1. Standard Operating
Innovation:
What You Don’t
Want To Hear
B2B Marketing Research Series, Volume II
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STEFAN TORNQUIST
VP, Research
Econsultancy
ROB SHERRELL
Vice President
Sparks Grove
Meet Your
Presenters

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3
Housekeeping
30+ minutes with Q&A
Please submit live questions via WebEx
Be on the lookout for follow up docs

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Today’s
Agenda
Connecting the 2013 and 2014 Studies
Innovation and the New B2B Marketing Organization
Impact
Innovation as a Practice
Q&A
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Connecting the 2014
and 2013 Studies

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The B2B Marketing
Research Series
2013 Study:
A Reinvention of B2B Marketing
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2013 Study:
A Reinvention of B2B Marketing
What We Found – The B2B Marketing Spectrum
There are four types of B2B companies; but True Partnerships
between marketing and sales lead to highest growth
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8. The 2014 Study

9. The 2014 Study
251 B2B
Marketing
Respondents
$250MM+
Revenue
(52% $1B+)
Director
and Above

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10
Innovation and the
New B2B Marketing
Organization

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11
Defining Innovation
(simply)
in·no·va·tionˌ
[inəˈvāSH(ə)n]
noun
creativity that drives value

12. 12
How Marketers
Define Innovation
15% Innovation means allocating the resources (time, people,
dollars, space) for creativity and experimentation
We use the terms "innovation" and "creativity" interchangeably16%
19% Innovation is about generating new ideas, not just
tinkering with old ones
20% We are successfully implementing and receiving value
from new ideas
30% A mix of creativity with new capabilities (customer
experience, data, etc.)

13. 13
How Marketers
Define Innovation
15% Innovation means allocating the resources (time, people,
dollars, space) for creativity and experimentation
19% Innovation is about generating new ideas, not just
tinkering with old ones
20% We are successfully implementing and receiving value
from new ideas
30% A mix of creativity with new capabilities (customer
experience, data, etc.)
We use the terms "innovation" and "creativity" interchangeably16%

14. 14
Innovative vs. Traditional
Budget for innovation
Balance breakthroughs with
incremental change
Open to outside help
Measure innovation impact
Risk averse
Fear failure
Confuse creativity
with innovation
Growing more slowly

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Marketing Evolution
& Innovation
37%
43%
53%
57%
57%
31%
38%
45%
53%
54%
0% 10% 20% 30% 40% 50% 60%
As competition increases, content/inbound marketing is
becoming less effective over time
Awareness / acquisition marketing is becoming less
effective over time
First conversations with prospects now happen well into the
process - they arrive informed and ready to talk because of
lead nurturing, content, etc.
Marketing is under increasing pressure to quantify our
contribution to revenue/growth
The traditional sales "funnel" no longer describes our lead
nurturing process - it's far more complicated than that
2014 Highly innovative orgs
15
Innovators exhibit greater awareness of disruptors and trends
- showcasing a progressive point of view

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Marketing Evolution
& Innovation
Sales Relationship
16
Innovative organizations are 30% more likely to have
strong partnerships between marketing and sales
27%
29%
33%
11%
29%
15%
43%
12%
0
0.1
0.2
0.3
0.4
0.5
Sales-led organization Sales and Marketing work in
partnership to some degree
Sales and Marketing work in
partnership to a large degree
Marketing-led
All Highly innovative

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17
The Impact
of Innovation

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Where Are Marketers
Innovating WITHIN Marketing?
5% 5%
8%
15%
22%
46%
5%
17% 16% 15%
35%
26%
0%
10%
20%
30%
40%
50%
Improving employee
retention
Improving existing
product
Increasing
employees'
productivity
Making process
more efficient
New product
development
Improving customer
satisfaction /
retention
All Highly innovative
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Innovators are disproportionately impacting products (growth) and
productivity (efficiency) versus the customer retention focus of others

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Where Are Marketers
Innovating OUTSIDE of
Marketing?
37%
16%
46%
48%
61%
45%
47%
51%
58%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Customer service
Finance / forecasting
Executive management / strategy
Product development / R&D
Sales
All Highly innovative
19
Marketing innovators have broader organizational impact

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Return on (Marketing)
Innovation Brings
Enterprise Value
20

21. 21
The Return
on Innovation
Return on Investment
of innovation budget
40%

22. 22
The Return
on Innovation
Average percentage of 2014
revenue tied to innovation initiatives
30%

23. 23
The Return
on Innovation
Average percentage of 2014
revenue growth tied to innovation initiatives
26%

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What You May
Not Want to Hear:
Innovation as Practice

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Innovation is Hard Work

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Marketing innovators specifically designate budget.
49% of of innovative companies that do so
30% of traditional companies designate an innovation budget versus
Traditional
Companies
Innovative
Companies
Standard Operating Innovation
Budget
0% 25% 50% 75% 100%

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Standard Operating Innovation
Incremental
27
Marketing innovators focus on incremental just as much
as “breakthrough”.
55% of innovative companies
27% of traditional companies have a good balance between
“breakthrough” innovation and incremental improvement versus
0% 25% 50% 75% 100%
Traditional
Companies
Innovative
Companies

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Standard Operating Innovation
Time
28
Marketing innovators allocate time to innovate.
versus 51% of innovative companies
24% set aside specific time/opportunity to encourage innovative thinking
0% 25% 50% 75% 100%
Traditional
Companies
Innovative
Companies

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Standard Operating Innovation
Metrics
29
Marketing innovators measure intently.
66% of those companies that are innovative
42% of traditional companies measure innovation through the lenses of speed
(time to market), quality (impact) and quantity (volume) versus
0% 25% 50% 75% 100%
Traditional
Companies
Innovative
Companies

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Infographic

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Largest Barriers
to Innovation
All Organizations Highly Innovative
Traditional Mindset 1 3
Risk Aversion 2 4
Low Tolerance for Failure 3 6
High barriers between teams/silos 4 5
Resistance to ideas from non executives 5 1
Resistance to bringing in outside views/expertise 6 2
Lack of Process Around Innovation 7 7
Most concerned
with culture:
“Why Innovate”
Most concerned
with sources
of inspiration:
“How Innovate”
Marketing Innovators have moved from “should we” to “how do we?”
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What Innovators
Have Learned

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Innovation Fuel
Numerous important factors contribute
29%
34%
37%
41%
42%
51%
59%
0% 15% 30% 45% 60% 75%
External influence - third party expertise and outside view
Cultural factors - trust, acceptance of failure, less siloed structure,
rewards for initiative, diversity of talent, etc.
Training - skills development, creative thinking
Processes and incentives - regular measurement, enabling time and
budget for innovation, rewarding innovative behaviors
Tools - technology for collaboration, innovation management, etc.
Customer-centric focus - innovation fuelled by feedback, VOC, etc.
Strategic factors - leadership commitment, priority, etc.
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What Fuels Innovation
Key factors cited as impactful once experienced
29%
34%
37%
41%
42%
51%
0% 15% 30% 45% 60% 75%
External influence - third party expertise and outside view
Cultural factors - trust, acceptance of failure, less siloed…
Training - skills development, creative thinking
Processes and incentives - regular measurement,…
Tools - technology for collaboration, innovation…
Customer-centric focus - innovation fuelled by feedback,…
Strategic factors - leadership commitment, priority, etc.
Important + High impact factorsImportant Factors
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59%

35. Three
Takeaways

36. 1
Three
Takeaways
Innovation
is a process.

37. Three
Takeaways
2Innovation
takes resources
(time/budget).

38. 3
Three
Takeaways
Innovation is
hard work.

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Questions?
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Next
Steps
STEFAN TORNQUIST
VP, Research
Econsultancy
@marketingStefan
ROB SHERRELL
Vice President
Sparks Grove
rob.sherrell@sparksgrove.com
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41. Thank You.
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