ASSIGNMENT SAMPLE ON EGLO7026 GLOBAL MASTER OF BUSINESS AND MANAGEMENT
Chapter 1. Introduction
1.1 Introduction
The creative industry has undergone major changes with the emerging global trend in the digitalization of all sectors. Creative works ranging from performing art, education as well as the fashion industry are being transformed to make them more accessible through online platforms. Although digitalization has proved its worth through economic development in major countries, the scenario is not the same for many independent small or medium-sized enterprises. This study aims to discuss the innovations in business models of these industries and the drawbacks.
1.2. Background of the study
Creativity is the unique vision of one’s self that is developed through principles and philosophies. The creative industry encompasses all forms of art ranging from entertainment, music, learning as well as designing. The creative industry evolved through the implementation of the technologies that were available from time to time. From CDs to online streaming platforms, books concise as ebooks, shops being available at e-markets, theatres compacting into OTT platforms, the creative industry revolutionized immensely. The accessibility of these digitized platforms has allowed audiences to have easier access to these elements through ease of one swipe (Bilan et al 2019). Every creative endeavor requires a proper business model to support its growth and impact.
Innovations in business models are developed through the adaptation of the latest technology assessing the trends worldwide. Through digitalization the has been concise to the boundaries of mobiles and computers and revolutionized the way businesses were thought. In the views of Li (2020), the latest trends in the creative industry have allowed the development of business models in support of digitalization to impact the economy. The acceptance of these latest business models by the masses has provided opportunities for innovations. Social networking sites are one of the major platforms that influence all sectors of the creative industry and associated businesses (Shafi et al. 2019).
1.3. Problem statement
The wave of digitization has revolutionized the way the creative industry was accessible to the masses. However, there are components and sectors in the industry that depend on the sales from physical audiences. Major book markets, theatres, small fashion outlets, and galleries have recorded a decreasing number of visitors in the course of a digitalized era (Kurpayanidi and Ilyosov, 2020). The era of the pandemic has further accelerated the effect which resulted in the shutdown of many of these sectors. The availability of movies on online streaming platforms has reduced sales in theatres and hampered movie sales to a certain extent. Therefore it is required to consider business model development that includes these independent sources within the sphere of digitalization. The disadvantages of the digitization of small and medium enterprises need to be assessed to have a holistic approach to economic development (Ingaldi and Ulewicz, 2020).
1.4. Aim of the research
The aim of the research is to understand the innovative models of business in the creative industry.
1.5. Objectives
- Evaluating the various models of business in the creative industry.
- Discussing the models of business in the creative industry.
- Recommending strategies to improve the practice.
1.6. Research Questions
- What are the models of business in the creative industry?
- What are the strategies followed to run a business in the creative industry?
- How can we improve those strategies to make business post pandemic better?
1.6 Research significance
The significance of a research work represents its validity in the changing era while it helps the researchers to represent their working efficiency by enlarging the research significance. Through this research project, the global business industry can understand the positive and negative influences of innovative business models in the modern creative industry to ensure quality performance even after this current pandemic difficulty. This research work is focused on identifying the key issues with the traditional business models especially after this pandemic situation that inspires the global business industry to bring required innovation. Moreover, it is important to say that the entire research work is capable of producing effective strategic recommendations for the modern business industry to ensure their working performance with support of high productivity and creativity that indicates the major significance of this study.
1.7. Research outline
1.8. Summary
The chapter aimed at highlighting the areas of the creative industry that developed under the effects of digitalization. The impact of these changes in facilitating visibility and accessibility has also been discussed. Through the development of the study, it was noticed that digitalization has failed to impact certain sectors of the creative industry that are facing threats of the situation. The research questions aim at answering the business models that can be developed to impact these small businesses of the creative industry. Therefore it is safe to say that the creative industry has become more accessible and available to the general mass through innovative business models developed in compliance with digitalization trends.
Chapter 2. Literature review
2.1. Introduction
Digitization allowed diffusion to a large audience through an enhanced experience of art forms like music and videos. The innovations in business models helped to keep the audience engaged and provided them with a pool of information related to art and technology. The study focuses on the models and factors contributing to the rapid digitalization and the constraints the creative industry faces to keep up with the changing times.
2.2. Background of business model
The creative industry has evolved from the era of CDs, ticket-booked theatres, and vinyl disk shops. Digitalization has shifted the motives of businesses to develop online platforms to diffuse the forms of art. This allowed a large section of the audience to have a hassle-free experience of music and video streaming within the boundaries of their home. Smartphones have made technology more accessible in times of restrictions in movement. Audiences are investing more time and resources on these online platforms which are indicative of a potential and successful market as it become necessary. According to Cai et al. (2020), digitalization supports creativity that is capable of increasing working efficiency of traditional industry.
2.3. Role of government
Government has an important role in business model acclamation through the preservation of intellectual rights to properties (Sagiyeva et al. 2018). Although the motive in introducing new technologies or business models is focused on economic development, sometimes this is achieved with a cost. Sudden increment in global challenges for modernization has increased the stress of global industry (Bakar et al. 2020). The drastic reduction in sales of CDs over the years owing to online streaming platforms has affected a wide group of sellers. On the other hand, sales through online platforms have aided in the development of new businesses. The support of the government has been an important factor in generalizing these changing trends.
2.4. RCOV Business model
The RCOV model allows the growth of businesses in the creative industry with the help of three components namely resource and competence, value, and organization. As stated by Velinov et al. (2018), all these factors collaboratively allow the flourishing of the creative industry. The resource component allows a business to demarcate the margins and assess the competencies of a market. The value component provides a proposition on the structure and volume of revenues and the organization component focuses on the volume as well as structure of cost. All the three factors together provide a framework for a business to assess the chances of sustainable growth in a potential market. Application of innovative business model in this current changing era is highly required by the advanced global industries that are focused to ensure creativity in their business operations (Pieroni et al. 2019). In this case, it is important to say that the involvement of RCOV model in creative industry is quite fruitful while it is one kind of innovative business models that supports ultimate creativity.
2.5. Theoretical concept
2.5.1. TAM model
TAM or the technology acceptance model is an innovative approach to incorporate technological advancement in businesses. The model emphasizes two factors that ensure its credibility namely the intention of an individual to accept technology and the usefulness of the implication. The use of TAM model provides the way of implementing technological innovation in business industry to enhance the creativity (Tick, 2019). New technology requires to be accepted by the target audience to render the implication process effective. Ease of access is another factor on which the success of a new technology depends and that makes a business profitable. Social media is the most divergent market and implementation of the TAM model by businesses on this platform can prove to be effective (Alenazy et al.2019).
2.5.2. Diffusion innovation theory
The diffusion of innovation theory aims at explaining the pace and path in which an innovative business idea can reach the masses. The incorporation of innovation in a business requires an idea of the potential markets and the target audiences (Atkočiūnienė and Siudikienė, 2021). The theory categorizes people on the basis of their abilities in adapting a new structure such as innovators, early adopters, early majority, late majority, and laggards. The theory can be used by businesses to understand the extent of acceptance while launching a new product and identify the early adopters to facilitate the success of implementation. According to the explanation of Bhatti et al. (2021), application of this theory is effective to increase eventual knowledge about the digitalization and its requirement in this current changing era.
2.7. Impact of Innovative Digital Business model on Creative Industry
The creative industry has undergone a major change in the way products are launched and made accessible for the public. The digital business model has allowed businesses to utilize the latest technologies in diffusing the art forms that previously had restrictions on inaccessibility (Xu 2021). From eBooks to online music stores, digitization has enabled businesses to emerge and approach target audiences through collaborative and shared markets. Social media has immensely helped with enhancing visibility and encouraged the promotion of small businesses. People can access movies from all around the world and watch series according to wish (Gupta and Singharia, 2021). Thus it is safe to say that the digital business model provided the creative industry with a major push towards sustainable growth in the future.
2.8. Literature gap
The literature review can include a few more factors like the effects of digitalization on small businesses. Other factors like the most opportunistic markets can help in understanding the possibilities of the business models more efficiently. The remedial measures to incorporate threatened sectors can help in developing a holistic approach to business development in the industry. The most effective model in digitalization can help improve the scopes of the study, aligning the trends in the global market and the requirements of the target audience. These factors can help in strengthening the motive of the study and be used for future reference.
2.9. Summary
The chapter aimed at focusing on the major business models that support the introduction of digitalization in the creative industry. The background of the study provided the scopes in the direction and information on the opportunistic markets. Thus, it can be said that there is a potential market in the creative industry where the digital business model will have high chances of success through appropriate implementation.
Chapter 3. Methodology
3.1 Introduction
The entire research methods and tools are included in this section to understand the research value to collect original and relevant data to proceed with the research progress. In this section, there is eventual knowledge about how the research has collected and analysed the data to understand the role of innovative business models in the creative industry. The ethical considerations that have been followed throughout the research work are also described here with support of distinct evaluation.
3.2 Research philosophy
In this research work, the realism philosophy has been conducted to proceed with the research project while it is suitable for the research objectives. The main focus of this research is on understanding about the role of innovative or digital business models in the creative industry. This requires some philosophical stance that supports independent reality in place of assumptions. The application of realism philosophy provides that philosophical stance to the research work (Hoddy, 2019).
On the other hand, the use of pragmatism philosophy indicates the exploration of an individual’s experiences instead of the real vibes that are not suitable for the focused research work. The application of positivism does not support the flexibility in research work to collect relevant data and information from different sources that can be considered as a disadvantage for this research work. In addition, the scope of interpretivism indicates the examination of interconnection between research objectives which is not required for this research work. Hence, it can be said that the research work has followed realism rather than other research philosophy to fulfil the target of this research topic.
3.3 Research approach
The selection of research approaches such as deductive and inductive indicates the following way of the researchers to formulate their research activities by considering their different types of research objectives. In this research work, the deductive approach has been selected that belongs to the secondary research approach. The entire research has considered the deductive approach to reduce the time consumption throughout the research work. Since, this approach allows the researchers to get into the main point rather than any existence (Ponka et al. 2020). The research work is focused to understand the concept and role of innovative business models in the place of creative industry to ensure profitability.
However, the research work has neglected the use of an inductive approach as it is not compatible with the research objectives. Since, the application of inductive approach in research projects can produce incorrect data that reflects incorrect conclusions which are not acceptable for the research work. Hence, it can be said that the main reason for selecting the deductive approach for this ongoing research project is to ensure the correct findings that help to produce quality and valid conclusions rather than any general one.
3.4 Research design
The entire research work has followed the descriptive design instead of other research designs such as explanatory and exploratory. Since, the application of descriptive design allows the researchers to understand the actual impact of variables on the chosen concepts with support of distinct descriptions (Dinçer, 2018). However, the other research designs such as explanatory and exploratory are focused on the inconclusive outcomes instead of actual verification of the research data. Therefore, it is necessary to say that the research project has conducted a descriptive design to understand the impact of digitalization on the creative industry.
3.5 Data collection method
Considering the advantages of different types of data collection techniques, this research project has adopted the secondary qualitative technique. Since, the target of this research is to examine the impact of innovative business models in the creative industry that can be profitable through a collection of knowledge from internet sources. In this case, it is important to say that the researchers have collected relevant and valid data or information from books and journals including Google Scholar as well as ProQuest.
3.6 Data analysis method
In place of data analysis, the research has adopted the thematic analysing technique to develop its eventual understanding of the research topic. The entire research project has created and analysed the relevant theme by considering the research objectives. Through creating suitable themes, the research has examined the positive influences of digitization as an innovative business model in the modern creative industry with support of critical analysis.
3.7 Ethical consideration
Ethical consideration is one of the major parts of an ongoing research project as it influences the data collection and analysing process to achieve success. As per the views of Voltelen et al. (2018), ethical consideration plays an important role while interviews or surveys are conducted by the researchers. Since, it represents the high concern of the researchers to ensure the maintenance of required ethics during their data collection process as it is important to ensure the data validation and originality. The entire research project has followed the ethics and regulations of the UK based “Data Protection Act 2018”. The UK based “Data Protection Act 2018” suggests implementing transparent, adequate, necessary and relevant data rather than any general ones.
3.8 Summary
The above informative context has critically described the using research methods and tools by the ongoing research project to develop the eventual understanding. Moreover, it can be said that the above section has successfully represented the ethical consideration of the researchers during the research work accordingly.
Chapter 4. Data analysis and findings
4.1 Introduction
This section is focused to analyse the collected data to examine its validation and originality with support of suitable thematic analysing methods. In this section, the findings of the overall research progress are described to reach a conclusive result with support of necessary evaluation.
4.2 Thematic analysis
4.2.1 Theme 1: Digital business models have increased the market reach for organisations significantly allowing higher profits
Digital adaptation in the business industry including music, fashion and film industry has fetched several advantages while it provides ultimate innovation to ensure quality performance. The industry of film, music and fashion have fetched several changes in their business models by adopting digitalization while it supports high-cost effectiveness in place of high profitability (Wilson et al. 2021). The music industry on a global level was following traditional radio to provide entertainment to the global consumers that have faced some challenges such as network issues. This has inspired the music industry to represent some innovative ideas to develop their performance quality through holding the hands of digital platforms that require lower investment to produce quality performance.
The film industry has also followed some digital appearances instead of traditional experiences while they have involved an OTT platform that is capable of reducing typical challenges with traditional theatres and dramas. The involvement of advanced digital platforms has inspired the traditional book publishing industry to launch their books as an e-book or pdf to involve their targeted consumers with the support of multiple features and flexibility. The OTT platform requires limited investment to get exclusive experiences of enjoying the quality and required entertainment while the public can get a huge collection of films according to their different preferences (Dhabale et al. 2018). In this case, it is important to say that the digital business models such as the “E-commerce model” in the film industry have increased the marketing level with support of high consumer’s engagement.
This kind of entertainment was missing in traditional theatre and drama. Hence, it can be said that the traditional business companies such as film, music and fashion have represented their quality performance in different social media platforms including YouTube, Facebook and Instagram. This kind of creativity is capable of increasing their marketing growth by considering the “Free-Model” as a digital business model. Since, the adaptation of social media platforms supports an intensive speed to reach global consumers in a few seconds that reduces the cost of marketing operation also. As per the views of Sundaram et al. (2020), the application of digitalization is also capable of reducing the negative impact of current pandemic difficulties as it supports creativity to ensure marketing growth without any losses regarding consumer’s involvement.
4.2.2 Theme 2: The digitization of business models negatively affected theatres and CD makers
The application of advanced digitalization has negatively influenced the traditional theatres and CD while some social and legal restrictions have been introduced after the outbreak of COVID-19. Realising the negativity of this current pandemic situation, people prefer to enjoy entertainment through using digital platforms, which reduces the popularity of traditional theatre in comparison to the OTT platform. Since, the use of digital platforms instead of involving any traditional theatre has become quite profitable and time-consuming (Ghobakhloo, 2020). Furthermore, the tendency of using CD to enjoy drama and cinemas has reduced after implementing digitalization in business models as it requires more time and cost to purchase CD from the shops. However, the use of digital platforms such as social media provides the quality experience to enjoy different types of entertainment to the global public.
The consideration of digital appearances such as Sunday suspense has reduced the use of traditional radio. Hence, it can be said that the adaptation of digital platforms as a creative business model has reduced the involvement of the global public with traditional entertainment tools such as radio, theatre and purchasing CDs. As per the views of Ghobakhloo (2020), there is a high requirement of accepting digitalization for reducing the unnecessary wastage of money with support of sustainability. Since, the use of traditional entertainment tools requires more time than digital applications. Therefore, it can be said that the high tendency of involvement with digital advancement has negatively influenced the public tendency of involvement with traditional entertainment tools.
4.2.3 Theme 3: Digitization of businesses have ensured heightened creativity with minimum cost
The adaptation of digital business concepts become fruitful for the traditional film, music and fashion industry while it supports high marketing growth with huge consumer engagement. In this place, it is important to say that the fashion industry has adopted the digital social media platform to represent the variety of collections in fashion brands, design and quality. This kind of creativity becomes profitable for the fashion industry. Since, there is no cost of maintaining in-store operations while every managerial operation can be possible through the online platform at a minimum cost. According to the explanation of Reim et al. (2020), digital business models are capable of ensuring quality data protection privileges with support of artificial intelligence that helps the business industry to ensure quality performance by reducing internal operational risks. Hence, it can be said that the adaptation of digitalization in the traditional business industry is capable of increasing heightened creativity with the presence of low operational costs.
4.3 Summary
The above critical analysis has developed the eventual knowledge regarding the impact of digital innovation in the creative business industry to ensure quality performance. In addition, there is a distinct understanding of the profitability of digital adaptation in the film, music and fashion industry by reducing the operational cost.
Chapter 5. Conclusion and recommendation
5.1 Conclusion
The entire research work has increased the in-depth knowledge about the innovative business models and their positive influences on the modern creative industry which is the main focus of this research work. In addition, the entire research has critically analysed the role and profitability of digitalization to ensure the profitability and marketing growth of the traditional film, music, book publishing and film industries. Moreover, there is ultimate information about the digitization process of the traditional business industries to develop their performance quality with support of high consumer involvement.
5.2 Linking with objectives
Linking with objective 1: “Evaluating the various models of business in the creative industry”
The above discussion on different types of effective digital business models such as Free-Model and E-commerce has successfully met the target of this research objective. Since, there is eventual knowledge regarding every digital business model and its positive influence on the creative industry with support of critical analysis. Therefore, it can be said that the involvement of different innovative business models and their influence evaluation has been provided in the abovementioned theme 1.
Linking with objective 2: “Discussing the models of business in the creative industry”
In the discussion of themes 1 and 2, there is a critical discussion based on different digital business models by analysing their positive impact on the creative industry including film, music, fashion and book publishing. In addition, there is a critical analysis on how the traditional business industries have developed their business operating concepts by considering the digitalization to ensure their marketing profitability eleven after the current pandemic situation. Hence, it can be said that the target of this research objective has been met successfully by the above discussed thematic analysis.
Linking with objective 3: “Recommending strategies to improve the practice”
The description of theme 3 has evaluated the needs of digitalization by describing its flexibility and profitability in the creative industry. In addition, there is an ultimate understanding of how digital business operations can improve the profitability and working quality of these above-mentioned business industries such as fashion, film, book publishing and music. Therefore, the target of this research objective has also been met by the above mentioned thematic analysis and findings while there are some effective operating strategies to increase consumer’s involvement range with support of high cost-effectiveness to ensure quality performance, especially after this current pandemic toughness.
5.3 Recommendation
There are some effective ways of improving the business performance and strategies in the creative industries which are mentioned below.
- In place of e-commerce business model adaptation, the business industry can improve its marketing growth by targeting consumers according to its products and services. Since, it will help them to reach their targeted audiences by analysing their different preferences and demands.
- The improvement of consumer’s involvement causes the business industry to consider their subscription or services purchasing fees by realising the negativity of this recent pandemic deficiency. Since, modern global consumers prefer quality services in a highly cost-effective approach that is also compatible with their current financial situation.
5.4 Future scope
The informative discussion of the above context is capable of increasing the knowledge and understanding level of the global business industry regarding the impact of digitalization to ensure quality performance. Furthermore, the above critical discussion on different types of digital business models and their positive influence on marketing growth are also capable of bringing marketing innovation and creativity to satisfy advanced consumers according to their changing demands. Moreover, the involvement of effective recommendations is quite helpful for the future growth of the global business industry.
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