Value Creation & Management
Salon Films
CONTEXT
Salon Films is one of the tops and first HK based production houses that focus on film production, they had taken their game up to the international stage. However, the glory days had passed and they are currently facing the ever-challenging situation.
Video content is now ever in demand due to online sharing platforms & social media, this changed the norm of production industry as well as the channels it was distributed. The high demand for small/mid-quality niche contents that react & relate closely to the consumers’ life, however, none of these uprising trends demand Salon Film's service.
BUSINESS REVIEW
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 for more and bigger fish.
Since the film industry is shifted to mainland China, it is important to develop the mainland market for Salon Film to stay on top of the game. It can bring back more value to the main Salon Film Hong Kong.
3. 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.
4. Strengthen the human resource network with a selective pool of freelance talents.
Manpower is the key engine for the video production business. To be efficient with the cost to run the business, it is important to keep the core team small and utilize the freelancers. To create a better active network of the talents will generate a good trunk flow of value for the whole business ecosystem.
5. Create value from Salon Film’s the brunch Salon Media Lab (SML) to make healthy business.
Develop SML’s business model to make it into a self-sustainable business. 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 videos with a new media focus.
ANALYSIS
Salon Film Workflow & Ecosystem
Current Salon film focuses mainly on the execution aspect of the industry, a workflow that is single streamed but with no strong participation in other areas. It really limits Salon Films opportunities by drawing resources out with a diminishing return in the long run, where the spread of knowledge via ideation and distribution will have an increase of return.
New Collaborative Ecosystem
The current industry had evolved into a system that is multi-directional and collaborative. It is a combination of resource-based flow and ideation and knowledge-based flow. The free movement of knowledge and resources in a circular form leads to larger returns in this collaborative, experience economy.
Rivalrous / Excludable Matrix
Rivalrous
Once consumed by one person (client), it cannot be consumed by another.
Non-rivalrous
Can be used/consumed by many people.
Excludable (Private)
a good that can only be consumed upon payment.
Non-excludable (Public)
any good that does not have to be paid for. (by Taxes)
Salon films could develop more service-based products such as education, collaborations & even remodel the payment method for the current rental & maintenance services to fully utilise their resources.
EVALUATION & SUGGESTIONS
During the analysis, we were able to identify the problem from the current value flow map and missing linkage from different parties complete the new ecosystem that Salon Film is currently breaking out from. Understanding that the video production industries were the integration of Creativity, Technology & People, instead of video as the end result by itself.
A new platform will be created via affiliate company - Salon Media Lab (SML) as a bridge to connect the current business to the new context. The SML knowledge platform shall not be limited by the physical space but integrated with the virtual world. All these aspects together with mutual benefits & values exchange for all related parties would allow Salon Films to have a more sustainable business model, adaptive to future change & the possibility to revive HK production industry in a new innovative way.
KEVIN H.Y. LAM | Copyright 2020 | All Rights Reserved