Download - Business Design Practicum Report
Gear 3: Business Strategy ReportTeam C: The Nomadic Travelers
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semaJ nitisrKrammA tihoRahtibaT werdnA
ervra lT seiaom dN c
What is history? An echo of the past in the future; a reflex from the future on the past? -Victor Hugo
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Table of Contents
Part 1: Value Exchange
Part 2: Experiments
and Quick Wins
Part 3: ECHO Activity System
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Executive SummaryVALUE EXCHANGE: The ECHO platform will provide new opportunities for value exchange between the CBC and its stakeholders by providing a strong business system that benefits all partners. Three new elements of revenue generation include rating and donation system fees from a proprietary crowd-funding platform, new sources of advertising revenue on the ECHO platform, and better targeted marketing due to more sophisticated consumer pattern analysis. This new multi-faceted value exchange model will diversify CBC’s revenue stream by providing great opportunities for content creators while engaging Millennials with more choice and relevancy in content offerings. This system of balanced value exchange creates a sustainable revenue model, and can be easily pioneered, as there is existing technology to support ECHO [i.e., crowd-funding systems (e.g. Kickstarter), pay-as-you-like models (e.g. Humble Bundle), and algorithm-tailored customization (e.g. Netflix)].
EXPERIMENTS/QUICK WINS: Because the ECHO platform is dependent on users for content creation, it is important to know if users will produce meaningful content that is of interest to Canadian Millennials. In order to test this hypothesis, CBC can run an experiment in the form of a contest. Using either CBC.com or YouTube.com, CBC can host a contest with monetary and promotional rewards for the best submission. Experienced industry-experts will judge the quality of the submissions, while analytics will measure the volume and types of submissions, number of views and votes per submission, as well as demographic information about users. If the contest is a success, CBC can continue to use CBC.com or YouTube.com as a platform to further develop the ECHO concept, keeping costs down and allowing CBC to conduct further experiments before fully investing in the ECHO platform.
ACTIVITY SYSTEM: The ECHO activity system revolves around four unique value prepositions: creating an engaging experience for Millennials, encouraging culturally relevant content, building a community of content creators, and building a shared brand experience. Integrating the ECHO activity system with CBC’s current activity system will leverage CBC’s current capabilities; in particular, those of developing and maintaining in-house journalistic talent and independent Canadian producers will be both leveraged and grown through the ECHO platform. These integrated activity systems are synergistically-linked and will drive new value for the CBC, Millennials, and other stakeholders. The ECHO activity system mobilizes the CBC into a new, bright, and sustainable path for the Millennial generation and beyond.
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Existing Revenue Generation Future Sources of Revenue
Advertising (18%)
Government funding (64%)
Services, syndication, other
revenue: 18%
Consumer behavioural pattern
data analysis
New sources of advertising on ECHO
platform
User system fees/ CBC’s share of “rate &
donate” model
Remapping CBC’s Value Exchange Model
High risk model: CBC government dependency
Few opportunities for content creatorsDisengaged Millennials
Multi-faceted model: Diversified and stronger CBCNew creator opportunities
Engaged Millennials6
The Last Ocean501,243 AMPS
The Millennials411,546 AMPS
DONATIONS
☆☆☆☆ ☆ 4.0
3,514,245 views
$2,536 raised
364,253 shares
301,243 AMPS
THE LAST OCEAN Contributor: John RoeCreated: 21/05/2013
How much would you like to donate?
$10 $20 $50
What % should go to the content creator?
HOME
VIDEO
TOPICS
NEWS
Get AMP’D
Get MIC’D
HOME
VIDEO
TOPICS
NEWS
Value Exchange Example: Rate & Donate
25% 50% 75%
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Hypothesis: With the right incentives, content creators will produce meaningful content that is of interest to Canadians
Experiment: Create a contest with incentives (monetary and promotional) hosted on CBC.com or YouTube.com
Measurement: Use the following metrics to evaluate the hypothesis:
• Number of submissions• Quality & relevance of
submissions• Number of views • Number of votes
EXPERIMENT
What is the quick win: If the hypothesis is validated, CBC can continue to run contests on CBC.com or YouTube.com to generate a base of Millennial content creators and content viewers
Why is it a quick win:
1. CBC can use these existing platforms at little or no cost
2. Faster execution than building a new website
3. Can continue to run experiments before launching official site
4. Can generate a user base
QUICK WIN
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ECHO Hubs
Creating an engaging
experience for Millennials
Building a shared, unique
brand experience
Building a community of
content creators
Encouraging culturally relevant content
ECHOAn online platform
WEBSITE & PORTABLE DEVICES
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Integrating with social media
Providing mentorship from experts
Organizing expert classes
Staging an annual content creation
challenge
Appealing to the spirit of nationalism relevant
cultural topics
Cross promotion with CBC platforms
Using data analytics to quantify the voice of
Canada
Gamifying the experience of content
creation
Providing the option of customization
Crowd funding the process of creation
ECHO Activity System
Collaboration with Millennial brands
WEBSITE
PORTABLE DEVCIES
Organically growing the ECHO Brand via
users
Piloting shows or other broadcasts for
feedback
Creating an engaging
experience for Millennials
Building a shared, unique
brand experience
Building a community of
content creators
Encouraging culturally relevant content
ECHOAn online platform
WEBSITE & PORTABLE DEVICES
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listen. share. be heard.
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Appendices
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Social:The CBC has a long history of association with Baby Boomers and hence a strong societal impact but is currently not catering to the needs of Millennials.
Technology:Across economies, the behavior patterns of Millennials are partially unidentified. There is an increase in investment being made in data analytics to identify the drivers of Millennial consumption of entertainment.
Economic:20% of the Canadian demographic is Millennial. There is a great need for identifying and monetizing the untapped economic value they can provide.
Environment:There is a general increase in Millennial’s awareness of and concern about environmental issues.
Political:CBC aims to reduce the current government funding level of 64%. They are aiming to establish a new essence of Canadian content on a world scale.
Key Trends (S.T.E.E.P.)
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Website
Services/Other Revenue
Government Funding (CBC)
International Syndication
News Content Inside
TV
Radio 2
Radio 1
Advertising Revenue
Regional Centres
Media Ecosystem
Content
In-house Journalistic
Talent
Value
Independent Canadian Producers
Integrating with social media
Using data analytics to quantify the voice of
Canada
Gamifying the exp. of content creation
Providing the option of customization
Appealing to the spirit of nationalism/ hot
topicsCrowd funding the process of creation
Piloting the broadcast for
feedback
Providing mentorship from experts
Organizing expert classes
Staging an annual content creation
challenge
Cross promotion with CBC platforms
Collaboration with millennial brands
ECHO Brand
Building a shared,
unique brand experience
Building a community of content creators Encouraging
culturally relevant content
Creating an engaging
experience for Millennials
ECHO
ECHO/CBC Integrated Activity System
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