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Business Strategy + Brand Strategy

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Jonathan Lee, Managing Director, Brand Strategy, and Ken Allard, Managing Director, Business Strategy at HUGE, gave this presentation at "Ambidexterity 2," the VCU Brandcenter's Executive Education program for account planning on June 24th at the VCU Brandcenter in Richmond, VA.

Published in: Marketing

Business Strategy + Brand Strategy

  1. 1. June 22, 2014 VCU 45 Main St #220 BKLN / 718 625 4843 / hugeinc.com
  2. 2. Business Strategy and Planning. June 19, 2014
  3. 3. Thank you.
  4. 4. Not So Much!
  5. 5. Everything becomes connected.
  6. 6. From our products.
  7. 7. To our cities.
  8. 8. Connected devices and identified objects provide smart context and opportunities for a value exchange.
  9. 9. Internet of Things Moore’s Law Big Data & Analytics Metcalfe’s Law Source: Morgan Stanley
  10. 10. Are the applications just gimmicks?
  11. 11. No bad eggs.
  12. 12. Or are there real benefits?
  13. 13. Helping us drive better.
  14. 14. Our existence is being quantified
  15. 15. Self-knowledge through self-tracking. Self Environment Food consumed, air quality, location States Mood, heart rate, arousal Actions Mental & physical performance; behavior, purchases Source: Wikipedia & Huge
  16. 16. Tracking all sorts of activities. Physical activity Sleep quality Caloric intake Posture Blood pressure Location Preferences Commerce Relationships Communications Intent
  17. 17. Seven out of ten adults track a health indicator. 60% of US adults say they track weight, diet or exercise. 33% track health indicators like blood pressure, blood sugar or sleep patterns. 12% track health indicators for a loved one.
  18. 18. Apple sells >20 self-tracking products.
  19. 19. Wearable technology tracks physical activity.
  20. 20. Diapers monitor functions…
  21. 21. We track our purchase history.
  22. 22. We track our relationships.
  23. 23. Where we have been.
  24. 24. What am I going to do?
  25. 25. In effect, people are digitizing themselves.
  26. 26. What does this mean for Planners and Strategists and the brands and businesses they work on?
  27. 27. 27 Whatdoesthismean... 1.Philosophy. 2.Process. 3.People
  28. 28. Philosophy What does mean …
  29. 29. Customers first.
  30. 30. Users first.
  31. 31. Brands are built on values, mission and beliefs.
  32. 32. Brands are built on values, mission, beliefs and capabilities.
  33. 33. Brands generate revenue by selling products.
  34. 34. Every product is the basis for selling a continuous service.
  35. 35. Create campaigns.
  36. 36. Create and make things. Participatory. Iterative. Valuable.
  37. 37. Strategists should be responsive.
  38. 38. Strategists should be responsive and agile.
  39. 39. Process What does this mean …
  40. 40. Strategic Idea Business Context & Opportunity
  41. 41. Determining the business context and isolating the opportunity.
  42. 42. 1. Imagine the digital business 2. Get the organization right 3. Force a realignment of resources
  43. 43. Imagining the digital business. Managing the shift:
  44. 44. Last decade was about adoption.
  45. 45. Ifyou’renotonline, youdon’texist. - Millennial (Huge user research)
  46. 46. Idon’tevenownacomputer. - Millennial (Huge user research)
  47. 47. Whatdoyoumeanit’snoton?. - Ken’s kids
  48. 48. $5.5 BTotalPizzaHutRevenue(2011) $2.0 BTotalPizzaHutOnlineSales(2010)
  49. 49. 100%
  50. 50. Restaurants Marketing Website
  51. 51. Restaurant as billboard Ecommerce
  52. 52. Old Model: Web drives to store.
  53. 53. New Model: Store drives to web.
  54. 54. Digital sales and customer service Distributed manufacturing and fulfillment 5,000+ local distribution points Rapid delivery Pizza Hut Business Model.
  55. 55. Digital sales and customer service Distributed manufacturing and fulfillment 50+ local distribution points Rapid delivery Amazon Business Model.
  56. 56. Ecommerce logistics companies Amazon was built that way. And Pizza Hut?
  57. 57. Online&Digital-InfluencedSalesasaPercentofOverallSales
  58. 58. Like it or not, everyone is in the technology business.
  59. 59. AQuestion What will your business look like when it is 100%* digital? *
  60. 60. Business model? Customers? Competitors? Strategic partners? Competitive advantage? Organizational structure? Resources and skillsets?
  61. 61. Leadershiptodayrequiresasearchfor new,inherentbenefitsandadjacent opportunities.
  62. 62. Extend value by exploiting the native capabilities of the channel.
  63. 63. Start with the user need and the new behavior.
  64. 64. Challenge core business model assumptions.
  65. 65. Challenge long-held core assumptions. Do we really need these people?
  66. 66. Assess how context creates value.
  67. 67. Delivering content at the point of care.
  68. 68. Identify the best opportunities.
  69. 69. Understand the user need (and the numbers)
  70. 70. Organization & capabilities.
  71. 71. Users expect a consistent, smart experience.
  72. 72. Yet companies still manage development from the inside out. Digital Org Website Digital Marketing Social Offline Org Physical Stores Offline Advertising Mobile Org Mobile Web Apps
  73. 73. Companies should manage user initiatives as integrated products, not siloed channels.
  74. 74. Defining the right digital organization has never been easy. 1995 2000 2005 2010 2020 Emerged out of central IT Dedicated Internet BU’s; marketing led; Spin-offs Centralized services Matrixed & Fragmented Integrated Teams
  75. 75. The competencies required for digital development keep getting broader and more sophisticated.
  76. 76. Front-end Developers Back-end Developers Platform SMEs UX VD Business Executives Analytics Digital Marketing Program Mgmt. Mobile Developers Offline Marketing SEO Social Marketing Specialized roles are proliferating. Content creators Product Managers
  77. 77. The mix of internal and external resources adds to complexity. Front-end Developers Back-end Developers Platform SMEs UX VD Analytics Content creators Digital Marketing Program Mgmt. Mobile Developers Offline Marketing SEO Social Marketing Product Managers Business Executives
  78. 78. Digital businesses require agile teams but still operate with fragmented resources in isolated silos.
  79. 79. Complexity, speed, and cost will drive return to integrated teams. Business Unit Executives Front-end Tech UX Product Marketing Dedicated Resources Back-end Services Analytics Brand Marketing Shared Resources VDContent Mobile Product Management
  80. 80. Key capabilities gaps. Competency. Gaps. • Product Management • Managing strategy and trade-offs • Content Strategy • Authentic content authors • Media creators • Content strategists • Social media • SMEs • Managers, Editors, Analysts • Analytics • Digital Analysts • Data Scientists • Mobile • SMEs • Developers • Technology • All…
  81. 81. To create great digital experiences build a product organization.
  82. 82. Realigning resources.
  83. 83. In aggregate companies are underinvesting in digital.
  84. 84. Source: KPCB
  85. 85. Showing the value & ROI of digital isn’t always straightforward. • “What is the potential impact to the business?” • “What is wrong with the current site?” • “Why does it cost so much to do this?” • “How will this affect existing revenues?” • “Why can’t we add this feature that I’ve seen on another website to our site now?” • “We don’t have enough resources to support that update now, it’ll take 12 months to get it in the queue” Answering “Why?” Prioritizing initiatives
  86. 86. Growing digital revenues often requires cannibalization. • Pricing • Channel shift • Elimination of traditional revenue streams • Changing expectations of payback period/level of investment required • Forced realignment of resources
  87. 87. Work flows to competency.
  88. 88. Organizations can accelerate change by marrying top down leadership and macro re-allocation of resources with emerging engines of growth.
  89. 89. Understanding and applying the user need.
  90. 90. User Myth 1: New insights exist
  91. 91. Insight = information + context
  92. 92. User Myth 2: Research has all the answers
  93. 93. Data is a valuable crutch.
  94. 94. Clues are everywhere
  95. 95. Don’t ask observe
  96. 96. User myth 3 They know what they want
  97. 97. Technology creates expectations.
  98. 98. Expectations transfer behavior
  99. 99. Expectations lead to needs and desires
  100. 100. The Un-spoken Need
  101. 101. 103 TheUnspokenNeed. 1.Solves a problem. 2.Sets expectations 3.Can be incremental
  102. 102. Go beyond the “Un-Met” Aspire for the “Un-Known” And you willfind the “Un-Spoken”
  103. 103. Defining the brand capability.
  104. 104. What you stand for in the heart, mind and wallet of the your user Abrandis…
  105. 105. Tendency to overcomplicate
  106. 106. In truth brands are simple
  107. 107. 109 Agoodbrandis. 1.Focus. 2.Meaning. 3.Conviction
  108. 108. Mission What drives us Beliefs How we achieve the mission and vision Vision Define where we want to be
  109. 109. Mission What drives us Beliefs How we achieve the mission and vision Capability What we enable for our user Vision Define where we want to be
  110. 110. What is a brand capability?
  111. 111. Addresses an Un-spoken need
  112. 112. It is active and participatory
  113. 113. It delivers the brand’s vision, mission and beliefs
  114. 114. Determine what the brand should say, do and ENABLE Aplanner’s role
  115. 115. Strategic Idea Business Context & Opportunity
  116. 116. People
  117. 117. One size does not fit all
  118. 118. Encourage the T
  119. 119. Evolve roles and job descriptions
  120. 120. Cast people don’t assign roles
  121. 121. Experiment
  122. 122. Questions?
  123. 123. April 15, 2014 Nestle Capabilities Deck 45 Main St #220 BKLN / 718 625 4843 / hugeinc.com

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