By Kelechi C Ofoleta
Executive Summary
This case analysis is on Cirque du Soleil case study from Danielle
Savoie’s point of view on the issue that she encountered as a Vice-President of
Information Technology and Knowledge
Management (KM) following her mandate to find effective ways for IT to support
the upcoming substantial growth planned by Cirque. It takes a pertinent look at
the organizational background, and the current and future direction of Cirque
du Soleil aimed at resolving the issues bordering the organization and recent
progress made in this regard. In addition, this report sized-up the key issues
and justifies why they are issues of great concern to the organization. The
justifications also, reflect on the organization’s insight into these issues.
Having sized up the issues and its characteristics this report performed
analytic thinking of the issues by looking at the causes and the effects on the
organization, including strengths, weaknesses, opportunities, and threats
(SWOT) analysis of the organization. It
recommends to the organization, practical approaches and feasible strategies
that have helped some successful organizations overcome similar issues and
point out the potential benefits that the organization might derive if they
choose to follow these recommendations. It advised that more research is
required by Cirque du Soleil towards finding how IT can continue to add value
to its business as it concludes.
Introduction
Cirque du Soleil is an artistic organization with its international
headquarters in Montreal. It was founded in 1984 by group of entertainers led
by Daniel Gauthier and Guy Laliberte whose intention was to reinvent the
concept of circus, which had barely evolved since 1800s. It recorded rapid
growth following its tours in Quebec and Canada in the first few years; Cirque
performed in California in 1987, in Europe in 1990 and in Japan in 1992. Prior
to 2000, when Danielle Savoie became Vice-President of Information Technology
and Knowledge Management (KM), the organization was employing close to 2000
people. At the time, Cirque had three permanent shows: Mystere, which had been
presented at Treasure Island in Las Vegas since 1993, 0 presented at the
Bellagio in Las Vegas since October 1998, and La Nouba presented at the Walt
Disney resort since December 1998. Cirque du Soleil also had five tours on the
road, which moved every two months. It has offices in command of managing the
fixed Las Vegas, and Orlando shows and has three regional offices in Montreal,
Amsterdam and Singapore - that supervises the road shows.
With the recorded success comes the issue of finding
effective ways to support the upcoming substantial growth planned by Cirque.
This task fell on Danielle Savoie, whose first mandate was on finding efficient
ways for IT to support the forthcoming ample growth planned by Cirque. Despite
people’s doubt on the role that information technology (IT) could play in an
organization where creativity, imagination and inspiration were paramount like
Cirque, she had to convince the top management team that IT is critical to the
success of the organization. Rather than simply automating existing processes,
Daniel Savoie used IT in supporting knowledge management (efficient handling of
information and resources) to transform Cirque by capturing, leveraging, and
transferring knowledge across processes and across projects. Presently, Cirque
du Soleil is looking forward to how IT can continue to add value to its
business.
Issue
size-up and justification
Lack of understanding the use and the
requirement of IT in entertainment industry constituted the issue of resistance
to IT-related change at Cirque. It was characterized by opposition by some
members of the staff and notwithstanding managers which were wondering about
the role that information technology (IT) could play in an organization where
creativity, imagination and inspiration were paramount. Some even considered IT
as useless and too expensive. This issue became prominent as soon as Danielle
Savoie became the VP IT and KM at Cirque. This issue is justifiable because
addressing it positively will secure the buy-in of the people, especially
stakeholders critical to the success of the change to support the strategic
direction of the company and bring about a source of competitive advantage at
Cirque in order to capture, leverage, and transfer knowledge across processes
and across projects.
Another
issue faced by Danielle Savoie at the Cirque is on how to integrate and
preserve data from various activities such as suppliers, applications, design
activities and so on, such as images, videos, sketches, notes and so forth for
reuse to inspire future creativity. The issue of data integration and
preservation span the entire design and creative activities at cirque,
especially costume-making process; make-up process and making of plaster heads.
Prior to Danielle Savoie
becoming the VP IT and KM at Cirque, the costume-making process information was
stored separately in different Excel files, making it laborious to manage all
input and output patterns easily. Consequently, information loss was difficult
to avoid despite the critical nature of this process to Cirque du Soleil since
it does not involve animals in its shows. The make-up process was affected by
this issue in that it was very cumbersome to manage because it was applied to
the artists and recorded via 35mm photos that were kept in local files. The
specific make-up products used along with quantities, actual make-up recipes
and procedures were recorded on a form stored in large binders that make-up
artists had to haul along on each tour. Similarly, making of plaster heads at
Cirque was also affected by this issue due to poor storage of information on
the location of the heads. Previously, information on the location of the heads
was stored in the performing artist's file, and the actual plaster heads were
set in the costume workshop which was inhibitive in locating and retrieving the
plaster heads as required. Mind you a total of over 1,500 heads represents
Cirque's artists.
Anyhow, all these poor processes of handling
information and knowledge from these various activities led to documents being
lost as well as diverse inefficiencies due to the considerable amount of time
spent retrieving information. Hence Danielle Savoie needs to find a solution to
integrate these data in order to preserve the information and knowledge
embedded in them. Finding a solution can positively support the strategic
direction of the company, bring about profitability, act as a source of
competitive advantage, raise the morale of the company's employees, increase
collaboration among different units and even enhance customer satisfaction at
Cirque.
Cirque du
Soleil’s business is meant to be an international business not just for the US
market only, hence there is the issue of how to provide a forum that places
contests, special promotions, press galleries, multimedia experiences, as well
as an artist and employee recruitment within everyone's reach. This is an
additional issue faced by Danielle Savoie. Of course, this is justifiable in
that having a centralized online presence where everyone can have access to
information on shows on offer, and dates will help attract more audiences than
not. Furthermore, the interaction between customers and the organization will
help the business to keep reviewing its marketing strategy and extending the
playful Cirque experience.
Another time critical
issue that faced Danielle Savoie was how to manage various equipment and
activities that are required to set up the touring show site within 30 hours.
This involves about 55 trailer-loads of equipment of over 20,000 categories as
part of show infrastructure. Transporting this alone is an arduous task talk of
the time tag that it must be set up within in order to allow for a successful
show. These activities also include managing the Travel Group, and all the
logistics associated with receiving new artists from all over the world and
facilitating the procedures for their arrival. These procedures may include
plane tickets, visas, immigration papers, travel arrangements, work permits,
accommodations, and even translation services, if required. With touring show
being a major part of the Cirque’s business process, there must be a workaround
for these vast ranges of activities as they support the touring show business
process of the organization.
Issue
analysis
One of the most salient issues in the case was
resistance to IT- related change caused by lack of understanding the use and the
requirement of using IT and KM in the entertainment industry like Cirque. Soon
after Danielle Savoie became the VP IT and KM at Cirque, this issue became
overt. The nature of the business of Cirque's show is an ephemeral event; that
is, it is existing or popular for just a short time with a lifespan of only 15
years. Knowledge of this fact gave rise to thoughts on how to preserve the
knowledge involved in handling changes in the show and its personnel and
further gave rise to the need to sustain and grow the earlier success recorded
at Cirque. This led to the organization to evaluate the importance of IT for a
company like Cirque and made a decision to hire Danielle Savoie's to find
effective ways for IT to support the upcoming substantial growth it planned.
Danielle’s attempt to get on with introducing IT and KM at Cirque met a stiff
opposition from the people in the organization. She was most affected by this
issue because she was forced to secure the buy-in of the people first.
Especially the stakeholders at the top management team had to be convinced that
IT could be more than just a cost centre by Daniellebefore she proceeded with
finding efficient ways for IT to support the upcoming substantial growth
planned by Cirque.
This issue
could have been mitigated or handle in many ways. Firstly, the organization
should have consulted with the people on the idea of using IT to support the
upcoming substantial planned growth, to secure the buy-in of many of the
stakeholders before proceeding to hire Danielle Savoie to implement the idea.
Alternatively, the organization should have made Danielle Savoie's initial task
to involve securing the buy-in of the people soon after she was hired before taking
her to start finding ways to use IT to support the forthcoming sizable growth
planned. I prefer the first solution as it would have made the transition very
easy for Danielle Savoieand would have prevented unnecessary tension caused by
this opposition issue.
Next
salient issuesfaced by Danielle Savoie at the Cirque is on how to integrate and
preserve data from various activities such as suppliers, applications, and
design activities and so on. This issue arosefrom poor data management due to recording
resources and processes at Cirque that stores data independent of applications
and systems making it difficult to be accessed efficiently and even lead to
loss of valuable information. Again, Danielle Savoie
was therelevant stakeholder to the
situation, and the Cirque staff will be affected by the decisions to be made.The solution to this particular issue is so
critical because if executed well will extend as a solution for other issues
with dirty data and loss of information that Cirque may experience.The
constraint this placed on Danielle Savoiewas that she had to understand the
best way to integrate and preserve data efficiently to support the
business.
As a solution, building a customized simple database enabled system could be
used with emphasis on ensuring that it is integrated with hardware/ all
software and running on a single platform so that every separate application
that interacts with this system has a way of integrating seamlessly with it.
This issue best suited IT solution given that it involves data integration and
preservation. Alternatively, acquiring or developing an Enterprise Resource
Planning (ERP) System to handle the data could be considered. For Cirque, I
will prefer the first option because the organization is quite unique that it
will benefit better from customised application than generic complex ERP.
Finding a suitable online platform presence for Cirque du Soleil’s
business that will link it to the worldwide audience is an issue that Danielle
Savoie must view as critical to the organization’s IT and KM business
sustainability strategy. This problem was caused by the fact that Cirque
business has not expanded around the whole world due to limited resources, but
there is the need to create the awareness of the innovative circus in order to
generate more revenue to sustain the organization. Another cause was that the show
involves touring around the world, hence there is the need to find a way to
tell people about it, sell tickets and other stuff to them via this online
media in preparation for the tour. These causes are mainly resources and related
processes. The issue affects Danielle Savoie the most given her job task at
Cirque. The constraint for Danielle Savoie is to work out online platform that
will serve this purpose more efficiently, and the opportunities are that the
world will interact with the business from this medium towards achieving the
strategic objective of the organization. The business will enjoy more publicity
and recognition than when its activities were only local inhibited by travel
cost, geographical location, international laws and so on.
The issue of managing the various activities involved to set up a
touring show is one more salient issue sized-up that will not be analysed due
to limited word count space.
S.W.O.T analysis
Strength, and Weakness, opportunity, and threat (SWOT)
analysis is specifically influential in demonstrating the idea that good
strategy indicates enduring a fit between the external situations an
organization confronts (opportunities and threats), and its own internal
features (strengths and weaknesses) (Hill & Westbrook, 1997). Strengths:
Cirque du Soleil’s is a big corporate image and is famous in the entertainment
industry with many years of experience in a circus show. It has an innovative concept to reinvent the
circus art removing the need for training animals because it has strong
creation and innovation concepts and is vertically integrated as it does its
design, logistics, staff recruitment and so on in-house. It has unique shows
that involve only adult live entertainment. Apart from this, it has
high-quality shows with original concept and has both permanent and touring
shows thus achieves production diversity. Weakness: Cirque du Soleil has poor
information and knowledge management. It currently has no permanent show
outside Las Vegas and Orlando, uses anonymous or disguised performers, and it
has no unique shows that involve only children’s live entertainment.
Opportunities: it can expand to new markets, merchandise, expand to more
audiences around the world, diversify themes, technology and market, establish
fixed shows in other continents, offer more affordable tickets, including children.
Threats: competition from the Pickle Family Circus, Big Apple Circus and so on
should be kept in check. There is the possibility of entry of the market by a
real competitor that will disrupt the Cirque business model. Poor resource
management can harm the growth of Cirque, including knowledge preservation and
transfer, competition from opera, dance, and circus shows should not be ignored
too.
Recommendations
v In the
case of IT- related change resistance that Danielle Savoie faced, she should
solve this problem by understanding the true nature of the resistance. Most of
the time employees’ resistance is usually to social change that is, the change
in their human relationships that generally accompanies technical change and
not in the technological change itself. This will help to resolve the issue
faster than second-guess the solution. People-related resistance is difficult
issue to manage, but once the cause is understood the solution becomes easy.
Quiz the opposition politely to get first-hand information on the cause of the
resistance, and act to resolve it.
v Danielle
Savoie should pay attention to data management and integration processes as
well as the resources at Cirque in order to reduce information loss and
increase collaboration, data retention and knowledge retention efficiency.
Deriving business value from information assets depends on the effective use of
data-management technologies and best practices. A key individual componentsto
pay attention include data integration, data quality, database management
systems, data warehousing and enterprise information management, especially
with regards to costume-making process, make-up process and making of plaster
heads.
v
Danielle Savoie should use the knowledge of web 2.0
to determine the web technology and type of online platform to support the
sales and information display and gathering that will support Cirque and ensure
that the database at the back-end of the platform is integrated to the custom
system recommended above. This will ensure that both online and offline
application have some form of a link for continuous information acquisition,
storage and so forth towards supporting the mobile nature of Cirque Business.
v
Although
the issue of managing various equipment and activities to get the touring show
set up was not analysed, it will be worth recommending that these times
critical activities that must be completed within 30 hours before the show
start to be built into bundles of related components. Even components that can be set up
permanently while still portable to be transported around the world should be
put together this way, though it may mean modifying the components for the
purpose. This will see to the separate components forming bundles being in
proximity to the technicians who set up the ‘tour village’, thus reducing the
time required to set up and dismantle the categories of equipment.
v Based on
SWOT analysis of Cirque, moving forward stronglyrequires that diversify its
product line to give customers a new experience with every show. As Cirque
expands its business globally, it must bear in mind that value system varies,
and as such it needs to investigate the values of the people that the touring
show it going to meet. Using the findings, they are now designing a show that
will be palatable to the values and culture of the people. This will mean that
the people will accept the show and even look forward to on coming shows than
when a generic show designed for another culture is offered to a different
culture.
Conclusions
Cirque du Soleil is an artistic
organization with its international headquarters in Montreal. It was founded in
1984 by group of entertainers led by Daniel Gauthier and Guy Laliberteaims to
reinvent the circus show, especially removing the use of trained animals in the
show. Cirque shows were successful, but it needed to use IT and KM to extend
the lifespan of its shows beyond projected 15 years. It invested heavily in IT
despite initial stiff opposition from some of the employees. Danielle Savoie’s technology and KM strategy have
significantly supported Cirque’s business growth, but the trend is slowing and
the organization needs to diversify to keep ahead of its competitors. Certainly, Cirque’s SWOT analysis shows that
it needs to do more, and the recommendations should be followed, and more
research is required by Cirque du Soleil towards finding how IT can continue to
add value to its business in the future.
Bibliography
Hill, T., &
Westbrook, R. (1997). Swot analysis: It's time for a product recall. Long range planning, 20, 46-52.
Rivard, S.,
Pinsonneault, A., & Croteau, A. (2011).Information
Technology at Cirque du Soleil: Looking Back, Moving Forward.Thirty Second International Conference on
Information Systems
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