Unpacking Radical Economic
Transformation in the Arts,
Culture and Heritage Sectors
FOUNDATION OF
DAC PROGRAMMES
National Development
Plan
1. Inclusive social and
economic
development
2. Sustainable
investment and
growth
3. Decent jobs and
sustainable
livelihoods
5
4. A capable
developmental
state
5. Expanding
opportunities
MTSF 2014 - 2019
Outcome 14
Nation Building and Social
Cohesion
REALITY Point
8
It’s ugly out there…
9
Economy under pressure
(Image: Shutterstock)
ECONOMIC BALANCE?
11
Artists Pains
1. Access to
funding 2. No access to Information
4. Corruption, bribery & nepotism 3. Lack of business
skills
5. No access to tools of
production 13
Result
14
Full Potential
Private Sector
But difficult to get in!!!!
Point
What is the DAC response going to be?
19
PHAKISA Programme
Clear Direction?
MONEY is not the main problem
Value for Money?
Are We Just
Paper Pushers?
Internal entanglements ?
Driving Derailment!
Point
CRITICAL SOLUTION?
31
32
Opportunity Seekers Opportunity Providers
33
RADICAL ECONOMIC TRANSFORMATION
Point
So
cia
l a
nd
Ec
on
om
ic
Ad
vo
ca
tes
are
Ne
ed
ed
35
Provide Tools of Production
Weak
Bridges
From…
37
Built
with
suspect
Ropes 38
To...
39
1) Mzansi Golden Economy
Cultural Ecosystem
Entrepreneurs Risk Capital
Nation Building &
Social Cohesion Profit
Motivation
24/7 Utilities Predictable
Economic System
Infrastructure Stable
Legal System Universities
Risk Taking Culture Accelerators,
Incubators
Creative Art
Academies
Free flow of
People/Info
Customer & Audience
Development Management
Tools
Agile
Development
Business Model
Design
Investment
Approach…
42
(VC)3 Model
43
Value Creation
(VC)3 = Value Capture
Value Circulation
44
Market size
R ??? million total spent by whole of Government
on Arts, Culture and Heritage goods
and services
R2 billion
Assuming that the total measured
procurement spend on ACH
R2 billion
R??? SMMES
R ???
Black owned Companies & BWOC
R ??
Established Companies & NGO
R ???
Others???
Disruptive Innovations: A driver of leadership failure
and the source of new growth opportunities
Pe
rfo
rma
nce
Time
Disruptive
innovations
Incumbents nearly always
win
Entrants nearly always win
Copyright Clayton M. Christensen
• Information
• Training
• Experience
• Networks
• Information
• Credibility & Visibility
• Workspace
• Information
• Markets
• Finance
• Partners
New Approach
50
Artist Development
Technical
Readiness Level
Problem/Solution
Basic Registrations
and compliance
Product/Market Fit
Validate
Revenue Streams
Validate
Resources and
Costs
Metrics that Matter
Investment
Readiness Level
Musical Literacy
Sound
Development
Genre Exploration
Audience
Identification
Musical Leadership
Growing Audiences
Master
(Antifragile)
Professional
(Robust)
Apprentice
(Fragile)
Market Development
Mzansi Golden Market
Scarcity
Abundance
Scarcity Abundance
Scarcity Abundance
Audience Development
Management System
Engagement in Activities
Information
Sharing
Training Needs
(Art
Appreciation)
Ecosystem
Membership
Using Mobile Technology
(Cultural Observatory)
65
Tax Incentives
Cash Flows critical
Creative Arts Incubators
Incubator Coverage
70
MGE Venture Capital
Fund
Artist Journey
Entrepreneurial Journey
2. DAC Entities
Business Model Innovation
3. AFRICA Month
Key Sectors 1st Week 2nd Week 3rd Week 4th Week Bonus
PERFORMING ARTS (FILM,
MUSIC, THEATRE, DANCE)
FASHION
DIALOGUES
CULINARY
HERITAGE
BUSINESS CONFERENCES
Genre Focus
4. Liberation
Heritage Route
LIBERATION
HERITAGE
ROUTE
5. Unite 2.0
Clubs in schools
6. Use of Official
Languages Act
implementation
7. Libraries
.
to
MINDSET
Keep
going
back
to
first
principles
Why?
Why?
Why? Why?
Why?
Why?
Why?
Why?
Why?
Why?
(Image: Shutterstock)
BIG Problems
=
BIG Opportunities
Pick the
RIGHT
FIGHT
don’t re-invent the wheel
think outside-of-the box
Reality Check…
93
Facing a mammoth Challenge...
94
Out of our DEPTH?
95
No man is an ISLAND
COLLABORATIVE APPROACH
Measure the quality of
current and potential
programmes
Success measures
Opportunities generated
Social
Cohesion
Impact
Value for
Money
Lean
Processes
Internally in DAC
Success measures
Meaningful Opportunities
“Feel Good”
Factor
Financing
provided or
leveraged
Cultural
Entrepreneurs
Impacted
Stakeholders
Short -term ROI R1 R3
Medium-term ROI
????? R1
Social & Financial Return On Investment
SIYABONGA!