The Cultural Value Chain – a horizontal model?
After taking a glance at facts and figures of the Creative Indutries, we discussed the cultural value chain in our last lecture.
The value chain concept was introduced by Michael E. Porter:
“The value chain disaggregates a firm into its strategically relevant activities in order to understand the behavior of cots and the existing and potential sources of differentiation.” (Michael E. Porter: Competitive Advantage: Creating and Sustaining Superior Performance)
Porter’s value chain focuses on activities within a company. You can read more about Porter’s value chain model here.
When we discuss the cultural value chain we are talking about a value chain that is not necessarily focusing on activities within a company, but within the whole branch (see: “How does the Cultural Value Chain look like?”).
At first, the cultural value chain seems to be a horizontal model that is valid for every branch of the Creative Industries. But if we take a closer look on the processes happening in the different sectors, one thing is certain: There are lots of “vertical” connections between the value chains of the different branches, cross-sectoral implications are always present.
Making a movie without music is unthinkable, selling books or music without advertising is almost impossible, games need music, movie productions need software, a filmset requires not only a coulisse (and therefore architectural knowledge) but also choreographers, make-up artists, and so on.
Thus, every branch of the Creative Industries is connected to the other ones and would not be able to work without their input. Collaboration and convergence during the „value chain process“ are characteristic for the Creative Industries. These “vertical” connections between different cultural value chains could lead to the draft of a new model:
“The creation of value in cultural industries takes place in networks…” (Enquete-Kommission: "Kultur in Deutschland", Schlussbericht 2007)