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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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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.
©2005 SATAMA INTERACTIVE
Satama Interactive – Design and production of interactive services
Helsinki
Turku
Amsterdam
Stockholm
Düsseldorf /NeoMotion
Tampere
Stoneroos /Hilversum
FINNAIR CATERING
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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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
Source: Pelkonen & al., 2003
Each solution area requires different substance understanding
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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
Copyright Pelkonen, LTT-Research Ltd, 2003
PR-agency
Source: Pelkonen & al., 2003
In marcom: Digital media company needs to master its relationships with esp. ad agencies
©2005 SATAMA INTERACTIVE
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
Copyright Pelkonen, LTT-Research Ltd, 2003
Source: Pelkonen & al., 2003
In IT: Digital media company needs to master its relationships with esp. technology vendors
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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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.
©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
Putting a digital media project into scale: mega-projects vs. digital media production...
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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
People are the key resource in digital media production
Succesful companies can make different competencies to appreciate each other and work seamlessly together
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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!
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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.
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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!
©2005 SATAMA INTERACTIVE
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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©2005 SATAMA INTERACTIVE
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?
©2005 SATAMA INTERACTIVE
What role should the PM play in the production team?
GO PM GO!
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©2005 SATAMA INTERACTIVE
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
©2005 SATAMA INTERACTIVE
SUMMARY: How projects function in reality...
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©2005 SATAMA INTERACTIVE
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!
©2005 SATAMA INTERACTIVE
For more information
Project management is one the most establisheddisciplines within busines literature