Infomation analysis

© HEC Montréal 2012 All rights reserved for all countries. Any translation or alteration in any form whatsoever is prohibited. The International Journal of Case Studies in Management is published on-line (www.hec.ca/revuedecas/en), ISSN 1911-2599. This case is intended to be used as the framework for an educational discussion and does not imply any judgement on the administrative situation presented. Deposited under number 9 65 2012 005 with the HEC Montréal Case Centre, 3000, chemin de la Côte-Sainte-Catherine, Montréal (Québec) Canada H3T 2A7.

Volume 10

Issue 4 December 2012

Information Technology at Cirque du Soleil: Looking Back, Moving Forward Case prepared by Professors Suzanne RIVARD,1 Alain PINSONNEAULT2 and Anne-Marie CROTEAU3

If you only knew how many times I’ve been asked what on earth an IT specialist does at Cirque du Soleil? “Oh, come on,” people say, “You don’t need that. You’re a circus.”

– Danielle Savoie4 Danielle Savoie, Vice-President of Information Technology and Knowledge Management at Cirque du Soleil, has heard this comment not only from people unfamiliar with the activities of Cirque du Soleil, but also from Cirque employees. Cirque du Soleil’s international headquarters are in Montreal. It was founded in 1984 by a group of public entertainers, led by Daniel Gauthier and Guy Laliberté, who wanted to reinvent the concept of the circus, which had barely evolved since the 1800s. Audiences and critics were won over by Cirque du Soleil’s very first show, which was dramatically different from the traditional circus: it featured spectacular costumes, modern original music, dramatic theatrical elements and no animals. Cirque du Soleil grew very rapidly. After touring within Quebec and Canada in the first few years following its creation, Cirque performed in California in 1987, in Europe in 1990 and in Japan in 1992. In 2000, when Danielle Savoie became vice-president, the organization employed close to 2,000 people. At the time, Cirque had three permanent shows: Mystère, which had been presented at Treasure Island in Las Vegas since 1993, Ô, presented at the Bellagio in Las Vegas since October 1998, and La Nouba, presented at Walt Disney World Resort since December 1998. Cirque du Soleil also had five tours on the road, which moved every two months. An office in charge of managing the fixed Las Vegas and Orlando shows was established in Las Vegas, and three regional offices – Montreal, Amsterdam and Singapore – supervised the road shows. 1 Suzanne Rivard is holder of the Chair in Strategic Management of Information Technology at HEC Montréal. 2 Alain Pinsonneault is the Imasco Chair of Information Systems and James McGill Professor in the Desautels Faculty of

Management at McGill University, Montreal, QC, Canada. 3 Anne-Marie Croteau is a Professor in the Department of Decision Sciences and MIS at the John Molson School of Business at

Concordia University, Montreal, QC, Canada. 4 All quotes from Danielle Savoie are from a keynote address given at the International Conference on Information Systems in

Montreal on December 10, 2007.

HEC039

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Upon Danielle Savoie’s arrival at Cirque du Soleil in April 2000, some members of the staff and even managers were wondering what sort of role information technology (IT) could play in an organization where creativity, imagination and inspiration were paramount. Some even considered IT useless and too expensive. Danielle Savoie’s first mandate was to find effective ways for IT to support the substantial growth planned by Cirque. To achieve this, she had to convince the top management team that IT could be more than just a cost centre. Eight years later, Danielle Savoie was pleased with what had been accomplished. Indeed, by early 2008, Cirque du Soleil was presenting five touring shows under the big top, seven resident shows in North America and two arena shows, giving a total of over 5,000 performances a year in more than 40 cities around the globe, and IT was playing a critical role in the organization in more ways than one. For instance, for each of the touring shows, a touring IT team supported an average of 45 IP phones, six servers, three routers, dozens of Ethernet connectors and at least half a kilometer of optic fiber, with a minimum of 175 other devices hooked up to it. They had to maintain service at the site, keep the bank of 75 computers in good running order and provide the various users with all the support they needed. Yet, the touring IT experts were not on their own; they stayed in close contact with each other and with the IT teams in Montreal, Las Vegas, Amsterdam and Melbourne and, in the near future, Macau. In fact, the links were so tight that they could all work together if a major problem arose. Cirque had nearly 200 servers and total storage capacity of several terabytes. Employees had worldwide access to over 175 applications, mainly hosted in Montreal, and the creative teams could draw on the wealth of Cirque Memory. As a keynote speaker at the International Conference on Information Systems in Montreal in December 2007, Danielle Savoie recounted the IT success story at Cirque du Soleil. She was thrilled by the great IT-enabled advancements that had been achieved in only eight years since her arrival, despite initial doubts about what IT could do in an environment where creativity played a key role. She told the story of a Brazilian athlete from a modest family background who quickly became a rising star at Cirque, and who was supported each step of the way by Cirque’s IT-enabled processes. Before Danielle Savoie started her presentation, the audience was eager to discover how IT contributed to a creative enterprise such as Cirque du Soleil. Later, as the audience was captivated by this success story, other questions surfaced in everyone’s mind: “How did they achieve this? What issues and challenges did they face along the way?”

Information Technology at the Heart of Cirque du Soleil

Rather than simply automating existing processes, the role of IT during Danielle Savoie’s tenure was to support knowledge management at Cirque in order to capture, leverage, and transfer knowledge across processes and across projects. In her speech, Danielle Savoie described the role of IT as follows:

I suppose it’s the popular view that a show is an ephemeral event, but we’re unique in that all of our shows and events are inherently high-tech, nomadic, and long-lived, a unique combination that sets Cirque du Soleil apart. Cirque’s shows have a lifespan of 15 years, so we had to find ways of preserving the knowledge involved, not only to enrich Cirque’s memory, but also to handle changes in the show and its personnel. Knowledge Management and IT thus end up being the keeper of an incredible amount of information gathered throughout the show creation process. […] Finding comparable applications in other organizations is virtually impossible, and nearly all of the

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applications to support creation at Cirque du Soleil have had to be specially designed and custom built to meet the various groups’ requirements. The same is true of our creative documentation, the Cirque Memory.

To help integrate all of the data from various activities, a key contribution of the Knowledge Management and IT group was the design, implementation, and ongoing improvement of Cirque Memory. Cirque Memory is a knowledge repository described as a comprehensive “bible” for the entire organization. Cirque Memory is accessible online in five different languages. It is custom developed and used to store all relevant information, from the creation stage up to the delivery of a show, including artists’ make-up and costumes, sets, and staging. It consists in a series of modules such as Open Eyes, a make-up application, a Costume Memory, Kin-Cirque, MediCirque, Virtual Tour Scout, an electronic document management system, etc. To understand the scope of Cirque Memory, consider that for a show like Kooza alone, there is an inventory of over 75,000 documents stored in Cirque Memory. While the Memory is used for all processes at Cirque (e.g., it can be used to save and reuse the images, videos, sketches and notes that served as sources of creative inspiration in the creation phase), it is especially relevant in the design stage, since all of the design activities draw heavily on the information stored in this central repository. In Danielle Savoie’s opinion, “It goes without saying that carefully storing these creative components is critical, since they constitute a corporate asset that helps us grow and preserve our heritage. At Cirque du Soleil, keeping a record of our creative work allows us to ensure a long life for our shows and for our many sources of creative influence.”

Figure 1. Cirque Memory

The Cirque Memory database includes photos and detailed instructions on make-up applications. It also features over 5,000 costume designs and 4,000 alteration notes. Overall, it helps ensure that the quality of each show is consistent despite unforeseen events and replacements.

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Yet Cirque Memory is much more than a repository; it was created to guide artists at every step on their path, from submitting their resume to stepping on stage. It has assembled unique and key applications developed over the years by the IT team. Danielle Savoie commented that Cirque Memory has changed, facilitated, and tangibly affected the work of everyone in the creation division, from the designers, directors of creation and performers to the artists who work backstage: the artisans.

Tour Life Cycle

At Cirque du Soleil, IT supports the entire process value chain, from show creation to production and diffusion. Figure 2 depicts the life cycle of a touring show, highlighting Cirque’s key business processes; each process is described and the role of IT is delineated. Although many of Cirque’s processes are knowledge-based, ill-structured, and heavily dependent on creativity, IT was implemented to enhance the efficiency and/or effectiveness of each of the underlying processes.

Figure 2. Touring Show Life Cycle Creation

The creation process involves all aspects of show creation, such as scenography, choreography, and music composition, as well as the creation of a central theme and a storyboard for each show. Although this is the most creative part of Cirque’s processes, IT is still used in an effective way to nurture and enhance the process. In particular, Cirque Memory records such valuable information as the intentions behind the work, comments from the creative guide, the director’s kick-off information, the storyboard, and character and costume descriptions, among other things.

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Most interestingly, Cirque’s Intranet allows 4,000 employees to access Planète Cirque from anywhere in the world. The Intranet also feeds into Cirque’s creativity watch, through the Open Eyes application, another component of Cirque Memory (Figure 3). As Savoie commented:

Imagine 4,000 pairs of eyes, 4,000 ways of looking at the world. Our employees are invited to share their discoveries under the heading ‘Open Eyes.’ Staying ahead of the latest artistic trends is vital for Cirque du Soleil, and what better way than to have 4,000 passionate, curious ‘circustors’ exploring new artistic horizons with their eyes wide open, surprising their co-workers. Be it in showbiz, the performing arts, design, food, music, interactive technology, architecture, or the visual arts, any unusual artistic experience, any one-of-a-kind artistic work can now be shared by all, reinforcing the Open Eyes message.

Figure 3. Open Eyes

These various applications were developed and supported by a creative, independent and flexible team of IT experts. Danielle Savoie defined the role of IT experts as comprising five main sub- roles:

Our team in Knowledge Management and Information Technology act as ‘liaison agents’ by establishing a knowledge network. Our technology watch activities make us ‘instigators,’ and we’re developing a taxonomy, which makes us researchers. We are also ‘integrators,’ by delivering business solutions. And our knowledge of business processes and change management roles make us ‘agents of transformation.’ Finally, we are ‘brokers,’ managing both information and our relationship with the outside suppliers who keep our daily operations running smoothly. To put it simply, we are partners for innovation and transformation in a rapidly growing organization.

Design

The design stage is the core technical process representing the “manufacturing” component at Cirque. It brings together diverse experts who make costumes, make-up, hats, wigs, and

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accessories, as well as manage lighting, sound engineering, technical engineering, and acrobatic equipment. These activities require significant detail and expertise in order to be performed effectively by Cirque’s staff. For instance, make-up sessions and costume fittings are all done internally. A typical costume fitting usually requires around 50 measurements taken at different points on each artist’s body. The initial production of costumes for the show Alegria alone required 10 rough drafts of each costume, 1,094 yards of braid, 1,586 yards of lace, 2,515 yards of silk jersey, 22 pounds of glitter, and 200 Santa Claus wigs redone to create the hair.1 To better manage costume-making activities, a costume application was developed in-house, using information from the various measurements to customize a costume pattern for each artist and store it in a database. This database contains over 6,000 patterns. According to Danielle Savoie, the main strength of the costume application is that it manages “all pattern inputs and outputs for pattern-making and costume construction, as well as notes on the specific modifications for each artist, be they changes in fabric, due to allergies, or costume alterations to make it easier to do a particular act.” The costume application is also linked to other applications for managing various aspects of the costume-making process, thus providing a consolidated view, from costume requirement planning to final show delivery. Previously, this consolidated view had not been possible, since the information was stored separately in different Excel files. Similarly, before the advent of IT, make-up was applied on the artists and recorded via 35mm photos that were kept in local files. Forms were used to depict the specific make-up products used, along with quantities and actual make-up recipes and procedures. This information was stored in large binders that make-up artists had to haul along on each tour. In addition to being cumbersome, this led to documents being lost as well as various inefficiencies due to the considerable amount of time spent retrieving information. All of this changed when the make-up application was developed at Cirque du Soleil (Figure 4). The application stores every detail of the make-up process in a central database. It allows make- up artists to easily access all information from the convenience of their laptop, while ensuring that no information is lost, as it was previously. The database even matches the products used to the skin attributes of each performing artist. Two views are featured in this application: a detailed view showing each step of the make-up process, and a consolidated view providing a visual memory of a particular artist’s make-up, with a full list of the products used. What’s more, the richness of the information in the application’s database, coupled with the application’s ease of use, even allows performing artists to do their own make-up. This has significantly enhanced the efficiency of the process and the staff’s productivity. Previously, this process took make-up artists a long time to perform, since on average they had to work on each artist for a full hour before each show.

1 http://entertainment.howstuffworks.com/cirque.htm/printable.

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Figure 4. Make-up Application

Another component of the design process enhanced by IT is the making of plaster heads. Plaster heads are used to facilitate the making of masks, wigs, and hats. Sometimes, three plaster heads are made for each artist, for a total of over 1,500 heads representing Cirque’s artists. Previously, information on the location of the heads was stored in the performing artist’s file, with the actual plaster heads located in the costume workshop. With IT, this information is now recorded in a database and linked to other applications, which greatly facilitates the task of locating and retrieving the plaster heads as required. Preparation

The preparation stage involves helping the artists prepare for a big show. It includes all aspects of performer training and rehearsals, with specific training courses specified for different acts. Artists have to follow special and rigorous physical fitness programs before they are deemed ready to perform in a show. To help support this task, the IT team developed an internal application that greatly enhances the artist’s training experience. The Kin-Cirque application (part of Cirque Memory) allows physical fitness specialists to closely monitor each artist’s optimal muscular development. This application has been integrated with other applications used by the production staff to ensure that the show equipment is tailored to the exact physical measurements and needs of the performing artists. Before this application was implemented, this type of close coordination was not possible.

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Figure 5. Kin-Cirque

Diffusion

The diffusion of Cirque shows is situated downstream in the value chain. This activity mainly involves ticket sales and the actual performances. As with the other processes, the introduction of IT had a significant impact, enhancing the customer’s experience. The IT team’s most critical contribution to this activity has been Cirque’s website, which is a constantly evolving global gateway to Cirque du Soleil. This site has had a tremendous impact on visitors and organizational members alike. It has also confirmed that many people are interested in Cirque du Soleil. Also, by providing a forum that places contests, special promotions, press galleries, multimedia experiences, as well as artist and employee recruitment within everyone’s reach, the website helps to extend the playful Cirque experience. The number of visitors to the site has been constantly growing, and membership in Cirque Club, a club that offers advance ticket sales and preferential access to a host of information, quickly outstripped the most optimistic predictions. By early 2008, Cirque Club had over 1.5 million members, and approximately 300,000 new members have signed on each year since its creation. Use of the Internet also prompted Cirque to review its marketing approach and its connections with fans and the press. Through Cirque’s website, fans can purchase tickets to the shows touring North America and Europe and enjoy a fresh, new experience in the process. In addition to presenting all the relevant information on a show, from ticket prices to directions on how to get to the site, the online box office allows visitors to watch videos of past performances, receive

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special offers and personalized email alerts and news, and examine views of available seating in a dynamic, three-dimensional environment.

Figure 6. Cirque’s Website

This website experience is interactive, easy to navigate and intuitive to use. It has elicited enthusiastic comments from visitors, who report that it has enhanced their overall experience as customers. The website was launched in 2006; two years later, more than 80% of Cirque tickets were being purchased online. Logistics

Logistical activities at Cirque involve tour planning and developing the show’s infrastructure. For example, the Travel Group in charge of handling all the logistics associated with receiving new artists from all over the world and facilitating the procedures for their arrival, such as plane tickets, visas, immigration papers, travel arrangements, work permits, accommodations, and even translation services, if necessary. Moreover, Cirque uses over 20,000 categories of equipment as part of its show infrastructure. Danielle Savoie gave the example of a touring show:

[…] when we raise our big top, in some field out in the middle of nowhere, what we’re actually building is a village, and it needs electricity, phones, water, offices, Internet and, of course, a computer network. A tour is a little village travelling from city to city; a village that is practically self-sufficient, with its own kitchen, its own workshop for maintenance and repairs, its box-office, its heating and air conditioning system. It’s a village of about 150 people, and it needs the very best technology to meet their needs, which range from basic bandwidth requirements, to ticket sales, payroll and phone systems. And this is a village that moves every six or seven weeks, which means the village has to be constantly torn down and set up again. Everything has to be precise and methodical. Every part, hose, wire, piece of rigging and bolt has its place to make everything

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supremely efficient. So, if you think assembling IKEA furniture is complicated, imagine what it’s like setting up and tearing down a big top that seats 2,500. Imagine the logistics when over 55 trailer- loads of equipment have to be hauled from place to place, and at each site, it all has to be in working order within 30 hours.

To manage this vast range of activities, a great deal of technical documentation was needed to process information on the show’s equipment and ensure compliance with international standards. To meet this need, the IT team developed an electronic document management system and powerful linguistic software to standardize and harmonize over 150,000 terms used to describe the myriad equipment used at Cirque, and they integrated it with other technical information in Cirque’s databases. The document management system is also used to adjust the show’s equipment to the particular physical measurements of each artist.

Figure 7. The Electronic Document Management System

Furthermore, Danielle Savoie made sure that all servers and computer workstations were standardized and fully integrated. The computer equipment used for tours was mounted on wheeled trunks called “IT roadcases” that were configured in such a way that servers do not need to be unpacked and reinstalled in each city on a tour. Rather, the roadcases transport the IT equipment from city to city and, upon arrival, only two cables need to be connected in order to start using the computers and phones. Finally, Cirque switched to using VoIP technology and replaced its copper cables with fiber-optic ones, which were much lighter and which supported both data and voice communication on a single cable. Together, this led to a 25% reduction in the time required to set up the touring infrastructure.1 1 http://www.cio.com/article/31474/Rapid_Deployment_IT_at_Cirque_du_Soleil?page=2.

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Performing resource management

The performing resource management activity supports other activities throughout Cirque’s entire value chain. This activity deals with all aspects of managing the various human resources needed to mount a performance, including casting (screening, auditioning, and evaluating), recruiting, production integration, performance supervision, and monitoring the artists’ health conditions. The performing resource management activities make extensive use of IT capabilities. The IT team developed an application that allows the casting department to simultaneously manage the artist bank, the projects each artist is involved in, and even all past, present and future auditions around the globe. Using this application, talent scouts are better able to manage all aspects of the casting process, and they can even watch videos submitted by applicants from all over the world to help them navigate through the recruitment process. What’s more, Cirque launched the Virtual Talent Scout in September 2007, making talent scouts much more productive and allowing them to meet the rising demand from artists who want to join. Rather than having scouts laboriously search the world for rare talents, Cirque uses the Virtual Talent Scout to allow the talent to come to it through an interactive web experience. Virtual Talent Scout is available in seven languages, and it has greatly expanded the pool of talent that Cirque can draw upon in the face of rising demand, artist injury, and turnover. In 2008, the casting department held records on over 35,000 registered artists. Applicants use the website to submit applications online based on their discipline of interest, attaching notes, photos, and videos that are then stored in Cirque’s database and linked to their profiles.

Figure 8. Virtual Talent Scout

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The program immediately analyzes the job applications received, tagging the most promising ones. It sends out emails to applicants who have requested additional information or in order to schedule an audition. An audition module then manages auditions worldwide, in countries such as Russia, the Netherlands, Bulgaria, Ukraine, France, England, Brazil, USA, and of course, Montreal, Canada, among others. Over 150 auditions are held each year. All the information recorded during the course of an audition is added to the database and linked to the artist’s profile. In short, the Virtual Talent Scout application significantly facilitates the discovery and recruitment of the most promising artists. The Director of Creation and Cirque’s talent scouts are able to scan the database and watch videos of artists who have successfully completed the audition process. The casting department application then suggests the best candidates for a job. This application is also able to immediately find replacement artists for acts in which a main artist had been injured. This activity requires coordination between the casting department application and another application, MediCirque. The MediCirque application – part of Cirque Memory – enables the entry and/or update of detailed information on artist injury incidents. It generates medical statistics on all artists and analyzes typical injuries for different acts. It even establishes recovery times and relapse rates, and it provides Cirque with an overview it can use to manage the risks of injury in its myriad acts. Prior to MediCirque, this information was recorded manually and kept in local files, which largely constrained access and managers’ ability to analyze this information in order to make better, less risky decisions. One clear advantage of MediCirque has been the capacity to quickly find replacements for injured artists. From its database of over 24,000 MediCirque files, the application immediately suggests replacement artists whose height and weight match those of the injured artists. In this way, Cirque du Soleil is able to avoid downtime, in addition to eliminating costly costume redesigns.1 Finally, the HR Intranet is an IT tool that has been extremely valuable for Cirque employees. Various HR policies are stored on the Intranet, such as the internal box office, employee agreements, the corporate organization chart, shipping requests, job opportunities, linguistic service requests, management calendars, time sheets, and so forth. The Intranet is also linked to other databases that are, in turn, linked to the profiles of staff members.

Looking Back, Moving Forward

During her eight year tenure as Vice-President of Information Technology and Knowledge Management at Cirque du Soleil, Danielle Savoie has been asked repeatedly how IT can contribute to an organization where creativity and imagination are “the name of the game!” In her opinion, although “IT is IT” no matter where you implement it, some applications fit an environment better than others. “In the artistic environment, implementing [an ERP] for a technical crew on a show, it’s not something easy in terms of culture fit. So, we have to deal with 1 http://entertainment.howstuffworks.com/cirque.htm/printable.

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that.” She deems that “taking care of the values of the people and of where they were in terms of maturity for implementing technologies” has been instrumental to the successful deployment of IT at Cirque du Soleil. This success, however, should not be taken for granted. The IT team is now faced with new questions such as: What’s next? Where do we go from here? and How can IT continue to add value at Cirque du Soleil? 2012-12-11

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