What B2B Marketers Can Learn from Design-Driven Innovation

+What B2B Marketers Can LearnFrom Design-Driven InnovationThe Great Indian B2B Marketing Summit, Bangalore, December 3, 2010 Tim Leberecht

We are a global innovation firm.We help the world‘s leading companies create and bring to market meaningful products, services,and experiences. Our cross-disciplinary process reveals valuable consumer and market insights and delivers lasting, humanizing solutions across multiple technologies, platforms, and media. - 40 years‘ experience in developing breakthrough products and services - More than 3,000 products and services for more than 300 of the Fortune 500 companies - Won more than 100 industry awards (CES Innovation, IDEA, and others) - Our clients (in 2009) were: 50 of Millward Brown World‘s Top 100 Brands; 24 of BusinessWeek‘s Top 50 Innovative Companies; 16 of Fast Company‘s Top 50 Innovative Companies 2

Aricent co-creates the world‘s most innovativecommunications products and services 3

+ Innovation and Design Technology and Outsourcing + More than 40 years experience in designing + Deep communication domain expertise groundbreaking products and services for + Excellence in software engineering Fortune 500 companies + Global delivery combining local presence in + Widely recognized industry thought leader mature markets with low-cost regional delivery centers + Exec-level strategic consulting+ End-to-end, integrated service for creating leading-edge innovations and compelling user experiences – and bringing them successfully to market+ A partnership between two premier names in creating technology-rich innovative products and services+ Bringing together 550 strategists and designers with 9,000 software developers as one single team with a global delivery model

What we doWe help the world‘s leading companies create and bring to marketmeaningful products, services, and experiences.INSIGHT TECHNOLOGY INSPIRATION IMPACTWe discover market We leverage emerging We express opportunities in We create lasting brand equityopportunities through deep technologies to define new rich, visual form to inspire and business impact acrossinsight and intuition. product concepts and and motivate organizations. multiple organizations, systems, experiences. and technologies. +

“Because the purpose of business is tocreate a customer, the business enterprise has two—and only two—basic functions: marketing and innovation.‖ Peter Drucker +

INNOVATION TRIGGERSMargin Erosion ―We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.‖Internal Churn ―Our new ideas are stuck in the mud of internal planning and review cycles.‖Competition ―New competitors are moving into our space and we need to do something to defend our market position.‖Adjacent Markets ―We see opportunities in adjacent markets (new segments, geographies, etc.) but we don‘t know where and how to start.‖Mining IP ―We have so much IP but we cannot convert it into products that resonate with consumers.‖Time-to-Market ―Our linear product development process doesn‘t allow for nimbleness and trial and error.‖Customer Insight ―Our product ideas are driven by science and engineering but fail to recognize latent or unarticulated customer needs.‖Sustainability ―We got lucky once or twice. How do we repeat our market success year after year?‖ +

INNOVATION TRIGGERS Margin Erosion ―We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.‖ Margin Erosion ―We operate in a mature industry with a mature product portfolio and our margins are beginning to disappear.‖ Internal Churn Internal Churn ―Our new ideas are stuck in the mud of internal planning and review ―Our new ideas are stuck in the mud of internal planning and review cycles.‖ cycles.‖ Competition ―New competitors are moving into our space and we need to do Competition ―New competitors are moving into our space and we need to do something to defend our market position.‖ something to defend our market position.‖ Adjacent Markets ―We see opportunities in adjacent markets (new segments, geographies, etc.) but we don‘t know where and how to start.‖ Adjacent Markets ―We see opportunities in adjacent markets (new segments, geographies, etc.) but we don‘t know where and how to start.‖ Mining IP ―We have so much IP but we cannot convert it into products that resonate Mining IP ―We have so much IP but we cannot convert it into products that resonate with consumers.‖ with consumers.‖ Time-to-Market ―Our linear product development process doesn‘t allow for nimbleness and Time-to-Market ―Our linear product development process doesn‘t allow for nimbleness and trial and error.‖ trial and error.‖ Customer Insight ―Our product ideas are driven by science and engineering but fail to Customer Insight recognize latent or unarticulated customer and engineering but fail to ―Our product ideas are driven by science needs.‖ recognize latent or unarticulated customer needs.‖ Sustainability ―We got lucky once or twice. How do we repeat our market success year Sustainability ―We got lucky once or twice. How do we repeat our market success year after year?‖ after year?‖ +

The magical moment +

How do you find ways to create How do you really understand your new value? customers and what they desire?How do you bolster the efficiencyof your R&D investments? How do you generate unique ideas?How can you accelerate How do you gain insights intotime-to-market? trends that make an emerging market tick?How do you increase theprobability of a hit product? How do you conceptualize innovations that set the trends in theHow do you ensure design integrity? market, rather than follow them? …and many questions on the way there +

Marketing‘s Capabilities Brand & Communications Products & Solutions - High-level positioning & messaging - Market research - Corporate Communications - Customer research - Internal Communications - PricingFunct - Alumni relations - Product strategyions - Talent acquisition STRATEGY - Go-to-market BUs - Media relations - MRD - Analyst relations - Product roadmap - Investor relations - Web sites - Brand identity & brand management - Thought leadership - Customer communications - Strategic partnerships Sales Enablement Demand Generation - Training - Email campaigns - Tactical messaging - EventsSales - Sales kits Sales - CRM - Collateral - Lead automation - Trade shows - Telemarketing - Reporting - Media buys - Address lists TACTICS - Database management 11

Source: Forrester

Credit:http://13c4.wordpress.com/2007/02/24/50-reasons-not-to-change/

Innovation means doingOr he? what no one has done before. what no one else would dare doing. +

Design: - Understands and changes behaviors - Humanizes technology- Creates simple solutions to complex problems - Prototypes ideas - Changes the meaning of things +

1Understand your customers (through empathy) +

―B2B customers are consumers who havethe luxury of having a corporation pay forwhat they want to buy.‖ +

…but it is not dead…Nothing has changed +

…but it is not dead…Everything has changed! +

Customers are becoming more demanding and sophisticated about products and experiences

―In the old days, brands wanted everybody to pay attention to them. Now brands need to payattention to everybody else.‖ Umair Haque +

All products and services will be SOCIALWhere?Social networksWhat?Social contentHow?Social publishing Social searchSocial gaming Social shoppingWhat for?Social impact Social currency +

―Open it up and it will design itself.‖ Norman Lewis + 25

“If I had asked people whatthey wanted, they wouldhave said faster horses.”- Henry Ford

Design Research acknowledgesthat people are not masses ofstatistics and bullet points, andforms the foundation for ourprocess and insights.People are living, breathing, feeling, adaptable beings.We engage people so we can observe their behavior andallow them to meaningfully convey their motivations.

2Make data meaningful +

Social MeaningValue Innovation

―Create more value than you capture.‖Tim O‘Reilly +

Marketing with MeaningSMALL DRAMATIC SOCIAL CONVERSATIONAL PROVOCATIVE RESPONSIBLEMicro Making sense Connecting Listening Making you think Doing goodCustomizable Cohesion Community Empathy Disruption PoliticalRelevant Convergence Adaptive Divergence Socially responsible BelongingActionable Morale Changing messages Deconstruction Eco-friendlyEye-to-eye Consistency Identity Two-way Surprise EthicalDirect Imagination Like-minded Let go of control Shock Human rightsInstant Entertainment Affinity Open Unexpected ValuesAccessible Cultural relevance New people Respect Unlikely FamilySharable Characters Flow Challenging Nation StatusAtomized Suspense Topical status quo Common Good Compassion Unique Comedy Point-of-view Earth Tragedy Fun Attention-grabbing Identification Love Different Friendship In your face Hobbies Fans

PURPOSE [Aspiration] MEANING Internal OFFERING Externalbrandholders [Uniqueness, relevance, credibility] brandholders Real-time conversations Micro-content Open collaboration COMMUNITY [Sociality]

DATA is the bank…+

MEANING is the currency… +

―You are what you share.‖ - Charles Leadbeater +

―The first rule of the club:Don‘t talk about the club!‖ +

The conversationis the message. +

3 Make the product the story(make a product for the story) +

4Create a convergent experience +

Internet of Things +

M2M connectivity enables new business models 47

The value lies in the ecosystem

CUSTOMER JOURNEY +

Media Energy EntertainmentBanking Telco CONSUMER EXPERIENCE Auto Retail Wellness eCommerce

Mobile Social Personal BRAND EXPERIENCE Instant/Gaming Real-time Location- Augmented based

BUSINESS TECHNOLOGY Mobile Social Personal BRAND EXPERIENCE Instant/Gaming Real-time Location- Augmented based DESIGN

BUSINESS TECHNOLOGY Media Energy EntertainmentBanking Telco CONSUMER EXPERIENCE Auto Retail Wellness eCommerce DESIGN

And note: those hurdles are NOT the objective! Whatever is here, is what the user actually cares about, and considers ―mission accomplished‖!

Business Analyst Digital Media DesignerStrategist Anthropologist Artists Mechanical Engineer Software Developer Architects Ethnographer Industrial Designer Writer Cross-over thinking (and doing) +

How we do itDISCOVER DESIGN DELIVERRESEARCH BECOMES INSIGHT INSIGHTS BECOME IDEAS IDEAS BECOME REALITYThrough design research, market analysis, and We develop an informed design that will answer In order to guarantee the translation of idea tostrategic evaluations, we gain insight into a the challenge posed by the market that will be reality, all project details are specified,company‘s brand identity, user base, existing useful, usable, desirable and technically feasible. documented, and delivered to the client, andassets, and market opportunities. supplemented with full production support. +

5Fail fast +

―It‘s such a fine line between stupid and clever.‖ David St. Hubbins, lead singer of Spinal Tap

Making it: Seeking the conversation with the artifact +

Marketing Hardware Marketing SoftwareBrand architecture Live brandsMessages ConversationsSales brochures EndorsementsFeature lists ExpertiseDestination sites Distributed/social webTradeshows Mobile applicationsTrademarks GoodwillPull PushPackaging RevelationsOut-of-the-box InsightsStatus ExperiencePoint-of-sale Point-of-viewsClosed Open-sourceLook and feel InteractionDirect mailing ConnectionsBillboards/ads Customer servicePrint collateral Widgets………. ………. +

+ Transformats

6Simplify +

―Perfection is achieved, not when there isnothing more to add, but when there is nothing left to take away.‖ Antoine de Saint-Exupery +

The organization chart showing through inthe experience TEAM 5 TEAM 1 TEAM 4 TEAM 2 TEAM TEAM 3 6 +

Feature creep

Making yet another ‗better‘ mousetrap Feature fatigue Complexity in the value proposition Good enough for customers

Beating the tyranny of ‗good enough‘ It’s not about designing V-next; rethink the complete experience.

Good enough Excellent +

7Disrupt (don‘t interrupt)! +

Disrupt schemata+

Blend two concepts

We must differentiate ourselves! +

1 Understand your customers (through empathy)2 Make data meaningful3 Make the product the story (or make a product for the story)4 Create a convergent experience5 Fail fast6 Simplify7 Disrupt (don‘t interrupt)!

Strives to keep bad things Strives to make goodfrom happening things happen. +

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What B2B Marketers Can Learn from Design-Driven Innovation

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