The document discusses how many aspects of business and society are undergoing rapid changes due to new technologies, connectivity, and shifting consumer behaviors. It identifies 26 areas that are "broken" or disrupted by these changes, such as linear sales and marketing processes, traditional media models, discount-focused consumers, lack of testing, and more. The key implications are to understand changing consumer journeys, optimize for mobile, focus on community engagement over acquisition, insist on media transparency, simplify programs, and carve out time for reflection amid the disruption.

1. EVERYTHING IS BROKEN
the end of business as usual
john batistich
http://www.creativeadawards.com/original/wrecking-ball/11338

2. “we think that everything is broken & we
throw our computing power at it to fix it”
patrick pichete global cfo google

3. “nearly all of the tools, processes &
philosophies around marketing were
developed more than 50 years ago”

4. “we want a one to one relationship with
7 billion customers” bob mcdonald ceo p&g
26 May 2010

5. “we are living through a
change in the way ideas
are created, spread &
implemented. there’s a new
model of leading &
connecting people with
ideas for change” seth godin
http://garinkilpatrick.com/awesome-marketing-blogs/

6. what we learnt is being disrupted

7. old models don’t work like they used to

8. new methods are being explored

9. rules are being challenged
http://www.flickr.com/photos/sameli/1898511953/

10. time to think different. think big!

11. what’s changing?
3 shifts

12. demographic
increasing life-spans
declining fertility
skills shortage
cotton wool kids
rise of the screenager
rise in sinks & dinks
increased immigration. higher ethnicity
urban-rural polarisation
smaller households
power returns east
1 billion new mouths
market expansion
product sourcing into aus/nz
services outsourcing
asian values & aesthetics
resource competition
sustainability inbound tourism numbers
protectionist backlash?
environmental change
resource shortages rising costs
resource nationalism
carbon economy
increased regulation
peak oil
water labeling
packaging/waste taxes
eco-cynicism
source: richard watson. picture: john homer

13. 1 accelerator of change

14. technology enabled connectivity
1 billion pcs & 4 billion mobiles
location-based services
mobile & social payments
intelligent vending
3d screens
rising transparency & amplification
increasing collaboration
personalisation
acceleration of everything
hunger for real shared experiences
1. ubiquitous connectivity
2. democratisation of production tools
3. access to higher data speed/more storage
source: richard watson

15. 3 waves of change
1. technology
2. behavioural change
3. business model
26 May 2010

16. “WE ARE LOSING SHARE OF RETAIL”
“soon…you won’t forget anything, you’ll
never be lost, never lonely, never bored &
never out of ideas” eric schmidt ceo google september 2010

17. 1.SHOPPER BEHAVIOUR
Accelerated change in shopper behaviour challenging old norms

18. old ways new behaviours
command & clicks touch & gesture
text & 2d video & 3d
single task multi-task
desk/laptop search & email social & mobile search
ecommerce mcommerce & social commerce
store trading hours shop anytime anywhere
national service finds you
appointment to view time shifting
entertainment & retail merged in a closed loop
seasonal sales always on special
quality relationships quantity relationships
private public

19. 2.THE LINEAR PATH
TO PURCHASE
The old linear model is being replaced by a network to advocacy
source: psfk

20. old linear path to purchase
Sign Up
Receive Consult Contact
Visit for
See an Ad Catalogue Sales Buy Customer
Mail or eDM
Store Loyalty
Person Service
card
Awareness Consideration Trial Purchase Repeat

21. add online & social web
Get Geo
Reorder Follow Stream
Compare Create Targeted Review on
via Brand on Purchase
Online Tags Offer on IPTV
Phone Twitter Experience
Mobile
Post
Receive Consult Sign Up for Get up to
Review Product Track
Catalogue Sales Loyalty the minute
Upload Search Purchase
Mail or eDM Person card Reviews
Picture
Join a
Ask Contact
Visit Read relevant
questions See an Ad Buy Customer
Store Reviews forum for
via live chat Service
advice
Read a
Invite
Read Call a 1800 Peruse Sign Up Browse Foursquare
Friends to
FAQs number Blogger for eDM Content or Yelp
Co-Shop
Sites Review
Scan QR Watch Link from Create Use an
Peruse Join
Code for YouTube Friend’s A User application
Blogger Fan Page
Information Video Facebook Community for offers
Sites

22. 3. LINEAR DISTRIBUTION
CHANNELS
The future or retail is customer centric & channel agnostic

23. customer chooses multi channels
5%
<1%
44%
$255B
50%
offline search search online total
only online offline only retail
buy buy sales
offline online

24. 4. TRADITIONAL STORE
We crave social, physical and instant experiences. Online experiences are changing store expectations

25. the store needs re-invention. more
experiential, service, social & integrated

26. 5. DIFFERENTIATION DELUSION
Being different & better only matters if your customer believes & values it

27. your brand is not as
different as you think it is!
Is your brand different?
% Agree
80%
8%
ceo customer
source: contagious

28. consumers & businesses differ on
why they interact on social sites

29. 6. DISCOUNT DEVOTION
We are increasingly dependent upon deep discounts training our customers to wait for specials

30. the amount of purchases at discount
is at a all time high & many can’t stop

31. 7. OVER CHOICE
We need simpler solutions & more involved experiences
http://cerisereve.deviantart.com/art/Used-Crayons-72200919

32. in 1997 there were 2 million brands
and now there are 8 million brands
more clutter. more confusion
http://michaelfaber.deviantart.com/art/not-thinking-straight-35033655

33. in 2008 the average person’s daily intake of
information was 300% greater than in 1960
university of california san Diego study

34. 8. LOYALTY PROGRAMS
Too many complex reward programs with low value creating reward fatigue
Source: Sparksheet.com

35. the world doesn’t need another hard to
understand low value reward program
Spend $15.7K at Coles on FlyBuys or spend
$11K at Woolworths to get a $50 voucher

36. 9. DATA DELUGE
Making sense of the increasingly available behavioural data is the new gold
Source: impetuoussoftware.com

37. most marketing departments are
not prepared to make sense of
the data that is rapidly becoming
available about their customers

38. 10. LACK OF TESTING
The world is forever in beta test
http://arts.brighton.ac.uk/__data/assets/image/0016/6253/Problem-Based-Learning1a.jpg

39. amazon conducts 200
tests a day to improve
the user experience

40. learn fast, cheap, well & first. place lots of
little bets and scale up the ones that pay off

41. 11. RESEARCH REACH
Majority of your audience are out of reach
http://www.qualtrics.com/blog/wp-content/uploads/2010/06/market-research.jpg

42. “you only get to talk to about 10% of the population
via traditional online market research, so what about
the other 90%? Who wants their evening interrupted
with a phone call from a research agency” Peter Harris

43. 12. CLAIM BASED
MARKET RESEARCH
You are what you do not what you say
http://corporate.bangthetable.com/2009/03/14/market-research-is-not-community-engagement/

44. we make
decisions on
claimed not actual
behaviour. who
can accurately say
how often they
have seen an ad or
purchased a
product in the last
4 weeks?

45. 13. MEDIA AGENCY DEALS
Channel agnostic, complete transparency & total accountability
http://www.shutupitson.com/tag/mad-men/

46. media agencies who commit to future
investments with media owners before
understanding their clients needs

47. media agencies that get rebates
from media owners & don’t
disclose them to their clients

48. 14. THE AD AGENCY
New models forming for social, digital, video & mobile channels

49. agency resources measured on inaccurate
time sheets vs value/outputs

50. resourcing digital channels that are more
intensive, reiterative & measurable
Source: webzbranding.com

51. the creative director role will evolve
from creator to curator because no one
person has a mortgage on creativity

52. agencies will collaborate more, shift to
projects over campaigns & create ideas
that are born to live in beta (social) not
built to die (media schedules)
http://steja007.deviantart.com/art/HD-wallpapers-part-2-104834273

53. 15. EDM INVOLVEMENT
Volumes are up but open rates & click through rates are declining
http://www.fullissue.com/index.php/email.html

54. why do 79% of members don’t even open
your email? & it’s getting worse!
Source: Responsys

55. 16. CPM FOR TV ADVERTISING
Your audience is not as high as you pay for!
http://www.digitalproductionme.com/article-1135-middle_east_tv_ad_revenues_to_buck_downturn/

56. viewership of ad breaks can be 10%-
35% lower than the program you buy
80
Source: ikon

57. SO THINK ABOUT…
17. YEAR OF THE MOBILE
It’s not the year but the decade of mobile which makes everything local, social & personalised

58. “our coordinates, has the potential to
change all the outputs…where we shop,
who we talk to, what we read, what we
search for, where we go, they all change
once we merge location and the web”
matthew honan wired magazine

59. access reviews, pricing, content,
community & buy anytime anywhere

60. mobile payment systems
change the pos & banking

61. 18. ECOMMERCE
CONVERSION
Value, range & convenience driving online sales but conversion is extremely low

62. different conversion by channel
92%
30%
2%
online good store westfield
conversion conversion conversion

63. 19. CHECKOUT
ABANDONMENT

64. why the high online cart abandonment?
65%
<1%
online cart store cart
abandonment abandonment

65. 20. ACTIVE INVOLVEMENT IN
SOCIAL NETWORKS
Too often, acquisition is the key focus but active involvement has real value

66. why acquisition over involvement & value?
97.4% passive or do nothing at all
2.6% active: like, post or comment

67. how do you get your community active?

68. 22. VALUING A LIKE
OR FOLLOWER
Apply a quality measure to all acquisition & stay agnostic
http://blog.zuupy.com/are-facebook-likes-useful-when-there-is-no-di

69. 418% more likely to visit startbuck.com
spent 8% more. transacted 11% more frequently
are they pre-existing preferences?
source: comscore

70. 23. SOCIAL BUSINESS READY
Most organisations were not designed for today’s networked world

71. old model new world
customer outside customer inside
deliver a promise guided by purpose
interruption interaction
sell & tell loudly actively involve
creative & media content & distribution
communicate an image deliver an experience
one to many one to one & many to many
strive for perfection forever beta testing
trust through authority trust through transparency
http://themobius.deviantart.com/art/Depth-of-Night-71363751?

72. 24. CRISIS MANAGEMENT
Listen, shape & respond with speed & transparency
http://www.noupe.com/inspiration/stunningly-creative-and-unforgettable-print-ads.html

73. “Consumers have
something they
have never had
before, the power
to warn &
threaten, rather
than to punish
silently after the
fact”bruce philp consumer republic

74. 25. MORE MEETINGS
Running productive meetings will free up capacity to think & create

75. we seek more
collaboration

76. why does the meeting
expands to the time allotted?
why not change the time allotted!

77. 26. REFLECTIVE THINKING
We are losing the ability to think in a deep, creative ways, which is affecting our decision making
http://my.greasy.com/cgi-bin/blogapp/img.cgi?image=32367767.jpg

78. “teens were faster than adults at
reading online but their attention
spans were much shorter, so anything
difficult tended to be skipped”
jacob nielsen

79. “always on, information overload, multiple-
tasking work environments are killing
productivity, attention fragmentation,
dampening creativity and making us unhappy”
mckinsey report june 2011

80. KEY IMPLICATIONS
Asking the right question is the first step for change
source: psfk

81. 1. understand the changes in your customer journey driven by connectivity
2. shift your digital gravity towards mobile
3. optimise your website for smartphones
4. track the engagement of your social communities & identify value
5. insist on media transparency & accountability
6. review your real tv audience
7. focus on activating of your edm databases
8. simplify your loyalty program
9. review your data analytic capability & tools
10. change the focus of your research towards behaviour
11. set aside 10% of your budget for testing
12. evolve towards a social business design
13. run productive meetings. cut meetings by 15 minutes to create 25% more time
14. don’t use meaningless words like engagement & activation
15. carve out time for reflection & learning
16. define26 May 2010
what you need to stop, start & continue to free up capacity to think

82. SOURCES
Standing on the shoulders of giants

83. westfield study tours
morgan stanley
ellie rogers of ikon
dr ken hudson
david whittle of m&c saatchi
anouk darling of moon
michael batistich of we are social
peter harris of vision critical
jon bird of ideaworks
best buy slideshare
richard watson
youtube
google & google images
flickr
techcrunch
mumbrella
emarketer
smart company
inside retail
psfk
mckinsey quarterly june 2011
contagious q2 2011

84. LIFE MOVES PRETTY FAST

85. IF YOU DON’T STOP & LOOK AROUND
ONCE IN A WHILE, YOU COULD MISS IT

86. SO, DON’T MISS THE OPPORTUNITY TO
FIX WHAT’S BROKEN IN YOUR WORLD?
http://www.creativeadawards.com/original/see-further/3298

87. EVERYTHING IS BROKEN
the end of business as usual
john batistich
http://www.creativeadawards.com/original/wrecking-ball/11338