17 Transactional business concepting

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    After creating its own Mesh in the form of an international fan base, the Royal Concertgebouw Orchestra in Amsterdam started to combine engagement with development of an additional money stream: the RCO Editions, a video magazine. As one can read on the website:

    “With its RCO Editions the Royal Concertgebouw Orchestra is responding to current listening habits and using the capabilities of modern technology. If you only want to listen to music, you have access to RCO Radio with the free app. In addition, through the 360° video perspective the RCO Editions offer a total musical experience, a grab bag of interdisciplinary ideas. With second screen and parallax scrolling it is possible to alternate between levels in the app without interrupting the concert experience. Your television set at home becomes the stage for the orchestra with Apple TV, and the iPad can be used as a second screen for all the extras.”

    Looking back at the industrial era, doing transactions was the main purpose of the organization. It performed better in some particular transactions than others. Whole organizations, as we saw, had been organized around these dealings. A proper producer, achieving transactions (where money was exchanged for goods or services), had a competitive advantage. Not only in relation to the competition, but also to its clients. The end user could not make the product or service themselves, at least not in that level of quality/performance or for that price. Life was simpler then.

    Today, we have seen many organizations lose their right for existence. In the previous part of this book, I demonstrated that communication with stakeholders has become a different ball game. After getting in touch with them, you have to engage them further in order to find out what each individual potential client really wants. A product or service has to offer more, even more than an experience, and has to achieve a transformation of the client by using the product or service.

    Transactional business concepting is about your business model. This is a model where social capital and monetary capital maintain a healthy balance. One is strengthening the other, making your business model sustainable. Also some more traditional elements are part of the transactional concept too, especially if you have a larger number of stakeholders. You still need something like what we used to call a CRM system, but not only for clients. It is for all stakeholders, where you keep track of all transactions and the associated operational processes. On top of that, you need knowledge and experience of how to deal with the variable number of networks you are active in. Organizations may, in the future, be simultaneously involved in thousands of value creation networks such as pop-up project teams or Social Economic Entities,.

    So, the unilateral focus on the business transaction from the past is simply not good enough anymore. I will limit myself in this chapter just to give you some inspirational examples of organizations creating value in a different way than we were used to. Then it is up to you: you will have to find your own solutions how to interact, engage, and co-create value with your stakeholders. You will have to see your own future. Yesterday’s knowledge and insights are no longer sufficient.