Food Chain Theory February 2010 Revisited

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Food Chain Theory

Digital Bridges into a Physical World

The Value Chain, The Benefactors, The Pawns, and False Realities

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Food Chain Theory February 2010 Revisited

  1. 1. ‘ Digital Food Chain Theory’ Five Rules to Unlock the Digital World By: Lawrence Bergenfield February 2010 Revisited Digital Bridges into a Physical World Originally Authored Summer 2008
  2. 2. Rule #1- Pay Attention to the ‘Tranquil Obviousness’ Peter Drucker <ul><li>Digital Advertising Time & Resources are primarily focused on push (one-way communications) advertisements; </li></ul><ul><li>Fundamentally, monetization is derived via cost and or pay per clicks, conversions, impressions, time, & actions; </li></ul><ul><li>Clearly, physical world business operators can enable clear measurement of Digital Advertising monies at point of consumption/ point of purchase, that will establish a game-changing paradigm shift. </li></ul>Digital Green Services & Technology
  3. 3. Rule #2- Recognize the Substantive and Sustainable ‘Controlling Forces’ in the value chain <ul><li>Who has the greatest clout to impact the value chain? </li></ul><ul><li>Are eyeballs, click through rates and time spent more important than measureable outcomes/ purchases at the electronic point of sale? </li></ul><ul><li>Many of the largest physically located businesses operators (such as retailers) are also the largest buyers of there vendors products and services. </li></ul><ul><li>These same vendors also happen to have some of the largest global digital advertising budgets; </li></ul><ul><li>The future will illustrate that these types of physical world business operators will use their purchasing clout to exploit these very same digital advertising budgets; </li></ul><ul><li>The choice is clear: Digital Advertising Dollars captured/ measured at the point of outcome/ electronic point of sale OR continue with yesteryears push style advertisements via Google, Yahoo, or Bing? </li></ul>Digital Green Services & Technology
  4. 4. Rule # 3- Influence ‘The Pawn’s’ Next Move <ul><li>Digital Advertising Agencies may appear as the supporting actors to physical world business operators endeavor to optimize digital advertising monies; </li></ul><ul><li>However, traditional Digital Agency roles and responsibilities will be forced into managed service business models for survival. This may also include aggregation of technology solution providers; </li></ul><ul><li>The prospective strategic position these agencies may be capable in leveraging will be tactical and of enormous value to accelerating and extending broader consumer facing convergence solution adoption benefiting the physical world operator(s). </li></ul>Digital Green Services & Technology
  5. 5. Rule # 4- ‘Practicality’ in 360 degrees of the consumer <ul><li>Today, the world wide web still highly values search, click-through and conversion rates, along with email marketing, number of (unique) visitors/ traffic and time spent. </li></ul><ul><li>Physical Operators Deployment of Digital Solutions that will extend and enhance existing and or new loyalty features and functionalities that capture and connect individual and localized purchases with existing and future segmentation database will provide a greater benefit to all parties as coop dollars extend/ convert into digital dimensions. </li></ul>Digital Green Services & Technology
  6. 6. Rule # 5- ‘It’s a Journey’ evolution does create revolution <ul><li>Money, efficiencies, and a plethora of real-time, hyperlocalized personal content will pave the path in drive new and evolving technologies and tipping points such as: </li></ul><ul><ul><li>Moving Loyalty from Household to Individual Personalization </li></ul></ul><ul><ul><li>Mobile payments </li></ul></ul><ul><ul><li>Digital Signage </li></ul></ul><ul><ul><li>Convergence </li></ul></ul><ul><ul><li>Predictive Analytics </li></ul></ul>Digital Green Services & Technology
  7. 7. “Get your ducks in line…” Digital Green Services & Technology
  8. 8. <ul><li>Today, the consumer is the final arbiter and thus, today’s tipping point for whatever, whenever and however communication and or content is consumed. </li></ul><ul><li>The consumer is adopting new technology platforms at speeds that indicate that every 90 days represents a year compared to the last decade. </li></ul><ul><li>Therefore, marketing, advertising, and promotion can no longer be a passive one-way conversation. </li></ul><ul><li>Interactive digital-advertising will provide the consumer valuable, relevant, and hyper-localized content based on established preferences and future predictive analytics. </li></ul><ul><li>Ultimately, the entire value chain will be monetize these communications through decreasing customer acquisition costs, while increasing basket sizes, spends, & trip frequencies. However, the ability to capture incremental sales lifts will define the inflectionary growth point.’ </li></ul><ul><li> Lawrence Bergenfield </li></ul>Digital Green Services & Technology

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