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Congreso AMAI 2009
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Innovation at the Margins
Simon Chadwick
AMAI Annual Conference
Mexico City, September 2009
Innovation
►“The successful introduction of something new and useful”
►Change, departure, introduction, invention, novelty
“Innovation comes from the margins”
Shari Morwood, IBMOctober, 2006
How easy is it to innovate?
The difference between larger and smaller companies
► Larger companies: Innovation requires process
► Business plans, research, approvals, committees, testing, RoI
Many ideas battling for resources Capital access is a competition with all the other needs of the
business Often easier to acquire a successful start-up
► Smaller companies: Often start-ups Innovation is the reason for being – one BIG IDEA! Access to capital (private equity or venture capital) Rapid iteration in the market Failure baked in as a necessity for success
Do large MR companies innovate?
►Yes!
Research International: MicroTest
Millward Brown: BrandZ, Link
GfK: Outdoor media monitoring
Arbitron: PPM
►BUT: the majority of large company new products come from acquisition
Examples of acquired innovation
Acquiring Company
Acquired Company
Acquired Innovation
Kantar MaPS Brand Tracking
IPSOS Livra Communities
GfK Arbor Brand Tracking
Nielsen Buzzback WOM
TNS CompetePassive measurement
Why do large companies acquire innovation?
►Because innovation is occurring on a larger scale and at a faster pace than at any time in our industry’s history
►Larger companies innovate at a slower pace – therefore risk being overtaken by “disruptive technologies”
►“If you can’t beat them, eat them”
Disruptive Technology
Why so much disruptive innovation today?
►Technology Internet
Social Media
►Popular “new ideas” books E.g. “Wisdom of Crowds”, “Tipping Point”,
“Freakonomics”
►Pre-recession availability of capital
Some examples
Technology: Qualitative
Technology: Online Sample
Providing online sample direct from Social Media
Technology: Communities
Researcher
Participant Participant
Surveying
Observing
Listening
New Ideas: Wisdom of Crowds
collectiveguess
= 1197 lbs
actualweight
= 1198 lbs
Galton’s surprise findings
X 656Polls
(1988 -2008)
¾
IEM - The original Predictive Market
Use of Predictive Markets
►Concept Testing
►Political polling
►Integrated product testing
►Ad testing
More accurate than probability-based tests
New Ideas: Integrated Research
Summary
►Availability of capital + popular new ideas + technology = the most productive era ever in research for “Innovation at the Margins”
►Large companies will copy and will acquire these innovations so that they enter the mainstream
►Many will result in profound changes to what we today regard as “market research”
Thank you!
