3C 4 Incubators Business Model

3C 4 INCUBATORS
Business Model
3C 4 INCUBATORS
Business Model
Published by: 3C 4 INCUBATORS
Coordinated by: Lazio Region
Co-financed by: MED Programme - European Regional Development Fund
October 2014
www.3c4incubators.eu
CHAPTER 1
THE OBJECTIVE OF THE CAPITALIZATION PROJECT
This work originates from the different experiences with success in former UE projects.
The objective is to capitalize on the former projects outputs, creating a broader vision.
By this more complete vision, we hope to make a contribution to Cultural and Creative SMEs, to Enterprise
Incubators and to SMEs tutors.
The final aim is to enhance the ability to generate business models in a balanced and complete way and
also to focus attention to the relationship between SME/territory and individuals.
The conclusions of this document also provide some proposals about the role of a new model of Cultural
and Creative Incubators, and describe the context in which the present work could be used.
This document is designed to be

A PRODUCT ORIENTED TO SUPPORT DIRECTLY CULTURAL AND CREATIVE SMEs IN GENERAT-
ING NEW BUSINESS IDEAS
A SET OF INSTRUMENTS AND TOOLS FOR THEIR ACTIVITY
A PRODUCT MAINLY USED BY CULTURAL AND CREATIVE SMES but also by their tutors.
7
CHAPTER 2
THE OUTPUTS TO CAPITALIZE
2.1 COMPUTERIZED INNOVATION AND INTERNATIONALIZATION

CAPACITY AUDIT METHODOLOGY FOR SMES
WHAT IS THE OUTPUT

The effective deployment of innovation has been widely recognized as a means of building a sustainable
competitive advantage and thereby enhancing organizational performance.
A focus group discussion of senior executives from innovative and internationalized firms in Western
Greece was conducted to test user understanding of the initial version of the framework. Revisions were
made based on their comments.
TARGETS
The capacity audit methodology was conceived for:
SMEs
MAIN GOAL OF THE OUTPUT

This deliverable is a methodology setting specific criteria, defining key-sectors (organization staffing quality
accumulative knowledge infrastructure competitiveness efficiency finances - etc.) and providing a
concrete process for assessing an SMEs relevant potential.
The questionnaire consists of 13 sections: sections 1 to 11 consist of the innovation audit capacity for SMEs
while sections 12 and 13 consist of the internationalized audit capacity of SMEs.
In sections 1, 2, 3 and 4, executives that answer the questionnaire are asked to rate their capability with regard
to several specific subjects. The ratings can range from 1 (very poor) to 5 (extremely high). The executives may
also choose to rate their capabilities with three middle rates 2 (poor), 3 (middle) and 4 (high). The respond-
ents should add the number five (5) to the selected answer if it can take the gravity rate 5, the number one (1)
to the answer that can take the gravity rate 1 and the same for the rest of the rates.
In sections 5 to 13, the executives have to answer YES or NO to relevant questions that test their capability
in specific sections. The respondents should add the number one (1) to the selected answer and the num-
ber zero (0) to the answer that does not constitute an answer that describes the enterprise.
All sentences should be answered by the respondents. In case some sentences are not applicable to the
relevant enterprise the answer to these specific sentences is NO.
The questionnaire should be answered by the general management of the enterprise.
According to availability, a convenient method to get the answers to the questionnaire is during the imple-
mentation of the Social Consultation Territorial Focus Groups Sessions.
8
The sum of the rates of each SMEs accumulated answers show the final score of this group of questions
in relation to the maximum possible score of the same group. The final scores of each group of answers
have been aggregated and hence we have an overall rating of the enterprise.
2.2 T
OOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL
ENTERPRISES (ICE)
The Toolkit is a paper guide that collects specific reflections, guidelines and tools (formats) based on the
most relevant management needs of cultural SMEs.
TARGETS
The Toolkit was written for:
Tutors of cultural enterprises
Cultural Managers
Cultural Entrepreneurs

How to emphasize the particular strengths of a cultural enterprise?
How to avoid business failure risks due to certain starting point weaknesses?
9
The Toolkit for Cultural Enterprise Incubators aims to give a contribution to the former questions in terms
of reflection, approach and managerial instruments.
As final results of all these contributions, the Toolkit proposes 4 kinds of tools.
Starting from the above listed needs, the Toolkit proposes specific tools to manage a cultural business.
It is possible
Coherently to identify
with the framework 4 categories
former ofintools:
described and order to reduce the cultural enterprise
weaknesses and to promote the strengths.
MANAGEMENT TOOLS INNOVATION

TOOLS
Portfolio,
Project Management, Problem Solving
Buying Policies,
Financial Plan,
Training
STRATEGIC COMMUNICATION
TOOLS TOOLS
Business and Communication Strategy

Marketing Plan + and Plan,
Networking Evaluation of Results
2.3 CREATER PILOT PROJECT OUTPUTS (CREATIVE GROWTH)

CREATER CREATive growth in Emilia-Romagna (Crescita Creativa in Emilia-Romagna) - is a support path for
creative businesses as a pilot project within the EU project Creative Growth. CREATER consisted of a six-
INTRODUCTION 17
month programme exclusively developed to support start-ups from the CCI sector based in Emilia-Romagna.
10
WHAT IS THE OUTPUT
CREATER supported start-ups through the following services:
Advisory services:
- Advisory services are mainly implemented during direct meetings (at least 3 during the period) and
through back office activities (40 hours for each group)
- Advisory services include: A check-up of the companies needs, activity planning, direct support with
specific issues (writing a business plan, participating in a call for proposals, communication etc.)
- The tool Creative Enterprise Trajectory
Training Sessions on Business Management
On-demand consultancy: 16 hours of consultancy with an external expert
Networking services
- Each company is associated with a mentor start-up
- Contact identification among possible customers and suppliers
- A one-day networking event Create The Net to enable start-ups to meet with peers and possible
partners
- Inclusion of companies in the start-up community and in initiatives dedicated to them
TARGETS
N
ew businesses in the creative sector based in Emilia-Romagna (i.e. music, entertainment, media, com-
munication, cinema, audio-video, literature, design, amusement parks and visiting places)
N
ew businesses in other sectors, but with an application in the creative sector

D
evelopment of a support path for creative businesses based in Emilia-Romagna:
- Identification of companies needs
- Analysis of partners experiences and tools
- Development of a service offer
T
est of the path on a selection of businesses (10 enterprises/projects)
P
romotion of the selected enterprises in Emilia Romagna region through a public event
2.4 MODEL 2INS BUSINESS PLAN 2INS CLUSTERS

WHAT IS THE OUTPUT
The output is a useful and ready-to-use model, that can be used by SMEs to assess their current status and
identify development strategies.
TARGETS
The model business plan has been conceived for:
SMEs
11
In order to anticipate changes envisaged by the market, to adapt to the changes that have already occurred,
to help the company reduce the environmental impact, and to become more competitive, each company
passes through a necessary evolution.
Why should a company which intends to innovate or internationalize prepare a business plan? Both to
analyse its own project and to involve stakeholders in the process of changing, so as to search for partners
or donors, etc. Subjects will try to understand the necessary information to express this change. In order to
choose such necessary information, it is fundamental to understand the meaning of innovation and inter-
nationalization processes, to identify which direction to go, and to foresee the future. We hereby identify
these necessary pieces of information.
12
CHAPTER 3
CULTURAL ENTERPRISE, TERRITORY AND INDIVIDUALS
The business model for Cultural and Creative SMEs (henceforward C&C SMEs) is inspired by particular
themes that make this issue very different in comparison with others industries.
In this case we need to consider how the business dimension could be merged with:
the territory
the individuals living in or visiting the territory
There are many factors that could play a relevant role, in terms of relations, added value, and innovation.
Cultural and Creative Products/Services cant be assimilated into ordinary products/services. In this specific
case, the central issue is not to satisfy a delimited requirement or to make functional a match between demand
and offer. The true challenge for a cultural and creative business model is to stimulate and give value to a
relation system.
The relationship between C&C SMEs, the territory and the individuals (living or visiting the territory), have
to be a two-way relation. The output for everyone is something more than the pre-existing condition,
linked to the experience.
An experience that produces new ideas, sensations, innovation for everyone (C&C, SMEs, Territory and
individuals). However, this two-way relation is only potential, it needs to be activated.
The business model has to facilitate and contribute to the first business idea and the necessary factors to
exploit this potential.
3.1. CULTURAL SMES AND TERRITORY

The Territory is composed of:
institutions
education system
cultural resources
other enterprises
financing system
enterprises/ideas incubators
physical environment
infrastructures
13
Examples of the two-way relation could be the following:
THE C&C SMES THE C&C SMES
SUBJECT COULD GIVE COULD RECEIVE
institutions ideas/projects authorization
people that manage or take care of public resources sponsorship
activities that make the territory valuable and funds
attract people or investors law opportunities
recovery of degraded areas spaces/locations
enhancement of traditions, events or others involvement in events
public resources

education system ideas/projects skilled people
trainers expertise
innovative education tools business assignments
opportunity to experiment
research and development opportunities

cultural resources ideas/projects spaces/locations
people that manage or take care of specific tasks inspirations
activities that make the resource valuable and involvements in events
attract people or investors
recovery of degraded resources

other enterprises ideas/projects sponsorship
expertise funds/equity
innovative management tools supply opportunities
innovative customer relation tools business assignments
new products/services/solutions expertise
opportunity to experiment
research and development opportunities
distribution channels
access to new customers

enterprises/ideas quality and visibility if the C&C SME is innovative information
incubators expertise orientation
opportunities to build new projects and consultancy
partnerships with other networks of incubators, tools
enterprises, etc locations
opportunity to test/experiment ideas
the reason in support of the incubator networking opportunities
business acceleration
access to financing measures

financing system ideas/projects sponsorship
expertise funds/equity
innovative management tools business assignments
innovative customer relation tools expertise
new products/services/solutions distribution channels
access to new customers

physical activities that make the territory valuable and inspiration
environment attract people or investors location
recovery of degraded areas scenarios for the delivery of C&C solutions

infrastructures Innovation distribution channels
location
scenarios for the delivery of C&C solutions

There is also another intangible exchange that is worth exploiting: to give/receive inspiration and a unique identity.
A C&C business model has to provide orientation about the needed elements to activate the long list of
relations provided above.
14
3.2 CULTURAL SMES AND INDIVIDUALS
The C&C SME cannot be a separated entity, the relationship with the individuals is the first impetus for the
business idea and the organization.
The individual is not simply a customer but is also a source of information, inspiration, ideas, and identity.
The individual that enjoys a C&C product/solution receives new experiences (or emotions) and gives expe-
rience back to the SME, if that organization is able to take it.
This experience could become a new idea, if the SME is able to understand it and to get the weak signals.
In order to achieve continuous learning from individuals it is necessary to have tools, and first of all, knowl-
edge. For a C&C SME, the expertise of a sociologist, a psychologist, and a cultural anthropologist is impor-
tant. These are very particular roles for a business organization, but, in this case, they offer very useful
knowledge about the local culture and its understanding, allowing us to predict or to supply new ways of
expressions (new offers/solutions from the SME side).
This ideal relationship between C&C SMEs and Individuals also engenders a particular kind of performance
measure: the well-being index.
It will be useful to provide the C&C business model with elements that can help the SME to identify how to
create and develop an effective relationship with the territory individuals (living and visiting people).
3.3 THE RELATION MANAGEMENT

Therefore, a C&C business model has to acknowledge all the elements that can create a new Relation Box
in the territory, with individuals and public and private organizations.
The drivers of this relation are:

number of relations
duration
value
Number'of''
interac/ons'
)'
To#be#
cen
rie
'Ex E'
er LU
pe
om VA
As#is#
DURATION'
t
us
(C
A C&C business model has to identify what the necessary factors for creating a relationship are. The man-
agement of C&C business has to develop these 3 factors, in a balanced way.
15
CHAPTER 4
BUSINESS MODELS AND MANAGEMENT TOOLS
4.1 CULTURAL INCUBATORS BUSINESS MODEL, CULTURAL

SMES AND MANAGEMENT TOOLS: A UNIQUE SYSTEM
The mission for a cultural incubator is to promote not only cultural enterprises or business, but to develop
a cultural business system.
This system could be based on:

enterprises
private and public organizations
territories
or could be the mixed result of a network composed of all these different entities.
In all these cases an incubator needs to:

a dvise a cultural SME in the phase of idea generation (by experiences, business models, and using a
coaching approach)
s upport the SME in a more technical way during the start up phase (by business plan tools, management
education, networking facilities, including financial networks)
a ccompany, pragmatically, the SME during the early management phase (by incubation, training, tutoring, tools)
facilitate the expansion phase, when the enterprise will leave the incubator because it is able to carry on
cultural business independently (by activating the right strategic lever e.g. internationalization, technology
growth, business model evolution etc)
The following picture shows in more detail this sequence, which can be defined as an Incubation Model:
Idea Generation
Sunstainabe Development Resilience Urban
Business angels
Crowdfundig
Venture capitals
Creativity Public finding
Rave
Innovation\Internationalization support
Design thinking
methodologies
Playful multidisciplinary
regeneration
workshops Productt analysis

Entrepreneurial
assessment
team building (ex
managers, designers,
technicians, venture
partnerships)
Psychological
assessment
Team alignment
assessment
Motivation support
Boot-camp
(Max 6 months)
Quan%ta%ve)and)Qualita%ve)monitoring)and)Repor%ng)
)in)order)to)establish)and)mantaing)trust)between)SME)and)Incubator))
16
In order to be effective in developing each phase, this model has to use business models and tools containing
the following requirements:
customized for cultural business,
able to give answers at all 4 stages (idea, start up, early stage, expansion)
flexible,
usable by enterprises and incubators tutors.
Our work and this report is focused on two contributions for a cultural incubator (and, obviously, for a
cultural enterprise too):
the business model for the cultural enterprise
the management tools for the cultural enterprise
A deep understanding of the cultural enterprise business model is a pre-requisite for the cultural incubator activity.
By this strategic model the incubator can make it possible to understand the following:
INCUBATION
STAGE CONTRIBUTION FROM CULTURAL BUSINESS MODEL MANAGEMENT TOOLS
Idea Better comprehension of cultural ideas proposed by aspiring selection of appropriate management tools
generation entrepreneurs (are they simply ideas or business ideas?) to satisfy business model requirements
Possibility of selecting enterprises to incubate with higher syner-
gy. By means of various kinds of collaborations, a company could
reinforce the business model of other incubated enterprises
Start up clear identification of critical management areas to establish selection of appropriate management tools
to satisfy business model requirements
Early Stage clear identification of critical management areas to reinforce selection of appropriate management tools
Expansion clear identification of critical management areas to develop selection of appropriate management tools
After dealing with these strategic matters, it is possible to reach a good definition of what the enterprise
business model is, at the moment, and has to be, in the future.
To be aware of this perspective, it must be allowed for the enterprise and for the tutor, to select the right
management tool in order to establish, reinforce and develop specific business model elements.
The following picture describes the relationships among the incubator business model, enterprise business
model, and management tools.
17
It is possible to identify 3 levels:
1st level
The incubator business model is the container, the ideal micro-environment in which the enterprise
could develop from idea stage to development stage.
2nd level
The cultural SME business model, is the way to understand the idea, its soundness, the path from the stage
idea to the following stages.
The enterprise business model helps the incubators tutor focus on real strategic requirements.
It is also a perspective from which to analyse the cultural businesses/enterprises to gather into the incuba-
tor. By this it could be possible to create a cultural system and not only to rent spaces to several enter-
prises. The objective is to select SMEs with synergizable business models.
3rd level
The management tools represent the operative level, which must be activated only after a clear understand-
ing about business models requirements in order to select the appropriate tool. The tool is simply a tool, it
can produce results only if it is used to provide solutions for the right need.
A summary of this approach could be:

Incubator business model as general container and road map
Enterprise business model as priority perspective for the incubator to understand cultural business
status and identify ways to develop it.
management tools as instruments (for tutors and enterprises) to reach the required development of the
enterprise business model
In the following sections of this book a customized business model for cultural enterprise will be presented.
18
CHAPTER 5
CULTURAL SMES BUSINESS MODELS
5.1 A BUSINESS MODEL FOR CULTURAL AND CREATIVE SMES

What is a business model? A good answer is the following:
!THE$ARCHITECTURE$THAT$ENABLES$A$SME$TO$
!
ACQUIRE( CREATE( DELIVER(
!VALUE(
What is Value?
( FOR
PROFITS
SMEs
EMPLOYEE SOLUTIONS FOR

SATISFACTION CUSTOMERS
The need to have a sound business model could be better specified by the following points:
to have a cultural resource does not mean having a (cultural) business idea
to have a business idea does not mean having done business
19
These points are especially true for cultural businesses, because the specific characteristics of C&C SMEs
can generate needs to manage:
It is possible to propose useful management tools in order to manage these needs, but it is more useful to prevent
failure risk, from the very early stages of a cultural/creative enterprise, by focusing on a detailed business model.
An interesting approach to this is made by the Business Model Canvas.
This approach proposes a strategic management template for developing new business models.
It is a visual chart with elements describing a firms value proposition, infrastructure, customers, and finances.
It assists firms in aligning their activities by illustrating potential trade-offs.
The Business Model Canvas was initially proposed by Alexander Osterwalder based on his earlier work on Busi-
ness Model Ontology. Since the release of Osterwalders work, new canvases for specific niches have appeared.
In this document we developed a cultural version. The aim is to create a framework for entrepreneurs and
tutors, easy to use but, at the same time, covering all the strategic keys that a cultural/creative SME has to
understand to start with a business or develop it.
The Business Model for C&C SMEs, proposed in the following pages, is a way to create cultural and creative
business ideas:
sound,
balanced,
and aware
The business model will help entrepreneurs and tutors define specific + strategic + critical factors enabling
cultural SMEs to acquire, create, and deliver value. There are seven factors:
1. Value Proposition
2. Customers
3. Customer Relationships
20
4. Channels
5. Key activities
6. Key resources
7. Key partners
Factors 2, 3, 4 are related to revenue creation.
Factors 5, 6, 7 generate costs or are related to cost optimization.
Alexander Osterwalder Business Model Canvas
In the following section of this document for each strategic key factor of the business model, we will provide:
theory pills
checklists helping to define the contents of key factors
links to tools that allow one to pass from the Business Model level (strategic thinking) to the related
Management Tools level
5.2 BUSINESS MODEL KEY FACTORS: CUSTOMERS
A business model may define Customer Segments. An organization must make a conscious decision about
which segments to serve and which segments to ignore. Once this decision is made, a business model can
be carefully designed around a strong understanding of specific customer needs.
21
The customer needs will, of course, be strictly linked to Value Propositions but also have a very deep impact not
only on communication and distribution policies, but also on internal choices, like Key Activities and Resources.
The careful definition of the Customer targets will influence the overall business model.
In order to reach an effective relationship with the territory, the C&C SME could have a good part of its
customer portfolio comprised of subjects located in its territory.
It is possible to assess if ones business model is sound enough with regard to Customer Segments with
the help of the following checklist.
How to build a sound and aware Business Model for a cultural and
creative business:
Key Factor 1 - Decision About Customers:
MAYBE,
BUT IT
NOT THE WOULD BE
CASE BETTER TO
OR NOT REINFORCE ABSOLUTELY
KEY QUESTIONS ENOUGH THIS POINT YES
1. Are we able to give to the customer new solutions? Can we discover
unsatisfied customer needs? (Is our offer related to new usage circum-
stances for cultural resources? Is our offer related to new use functions for
cultural resources? Are we working in a growing trend business?)
2. Are they willing to pay for our offer? Are they willing to pay enough? Will
they pay at least 30% more than our production cost? Which aspects of our
offer are really valuable? Are we really able to make intangibles profitable?
3. They could find other ways to satisfy their cultural/creative need (sub-
stitutes product/services)? Are we competitive/different in other ways?
Also in the medium-long term?
4. Have we chosen a good customer portfolio? If a target group would have bad
performance could another target group balance it? When a target group is
in a low sales season, is another one in a high sales season? If a target group
has a long payment cycle, does another one have a short payment cycle?
5. Have we chosen a good customer portfolio? Is the strategy that we have
to carry on in order to satisfy a target group compatible with other strat-
egies planned for other target groups?
6. Have we chosen a good customer portfolio? Is it possible to exploit syn-
ergies? Can we reach more than one target group with the same com-
munication or distribution channel?
7. Have we created a good customer portfolio with subjects located in the
territory? (e.g. institutions, education system, enterprises, individuals)
Are you satisfied with your Customer Segments?

Is this a strong point of your business model?
Do you need to reinforce any aspect of it? If necessary, take a look at the following management tools:
22
Management Tools Useful to identify Customer Segments
MANAGEMENT TOOLS WHY USE IT?
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL In order to estimate the economic contribution
ENTERPRISES ICE to the company income generated by customers.
3. Long Financial cycle
3.3 Business plan
Computerized Innovation and Internationalization Capacity Audit Methodology To assess specific innovation customer needs.
for SMEs (2INS Clusters)
3. Principal component loading matrix for technology acquisition and exploitation
9. Marketing capability
9.1 Relationship of management with major customers
Computerized Innovation and Internationalization Capacity Audit Methodology To assess specific innovation customer needs
for SMEs (2INS Clusters) and identify new international segments.
9.2Knowledge of different market segments
MODEL 2INS BUSINESS PLAN (2INS Clusters) To assess specific customer needs and identify
3. Market Perspectives new markets.
3.1 Analysis of the size and trend of the reference market
5.3 BUSINESS MODEL KEY FACTORS: VALUE PROPOSITION
The business model has to describe the bundle of cultural and/or creative products and services that create
value for a specific Customer Segment.
The Value Proposition is the reason why customers turn to one company rather than another.
It solves a customer problem or satisfies a customer need.
Each Value Proposition consists of a selected bundle of products and/or services that cater to the require-
ments of a specific Customer Segment. In this sense, the Value Proposition is an aggregation, or bundle,
of cultural/creative benefits that a company offers customers.
It is possible to assess if your business model is sound enough with regard to Value Proposition with the
help of the following check list.
23
How to build a sound and aware Business Model for cultural and
creative business:
Key Factor 2 - Decision about Value Proposition:
MAYBE,
BUT IT
NOT THE WOULD BE
CASE BETTER TO
1. Often the value proposition in a cultural and creative business is much
too intangible and in some cases difficult to understand. Is your value
proposition easy to understand? Can it be described in a short sentence?
re you the first in the market with regard to a relevant characteristic?
2. A
3. Is the value proposition different from competitors propositions?
4. Do you have enough of an advantage over the first competitor?
5. Can you defend, in the long term, your advantage? Can a competitor fill
the gap in the short term?
Are you satisfied with your Value Proposition?

Do you need to reinforce any aspect? If necessary, take a look at the following management tools:
Management Tools useful for defining a Value Proposition

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- To reflect on the general framework upon which
PRISES ICE unique value propositions will be founded.
1- Cultural Background
1.1 cultural background
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- To have a better understanding of how to create
PRISES ICE value.
1 - Cultural Background
1.2 start up
1. Principal component loading matrix for an internal technological environment.
1.1 Technology is regarded as a key success factor.
1.2 Top management actively participates in decisions related to techno-
logical issues.
Computerized Innovation and Internationalization Capacity Audit Methodology In order to develop specific innovation requirements.
1. Principal component loading matrix for an internal technological environment
1.3 The budget for technology development is continuously improved.
Computerized Innovation and Internationalization Capacity Audit Methodology To develop specific innovation requirements.
1.4 Technology strategy supports business strategy.
1.5 Company targets are set to be technology leaders in the field.
24
1.6 Technology strategies of the company are shared and applied by every
unit of the company.
Computerized Innovation and Internationalization Capacity Audit Methodology To develop a new mind-set within the organization.
1.7 Organizational structure is designed in such a way that it encourages
decision making. Jobs are designed to encourage autonomy in teamwork.
1.9 There are interdepartmental teams assigned for innovation in products
and processes.
1.10 Employees are authorized to make their own decisions in the planning
and control process of their activities.
1.11 Company culture encourages technology development and application
and regards it as a strategic factor.
1.12 The company shows learning organization characteristics by creating,
sharing, applying and transferring knowledge as well as learning from suc-
cess and failure.
1.13 Communication channels are open, clear and safe for ideas, decisions and
knowledge especially between R&D, top management and manufacturing.
1.14 Change is regarded as an opportunity rather than a threat. The organiza-
tion has the structural and cultural capability to predict and adapt to changes
in the future.
1.15 Publications and scientific activities such as congresses, symposiums,
etc. related to technological issues are followed and participated in.
1.16 Company encourages diversification in the skills of its employees.
Computerized Innovation and Internationalization Capacity Audit Methodology To assess the current status and identify develop-
for SMEs (2INS Clusters) ment and improvement strategies.
4. Innovation factors inventory.
4.2 Current state of the project (early stages/final stages/well established but
not yet in its final stages/required to develop unfamiliar working methods)
Computerized Innovation and Internationalization Capacity Audit Methodology To assess the current status and identify devel-
for SMEs (2INS Clusters) opment and improvement strategies.
4. Innovation factors inventor.
4.6 The project can be divided into stages needing different resources and skills.
25
4.8 Characteristics of the team members: they have a good understanding of
their personal differences/each others personal needs/a shared vision of the
teams future achievements/a clear sense of shared purpose/pull together to
deal with unexpected problems/are willing to take responsibility for making
new ideas work/are committed to making new ideas work/use personal con-
tacts to help the team in various ways/have contacts outside the team that
are helpful/ good at learning from its mistakes/ talk things over constructively
when things go wrong.
4.9 Characteristics of team leadership: it tends to be inspirational/creative/
result-oriented/it concentrates on monitoring progress
4. Innovation factors inventory
4.10 Characteristics of the team: it is creative/imaginative at work/produces
knowledge that did not exist before the team was formed/is concerned with
knowledge management/is productive/it produces good quality of product
or service for its customers.
5. Learning capabilities.
5.1 Technology development trends/ capacity to assess technologies relevant
to a firms business strategy.
Learning capabilities.
5.2 Work teams are encouraged to identify opportunities for improvement/
the firms core competencies and matching technological capabilities to mar-
ket needs
Learning capabilities.
Computerized Innovation and Internationalization Capacity Audit Methodology
5. Learning capabilities.
5.3 SME assimilates acquired knowledge/learns the lessons of experiences/passes
lessons learned across boundaries and time.
5. Learning capabilities
5.4 The SME cultivates learning readiness and invests in learning/pays
attention to tacit knowledge.
R&D capabilities
6.1 Existence of mechanisms to encourage and reward inventiveness and
creativity/for transferring technology from research to development.
Computerized Innovation and Internationalization Capacity Audit Methodology To assess the current status and identify
for SMEs (2INS Clusters) development and improvement strategies.
6. R&D capabilities.
6.2 Existence of functions (departments) involved in concept development
and screening/clear project targets, project phase standards and project
managing regulations/relevance of an R&D plan to the corporate plan.
6. R&D capabilities
6.3 Application of advanced designing methods, such as reengineering.
26
6. R&D capabilities.
6.4 Presence of established protocols such as design for manufacture,
design for customer use.
for SMEs (2INS Clusters) opment and improvement strategies
11. Strategy planning capability.
11.1 Ability to identify internal strengths and weaknesses/external oppor-
tunities and threats.
for SMEs (2INS Clusters) opment and improvement strategies
11.2 Goal clarity.
11.3 Availability of a clear plana road map with measurable milestones.
MODEL 2INS BUSINESS PLAN (2INS Clusters) To assess specific innovation customer needs and
2. DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALI- to develop internationalization requirements.
ZATION PLAN.
2.1 Detailed description of the innovation plan (Description of the innova-
tion project/Objectives of the innovation project/Origin of the innovation).
MODEL 2INS BUSINESS PLAN (2INS Clusters) To assess specific innovation customer needs and
2. DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALI- to develop internationalization requirements.
ZATION PLAN.
2.2 Detailed description of the internationalization plan (Description of the
internationalization project/Objectives of the internationalization project/
Origin of the internationalization).
1.1 Technology is regarded as a key success factor.
1. Principal component loading matrix for an internal technological environment
1.2 Top management actively participates in decisions related to techno-
logical issues.
CREATER PILOT PROJECT OUTPUTS (Creative Growth) To get inspired by the content and implemen-
Planning and implementation of the support path "CREATER". tation aspects before launching a support pro-
gramme for CCI start-ups.
CREATER PILOT PROJECT OUTPUTS (Creative Growth) To get inspired by the content and implemen-
Planning and implementation of the support path "CREATER". tation aspects before launching a support pro-
gramme for CCI start-ups.
27
5.4 BUSINESS MODEL KEY FACTORS: DISTRIBUTION CHANNELS
The Distribution Channels describes how a company reaches its Customer Segments to deliver a Value Proposition.
Distribution, and sales channels, make up a companys interface with customers. Channels are customer
touch points that play an important role in the customer experience.
The distribution channel represents the access point for the service and/or to the product; it is the way to deliv-
er your offer. Without a distributing channel your customer cannot have or cannot use your product/service.
Examples of distribution channels in the cultural and creative business could be internet, other mobile
devices, a sales agency, help desk or other counters in the territory, corners or offices in a cultural site, etc.
Several elements in the territory could represent a distribution option. For example: other enterprises could
allow access to their customers, but also the physical environment could be the place where to distribute the
product/service and/or local infrastructure (routes, buildings, digital networks, etc) could allow one to reach
their customers.
It is possible to assess if your business model is sound enough with regard to Distribution Channels with
the help of the following checklist.
creative business:
Key Factor 3 - Decisions about Distribution Channels:
MAYBE,
BUT IT
NOT THE WOULD BE
CASE BETTER TO
1. The channels that you use are specific for different customers?
2. Are the channels able to deliver the Value Proposition to customers in
an effective way?
3. Are the channels you use able to reach the customers in the right time?
4. Do you reach enough places/do purchase situations reach your channels?
5. Does the distribution channel have a good influence on the cash cycle? Or
is there an important delay risk? Does the customer first pay intermediaries
and then intermediaries pay your company? Is solving problems possible?
6. Do you have enough control over distribution channels? Or do you have
any constraints from public authorities or owners of cultural resources?
7. Are we able to exploit the distribution opportunities of the territory
(routes, buildings, digital networks, physical environment, etc)
8. Is the channel choice efficient or expensive?
28
Are you satisfied with your Distribution Channels?
Management Tools Useful for Distribution Channel policies

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- In order to estimate the economic contributions
PRISES ICE to company income generated by distribution
3. Long Financial Cycle channels.
3.3 Business Plan
Computerized Innovation and Internationalization Capacity Audit Methodology To communicate openness development and
for SMEs (2INS Clusters) improvement strategies.
1.13 Communication channels are open, clear and safe for ideas, decisions and
knowledge, especially between R&D, top management and manufacturing.
Computerized Innovation and Internationalization Capacity Audit Methodology To communicate openness development and
for SMEs (2INS Clusters) improvement strategies.
1. Principal component-loading matrix for an internal technological environment.
1.15 Publications and scientific activities such as congresses, symposiums, etc.
related to technological issues are followed and participated in.
Computerized Innovation and Internationalization Capacity Audit Methodology To communicate openness and readiness towards
for SMEs (2INS Clusters) international markets.
3. Principal component loading matrix for technology acquisition and ex-
ploitation.
3.3 The company has the ability to commercialize the developments made
in products and process through suitable marketing methods.
Computerized Innovation and Internationalization Capacity Audit Methodology To develop internationalization and innovation
for SMEs (2INS Clusters) requirements.
7. Resources allocation capability
7.4 Full use of external technologies.
Computerized Innovation and Internationalization Capacity Audit Methodology To assess specific innovation trends.
7.5 Understanding competitors' core technology competence
Computerized Innovation and Internationalization Capacity Audit Methodology To assess needs and to develop specific innovation
for SMEs (2INS Clusters) requirements
7.6 Adapting self-technology levels according to changes in the external en-
vironment.
9.1 Relationship management with major customers.
9.2Knowledge of different market segments.
11. Strategy planning capability
11.4 Adaptability and responsiveness of the company to the external en-
vironment.
12. Barriers of internationalization
12.9 Inability to contact potential overseas customers.
29
13. Internationalization enhancers
13.4 Businesses are able to register with authorities through a simple and
inexpensive system, preferably by remote access through the Internet. Busi-
ness licensing requirements are minimized, and when they are enforced,
the objective is to safeguard the health and safety of consumers and labour
rather than being a source of revenue for local and/or central governments.
MODEL 2INS BUSINESS PLAN (2INS Clusters) To communicate openness and readiness to-
2. DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALI- wards international markets.
ZATION PLAN
Origin of the internationalization)
MODEL 2INS BUSINESS PLAN (2INS Clusters) To communicate openness and readiness to-
3. MARKET PERSPECTIVES wards international markets.
MODEL 2INS BUSINESS PLAN (2INS Clusters) To assess the current status and identify devel-
4. USE OF INNOVATION SUPPORT SERVICES opment and improvement strategies.
4.1 Acquisition of services provided by qualified subjects/professional
performances
4. USE OF INNOVATION SUPPORT SERVICES opment and improvement strategies.
4.2 Acquisition of training services
7. INVESTMENTS IN PRODUCTIVE CLUSTERS OR BY SMEs WITHIN opment and improvement strategies.
DISTRICTS
5.5 BUSINESS MODEL KEY FACTORS: CUSTOMER RELATIONSHIPS
The Customer Relationship factor describes the types of relationships a company establishes with specific
Customer Segments.
A company should clarify the type of relationship it wants to establish with each Customer Segment. Rela-
tionships can range from personal to automated.
The Customer Relationships called for a companys business model to deeply influence the overall customer
experience.
Customer relationships are made of communications that the company sends to the customers and also
conducted via means of communication that the customers can use to be in touch with the enterprise. It
is a two-way communication process.
C&C SMEs could use a large range of communication means: web, social media, fairs, events, printings,
30
phones, front line people, etc.
It is possible to assess if your business model is sound enough with regard to Customer Relationships via
the following check list.
creative business:
Key Factor 4 - Decisions about Customer Relationships:
MAYBE,
BUT IT
NOT THE WOULD BE
CASE BETTER TO
1. Your relationship media/methods are able to catch the attention of your customers?
2. Your relationship media/methods are able to guarantee the comprehension
of your value proposition?
3. Your relationship media/methods are able to stimulate the right actions in
your customers (purchase first of all)?
4. Your relationship methods guarantee solid support to the customer during
the service/product usage?
5. Your relationship methods guarantee good after sales support to the customer?
6. Your relationship methods guarantee a continuous and tailored dia-
logue with customers, during the customer life cycle?
Are you satisfied with your customer relationships?

Management Tools Useful to developing Customer Relationships

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Provide a general framework useful to define,
ENTERPRISES ICE plan and control a communication strategy.
4. Intangible capital
3. Principal component loading matrix for technology acquisition and exploitation.
3.3 The company has the ability to commercialize the developments made
in products and process through suitable marketing methods.
9.1 Relationship management with major customers
9.2Knowledge of different market segments
12.9 Inability to contact potential overseas customers
3. MARKET PERSPECTIVES opment and improvement strategies.
31
5.6 BUSINESS MODEL KEY FACTORS: KEY RESOURCES
Every business model requires Key Resources. These resources allow an enterprise to create and offer a
Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues.
Key resources can be physical, technological, financial, intellectual, or human. Key resources can be owned
or leased by the company or acquired/shared from key partners.
A cultural and/or creative enterprise focuses on human resources. Their knowledge and skills, but also their
motivation and engagement level, are crucial for success.
In the territory a lot of key resources, material and immaterial can be found: incubators could offer orienta-
tion, tools, locations, the financing system could make funds available, enterprises and the education sys-
tem could be a source of knowledge, and in the territory there are cultural or natural resources that could
be the focal point for the C&C SME.
It is possible to assess if your business model is sound enough with regard to Key Resources via the following
check list.
creative business:
Key Factor 5 - Decision about Key Resources:
MAYBE,
BUT IT
NOT THE WOULD BE
CASE BETTER TO
1. Do you have enough skilled people in order to deliver to your custom-
ers the required amount of product-services? Is it easy to acquire others
skilled resources if necessary?
2. Do you have enough specialized tools (sw, hw, machinery, etc) in order
to deliver to your customers the required amount of product-services? Is it
easy to acquire others tools if necessary? In particular, do you have tools
to track the customer experience?
3. Do you have the necessary access (possibility to manage) to cultural
resources that distinguish your offer?
4. Do you have enough funds in order to deliver to customers the required amount
of product-services? Is it easy to acquire funds or new associates if necessary?
5. Are we able to involve in the business model territory key resources?
(e.g. incubators, financing systems, cultural and natural resources, etc...)
Are you satisfied with your Key Resources?

32
Management Tools Useful to develop Key Resources

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Provide a general overview about a managerial
ENTERPRISES ICE approach to develop organizational factors.
5. Management approach
5.1 Management approach
5.2 Customer management and networking provider
5.3 Networking tools
1. Principal component loading matrix for an internal technological envi-
ronment.
1.14 Change is regarded as an opportunity rather than a threat. The organ-
ization has the structural and cultural capability to predict and adapt to
changes in the future.
1. Principal component loading matrix for an internal technological envi-
ronment.
1.16 The company encourages diversification in the skills of its employees.
10. Organising capability
10.1 Flexibility in adjusting the organization structure
10.2 Autonomy of sub-units
10.3 Ability to handle multiple innovation projects in parallel
10.4 Coordination and cooperation of R&D, marketing and manufactur-
ing.
10.5 Communication between suppliers, company and major customers
10.6 High-level integration and control of the major functions with the company
10.7 Mechanisms to track the progress of innovation projects
33
12.3 Quality of enterprise's products and/or services; Specifications of the
enterprise's products and/or services; Price of the enterprise's products
and/or services.
1.14 Change is regarded as an opportunity rather than a threat. The organ-
ization has the structural and cultural capability to predict and adapt to
changes in the future.
CREATER PILOT PROJECT OUTPUTS (Creative Growth) CREATER was launched in collaboration with other
Planning the support path "CREATER" regional initiatives in order to optimise resources
for the sake of CCI start-ups.
5.7 BUSINESS MODEL KEY FACTORS: KEY ACTIVITIES
!
The Key Activities factor encompasses the most important things a company must do to make its business
model work
Every business model calls for a number of Key Activities. These are the most important actions a company
must take to operate successfully.
As Key Resources, they are required to create and offer a Value Proposition, reach markets, maintain Cus-
tomer Relationships, and earn revenue.
For C&C SMEs key activities could, first of all, be those related to innovation, or project management, or
networking management, etc...
A set of key activities have to be added to the business model in order to track, understand and develop
positive relations with individuals located or visiting the territory.
It is possible to assess if your business model is sound enough with regard to Key Activities via the following checklist.
34
creative business:
Key Factor 6 - Decision about Key Activities:
MAYBE,
BUT IT
NOT IN WOULD BE
THIS CASE BETTER TO
1. Do you dedicate enough time to the creative process? (How many new
ideas, projects do you introduce successfully every year?)
2. Are the project management activities satisfying? Are you able to manage
the number of projects necessary to satisfy customers and make the business
profitable?
3. Are you satisfied by the networking activities required in order to develop
or stabilize your business?
4. What is the first requirement that your customer ask to your enterprise (e.g.
communication, accessibility, speed, cheapness, 360 solutions, etc...)? Do you
dedicate enough time to developing\stabilizing the performances related to
the first requirement of your customers?
5. Are the activities related to customer relations satisfying? In particular, are we
able to track, understand and develop the customer experiences from different
points of view? (e.g. sociological, psychological, anthropological point of view)
6. People are the success keys for a cultural and creative SME. Are you
satisfied with your people management and employee satisfaction?
Are you satisfied with your Key Activities?

Is this a strong point in your business model?
Management Tools Useful for developing Key Activities

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Allows us to define every single activity needed in
ENTERPRISES ICE order to reach the objectives.
2- Uniqueness of the project
2.3.1. Project Management
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Provides a general overview about a managerial ap-
ENTERPRISES ICE proach to develop the key activity in the organization.
5.1 Management approach
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Provides a general overview about a managerial
ENTERPRISES ICE approach in developing the key activity in the or-
5. Management approach ganization.
5.2 Customer management and networking provider
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Provides a general overview about the managerial
ENTERPRISES ICE approach to develop the key activity in the organ-
5. Management approach ization.
5.3 Networking tools
MODEL 2INS BUSINESS PLAN (2INS Clusters) To develop and improve innovation strategies.
2. DESCRIPTION OF THE INNOVATION AND/OR
INTERNATIONALIZATION PLAN
2.1 Detailed description of the innovation plan (Description of the innova-
tion project/Objectives of the innovation project/Origin of the innovation)
35
MODEL 2INS BUSINESS PLAN (2INS Clusters) To develop and improve innovation strategies; to
1. MARKET PERSPECTIVES identify new markets.
3.2 Demand and competitors analysis
CREATER PILOT PROJECT OUTPUTS (Creative Growth) The programme was developed after key preliminary
Implementation of the support path "CREATER" actions to prepare the ground (research on CCI start-
up needs, and on similar actions in other regions and
in the development of a local partnership), launch of
a call for applications, programme implementation
and collection of outputs and analysis.
CREATER PILOT PROJECT OUTPUTS (Creative Growth) A key aspect was the promotion of selected start-
Monitoring and Promoting the support path "CREATER ups and gathering feedbacks with the aim of devel-
oping similar actions with other funded sources. A
similar programme has, for instance, been imple-
mented in the audiovisual sector.
5.8 BUSINESS MODEL KEY FACTORS: KEY PARTNERS
The Key Partnerships factor comprises the network of suppliers and partners that make the business model work.
!
Companies forge partnerships for many reasons, and partnerships are becoming a cornerstone of many busi-
ness models. Companies create alliances to optimize their business models, reduce risks, or acquire resources.
We can distinguish between four different types of partnerships:

Strategic alliances between non-competitors
Competition: strategic partnerships between competitors
Joint ventures to develop new businesses
Buyer-supplier relationships to assure reliable supplies
Cultural and creative business models usually have a large series of opportunities to enlarge their offer to other
customers/markets. Especially for SMEs, in order to access these opportunities, it is necessary to have partners.
Key partnerships allow one to develop the business without growing the enterprise dimensions or without an
increase in investments. Key partnerships also allow one to develop the business while maintaining flexibility.
Partnerships could very well be the most important way to develop relationships with the territory. As pre-
sented previously in this document, there are many subjects in the territory that could have a relationship
with the C&C SME. Subjects include: institutions, the education system, the cultural resource management
system, others enterprises, incubators, financing system, infrastructures system.
The number and the effectiveness of these relations are strictly linked with the success chances of a C&C SME.
It is possible to assess if your business model is sound enough about Key Partners via the following check list.
36
creative business:
Key Factor 7 - Decision about Key Partners:
MAYBE,
BUT IT
NOT IN WOULD BE
THIS CASE BETTER TO
1. Do you have all the necessary partnerships in order to fill enterprise gaps
about key factors of the business model?
2. Is it easy to replace a partner if you need to?
3. Do you have the key factors that your partners need in order to fill their
business model gaps?
4. Do the partners need you to reach their objectives? (or can they reach
the final customers without your contribution?)
5. Are we able to establish a large number of effective and solid relations with
subjects located in the territory? (e.g. institutions, the education system,
cultural resources management system, other enterprises, incubators, the
finance system, infrastructure system, etc...)
Are you satisfied with your Key Partners?

Management Tools Useful for developing Key Partnerships

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL ENTER- It shows the network system for a SME.
PRISES ICE
1- Cultural Background
1.3 Strategy formulation
Computerized Innovation and Internationalization Capacity Audit Methodology To develop relations with the territory.
7.6 Adapting self-technology level according to changes in the external
environment
Computerized Innovation and Internationalization Capacity Audit Methodology To develop relations with the territory.
12.7 Identifying foreign business opportunities/Obtaining reliable foreign
representation/Developing new products for foreign markets
MODEL 2INS BUSINESS PLAN (2INS Clusters) To develop relations with the territory.
2. DESCRIPTION OF THE INNOVATION AND/OR INTERNATIONALIZATION
PLAN
Origins of the internationalization)
4. USE OF INNOVATION SUPPORT SERVICES
4.1 Acquisition of services provided by qualified subjects/professional
performances
4. USE OF INNOVATION SUPPORT SERVICES
4.2 Acquisition of training services
37
6. INVESTMENTS IN PRODUCTIVE CLUSTERS OR BY SMEs WITHIN
DISTRICTS
CREATER PILOT PROJECT OUTPUTS (Creative Growth) CREATER was developed after a partnership with
Planning the support path "CREATER" the Municipality of Bologna and with the backing
of the Region Emilia-Romagna together with the
development of non formal partnerships with key
CCI actors such as Cineteca di Bologna, Romag-
na Creative District and with other institutions,
like the Province of Bologna.
5.9 BUSINESS MODEL: COSTS AND REVENUES
A sound Business Model has to be sustainable. If the 7 key factors exist and are well mixed, the enterprise
has satisfied the pre-requisites to stay in the market in a successfully way.
The decisions about the 7 Business Model Key factors, will generate the fundamental structure of revenues
and costs. At this stage (not before) it is correct to evaluate if there is a good profitability perspective.
Management Tools Useful to estimate Costs and Revenues

TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL To understand how to make efficient the
ENTERPRISES ICE product/customer/markets portfolio
2 - Uniqueness of the project
2.3.2 portfolio management
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Provide tools to calculate the optimum buying
ENTERPRISES ICE decision
2 - Uniqueness of the project
2.3.3. Buying policies
TOOLKIT A PRACTICAL GUIDE FOR SUPPORTING CULTURAL Show business plan logic, schemes and
ENTERPRISES ICE formats.
3. Long Financial cycle
3.3 Business plan
MODEL 2INS BUSINESS PLAN (2INS Clusters) To evaluate financial perspectives.
7. SEAT
7.2 Economic-financial forecast
8 INVESTIMENT PLAN
8.1 Detailed investments
7. SEAT
7.2 Economic-financial forecast
CREATER PILOT PROJECT OUTPUTS (Creative Growth) Provides an example of a support programme
Planning the support path "CREATER" that was developed with a very limited budget.
38
CHAPTER 6
FROM BUSINESS MODEL TO BUSINESS PLAN
Link to the collection of selected management tools

TOOLKIT
A PRACTICAL GUIDE FOR SUPPORTING
http://www.ice-med.eu/images/stories/results/livro2.pdf
CULTURAL ENTERPRISES
ICE
MODEL 2INS BUSINESS PLAN http://www.2insclusters.net/attachments/article/18/2INS%203%20
2INS Clusters 4%20c%20SB%20business%20plan.pdf
CREATER PILOT PROJECT OUTPUTS

http://www.creative-growth.eu/Publications/tabid/1289/Default.aspx
Creative Growth
39
CHAPTER 7
CAPITALIZATION RESULTS
7.1 FORMER OUTPUTS CAPITALIZATION

The project objective was to capitalize on the outputs produced by the former projects and to define new
ideas for a new model of cultural incubator.
The 4 outputs to be capitalized upon were quite different in terms of them having:
different support (digital tools, paper guides),
different style,
different focus (strategy, planning, day-to-day management, experimentation)
BUSINESS''
MODEL'
RELATION'BOX'
MODEL'
(territory(and(individuals)(
Number'of''
interac/ons'
)'
To#be#
cen
rie
'Ex E'
er U
pe
m VAL
As#is#
to
DURATION'
us
(C
RELATED'
BUSINESS'TOOLS'
exis%ng(outputs(by(
former(projects(
'
!
CLUSTERS''
INTEGRATE(SYNERGIC(BUSINESS(MODELS(
(
BUSINESS'TOOLS'
AGGREGATION'AND'RELATION'
GOVERNANCE'
In each output it was possible to find synergistic elements and the possibility of mixing them in order to
obtain something that could be defined as more than a simple sum of its parts.
40
This Business Model is a capitalized product because:
STARTING POINT CAPITALIZATION RESULT

Different outputs from different A single integrated system
projects
Separated strategic factors, planning A rational path from strategy to implementation, with a clear thread and evident links
approach, day by day management among the outputs.
tools, pilot project.
Each output gives a specific guideline A single sequence, an ordered structure that represents a complete guide.
to the cultural entrepreneur.
First drawing up of specialized In-depth treatment of the contents.
contents
Adding of new customized elements for the cultural and creative business.
Enrichment of the methodological contribution via the use of the 9 factors

classification of Osterwalders Business Model Canvas as a general framework. Each
factor was filled with the contents of former project outputs integrated with new
customized elements.
Adding a new methodological contribution for the cultural and creative SMEs, about
the fundamental importance of creating effective relationships with territory and
individuals.
Single enterprise use (essentially) Not only for a single SME use
Suitable for collaborative use
7.2 INCUBATORS CAPITALIZATION LINES

The capitalization results listed above represent an important improvement opportunity for cultural incubators.
The proposed business model for cultural and creative SMEs is not only a tool, it is also able to favour the
evolution of cultural incubators model.
The cultural incubators now no longer have four separated tools, but a single structure to be used to:
stimulate the business idea generation process, in a new effective way,
evaluate how sound a cultural\creative entrepreneurs approach to the business is,
support creative and cultural SMEs via synergistic tools, from ideas to day-to-day management,
improve and direct the creative and cultural business towards two key concepts:
- t o build sound and value-added relations with the territory and individuals in the territory,
- t o aggregate single competences and enterprise value with other cultural and creative SMEs.
These last two points seems to represent a new way for cultural and creative incubators.
The experiences made during this project showed us that a new model of incubators is desirable, with
which we can define an Open Incubator that is able to aggregate:
ideas,
resources,
people
enterprises
This aggregation work will be effective if it creates new enterprise clusters.
41
Much evidence has emerged during the 3C 4 Incubators project to support this concept:
a cultural and creative SME has a single idea that could be very effective but often this idea is also
very specialized and with a limited range of application,
in addition to this, it is not rare to see a high level of individualism in cultural entrepreneurs (more
so than in others businesses),
the success could be easily reached by the proposal of integrated solutions, and the incubators
have to support this process,
The cultural incubator has to motivate the enterprises to enhance a joined approach to the busi-
ness, to go beyond the isolation and consequently undersize their ideas
The Open Incubator may be such not only in terms of tools. It helps to integrate ideas and part-
nerships, it could propose a model to develop relations with a territory and individuals.
The Open Incubator may be such, also in terms of relation activities. During 3C 4 Incubators
project we tested a social modality for the SMEs: the Factory Event. The event aimed to create
new common ideas among enterprises, supported by the business model methodology. This mo-
dality is a starting point, a modality that has to be merged with others (see next paragraph about
future proposals),
During the experimentations (including local events organized after the Factory Event) it was evi-
dent that the Open Incubator, by the business model methodology integrated with the methodol-
ogy about relationships, can be used to build up enterprise clusters.
The aggregation function by the Open Incubator has to produce working clusters.
7.3 FUTURE PROPOSALS

The future objective could be to develop an Open Incubator able to create working clusters of cultural and
creative SMEs.
In order to make a cluster work, 3 key dimensions have to be present in the incubator:
1. Business and managerial tools
2. Aggregation method and Relation tools
3. Governance competences
42
BUSINESS AND MANAGERIAL TOOLS
(e.g. business model, business plan)
aim to
support the creation of sound enterprise ideas and projects
AGGREGATION METHOD AND RELATION TOOLS

(e.g. factory events and games based on the business model
and relation box methodology, networking tools)
aim to
join SMEs in clusters
GOVERNANCE COMPETENCES
(e.g. common strategy, common marketing and communication, common sustainable way
to run the cluster. We cannot assume that cultural and creative SMEs, although aggregated
in a cluster, would be capable of managing the cluster by themselves)
aim to
conduct the cluster towards the value creation for SMEs, the territory and its individuals
At the end of the 3C 4 Incubators project, and while also looking forward, we can summarize the current
status as follow:
KEY DIMENSION AS IS TO BE
BUSINESS AND Available More accessible (delivery to SMEs and
MANAGERIAL TOOLS Focused incubators) via digital means
Integrated
More focused on specific cultural and creative
businesses (e.g. audiovisual, cultural heritage, etc...)
AGGREGATION METHOD Ideas Factory Event tested Enhanced
AND RELATION TOOLS
Emerging new ideas about business model Create method to
gamification Motivate
Aggregate
Results from the networking model Working group Focus common way in a cluster
Maintain the necessary level of communication
Release 1 of the Relation box model among cluster members
GOVERNANCE n.a. Defined

COMPETENCES Implemented
43
BUSINESS''
MODEL'
RELATION'BOX'
MODEL'
(territory(and(individuals)(
Number'of''
interac/ons'
)'
To#be#
cen
rie
'Ex E'
er U
pe
m VAL
As#is#
to
DURATION'
us
(C
RELATED'
BUSINESS'TOOLS'
exis%ng(outputs(by(
former(projects(
'
!
CLUSTERS''
INTEGRATE(SYNERGIC(BUSINESS(MODELS(
(
BUSINESS'TOOLS'
AGGREGATION'AND'RELATION'
GOVERNANCE'
44
www.3c4incubators.eu

3C 4 Incubators Business Model

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

3C 4 Incubators Business Model

Uploaded by

Copyright:

Available Formats

3C 4 INCUBATORS

Published by: 3C 4 INCUBATORS

Coordinated by: Lazio Region

Co-financed by: MED Programme - European Regional Development Fund

This document is designed to be

2.1 COMPUTERIZED INNOVATION AND INTERNATIONALIZATION

WHAT IS THE OUTPUT

MAIN GOAL OF THE OUTPUT

The questionnaire should be answered by the general management of the enterprise.

MAIN GOAL OF THE OUTPUT

MANAGEMENT TOOLS INNOVATION

Business and Communication Strategy

2.3 CREATER PILOT PROJECT OUTPUTS (CREATIVE GROWTH)

MAIN GOAL OF THE OUTPUT

2.4 MODEL 2INS BUSINESS PLAN 2INS CLUSTERS

3.1. CULTURAL SMES AND TERRITORY

3.3 THE RELATION MANAGEMENT

The drivers of this relation are:

4.1 CULTURAL INCUBATORS BUSINESS MODEL, CULTURAL

This system could be based on:

In all these cases an incubator needs to:

workshops Productt analysis

A summary of this approach could be:

5.1 A BUSINESS MODEL FOR CULTURAL AND CREATIVE SMES

EMPLOYEE SOLUTIONS FOR

An interesting approach to this is made by the Business Model Canvas.

It assists firms in aligning their activities by illustrating potential trade-offs.

Alexander Osterwalder Business Model Canvas

5.2 BUSINESS MODEL KEY FACTORS: CUSTOMERS

Are you satisfied with your Customer Segments?

5.3 BUSINESS MODEL KEY FACTORS: VALUE PROPOSITION

It solves a customer problem or satisfies a customer need.

Are you satisfied with your Value Proposition?

Management Tools useful for defining a Value Proposition

Management Tools Useful for Distribution Channel policies

5.5 BUSINESS MODEL KEY FACTORS: CUSTOMER RELATIONSHIPS

Are you satisfied with your customer relationships?

Management Tools Useful to developing Customer Relationships

Are you satisfied with your Key Resources?

Management Tools Useful to develop Key Resources

5.7 BUSINESS MODEL KEY FACTORS: KEY ACTIVITIES

Are you satisfied with your Key Activities?

Management Tools Useful for developing Key Activities

5.8 BUSINESS MODEL KEY FACTORS: KEY PARTNERS

We can distinguish between four different types of partnerships:

Are you satisfied with your Key Partners?

Management Tools Useful for developing Key Partnerships

5.9 BUSINESS MODEL: COSTS AND REVENUES

Management Tools Useful to estimate Costs and Revenues

Link to the collection of selected management tools

CREATER PILOT PROJECT OUTPUTS

7.1 FORMER OUTPUTS CAPITALIZATION

STARTING POINT CAPITALIZATION RESULT

Enrichment of the methodological contribution via the use of the 9 factors

7.2 INCUBATORS CAPITALIZATION LINES

This aggregation work will be effective if it creates new enterprise clusters.

7.3 FUTURE PROPOSALS

AGGREGATION METHOD AND RELATION TOOLS

GOVERNANCE n.a. Defined

You might also like

2.1 COMPUTERIZED INNOVATION AND INTERNATIONALIZATION

4.1 CULTURAL INCUBATORS BUSINESS MODEL, CULTURAL