12 01 2017 managing value

SD5162 – MANAGING VALUE CREATION SALON FILMS

LAM Hiu Young Kevin 17028847G Yingting Chen 17085376 HUANG SHUHAN TianTian 17097806G Meher Luthra 17097302g

Abstract During the last decade the technology advancement brought a lot of changes to our life and how we react to the world. Video content are now ever in demand due to online sharing platforms & social media, this changed the norm of production industry as well as the traditional

broadcasting

platforms

(Advertising,

TV

The

&

Film).

high

demand for mid quality contents that react quickly to the consumers life, with diminishing the needs for high quality productions. Another major factor will be the liberation of the technology that allows the general public to access these professional grade equipments. Although without the relevant skill sets is still lacking from the public, but the rise of the new knowledge based economy will eventually catch up and enable the public to indulge in their own world of creativity.

Abstract

We target to review the industry in micro

A new platform will be created via

& macro levels in order to draw a complete

affiliate company - Salon Media Lab

image of the current landscape. With the

(SML) as a bridge to connect the current

different value management tools to be

business to the new context. The SML

applied for identifying new opportunities

knowledge platform shall not be limited

that brings new values to range of

by the physical space but integrated

stakeholders within the current ecosystem.

with the virtual world. All these aspects

During the analysis, we were able to

together with mutual benefits & values

identify problem from the current value

exchange for all related parties would

flow

from

allow Salon Films to have a more

Salon Films is one of the top HK based

different

new

sustainable business model, adaptive

production house that was the first to

ecosystem that Salon Film is currently

to future change & the possibility to

take its game up to the international

breaking out from. Understanding that

revive HK production industry in a new

stage. They are currently facing the ever

the video production industries were an

innovative way.

challenging context as described with the

integration of Creativity, Technology &

rest of the industry.

People, instead of video as the end result

map

by itself.

Managing Value Creation | 3

and parties

missing

linkage

complete

the

• SWOT

Rivalrous / Excusable Matrix

• Case Studies

Stakeholder Map

• Interviews

Valueflow Map

Industry Workflow & Ecosystem

Value flow Analysis

• Product & Service segmentation

Economic Paradigms

• Advertisement - TV & Online

Current Value Framework

• TV Content

Key Findings

Contents

• Movie

Micro

03.

Introduction of Salon Flim & Current situation

Narrative Inquiry

Ideate and Prototype

• Interview

Ideation & development

• Site Visit

New Value Framework

Salon Film Workflow & Eco system

Value Proposition canvas

01.

Context

Final Solution

Research Plan Macro

02.

• Industry Overview

Empathise and Analyse

• Industry Trends

References

New Collaborative Ecosystem

Appendix

Managing Value Creation | 4

Conclusion & Evaluation

Introduction

WHAT IS SALON FILM? Established since 1959, Salon Films is a

professional

filmmaking

servicing

company and a creative video agency.

A production company that strives to create high-end broadcast, commercial,

out

camera,

lens

top

of &

the

range

other

new

technologies that steps up the game.

corporate, digital and branded content.

SCENARIO

With offices set up in not only Hong

Recently, due to the shift of analog to

Kong but also major cities in Asia, they

digital, fast redundancy of technology

have worked with range of directors

and the rapid change in the production

in all genres of film making. They have

ecosystem.

collaborated with major film studios and

This had broken down the barrier for a

TV Station from all around the world.

high quality production, with the changing

Apart from pre production & production,

in demand from the market, Salon Film is

they

struggling to maintain their position in the

also

focusing industry.

Managing Value Creation | 5

Renting

on

provides the

rental

services,

Professional

Movie

industry, therefore we have identified this agency as our case studies.

CONTEXT

Managing Value Creation | 6

Context

Research Plan Macro / Industry Research

Micro // StakeHolder Workflow

01. Desk Research

01. Desk Research

Industry Overview

After identifying the client of the case

- Industry Trends

Product and Service

studies and brief understanding on the

- S.W.O.T

Segmentation

context of this industry, we decided to

- Case Studies

dig deeper into the company as well as

- Interview

the context within.

It was broken down into 2 parts - Macro & Micro perspective into the industry.

02. Interiews

Macro view will mostly done by desk

- Salon Film GM

research to have a broader view. Micro

- Young Producers

view will be mostly qualitative, in

- Local and Overseas Experienced

depth interviews in order to draw out a detailed list of stakeholders as well as how the market was segmented with the related workflow identified.

Managing Value Creation | 7

Producers - Previous Government OFCA Member

Context

Macro Industry Overview : Step

Socio Cultural

Technological

• Online advertising has been one of the

• More and more commercial products

key drivers for entertainment and media

come out and people like YouTubers

in Hong Kong.

are shooting at home studios without

• The rich heritage of Hong Kong cinema.

Different factors were used to describe the framework of macro environment, in which way we could have a better understanding of the market growth & business position. The analysis leads to

• Local

actors

and

actresses

in

the

professional facilities.

• 75% of the population in Hong Kong are

previous generation are no strangers

internet users.

to overseas audiences and often win

• Technological

innovations

impact

international acclaim. Celebrities like

the entertainment market with new

Bruce Lee has a huge international

equipment,

influence.

cameras and virtual reality headsets.

such

as

360-degree

• Dramas from TVB and ATV used to

• TV’s stagnation is driven by a shift to

the potential and direction of

be very popular in Asian in the 20th

digital and mobile consumption and

operations. Factors have great

century. However, now local dramas

over-the-top (OTT) services like Netflix

influences on the decision making

have weak competitiveness compared

and Apple TV.

and project development have

with imported dramas among young

been listed as below: Managing Value Creation | 8

generation.

Context

Macro Industry Overview : Step

Economic

Political

• As of January 2017, there were 55

• Specialized

Kong Film Development Council is

of cinema seats is declining.

established to advise the secretary on

dropped 5% from 349 to 331 in 2017.

describe the framework of macro environment, in which way we could have a better understanding of the market growth & business position. The analysis leads to

Hong

cinemas in Hong Kong, and the number

• The total number of films released

Different factors were used to

department,

• PwC data shows TV advertising revenue fell 9.2% in 2015 to US$732 million and further losses are expected this year. TV

the policy, strategy and institutional arrangement for the promotion and development

of

the

film

industry,

as well as the use of public funds to support the industry.

will, however, return to growth in 2017,

• An official government agency issues

and the TV ad market will reach US$825

the legal system of movie screening

million by 2020.

and rating: Hong Kong Motion Picture

• By 2020, Hong Kong’s mobile video

Rating System.

the potential and direction of

internet advertising market will account

operations. Factors have great

for

influences on the decision making

internet advertising revenue, proving a

(CEPA) to make co-production films

and project development have

very effective medium for advertisers to

aimed at Chinese audiences.

been listed as below: Managing Value Creation | 9

35.7%

of

total

a targeted audience.

mobile

display

• Mainland Economic

and

Hong

Partnership

Kong

Closer

Arrangement

Context

Macro : Industry Trends

Film & Entertainment Industry in Hong Kong In the 20th century, Hong Kong was one of the most significant trend leaders in the film entertainment

Harvest and Newport Circuit. While there are more than 200 cinemas in Shen Sheng, Mainland China in 2017.

industries in the world. However, in

Because of the release of Mainland

recent years, Hong Kong faces the

and Hong Kong Closer Economic

limitation of the dynamic market

Partnership

and invade of exported films. As of

an increasing number of movies

January 2017, there were 55 cinemas

have been co-produced by Hong

in Hong Kong. Films are mainly

Kong and Mainland film production

released through channels such as

companies. In 2016, 54 out of a

United Artists, Broadway Circuit, the

total of 89 movies were granted co-

MCL Circuit, the AMC Circuit, Golden

production shooting permits.

Managing Value Creation | 10

Arrangement

(CEPA),

Context

Macro : Industry Trends

Digital Entertainment trend in Hong Kong 0I. The growing numbers of Internet users New

technology

innovative

development

media

are

and

engaging

02. The growing role of analytics 03. The growing impact of new in Key Opinion Leader (KOL) media platforms. identification The Hong Kong Local online media Hong Kong young people nowadays are

platform 100most successful attracted

As

not only influenced by celebrities but the

young

internet

“everyday� social media users who are

streaming

users(IndexMundi), Hong Kong people are

also known as Key Opinion Leader (KOL).

engaging contents. This case shows the

highly influenced by new media platforms

To keep the regular exposure and attract

rising preference to watch a video that

such

and

new followers, the KOLs would make the

is streamed live in Hong Kong. Shifting

Instagram. At the same time, the popular

low-cost videos by themselves to post on

demands from traditional channels TV &

social media platforms are enhancing the

social media platforms.

Cinema to online hence content format

with

audiences

75%

of

as

the

in

Hong

population

YouTube,

Kong. are

Facebook,

video related services.

generation videos

by

creative

live

with

relevant

and

change from public Frequency Table broadcast to Over the top (OTT) media service.

Managing Value Creation | 11

Context

Macro : Industry Trends

in the world. It has huge potential since

win method for both sides.

there will continuously benefit from the

03. Internet and Diversification

policy, internet, and funding..

Companies improve strategies and profits by analyze Big Data and collect data from

02. Globalization and

multiple channels. The trend of “internet

Co-production

plus�, which means to keep pace with the

Entertainment and Media in Mainland China

Chinese investors are ambitious to open

0I. The boom of film industry

technologies and talents, at the same

Chinese box office keeps rising with the expectation to replace North American market in 2020 as the largest film market

Managing Value Creation | 12

overseas market and would seek for new time, filmmakers out of China are looking for the chance to enter one of the largest markets in the world with millions of audiences. Co-production will be a win-

information trend,proposed by China’s prime minister. It encourages internet division to be one of the most important factors. Apart from cinemas, website and app are also good revenue channels for film and advertising industries with the Rising demand for mix media.

Context

S.W.O.T WEAKNESSES

STRENGTHS: Salon Film has hundreds of equipment in store, mostly professional cameras and lens with high prize and even collection value. Besides, as one of the most remarkable film production company in Hong Kong which have established for more than 59 years, Salon Film has a great reputation and stable network connection, which makes its

retail

outlets

numerous

and

convenient

for customers and putting it in line with and ahead of the volume of competitors. It has a production system that it provides recruitment and management assistance too, which also serves to enhance quality and increase the speed of service. As a result, Salon Film has the closest connection with local talents and most significant market influence among equipment rental in Hong Kong. It also has strong and wellestablished distribution and sales networks, which aids cost control.

Managing Value Creation | 13

More and more high quality and low initial cost filming equipment which targeting commercial market came out annually, which the video shooting industry has been subject to in recent years. Small and medium-sized crews barely rent high-end cameras to meet their needs.

Adaptations to technological improvements and new platforms are two main changes that the company has initiated to keep up with competitors. Besides, Salon Film is also less aggressive than competitors in marketing their videos and their technology changes (for instance, 360-degree cameras, virtual reality, Leica M-system). Cool and attracting videos are valued by a large customer base, many of whom are not aware of the capabilities of Salon Film due to this lack of marketing, and creativities especially in the market out of Hong Kong.

OPPORTUNITIES Due to the weakness above, a major opportunity for Salon Film is to better market their strong connection and seasoned production team to increase awareness among consumers. While the co-production is getting popular after CEPA implementation, a study from Legislative Council shows that co-production movies are

growing faster and has large potential. Since Salon Film, like other competitors, has made these adaptations to open mainland market, they need to improve their communication of these offerings to attract customers who would invest but have less awareness of Hong Kong film industries to fully maximize on this growing market. The same is true for its other product additions like equipment rental. Also, the general manager of Salon Film identifies an opportunity to grow by targeting the new media platform, an area where traditional film production companies are underrepresented.

THREATS The main threat to Salon Film is the rapid tech changes. More good-quality and less-prize choices by consumers, it is imperative Salon Film to make wise and prudent equipment investment. Further, the emerging smallsized rental and production houses offer acceptable-quality services and more customizable options with a lower price and add more competition and substitute options that professional production houses must compete with. The loss of local talents in the recent years may also threaten the company regarding its ability to control service quality.

Context

Macro : Case Studies

Laundromatte is a video production agency base in Hong Kong.

Their strength is in creative storytelling and high demanding visual

production. Their

work is majorly for commercials but they also make independent short films for film festivals.

Recently their founder and director Joshua Wang is working on a Hollywood movie. As a small production house (only 4 full time employees), they are very versatile - they can do creative part and also the pre to post production.

We have interviewed Joshua Wang for this project, for detailed interview findings, please refer to the interview page.

Managing Value Creation | 14

Context

Macro : Case Studies

Gwantsi

is

one

production

of

the

company

biggest for

video

high-end

commercials in mainland China.

They

are

positioning

“platform�

for

themselves

entertainment

as

a

content

making. Over the years, they have built up their network in the industry, and also strengthen their content creation team for better creative services.

They also developed their capabilities in the last digital technology to enhance the richness and quality of films, TV, new media, and interactive branded content.

They

even

integrated

comprehensive

services for the animation/art industry by making a collection of diverse animation resources integrates global A-list popular painters,

art

designers,

manga

artists,

creative talent, web celebrities, directors, animation companies, and more!

Managing Value Creation | 15

Context

Macro : Case Studies

Established in 1982, Sil-Metropole Organisation Ltd has been one of the production companies highly influenced Hong Kong film industries.

Since it has the strong connection with mainland film market and good relationship with the Chinese government, it didn’t suffer from the decline in early the 21st century.

It was one of the production companies which involved in the co-production and build a good reputation among Chinese investors. SilMetropole typically works on more than ten co-productions a year as a Chinese partner.

Some of its projects include Three Kingdoms: Resurrection of the Dragon, Invisible Target, Throw Down, Confession of Pain and Star Runner.

The company is also involved in television series and currently produces its projects. To save cost and create new value, it moved the main studios and offices in Guang Zhou and organized tutorials to train its professional team.

Managing Value Creation | 16

Context

Macro : Interviews

Depends on the project, they can either do the

Areas of business:

project internally, or, out source some parts of

• Short Film (For Clients, And Also Personal

the workload to freelancers.

Work For Film Festival) • Corporate Videos

Clients find them to work on any kinds of video.

• Commercials

Clients including brands and adv agencies

• Branded Content

Laundromatte can do creative part if needed,

Video production in Hong Kong:

they can do pre to post production

Landscape is very competitive

They rent the equipments for shooting depends

Less big budget TVC in Hong Kong due to the

01.

Director in Hong Kong: Joshua Wang Australian

living

in

Hong

Director / Founder / Creative Director of Laundromatte, a video production

Managing Value Creation | 17

media, less people watch TV, less brands willing

in one company a trend for the video

to invest on commercials for TV

production house?

budgets, up and down a lot.

for 15 years

agency in Hong Kong

Is creating content, and doing everything

not always high budgets job, some are lower

Kong

on each project’s needs

popularity and the rise of new media and social

Major jobs are for new media and online content,

35-45 years ol

Work flow:

It is not a trend to him, he thinks it really depends on the company’s skill set, if you are capable doing those parts then it is a plus for the

His role:

company, so that you can take on different kinds

Includes director + producer + editor.

of jobs.

He is good at making stories, and also post

How do they find freelancers?

production because that’s his background. So

From their network and word of mouth.

he knows a lot about post production and more

China market:

hands on than other directors.

Company structure:

Have bigger budgets on video production, but they do not have many clients from China since

4 full time core members, everyone has multiple

they are locating in Hong Kong.

hats on, including:

His current work:

Director, Editing, Visual Effects, 3D Supervisor, Production Manager, Client Manager

He is currently making a Hollywood movie, he is the director.

Context

Macro : Interviews In HK: Using HK as a hub, helping a friend here to make hotel commercials in Asia, so travels a lot.

His friend: makes commercials a lot, e.g. using drone to shoot events, time-lapse…

His comments: HK is a not a good place for film, either China or US, thats why he is moving to US

02.

Director in Asia: Alex O

HK is base to shoot asia Some commercials, e.g. KOL mini documentaries, branded content, travel shows… but he said he is not the best one to ask, he doesn’t know that much about the local market here.

In China: more money and investment laying around, they want to find good scripts to film.

But in other place, you need to first have a good

Australian in Asia Freelance

director,

script and find producer and money to shoot

cameraman,

In China: a foreign film wants to shoot in

editor and writer

China, you need to find a local DP (director of

Used to base in Shanghai, started to

you, and a local production contact who speaks

photography, normally a freelancer) to help

base in Hong Kong for a year, but now

Chinese and English. But in HK, everyone speaks

he is moving to US to make his own

english, so the local team has less advantages.

film

Managing Value Creation | 18

Context

Macro : Interviews

and scripts => hire the executive producer to find a right production team => find 3-4 production house to see what kind of directors

“It is springtime for video production in China!”

1. from agency or production house: mid-big scale projects, above 1.5M RMB budget

along his/her team including prop, clothing, art direction, camera operation team… => ….. house and agency (agency confirm with client) => after shooting, production house give the footage to post production company to do

2. from her own connection: smaller scale

editing…

projects, below 500K RMB budget

Basically advertising agency does the creative

Roles:

part, production house in charge of the pre and

1. Executive Producer (kinda like a Producer

post production, but post production is their

director)： In charge of pre-production to post

vendor.

production the whole process.

Hierarchy of roles:

– Be an intermediate/bright/project manager

Executive producer

between agency and production house. Because the

agency

do

not

have

the

professional

knowledge in production, it is easier to have a Executive Producer to help them manage the production team 2. Assistant Director: only in charge of the preproduction (including the shooting part) Helping out the director to make the project come true

31 years old, Female

Commercial video - Agency Work process:

Freelance Producer in Shanghai

Advertising agency makes the creative brief

Managing Value Creation | 19

and confirm the agency=> the director can bring

meetings and confirmations between production

Where to get jobs:

03.

Producer in Shanghai: Fiona

they recommend => choose the right director

| Producers | Line producers

Suggestions: 1. Work: depends on personal connections, word of month.

2. if Salon film want to do commercial videos in China, better hire a good producer who has good connection and good portfolios

Context

Macro : Interviews

04.

She is looking for jobs, two options for her:

Script writer in HK: Fish

- has good executive producers

24 Years Old, Female

- will find production house to shoot & post

From Mainland China, came to Hong

production

Kong study film in a Master program

2. independent director’s studio

Fresh graduate, hunting for a job

1. Big film making company:

- good directors - hire writers to make scripts based on the company’s direction

Her comments: In HK, you know names not company… means personal connections are important

Managing Value Creation | 20

Context

Macro : Interviews

About Hong Kong film industry:: As a sales executive who would work with production team as well as distribution channels, she believed that it was not the golden time for

About Salon Film:

05.

Asian Movie Sales Executive: Clotho Yip 27 Years Old, Female All rights entertainment, Hong Kong

Managing Value Creation | 21

Hong Kong movie anymore. Given the decreasing trend of cinema seats available in Hong Kong,

She had visited the office of Salon Film during a

local movies face an uphill battle to compete

studying tour organized by the Academy of film

with popular Hollywood movies for screening

when she was studying in the Hong Kong Baptist

in local cinemas. Besides, Hong Kong movies

University. She told us not as many companies

may need to improve the quality to maintain

in Hong Kong as Salon Film that could have their

competitiveness

building and store lots of high-end equipment.

Imported movies played a significant role in the

It was greatly to widen her horizon. However,

revenue model. Last but not least, she believed

she thought the office direction was old-fashion.

that there was still a large market for movie

After the visiting, she kept her eye on Salon Film

distribution in Hong Kong since it was a harbor

when she hunted for her job, but she didn’t find

for the western movie to enter the Asian market.

any position or updated information form the

For the movie production, she said there were

company website.

more chance and investment in Mainland China.

against

exported

movies.

Context

Macro : Interviews

06.

Freelance Filmmaker: Joey Hu Under 30, Female Hong Kong

Managing Value Creation | 22

Life of freelance filmmaker in Hong Kong:

About the industry::

She won some scriptwriting and video awards

She disagreed that Hong Kong local films were

when she was studying at the University, well, she

dying, and she believed there were still lots

still made efforts on the competitions since they

of chances and potential in the entertainment

were one of the best chances to build portfolios

industry. One of the biggest strengths of Hong

and accumulate fame as a movie maker. In the

Kong was the Hong Kong motion picture rating

first three years, she worked in a foreign capital

system, which allowed filmmakers to express

production house to gain more experiences.

their thoughts with less limitation. However,

After that, she collaborated with several young

she could not deny that the limited fundings

talents to build the small-sized crew. Her clients

and small domestic market were big problems.

knew her from the awards, the previous clients,

“Through the cinemas are dying, videos are still

and their friends. Her major job in 2018 is to

booming on the websites, Apps, and mobile

write a script for a co-production movie which

phones.” she was confident about the new video

is produced by Johnny To. Otherwise, she

platforms. She told us the qualities of some

would help with brands to do some commercial

online dramas were as good as movies, and

videos. For the future, she planned to learn

more people would love to watch because of the

to programme. “It is a trend to make fancy

convenience. In the present,

animation and short adverting video on the social

including her tried to open the new market and

media platform,” she said.

find new revenue channels.

local filmmakers

Context

Macro : Interview Questions

05.

Each interview will have some changes accordingly, but here is

06.

a guideline.

What is your workflow? How and where do you get jobs, from start to finish?

01.

Could you briefly introduce what your company does, and what is your role in it?

02 What is your background, and what did you do before this?

03.

What is your company’s service areas, how do you put it in one sentence? e.g. Including pre-production and post production? What else do you offer, e.g. content creation?

04.

What is your company’s structure, how many employees?

Managing Value Creation | 23

Do you also work with freelancers? How do you build a network?

07.

What is the film/video production landscape like in HK? Competitive? Booming now? Or declining?

08.

Who are your competitors? Do you have other teams locating in China or overseas?

09.

How will you, personally, define success for your company, or for your role?

10.

What kinds of projects you would like to take on more in the future?

Context

Industry Workflow & Ecosystem Product and Service Segmentation Video production are very content based,

TV Content

and the categorisation does not solely

Normally series contents from 20 mins to

defined simply by their target audience,

45 mins for HK TV stations, mostly dramas

broadcasting

storytelling

& variety shows. Most of the production are

(content & context). When we look deeper

done in house but the new digital licensing

into ways to differentiate them, it become

HK government is giving out drives new

quite clear that one other major aspect that

competitions and more new companies try to

is differentiating them are the durations

purchase or outsource programmes from local

hence

and international. - Does not exist in current

affect

platform

the

&

planning

&

resource

allocations:

Salon Films portfolio.

Advertisement

Movie

Normally one-off 30 secs to 2 mins for TV

Most of the “proper� movies will consider

Commercials , and 30 secs to 15 mins on

to last for 120mins in durations mostly one-

social media, Brand & Agencies driven. The

off but some as a sequels. There are less and

new broadcasting channels had a big impact

local productions in HK now but still a lot of

to type of contents client creates and the

collaborations with China under CEPA and HK

amount of budgets they allocate. - No

still attracts some overseas filmmakers as one

strong present for Salon Films

of their location for their shoot. - Main service for Salon Film

Managing Value Creation | 24

Context

Industry Workflow & Ecosystem

Video Production Ecosystem

(S

Commercial video is a video that usually promotes a product, service or brand. It is pushed out to an audience and backed by media spend. The goal of a video

Client Brand

commercial is to raise awareness, acquire new leads, nurture existing ones and increase conversions...

But here we use “commercial video� as an

category

refers

to

or

ca

n

om

th

e

et

im

e do pro s th th duc e b e cr tion rand ea tiv hou s e pa e rt)

advertisement,

Production House

TVC, corporate video, branded content, events, or any videos required by a brand or company which are either for internal or external commercial usage.

For the commercial

video production

house, it is a very competitive landscape in the new media era. Since the budgets from clients are up and down due to the rise of online content, it is important for them to keep the core team small and stay versatile in production skills enable to adapt themselves for different kinds of projects and challenges.

Managing Value Creation | 25

Creative Agency

Executive Producer

Pre Production

Shooting

Bridge Post Production

Context

Industry Workflow & Ecosystem

T.V Content Production Ecosystem

In HK the production from TV stations, everything from preproductions to post productions are normally done internally, since it will be easier to manage cost on the

Client (Broadcasting Company)

Inhouse Scriptwriter

free TV channels that depends on advertising fee. Selling their programmes was not the first priority mainly because of the market size for cantonese speakers. However in

Executive Producer

Bridge

the digital era, translations and OTT could actually

bring

good

quality

content

to

individuals with ease.

In the past few years, HK government had

Production House

been giving out a lot of digital TV license and

the

demand

Therefore

more

of

and

TV

content

more

rises.

broadcasting

platforms start to adapt more western way, where production and broadcasting is fully separated. With a workflow similar to the diagram on the left. Where the production house will focus more on the planning & execution, then the TV house will get the raw materials from them for inhouse post production.

Managing Value Creation | 26

Producer

Pre Production

Shooting

Post Production

Context

Industry Workflow & Ecosystem

Film Making Production Ecosystem Investor 1

Investors 2,3,4

Client (Filmmaker)

Script Writer 1 Script Writers 2,3,4

For the movie industry everything will be in a larger scale. Hence the module approach to all sections of the workflow with a centralise body of the filmmaker.

Executive Producer

The basic workflow will be the same but

Production House 2,3,4....

the resources will need to be gathered from different suppliers in all stages, from the ideations to post productions.

Although even with a large budget for

Production House 1

making a specific movie, it will be spread across

multiple

production

houses

that

normally determined by their expertise as well as locational support.

This is the most common workflow for salon film, and due to the heavy segmentize processes salon films will need to ensure they are the top player in their specific skill as well as new ones that allows them to keep their present within the field

Managing Value Creation | 27

Producer

Pre Production

Shooting

Post Production

Context

Micro : Narrative Inquiry Interview

01.

GM of Salon Film Tony Ngai

Used to be leading in the local market when HK is

Relatively high risk when simply producing,

top of the Asia movie industry therefore able to

therefore integrated the rental services with both

gain a lot international exposure till then which

technique & equipments as their business model

still maintain as one of the top choice for oversea

Currently working on projects that starting from

productions.

50k to few Million HKD

Liberations of technology makes rental service

Profit ratio will be 6 : 4 for Production : Rental

very difficult, during film era the equipment payback time might be 5 years time with 8

50 years old

years lifetime before it is obsolete. But now the

Local HK

equipment for shorter 2 years payback time but

One

of

the

first

generation

employee in Salon film

Managing Value Creation | 28

of

There are around 70 Full time staff focuses on Pre production & post production, with on demand freelancers to support the actual production.

it will be obsolete within a year! (200M HKD

SML is one of the adaptation for the new social

worth of equipment as fixed assets, not include

media & prosumer market

company owned building)

Context

Micro : Narrative Inquiry Site Visit

Managing Value Creation | 29

Context

Salon Film Workflow and Ecosystem Pre Production Current Salon film focus mainly in the of industry workflow but with no strong participation in other areas. But the new system were more multi directional and collaborative.

This puts Salon Films into the only

Salon Films

execution part within the single steam

Production

sector that is very resource based in compare to the ideation & distribution sector which is more knowledge based.

It really limits Salon Films opportunities by

drawing

resources

out

with

diminishing return in long run, where the spread of knowledge via ideation and distribution will have an increase of return during the process of information application of the ideas.

Managing Value Creation | 30

Post Production

02.

EMPATHISE AND ANALYSIS

Managing Value Creation | 31

Analysis

New Collaborative Ecosystem

Investment

Ideas/Script

The

Execution

working system of the industry, as

mentioned earlier, is more multi directional and collaborative. It is a combination of resource based work flow and ideation and knowledge based flow.

The spread of knowledge via ideation and distribution has increasing returns for all based on the defined niche in the industry. The free movement of knowledge and resources in a circular form leads to larger returns in this collaborative, experience economy.

Managing Value Creation | 32

Process / Editing

Distribution

Analysis

Rivalrous / Excludable Matrix

Production

Post Production

Rental & Maintenance

Pre Production

Rivalrous/ Excludable

Non-Rivalrous/ Excludable

From this matrix, we are trying to

For most of the Pre productions &

separate the core business of Salon

productions are quite clear that

Flims and see how these product &

will be tailored for the client for

services were delivered. First we will

specific project. Where the rental &

need to define the 4 main areas:

maintenance will be widely available to

Rivalrous/ Non- Excludable

Non-Rivalrous/ NonExcludable

multiple

clients

with

the

it

same

Rivalrous

resources. Post Production will be on

Once consumed by one person (client),

the border as most of the process will

it cannot be consumed by another.

be very universal to all clients but yet individualised,

Non-rivalrous Can

be

used/consumed

however

if

creativity

was not required in this point (creation by

many

people.

of CGI) it would be a non rivalrous & excludable. Allowing the company to use the same resource for multiple

Excludable (Private)

clients.

a good that can only be consumed upon

Salon films could develop more service

payment.

based products such as education, collaborations & even remodel the

Managing Value Creation | 33

Non-excludable (Public):

payment method for the current rental

any good that does not have to be paid

& maintenance services to fully utilise

for. (by Taxes)

their resources.

Analysis

Stakeholder Map Internal

External Alternative Investors

Internal Operations •Investors

Cultural

•Management

Government •HK

•Sales •Marketing •Logistics •Finance •Maintenance •I.T

- Creative HK - HK Broadcasting Authority - Office for Film

Beijing Region •China •KL

H.K Macau Ghanjzhou Shanghai

•China •KL •SG

•Singapore

Partners

•Jockey club •HK Gov

•TVB •RTHK •EEG •Pegasus

Promo

•Fairs - HK •Film Art by TDC

Competitions Education & training •Universities •Industry update •SMPTE

Competitions

Suppliers •Camera •Logistics

Front End Operations Rental

•Students •Youtubers •Incubators

•FT. Producers •Directors •Production Manager

•Tasks and Seminars

PPS

Production

•Documentaries •Music Videos •Corporate Videos

•Designers •Maintenance

•Immersive Entertainemnt •Commercials

•Audio Team

•Print?

•Transmedia?

•Cinematographers

Freenlance Producers •Lighting •Editing Team •Directors •Writers

Managing Value Creation | 34

Clients •Production houses (local) •Overseas clients •Brands (in house) •Broadcasting Platforms (Free TV, Paid TV & Online) •Advertising Agencies •Freelancers

Competitiors Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

Free TV

•TVB •Viu T.v.

•Wonder T.v.

•RTHK Paid TV

•Now Tv •Cable Tv •Phoenix

OTT

•Netflix •LetTv •HkTV

Sharing

•Youtube •Vimeo

Customisable •Patreon

Analysis

Value Flow Map goods & services

OFFSHORE BRANCHES

COMPETITIORS SOCIETY

PROSUMERS MANAGEMENT INVESTORS

STUDENTS

•Universities •Industry update •SMPTE Competitions

BACK END OPERATIONS

•Maintenance

•Students

•Incubators •Tasks and Seminars

FRONT END OPERATIONS

SUPPLIERS •Camera •Logistics •Designers •Maintenance

- HK Broadcasting Authority - Office for Film

•China •KL •SG

•Audio Team •Lighting

SALES AND MARKETING

•Cinematographers •Editing Team •Directors

•Jockey club •HK Gov

Promotional

•Fairs - HK •Film Art by TDC

Competitions

CLIENTS • Movie Makers • TV Station

•Writers

BROADCASTING PLATFORMS Free TV Paid TV / OTT Sharing Cinema

Managing Value Creation | 35

PARTNERS

Freelance Producers

•Rental Department •Production Department

•TVB •RTHK •EEG •Pegasus

- Creative HK

•Youtubers

•I.T

GOVERNMENT

ALTERNATIVE INVESTORS

•HK

•Logistics •Finance

Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

Commercial • Advertisment Agency • Event Agency • Brands

Analysis

Value Flow Map knowledge

COMPETITIORS

OFFSHORE BRANCHES

SOCIETY

PROSUMERS MANAGEMENT INVESTORS

STUDENTS

•Universities •Industry update •SMPTE Competitions

BACK END OPERATIONS

•Maintenance

•Students

•Incubators •Tasks and Seminars

FRONT END OPERATIONS

SUPPLIERS •Camera •Logistics •Designers •Maintenance

- HK Broadcasting Authority - Office for Film

•China •KL •SG

•Audio Team •Lighting

SALES AND MARKETING

•Cinematographers •Editing Team •Directors

•Jockey club •HK Gov

Promotional

•Fairs - HK •Film Art by TDC

Competitions

CLIENTS • Movie Makers • TV Station

•Writers

BROADCASTING PLATFORMS Free TV Paid TV / OTT Sharing Cinema

Managing Value Creation | 36

PARTNERS

Freelance Producers

•Rental Department •Production Department

•TVB •RTHK •EEG •Pegasus

- Creative HK

•Youtubers

•I.T

GOVERNMENT

ALTERNATIVE INVESTORS

•HK

•Logistics •Finance

Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

Commercial • Advertisment Agency • Event Agency • Brands

Analysis

Value Flow Map money

OFFSHORE BRANCHES

COMPETITIORS SOCIETY

PROSUMERS MANAGEMENT INVESTORS

STUDENTS

•Universities •Industry update •SMPTE Competitions

BACK END OPERATIONS

•Maintenance

•Students

•Incubators •Tasks and Seminars

FRONT END OPERATIONS

SUPPLIERS •Camera •Logistics •Designers •Maintenance

- HK Broadcasting Authority - Office for Film

•China •KL •SG

•Audio Team •Lighting

SALES AND MARKETING

•Cinematographers •Editing Team •Directors

•Jockey club •HK Gov

Promotional

•Fairs - HK •Film Art by TDC

Competitions

CLIENTS • Movie Makers • TV Station

•Writers

BROADCASTING PLATFORMS Free TV Paid TV / OTT Sharing Cinema

Managing Value Creation | 37

PARTNERS

Freelance Producers

•Rental Department •Production Department

•TVB •RTHK •EEG •Pegasus

- Creative HK

•Youtubers

•I.T

GOVERNMENT

ALTERNATIVE INVESTORS

•HK

•Logistics •Finance

Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

Commercial • Advertisment Agency • Event Agency • Brands

Analysis

Value Flow Map goods & services money knowledge

COMPETITIORS

OFFSHORE BRANCHES

SOCIETY

PROSUMERS MANAGEMENT INVESTORS

STUDENTS

•Universities •Industry update •SMPTE Competitions

BACK END OPERATIONS

•Maintenance

•Students

•Incubators •Tasks and Seminars

FRONT END OPERATIONS

SUPPLIERS •Camera •Logistics •Designers •Maintenance

- HK Broadcasting Authority - Office for Film

PARTNERS

•China •KL

•Jockey club •HK Gov

•SG

Freelance Producers •Audio Team

•Rental Department •Production Department

•Lighting

SALES AND MARKETING

•Cinematographers •Editing Team •Directors

Promotional

•Fairs - HK •Film Art by TDC

Competitions

CLIENTS • Movie Makers • TV Station

•Writers

BROADCASTING PLATFORMS Free TV Paid TV / OTT Sharing Cinema

Managing Value Creation | 38

•TVB •RTHK •EEG •Pegasus

- Creative HK

•Youtubers

•I.T

GOVERNMENT

ALTERNATIVE INVESTORS

•HK

•Logistics •Finance

Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

Commercial • Advertisment Agency • Event Agency • Brands

Analysis

Value Flow Analysis goods & services money knowledge

COMPETITIORS

OFFSHORE BRANCHES

SOCIETY

PROSUMERS MANAGEMENT INVESTORS

STUDENTS

•Universities •Industry update •SMPTE Competitions

BACK END OPERATIONS

•Maintenance

- Creative HK

•Students •Youtubers

•I.T

•Incubators •Tasks and Seminars

FRONT END OPERATIONS

SUPPLIERS •Camera •Logistics •Designers •Maintenance

- HK Broadcasting Authority - Office for Film

•China •KL •SG

PARTNERS •Jockey club •HK Gov

Freelance Producers •Audio Team

•Rental Department •Production Department

GOVERNMENT

ALTERNATIVE INVESTORS •TVB •RTHK •EEG •Pegasus

•HK

•Logistics •Finance

Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

•Lighting

SALES AND MARKETING

•Cinematographers •Editing Team •Directors

Promotional

•Fairs - HK •Film Art by TDC

Competitions

CLIENTS • Movie Makers • TV Station

•Writers

BROADCASTING PLATFORMS Free TV Paid TV / OTT Sharing Cinema

Commercial • Advertisment Agency • Event Agency • Brands

From the value flow chart, we have discovered 5 major areas can be improved: 01. Better use of the key value coming from the inside of Salon firm itself.

Strength the core business and brand value for Salon Film itself, and utilizing their brand power to add value to other parts of their business units.

2. Develop offshore branches especially the mainland branch to hunt

Managing Value Creation | 39

for more and bigger fish.

videos with new media focus.

Since the film industry is shifted to 4. Strengthen the human resource mainland China, it is important to develop network with a selective pool of the mainland market for Salon Film to stay freelance talents. on top of the game. It can bring back more Manpower is the key engine for the video value to the main Salon Film Hong Kong. production business. To be efficient with the cost to run the business, it is important 3. Create value from Salon Film’s the to keep the core team small and utilize brunch Salon Media Lab (SML) to make the freelancers. To create a better active healthy business. network of the talents will generate a good Develop SML’s business model to make trunk flow of value for the whole business it into an self sustainable business. ecosystem.

At the moment, SML is fully founded

by Salon Film and cannot make any money to support its function. We can use Salon Firm’s brand power as a supportive foundation to further develop SML’s core services areas - utilize their strength (production skills) and build it into a youthful, innovative and creative production platform for smaller scale

5. Manage the clients better for different business units focuses.

Separate the clients into 2 different categories, one is Salon Film focused, and one is SML focused. Streamline the communication between the right client with the right business unit for better services and work result.

Analysis

Economic Paradigms

From our analysis, we had identified that Salon film are now in between the Industrial & Experience economy by the how the stakeholders are influenced at this moment & the goods and service that the business are currently providing.

By the launch of the SML in 2016 we can see that Salon film is trying to move to the Knowledge economy by creating this new platform but not very effectitly as some of the aspects in both people & business mindset wasn’t met to bring the complete Value Chain & Network to the stakeholders.

There are a lot of potentials to bring all these

Deliverables

Product

Product + Service

Platform

Ecosystem

Value Creation

Value Point

Value Chain

Value Network

Value Constellation

new values to both the business & people simply by reorganising the whole value flow between the stakeholders as most of the resources were in place.

Managing Value Creation | 40

Salon Films

Brand, Reon, and Rocchi, Simona (2011). Rethinking value in a changing landscape.A model for strategic reflection and business transformation.

A Philip design paper.

Analysis

Current Value Framework When we map out the current value framework from salon film we can see they are very user & organization driven, and we would like to bring more values via Salon Film into different aspect of the industry.

Economy Salon will simply provide product / service in exchange for money.

Since there are a surplus of value in this exchange hence generating profit.

Psychology Happiness that was created by the stratification of the service money exchange that Salon film provides. The core values of the organisation of class does not appear strongly in their work.

Sociology Symbolic & sentimental value were presented for the user but the significance was no longer there. However by the educational contribution to the society Salon film was able to bring social responsibility back to the industry.

Ecology This will be more focus on the personal human development as well as the creativity in all levels. And there are no significant touch point from salon flim in this area.

Managing Value Creation | 41

Analysis

Key Findings

Amidst such rise and fall , Hong Kong

the dominant “product” with big budgets from

film faces the rising global competition,

brands. In the digital era now, videos for new

to be seen as creative in original content

technological change, the shifts in the

media and social media are the key demanding

making, to attract the client to work with.

mainland market, as well as the impact of

“product”. to have the latest digital technology and

internet video production.

While the Hong Kong film industry is

Video contents are embedded everywhere

mix media to keep up the game - to better

passing its glory time, the big money in

online which requires faster and relatively

serve the client. Mix Media is the future.

film production industry is shifting to

smaller production. The brands are expecting

mainland China. However, Hong Kong is

more and more innovative and highly digital

to have an integrative platform to connect

still a good place for commercial video

interactive video content to attract and

different freelance talents together, enable

production, which is very different to the

entertain the new age audiences.

for different types of video projects.

film production industry, in terms of the scale of the projects, workflow, budgets,

Therefore,

the

challenges

human resource and the output channels

production house are:

for

the

video

to have good relationship and good word of month with the creative agencies and brands.

are all very different.

To be able to develop a more steady

to be versatile in different skill sets, from pre

workload, Salon Film should consider to

to post production. Too technique based at

To present a strong brand image and

develop this area further.

this moment, Post production is more than

values to clients and Suppliers

simple editing nowadays, as CGI and taken In

the

commercial

video

production

industry, TV Commercials are used to be

Managing Value Creation | 42

on a heavy roles and even CGI by itself could create a movie

Embrace the opportunity in China

03.

IDEATE AND PROTOTYPE

Managing Value Creation | 43

Ideate and Prototype

New Value Framework

Current Target Possibility

Managing Value Creation | 44

Ideate and Prototype

Value Framework Analysis

In this new value framework we are trying to increase the amount of values that Salon films could bring to the whole industry. Retaining the current values while aiming to enhancing more users and organization values, hence the possibility of reviving the HK film industry.

Users At this moment the related users were able to experience the value of the services and enjoys the quality it brings. However one very fundamental sense of belonging was missing from Salon Films, the values was only created via the product &

Current

services but not from the other users.

Target

The Prosumers, Students & Freelancers do not have strong linkage in between the industry, networking for all parties by providing education, collaborations between all 3 parties to allow all Salon flim users to step up their game. Where Salon films could be the platform that allows shared experiences, Job opportunities & creativities.

Managing Value Creation | 45

Possibility

Ideate and Prototype

Value Framework Analysis

In this new value framework we are trying to increase the amount of values that Salon films could bring to the whole industry. Retaining the current values while aiming to enhancing more users and organization values, hence the possibility of reviving the HK film industry.

Current Target

Organization In this level, we would like to reinforce the core values of Salon Films. A new core value of Salon films should be presented in multiple levels of their business, and this value could be brought forward in reinforced with the social education they are currently providing for the youth and industry.

Managing Value Creation | 46

Possibility

Ideate and Prototype

Value Framework Analysis

In this new value framework we are trying to increase the amount of values that Salon films could bring to the whole industry. Retaining the current values while aiming to enhancing more users and organization values, hence the possibility of reviving the HK film industry.

Ecosystem The target is to ensure the stability of Salon Films itself as well as the whole industry ecosystem, this could be done with a common shared drivers across the industry. Since the industry is very content driven, creativity will be the key & technology shall of the medium to bring this forward. And with reciprocity as the goal for the new ecosystem, more stakeholders will be able to gain values from each others a mutual benefits. For example, students will gain knowledge & network from Salon

Current

Flims; Freelancers will act as mentors and bringing up new

Target

blood for themselves & the industry with a affordable price; Salon Film will be able to act as an agent to identify new talents for the industry & themselves, acting as a bridge to the global stage ; this network will enhance and improves the quality of work produced for a more open & competitive market which will benefits the clients & HK based production industry as a whole.

Managing Value Creation | 47

Possibility

Ideate and Prototype

Value Framework Analysis

In this new value framework we are trying to increase the amount of values that Salon films could bring to the whole industry. Retaining the current values while aiming to enhancing more users and organization values, hence the possibility of reviving the HK film industry.

Current

Society

Target

From previous point we can see how the improved quality

Possibility

production could bring wealth to the HK movie industry again, even the aspect of meaningful life to the HK society where the social significance was brought out via it cultural & historical values that only Salon films can brings from the glory days of HK movie industry.

Managing Value Creation | 48

Ideate and Prototype

New Economic Paradigms In order for Salon films to move towards the knowledge economy, they will have step up alot on different aspects of values that they are bringing towards the people as well as business.

We think that SML is a great mediator for the traditional Salon Films to merge into the new context of the new media & broadcasting channels.

In the new knowledge economy era, the context of the media itself is more important than then technology alone. The knowledge that was embedded is the key to driver for the clients to put their foot down. With SML Salon Films will be able to bring individual empowerment, allowing them to pursue their aspiration while developing their potentials.

All this was done via the creativity of the individuals, and this should not be bounded by the current physical spaces. Hence a virtual platform will be the ideal place to indulge and develop different ideas with a network of expertise and creative minds.

This virtual platform will be a tool that able SML & related stakeholders to participate in the development of creativity and network that would bring mutual benefits we had highlighted from the new value framework.

Deliverables

Product

Product + Service

Platform

Ecosystem

Value Creation

Value Point

Value Chain

Value Network

Value Constellation

Before After

Managing Value Creation | 49

Brand, Reon, and Rocchi, Simona (2011). Rethinking value in a changing landscape.A model for strategic reflection and business transformation.

A Philip design paper.

Ideate and Prototype

New Value Flow goods & services money knowledge

COMPETITIORS

OFFSHORE BRANCHES

SOCIETY

PROSUMERS MANAGEMENT INVESTORS

STUDENTS

•Universities •Industry update •SMPTE Competitions

BACK END OPERATIONS

•Maintenance

•Students

•Incubators •Tasks and Seminars

FRONT END OPERATIONS

SUPPLIERS •Camera •Logistics •Designers •Maintenance

- HK Broadcasting Authority - Office for Film

•China •KL •SG

•Audio Team •Lighting

SALES AND MARKETING

•Cinematographers •Editing Team •Directors

•Jockey club •HK Gov

Promotional

•Fairs - HK •Film Art by TDC

Competitions

CLIENTS • Movie Makers • TV Station

•Writers

BROADCASTING PLATFORMS Free TV Paid TV / OTT Sharing Cinema

Managing Value Creation | 50

PARTNERS

Freelance Producers

•Rental Department •Production Department

•TVB •RTHK •EEG •Pegasus

- Creative HK

•Youtubers

•I.T

GOVERNMENT

ALTERNATIVE INVESTORS

•HK

•Logistics •Finance

Rental •Tom Lee •Digi Digi •Rentacamera.com •先力 Cine Rent Production •APV •Garage •Onekool •I Solution •Post Production Office Group (PO) •Laundromate

Commercial • Advertisment Agency • Event Agency • Brands

Ideate and Prototype

Final Solution Salon Film Group

Salon Media Lab

Salon Film Main Business and Brand

New Business Unit and Sub brand

01.

Video Production Agency Commercial Video Production Hong Kong Base

Offshore Base

People

Focus

Build a platform to attract the experiences & upcoming talents together as a stronger asset.

02.

Young Talent Training and Incubation Center Film and TV Production Focus

01

Social Projects Focus

03.

A platform to bridge freelance talents and the commercial jobs together.

New Core Values

02 Technology new digital technology + Collaborations.

Managing Value Creation | 51

03 Creativity originality and creativity Develop the in house script writing and storytelling skill sets.

Ideate and Prototype

Final Solution

Salon Film Group

Sa

Salon Film Main Business and Brand

Salon Film Group acts as an umbrella for Salon Film and Salon Film Lab, it carries the Salon Film brand history and values as an whole.

A. Salon Film itself: As the key stakeholder, they should position themselves as an high-end / high quality film production firm ONLY (e.g. do not put any low quality event materials on their website), embrace their background history to showcase their professionalism, capabilities and the leading role in the industry. Make sure they present their brand values across different marketing touch points consistently in order to have an coherent brand image and express brand message efficiently.

A1. Hong Kong base: Key business: - Local film and TV production

Managing Value Creation | 52

- International film & TV production Key action: - Upgrade branding and marketing materials to be more film and TV focus - Create a better brand experience to promote Salon Film brand, e.g. Film Museum and themed exhibitions about the films they have produced in the past.

- Utilize the resource for SML development A2. Offshore base: Key business: Mainly focusing in mainland China base to develop the network for more Chinese film and TV productions.

Key action: Business development in mainland China

New

01.

Vid

Co Hong Kong Base

Offshore Base

Fo

02.

You Inc Film and TV Production Focus

So

03.

Ap tale job

Ideate and Prototype

Salon Film Group

Final Solution B. Salon Film Lab: Position it as a new business unit and sub-brand in Salon Film Group, focusing on the new value of: people, technology and creativity.

B1: SML Production Agency Key business: SML will first become a sustainable business by offering commercial video production, including commercials, promotional videos, corporate videos, events and branded contents for TV, new media and social media.

Key action: - Finding the right people to join and lead the team - Getting the suitable jobs to start with - Invest in the new digital technology for video production - Develop its own content making skill set to stay on top of the game Key Members: - Keep the core team small and multitalented across pre to post production including producer, director, editing, visual effects, 3D effect and script writers.

- Build up a selective freelance base for different types and scales of projects.

B2: Young talent training & incubation ] center Key business:

Managing Value Creation | 53

- To attract more young emerging talents to join the network for paid Salon trainingFilm - More social projects focus to create social Main Business and Brand impact and add values to the society - Support self developed independent short film for film festivals with presented directors - for self marketing purpose Key action: - Make contact with the local film and media Kong Baseto join Offshore Base school to Hong get new talents - Curating new video projects connecting with social focusing organizations, e.g. local NGOs. - Find some experienced instructors to join and help train the new talents.

Key members: - Instructors & trainers in video production Film and TV Production Focus - Marketing management

B3: A platform to bridge freelance talents and the commercial jobs together Key business: Create a platform by building up the freelancer community by existing network and SML’s training & incubation center.

Key action: - Stay connected - A system to better manage talents and their portfolios, e.g. a online platform or internal use software

Salon Media Lab New Business Unit and Sub brand

01.

Video Production Agency Commercial Video Production Focus

02.

Young Talent Training and Incubation Center Social Projects Focus

03.

A platform to bridge freelance talents and the commercial jobs together.

New Core Values People Build a platform to attract the experiences & upcoming talents together as a stronger asset.

People:

01

Manpower is the key engine for the video production business. To be cost efficient and quality sufficient, it is better to build a platform to attract the experience and upcoming talents together as a stronger asset.

Technology:

New Core Values

To stay on top of the video production game, it is better to keep up the skills on new digital technology to inspire the clients and creatives for collaborations.

02

Creativity: In this content driven era, originality and creativity are the key for video making. To attract more business it is crucial to develop the in house script writing and storytelling skill sets.

Managing Value Creation | 54

Technology new digital technology + Collaborations.

03 Creativity originality and creativity Develop the in house script writing and storytelling skill sets.

REFERENCES

Managing Value Creation | 55

References Lab, S. M. Retrieved from http://salonmedialab.com/en/ Laundromatte. studio website. Retrieved from http://www. mram, M. (2002). Value sweep : mapping corporate

laundromatte.com/

growth opportunities. Boston, Mass.: Boston, Mass. :

Lee, P. (2005). Hong Kong's film industry : a path

Harvard Business School Press.

to enter the global market in the new century. Thesis

DeFillippi, R. (2014). International perspectives on business innovation and disruption in the creative

(D.B.A.)--The Hong Kong Polytechnic University, 2005., Hong Kong.

industries : film, video and photography. Cheltenham,

Leung, L.-k. (2003). Broadcasting policy in the age of

England ; Northampton, Massachusetts: Cheltenham,

convergence: A comparative study of Hong Kong and

England ; Northampton, Massachusetts : Edward Elgar.

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APPENDIX

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Value Framework

Managing Value Creation | 59