Project Management in Digital Media Agency

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©2005 SATAMA INTERACTIVE

SATAMA INSIGHT

What do digital media companies expect from their project managers?

Tommi Pelkonen

Satama Interactive

Nov 10, 2005


Tommi Pelkonen, digital media professional

33 years, living in Amsterdam

M.Sc. (Econ.) 1999 at HSEDoctorate student, HSE (2001->)Researcher LTT-Research Ltd / Digital Media (1996-1999)

Satama Interactive/AmsterdamSenior consultant

Specialisation areasTelecommunicationsDigital mediaInternationalisationBusiness strategiesSME development

During 1996-2005 ~70 completed business, research and analysis projects both in professional career and academy

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Satama Interactive – Design and production of interactive services

Helsinki

Turku

Amsterdam

Stockholm

Düsseldorf /NeoMotion

Tampere

Stoneroos /Hilversum

We help our clients make better business online.

Satama employs ~320 professionals. • Our experts are specialized in business development, design, and technology.

• Our own operations are complemented by an effective international partner network.

• Satama’s client-specific teams delivered over 1.000 world-class projects in 23 countries last year.

Satama is a financially solid, growth-seeking company:

• Satama’s revenues in 2004 were EUR 23.6 million.

• Revenues increased by 10.5% compared with 2003.

• Net profit was EUR 1.5 million, which is 6.3% of revenues.

• At year-end, Satama’s equity-to-assets-ratio was 76.3% and liquid funds were EUR 8.4 million.


Satama Interactive – Design and production of interactive services

Helsinki

Turku

Amsterdam

Stockholm

Düsseldorf /NeoMotion

Tampere

Stoneroos /Hilversum

FINNAIR CATERING

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Satama’s clients demand global delivery capability

Satama delivers projects in 20+ countries annually. During the last 12 months Satama has delivered projects for example in:

Brazil Poland Singapore China

Germany Italy Spain

USA Malesia Thailand France


Satama means better business online

Understanding the users

Satama’s mission and core messages

Concrete results quickly by applying appropriate

skills and tools

Understandingthe customer

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SATAMA INSIGHT:What digital media companies expect from project managers?

Definitions

Professional production process

What do digital media companies expect from PM’s?

Conclusions and recommendations


DEFINITON 1/2:DIGITAL MEDIA: Three key business areas and underlying business models

Source: Pelkonen & al., 2003

Regardless of the domain, a project manager/ producer is required to deliver the requested outputs

Business area 1:Digital mediacontent creation

Business area 3:Software business

Business area 2: Digital media

service creation

Content creationcompanies

Software companies

Digital mediaprofessional

businessservice companies

Dominantbusiness model:Content IPRsEUR/production

Dominant business modelProfessional services(often project-basedEUR/hour or day)

Dominant business model:

Software procuction,sales and distribution

(EUR/licence + service fee)

Key business area and analysis subjectKey focus of this presentation

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Digital media industry activities

Marketing communications

Entertainment

Loyalty and community

Se lf-serv ice

Commerce

Learning

Exte rnal

Inte rnal

Corporate communications

Digital channel

Solu

tion

area

Content and access management systems

Technical integration to other systems

Adv

isor

y an

d co

nsul

ting

serv

ices

Technologysolutions

Onl

ine

med

ia(W

WW

, e-m

ail,

bann

er a

dver

tisin

g)

Mob

ile m

edia

(e.g

.. SM

S, W

AP, M

MS)

Dig

ital b

road

cast

ing

(dig

ital t

elev

isio

n, s

tream

ing

med

ia)

Dig

ital s

tora

ge m

edia

(e.g

. CD

-RO

M, D

VD, i

nsta

llatio

ns)

Terminal-re lated systems and software deve lopment

Digital mediasolutions

Copyright Pelkonen, LTT-Research Ltd, 2003


Each solution area requires different substance understanding


Digital media productions are created in a value-adding process: 1) content products and 2) service creation

Strategicplanning

Creativeplanning

Distri-bution

Implemen-tation

Efficient smallproduction house

Program managementand client responsibility

Specialist

subcontracting

subcontracting

Contentcreation

Contentaggregation

Contentdistribution

Contentmarketing

Consumption/Usage

1) CONTENT CREATION VALUE CHAIN

2) DIGITAL SERVICECREATIONVALUE CHAIN

For larger productions, multi-vendor management capabilities are called for

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Communications solution value-web

MediaagencyAdvertising

agencyTelev ision

PrintPrint house

Key question:What kind of messagereaches consumer thebest in the selected media-mixand within the media budget

Digital media serv ice companies

Strategicplanning

Creativeplanning

Distri-bution

Implemen-tation

Marketingcommunications

"Message"

Digital media role:Communications

channel

Selected role/objectivefor action

Ev entmarketing

Directmarketing

Outdoor

Digitalmarketing

Mediaagency

Radio

Designhouse

Reproductionhouse

AV-producer

Consumption/Usage

Actors throughout the value/service creation process

Objectivesetting

inter-action

one-way

Consutingcompany

Comm-muni-cationagengy

Comm-muni-cationagengy


PR-agency


In marcom: Digital media company needs to master its relationships with esp. ad agencies


Digital solution creation value-web

Strategicplanning

Creativeplanning

Distri-bution

Implemen-tation

Selected role/objectivefor action

Consumption/Usage

Actors throughout the value/service creation process

Objectivesetting

Technologyprov iderDesign

house

Key question:Where and how toserve the consumer/end-user the best?

Serviceprovision

"Dialogue"

Role 2:Servicechannel

Consultingcompany(Serv icestrategy)

Serv ice creation and implementationconsultants

Digital media serv ice company

Serv icelocation

ContactCenter

Digitalserv ice

Ad agency



In IT: Digital media company needs to master its relationships with esp. technology vendors

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What are the outcomes of digital media companies?

Multimedia

E-Commerce and Services supporting client loyalty

Custom mobile services for events

Internet pages, extra- and intranets

Digital marketing

Digital TV

e-learning

Mobile applications


We as consumers decide where, when, and with what device we use these services

At workIn social situations

On the goAt home

Internet

Mobile

Software

Digital TV

Mobile

Mobile

SoftwareInternet

Internet

Mobile

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DEFINITON 2/2:Project management

• Project management is the discipline of defining and achieving targets while optimizing the use of resources (time, money, people, space, etc). Thus, it could be classified into several models: time, cost, scope, and intangibles

• In contrast to on-going, functional work, a project is "a temporary endeavor undertaken to create a unique product, service, or result“.

• Projects are temporary because they have a definite beginning and a definite end.

• They are unique because the product or service they create is different in some distinguishing way from similar products or services.

Sources: Wikipedia, 2005 & A Guide to the Project Management Body of Knowledge PMBOK® Guide, Third Edition, Project Management Institute, 2004, p. 5

Project has clear start and an ending. It needs to managed by professional leader.


Project management is an very well established field of discpiline with strong professional guidelines

Project management literature is versatile and offers

massive amount applicable models to manage production

variables

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Project phases

1. project initiation (Kickoff)

2. project planning

3. project production or execution

4. project monitoring or controlling

5. project completion

Project management tries to gain controlover five key project variables:

• time

• cost

• quality

• scope

• risk


Putting a digital media project into scale: mega-projects vs. digital media production...

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SATAMA INSIGHT:

What digital media companies expect from project managers?

Definitions





Activities are based on five types of resources

Personnel Hardware Software Organisational Financial • Business • Technical • Design • Managerial • Other

• Office premises

• Production machinery

• Licences • Intellectual

property rights • Proprietary con-

tents • Production

process knowl-edge

• Knowledge about technol-ogy

• Knowledge about custom-ers

• Production soft-ware

• Strategies • Goals • Organisational

culture • Organisational

structures

• Finance for operations (e.g. R&D, commerciali-sation, inter-nationalisa-tion)

The key resource is the personnel!

Source: Pelkonen, 1999

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Combination of technology, business, management, communication, design creates digital media understanding

Source: adapted from Helomaa & Väänänen, 1999 pp. 40-54

Cognitive psychologyPedagogy

Ability to combine media elementsInteractivity understanding

Ability to create new business modelsAbility to measure new media impacts

Digital media understanding

Business expertise

EntrepreneurshipAccounting and finance MarketingInternationalisation

Technical expertise

Database designProgrammingIT system designIT system integration

Communications expertise

Digital graphics creationMultimedia

manuscriptingCommunications

process understanding

Managerial expertise

Competence managementProject management

Communication skillsGroup work skills

Key to success: to orchestrate different competencies


ProjectManagement

AccountManagement

E.G. Satama Interactive:Competencies working in harmony

CreativeDesign Technology

Consulting

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Working is a production team is constant interaction = meetings, knowledge sharing and co-ordination

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People are the key resource in digital media production

Succesful companies can make different competencies to appreciate each other and work seamlessly together


Development of our clients’ services requires expertise in business, design and technology

At the end of 2004, Satama employed 292 persons (316, Q3/06) in Finland and the Netherlands. Approx. 50% of employees have worked for Satama for over 4 years.

Female71%Male

Gender distribution

32%Technology

37%Business development

31%Creative design

8%Administration

92%Invoicing

Job description2%Temporary, part time

4%Temporary, full time

5%Permanent, part time

89%Permanent, full time

2004Nature of employment

29%

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Digital media production process in professional firms

Project planning

Conceptual planning

Technicalplanning

Graphicalplanning

Graphicalimplementation

Technical implementation

Testing

Strategic planningPiloting

Installation

Maintenance

Sales negotiations

Strategic planning Creative planning Implementation Delivery

Training

Further sales

Project management

Full deployment/roll-out

Account management

Release 1.0 scoping

Release 2.0scoping

Release 1.0 deployment

Release 2.0deployment

Release 1.1Adjustments

Digital solution development in releases

Digital solution development work-flow

time

time

Larger development programs consist of multiple project i.e.may demand a team of project managers to work together and deliver each their project


PROCESS IN PRACTISE:Production process is the digital media company backbone

Agreement on workflow, method and deliverables is propably the only way tostandardise quality of production within people-based business

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SATAMA INSIGHT:


Definitions





PM: the master of planning and control

PM needs to able to be the ultimate co-ordinator and planner for activitesand identify key dependencies of an activity to another

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Project managers in multiple roles

SHALL WE MAKETHE DEADLINE

OR NOT?I will ensure the

profitability of this project

PM needs to be a true multi-tasker.

Hey boys, let’s do this first and those things later.

Please let me know if something are not clear!


What do digital media companies expect their PM’s to do

Strategy & Project Management manage client relationships and get projects done on-time and in-budget. They help the client define business and communication goals. The people in this group are client managers, management consultants, and technical & commercial project managers. (Framfab, 2003)

Project managers are responsible for project management at Satama, which involves client project design, resourcing and follow-through. Their job is to keep projects moving according to schedule, while attending to budget and planning issues in cooperation with our client, other vendors and the project team. (Satama, 2005)

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What is requested from PM applicants? 1/2

Project Manager (position filled March, 2005)

Satama Interactive is looking for experienced, active Project Managers to work with either technology or marketing communication oriented projects.

The essential role of project manager is to take ownership of a client project and ensure that it is delivered according to requirements. You are responsible of planning and managing projects: project schedule, budget, quality, profitability and the end result are your driving forces. You work closely together with Satama’s client manager and with the clients and other vendors. At the same time, you have the opportunity to lead a team of skilled and motivated people with very different backgrounds.

To be a successful project manager you need to understand the whole project with its functions and techniques, and be capable of managing change and risks. That is why we are expecting previous work experience of either application development client projects OR marketing communications client projects from the vendor point of view. As a person you should be able to motivate project teams, delegate work, solve problems and give feedback. The work requires good presentation, communications and negotiation skills both in Finnish and in English.


What is requested from PM applicants? 2/2

Project Manager (position filled May, 2005)

Satama Interactive is looking for a MarCom Project Manager for challenging www and mobile projects.

The essential role of project manager is to take ownership of a client project and ensure that it is delivered according to requirements. You are responsible of planning and managing projects: project schedule, budget, quality, profitability and the end result are your driving forces. You work closely together with Satama’s client manager and with the clients and other vendors. At the same time, you have the opportunity to lead a team of skilled and motivated people with very different backgrounds.

To be a successful project manager you need to understand the whole project with its functions and techniques, and be capable of managing change and risks. That is why we are expecting previous work experience of international B to C marketing communication projects and experience of leading comprehensive service development projects.

As a person you should be able to motivate project teams, delegate work, solve problems and give feedback. The work requires good presentation, communications and negotiation skills both in Finnish and in English. Knowledge in Swedish would be a big plus!

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Professional organisation’s managerial challenges

High

Low

Low High

Professionalexpertise

Supportativepersonnel

Professionals Leaders

Administrativepersonnel

Managers

Organisatory expertise

continous conflict

continous conflict

Extreme situation: anarchy

Extreme situation: bureaucracy

PROJECT MANAGERS

Source: Kuokkanen, 2000

Winning professional companies make management of the continous conflict their asset!


Management as key challenge for digital media companies

STATEMENT: The key challenges in the digital media business relate to managerial models of the companies

1.3% 1/75 Totally agree

40.0% 30/75 Agree to some extent

25.3% 19/75 Do not agree or disagree

17.3% 13/75 Disagree to some extent

12.0% 9/75 Totally disagree

4.0% 3/75 Cannot say

Source: Pelkonen & al., 2003, sample 75 Finnish digital media companies

Project managers are the critical power to make the difference between one company to another

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Key challenge areas digital media productions

•Planning and follow-up

•Resource acquisition and allocation

•Managing client expectations

•Internal conflicts within teams

•Communication challenges inside and outside

•Quality ensurement

•Competence development

•Working with multiple partners and sub-contractors

•

•Keeping up with deadlines and budgets

•Legal and contractual issues

•Change management

•Claim management

•Closing of projects – approvals and milestones

Digital project management is no different from any other people-based project management.

Only the substance differs.HOW WILL I SURVIVE?


What role should the PM play in the production team?

GO PM GO!

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SATAMA INSIGHT:


Definitions





SUMMARY: How projects function in reality...

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Conclusions

Managing digital media productions do not differ radically from any other project management tasks

The better the project manager knows the substance, the easier it can be to manage professionals and the production process. Yet, PM should NOT be the substance problem solver, but rather the facilitator and co-ordinator for solving

Digital media PM should constantly focus on ensuring that the different experts in production teams are working:

1) on right tasks; 2) on time3) with best possible harmony and 4) towards common goals.

Key focus area for PMs: Making team members to trust each others, play

together and knowing how to get the best out of them in different

situations!


For more information

Project management is one the most establisheddisciplines within busines literature

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Satama -Better Business Online

Tommi [email protected]