Business Model Innovation at Frost Festival

Eva Mousten Frost

Student thesis: Master thesis

Abstract

This thesis aims at analyzing and discussing how business model innovation can be employed at the Copenhagen-based music festival FROST. The research is focusing on which potentials and barriers that are present towards creating a sustainable revenue model. The business model framework offers a body to analyse and depict boundary-spanning activities towards creating, as well as capturing, value. The model furthermore emphasizes a systemic view of the organization; not solely focusing on innovation within the individual parts. To discover how the efforts can reveal sources of monetization, four value-drivers is employed. However, a fifth value driver consisting of non-rational and aesthetic motivations arises during the research. It is argued that by applying a framework primarily explored within business cases with a utilitarian motivation, to a niche festival organization, a central issue displaying a classic encounter within the creative industries arises. This represents a barrier towards answering the question of delineating sources of revenue. In addressing the research problem, a qualitative method was applied. Two primary sources from the organization of FROST were engaged in semi-structured interviews. The data was supplemented by insights from the researcher, drawing on a six months internship leading up to the 2014 edition of the Festival. By using the collected data and the business model framework as a starting point, the method is utilizing an ability to move iteratively between theory and empirical data. This methodological approach is also defined as the middle-range paradigm, hence interchanging between an inductive and a deductive approach. The first part of the thesis comprises an exploration of the current business model of FROST, executed in order to create a solid scaffolding towards the locus of change. Secondly, the framework is used as a foundation for innovation, condensing nine building blocks into four basic design-elements, letting the innovation be either offer-driven, customer-drive, resource-driven or finance-driven. The four value-drivers are discussed within this structure, while the emergence of a fifth value-driver comprising a motivation of passion, distorts the process. Along the way exemplifications of the different innovative approaches towards creating and capturing value, are visualized in matrices. This is done to sustain comprehensability of the theoretical discussion, and also to give a view of the implications of interference with one element in the business model, thereby enforcing a holistic perspective.

EducationsMSocSc in Management of Creative Business Processes , (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2014
Number of pages77