N proctor museum as startup feb 2016
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Presentation on "Museum as Startup" at VALA in Melbourne, LIANZA in Omaru, National Library and Te Papa in Wellington, and Auckland Museum, Feb 2016.
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N proctor museum as startup feb 2016
- 1. THE MUSEUM AS STARTUP @NancyProctor nproctor@artbma.org A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. – Eric Ries, The Lean Startup Or, Avoiding the Zombie Apocalypse
- 2. THE BALTIMORE MUSEUM OF ART
- 4. MATISSE
- 5. 65,000 PRINTS, DRAWINGS AND PHOTOGRAPHS
- 6. EUROPEAN
- 7. AMERICAN FINE AND DECORATIVE ARTS
- 8. CONTEMPORARY
- 9. TEXTILES
- 10. AFRICAN ART
- 11. ASIAN ART
- 19. THE BROAD ART MUSEUM, LOS ANGELES
- 20. THE MUSEUM OF OLD AND NEW ART (MONA)
- 21. RED INK BUSINESSES 1. Core assets can’t be sold 2. Mission mandates access for all 3. ‘Forever business’
- 25. Subject Consumer Citizen Dependent Independent Interdependent To For With Religious Material Spiritual Duty Rights Purpose Obey Demand Participate Receive Choose Create Command Serve Facilitate Radio Television Internet Bureaucracy Hierarchy Platform Subjective Objective Deliberative CULTURE SHIFT
- 26. NEW INC. AT THE NEW MUSEUM
- 27. ACMI X
- 28. “There’s not a single business model… There are really a lot of opportunities and a lot of options and we just have to discover all of them.” – Tim O’Reilly “Businesses are historicising engines.” – Simon Denney
- 29. • Multiple models can co-exist • Free and Freemium • Multiplatform • Open • Long Tail BUSINESS MODEL PATTERNS
- 30. FREE
- 35. FREEMIUM
- 40. MULTIPLATFORM
- 42. OPEN
- 43. Closed Open The smart people in our field work for us. We need to work with smart people both inside and outside our organization. To profit from R&D, we must discover it, develop it, and ship it ourselves. External R&D can generate significant value; internal R&D is needed to claim some portion of that value. If we conduct most of the best research in the field, we will win. We don’t have to originate the research to benefit from it. If we create the most or the best ideas in the field, we will win. If we make the best use of external ideas, we will win. We should control our innovation process, so that competitors don’t profit from our ideas. We should profit from others’ use of our innovations, and we should buy others’ intellectual property (IP) whenever it advances our own interests. CULTURE SHIFT
- 46. LONG TAIL
- 48. Go to this report Mar 25, 2014 -Apr 27, 2014Audience Overview Language Sessions % Sessions 1. en-us 1,529 92.39% 2. en-gb 32 1.93% 3. it-it 12 0.73% Overview Sessions Mar 29 Apr 5 Apr 12 Apr 19 100100 200200 Sessions 1,655 Users 1,061 Pageviews 4,592 Pages / Session 2.77 Avg. Session Duration 00:02:57 Bounce Rate 52.69% % New Sessions 63.99% New Visitor Returning Visitor 36% 64% All Sessions 100.00% Press Preview Thu Mar 27 Presentation of #RenoirReturns at MW2014 Seurat: Most seen “evidence” to date Official Blog Launch Sun Mar 30 Tale 2 by Justin Sirois started Traffic peak follows posting of new content BLOG.ARTBMA.ORG
- 51. “So many businesses fail… simply because they have failed to correctly define themselves.” – John Hendricks
- 54. METRIC
- 57. THE ECONOMICS OF CURATION
- 58. • Content business • Use of collections is a key metric (KPI) • Multiple business model types • Multiplatform: connect interests of audiences • Open: create value with outside partners • Long tail: cater to the niches THE MUSEUM AS LEAN STARTUP
- 59. BLUE OCEAN
- 61. CONTACT ME! • @NancyProctor • nproctor@artbma.org • http://www.museumsandtheweb.com/member/na ncyproctor/
Notes de l'éditeur
- Definition of startup Not an expert on lean but I do have a number of failed startups under my belt… Not here to give out business advice, but rather start a conversation about how some ideas that have emerged in the business world since the introduction of the Internet might help museums and other non-profits meet the challenges they face in terms of sustainability and knowing where to invest their always-meagre resources
- Doesn’t look like most people’s idea of a startup These kids announcing our new business model in 2006 100 years old, but founded on an entrepreneurial leap of faith Per Eric Ries’s definition, we certainly face uncertain times… And new audiences who increasingly expect new experiences and services from us
- Here’s what those young people get for their free price of admission: The Cone Collection…
- Largest public collection of works by Henri Matisse in the world Includes not just paintings and sculptures but preparatory sketches and related archival materials
- More than 60,000, 2/3 of the collection
- Works by European masters, including Rembrandt and Van Eyke And a surprising number of “old Mistresses”, such as Elizabeth Vigée LeBrun and Angelica Kaufman
- From 18th century to the present day Presented in one of the best hangs I’ve ever seen in a museum, if I do say so myself!
- Drawing from the incredibly creative local art community in Baltimore As well as representing some of the leading international artists of the 21st century
- 2000 years of textiles from the famous Baltimore Album Quilts to Japanese Kimonos
- one of the earliest and most important collections of African art in the United States
- Including this incredible 15th c Water‑Moon Guanyin Water‑Moon Guanyin. Wan Bing county, Hebei province, China. 15th century.
- Incredible architecture, including the spring house designed by acclaimed architect Benjamin Henry Latrobe in 1812 And moved to the site of the museum by its first architect, John Russell Pope. The BMA was Pope’s first museum – and we like to think his best. He went on to design the National Gallery in Washington DC
- And 4 acres of gardens, including two sculpture gardens
- But the BMA extends far beyond its walls and grounds. BMA outposts…
- Not to mention extensive programs with a particular strength in serving families and schools in the area
- So this gives you a taste of the embarrassement of riches with which I was blessed when I joined the BMA in March of 2014. This (blank slide) is pretty much what the museum had in IT infrastructure.. Beyza held it all together Doreen raised money Hired CTO And Suse Relaunched website with help from Jessica And the entire marketing & communications team, who arrived in a cardboard box and merged with us to form the new division I now head up, Digital Experience and Communications
- I am also co-chair of MW MWA2015 in Melbourne in Oct MW2016 April 6-9 in LA Been putting together 20/20 book There is nothing new under the sun: how we’ll fund and sustain all the cool new things we want to do with technology a constant theme
- Despite the proliferation of museums today – China is building a new one every day at the moment – there is a paucity of business models. Most have an extremely short list of places they get money from, dominated by one or two big funders, Either governments… Image: http://www.economist.com/news/special-report/21591710-china-building-thousands-new-museums-how-will-it-fill-them-mad-about-museums
- Or private philanthropists Image: Broad Art Museum
- Inching towards breaking even, but has been subsidized throughout its first 5 years by David Walsh Image: https://en.wikipedia.org/wiki/Museum_of_Old_and_New_Art jeffowenphotos - Tasmania, The Mona, museum of old & new art CC BY 2.0 File:Sidney Nolan Snake.jpg Created: 4 February 2011
- Is it that there really aren’t any other business models for museums than finding deep pockets? Max Anderson argued museums are red ink businesses Certainly faced with challenges that would daunt the bravest of entrepreneurs: Image: https://commons.wikimedia.org/wiki/File:Red_ink.jpg public domain
- So if museums will always be in the red, you can see why major philanthropists like Bill Gates strike terror in our hearts by saying that donors should really invest in the more important causes, like curing poverty and hunger Rob Stein’s essay in Code|Words, co-edited by Ed Rodley and Suse Cairns Unprecedented opportunity to use technology to measure and demonstrate museum’s impact Image: https://medium.com/code-words-technology-and-theory-in-the-museum/museums-so-what-7b4594e72283#.udasw6cr1 Bill Gates, philanthropist and technology pioneer. Photo Credit: Steve Jurvetson https://www.flickr.com/photos/jurvetson/4368494308
- This mission to demonstrate museums’ importance and impact on communities is aligned with what the UK’s New Citizenship project has called the “citizen shift”. Jon Alexander and Irenie Ekkeshis, based in London
- From Subject to Consumer to Citizen Image: Jon Alexander, New Citizenship Project
- All that said, there is a new model being trialed in museums that emerged in NYC in 2014 New Inc. is museum world’s first incubator Co-working space Programming by museum as well as outside experts including Rhizome Image: http://www.newinc.org/program/
- Now at ACMI, ACMI X Coming soon: Te Papa Image: https://www.acmi.net.au/media/announcing-acmi-x/
- Need to try lots of new approaches Our business models are an expression of our times; a new age needs new models
- Open model: Citizen science, citizen storytelling, key partnerships Long tail: niche audiences, can we afford to experiment with online audiences in particular? The platform is a key resource in both multi-platform and freemium business model patterns: reduce costs by channeling transactions through the platform. Also where costs need to be best controlled to optimize the business. Why over-investing in the building can make break the museum’s business model – but so can under-investing, e.g. in online space.
- One group subsidizes the experience so the other group can have it for free
- Problem is that org’s efforts can easily become focused on those who pay, super-serving the donors to the detriment of the “free” audience and the museum’s mission
- Problem is that org’s efforts can easily become focused on those who pay, super-serving the donors to the detriment of the “free” audience and the museum’s mission
- Membership is a sort of “freemium” model But built on the assumption that people who are attracted to the free product will have the means as well as the inclination to “upgrade” to a paid product Also assumes that the paid product is broadly attractive to the free audience Nonetheless, expect less than 10% of total audience to upgrade
- Hope with Freemium is that there is a logical upgrade path
- This assumption needs to be checked…
- Both Free and Freemium are forms of Multiplatform models Interests of all parties in a multiplatform model should be intertwined and mutually-dependent
- Gaming is a great example…
- Also certain kinds of crowd- or community-sourcing projects, like Wikipedia and Museums Victoria transcription project Hear more from Nicole Kearney and Ely Wallis, Museums Victoria Image: Museum Victoria
- BMA Commons, supporting “Imagining Home” Marian April Glebes’ “Sheds” in collaboration with the Loading Dock, a local non-profit that increases the supply and use of affordable building materials for housing and community improvement by redirecting landfill bound, reusable materials into productive use. BMA invites proposals from community groups to create exhbiitions and programming in the museum’s space around Home theme
- Adapted from Chesbrough 2003 and Wikipedia 2009, BMC p. 111 Companies like GlaxoSmithKline have recognized that IP related to drugs outside of the blockbusters often lies idle. Created patent pools to attract external R&D, helps prevent advances from being blocked by a single rights holder. The New Museum’s New Inc. project would be an example of and Open business model pattern if the companies it hosts were to collaborate in generating shared IP alongside museum staff. BMA’s Open Hours program is another of the outside-in dynamics of the open model. Not the same as outsourcing café, shop, etc. where no internal IP is generated.
- Collaboration extended into recent “Art After Hours” programming Glebes partnered with Architect Fred Scharmen Pillow fort invited everyone to help build a temporary “home” in the museum Co-creating led to unexpectedly intimate spaces in an otherwise very public event for new ways of enjoying the artists’ concepts and the museum
- SFMOMA and the Met among others have similarly collaborated with outside makers to create new experiences and reach perhaps new audiences SFMOMA with 826 Valencia student writing project Met commissioned podcaster “The Memory Palace” to create an audio experience for theArtistic Furniture of the Gilded Age, exhibition open now through May 2016.
- Both Open and Long tail Chris Anderson coined the term in 2004 to describe the changing shape of the media market The “mass” market, the head, is only half the market In a digital economy, costs of warehousing and delivery of product approach zero making serving the niche not only affordable but profitable Niches are extremely powerful, and museums are very good at them…
- Arrived at BMA just before the Renoir Returns exhibition opened No marketing let alone IT budget Stood up blog; needed visibility and traffic Dir of Marketing & Comms recruited David Simon, writer of the Wire, and Justin Sirois, rockstar young writer from Baltimore, to start a continuing story project using the works in the exhibition The Tales of the Purloined Painting Story Challenge Tale 1: “She Poses for Moses, Erroneously (with apologies to Mr. Kelly and Mr. O’Conner)” started by David Simon Tale 2: “Contours of a thief.” started by Justin Sirois
- Traffic analysis turned up an important but not unexpected pattern: Content precedes a peak in visitation Plus passionate niche audience of amateur writers…
- Lean startup advises, when designing your business model, find an “unfair advantage” you have and exploit it mercilessly Collections are museums’ unfair advantages: Core asset of the business and “USP” Image: La Brea Tar Pits collection storage, photo by Nancy Proctor
- Define Collections = objects + content (IP) What does this mean in terms of business priorities? Care for the collections is paramount Collections research and content creation are priorities So duh, right? Collections are museums’ core asset, and the research and content we create around them are of critical value. Am I not just underscoring what curators, educators and interpreters have been saying for generations?
- Most often this failure stems from companies mistakenly identifying their core business with a currently popular delivery or distribution technology. E.g. “railroad” businesses, instead of transportation industry. Detroit no redefining itself not as the center of the automobile industry, but of the mobility business. “In 1975, America’s Big Three networks considered tehmselves to be in the “broadcasting” business. In fact, they were in the ‘television entertainment’ business.” missed the opportunity to pivot and take advantage of cable, and now, the Internet.
- Putting our core assets and activities into framework of a business model gives us two strategic advantages in our ability to talk to funders and others about the importance of our work, and in developing the sustainability of our efforts: First, it is critically important to understand what kind of business we are in. Image: https://upload.wikimedia.org/wikipedia/commons/thumb/1/16/Train_wreck_at_Montparnasse_1895_2.jpg/711px-Train_wreck_at_Montparnasse_1895_2.jpg
- These are what Eric Ries calls “perfectly executed failures”. Business seems to be booming, we’ve cornered the market, why fix what ain’t broken? This is the well-worn path to the zombie apocalypse: businesses like projects can all too easily fall into the trap of becoming the “living dead” if they don’t iterate and develop, seeminly successful by the terms of vanity metrics but in fact unable to achieve their full potential. Image: https://pixabay.com/en/apocalypse-zombie-death-undead-371947/
- Secondly, if collections are our unfair advantages, use of the collection is a key metric, a KPI A ratio that levels the playing field Vanity metrics: # of collection objects & visitors Image: https://upload.wikimedia.org/wikipedia/en/3/3d/Tight_lacing.jpg
- If use of the collections is a KPI, then the museum also invests in experiences that help it gather data on audience engagement with the collections, like the Pen so we have the metrics to demonstrate our value as Rob Stein has exhorted us to. Image: http://mw2015.museumsandtheweb.com/paper/strategies-against-architecture-interactive-media-and-transformative-technology-at-cooper-hewitt/
- Doesn’t mean that we will value those objects that get used more over those that don’t because – remember – we are selling more of less, using longtail economic theory to create value from thousands of niche markets in the aggregate. Image: https://www.flickr.com/photos/calsidyrose/4251915605
- From an economy of scarcity/exclusivity to one of curation Curation adds unique value to content Personalization: curating for an audience of one: cp immersive theater Again, plays to unique strengths and resources of museums: human expertise
- Many business models, and many more to be invented Blue Ocean approach encourages us to see completely new and untested waters, with no competition but also no maps or guides Ask: What do we take for granted that could be eliminated? Reduced? Increased? What can we create that has never been offered? Which non-audience groups and untapped markets can be explored? Example, Stanford eliminating tuition Libraries, no longer counting their value in use of books alone Image: https://upload.wikimedia.org/wikipedia/commons/d/d2/Yacht_with_red_spinnaker_at_full_sail_on_blue_ocean_with_clouds.jpg
- What else might museums and libraries do that we’ve never dared imagine? Frankly, I have no idea. But I have faith that someone will figure it out, and you may even be sitting in this audience. Let me hear from you! Thank you! Image: http://www.bestsayingsquotes.com/quote/sometimes-your-only-transportation-is-a-leap-of-faith-772.html