethat
comprisethenetworkorganizationworkindependently,andarefacilitatedrather
thanmanaged.Theverysameappliestotheeventorfestivalproducer.The
organizationanditsvariousin-housemodulesandoutsidepartners(creation,
production,communication,sales,legalandbookings)mustworkasequalstowards
acommonend.Theformationofasteeringgroupisimperative,anorganic
consequenceoftheprocess.
Steeringgroup
TheDJsmanagementormanagementofthefestivalproducershouldcultivatea
steeringgroup.Itsmissionisthis:
Thesteeringgroupgivesadvicetothenetworkorganizationonitspolicy,its
strategyanditstacticalapproach.
Thesteeringgroupassiststhenetworkorganizationinwordanddeedat
realizingitsaims.
Thesteeringgroupisfocusedonraisingsupportforthenetwork
organizationspolicyandstrategy;itfunctionsasitssparringpartner.
Remember,inordertofunctionproperlythesteeringgrouprequiresexpertadvice
fromoutsideparties.Inessence,thesteeringgroupwillhavetobesteeredinturn.
Mostdirectorswouldfeelalatentsenseofdesperationwithouttheadviceand
supportbyexperts.Itishorrifyingtoimaginemanagerswhointerveneinprocesses
withouthavinganyunderstandingofthepractice.
Conclusion
DJsandeventproducersarecompelledtoreinventtheirbusinessmodelinorderto
becomepartoftheinternetecosystem.Thetraditionallyorganizedcompanywithits
hierarchicalstructureisnotinsyncwiththedigitalreality.Themarketdevelopsits
owndynamic;itishardlyimpossibletoidentifyhowthingscameabout.
AsuccessfactorofthenewbusinessmodelforDJsandeventproducersworkingin
EDMistherestructuringoftheirorganization.Theorganizationmustbedesignedin
theformofacollaboration,aso-callednetworkorganization,anofteninformal
collectionofco-operatingmodulesthatsignalspractices,developmentsandcurrent
plusfuturebottlenecksregardingawareness,knowledge,policy,implementationand
regulations;arrangeswhotacklestheseissuesandhow;andcommunicatesthese
matterstoallpartiesconcerned.
Anetworkorganizationmustberegardedasaanorganizationalformatinwhich
membersoforganizations(so-callednodesinthenetwork)collaboratetorealize
bothcommonandindividualtargets.
Theproperprojectalignscongenialenergytowardsanambitionortheme,andthus
strengthensallcontactsandrelationsbetweenthevariouspersonsand
organizationsthatarepartofthenetwork.Thestructureofanetworkorganization
appearstobeinformal,yettheset-upfunctionsinacompellingfashionduetothe
giveandtakeprinciple,mutualdependenciesandbilateralagreements.The
organizationcomprisesnon-hierarchicalmodulesandteamsthathavetheirpersonal
relationtothesurroundingsandareabletorespondquicklytochangesinthe
surroundingsorquestionsfromfansandclients.Themodulesoperate
independently;theyarefacilitatedratherthanmanaged.
Whatotherconditionsmustbemet?
Therulesofthegamebywhichtheneworganizationplaysmustbecrystalclear
(greatcommunicationskillsforbothinternalandexternalcommunication);
Theremustbeaconvincingandsubstantivefuturevisionregardingthenew
businessmodel,soallinvolvedareworkingtowardsthesamegoal;
Keenassessmentofallmembersofthenetworkorganizationandtheir
achievements;
Memberofthenetworkorganizationmustbecoachedonprofessional
abilitiesandskills,intensivelysoifnecessary.
Networkorganizationsmakeupanimportantpartofourdailylives.Withoutrealizing
it,wearepartofvariousnetworks,consistingofavarietyofgoalsandpeoplewho
weinteractwithinordertomakemoreofourlives.Inthefuture,theseorganizational
formatswillhaveanevengreaterinuenceonsocietythantheyalreadyhavetoday.
Thearrivaloftheinternethasmadethepotentialofinformationserviceseemingly
limitlessandtherewillbeinitiativesthatarecompletelydierentfromthehierarchical
structuresthathavebeenthedominantformatandtoanextent,stillare.Itis
necessarytoadapttothisnewrealityandrestructureyourorganizationsoitservices
thatbrandthatyou,theDJortheeventyouproduce,are.
7.Settingupadigitalstrategy
Aproperdigitalstrategyisanintegralpartofthebusinessstrategyandleadsto
sub-strategiesconcerningcontent,networksanddata.Itiscrucialtoviewthe
internetecosystemasabusinessecosystem.Thedigitalstrategyenablesthe
creationofnewvaluemodelsandincomemodelsfromthesocialmediaandthe
relationsofallpartiesconcerned.Yourdigitalstrategymustapproachtheinternet
ecosystemasaself-supportingplatform(domain,socialnetworks,andthirdparty
onlineservices),whichfunctionsasaprotcenterandrealizesgoalsandtargets.
Contentfunctionsasthesocialmediascement.Information(data)isthepropellant
thatdrivesthesystemand,viatheearningmodels,generatescashow.
Goodisnotgoodenough
Whenyou,theDJorevent/festivalproducer,knowyouronlineposition,youneedto
outlinethegoalsofyourorganization.Whenyouviewtheonlineworldasabusiness
opportunity,youhavetobaseyourdigitalstrategyonthebusinessstrategy.When
linkingupwithfansandclientsistheprimaryfocus,therearenoexcusesfornot
recognizingyouronlinefansandclients.
Itisoftensuggestedthattheoineworldanditsonlineequivalentaretwo
separateentities.Anotherwayoflookingatitis:theworldistheworld,andthe
worldisbothonlineandoine.Thevirtualworldisanintegratedpartofreality,i.e.
therealworld.Fornowandthenearfuture,inspiringDJsandeventproducerswho
areapproachablebothoineandonline,arederigueur.Intheend,itallrevolves
aroundthestoryastoldbyyou,togetherwiththestoryofthefanorclient.The
knowledgementionedabovewillhelpyoutomakeyourorganizationfuture-proof,
soitcaninspireyour(future)fansandclients.
Justagoodplanisnotenoughthesedays.Yourorganizationisonlyabletorealize
yourplanswiththeassistanceofyouremployeesandcontributingoutsideparties.
Therefore,deningastrategyrequirestheinformationabout,andinputfrom,your
internalandexternalenvironments.Moreover,theprocessofshapingyourdigital
strategyisnotpossiblewithoutmobilizingthosewhomustexecutetheplanorthose
whoareinvolvedinit.Mappingoutanewdigitalcourseisanadventurousprocess.
Ittakescondenceinthoseinvolved,whataretherightchoices?Istheplanfavored
byallandwilltheysupportit?
Businessstrategy
Thereisnosuchthingasanunivocaldenitionofbusinessstrategy.Thisone,
44
formulatedbyChandler isfrequentlyused:
Strategyisthedeterminationofthebasiclong-termgoalsandobjectivesofan
enterprise,andtheadoptionofcoursesofactionandtheallocationofresources
necessaryforcarryingoutthesegoals.
Manyorganizationsthinkofstrategyastheoryandtheexecutionofthestrategyas
practice.Therefore,intheirmindsexecutionismoreimportantthanstrategyand
45
asaresulttheyneglecttheirstrategy.MichaelPorter stressesthedierence
betweenstrategyandoperationaleectiveness.Variousmanagementtoolshelpto
improveoperationaleectiveness,suchasTotalQualityManagement;itmonitors
companyperformanceintermsofleadership,qualitycontrolofsuppliers,
documentingvisionandplanning,evaluation,processcontrolandprocess
improvement,product,design,employeeparticipation,creditandreward,training
andeducation,andcustomerfocus.Thistoolaimsatcontinualimprovementofthe
companyperformanceingeneralandfocusesonsatisfyingfansandclients
demands.TotalQualityManagementisafree-standingmethodofchange.However,
itdealswithachievingresultsandattainingtargets;notwithmappingoutthe
companyscourse.
So,companystrategyisnotanisolatedmanagementprocess.Strategicplanning
directsalldecisionsanorganizationwillmakeforthepresentandthefuture.A
soundstrategyisvitalandimperativeinordertofunction(andkeeponfunctioning)
eectively.Fortheformulationofasoundbusinessstrategy,theDJorevent/
festivalproducermusthaveclarityaboutfouraspects:
MissionThemissiondescribestheidentityofyourorganization:whoyou
are,whatyoudoandwhatyouwanttoachieve.Amissionexistsoutof
time,yetcanbeappliedatanymoment.
VisionAvisionistheinspirationofyourorganization.Itistheambitionthat
formulateswhatyourorganizationwantstobe.Youreviewthecurrent
situationandassessfutureopportunities:whatisthedesiredperfect
set-up?
44
Chandler,A.D.(1974).StrategyandStructure:ChaptersintheHistoryoftheAmericanIndustrialEnterprise.BeardBooks,
1962
45
Porter,M.(1996).Whatisstrategy?Informationsourcedon28January2015:(HarvardBusinessReview):
https://hbr.org/1996/11/what-is-strategy
ObjectivesThesearetheconcreteresultsyoupursueinordertorealize
missionandvisionofyourorganization.Howtoaccomplishthis?Inorderto
achieveyourgoals,youhavetomakethemSMART:Specic,Measurable,
Acceptable,RealisticandTime-phased.
StrategicplanThestrategicplandescribeshowtheobjectiveswillbe
achieved.Theplannumbersaseriesofinterrelatedsteps,sothatlong-term
continuityisfeasible.Asoundplanseestotherightcoordination,control
andtransferoftasksconcerningallactivitiesthatrelatetocontent,
connection,domain,networks,equipmentanddata.
Thecompleteprocesstoimplementastrategysuccessfullyrequiresvesteps,
accordingtoRobertKaplanandDavidNortonintheirarticle,MasteringThe
46
ManagementSystem :
DevelopThestrategymustbetheconsequenceofthecompanysvision,
missionandcorevalues.Onlywhentheseareclear-cut,thestrategycanbe
stipulated.
TranslateThestrategymustbetranslatedtomeasurabletargets.
PlanInordertorealizestrategicgoals,plansmustbedeveloped,including
monetaryandcapacityestimates.
AnalyzeWhenthestrategyisimplemented,theperformancemustbe
reported.Learnfromanalyzingtheinitialresults.
TestInordertoremaincompetitive,thestrategymustbeevaluated
habitually.Adjustthestrategywhennecessary.Developanewstrategyif
needbe.
46
Kaplan,R.&Norton,D.(2008)MasteringtheManagementSystem.SpecialissueonHBSCentennial.HarvardBusiness
Review86,no.1:62-77
Content
Forpublishers,contentstrategyistheorderofbusiness.Infact,contentistheircore
business:bindingtargetgroupstotheirbrand(s)viacontentproduction.Thatiswhat
itisallabout:long-termrelationships.Formarketingandcommunication
professionals,contentusuallyisnotastrategictool;justllerinthecampaign.You,
theDJoreventproducer,arepublisheraswellasmarketerandcommunicator.
Peopletellstories,inthedigitalworldaswellasthephysicalworld.Storiesexpress
howpeoplethinkandlearn.Storiesdesignauthenticity,makethingspalpableand
nearby.Storiesexposethesoulandturnthedistantandtheabstractintosomething
thatispersonal,comprehensibleand,aboveall,human.Ontopofthatall:stories
bind.Anymarketercantellwhathisorganizationdoes.Someexplainhowtheydoit,
butonlyafewcanunequivocallyexplainwhytheydoit.Thisiswhatyou,theDJor
eventproducer,havetodo.
Storytellingisthefoundationofasoundcontentstrategy.Thewhyisthestarting
47
point.WeallknowthestoryofSimonSineksGoldenCircles andthepowerof
thesimplest,yetcomplexquestionformanyorganizations:why?Theanswertothat
questionprovidestheframeworkforthecontentstrategyandallformsofinsideand
outsidecommunication.
Thecontentstrategydoesnotdealwithputtingtheorganizationanditsprocessesin
order;thatiscontentgovernance.Thecontentstrategyalsodoesnotdealwith
contentplanning,contentdevelopment,contentcontrol,contentdistribution,
contentevaluationorcontentarchiving,forallthatispartofcontentmanagement.
Thecontentstrategyhelpstotranslatetheobjectivesintoacourseofactionthatwill
accomplishthegoalswiththehelpofcontent.
Asoundcontentstrategyhelpsyoutocreateandcuratecontentthatisrelevantfor
targetgroupsattherighttime.Thiscreatesstrongrelationsandbindsyourfansand
clientstoyourproduct.Moreover,goodcontenthelpstosetyouapartfromthe
competitioninyourcornerofthemarket.
47
Sinek,S.(2011)StartwithWhy.London:PenguinBooks.
Thecontentstrategyhelpstoestablishwhoneedswhatinformationatwhichtimein
ordertoachieveyourgoal.Plusthebestformandtheoptimumfashiontopresent
thisinformation.Linkingthecontentstrategytotheorganizationsobjectivesandthe
assessmentoftheendresulthelpstoaccountfortheaddedvalueofcontent.Sothe
endistobind,andcontentisthebindingagent.Byconsistentlydisclosingcontent,
andkeepingitgoinginadisciplinedfashion,youwillbindmoreandmorefansto
yourbrandandproduct.Thusitopensthewaytothefansorclientstrust.
Fromconnectiontotrust
Initiallyorganizationsarequicklydisappointedwhentheygettoworkwithinternet
andsocialmedia.Prettysoonittranspiresthatdigitalpresencedoesnotresultinthe
ReturnonInvestment(ROI:volumeofmoney)orReturnofEngagement(ROE:
volumeofattention)onehadhopedfor.Mostorganizationshaveyettomakethe
transitionfrompresencetoconnection;andfromconnectiontotrust.Thismust
beechoedtheorganizationsmission.Byfocusingonthefanorclientinregardto
theinternetecosystem,andconsideringthisasabusinessecosystem,youwill
actuallyseenewvaluemodelsandincomemodelsemergefromtherelationsofall
partiesconcernedintheinternetecosystem.
48
Centraltothedigitalstrategyarethreephases .Phase1isjustcontactwithout
muchbonding.InPhase2,actualrelationshiphasdeveloped.InPhase3,this
relationshiphasdeepenedintoarelationshipoftrust.Whydoyoupassthrough
thesephases?Youreallytrytoevolvefrombeingasenderwithitsnetworkof
receiverstothesituationinwhichyouarepartofanetworkasacondant;inthis
network,eachparticipantiscondantofallotherparticipants.Ifyouengagewith
yourfansorclientsinasignicantmanner,thefollowingmodelwillbegenerated.It
isimportanttogothroughthesubsequentphases,inordertobecompetitiveand
remainsoforthefuture.Thisisreectedinthevisionofyourorganization.Thevalue
ofthenetworkyouarebuildingincreasesbybringingthefansfromPhase1to
Phase3.
48
Thesephasesfrompushtoconnectionandfromconnectiontopullarethebasisofthebusinessmanagementinwhich
youasacompany,organizationorbrandenterintoarelationshipwithfansorclients.Youwintrustbyservicingtheneed(s)of
thefansorclients.Theresult:anewcompanyvalue.See:Hofstee,G.,Doeland,D.(2013)Socialverandertdebedrijfsvoering
(Socialchangesthemanagementofcompanies).Informationsourcedon17July2014:
http://www.vananaloognaardigitaal.nu/social-verandert-de-bedrijfsvoering-2
Domain
FansandclientsofDJsandeventproducershaveaneedforlikablecompanies,
organizationsorbrandstheywanttobelongto.Moreover,theyfeelaneedfor
trustworthiness.Fortheforeseeablefuturewewillonlyengagewithdomainsand
socialchannelsthatfulllourneeds;thatlistentous,thatwecantrust.Remember
this:adomain(yourwebsiteorapp)istheonlysitewhereafanorclientcanverify
thereliabilityofonlineinformation.Itistheonlysiteadministeredbyyou.
Althoughitshouldbeself-evident,manyDJsandeventproducersdonotfocuson
theiractualpropositionandtheirmostimportantobjectives.
Somequestionsyouneedtoaskyourselfcontinuously:
Whatismyproposition?Whatismyvisionandmission?
Whataretheobjectivesofmywebsiteandmyapp?
Whatarethecrownjewels(content)ofmywebsiteandmyapp?
DoIproduceorcuratecontentthatbenetsmyvisitors?
Whatdoesconversionmeantome?
DoIwantpeoplejusttovisitmysiteordoIwantthemtodirecttoacertain
section?
Rememberthatyourcompanysstrategyisleadingyourdigitalstrategy.The
propositionandobjectivescanberelatedasstories(textualand/oraudio-visual
content)inyourdomain(websiteand/orapp)andsocialnetworks.Thefansor
clientsexperienceisleadinginthisrespect.
Networks
Everyday,varioussocialnetworksarethelocusofinteractionandcommunication
onamassivescale.Centraltoallthisactivityarethefanandtheclient.Oneofthe
mostimportantconditionsoftheimplementationofsocialnetworksistheevident
matchwiththetargetedaudience,yourfansandclients.Theyarethefocusofyour
eort;theyarethereasontoimplementadigitalstrategy.Knowledgeofyourfans
andclientsisthereforeessential:whatsocialnetworkstheyfrequentandwhatsocial
networkstheyignore.Howdotheyusethem,inaprofessionalorinapersonal
manner?Yournetworkstrategyistailoredtomeetthesespecics.
Thereisamultitudeofsocialnetworksusedby(potential)fansandclients,butis
simplytootime-consuming,tooenergy-drainingandtoolittlecost-eectiveto
monitorallthesespotsandengageinrelevantconversationsorproducespecic
contentforthem.Sowedonotusehailforammunition,wetargetthechannelsthat
oerthebestchancesofsuccess.Onthatnoteitisconvenienttoknowthe
potentialimpactofvarioussocialnetworks.Whousesthem?Whatisgoingon
there?Howdopeopleusethem?
Forinstance,theaverageLinkedInuserismoreprofessionallyattunedthanthe
averageFacebookuser.Whenyouusesocialmediaforstrictlybusinesspurposes,it
isawasteoftimeandeorttomaintainaFacebookpage;LinkedInisbettersuited
toyouraims.Thisexampleshowstheimportanceofknowing(thus,researching)
whereyourfansandclientsareactiveandwhattheywant.Chapter2givesan
overviewofsocialnetworks;selecttheplatform(s)thatoer(s)thecoveragemost
relevanttoyou.Addthesetoyourinternetecosystemandsubsequentlyfeedthem
content.
Multi-screen
Forsometimenow,manyhavediscussedacross-platformstrategy;however,it
remainedopaquehowdigitalappliancesareusedonaglobalscale.Aninternational
49
survey byMillwardBrown,concludedthatmobilescreenscatchmoreeyeballs
thantelevisionscreens.Americansinteract151minutesadaywiththeircell-phone
andwatchtelevisionfor147minuteseachday.InAsia,thecell-phonewinsouteven
more.InChina,thetimespentoncell-phonesistwicethetimespentwatching
television.Morethaneverbefore,weusemultiplescreensformultiplepurposes.
Originally,everydevicehaditsspecicuse.Thetraditionalpersonalcomputerand
laptopwereusedforworkandresearch.Thesmartphonestartedoutasaphone,a
communicationtool.Tablet,gameconsolesandinteractiveTVweredevicesfor
entertainment.Thaterahascometoanend.Wejustaseasilyswitchfromone
screen(ordevice)tothenext;weusemorethanonedeviceforthesamepurpose.
49
MillwardBrown.(2015).2015Digital&MediaPredictionsInformationsourcedon16June2015:
http://www.millwardbrown.com/global-navigation/insights/articles-and-reports/digital-predictions/2015/2015-digital-and-medi
a-predictions
Thesedays(nearly)alldevicesarescreen-equippedforinformationandvisual
entertainmentpurposes.Web,mobilephones,tabletandeveninternet-connected
devices(thinkoftheenergymonitorinyourhome)arepartoftheecosystem.These
devicesarenolongerstand-aloneappliances,theyarelinkedtoandpartofthe
digitalworld.Thisimpliesintegration.Theusermustbeenabledtoconsume
content,irrelevantofthesituationorthedevice.Therefore,contentneedsto
presentedinawaythatadaptstothevariousplatformsthefanorclientuses;or,
evenmoreimportantly,theuserscontext.Thefanorclientdoesnotusehis
smartphonebecauseheprefersthesmallscreen,butsimplybecausethatsthe
screenthatisavailabletohimatthatparticulartimeandplace.Thinktraintravelers.
Multi-screen(shorthandforpublicationthatissuitedtovarioustypesofscreens)isa
given.Wehavetoacknowledgethefactthatthetargetgroupfansandclientsinto
EDMconsumecontentinthismanner.Weshouldstopfocusingonstand-alone
devicesandintegratemulti-screeninourdigitalstrategy.Multi-screenisa
fundamentalaspectoftheimplementationofinternetinyourcompanysset-upand
itisacrucialcomponentofyourdigitalstrategy.
Data
MostDJsandeventproducershavebeencollectingvariousdataconcerningfans
andclientsforsometime.Withoutbeingverymuchawareofit,theyhavecompiled
vastdatabases.However,thesedataareusedinadequately.Toomuchtimeand
energyisinvestedinmakingchoicesbasedontheavailabletools,infrastructureand
collecteddata.Inordertomakethenextstep,allthisneedstobeaddressedand
sorted.Itrequiresadatastrategy,whichisindispensable.Thealternativeisthe
implementationofthelimitlesspossibilitiesoeredbyvarioustechnologicaltools
andsolutions.Adatastrategyalongtheselinesexplicitlylinkedtoimprovingthe
returnonthecompanysbusinessactivitiesiswhatmostDJsandeventproducers
lack,aswellastherightdrivetoarriveatthistypeofstrategy.
ManyDJsandeventproducersneedlesslycomplicateandthwarttheuseofdataas
partofthecurrentoperatingprocesses.Itresultsindelays,orputsprojectsonhold.
ADJoreventproducerisbestservedbyincrementalimprovementsofexistingand
availablesourcesofinformationprovision,asopposedtoradicallyandrashly
remodelinghisinformationlandscapejustfortechnologicalreasons.Thatapproach
scarcelyresultsinaconnectiontotheobjectivesdetermined.
Itisbesttorstexamineallin-housesystemsandoutsidedatasourcesforfanor
client-relatedinformationandtoexpressinastrategywhatoneexactlywantsto
knowaboutthisfanorclient.Thisrevealstheholesintheinfoonthefanrelation.
Repeatthisprocessuntiltheproleiscollatedfromvarioussourcesand,
consequently,theobjectivescanberealized.Inthisprocess,itisessentialto
increasethepay-ooftheexistingcompanyactivities:morescope,morebrand
loyalty,moreturnover,moreclientinformation,moreoptionsfordierentiatedand
personalizedcommunication,etc.
EDMschallengeliesinprocuringdatafromsourcesoutsidethecoreindustry,such
asticketprovidersandmerchandisers,aswellasinformationfromiTunes,Spotify,
Soundcloudandvariousothermusicandvideoservices.Practiceshowsthatthese
servicesperiodicallysharepartialinformationandoftentheirinfoisincomplete,as
farastheyarewillingtoshareintherstplace.Thismeansthatyourdigitalstrategy
directlytouchesupontheselectionofoutsidepartiesforcooperation.Theoverriding
principleintheselectionofpartnersisthesharingofdata,whichmustbemade
availableintherightandusefulmanner.
Balancingact
Todevelopthedatastrategyisabalancingactbetweentheinnovativeactions,
alreadyundertakenbyanorganization,andtheavailablemeansandoptions.The
pointofmappingoutadatastrategyistoselecttheactionsthat:
Bestcomplementexistingobjectives
Canbeimplementedmosteectivelyintheexistingorganizationalstructure
anditsexistinginformationprovisions
Yieldthebestresults
Designingareliabledatastrategycentersonstrikingabalancebetweenthe
availablesourcesofinformationandtheobjectivesidentiedviatheIntelligence
MaturityModel.Thisway,theimplementationofdatadrivenbusinessanddata
drivenworkwillbemorefocused;itsprogressmoretransparent.Pointer:makethe
50
data-intelligencestage itselfdata-drivenandmanageable.
50
Moreinformationinchapter8.
Thedataareeasiertoreadastheresultofafewgeneraltacticaldecisions:by
focusingonasoliddatastrategyandbydisconnectingthedatastrategyfromany
discussionsvis--viscomputerizationissues,suchastechnicaltoolsandthe
problemsandsolutionsregardingmanageability.Thisalsohelpstotranslatethedata
intoeciency,visionandresults.Thusyouareincontrolofaswellasinbusiness
withboththeavailabledataandthedatathatwillbegenerated.
Somehandlesforthesuccessfulimplementationofthedatastrategyare:
Technologyisnotleadingintheuseofdata.Itisthepeoplewhousethe
technology,plusthetranslationoftheobjectives.
Applyanypotentialitythatisavailable,usewhatyoualreadyhave.Focuson
theteammemberswhoarekeenbycharacter,anddittooutsidepersons
withextensiveknow-howoftheissuesathand.Theywillclearthewayto
thesuccessofthepersonnelwhohandle(willhandle)thedata.
Youcreateknowledgebysharingknowledge.Thisisnotagureofspeech,
butthereality.Itworksbothinsideandoutsidethecompany.
Cross-referencingdatasetsandtheinputofextrabrainsandeyescan
generatesurprisingresults.
Fromcoststoearnings
Technology,internetandsocialmediaarefrequentlyregardedtobeexpenses.Your
onlineactivitiesareaimedatraisingyourproleasDJoreventproducerinthe
ecosystemofthefan.Inordertoachievethatresultyouhavetocreateaspecial
businessunit.Itisversatileinitsactionsandexibleintermsofstructureand
organization.Itistargetingandcreating(optionsfor)newsourcesofrevenue.
Thisunitshouldreallybemanagedlikeitisastart-upcompany.Youwillhaveto
learnhowtocope,inadigitalfashion,withtheexperiencesoffansandclients.How
toconnecttoandbondwithapersonwholivesintheapp-economy?Aretheyall
thesameandifso,inwhatway?Oraretheyalldierent,andifso,howdierent?
Howarewegoingtocultivaterelationshipsofthistype?Thedatageneratedbythe
cultivationofonespersonalinternetecosystemcanbeseenasabusinessmodel.
Thisallowsyoutoapply,forinstance,theCanvasbusinessmodelbyOsterwalder
(seeChapter3).
Sincethisunitismanagedasastand-aloneentity,itproducesitsspecialbalance
sheet.Itmustbemanagedlikeitisadigitalprotcenterthatisself-sucientin
termsofbudgeting.Itsbalanceisusedforaccountingcostandprotinorderto
establishtheReturnofPlatformPerformance(ROPP).
Conclusion
Theworldistheworld,bothoineandonline.Thedigitalworldisanintegrated
elementofthephysicalworld.DJsandeventproducerscanonlysuccessfully
operateintheinternetecosystemiftheyrepresentvalueinthedailylivesoffans,
enterintoarelationshipwiththefansandwintheirtrust.Thisisthefocusofthe
digitalstrategy.
Formulatingastrategyisnotaneasythingtodo.Youhavetondanswersto
questionslike:Why?How?AndWhat?Moreover,youhavetokeepaneyeonthe
mechanismsofsearchengines,socialnetworks,onlineservicesandoperating
systems;dittoforthevarioustypesofscreensandinterfaces.Contentisthekeyto
connectionandconnectionthekeytocurrency,asvisualizedbythisoverview.
Contentisthecement.Socialnetworksandyouronlinedomainarethesiteswhere
connectionsaremade.Youmustalwaysformulateyourdigitalstrategywiththefan
orclientinmind.Whatcontent,createdbyyourselforyourfansandclients,willbind
themtoyourecosystemand,mostimportantly,willkeepthemcomingbackfor
more.
Asounddigitalstrategyisanintegratedelementofthebusinessstrategy.Toregard
theinternetecosystemasabusinesssystemisanessentialconditionforsuccess.
Thedigitalstrategyopensupoptionstogeneratenewvaluemodelsandincome
modelsfromthesocialnetworks;thisworksfortherelationshipsofallparties
concernedintheinternetecosystem.Thismeansthatyourdigitalstrategymust
regardtheinternetecosystemasaplatform(domain,socialnetworks,thirdparty
onlineservices).Thisplatformisself-sucientandgeneratesincomewhilerealizing
theobjectivesofthedigitalstrategy.Contentisthecementofsocialnetworks.Data
arethefuelthatdrivethesystemandcapitalizeontheincomemodels.
8.Fanbaseinformationisthekey
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In1958,HansPeterLuhncoinedthetermBusinessIntelligenceinhisIBM-article ,
ABusinessIntelligenceSystem.Hedenesbusinessasacollectionofactivities
thatarecarriedoutforapurposeinabroadsense,andviewsthebusinessunits
thatareinvolvedincommunicationasanintelligencesystem.
Luhndescribesintelligenceastheabilitytointerprettherelationoffactspresented
insuchawaythattheyleadtoactionsthatresultinadesiredidentiableand
measurableoutcome;oneormoreobjectivesmustbeattainedbeforeamoreorless
xeddeadlineexpires.In1989,informationspecialistHowardDresner(whowould
becomeananalystattheGarnerGroup)proposedtousetheconceptofBusiness
Intelligenceasthecatch-allphraseforconceptsandmethodsthathelptoimprove
theprocessofbusinessdecision-makingbyimplementingfact-basedsystems.
ThetermBusinessIntelligence(BIinshort)isoftenusedtodescribethegathering,
structuringandanalysisofdatainordertopresenttheseaccessiblyasinformation.
Thisshouldresultinknowledgeand,ifnecessary,leadtoaction,suchasdecisions
orchangesinpolicy.TheapplicationofBusinessIntelligencehelpstohaveabetter
understandingoftheorganizationanditsprocesses,andconsequentlyofcampaign
results.TheaimofBusinessIntelligenceistogaintheupperhandincompetition
andtomaketheorganizationfunctionatamoreskillfullevel.Furthermore,Business
Intelligenceincreasesacompanysvalue.
Presently,DJsandeventproducerswillhavetousedatatofurtherimprovethe
clientsorcustomersexperience.Communicationfromcontextwillbecrucial.The
betteryouunderstandthefanorcustomerasaperson,themorerelevantand
ecienttheinteractionwillbeandthemorevaluablethecompany.
Itisagiventhatformanythecollectionofinformationfromafanbaseisnotthe
mostsexyaspectintheworldofEDM.Therefore,atrstglancethischaptermight
betheleastappealingtoread.However,itisacrucialchapterforDJsandevent
producers.Howtoorganizeaplatformafanbasesothecollecteddataproduce
usefulinsights?
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Luhn,H.P.(1958).ABusinessIntelligenceSystemIBMJournalofResearchandDevelopment,2(5),314-319
Threereasonsfordatacollection
Personalcontactwithfansandlisteningtotheirhopesandwishesiswhatthemusic
businessisaboutthesedays.Fortunately,thisisnothardtorealize.Datanolonger
havetobepurchasedviaadatabroker,acompanythatcollectsdataandsellsitat
amarketprice.Itiseasytocollectdatayourself,forexampleviasocialopt-in,the
large-scalecollectionandrecordingofdataviaemailand/ortextmessages.It
representsavast(nancial)value.Herearethreereasonswhythecollectionofdata
matters:
1.)Marketingandcommunicationischanging
Justsendingoutmessagesviaasmallnumberofchannelsliketraditionalprint
media,televisionoreveninternetcommercialsisnearingitssell-bydate.
Multichannelandomnichannelmarketingormultichannelcommunicationisthe
nameofthenewgame:variouschannelsareusedtosendoutamessage,for
instancebyreferringtoaYouTubevideoinaFacebookpostoronthewebsite
directingtotheFacebookpage.
2.)Data-analysisisavailabletoall
Newtechnologyenablesustodeterminewhere,whenandhowfrequentlywe
requestfanandclientdata;asocialopt-indoesthejobverynicely.Itisalso
possibletomapouttheonline(shopping)behaviorofyourtargetaudience.New
technologyallowsyoutodoacomparativestudyandanalyzeonlinetransactions.
Moreover,itispossibletogaininsightbyanalyzingqueriesandreviewsonsocial
medialikeFacebookandTwitter.Precisionmarketing,i.e.usingknowninterestsor
thelocationofthefanfortargetedpromotionalmessages,willboostyoursuccess
ratetremendously.
3.)Ithelpstoplayintothefanshopesandwishesasopposedtoone
messagetoall
Fansarenolongersensitivetoone-waycommunication;theyaremorethanjusta
receptacleforbroadbandmessaging.Theywanttoengageinadialog.Analysisof
socialmediaconversationsandinteractionsclariesthewishesofthefanorclient.
Dontlagbehindthecompetition
TechnologicalevolutioncompelsDJsandeventproducerstoadapttothenew
times.Moreandmorewaysofconnectingtoatargetaudiencearebeingdeveloped,
andDJsandeventproducershavetogoalonginordertostayaheadinthegame.
Theyhavetokeeptheirngeronthedigitalpulseandmonitortheresponseto
content,substitutingfailingmessagesformoresuccessfulones.Thisstateofaairs
wasexempliedatEurosonicNoorderslag2015.Studentswerepolledonthedos
anddontsofonlinemusicconsumption,dataharvestingviatheworldwideweband
thewillingnesstopay(more)formusic.Theresults:studentsappreciatetechnology,
evenwhenitcomestoprivacyissues.Thereisjustoneproviso:itshouldnotbe
unnecessaryorturnintoanuisance.
BusinessIntelligenceandtheincitementofcommunication,marketingandsales
activitieswillhavetogetagreaterroleintheorganizationoftheDJorevent
producer.Itisimportanttolinkhardandmeasurabledataandthuscreatetheproper
contextforoutliningandtestingthedigitalstrategy.Thefanbaseshouldbe
analyzedmonthlyorannually,dependingonthevolumeofavailabledataandthe
ambitions.ThusdatawillbecometheguidefortheDJ'soreventproducers
marketing,communicationandsalesactivities,oratleasthintatthecorrect
budgetarypriorities.
AnextensiveanalysisoftheavailableinformationmustbetherstpriorityfortheDJ
andhismanagement.Dataanalysisistheonlynextstepthatmakessensefor,for
instance,salesandmarketingactivitiesaswellasbookingagents,merchandisers
andsponsorrecruiters.Justaggregatinghitsinsearchengines,advertisingand
beingvisibletothetargetaudiencenolongersuces.Delvingintodata,connecting
resultsandtransformingtheseintoadigitalstrategythatcomplementsthe
marketingstrategyitsthenewcoursetheDJandhisorganizationshouldsail.Itis
obviousthisnewcourserequiresanewmindframe.Allthisappliesequallytoevent
producers
Accessisdata
Recordcompanies,musicpublishersandDJsareandwillbedependentontarget
audiences.Inthedigitalrealm,thesearesmallerandmorespecic.Fragmentation
andconvergenceareathreatontheonehand,howevertheyprovidenew
opportunitiestoconnecttoandcreateabondwiththeveryaudienceoftheartist.
Contentownerssuchasthemusicbusinesspublishtheircontentonallavailable
platforms:print,radio,televisionandinternet.Thecorrespondingearningmodel
displaysafragmentationofthesourcesofincome.Thefunctionofdatais
increasinglyclear.Theyareactuallythenewsourceofincomeforthemusic
business.Thisimpactsthebusinessmodelasdescribedinchapter3.
Forsometimenowitisevidentthataccesstocontentiscrucial.Lookingatlate
1990sonlineservicessuchasKazaa,LimeWire,Napsterandmanymore,itishard
nottoconcludethattheseservicesoeraccesstovastamountsofcontentandare
infactimmensesourcesofdata.Alltheseservicesinvokethesensethatallcontent
(i.e.music,movies,photosandsoftware)isavailablewheretheyactuallyjustprovide
access.
Accesstodigitalcontentandonlineservicingarethekeystoneoffutureearning
modelsforallwhoareinvolvedintheexploitationofmusic,or,forthatmatter,
books,dailypapersandmagazines.Thisoutlookisrelevanttomanylinesof
businessaswell.Salesofphysicalproductstofans,customersoracionadoswill
decreasedrastically.Up-to-datedigitalfansnolongerfeeltheneedtoowna
hard-copy,aswasderigueurintheageofphysicalsound(andmedia)carriers.Take
acloserlookatportalssuchasAppleMusic,DeezerandSpotify,butalsoDropBox,
GoogleDriveandmanymore,andonethingcatchestheeye:theyprovideaccess.
Accesstomusic(orothercontent)replacesownershipofmusic(orothercontent)
viahard-copyorindigitalform.Accessmeansuserdata.DataarecrucialtoEDMs
businessmodel.
Companyvalue
Datasourcesofinterestaresocialnetworks,businesstransactions,logbooksand
journals,researchreportsandthendingsofmonitoringandanalysis.Gettingto
workwithdataposesaseriesofissuesregardingtherecording,management,
storage,processingandsecurityofdata.Newopportunitiesarise,dataanalysis
leadstoground-breakinginsights.Dataanalysisresultsinaddedcompanyvalue.
Goodwillisdenedaswillingnessorfavor.Inthenancialsector,goodwillstandsfor
thatpartofacompanysmarketvaluethatisnotaccountableasassetsorliabilities:
thesurplusvalueofacompanyontopofitsnetvalue.Thusviewed,goodwill
representsfutureearningsofcompanies,organizationsorbrands;notyetexpressed
inthebalancesheet,thoughpresentintheformofknow-how,knowledge,clients,
brands,humanresourcesandthelike.
Thesaleof(Dutchcompany)ID&Tto(Americanbusinessconglomerate)SFX
constitutesafairexampleofhowin-housedatacanimpactthepriceofabusiness
intake-oversituations.Bylookingattheaspectsknowledgeandclientsofthe
conceptgoodwill,anew,additionalvalueemerges;itisrootedindata.The
introductionofsocialmediaseizedbyID&Tfortherecordingofalldatagenerated
byfansandfollowersviaonlineinteractionandconversationhasobvious
consequencesforthevaluationofcompaniesandgoodwill.SFXEntertainments
valuationofID&Tclearlyindicatesthatthedatageneratedbyfansandfollowersof
ID&Teventsworldwidewilladdvaluetotheorganization.
Onecanwonderhowbigadealthelossofafewdatais.Doesitreallymatter?And
whowillndout?However,theconsequencescanbedisastrous.Rememberthe
newsstoriesonSonyPlaystationanditslossofdata.Usershavedroppedthebrand
anditsproductafterworryingaboutprivacyissues.Anditdoesnotstopthere.
Dissatisedcustomerssharedtheirstories,withfriends,family,acquaintancesand
others,probablyviasocialmedia.Itshowshowlossofdatacanresultinadamaged
imageveryhardtorepairandsubsequentnancialdamage.Afterall,the
companysintellectualpropertyislocatedindata.Leakageorlossofinformationwill
haveseriousconsequences.
Businessrst
Ifwecanpointoutoneissuethathasrecentlyrisentothetopoftheagenda,itisthe
understandingthatorganizations,onewayortheother,havetodosomethingwith
alltheavailabledata;bothdatawithintheorganizationaswellasdataaccessiblevia
outsidesources.Thelattercanbeusedtoenhancetheproleoffansandclients.
Increasingly,fundsarebudgetedfortheimplementationofplatformsthatenablethe
contextualizationofthedatathatareharvestedfromvariousanddiversesources.
Thecompanysbusinessmodel(withitsgoalsandtargets)dictatesthenatureofthe
questionsthisplatformmustprovideanswersfor.Sothesystemhastobe
business-driven,notdata-driven.Thisisimportant.Datafordatassakeisnotthe
future,itwillleadtolossoffocusandconfusion.Theruleofthumbforbuildinga
platformofthiskind,afanbase,isbusinessrst.
Havingdataatonesdisposalisthekey.Havinganinsightinthecurrentsituationis
onething,however,itmightbeevenmoreimportanttohaveatleastsome
semblanceofanideaofwhatthefuturewilllooklikeandhowchangesinthe
organizationsstrategyandpolicywillimpacttheorganizationsresults.Datathat
reallyaddvaluetothecompanysbusinessmodelisnottheresultofharvestingand
analysis,itisthedatathathelptoformulatethecompanysbusinessobjectivesand
thestrategythatwillachievethesegoals.Howwillweleadtheprocess?Whatisit
thatwewouldliketoknow?Whatdatadoweneedandhowmustweanalyzethese
data?
Howdoesdatacollectingwork?
Datameannothingwithoutcontext.Whenputintocontext,meaninglessdatamorph
intousefulinformation,suggestinglinesofaction.Itcanbeusedtoconceptualize
anddesignmarketingcampaignsthatcanbeactivatedautomaticallyormanually.
Soresearchwhatdataareavailable,placetheminthepropercontextsotheyturn
intousefulinformationandtakeaction.
Thenextstepisafull-grownreporting,analysisanddashboardenvironment.Itis
possibletoexecutemorecomplexanalyses,tapintonewdatasourcesandtolink
observationsorphenomenathatappearedtobeunrelated.Insightswillgaindepth
andbecomemorevaluabletothecompany.Thisistheprocess,buthowdoesit
work?
Inordertoturndataintoinformationthatcanbeusedfordecision-making,they
mustbeprocessedviaaseriesofoperations.Firstofall,thedatafromvarious
sourcesmustbecollatedandintegrated.Nextstepistheassessmentofthedata
quality:dotheywarrantanyconclusions?
Whenthedataqualityjustiesfurtheranalysis,thesearchforpatternsandlinkscan
startbyretrievingthedatafromthedatabase.Termsandnamesmustbe
standardized,sothatdatafromvarioussourcescanbeprocessedasonebatch.
Furthermore,theinformationwillbepresentedinamodel.Thisisdedicated
software,especiallywrittenforreportingandanalysispurposes.
Theprocessofimprovingyourdatautilizationcomprisesfoursteps:
1.)Datacollection
Therststepincludestheretrievalofdatafromvariousanddiversesources,the
so-calleddataintegrationordataconnection.Thinkofintegratingdatafrom
52
53
systemslikeERP andCRM .Thisstepincludesthelink-uptooutdoordatasets
of,forexample,ticketproviders,merchandisers,musicandvideoservices,social
mediaandmail-outlists.Datafromallavailablesourcesarestoredinadata
warehouse.
2.)Datatransformation
Adatawarehouseistheplacewhereyoustorethedatayouhaveretrievedfrom
varioussources,includingthirdparties.Ithasseveralfunctions:thedataare
availablefaster,betteraccessible,andmoreuniform.Ithelpstodeneentitieslike
customer,turnover,etc.
Bothin-houseandthird-partysourcescontributetothedataset.Alldatasources
oftheorganization,thinkofin-housesystemssuchassupply&delivery,
accountingandCRM.Outsidesourceslikesocialmediaandticketproviders
supplyadditionaldata,thathavetobeintegratedinthein-housedatainorderto
produceauniform(thusworkable)dataset.Thetransformationofdiversedata
setsintooneuniedcollectionofdataisthesecondstep.
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EnterpriseResourcePlanning(ERP)issoftwareusedbyorganizationstofacilitateallbusinessprocesses.
CustomerRelationshipManagement(CRM)referstorelationmarketingorsalesmanagement.Itisbothaworkingmethod
andadigitaltoolthatoptimizesallcustomercontacts;itaimsatoeringeachclientapersonalizedvalueproposition,basedon
hisorherwishes.
53
3.)Dataanalysis
Dataminingisanadvancedmethodofdataanalysis.Itinvolvescomplementary
statisticalanalysisandsophisticatedalgorithms.Itisamethodofprocessingvast
quantitiesofdatathatisused,forinstance,bythemeteorologicalocein
54
weatherforecasting andbyinsurancecompaniesforriskanalysis.Itisimportant
topreparethedataandmakethemavailableinasingleformat.Thissetisthe
sourcematerialfortheanalysis.Dependingontheneedforinformation,the
analysisshouldproducepracticalinformation,and,ultimately,newinsights.
4.)Presentingtheinformation
Thenalstepisthepresentationoftheinformationresultingfromtheanalysis.
Obviously,thiscanbedoneinamultitudeofways,dependingonyourneedsand
businesspractice.Forinstance,standardizedreportsaremailedoutatxed
intervals.Dashboardsmakeitpossibletopresentinadynamic,realtimeform.A
seriesofreportingenvironmentsoeroptionsforadhocinfopresentationand
collection.
Tools
Theworldismorecomplexthanitusedtobe.Intheolddays,ahardcopyofa
reportwasanexportfromanapplication;nowfront,middleandbackoces,
applicationsandlink-ups,partnersinasupplychain,socialmedia,collaborations
withticketproviders,e-commercepartiesandsharedservicecentersareallpartof
ourdailybusinesspractice.Theworldischangingfasterandfaster,soreliable
informationbecomesessentialinordertoquicklyrespondandadapttonew
developments.
Dataoerlimitlessoptions,orsoitseems.Itbecomeseasiertocollectandmanage
datathatbecomeavailableviaacentralplatform.Softwarefordataanalysisis
gettingmoreadvancedinitsapplicationandeasiertohandlefortheuser.Ithelpsto
reducetimespentondatacollection,somoretimeisavailableforanalysisofthe
customerjourney.
54
Predictingandanticipatingonfutureresults.
Thecustomerjourneyistheroutefansorclientstravelinorderto,forinstance,
accesscontentonyourwebsiteordoapurchaseinyourwebshop.Itexemplies
howfansorclientsorientate,whatinformationtheyusefromwhichsources,and
howtheyeventuallyselect.Whenyouknowyourfanorclientscustomerjourney,
youknowhowtoservicehim.
Inordertocombinedatafromvariousdierentsources(clientsdatabase,social
mediaandwebanalytics),departmentsandsuppliershavetolookbeyondthe
digitalproductsthataretheirrstresponsibility.Thecustomerjourneyofthefanor
clientisnotastraightlinefromAtoB.Customersuseapps,websitesandsocial
channels,andswitchbetweenoineandonline.Allthesedigitaltoolshavetobe
attunedtoleadtoasuccessfulcustomerjourney.
Areold-schoolanalytictoolsstillviableinthecurrentphaseofdigitalevolution?The
answerisno.DJsandeventproducerscannolongerrelyontraditionaldata
storehouses.Formoreandmorecompanies,thenormisaninfrastructurethat
workswithunambiguousdenitionsandfullyexempliesthecustomerjourney.
Nowadays,DJsandeventproducersassembledatafromallchannels(Google
Analytics,ticketsales,merchandisesales,musicservices,socialmedia,newsletter
les,singlesign-onmodulesandallotheravailablerelevantchannels)andhandle
theseinauniedfashion.
Handlinginauniedfashionimpliesthatyouuseunambiguousdenitions,for
instanceforthemomentsofcontactwithafanorclient.Onecentraldashboard
displaysthecompletecustomerjourney,whichcomprisesmulti-channel
communicationandtheaggregateofmomentsofcontact.
Traditionalsystemsforwebanalytics,suchasGoogleAnalytics,arenotdesignedto
produceorcontextualizerawdata.Itisastand-aloneservice,whichprocessesand
optimizesdata,resultinginachartorgraph.Thisspeedsuptheprocessof
visualization,howeverpartoftheinformationislost.Thisexposestwodrawbacks.
Firstly,thequalityofthedatathatyouwanttobeprocessedbyyourcontextualizing
platformissub-optimal.Secondly,traditionalsystemsarenotdesignedforfast
output.Thesedrawbacksdisqualifytraditionalwebanalyticssystemsforinclusionin
yourplatform.
Layoutandmanagement
Youhavetofocusonthefollowingaspectsregardingthelayoutandmanagementof
anadequateinformationplatform.
Presentation
Manageability
Scalability
Thepresentationaspectlooksathoweasyandhowquicklytheinformationis
available.Manageabilitylooksathoweasyitistoaddnewsourcesataordable
costs.Scalabilitylooksatthevolumeofdatathatcanbeprocessedatxedcosts.
Settingupyourinformationplatformisnotthatcomplexanymoreand,moreover,it
canbedonealotcheaperthanitusedtobe.Thistrendistheresultofthearrivalof
reliablecloudservices.ThePlatformasaService(PaaS)conceptoersoptionsfor
datastorageanddataprocessingwithouthavingtomanagetherequiredhardware.
Furthermore,youdonothavetoconcernyourselfwithhostingtheplatform.Useof
theplatformisavailableataxedprice,frequentlyamonthlyfee.
Fanalists,isanexampleofanon-residentialcloudplatform.Itstoresdataand
processesdataintousefulinformation.
Inpractice
Theuseofdataformarketing,communicationorsalespurposesopensupvarious
possibilities.ThenecessarydatawillbesuppliedbytheDJsoreventproducers
ecosystemandevenbeyond.Theuseoftagsorparameterscanfocuson
socio-demographics,areacode,ortheindividual.Focusongeographictagsis
usuallynotrelatedtoanindividual,butaimsforaparticulartargetgroup.Data
enrichmentwithregardtothetargetgroupisgenerallyusedtoimprovethedataset
formarketingandsalesactivities.Sowhattodo?Thekeywordsare:validation,
enrichment,proling,segmenting,matching,locatinganddecisionmaking.
ValidationOneofthemainproblemsinmakingcontactwithfansand
clientsisthequalityoftheirdata:aretheyuptodate?Mutationsthatarenot
registeredorrecordedwillquicklypolluteadatasetandmakeitobsolete.It
isthereforeimportanttosafeguardtheconditionofthedataset,itshouldbe
optimum.Afterall,itisthedatathataddvalueandcontrolcosts.Save
moneyandoperatemoreecientbykeepingthedataclean,complete,
accurateanduptodate.Deleteduplicatedata,andenrichaccuratedata;try
tocompletemissingdata.
EnrichmentIfdataaremissing,itisoftenpossibletocomplement(enrich)
thedatawithinformationthatisavailableviasocialmedia.Subsequently,
youcanstartproling.
ProlingTheindividualisthebasisfortheassemblingandlinkingofall
datathatcanberetrievedfromthevarioussources:clientles,newsletter
les,socialmedia,etc.Thisshouldmakeitpossibletodisplayall
characteristicsofanindividualwithjustoneclick.Prolingisnecessaryfor
tworeasons.Firstly,itmakesitpossibletocompareallsortsofdata.
Secondly,itdoesnotdiscriminatebetweenwhatdatasetscouldbeuseful
andwhatnot,soyouwillnotnarrowdownyourchoiceofdatasetstouse.
SegmentingThereisnolongeranaveragefan.Targetgroupsoftencanbe
brokendowninvariousclustersthataskforavaryingapproach.Thesecan
bepinpointedbywayofsegmenting:fansandclientsarerepresentedby
easy-viewchartsordiagramsthatbreakdownthegroupintoeven
segments.
MatchingTheperfectproledoesnotexisteither,sodontdeneyour
querytoonarrow.Forinstance:whentheproleofthetargetgroupreads
likeFemale,27yearsofage,creditcard,highereducated,interestedin
EDMandtechnology,itispossiblethata27-yearoldmiddleeducated
womanmightbeinterestingtoo.Itpaysotoincludeinyoursearch
individualsthatonlypartlymatchwiththeperfectprole.
LocatingItispossibletovisualizetargetgroupsforanarea,saythe
Netherlands,andseewherefansandclientsareliving.Itcanhelpan
organizationtosetupanoutdoorcampaign,orattractfansorclientstoa
nearbyeventorfestival.
DecisionmakingAninterestinginsightistowhatextentthefanbaseofreal
peoplematcheswiththesupposedlyperfectfanprole.Yourfanscouldbe
femalesintheagebracketof40+,notwhatyouwouldhaveanticipated.You
canapplydecisiontreestouncovercharacteristicsofthistype.Adecision
treeisaseriesofquestionsforthefantocomplete.Eachfollow-upquestion
isdependentontheanswerstothepreviousquestions.Applyingthe
decisiontreetothecollectedfandatawillhelpyoutocategorizeyourfans.
Theresultingtreeeectivelyshowsthecharacteristicsofyourfans.
Summarized
BusinessIntelligenceshouldbeintegratedinthedailybusinessofaDJsorevent
producerscompany.Itenablesthemtomakebetterdecisionsandtosearchfor
newearningmodels.Thiscanonlybepracticalwhendataanalysisissimpleand
feasible,notlimitedbytechnology.
Technologyisnotthestartingpointofdataanalysis.Thesearethepeoplewhodo
theanalysisandthebusinessobjectivesofthecompany.Youshouldlookfora
methodtocollectdatathattyourorganizationanditsenvironment.Thereare
variouswaystostoredatacollectedfromyourwebsiteandsocialchannels,and
dierentcompaniesusedierentmethods.Third-partyplatformsareoften
appropriate,however,attimesado-it-yourselfsolutionworksaswell,ifnotbetter.
Keeponethinginmind:yoursolutionofchoiceshouldmatchwiththeexisting
infrastructure.Often,aninfrastructureiscapableofprocessingandstoringdata.If
thatisthecase,itisrelativelyeasytoextendyourinfrastructure.Nextcomesthe
choicebetweendatahostingonyourinfrastructureorviaacloudservice.Thelatter
optionispreferable,sinceitallowsyoutoaccesstheinformationwhereveryouare
(andDJsoftendotheirbitofglobetrotting).
Usewhateveryouneedintermsandanalytics(tools),andaddwhateverismissing,
stepbystep.Theadoptionwillincreasewhenyourchoiceisimplementedinthe
existingenvironment.Itisoftennotnecessaryandevenneedlesstobuildanew
infrastructure.Itmakesmoresensetoinvestinadatawarehouse(thelocationof
datastorage:inthecloud);indataminingandtheprocessingofrawdataintouseful
informationforreports;indashboardsandpublishingtools.
Theuseofdataformarketing,communicationorsalespurposesoersvarious
possibilities.TherequireddataaresourcedfromtheDJsoreventproducers
ecosystemandbeyond.Usedinthisway,thedatashouldbe:validated,enriched,
proled,segmented,matched,locatedandsupportingintheprocessofdecision
making.Itcreatesthepropercontextandsignicantlyincreasesthepossibilitiesof
relevance,reach,interactionandtransaction.
Afteryouhaveoutlinedtheproleofyourfansandclients,itispossibletoengagein
meaningfulinteractionsandbecomerelevant(again).Thechallengeistoworkout
thepropercontextbymeansofautomatedanalyses.Ifadequatelyexecuted,itwill
avert,forinstance,yourfansandclientsbecomingannoyedbyunseemlymessages
orcontent.Annoyancecanundotheinteractionanditsvalue,thesameasrelevance
cancreatevalue.
ThedatasetofaDJoraneventproducerisnotastaticentity,itisadynamic
environment.Itisnotaproduct,itisaprocess.Itneedsmaintenance.Itisopento
continualoptimization.Thedailyuseofdatarequirestheorganizationtofunctionas
ananalyticalcompanythatviewsdataasanasset,andconsidersanalysistobea
corecompetition.Thekeytosuccessistoorganizethehandlingofdataeciently
andeectively,andtoselecttherightpeoplewithintheorganizationwhocan
improvethiscompetencecontinually.
9.Companyvalueinthedigitaldomain
TheinternetecosystemisinfactabusinessecosystemasdenedbyJamesF.
Mooreinthe1990s.Moorecomparedbusinessnetworkstobiologicalecosystems.
Henoticedthatsuccessfulbrands,companiesororganizationsusedsurvival
strategiesthatcanbefoundinnaturalecosystems.Mooredenedthebusiness
ecosysteminhisbook,'TheDeathofCompetition:LeadershipandStrategyinthe
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AgeofBusinessEcosystems .Byregardingtheinternetecosystemasabusiness
ecosystem,oneactuallyseestheemergenceofnewvaluemodelsinthe
relationshipsofallpartiesthatmakeuptheinternetecosystem.
Innovationreallyisonlyonewaytorealizeanaboveaveragegrowthofvalueofthe
company,asopposedtoturnover.Itmeansyouhavetoconstantlyndnewand
uniquewaysofidentifyingandsatisfyingtheneedsoffansandclients.Thisisthe
reasonwhysuccessfulinternetcompaniessuchasGoogle,AppleandAmazonnot
justservicetheeverincreasinginternetpopulation,butinvestbillionsofdollarsin
fundamentalinnovation.Itgivesthemroomtomaneuverbeforethelawof
diminishingreturnskicksin,AnnetAris,wholecturesatbusinessschoolInsead,
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writesinHetFinancieeleDagblad ,theDutchFinancialTimes.
Integral
ThedigitaldomainandsocialmediaoertheDJexcellentopportunitiestomonitor
andanalyzehisreputation,howpopularhismusicisintermsofclicks,likesand
downloads,howpopularhisconcertsareintermsofticketsalesandon-lineviews,
andhowthecompetitionisdoing.EverymarketingandPRconsultantwillassentto
thenotionthatreputationiseverything.Nomatterhowgoodyourmusicoryour
concertis,negativereactionsonsocialsnetworkswilldamageyourreputation.It
workstheotherwayaroundtoo:anaveragetrackorgigthattriggersatremendous
responsecanearnyoubigmoney.
Bycloselymonitoringandmanagingyouronlinereputation,itispossibletodeect
negativereactionsintime.Forinstance,aquickresponsetoacommentcanresult
inwideapprovaland,asaconsequence,digitalmediavalue.Beforeyouknowit,
youhaveanewfanwhocanpromoteyourmusicorgiginhisnetwork;whoeither
listenstoyourmusiconlineordownloadsyourmusic.Obviously,thesameapplies
tofestivalsandevents.
55
Moore,J.F.(1996).TheDeathofCompetition:LeadershipandStrategyintheAgeofBusinessEcosystems.Hoboken,NJ:
Wiley.
56
Aris,A.(2015)ris,A.(2015)iley.ion:LeadershipandStrategy(Growthwithoutinnovationdestroyscompanyvalue).
Informationsourcedon21February2015:http://fd.nl/fd-outlook/1093423/groei-zonder-innovatie-vernietigt-bedrijfswaarde
TheDJsoreventproducersvaluegrowthcomesfromtheintegrationofthedigital
strategyintothebusinessoperations.Afterall,theentertainmentbusinesshas
evolvedintoadigitalbusiness,nowfancontactandclientcontacthasmoved
predominantlyintothedigitaldomain.Thecompanysvalueincreasesbyidentifying
andfulllingtheneedsoffansandclientsoftheDJoreventproducer.Thepotential
valueofaDJoreventproducercanbefoundintheinternetecosystem.The
platformoutlinedinthepreviouschapterwillmapouttheonlinebehaviorandthe
needsofyourfansandclients,aswellasyourdigitalreputation.Currently,these
insightstotranslatetomediavalue,brandvalueandpotentialcompanyvaluein
short,tocurrency.
Goodwill
Sofar,yourbiggestassetasanentrepreneurisprobablyyourbrandname.Brand
value(orbrandequity)isthenancialvalueofthebrand.Usuallyitisassumedthat
thebrandvalueequalsthefuturecashowgeneratedbythebrand.Yourbrandis
not(yet)partofthebalancesheet,howeveritrepresentsahiddenvalue:the
so-calledgoodwill.Inthenancialworld,theconceptofgoodwillisusedtoindicate
thecompanysvaluethatcantbeexpressedintermsofassetsandliabilities.
Usually,goodwillbecomesrelevantinthecaseofabusinesstakeover;accountants
andbankersviewgoodwillasthesurplusvalueofthecompanysnetworth.Inthis
view,goodwillrepresentsfutureincomeforcompanies,organizationsorbrands;not
writtenintothebalancesheet,yetpresentasknowledge,clients,brands,personnel,
etc.
Inregardoftheaspectsknowledgeandclientsofthegoodwillconcept,anew
andimportantaddedvalueemerges.Itisbasedondata.Thearrivalofthelatest
socialmediatrendsandtechnologiescreatingopportunitiesforDJsandevent
producerstostorealldatageneratedbyonlineconnectionsandconversations
createsanewperspectiveonthematterofhowtovalueyourcompany.The
discountedcashowcalculationwillremainrelevant.However,valuators,
EDP-auditorsandtransactionmanagerswillincreasinglyinvestigatethestructure
andoperatingproceduresofsocialnetworks,asbusinessconsultantPimvanBerkel
57
posesonDoelandsDigitaleWereld .
57
Berkel,P.van(2013).Achtergrond:BedrijfswaardingNextGen?(Background:CompanyvaluationNextGen?).Information
sourcedon13March2013:http://denisdoeland.com/2013/03/13/achtergrond-bedrijfswaardering-next-gen
Topofmind
Thedigitaldomainisallaboutcreatingcontentandsharingcontent.Itdemandsthe
creationofappealingandinterestingcontent,whichissharedviasocialmediasuch
asFacebookandTwitter,andbypublishingpostsonyourwebsite.Pro-activesocial
mediabehaviorwhatcanitmeantoyou,theDJoreventproducer?Publishinga
non-stopstreamofmessagesthatshowupinthefollowerstimelineisanoption.
Yournamewillbepublishedabovethesemessages,sofollowerswillseeittimeand
timeagain.Thiscreatesbrandawareness,whichincreasesyourprole(topofmind
awareness)amongfollowers.Theywillthinkofyou,ratherthanthecompetition,
whentheyarelookingforaDJoranevent.
Youprobablylearnedinschoolthatitiseasiertorememberforeignwordswhenyou
repeatthemseveraltimes.Itisthewayourbrainswork,howitprocesses
informationandstoresitinourrecollection.Yoursensorymemoryregistersvisualor
audioimpressions.Relevantimpressions,forinstanceaword,arestoredinthe
short-termmemory,whichholdsitwithoutrehearsalforjustafewsecondtouptoa
minuteatmost.Byrepeatedlyhearingorseeingthewordrehearsingititwillbe
heldlongerbyyourshort-termmemory.Whenitisrepeatedmoreoftenandfor
longerperiods,thebetterthechancesareitwillbetransferredfromyourshort-term
memorytoyourlong-termmemory.
Theverysameprocessappliestothe(brand)namesofDJs,festivalsandevents.
Youseeaname,itisheldinyourshort-termmemoryforabriefwhile,butwithout
repeating(rehearsing)itwilldisappear.Socialmediacanensurethatthe(brand)
namewillbeseenbythefanorclienttimeandtimeagain.Itisrehearsedbythefan
orclient,sotospeak,whichmakesthetransferfromshort-termmemoryto
long-termmemorypossible.This,inreturn,makesiteasiertorememberthename
andretrieveitfrommemory.
BrandawarenessisimportanttoeveryDJandalleventproducers.LetsimagineDJ
X.HeisactiveonTwitter,sohis(brand)nameshowsuponthetimeline.Oneday,an
upcomingeventislookingforDJs.TheeventproducerthinksofDJX,whosename
heknowsfromTwitter,forthe(brand)nameDJXisstoredinhislong-termmemory
andthustopofmind.
Bigbrandsadvertisetheir(brand)namealmostonadailybasis,mindfulastheyare
oftheoldsaying:repetitionisthepowerofadvertising.Itenablesbrandstobecome
topofmind.
Commitment
Currently,topofmindisbestrenderedbyengagementviathesocialmediaonoer.
EngagementiswhatFacebookisallabout.Butwhatisengagement?Engagement
canbebestdescribedasinvolvement.Afanseveryinteractionwithamessage
publishedonaDJsFacebookpage,canbeseenasinvolvement.Clickingonalink
58
toviewaphoto,liking amessage,postingareactionoracomment,orsharinga
messagealltheseresponsesindicatetheinterestinamessage.
InteractionisimportanttothemajorityoftheDJsfans.Theylikeamessageonhis
Facebookpageandshowanexplicitpreference.Afterinteractionfollowsactivation,
thisisthenextstepfortheDJ.Thisgroupof(activated)fanswantsmoreinteraction
thanjustlikingaDJonFacebook.Theywanttoreacttopostings.Thistypeoffan
wantstocommittotheDJandisreadyforaction.Youcantriggertheirresponse,
thusactivatingthefan.
Americanresearchmakesclearthatinvolvedfansaremoretransaction-prone.
Consumerswhoconnecttocompaniesviasocialmediaandbecomefollowers,turn
59
outtobeloyalcustomers,Thestudy showsacorrelationbetweensocialmedia
60
andturnover.Onthebasisofresearch ,theUniversityofBualo(NY)Schoolof
Managementmaintainsthatconsumerswhoparticipateinacompanyssocial
mediaactivitiesvisitthe(physical)shopmorefrequently.Basedonthesame
research,RamBezawada,assistingprofessoratBualoUniversity,posesthatthese
customersspendonaverage56%moremoneythancustomerswhodonotengage
insocialmedia-interaction.
Moreover,thestudypromptsBezawadatoconcludethatcompaniesshouldaim(on
socialmedia)forpersonalinteractionwithcustomersandencouragehimorherto
contribute(totheinteraction).Thisislabeledcustomerengagement.Theanalysis
ofcustomerbehaviorgenerateskeynotesforcustomerrelations,whichenablethe
companytotimelyrespondtosignsthatthecustomerisreadytomakeapurchase.
Ultimately,thisleadstoahigherconversion.Thesameeecthasbeen
demonstratedforthecorrelationbetweensocialmediabuzzandmusicpurchases:
socialengagedfansbuymoremusicoftheartisttheyfollow.Mappingthis
involvementwillincreasethevalueofbrandandcompany.
Ratios
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Facebook-userswhodenotetheylikeapageandliketoassociatewithit.Subsequently,theyreceivemessagesintheir
newsreportofthelikedperson,companyorbrand.Theyarefans,whichispublishedontheinformationpageoftheliked
person,companyorbrand.
59
Rishika,R.,Kumar,A.JanaKiraman,R.&Bezewada,R.(2013).TheeectofCustomersJanaKiraman,R.&Bezewada,R.o
associatewithit.Subsequently,theyreceiveEmpiricalInvestigation.InformationSystemsResearch,24(1),108-127
60
Coca-Colaenderelatietussensocialmediabuzzenverkoop:
http://www.vananaloognaardigitaal.nu/coca-cola-en-de-relatie-tussensocial-media-buzz-en-verkoop-2/
Theaimofbeingdistinctive,fromtheroadtothetop,istoseizeatopof
mind-positionandtomaintainit.Presently,itispossiblefortheDJortheevent
producertoobserveonlinewhatthecompetitiondoesandhowwell(orill)theydo.
Topofmindisdemonstratedveryacutelybyfanandclientbehavioronsocial
channelssuchasFacebook,TwitterorInstagram.Byusingengagementand
interactionratios,itispossibletocalculatehowinvolvedafanorclientiswithaDJ
oranevent.Thesearetheso-callednewbenchmarks.
Thebenchmarkconceptoriginatesfromthedomainofqualitycontrol.Initsliteral
meaning,itindicatesapointofreferenceforlandsurveyors.Usedguratively,it
referstoaprocedurethatmakesitpossibletocomparetheperformanceof
equipment,systemsoforganizations.Organizationsusebenchmarkingtoimprove
theirperformance,toaccountfortheiractionsandtofacilitateinspection.
Basically,benchmarkingentailsthreesteps:
1.
2.
3.
Comparingin-houseprocessesandperformanceswiththoseofothers;
Analysisoftheresultsofstep1:whydodistinctprocessesproducedierent
outcomes;
Theinformationthatresultsfromstep2isthebasisforimprovementofthe
processes.
You,theDJ,shouldmeetthechallengeandbenchmarkyourself.Viewthe
competitionasanimaginaryenemy,strivingforthenumber1positioninpopularity
polls.Itshouldbeyouraimtobeatyourcompetitorseverydayoftheyear.Theway
toachievethis,presently,istobindfansandclients.Naturally,thisisfullyapplicable
tofestivalandeventproducers.
Binding
Whatistheanswertothequestion:HowdoIbecometopofmind?Inotherwords,
howtoinuencethesubconsciousinadeliberate,consciousmanner?Inpractice,
thismeansthatyourtweetsorpostsshouldcontainrelevantcontent.The
fascinationsoffansandclientsarerelevantaswell.Afanorclientwhoisinterested
doesnotneedrepeatedmessagesthewayalessinterestedfanorclientmightin
ordertobringthepointacross.Chapter5outlinesasolidcontentstrategythatwill
helptobindfansandclients.
Thetopofmind-positionofaDJorfestivalexpressestowhatextenttheDJor
festivalisboundwiththeenvironment.SuccessfulDJsandfestivalsareinaposition
tosignicantlyinuencepersonsconcernedviatheirpersonalcommunicationtools,
theirproductsandtheirbehavior.
Knowwhoyourfansareandcreatecontentthatisinterestingtothem.Focuson
interaction.Informingthemandkeepingthempleasedisanotherpriority.Itisall
aboutbeingcommittedtofansandclients.Knowwhatisimportanttothemand
meettheircravings.Enterintoconversations.Showthemthatyoufollowthemtoo.
Thiswillleadtoahigherconversion.Inthiswayyouwillboostthecommitmentand
therebyloyaltyandthereforeviability.Rememberthis:loyalfansarethelifebloodof
yourcareer,theveryreasonthatyouhaveacareeratall.Itisthemwhopayyour
bills.
Value
Whatisyourvaluereally?Howmanyfansorclientswouldmissyouifyouwerenot
around?Doyouknowwhatyoureallymeantoyourfansorclients?Haveyou
loadedyourDJpersona?Whatcommunicationtoolsdoyouapplytobecometopof
mindinthemindsetofyourfansandclientsandtokeepthatposition?Howdo
youemploysocialmedia?Haveyoufreedbudgetforthatpurpose?Inshort,what
areyoudoingtoraiseyourbrandvalue,andthus,yourcompanyvalue?
Allthewhileadigitalmediavaluefordigital(social)channelsisbeginningtoemerge;
61
itrepresents thevalueofmessages,tweets,updates,retweetsandinteractions
thatincludeyourbusinesspartnersorsponsors.Itisimportanttocompareyour
mediavalueofyourpersonaldigitalchannelstotraditionalmediavalue.Theunitof
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measurementfortraditionalmediaiscirculationorGRPs .Untilrecently,newmedia
usedclicks,impressionsandsuchastheunitofmeasurementtoestablishits
circulationorreach.
Inadvertising,mediaexpenditureis(slowly)shiftingfromtelevisiontotheinternet,
however,thechallengeisstillhowtovalue(ineuros)thevariousdigitalchannels,in
particularwhenyouwanttomeasureallpossibleactionsoffansandclients.Digital
channelsinthiscontextmeanallyourpersonalchannels:websites,email,allsocial
channelssuchasFacebook,Instagram,Twitter,YouTube,and,forinstance,personal
digitalradiochannels.
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Doeland,D.(2015),Doeland,D.(2015),statewheninformation(Whatisthemediavalueofafestival?).Informationsourced
on15July2015:http://denisdoeland.com/2015/07/30/achtergrond-wat-is-de-mediawaarde-van-een-festival
62
ThetraditionalmethodforestablishingtheadvertisingvaluesforradioandtelevisionisbaseduponGRPs,GrossRating
Points.1GRPis1percentofacertaintargetgroup.Thetermisissuedinrelationtoratingsofcommercials,regardlessofthe
lengthofthecommercialandthesizeofthetargetgroup.
AbusinessmodelthatreliesonsponsoringdoeswelltopresenttheDJortheevent
asamediaplatformthathasasignicantreachandadittoimpact;aplatformthatis
proventobeaneectivetoolforcommunication.Allthismatterstopartnerswho
willbenetmorefromdigitalchannelsthanfromtraditionalmedia:radio,television
andprint.
Ownmedia
Thetermownedmediaisself-explanatory:mediayoumanageyourself,suchas
yourwebsiteorFacebookpage.Thereisnothirdpartythattellsyouwhatyoucan
orcannotdo:youareincharge.AnexcellentexampleofownedmediaistheDJsor
eventproducersFacebookpage.ThisFacebookpagerepresentsmediavalue.
Advertisingabrandviapaidmediastillcarvesalargesliceoanymarketingbudget.
Conventionally,advertisingvalueforradioandtelevisioniscalculatedbyusing
GrossRatingPoints(GRPs).1GRPis1percentoftheviewer(orlistener)ratingsfor
thattargetaudience.GRPgivestherelativenumberofviewers(listeners);the
absolutenumberdependsonthesizeofthetargetaudiencegroup.Theaggregate
ofGRPsequalsthegrossreachofanadvertisingcampaign.GPRsarecalculatedby
multiplyingthenetreachwiththeAverageContactFrequency(ACF).TheACFofa
televisioncampaignrepresentstheaveragenumberoftimesaviewerhasseenthe
commercial.YoucanreversecalculatetheAverageContactFrequencybydividing
theGRPs(grossreach)bythepercentageofthenetreach.Thenetreachisthe
percentageofviewersthathasseenthecampaign(channel,show)atleastonce.
Thedigitaldomainisthehomeofvariousotheradvertisingvalues.PayPerClick
(PPC)isanadvertisingmodelthatisusedforsearchengines,advertisingnetworks,
andcontent-drivenwebsitesanddittoblogs:theadvertiserpaysonlywhenthe
visitorclicksontheadandvisitstheadvertiserswebsiteorhomepage.The
advertiserpaysaminimalfeeperclick,theCostPerClick(CPC).
CostPerMille(CPM)isthefeetheadvertiserpaysperthousandviewsofhisad.
Furthermore,CostPerAction(CPA)isthefeefortheownerofthewebsitethat
publishesthead;thefeeispaidforeverysaleorinformationrequestthead
produces.CostPerActionaimsatthehighestconversionpossible.CostPerClick
generatestrac.
Whenitcomestogettingamessageouttoatargetaudience,companymanagers
usuallyhaveabetterunderstandingofvalueintermsmoneythanofvalueinterms
ofclicksoractions.Thereisnoclear-cutanswertothequestion:Whatisthe
valueofatargetaudiencethatcanbereachedviaaFacebookpage?Itisstillnot
easytoxthevalueofthetargetgroupandthedirectlinktofansonaFacebook
page.
Severalwell-knownapproachesoftraditionalmarketingareapplicabletosocial
media.Oneofthoseistheadvertisingvalue.Itispossibletoestimatethenumberof
peoplethatcanbereachedviaaFacebookpage.Whatwouldthecostsbeifyou
wanttoreachasmanyusersaspossibleviatraditionaladvertising,saybanner
advertising?Theansweris:multiplythenumberofindividualsyouwanttoreach
withanaverageCPM.Thismethodallowsyoutocalculateandtocomparethe
advertisingvalueofmessagespublishedonaFacebook-page.Itworksforother
networkstoo.
Newmedia-value
Theadvantageofworkingwithadigitalmediumisthatitisrelativelyeasytovalue
specicbehavioroffansorclients.Thisisabigstepbeyondthecurrentreportson
visitingandbuyingbehaviorthatfocusonservice,inspiration,orsales.Theirgoals
eventuallyareservice,inspirationorsalesderivedfromaconsumercentricselling
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model.TheMediaValueReport focussesonexplicatingthefansinteractionwith
yourbrand.Thisisdiametricallyopposedtopassivemediaconsumption,like
noticingtelevisioncommercials.Itisamorerelevantmannerofmeasuringtheeect
ofadigitalcampaign,helpingtoimprovethecollaborationwithsponsorsand
partnerswithregardtodigitalmedia.Youvalueandvalidatejointcampaigns,in
ordertooptimizethecampaignbyattuningittothetargetaudience.
Socialmediacanbeseenasacollectionofengagementtypes:thedegreeof
commitment,interactionandconversion.Alltheseinteractionsandconversionsare
actedoutbytheparticipantsviaactionsonvarious(social)channels,likeclicks,
likes,commentsandposts.Youcanaddthemup,afterassessingall
interactionsandconversions,normalizingtheseforthevarious(social)channels,
andgivingeachitsownvalue.Thiswaytheoverallvalueofacampaignemerges,
givingdirectinsightintohowthevaluebreaksdownbetweenthevariouschannels.
63
ed.calculatedusingvaluesbasedonassumptionswhichyoucanndhere:
http://denisdoeland.com/2015/07/30/achtergrond-wat-is-de-mediawaarde-van-een-festival
Themostimportantchallengeistheassessmentofareliablemediavalueperaction.
NewparameterssuchasClickPerComment(CPc),ClickPerFanContact
(CPFC)orClickPerRetweet(CPrt)comeintobeingandhavetobe(re)calibrated.
Youcandothisbyusingknownadvertisingcostsofotherplatformsandsocial
media.IAB-sanctionedstandardrates,plusreportsfromvariousagencies,areuseful
too.Thetablebelowgivesaclearexample.
Valuingthecompany
Likeanycompany,adigitalnetworkscorporatevaluationisdeterminedbyitsability
togeneraterevenuefromthenetwork.Manynetworksreceivemoneyfrom
advertisers,yetothernetworksrelyonuniquemodelsbasedonfunctionalityorthe
valueofvirtualcommoditiesandservices.Thenalvalueisestablishedbyissues
suchas:howmuchdoadvertiserspayperuser;howmuchusersarepreparedto
payforpremiumservices;andhowmuchturnoverisgeneratedthroughthird
party-platforms,likee-commerce(ticketsandmerchandise),streamsand
downloads.
You,theDJ,areacompany.Thearrivalofthelatesttechnologiesandtrends
oeringDJstheopportunitytocollectandstorealldatageneratedbyonline
connectionsandinteractionsmakesitobviousthatthenotionofcorporate
valuation,andtherefore,yourDJcompany,ischanging.Withalittleeortitis
possibletodeterminethefansvalue.Whatisitthatyouwanttovalue?Thereis
morethanonewaytodoso,andfromvariousperspectives.Valuationinthedigital
domainmustbelookedatfromthenancial,marketing,media,(e)commerce,or
customerservicepointofview.
Inabusinessmodelthatreliesforanincreasinglyimportantpartonsponsoringand
advertising,itisvitalthatyou,theDJ,showthatyouareineectaplatformor
networkthatboastsasignicantreachandimpact,availableforeective
campaigning.Wehavealreadyseenwhatcontentdevelopmentyieldsintermsof
earnedmedia(i.e.yourpersonalnetworkswithinyourecosystem)inrelationtothe
purchaseofreachandpaidmedia(i.e.traditionalmedia,plustherestofthe
internet).Thisgivesyou,theDJ,theaccurateinputtodetermineyourvalueforthe
nearfuture,andthusyourmarketpotential.
Itreallyallcomesdowntofanbehavior.Whenprivatecompanies,likeFacebookand
Twitter,gopublic,investorsarekeentoknowthevalueofeachuserinrelationto
certainbrands.Theinformationusersleavebehindinthedigitalnetworksisof
enormousvalue.Before,itmighthavetakenyearstocollectandanalyzethis
information,whilesomeinformationwasnotavailableatall.Researchersand
marketingmanagersmeanwhilehavecometorealizethatpreferencesandbehavior
aredetrimentalfactorsforunderstandingtheconsumer,andtheyarewillingtopay
forthisinformation.InthiswayFacebooksandTwittersstockvaluewasstipulated.
Newwayofvaluation
Financialadvisorshavetoevaluatewhyfansandadvertisersspendthisamountof
timeandthatkindofmoneyinyournetwork,beforetheyareabletostipulatethe
properparametersforthenetworksvaluation.Rememberthis:you,theDJorevent
producer,areanetwork,evenifthefansoriginatefrombeyondyourwebsite.
Currenttechnologymakesthevalueofownedandearnedmedia(i.e.yourpersonal
internetecosystem,yourpersonalchannels,inshort,yourpersonalnetwork)much
moretransparentandmucheasiertomapandmeasurethanindaysofold.
Thisnewwayofvaluingacompanyimpliesanewpolicyforyou,theDJorevent
producer.Muchmorethanbefore,datafromvarioussourcesandvariouslinked
applicationswillbereviewed.Whenyouareabletoconvertthesedataintodigital
mediavalueanddirecttransactions(suchasticketsalesandmerchandisesales,
paid-formusicdownloadsandmusiclisteningviastreams),thesedatacanbe
includedinthecorporatevaluation.
Digitalnetworksarenetworkswhichusersrelyonrecommendationsforproducts,
music,sport,andothertopicstheyareinterestedin.TheDJsnetworkisoneof
thosetopics.Asmoreandmoreplatformsbegintopublishphotosandlinkthese
photostovariousoptions,itbecomespossibletomeasureandvaluethevisual
contentasakindofword-to-mouthadvertising.Itisclearthateventuallythedigital
networksofDJswillbeusedmoreandmoreforcontentmarketing;advertiserswill
deploythesenetworksfortheirmarketingeorts.
Soeachfanismorethanjustapotentialnewvisitortoyourgigsoranewsetofears
foryourmusic.Youcanoerdirectaccesstothefaninyournetworktoawide
rangeofcompanies,brandsandmedia.Assoonasyourealizethatyourpersonal
digitalnetwork(i.e.yourecosystem)isahotbedofinformationaveryspecialand
rarevolumeofmarketandconsumerdataitbecomeseasiertovalueyour
networks,thatis,yourecosystem,which,atrstglance,appearstobea
time-consumingpursuit.ThusyoulearnyournetworthasaDJ.
SpinninRecordsandID&T
In2014,DDMCAreviewedthedatageneratedbythevarioussocialmediachannels
usedbySpinninRecords.ItisevidentthatSpinninRecordshasbuiltamultitudeof
fansandfollowersonseveralsocialmedianetworks.However,thecollected
SpinninRecordsdata,aspublishedinthereport,showthatthelabelhasno
relationshipwithitssupporters.TheSpinninRecordsorganizationismainlyactivein
termsofreceivingmessagesanddata,yetitappearstobereactiveinbuildinga
relationshipwithitssupporters.Fansactuallywanttobeengagedwiththebrand.
Theylongforarelationship.
Creationofvaluebymeansoftheinternetandsocialmediacomesdowntobeing
abletostart,disperse,maintainandoptimizecurrentandnewdigitalrelationson
variousinternetplatformswhere(in)directlyandinaprovablemanneradditionaland
prospectivenetcashowswillbegenerated.
Thewordsstart,disperse,maintainandoptimizerefertothecostsoflabor
andmeans.Moreover,itallrevolvesarounddigitalrelationsonvariousplatforms.
Theoperativewordisdigital,itsetstheseeortsapartfrommailinglistsorother
traditionalmarketingactivities.Obviously,asisthecasewithoinemarketing,
variousdigitalplatformsmayoverlapandsomefollowersmaydropout,the
so-calledchurnrates.PeopleonTwittermaybeactiveonFacebooktoo,andvice
versa.
Byimprovingtherecording,structuringandanalyzingofthecollecteddata,itis
possibletodeploythesedatamorepurposefully.Thusanadditionalearningmodel
canberealizedforSpinninRecords,whichwillfurtherincreasethevalueofthe
64
brand.DDMCAhasexaminedanddetermined thatanadditional7.5millionEuro
(estimatefor2013)and40millionEurofor2016(seeappendices).couldbe
generatedfromthedataofSpinninRecordsdigitalplatforms.Theadditional
earningmodelsoriginatefrommakingthecontextofthedataavailableto
commercialpartieseagertobepresentinSpinninRecordsecosystem.This
increasesSpinninRecordscashow.Moreover,itbenetsthevalueoftheconcept
bycreatingpotentialgoodwill.
IntegrationofbrandsoccursinthenetworksofID&Tfestivalsandbrands.Byusing
onespersonaldomainandsocialmedianetworksinanadvancedandthoughtful
manner,itispossibletocreatenewanddigitalprolesfromthedataofID&Ts
supporters.Inadditiontodemographicdata,interestdataoriginate,asoutlinedin
65
thepaper,TheVoiceanadditionalearningmodel .Bysimplylisteningtothe
supporters,itispossibletoestablishwhatID&Tfanorfollowerisinterestedinwhat
productgroup.
66
ThepaperDoesdatanallyhaveaprice? pointsoutthatdatacanbevaluedand
linkedtoaprice.ThepaperdelvesdeeperintotheacquisitionofID&TbySFX
Entertainment.ThevaluationofID&TbySFXEntertainmentanticipatesclearlyonthe
notionthatthedatageneratedbyfutureID&Tfestivalsandeventswillbenet,i.e.
createvaluefor,theorganization,worldwide.Theacquisitionfee,rathersteepatrst
glance,couldintheoryberecoupedin2.5years,aslongasathoroughand
accuratesocialmediaanddigitalstrategyissecuredforthewholecompany.
64
ForthecalculationofthevalueofSpinninRecordsconnections,seetheappendices.
Berkel,P.van,Doeland,D.(2013)Informationsourcedon12February2013:
http://denisdoeland.com/2013/02/12/paper-the-voice-een-aanvullend-verdienmodel
66
Doeland,D.(2013).Doesdatanallyhaveaprice?.Informationsourcedon2July2013:
http://www/emerce.nl/cases/heeft-data-prijs-gekregen
65
ThenextstepID&Tshouldtakeistocollectandtoanalyzethedatainorderto
formulateafollow-upstrategyoracompletelynewstrategythataimstoincrease
futurerevenue.FashionbrandslikeDiesel,Replay,Levis,DenhamandDolce&
GabbanacanbelinkedtoID&Tssupporters.Thisappliesaswelltotelecom
providerssuchasVodaphoneandT-Mobile;beerbrandslikeHeinekenand
Budweiser;softdrinkssuchasCoca-ColaandPepsi;andtechbrandslikeApple
andMicrosoft.
Infact,itismoderatelyeasytodistilfromtherelationshipswithitssupporterswhich
brandscouldbeinterestedintheintegrationwithID&Tssupporters(see:The
67
matchingofartistsandbrands on#D2Waswell).Obviously,thiscomesataprice.
Aquickglanceatsomenumberspublishedinthepaper,itcanbeestablishedthat
thevisibilityonTomorrowlandsFacebookpagerepresentsamonthlyadvertising
valueofsome350,000Euros.JustimaginewhatTomorrowlandstotalecosystem
couldbevaluedat.
Dataarethenewgold
Sodataarethenewgold.DataarethenewrevenuegeneratorforDJsandevent
producers.Fansandclientsarethebiggesttrump.Thechallengeistostayintouch
andmaintaintherelation.Thedatathusgeneratedareinvaluable.Youlosevalueby
notbeingabletorecordandstoredata,datayouthereforecannotuse.Presently,
thebiggestbarrierforDJsandeventproducersisalackofinsight.
Withoutdecentandtrustworthyinformation,acompanyisillpreparedforproper
decision-making.However,thetempoofthecurrentbusinesscompetitionand
internetecosystemdemandagileresponses.Dataareaninexhaustiblesourceand
oerenormousopportunitiesforgaining(critical)insights.Infact,thisisthemoment
totapinto,cultivateandrenethepowerfulpossibilitiesofthisessential,valuable
source.Inthisrespect,itcomparestoanequallyimportanteconomic
resourcecrudeoil.
DJsandeventproducerswillhavetomapoutandvalidatethedatatracofthe
insideandoutsidedigitalhighways.Animportantaspectis:willthedigitalstrategy
produceadirectcashowordirectnancialgain?
67
Doeland,D.(2014)Uitgelicht:Hetmatchenvanmerkenenartiesten.(Thematchingofartistsandbrands).Information
sourcedon5November2014:http://denisdoeland.com/2014/11/05/uitgelicht-het-matchen-van-merken-en-artiesten
Itisclearthatonlinemarketingviatheinternetecosystemwillproducecashows
thatareeasierandbettertomonitorthanoinemarketingcan,forinstanceby
directmailorutilizingtheconnectiontoafanorclient).Moreover,itisquitepossible
thatthereachwillincreasesincefansandclientssharetheirsociallivesviasocial
media,soyougetthroughtonotjusttheuserbuthis(orher)friendsandnetworks
aswell.Thissignicantlyincreasesthepotentialprotability.Furthermore,current
digitaltechnologymakesonlinemarketingmoretransparentandmoremeasurable
thanbefore.Theadvancedtoolsandplatformsthatwillsupportyouronline
marketingeortsaredescribedinthepreviouschapter.
Weareinthemidstofadigitalrevolution,sometimescalledthesecondindustrial
revolution.Althoughdiscountedcashowwillremainthebasisforcompany
valuation,itisclearthatcurrentbusinesspracticesofcompanyvaluationareunder
review.Pastresultsandyesterdaysguresarenoguaranteeforfutureresults,
increasinglylessso.TheDJoreventproducerwhohashisinternetecosystemin
ordercanstrikegold.Hehastocareforhisfanandclientsrelations,andsecureand
capitalizeondata.
Asoliddigitalstrategyaddsvalue
68
InTheNetherlands,overnineoutoftenpeople(92%) haveatleastonesocial
mediaaccount.Worldwide,thenumbersarestaggering:Facebookalonehas1.393
billionusers(March2015).Yourfanbasei.e.theplatformoutlinedintheprevious
chapterwillenableyoutoreachfans,clients,members,subscribersandentrants,
whocanbeseparatedonthebasisofgeography,gender,age,interestandmore
in-depthprolecharacteristics.Thebettertheprole,themorevaluableyour
networkis.Themorefanandclientdata,themorevalueyournetworkcangenerate.
Themorerelevantyournetworkscontent,themoreappealingitwillbetotheusers.
Itsmostimportantaspectsareengagement,interaction,andfunctionality;these
havetobeuptopar.Weallarefamiliarwithexamplesofclick-and-win,
like-and-win,comment-and-win-nothing,share-and-get,andsimilarcampaignsthat
helptospreadthecontentamongthefansortheclientsfriendsinorderto
optimizethereach.Unfortunately,thistypeofactivitiescorrodesthequalityaswell.
Thenetworksrelevance,funandentertainmentvaluedecreasesandwilleventually
disappear.Afterall,thelessfunanetworksbecomes,thequickerthecurrentfanor
clientoptsforanalternativenetwork.
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Multiscope(2015)Facebookgebruikdaaltin2015(In2015,useofFacebookisdecreasing).Informationsourcedon18
February2015:http://www.multiscope.nl/persberichten/facebook-gebruik-daalt-in-2015.html
Itistheobjectiveofthedigitalstrategytoliftyourorganizationtoadigitallymature
levelbywhichvalueisadded.Surelyyou,theDJoreventproducer,areabusiness.
Bygrowingtoadigitallymaturelevelyoustrengthenyourcompetitivenessbecause:
Revenueincreasesthroughhigherandbetterconversions;
Eciencycutscosts,soprotincreases;
Risksarediminishedviaabetterrelationwith(morecontrolover)fansand
clients;
Anewrealityiscreated
Theseresultsarepillarsinthecreationofcompanyvalue,accordingtoDaveChaey
69
(professorandauthorofthepaperBusinessInformationManagement-Improving
PerformanceUsingInformationSystems,withco-authorSteveWood)andDon
Marchand(professorandauthorofMakingtheInvisibleVisibleHowCompanies
70
WinwiththeRightInformation .
Thebusinessworldisincreasinglybecomingawareoftheunderstandingthatitis
notphysicalcapital,butknowledge,insightsandideasthatreallydeterminethe
valueofacompany.Apparently,itisstillnotobviousforDJsandeventproducersto
makethefanorclientrelationviavariouscontacts(includingdirectcontact),
sourcesofdata,interactions,allsortsofscoresorwhateveryouhavecentralto
thecompanyvalue.Yetitistheonlywaytorealizeanaboveaveragegrowthinvalue
(asopposedtogrowthofturnover):constantlyndingnewanduniquewaysto
identifyandfulllthefansandclientsneeds.Thisisthenewbusinessmodelfor
DJsandeventproducers.
Knowledgeisthefoundationofpresent-daybusinessconduct.Inthepast,a
companysvaluewasdeterminedprimarilybyphysicalcapital,suchasmachinery,
hardwareandmeansoftransport,presentlydata-generatedknowledgeisbecoming
themostimportantassetofmanyacompany.
69
ProfessorandauthorofbookslikeE-businessandE-commerceManagement,BusinessInformationSystems,Internet
Marketing:Strategy,ImplementationandPractice,Groupware,WorkowandIntranetsandeMarketingeXcellenceandTotal
E-mailMarketing,andco-author(withSteveWood)ofthepaper,BusinessInformationManagement-ImprovingPerformance
UsingInformationSystems.
70
Marchand,D.A.,Kettinger,W.J.&Rollins,J.D.(2001).MakingtheInvisibleVisible:HowCompaniesWinwiththeRight
Information,PeopleandIT.Hoboken,NJ:Wiley.
Datathatarenotstoredinyourpersonalfanbase,butissavedinthenetworksand
servicesofthirdparties,iscrucial;tomanyorganizations,however,itisnoteasyto
getyourhandsonthesedata.Thismeansthatyourcompanylosespartofitsvalue
whenanetworkislosttotheecosystem,likethedemiseofHyves,thelocal
equivalentofFacebookintheNetherlands.Thatisawasteandapity.Byinvesting
intheobtaining,reservingandutilizationofdatayoucansecurethebaseofyour
companyandunderwriteitscontinuity.
10.Transformingintoadigitalmaturecompany
Shoppingstreetsboardedup.NewbusinessmodelslikeUberthatwereunthinkable
veyearsago.Fansandclientsclingtotheirsmartphones.Socialmediacanmake
orbreakaneventoraDJ.ThesetimesaretumultuousforDJsandeventproducers.
Everyoneinvolvedintheentertainmentandmusicbusinessisawareofthelimitless
optionsoeredbydigitaltechnology,buthowtonavigatetheworldofdisruptive
innovation,bigdata,theinternetofthings,cloudcomputing,customerjourneysand
anarrayofrelatedconcepts.
Thedigitaltransformationaectssomebusinessesearlierand/orharderthanothers.
DJsandmusiceventproducersandthemusicbusinessingeneral-wereamong
thersttofacecompetitionoriginatinginthedigitaldomain.However,the
digitizationofthemusicbusinessisstillintensifying,withyetmoreanddeeper
changesonthehorizon.ItcreatestheneedforDJsandeventproducersto
assembleandintegratenewrolesandpracticessopeoplearebetterequippedto
cooperate,distributecontentandstructureprocesses.
Stagnantwaterwillrot,asweallknow.Lastingsuccesswillprimarilybedetermined
bytheeortsofmusicandentertainmentcompaniestoanticipatechangeinthe
digitaldomain.Innovationofproducts,servicesandbusinessmodelsisessentialfor
theDJsandeventproducersprofessionalcontinuityinaneraofdisruptive
technology.Digitalforcesevolveovernightanddisrupttheplayingeld,yetatthe
sametimecreateopportunitiesforDJsandeventproducerstomeetthechanging
demandsoftheirfans,clients,employeesandsuppliers.Theincreaseininteraction
betweendailyrealityandthevirtualworldoftheinternetcreatesmassivechange
andnew,digitalopportunities.Thesearebroughtaboutbytherapiddevelopments
insocialmedia,dataanalysisandmobileapplications.
DJsandeventproducersmakemoreandmoreuseoftheoptionsoeredbydigital
technology;someofthemarerestructuringtheirorganizationanditsbusiness
practicestomeetthenewreality.TechnologychangesthewayDJsandevent
producersrelatetofansandclients;ittouchesuponnearlyallinternalbusiness
processesanditevenresultsinanewbusinessmodel(asoutlinedinChapter3)that
willhelptomaximizetheprotstobemadefromthenewtechnologyandthe
opportunitiesitcreates.Thiscanresultinrevenuegrowth,moreecientand
eectivebusinessprocesses,andthedevelopmentofnewproductsandservices
forexistingornewmarketsandfansandcustomers.Whendoyoureachthestatus
ofdigitalmaturity?Andhowdoyou,theDJandtheeventproducer,transformyour
organizationintoadigitallymaturebusinessventure?
Starbucksanddigitalchange
ForStarbucks,thedigitizationofthecompanyandbrandisasessentialtoits
continuingbusinesssuccessasthecoeeitsellistheociallineintheCEO-room
ofthecoeeoutlet.ResponsiblefortheimplementationofStarbucksdigital
71
strategyistheChiefDigitalOcer,AdamBrotman .Linkingtoclientsviathe
StarbucksDigitalNetworkisStarbucksmethodofbuildingthebrand.Starbucks
usedtodevelopitsbrandviaitsemployees.Smilingfacesandgreenapronslargely
denedthecompanysimage,thebrandanditsmission.
Thesedays,thebaristasarestillatthecenterofStarbucksin-storeexperience,
howeverthecompanyemploysitsarsenalofdigitaltoolstobuildamorelasting
relationshipwithitsclients.Withitsextensiveproductrangeand18,000storesin
over60countries,Starbucksappliesdigitaltostimulategrowth.Itisaradical
decisiontoappointaChiefDigitalOcer.
Starbucksisdismantlingits(stand-alone)datasilosinordertoconnecttoandbuild
itspositionintheinternetecosystem.Ithasidentiedthedomains,networksand
devicesitwillservewithinitsecosystem.Moreover,Starbuckshasidentiedthe
networksitwillconnectto.Thecompanyisabletocollectdataviaitssinglesign-on
72
buttonthatenablesclientstologinviatheStarbucksstoresWi-Ficonnection.
Starbuckshasintegratedthissinglesign-onbuttoninallitsdomains,andall
existingandfutureStarbucksapplications.Thebuttonisastandardfunctionof
futurehomepages,tobeintegratedwiththevarioussocialchannels.Itisallameans
toachievetheultimategoal,whichislinkingthesocialidentityofitsfansandclients
totheStarbucksidentitythatfansandclientsfabricateviaWi-Fi,theStarbucks
domainsoritsapps.
71
Since2009,AdamBrotmanisChiefDigitalOcer,ExecutiveVicePresident,DigitalVenturesatStarbucks.
Single-sign-on(SSO)softwareenablestheusertolog-intoanetworkandaccessitsmultipleapplicationsandresources.For
example:loggingintoappsfromamobileFacebookaccount
72
Connectionsandinformation
Thesemanticwebprovidesaframeworkandaninfrastructureforlinkingonline
publishedinformation,thusfacilitatingthecreationofnewinsights.Starbucksis
buildingwebsitesandapplicationsspecicallyforitsinternetecosystem,thus
facilitatingfullaccesstothesemanticwebanditsfunctionalities.
StarbucksoersitscustomersinterestingdigitalincentivesviatheStarbucksDigital
Network:freeWi-Fiandthein-depthknowledgeofpremiumcontent.Since
Starbucksdoesnotholdback(goesall-inwhenitcomestoits)onitsdigitalstrategy,
itobtainsinsightintothedesiresandneedsoftheconnectedconsumers,whilethe
brandisandremainstopofmind.StarbucksCDO,AdamBrotmansays:Wehave
developedatechnology-richhub,aspowerfulastheretaileritself.Itisimpossibleto
predictwhatthedigitalhuboftheplanetsbiggestcoeeretailerwillproduce.
Variouscombineddigitalteamsaredeepintoinnovation,toextendthebasevia
socialmedia,amongothers.Starbucksvisionforinnovation:Onebrandone
digitalstrategy.Transformingfromanalogtodigital,Starbucksisrapidlybecoming
adigitaldrivenorganization.
Digitaldrivenorganization
Thejourneythroughthedigitaldomainhasmanyroutes,allleadingtotheultimate
goal.Theorganizationmustsetasitsaim:tobecomeadigitallymatureorganization.
EveryDJoreventproducerandhis(orher)organizationwilltravelitspersonalroute.
Itisaboutmatchingyourorganizationanditsvaluepropositiontothedigitaldomain.
Afterall,asaDJoreventproduceryouareadecentralizednetworkintheinternet
ecosystem,aswehavepreviouslyestablished.Inthisway,youwilltraveltheroadto
adigitaldrivenbusiness;inotherwords,adigitaldrivenorganization(business).
Whatyoushouldnotdoistoradicallyoverhaulyourcurrentbusinessmodelright
away.AskyourselfasaDJoreventproducerrst:howdoIaddvalueformyfans
andclients?Andwhatdigitaltoolsareatmydisposaltoservicemyfansandclients
evenbetterandmoreecient?
Theroadtoadigitaldrivenbusinessimpliesinvestinginthetransformationtothe
newbusinessmodel,orexploringtheoptionsofnewearningmodelsthatcanbe
addedtoyouroperationinordertomakethechangetothenewbusinessmodel.
Youandyourorganizationwanttoapplytheoptionsofthedigitaldomaininorderto
addvaluetoyourfansandclients.Someorganizationsoertheirexistingproducts
andservices;byaddinganextrachanneltheyaddextravaluetothefanorclient.
Someorganizationsoptfordeployingdigitalservicesinadditiontotheirexisting
productsandservices.Nikeisaneexampleofanorganizationthatputseortinto
anewbusinessmodelwithoutradicallychangingitspractices.Inadditiontothe
traditionalNikeproduct,sneakers,clientscancustomizetheshoestotheirliking
andtasteonline.
NoICT
Thesedays,mosttransformationswithinorganizationshaveadigitaldimension.The
digitizationofanorganizationisoftenthedominantdriverofchange.Thedailylives
ofallofusarerapidlybecomingmoreandmoredigital,sinceweinteractviasocial
media,mobileinternet,smartphonesandtabletsmoreandmoreofthetime.
Technologycanhavetheeectofheadlightsoncrossingwildlife:itcaptivatesintoa
freeze.Mostquestionsaboutdigitalchangeareabouttechnologyandsystems.Isit
aboutworkingwithcomputers?ThatsICT,isafrequentlineofthought.Thatisa
mistake;onejustfocusesoncomputersandforgetsaboutworking.Oneforgets
toaskthequestion:Whateectwilldigitizationhaveonemotionandsenseof
purpose?
Inpractice,digitalchangeisoftenregardedintermsofsoftwaredevelopmentand
systemautomation.Yetmostofthetimeitistheprocessesthathavetochange.The
mostimportantplayersintheseprocessesareandalwayswillbepeople,notthe
computersandsoftwarethataresupposedtosupportpeople.Thetechnology
shouldttheprocess,notviceversa.Aswehaveconcludedpreviously:technology
isnottheend,itisthemeanstothisend.
People-centered
DJsandeventproducerswhocametoprominenceinthe20thcenturyare
strugglingtomakethedigitaldrivenchangethatisnecessaryinordertohavean
impactinthe21stcentury.Theygetdigitaltechnologyandtheyhavegoodideas,
yettheyrunintoproblemsexecutingtheseideas.Moreover,theyhavebeenusedto
workingwithinanhierarchicalframe,focusedonthepreservationofwhatexistsand
restrictingrisk.Thesetwocharacteristicshinderadaptingtochangeandacquiring
newskills.
Digitizationchangesthebehavioroffansandclients,thebusinessmodelandthe
DJsoreventsproducerspositioninthevaluechain.Thetechnicalimplementation
ofnewdigitaltechnologiesisimportant,yetnotcrucialtosuccess.Afterall,the
transformationitinitiatesispeople-centered.Thetransformationtoadigitaldriven
businessororganizationimpliesafundamentalchangeinthinking,actingand
organizing.Managingtransformationmeanstoinuenceinasmartand
sophisticatedway.Thismeans:notfromapositionofcontrolandcontainment,but
inallowingforroomanddirection,andcreatingspaceforinnovation.
Ifanorganizationsetsouttotransformtoadigitaldrivenentity,itmustfocusonthe
strategicimportanceofinformationinthedigitaleconomy.Thismeansthattwonew
divisionswillsupplementtheorganization:datamanagementanddigital
management.Digitalmanagementisresponsibleforthefansordigitalclient,and
overseesboththedigitalstrategyandthetechnologytocreateapositivedigital
experience.Datamanagementsfocusisdata;itwillusetheexplodingvolumeof
dataandanalyticstotestandimprovedecision-making,inordertocreatenew
opportunities.
Goodtogreat
73
Inhisbook,GoodtoGreat,whysomecompaniesmaketheleapandothersdont
,JimCollinspointedoutthatsuccessisnotanaccident,butaconsciousdecision
bytheleader.Collinsandhisteamexaminedwhatisdierentorspecialabout
companiesthathavegainedasignicantedgeonthecompetition.
Foryears,ateamofAmericanscientists,ledbyCollins,examinedvariouslinesof
businessin-depth,bothintermsofquantityandquality.Itresultedinamodelfor
transforminggoodcompaniesintogreatcompanies.Collinsbookdescribesin
detailtheapproachthatledtohismodel.Theresultofhissurveycanbeusedasan
actionplanforanysuccessfulcompany,organizationorbrand.
73
Collins,J.(2012).GoodtoGreat:WhySomeCompaniesMakeTheLeap.NewYork,NY:HarperCollinsPublishers.
Collinssurveyfollowed1,435goodcompaniesforfortyyearsandexaminedtheir
performances.Collinswaslookingforthefewcompaniesthatbecamedistinctiveas
great.Hewantedtoprovideinsightintosuccessfulchange.Whathisndingsboil
downtoisthis:forgeteverythingyouhaveeverlearnedaboutwhatittakestobe
successfulandhowtocreategoodresults.Collinswantsyoutobeawarethat
(nearly)allrequirementsforthecreationoflarge-scalechangearemyths:
Themythofurgency:thismythposesthatchangeonlystartswhenacrisis
islooming,acrisisthatconvincesunmotivatedemployeesoftheneedto
acceptchange;
Themythofstockoptions:stockoptions,topsalariesandbonusesare
incentivesthatlubricatethewheelsofchange;
Themythoffear-drivenchange:thefeartolagbehind,thefeartosee
otherswin,thefearofmonumentalfailurethesewilldrivechange;
Thefearofacquisitions:youcanbuyyourwaytogrowth,thusbuyingyour
waytogreatnessvianumbers;
Themythoftechnologydrivenchange:thebreakthroughyouarelooking
forcanbeeectedbytheimplementationoftechnologythatwillgiveyou
theedgeoverthecompetition;
Themythoftherevolution:greatchangesmustbeextreme,
heart-stopping,painfulandhugelydisruptiveevents.
WecandiscernallofthemythsmentionedbyCollinsinthepracticeofdigital
change,aswellasthechangesaDJoreventproducerfacesconcerninghis
participationinthemicroandmacrointernetecosystem.However,forgetabout
thesemyths.Theinternetecosystemhasitsownrulesofdigitalchange,which
changeastheyplayout.Contrarytothetechnologydrivenchangemythandthe
revolutionmyth,theinternetobviouslyisatechnologicalchangethatis
revolutionaryinnature.ThecontextofCollinsmythsisthis:theDJorevent
producershavetocloselyfollowthechangesthataretheresultofthe
implementationoftechnology;andinstitutedisruptingprocessesstepbystep,with
fansandclients,andtheorganizationitself.
Mindset
Itisimportanttoexecutethetransformationtoadigitalmaturecompanybymoving
insmallstepsintherightdirectionasopposedtogettingstuckinlarge-scale,
complexanddiculttomanageimplementationprocesses.Thefundamentalidea
behindtheimplementationofdesiredchangemustbethereductionofcomplexity.
Thenewsimplicityiswhatyouareaimingfor.
Thechangesofourtimesaredrivenbytechnology,yetpeoplemakethedierence.
ThedigitizationoftheDJoreventproducerrequiresatransformationofthe
organization,itsprocessesandsystems,yetaboveallitasksforapersonal
transformation,yourmindsetandovercomingfear.
Ourmindsetisacollectionofprinciplesandconvictions,bothconsciousand
subconscious.Theseprinciplesandconvictionsdeterminewhatwedoandwhatwe
dont.Wehaveacquiredtheminthecourseofourlivesbywayofupbringing,
education,peergroups,personalexperiences,etc.Principlesandconvictions,our
mindset,immenselyaectlearninganddevelopment,CarolDweckwritesinher
74
bookentitledMindset .Shedistinguishesbetweenthestaticmindsetandthe
growingmindset.Youwillbeamazedbyhowstaticourmindsetcanbeandtowhat
extentitstemsourpersonalgrowth.
Adigitalgrowingmindsetistheconvictionsthatyou,theDJofeventproducer,are
partofadigitaleconomy,operatingonadailybasisinadigitaldomainthat
connectsyoutofansandclients.Thisdigitalgrowingmindsethasdistanceditself
fromthestaticmindset.
Itisscarytosaygoodbyetotheanalogmindsetofold.Itisthefeartolosewhatyou
knowandwhatyouhave,andnotknowingwhatyouwillget.Managementisan
importantsuccessfactorwhenyoudecidetoengagetheorganizationintheprocess
ofdigitaltransformation.Itisvitaltoprovideroom(forconsultation,forinstance)and
direction.Itispreferabletolinkthetransformationtotheprimaryprocessof
interactingwithfans,clients,providers,partnersandcompetitors.Themottois:
maketheorganizationresponsibleforthetransformationandreducecomplexity;it
willmakechangeeasierandmorenatural.
74
Dweck,C.S.(2013)Mindset,dewegnaareensuccesvolleven.(Mindset,theroadtolivingasuccessfullive)Amsterdam:
SWP.
Facts
Assumptionsmustbefoundedonfacts,notspeculation.Itimpliesthatthe
organizationmustbeopentodiscussion,whichhelpstoscrutinizethesituationat
hand:thedata,andhowtocontextualizeandinterpretthesedata.Itworksasa
realitycheck.Dotheplanandtheenvisagedapproachmatchwiththefacts?Check
themarketsituationandtheinformationthemarketsupplies,andmonitorthe
75
development oftheinternetandthetoolsforwebanalysis.Inthisdayandage,the
challengetoovercomeforDJsandeventproducersisthelackofinsights.Without
uncorrupted,reliableinformationanorganizationisillequippedtomakeproper
decisions.Thisvitalinformationismandatoryinordertosurvive,letalonethrive,on
therapidlyevolvingplayingeldofthedigitaldomainanditscompetitivenature.
Dataareininexhaustiblesourceandanexcellentopportunitytodrillfor(critical)
insights.Thisisthetimetotapinto,cultivateandrenethepowerfulopportunitiesof
thisessentialandpricelesssourcethedigitalequivalentofoil.Datawillhelpto
mapoutblindspotsinthestrategicplan.Youandyourorganizationhavetodevelop
anattitudethatwelcomesfacts-baseddiscussion.Thisattitudeisttingforan
digitaldrivenbusinessintheinternetecosystem.
Collinstips
76
Collinsgivesacoupleofpointerswhicharetranslated fortakingpartintheinternet
ecosystem:
1.
2.
3.
4.
Leadtheorganizationbyaskingquestions,notbygivinganswers.Itworks
foremployees,aswellasfansandclients,andtheavailabledata.
Usetheensuingdiscussion(withemployees;fansandclients;data)toattain
anadequateanswertothequestion,nottocreateasupportbase.
Analyzeproblemsandmistakesmadebyemployees,fansandclients,and
data,tolearnfromthem,notforndingtheculprit.
Organizeandsetupredags,linkedtoindicatorsthathelptotimelynotice
mistakesorbaddecisions,inordertoactuponthem.Usedataforguiding!
Itisasubtlebalancebetweenassumptionandreality.Collinsanalysisshowsthe
trickistokeepfaithintheultimatesuccessoftheventurewhilebeingopentothe
harshrealitiesofbusinessandlife.
75
Hofstee,G.,Doeland,D.(2013).Deanalyseinstrumentenvanhetweb(Thetoolsforwebanalysis):
vanAnaloognaarDigitaal.nu.
76
Hofstee,G.,Doeland,D.(2013).vanAnaloognaarDigitaal.nu-dedigitaleverandering(thedigitaltransformation).Amsterdam,
TheNetherlands:DDMCA.
Digitalnatives
TheorganizationofaDJoreventproducermustmeetthechallengetodevelopthe
skillsdigitalskillsandinformationskillsthatmakeitpossibletofullyexploitthe
opportunitiesofthedigitaldomain.Thisroleissuitedforanewgenerationof
managerswhouseinformationtosupportthenewbusinessmodel.Theyare
primarilyinvolvedinthedevelopmentoffacilitiesconcerningthedigital
infrastructure,takingadvantageofthechancesthedigitaldomainoers.This
generationofnewmanagerswillprincipallybemillennialsordigitalnatives:
youngsterswhogrowupinourrapidlydigitizingworldforwhommatterslikeinternet
access,globallyavailableinformationsources,optionstocommunicatewithevery
possibledeviceatanytimeofthedayofnight,fromanylocation,areagiven.These
youngstershaveadigitalmindset.
77
Inhisbook,Growandthinkdigital ,JorisMerks-Benjaminsenmaintainsthat
millennialsshowupatworkwithfreshideasandideals,possessingaexible,
non-hierarchicalwayofthinking.Onceonthejob,theybecomeawarethatmany
aspectsoftheshopoorareoutdated;thathierarchyisstillrelevant;thatseniority
oftenprevailsovermerit;thatyouhavetobuildanin-housenetworkinorderto
navigatethecompanypolitics.Theyseeashopoorwhereplanscomeaboutvia
formalprocesses,structuresandmeetings.
Thismismatchbetweentheshopoorandthemindsetofmillennialsharmsboth
parties.Frequently,digitalnativeswillhaveahardtimeadjustingtothetraditional
oceculture;thecompanyrunsintotheproblemofattractingyoungtalentand
keepingthemhappy.Asaresult,theorganizationislessdiverseintermsofhuman
resourcesthanitcouldandshouldbe.
Moreover,Merks-BenjaminsenmaintainsthatCEOsandentrepreneursareaware
thatdigitalnativesarecrucialtothehealthoftheircompany.Thenewgeneration
canhelpcompanieskeepupwiththeever-increasingtempoofdigitalchange.This
meansthatthelastthingyoungprofessionalsshoulddoisassimilateintothe
existingworkcultureandmethods,rathertheycanhelptobringtheseuptodate.
Thisrequiresadelicatebalance.Toolittleadjustmentresultsinineciencyand
conict;toomuchadjustmentdilutestheupdatingroleofthedigitalnative.Striking
thatbalanceisthekeytotappinginto,andprotingfrom,themindsetofthe
millennial.
77
Merks-Benjaminsen,J.(2014)ThinkandGrowDigital:WhattheNetgenerationNeedstoKnowtoSurviveandThriveinAny
Organization.NewYork,NY:McGraw-HillEducation.
Digitalmature
Collinsexplainsthesuccessofgreatcompaniesbytheirpassionatepursuitofthe
companysessence.Thispursuitbreaksdownintotwoaspects:applyingfocusin
itsactivities,andthesimplicationofthebusinessmodel,thestrategyandthe
organization.Focusandkeepitsimple.Organizationscapableofdeterminingtheir
essencecreateasolidmentalframeofreferenceanidentitythatenables
employeestoquicklymaketherightchoices.Itisnotalwayseasytondthe
essence,itdemandsmullinginadisciplinedmanneroverthequestion:Whydoes
theorganizationexist?Whatisitspurpose?Subsequently,theessencemustbe
translatedintoaclearandeasytomemorizeaccountthatispartofanactionplan
andaroadmapfortheapplicationinthecompanysecosystem.
Thegoalisadigitalmatureorganizationthatpracticesacommunaldigitalstrategy.
Itisaboutimprovingorre-designingcompanyprocesses;mostcompaniesare
challengedbyanydigitalinitiative.Forexample,thedecisiontodeployanextra
channelforthesaleofaproductorservicedoesnottakeintoaccountifthe
additionalprocessmatcheswiththebackoce(thefanbaseorthedataharvesting
platform)oranyotherprocessthatservicesfansandclients.Transformingintoa
digitalmatureorganizationbreaksdownintovestepsorphases:
1.
2.
3.
4.
5.
AdHocThephaseinwhichtheorganizationis(re)actingwithoutfocusor
aim,noranybudgetordedicatedemployees,realizingonehastodo
somethingwiththeinternetandsocialmedia.
EngagedThephaseinwhichtheorganizationhasmadeitsrsttentative
stepsintothedigitaldomain,mobilizingsocialmedia,appsanditswebsiteon
aregularbasis.
StructuredThephaseinwhichtheorganizationorganizesandstructuresits
ecosystemwithamodicumofmoney(budget);alimitednumberofactions
havebeentriggered.
ManagedThephaseinwhichtheorganizationoperatesseriouslyand
consistentlybymeansofanactionplanthatincludesclearaimsand
objectives.
OptimizedThephaseinwhichtheorganizationoptimizesitsaimsand
objectives,andredenesbudget,roadmapandorganizationinthecontextof
thetransformationtodigitalmaturity.
LookingattheDJswhomakeuptheTop100listsover2013and2014,itis
apparentthatthevastmajorityofthemostpopularDJsontheplanetisengagedin
regardtothetransformationtodigitalmaturity.Thiscanbedemonstratedby
analyzingtheirwebsitesandtheirpresenceonsocialmediachannelslikeFacebook,
Twitter,Instagram,YouTubeandGoogle+.ThedatacollectedbyRankingzandthe
EDMMonitormakeclearthatmostDJshavejustsetoutontheroadtodigital
78
maturityandstillhavealongwaytogo.TheEBLiveFestivalMonitor 2015shows
thatthisalsoappliestofestivalsandevents.
Tosummarize
Transformationisaboutchange,whetheritisanewmannerofservicingyourfans
andclients,anewwayofoperating,orgettingyourdigitalmissionupandrunning
(becausevariousparties,departmentsandpartnershavetocooperateintensively).
Processesdochangeandpeopleareatthecenterofprocesses.Thetransformation
toadigitalmaturecompanyhingesonthemanagementofchange,andthe
understandingthatthisisthebiggestchallenge.Rememberthatchangeisrarely
welcome,unlessitbringsevidentbenets.
78
EntertainmentBusiness(2015).EBLiveFestivalMonitor.Informationsourcedon1August2015:http:
entertainmentbusiness.nl/trending/eb-live-festivalmonitor
Untilrecently,informationwasprimarilyameanstoanend.Thisisexempliedby
thepositionofICTdepartmentswithinorganizations;itfacilitates.Information
shouldserviceanorganizationsprocessesandobjectives.Sinceinformationhas
becometheend,itdeterminesmoresothanotherfactorstheprimaryeconomic
orpublicvalueofaDJoreventproducer.Ifyouareabletowrapyourpropositionin
information,inawaythatoutdoesthecompetition,yourmarketsharewillgrow.On
theotherhand,ifyourcompetitorsucceedsinenrichinghispropositionwith
information,hemightnibbleonyourmarketshare.
Themisguidedapplicationoftechnologycanbringdownanentireorganization.
Technologyinitselfdoesnotgeneratesuccess;usingtechnologytherightway
does.Onlyusenewtechnologywhenitisclearhowitsimplementationwilladd
valuetoyourorganizationsessence.Nowadaysorganizationscanandhaveto
innovatesuccessfully,inawaythatwillcontributetotheirreasonofexistence.Inhis
study,Collinsemphasizesthecatalyzingeectoftechnology;ifsuccessfully
applied,itcanenabletheorganizationtogrowconsiderably.Beconvincedaboutthe
internetecosystemasanapplication,andthefansorclientscentralpositioninit.
Thegoalisadigitalmatureorganizationthatpracticesacommunaldigitalstrategy.
Itisaboutimprovingorre-designingcompanyprocesses;mostcompaniesare
challengedbyanydigitalinitiative.Transformingintoadigitalmatureorganization
breaksdownintovestepsorphases(seeillustrationonpage108).Thesevesteps
willleadtoaunivocaldigitalstrategyanddigitalmaturity.
Ittakestimetotransformgoodcompaniesintogreatcompanies.Beingpresentin
theinternetecosystemisaprocessinitself.Partofthisprocessisimprovingthe
organizationstepbystep.Changelooksmorespectacularseenfromtheoutside.
Whentheywheelcatcheson,allofasuddensuccessismanifestedinan
acceleratedfashion.Thesuddenappearanceofagreatcompanyisthereforeoften
viewedasabigbang.Itsignalsthatyou,theDJoreventproducer,havefound
yourspotintheinternetecosystem;thetransformationfromanalogtodigitalisa
fact.Youhavebecomeadigitalmaturecompany.
11.Epilogue:DontbeHansjeBrinker
Manyyearsago,therelivedinHaarlem,oneoftheprincipalcitiesofHolland,a
sunny-hairedboyofgentledisposition;HansjeBrinkerwashisname.
AsagreatportionofHollandislowerthanthelevelofthesea,thewatersarekept
fromoodingthelandonlybymeansofstrongdikes.Eventhelittlechildrenin
Hollandknowthatconstantwatchfulnessisrequiredtokeeptheriversandocean
fromoodingthecountry.
Trudgingstoutlyalongthecanal,theeightyearoldHansjeBrinkernoticedhowthe
autumnrainshadswollenthewaters.Hethought,'Iftheygaveway,wherewould
FatherandMotherbe?Theseprettyeldswouldallbecoveredwiththeangry
waters.'
Hewasstartledbythesoundoftricklingwater.Whencediditcome?Helookedup
andsawasmallholeinthedikethroughwhichatinystreamwasowing.Theboy
understoodthedangerataglance.
Quickasaash,hesawhisduty.Hischubbylittlengerwasthrustinthehole.The
owingwasstopped!Ifhedrewawaythattinynger,theangrywaters,grown
angrierstill,wouldrushforth,andneverstopuntiltheyhadsweptoverthetown.He
wouldholdittheretilldaylight-ifhelived!
Atdaybreakaclergymanthoughtheheardgroansashewalkedalongonthetopof
thedike.Bending,hesaw,fardownontheside,achildapparentlywrithingwith
pain.
'Inthenameofwonder,boy,'heexclaimed,'whatareyoudoingthere?'
'Iamkeepingthewaterfromrunningout,'wasthesimpleanswerofthelittlehero.
'Tellthemtocomequick.'
Itisneedlesstoaddthattheydidcomequickly.
79
ThesagaofHansjeBrinker betterknownintheUnitedStatesthaninhishome
countryisametaphorforDJsandeventproducerswhoimplementshort-term
digitalsolutionsintheirorganization.IsHansjessolution,hisngerpluggingthe
hole,astructuralsolution?Notreally.Abiggerandbetterdykewouldstemtherising
tide.MostoftheDJsandeventproducersrealizethatinternetandsocialmediaare
importanttotheirbusiness.Mostofthemhavesetupawebsiteandusevarious
socialmediachannels.Moreover,theyuseallsortsofonlineservices,suchas
ticketing,merchandising,streaminganddownloadservices.Meanwhile,anumberof
eventproducersisexperimentingwithcashless,digitalpaymentsasanalternative
topayingwitheventcoins,andotherformsofdigitalinnovation.Digitalchangeis
turningtheanalogworldinsideout.
Over95%oftheDJsandeventproducersis,digitally,toobusytogetorganized.It
showsinthenumbers,amongothersthosethatgaugetheperformanceof
Facebookpages,Twitterchannels,YouTubechannels,Instagramprolesandthe
website:mostDJsandeventproducersdonthaveacluewhattheyaredoing.The
fanorclientvisitinghiswebsite,likeshisFacebookpage,postsacommentand
possiblybuysaticketisnotregardedasarelation.Thethingis,itcouldverywellbe
thesamepersondoingallthis.
FansandclientsofDJsandeventproducersexperienceonadailybasisthat
newslettersarenotpersonalized,thatthequestionspostedonsocialmediaarenot
answeredandthatitisnotacknowledgedthatyouprobablyhavebeenataDJs
performanceoraneventmorethanonce.Totopito,organizationsmailamessage
tofansandclientswhoboughtatickettotheireventandproudlypresenttheoption
offollowingtheeventvialivestreaming.Itdoesnotoertheoptimumexperience
fansexpectandinthelongrunitwilldamagemorethanitwilldoanygood.Whatis
lackingisadigitalstrategy.
79
SprookjesbeeldenaanZee(Fairytalesatsea)(z.d.).HansBrinker.Informationsourcedon1August2015:
http://www.sprookjesbeeldenaanzee.nl/en/fairy-tales/Hans-Brinker
Excuses
Itiscrystalclear,DJsandeventproducershaveanumberofreasonsnottoinvestin
adigitalstrategy:
Itisharmfultoproductivity(notime);
Wedonthaveacluehowitwillevolve;
Wearealreadyuptooureyeballsininformation;
Onlineconversationsareveryshallow(noaddedvalue);
Wearedoingne,sowefocusonwhatisdoingne;
Welackthetimeandthemeanstocontributeourbit;
Traditionalmediaarestillleading,digitalmediaarenotourrstconcern;
Itdoesnottwithinourorganization;
Commercialandnancialresultsarenotagiven;
Themeasuringandanalyzingtoolsarenotreliable;
Managementdoesnotprovidetherequiredtools;
Wewaitforotherstoreapthebenets;
Wedontknowhowtogetstarted;
Frankly,wedontwanttoshowourtrueface;
Thereisnobudgetavailable;
Welacktheexpertisetohandlethis;
Weareshortofvisionandpolicy;
Weareverycurioussowewaitandsee;
Weareoutrightskepticalofthissubject.
ItappearsthatDJsandeventproducersandcertainlythosewhohavebeeninthe
businessforveyearsormoredonotwanttoseeoracknowledgethebigger
picture.ItresultsinDJsandeventproducersthatoutsourcethejobtosocialmedia
managementagencies;thisisnotthestructuralsolutionofastrategicissuethathas
tobeaddressedrightaway.Experiencelearnsthatthissolutioncanbemore
harmfulthanbenecial.
Recognition
Whenyoudonotacknowledgethedigitaldomainssystemofinteractionyouare
reallycluelessabouttheonlineworld;thismeansyouarecarryingcoaltoNewcastle
or,likeHansjeBrinker,whouseshisngertostoptherisingwaters.Inthisdigital
dayandage,thefanorclientispartofthedigitalchainandeverytimeitisthevery
sameperson.Youhavetoacknowledgethisrealityandservicethefanorclient
accordingly,usingnetworksanddevices,inordertoinitiatealong-termrelationship
thatworksonmultilevels.
You,asDJoreventproducer,havetoadaptcontinuouslytoonlinedevices,how
theyworkandhowusersusethem.Shiftsinthelandscape,providingproper
content,establishingconnectionanddataharvestingarepartofthetransitionyou
willmake.Whenyourealizethatthedigitalchainhasamassiveimpactonthe
cultureandprocessesofyourorganizationorbusiness,youhavetotakeactionand
adapttotherulesandcustomsoftheinternetecosystem.
Whenyouseewhatlinksdevices,landscapes,content,connectionandinformation,
itwillbeeasierforyoutorecongurethewayyourbusinessismanagedandsimpler
todevelopproductsandservicesthatbettercomplementthedesiresoffansand
clients.Sofollowtheneedsyoucanfulll,inordertobecomesuccessfulinthe
internetecosystem.Afterall,asaDJoreventproduceryouarepartofan
ecosystemofdevices,networks,content,peopleandinformation.Thismeansyou
havetoadjustyourbusinessmanagementtothisenvironmentandthusbecomea
digitalmatureorganization.
IntheUnitedStates,managementagenciessuchasScooterBrowns(who
managesJustinBieber,amongothers),TroyCarters(whomanagesLadyGaga,
amongothers)andGuyOsearys(whomanagesMadonna,amongothers),
cooperateintensivelywithtechnologycompaniesanddigitalstrategists.They
understandthattheentertainmentbusinesshaschanged.Rememberthis:the
entertainmentbusinessisshiftingfromanalogtodigital;itisadigitalindustryina
digitaleconomywithanalogfacetslikeperformances,eventsandfestivals.Any
connectiontothefanorclientisdigital;afterall,onelinksuptothedigitaldomain
eveninoinesituationslikeperformances,eventsandfestivals.
Newfunction
FororganizationsthatoperateintheEDMindustry,thedigitaldomainwillhavetobe
80
astrategicpriority.LikeAndrewMcAfee ,professoratMassachusettsInstituteof
Technologyandco-authorofTheSecondMachineAge,pointedout:Icantthinkof
anybusinessorbusinesssectorthatwillbeimmunetodigitaltransformation.The
entertainmentindustryandthemusicbusinessinparticularisattheforefrontofthis
unstoppabledevelopmentandhasbecomeadigitalbusiness.
80
ProfessoratMassachusettsInstituteofTechnology,MIT,oneofthemostprestigiousuniversitiesintheworld.
Viathedominantpresenceofsocialmedia,mobileapplicationsandcloud
computing,digitaltechnologyenablesthemoreecientdeploymentofmarketing
andsales,amorescienticapproachtodecision-making,andtheestablishmentof
newtypesofrelationshipswithfansandclients.Theoptionsforcompetitive
distinctionarelimitlessyetatthesametimethegreatestchallenge.DJsandevent
producershavetoattractthepropertalentstotheirorganizationandmobilizethem
inastrategicfashionforsupportofmulti-platforminitiativesintheinternet
ecosystem.
TheresultsaredependentontheactionsthattypifyaDJoreventproducer;actions
thatattractfansorclientsaswellasopinionleadersandcreatingexperiences.Klout
(inuence)hasshiftedfromexpertsandbrandstopeoplewhoseopinionisvaluedin
thedigitaldomain,asaresultofwhichfansandclientsinitiatearelationshipfor
morepersonalreasonsthanbefore.Thisrequirescontentthatoverwhelms,sothe
fanorclientisdrawnintoyourrealmofthedigitaldomainandstartstointeractwith
you.
Thedividinglinesbetweenmarketing,sales,communication/PRandICTfunctions
haveblurredintoastateinwhichtheyhavebecomealmostinterchangeable,
causingconsensusandcooperationtoplayafundamentalroleinachievingyour
companysobjectives.Itisallaboutcultivatingcommunicationandthe
managementofallaspectsofthecompanysdigitallandscape.Thisrequiresanew
functioninyourorganization.Afterall,analog-orientedpeopleareoflittleuseinan
organizationthatisanintegratedpartofthedigitaldomain.
AChiefDigitalOcerisakeygurewhodirectlyworkswiththeownerorCEOof
thecompany.Hismaintaskistoinuencethecompanysstrategyand
management.Technicalprociencyinemergingtechnologiesisanabsolute
necessity.Thechiefdigitalocermusthavetheskillstoinspireteamsand
assimilatethedigitaldomainintothecompanyculture,inordertobecometop
priority.AChiefDigitalOcerisnotaHansjeBrinker.
AChiefDigitalOcertacklesthetaskathandinastructuralfashion:
He(orshe)thinksintermsofresultsandgivesbusinessmatterstoppriority;
He(orshe)hasinsightintothecomplexitiesandinterdependenciesofthe
companyinrelationtothedigitaldomain;
He(orshe)providesmeasurableeconomicaddedvalueandcompetitive
distinction;
He(orshe)helpseveryoneunderstandwhatelementsoraspectsofthe
companyneedtobeinvestedin;
He(orshe)haslong-termstrategiesoncreatingawareness,commitment,
fansandclientsexperience,generatingvalueforthecompany,planning
streamsofrevenueandexecutingtheseplans;
He(orshe)encourageschangebeyondfunctionsandsectionsofthe
organization;
He(orshe)designsrequirementsthatareessentialtotheoperationofthe
organization,andimplementstheserequirements;
His(orher)aimistoinuenceandalignallpartiesconcernedof(with)the
organization;
TheChiefDigitalOcersupervisestheDLCCI-principle;
Thedevelopmentsofthedigitaldomainonmacrolevel,thedevicesandthe
landscape;
Themannerinwhichusersconnectinthedigitaldomain,andwhattypeof
contentmatters;
Theinformationthatsupportshimindecision-makingandhelpshimto
securethecompanyvalue.
Newformsofcollaboration
TheonlyrelationshiptomaintainistherelationshipbetweentheDJandhisfansor
clients,ortheevent/festivalproducerandhisfansorclients.Thisimpliesthatthe
relationshipbetweentheplayersintheentertainmentindustrywillchange.All
playerswhoarenotpartofthedirectrelationshiparebydenitionserviceproviders.
Nottoolongagorecordscompaniesandmusicpublishersdominatedthemusic
business.DJsneededtherecordscompaniesandmusicpublisherstounderwrite
theirventureandtoreachtheiraudience.Thosedaysareover.Thepowerof
self-publishedcontentisbiggerthanmanyfolks(people)think.Thisself-published
contentcanworkasthespringboardtoacareerasaDJ.Therstorderofthedayis
tocreatefansandfollowing,beforetheDJs(copy)rightscanbecapitalized.Inthe
musicindustry,itisnotclearwhoisresponsiblefororshouldinvestintheDJs
digitalstrategy.Allpartiesrecordlabels,musicpublishers,managementagencies,
bookingagenciespointtootherpartiesandnothingreallyhappens.
SupposeyouwouldstartoutasaDJ,whatshouldyoudo?
Instigateacompanythatadministersyour(copy)rights.Thiscompany
makesiteasiertoenterintonewtypesofagreementswithallparties
includingrecordlabels,musicpublishers,bookingagenciesinvolvedwith
you.TheimplementationandmanagementoftheDJsinternetecosystem
willbesimpler.
Apartfromadministration,thiscompanyrepresentsallyour(copy)rights.
Thismeans:allaspectsrelatingtotheexploitationoftheDJ(copy)rights.
ThecompanywilltakestockoftheexploitationoftheDJ(copy)rightsatthe
endofeachscalyear.Protanddividendwillbedistributedaccordingto
theagreementbetweentheparticipatingparties.Thiscanbethemanager,
ortherecordlabel,orthemusicpublisherwhofunctionsasbanker.
Nowthatserviceproviders,suchasticketvendors(providers),arenolongerleading,
eventproducerstoohavetoredirecttheircourseofaction.Workingwithadierent
ticketvendor(provider)willnotselloneextraticket.Whatwill,though,isthe
ticket-systemsseamlessintegrationintoyourecosystem.Thisset-upgenerates
datathatwillmakeadierence.Thesameappliestocashless-systemprovidersand
otherpartiesthatareintroducingnewdigitalservices.
Investing
Thevaluationofso-calledsocialcapitalisontherise.Thistypeofcapitaliscreated
viafanandclientinformationthatisgeneratedwithintheinternetecosystem.But
howtovalueadigitalenvironmentwherebothfansandclientsarepresent?Some
yearsago,specialistsinitiatedstudiesintotheratingofsocialmediaanditsusersby
theworldofnance.Thisquestionbecameopportunewheninternetcompanies
suchasFacebook,TwitterandLinkedInwentpublic.Thesecompanieswerevalued
intermsofsharepricesbasedontheirusersandtheironlinepresence.
Thevalueofadigitalnetworkoffansandclientsisestablishedbyaddingupexisting
andprojectedfuturecashows.Thelong-termvalueofyournetwork,i.e.your
digitalecosystem,ispredominantlydeterminedbythevalueofitsrelationships;the
relationshipsbetweenthenetworksusersandthecompany,aswellasthe
relationshipsbetweentheusersthemselves.Futurerevenues(cashow)are
determinedbyexistingandfuturerelationshipswithfansandclients.Thesefuture
cashowsareexpressedincashagainstdemandedreturn,whichresultsinthe
so-calledcustomercapital(Rust2004)andthusthebasisforvaluation.Numeric
examplesofadditionalpotentialvaluationsofwell-knownlabelsandDJsareshown
intheappendices.
Since2012,DDMCAandPIMareoftheopinionthatinvestors,bankersandother
formsofmoneyprovisionsuchascrowdfundingwillgetacquaintedwiththis
additionaltypeofvaluation.Thetraditionalwayofvaluing,practicedbybankersor
investors,willnotfullystipulatethevalueofacompany.Customercapitalisnot
accountedforinthebooks,sothereforeneglected.Thesimplevaluationonthe
basisofassetsisoutdated.Thismethodofvaluingwillnotdisappear;itwillbe
integratedinthenewmethodofvaluing.Theworldisgrowingfast,thedigitalworld
isgrowingevenfaster.
Theentertainmentindustrysnewbusinessmodelisactuallythereforthetaking.
Thechangeinperceptionofdatageneratedbysocialmediaaswellasservices
suchasSpotifyandiTunesrepresentingmonetaryvaluewillhavemanagersand
partieswhoexploitsDJrightslookattheiroperationswithadierentview.
Contractsmustbereviewedorsupplemented,sothedatabenettheDJ(too).In
ordertosuccessfullyaddvaluetoaDJ,managementmustworkonitsexpertisein
dataharvestinganddataanalysis,sincethiscanproducenewfuturerevenue.What
appliestoDJsappliestoeventproducersandfestivalproducersaswell.
Rawdataharvestedfrom,amongothers,socialmediadonothavedirectvalue.Only
aftermakingmeaningfulcorrelations,analysisanddesigningadditionalearning
modelsonthebasisofvalidatedfan,tweetandlikedata,isitpossibleto
generatedirectcashow.Thiswillleadtoanincreaseofthetotalcashowand,
moreover,willboostthevalueoftheDJoreventproducerviapotentialgoodwill.
Entertainmentcompanies,i.e.DJsandeventproducers,aredigitalbydenition.Not
havingadigitalstrategyandthelackofadigitalnetworkanditscontextualized
interactionwilllimitthegrowthinvalueofyou,theDJoreventproducer,andyour
company.Notworkingfromasoliddigitalstrategyandnothavingadequate
contractswithserviceprovidersmeansthatyouaresimplypissinginthewind.Time
isnotonyourside,youarewellonyourwaytobecomingaHansjeBrinker.
12.Extra:HavesomeDJsreachedtheirlimit?
Therighttoexistofeverycompanyisbasedontheproductlifecycle.Eachproduct
hasalifepath,whichconsistsofagrowingphaseandaphaseofdecreasing
growth.Eachcompanymustkeeprespondingtoproductdevelopmentstokeep
breathingnewlifeintothecycle.
(source:theAppleCaseStudy2014)
DoesthiscyclealsoapplytoDJs?Cansomethingbesaidaboutthedigitallifecycle
basedontheconnectionsonFacebookandTwitterthelevelofconnectionsand
connectivitywithfansandaDJsrighttoexist?UsingthedataofRankingz,
DDMCAandJibeCompanyresearchedthecyclesofDJswhohavefeaturedinthe
DJMagTop100overthelast10years.
Ipod
ThesalesdevelopmentoftheiPod,iPhoneandiPadshownintheimageabove(or
onthepreviouspage,dependingonlay-out)displaysthegrowthanddecreaseof
thesaleatacertaintime.WithregardtotheiPod,whichhasbeenonthemarketfor
13years,itcanclearlybeseenthatanexplosivegrowthtookplacefrom2003,when
iTuneswaslaunched.
InthegraphicbelowleftyoucanseethedecreaseiniPodsalesafter7years.iPad
salesarestagnatingveyearsafteritsintroduction.Thisisshowninthegraphic
belowright.Slowlybutsurely,itseemsthattheiPodandiPadhavehadtheirbest
days.Thesalesdevelopmentofallthreeproductsdisplaysacurve,whichcanbe
tracedbackwithstatistics.
Gaussecurve
Instatisticsthereisacommongraph,thestandardnormaldistribution.With
sucientnumberofobservationsthisdisplaysasymmetricaldistributionovera
measuringcriterion.Byshowingthedistributionschematicallyaclockshapedcurve
isformed,alsocalledtheGausscurveorBellcurve.WhentheiPodsalesoverthe
yearsareaddeduptocalculatetheaveragesalesgure,thereisalsoastandard
normaldistribution.Inmathematicsthisiscalledthestandarddeviation,the
distributionofaseriesofnumbersaroundtheaverageorthedeviationtothe
average.WiththeiPodthisisthedeviationtothesalespeak.
Itseemsttingtousetheclockgraphicinthelifecycleofaproduct.Issuessuchas
standarddeviation,modalclass,medianandvariationscanbedeployedtoexplain
andpredictthelifecyclesofproducts.
Rogertheory
81
Theinnovationtheory,asdescribedintheDiusionofInnovationsbook ,isatheory
thatcommentsonthespreadofaninnovation,anewproductorideawithinagroup.
TheoriginaltheorywasconceivedbyFrenchmanGabrielTarde,butmadepopular
byEverettRogers.Thetheoryiswellknownspecicallyinthemarketingworld,
wherethedescriptionofthelifecycleiscentral.Rogersdistinguishesvarious
stages,inwhichdierentgroupsareidentiedwhichacceptaproductornewidea.
Thetheoryisvisuallytranslatedinasimilarclockgraphic.
Rogerspresentsasubdivision,inwhichhepointsoutinnovators,earlyadopters,
earlymajority,latemajorityandlaggards.Clientswhicharenamedasinnovatorsbuy
newlylaunchedproducts,andearlyadoptersarethefollowersoftheinnovators.
ProductLifeCycle
Onthebasisofhistheoryitcanbeassumedthat2.5percentofthetotaltarget
groupdisplaysinnovativebehavior(innovators).Thesegmentoftheearlyadopters
isestimatedat13.5percentofthetargetgroup.Thecommunicationtransferofthe
innovatorstotheearlyadoptersiscriticalforthesuccessofaproductinthefuture,
alsocalledchasm.Additionalfocusisgiventothistheoryon
82
vanAnaloognaarDigitaal.nu,inthechapterTheTippingPointasaguide .
Incommunicationtothemarket,innovatorscanbeusedasameanstostimulatethe
growthofaproduct.Thisapplicationiscalledtestimonial.Themajorityofthetarget
groupcovers68percent(earlyandlatemajority).Theremaining16percentofthe
targetgroupiscalledlaggards,thosethatlagbehind.
81
Rogers,E.(2003).DiusionsofInnovations.NewYork,NY:Simon&Schuster
Hofstee,G.,Doeland,D.(2015).ofstee,G.,Doeland,D.(2(TheTippingPointasaguide).vanAnaloognaarDigitaal.nude
digitaleverandering(thedigitaltransformation).Amsterdam,TheNetherlands:DDMCA.
82
Phases
Basedontheabovementionedpercentagesthelifecycleofaproductcanbe
brokendownintofourphases:
Theintroductionphase:thelaunchofthenewproductonthemarket
requiresattentionfromthemanagementforthequalityoftheproduct
(banishingstart-upproblems)andcommunicatingabouttheproductwith
theinnovators.
Theexplosivegrowthphase:establishingtheproductinthemarketnow
requiresstrongcommunicationwiththeearlyadopters(testimonial)andthe
quantitativedistribution(availableeverywhere).
Theceilingphase:themajoritybuystheproduct,thedistributionis
qualitativelyregulatedandthepricepolicystartstobecomeimportantto
assistadvancingitspenetration.
Thematurityphase:thelaggardsandtheloyalistsaretheonlyoneswhostill
buytheproduct.Marginalimprovementstotheproduct,togetherwithprice
changes,keeptheproductintheairaslongaspossible.Untilthemoment
wherethereisaloss,aproductprovidescashow,whichwillenablenew
productstobenanced.
Digitallifecycle
ThedigitallifecycleofaDJshows,toalargeextent,aresemblancewithRogers
theory.Thephasesinthecyclecanbeexpressedinthefollowingterms:
introduction,growth,maturity,ceilingandregression.Itisinterestingtoapplythe
theorytoaDJ.Asexpected,generallythesamedevelopmentswhichonenormally
seeswithaproductcanbepredicted.Thephasescanbeappliedtothe
connectionsviaFacebookandTwitter.
EveryDJwhondshimselvintheinternetecosystempassesthedierentphasesin
thecycle.ThespeedwithwhicheachDJmovesthroughthiscycledependson,
amongotherthings,thedemandandthewayinwhichheisabletoconnectwithhis
orherfansandmaintainthisconnection.
Rankingzhasbeencollectingsocialmediadataofapproximately400DJsforthe
last4years,includingDJswhohavefeaturedintheDJMagTop100inthelast10
years.WhenyouconsultthegraphicsmanyoftheseDJsndthemselvesalmostat
theceilingphase.Thepolicyconcerningthecontentwhichshouldmaintainthe
connectionsisbecomingincreasinglyimportant.Maintainingandadvancing
engagementwithfansiscentraltothistoremaininthematurityphase.
MostDJsappeartohavehittheirceiling.Moreover,foranumberofthemthe
relativeregressionisnolongerfaro.Whenyoulookatthedynamicaverageofthe
numberofpagelikes,theamountofconnectionsonFacebook,thenthegraphicsof
ArminvanBuurenandCarlCoxshowstrongindicationstheyhavehadtheirday.
OnTwitteritappearsthatformostDJsthereisnotacloudinthesky.Mostofthem
arestillinthegrowthphase.OnlyATBshowstherstsignsofapossibleregression.
However,thegrowthofthreeDJsisbeginningtosubside:InfectedMushroom,
RichieHawtinand,onceagain,ArminvanBuuren.
Increasinglyfaster
Tiresome,butatthesametimealsochallengingisthatthecycleisbeingcompleted
increasinglyfaster.LookingatthecycleofMartinGarrix,itisevidentthatthe
introductionphasewentquicklyafterarrivingintheDJMagTop100in2013.This
phaseledtoanexplosiveperiodofgrowthinashortertimethanwasexperienced
byArminvanBuuren,forinstance.Thelastfewmonthsitseemsthattheceiling
phasefortheDJisalreadyinsight.Alsowhenyoulookattheothergraphics,you
seethatthecyclewithMartinGarrixisproceedingfaster.
HasMartinGarrixalreadyreachedhisceiling?TheDJwillquicklyneedtodeliveragoodnewsingle
andgoodcontenttogetthecurveonFacebooktoriseagain.
Scope
DDMCAandJibeCompany,togetherwithRankingzarescrutinizingmoreDJs.Not
everyDJproceedsbeyondeveryphase;somenewDJsdonotgetpastthe
introductionphase,whileotherDJshavebeeninthematurityphaseformanyyears
accordingtoRankingzdata.
Themodelofthedigitallifecycleisstillinaprematurephase.However,itcanbe
suggestedthatthereisarelationshipbetweentheconnectionsonFacebookand
TwitterandthetheoryofRogers.Thedatathereforehasapredictivevalue,where
somethingcanbecautiouslysaidregardingtherighttoexistofaDJbasedonthe
connectionsheorshehasonsocialmedia.
VariousDJsshowadecline,whichcanhaveconsequencesonthelongtermforthe
righttoexistofsuchaDJ.Whenthedeclinecontinuesthereislessscopeonthe
longtermfortheDJ.
Contentstrategy
Whatmustyoudotopreventdecline?Agoodcontentstrategyhelps.Agood
strategycanallowyoutocreateandcuratecontentwhichisrelevantforthetarget
audienceattherighttime.Thisleadstostrongrelationshipswithfans.Withgood
relevantcontentyoudistinguishyourselffromyourcompetitionwhodonotfollowa
strategy.
Inaddition,suchastrategyhelpstodiscoverwhoatwhichmoment,requireswhat
contenttoachieveyouraim.Furthermoreitalsohelpstodiscoverwhatthebest
formandbestmethodofoeringthiscontentis.Connectingthestrategytotheaim
ofyourorganizationandmeasuringthenalresulthelpsyoutomakeclearwhatthe
addedvalueofcontentisforyourfans.Theaimistoconnect,andcontentisthe
methodofconnecting.Bysharingthecontentconsistently,andmaintainingthatina
disciplinedway,youwillseethatyouconnectwithincreasinglymorefansandget
ontherightpathtowinthetrustofyourfans.Result:thecurveofthedigitallife
cycleisrisingandtheceilingisnotyetinsight.
13.Appendices
14.Sources
Theauthorhasbeeninspiredbydocumentaries,authors,bloggers,experts,
literature,papers,reports,surveys,data,blogposts,onlinenewsandonlinearticles;
hehastriedtowritewiththeutmostcare.Thecontent,data,illustrationsand
infographics,andtheirsources,arebasedonthelatestinformationavailableat
publication.Nonetheless,itispossiblethatthecontentonoerhasbecome
outdatedorincorrectsince.Wantingsourceswillbeaddedtofollowingeditions.
Chapter3
Documentaries:
PumpUpTheVolumeTheHistoryofHouseMusic(Channel4,2001)
TheSummerofRave1989(BBC,2006)
Newssites,sites,blogs,bloggers,studies,reports,illustrations,authors,abstracts:
Wikipedia,Forbes,BusinessInsider,3voor12,Billboard,Eventbrite,
vanAnaloognaarDigitaal.nu,DoelandsDigitaleWereld,EliteDaily,WallStreet
Journal,Mashable,SocialMediaToday,DigitalMusicNews,Volkskrant,
DJBroadcast,Tomorrowland,ArminvanBuuren,Afrojack,Tiesto,Blasterjaxx,Martin
Garrix,NickyRomero,Hardwell
Chapter4
Wikipedia,vanAnaloognaarDigitaal.nu,GlobalWebIndex,WeAreSocial,
ConversationPrism.com,SocialMediaModellen.nl,DoelandsDigitaleWereld,
Rankingz
Chapter5
Wikipedia,BusinessModelGeneratie,MarketingOnline,vanAnaloognaarDigitaal.nu,
DoelandsDigitaleWereld,DDMCA,Dr.AnthonyCurtis,MassCommunicationDept.,
UniversityofNorthCarolinaatPembroke,FutureofMusicCoalition,FredCavazza
Chapter6
JurrianTromp,DoelandsDigitaleWereld,DDMCA,RezManagement,Dewereldvan
morgen,HansGoedvolk
Chapter7
DDMCA,JibeCompany,DoelandsDigitaleWereld,Wikipedia,
vanAnaloognaarDigitaal.nu,Frankwatching,Marketingfacts,DutchCowboys,
Mediaweb,One4marketing,MillwardBrown.
Chapter8
HansPeterLuhn,Livescope,JibeCompany,DDMCA,DoelandsDigitaleWereld,
Wikipedia,vanAnaloognaarDigitaal.nu
Chapter9
AnnetAris,vianovaarchitectura.nl,blog.io.nl,mostfrankly,NCOI,Adformatie,
vanAnaloognaarDigitaal.nu,DoelandsDigitaleWereld,DDMCA,Forbes,JamesF.
Moore,FinancieelDagblad,PimvanBerkel,Billboard,Socialmediamodellen.nl
Chapter10
JimCollins,CarolDweck,AndrewBrotman,DDMCA,JibeCompany,Doelands
DigitaleWereld,Wikipedia,vanAnaloognaarDigitaal.nu
Chapter11
Sprookjesbeeldenaanzee.nl,AndrewMcAfee,DDMCA,JibeCompany,Doelands
DigitaleWereld,Wikipedia,vanAnaloognaarDigitaal.nu,Billboard
15.Abouttheauthor
DenisDoeland(Utrecht,1971)hasbeenactiveinthemusicindustry(Dance)since
1993.HestartedoutintheBadVibesrecordstore,homeofID&Tsveryrstmusic
ventures.AsID&Tlabelmanager,heoverseesvinyl,CDsingleandcompilation
releases,andthelicensingoftheID&Tcatalogtothirdparties.In1995,heinitiated
ID&Tsmusicpublishingcompany.
SwitchingtotheCombinedForceslabelin1999,hemanagestheinternational
exploitationofthelabelscatalog,aswellasArtist&repertoiremanagement.He
explorestheonlineexploitationofmusic.
In2002,hestartsDDMCA(DenisDoelandManagementConsultancyandAdvice).
Denisemployshisknow-howforadvicetostart-upartists,eventorganizersand
companiesthatexploit(copy)rights.Aftercompletingaseriesof(internationally)
successfulprojects,heputsDDMCAonthebackburnerandreturnstohisformer
love,ID&T,workingforitsmusicpublishingcompany,ID&TPublishing,supervising
theprogrammingofID&TRadio,andstartingupDance-Tunes,ID&Tsmusic
downloadplatform.
Inthenalyearsofhis18-yearstintatID&T,Denisisoccupiedwiththeonline
activitiesandexploitationofintellectualpropertyofID&T,Q-DanceandSensation.In
May2011,hefocusesonDDMCA,concentratingonthemanyaspectsofintellectual
propertyandtechnology.
Asforthedigitaldomain,Deniscurrentlyassistscompaniesandorganizationsto
engageinternetandsocialmediainordertomeetwiththenewexpectationsoffans,
clients,employeesandotherpartiesinvolved.InTheNetherlands,heisleadingin
theeldofusingtechnology,internetandsocialmediaforthedevelopmentand
sharingofknowledge.Thesedays,heoperatesasanindependentconsultantand
suppliesadvice,analyses,lectures,trainings,socialmediamonitoringandinternet
monitoring.
Apartfromconsultingforvariouscompaniesandorganizations,heisguestlecturer
attheFontysHogeschoolinTilburgsince2013andotherUniversitiesinthe
Netherlands.WithGerHofstee,heco-authoredvanAnaloognaarDigitaal.nu,
publishedinprintandonline.DeniswritesblogsandcontributionsforEmerce,
LiveScope,Sportnext,DigitalEconomics,FastMovingTargets,Fanber,True,DJ
Mag,andvariousotherguestblogs.
16.Colophon
Publisher:
DDMCA
Keizersgracht330-B
1016EZAmsterdam
TheNetherlands
EditorsoftheoriginalDutchversion:
BramSemijn(L&DJ),AlfredBosandElkeSpaan.
Translation:
AlfredBos,translationsupervisedbyMaartjeSymons(TheWorkz).
ThefollowingindividualsandcompaniesaresupportersofEDMandtheDigital
Domain:
PetervanGalen(Earproof),RoelKuijpers(Novicom),MarcelPantera(Treat),Frans
vandenBerg,NickdeVree(Bluelist),JanineHillebrands-vanTulder(HotPink
Media),SebastiaanHooft,JohnOliveira(Noturban),PeterKeijzer(L&DJ),Maarten
Leopold(LeopoldMeijnenOosterbaan),RemkovanderKlis(RealityOutdoor),Peter
Tanahatoe,OrmdeWaart(HabbekeShipyard),EmieltenHoor,IreneStoels,Mike
vanLoon,LiesbethRuo,MichaelvanBeers,RoyPoortmans,MaikelSchats(Beach
SoccerBondNederland),JasjaHeijboer(ACEAgency),JulietteJaspers-Sliepenbeek
(JulesAgency),MikeHanenberg,DaveKlop,GitteMilder,JeroenHulscher,Jaccode
Weerdt,JoopHeijselaar,Nico,SanderLusink(Oger),LeoSondag,WilcoJung
(WeAreTheNights),AlexvanOostrum,CelinaKoch(PinkVisionCoaching),Ericvan
deKamp,RogerOlivieira,RobKuilboer,RuudZegwaart,WillemvandeSpijker,Pim
vanBerkel,Jan-LucBlakborn(MaximumEntertainment),AlexHes&EssamJansen
(EAEvents),RobintenHoope,CorienvanRijn,PeterLufting,FatihKahyaoglu,Peter
Stevens,B-funky,LisettevanderSter,DanutaDonk,GerardWals,Laurens
Goudriaan,plusthecontributorswhoprefertostayanonymous.
Tothem,Isaythankyouforyourcontribution,whichhasmadethispublication
possible;itwasadreamcometruetopublishthisbookinEnglish.
Alsothankstomyclients,pastandpresentwhohaveprovidedthenecessary
inspirationforthispublication:
Radio538,DanceTherapyProductions,ArmadaMusic,8ballMusic,Amsterdam
DanceEvent,UDC,Oger,Herome,2-DutchAgency,Refune,TreatAmsterdam,
ProtocolManagement,ArtofDance,SamenwerkendeHulpOrganisatiesGiro555,
GoFastEnergy,ThePowerGeneration,ExtendedMusic,UitzendgroepWerkenIk,
MuziekCentrumNederland,MarliesDekkers,22Tracks,Lief!,SortedToo,
PacemakerMusic,MonumentalProductions,E&AEvents,4PM,JoinFeedback,
GrandMono,TryLikesandLaurensKagenaar.
ThankstotheblogsIwritefor:
Emerce,Adformatie,Marketingfacts,MarketingOnline,LiveScope,Sportnext,Digital
Economics,FastMovingTargets,Fanber,TrueandDJMagNL.
Pictures:
XolaliJoval
The entertainment and music industry has been fundamentally transformed by the digital
revolution. The production, distribution, marketing, promotion and consumption of
music, and electronic dance music (EDM) in particular, have been digitized. Music
professionals and festival organizers face new challenges and are able exploit new
opportunities.
Attention is the new currency and data are the new gold. In EDM and the Digital Domain,
author Denis Doeland maps out a strategy how to make the transformation from the old
analogue to the new digital business model. It explains why a sound digital strategy is a
crucial step to lasting success and details how deejays and event producers can thrive
by managing their social media and digital presence.
Yet, social media are much more than a marketing tool. Data mining via social media and
other platforms offers numerous opportunities for getting to know your audience better,
which helps to cater to their needs and wishes in a more detailed manner; it bolsters
your market position. More importantly, data management and data analysis create
opportunities for new products and new services, resulting in new streams of revenue.
The digital domain is an ecosystem of thousands and thousands sub-ecosystems: online
communities of end-users (fans and clients), developers, suppliers and distributors. They
use one anothers strong points; complement and strengthen one another in order to
jointly create value for other end-users. This is the basis of the digital economy, of which
the contemporary creative industry and therefore the entertainment industry is an
integral part.
EDM and the Digital Domain is a must read for all music business and entertainment
professionals: deejays, artist managers, promotors, label managers, event and festival
producers, publishers, distributors and vendors.
About the author
Denis Doeland (Utrecht, 1971) has been a music industry professional since 1993, initially working for
ID&T. In 2002, he set up DDMCA (Denis Doeland Management Consultancy and Advice). After completing a
series of internationally successful projects, he returned to ID&T, starting up ID&Ts music download
platform, Dance-Tunes. Since May 2011, he focuses on DDMCA, operating as an independent consultant.
He is guest lecturer at the Fontys Hogeschool (Tilburg, The Netherlands) since 2013 and is the co-author of
vanAnaloognaarDigitaal (From analogue to digital).
.
Contact: DDMCA - Keizersgracht 330b - 1016 EZ Amsterdam - T: 020 4272880 - M: mail@ddmca.com
This publication is issued under Dutch copyright law and may not be commercially reproduced, distributed,
transmitted, displayed, published or broadcast without the prior written permission of DDMCA the owner of
the issued content. You may not alter or remove any trademark, copyright or other notice from copies of the
content without prior written permission.
The author will not be liable in respect of any business losses, including without limitation loss of or damage
to profits, income, revenue, business, contracts, commercial opportunities or goodwill.
ISBN/EAN 978-90-00000-0-0 | NUR 988

EDM and The Digital Domain

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Contact: DDMCA - Keizersgracht 330b - 1016 EZ Amsterdam - T: 020 4272880 - M: mail@ddmca.com

ISBN/EAN 978-90-00000-0-0 | NUR 988

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