In these times of rapid technology advancements coupled with the global media world being turned on its head in the face of COVID pandemic, a digitization strategy for your creative business is no longer a “nice-to-have” but a “Must-Have”.
“Massive digitalisation coupled with emerging technologies, such as virtual and augmented realities, can create new forms of cultural experience, dissemination and new business models with market potential” OECD Report on Culture and Creative Sectors.
In this article, I set out some of the pertinent questions you would need to consider as you set out to develop a digitization strategy for your business.
The first area of consideration relates to the impact of digitisation on your business model. Does digitization impact your business model? How has digitization impacted your business model? Does it impact it positively or negatively?
Consider how resilient your business model is to digitization? Is digitization disrupting your business model or is it opening new and different opportunities?
If digitisation is hurting or disrupting your business model, what are the new opportunities that are being presented by the global digital trend? Are there new ways that business is now being conducted in your space, which were never there before or perhaps done differently?
The second area to consider when assessing the impact of digitization and developing a digitization strategy for your creative business is to look at the impact of digitization on your process of creating, manufacturing or producing your creative product and services. How has digitization made it easier, harder or different?
Has digitization presented means and ways that could reduce your cost of creation, manufacturing or production?
The advancement of technology for example has in certain respects reduced the costs of production, enabling high-quality content to be produced for much less than what it used to be. This could be a positive if it applies to your creative business. these reduced costs of production however may also mean there is now an influx of competition as barriers to entry are reduced. Will such an increase in any way impact the competitive edge your business uses to enjoy?
The third area to consider when you are reviewing or developing a digitization strategy for your creative business is in the area of marketing and distribution. Global lockdowns saw a flood of content and other creative products being made available on digital platforms, most of it even being made available free of charge. Notwithstanding this however physical artworks and other creative products and experiences are not about to be erased from the face of the earth. What does this trend mean for your creative business?
Although the physical creation and experience of creative products and services will remain, the marketing and distribution channels are the ones likely to be most impacted by digitisation. As a business, you must therefore consider how this impacts your creative business. The sharp increase in demand for content distributed online has resulted in an increase in streaming platforms. although your strategy may involve positioning yourself to also provide your creative products through some of these already existing online platforms, be aware of the hoops that you will have to be willing to overcome in order to do this. Would this strategy therefore be in the best interest of your particular business?
There may be an opportunity to create your own marketing and distribution channel whether as a solo project or in collaboration with other like-minded creative businesses and thereby build and service a niche platform. when, for marketing and distributing, your creative product or services could definitely form an integral part of your digitalization strategy.
I trust that you found some of these tips useful. Should you wish to engage with me about any of the concepts raised in this article, feel free to reach me on my contacts below.
Blessings as you build your creative business!
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Zama Mkosi is a qualified business and media lawyer, with over two decades of experience and the CEO/Founder of multiple businesses including BIZLAWCOACH – an organisation that uses technology to develop and deliver training aimed at empowering small and medium size business owners with relevant and practical skills and knowledge necessary to build, protect and sustainably grow their businesses whilst managing associated business risks for themselves and key stakeholders.