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Creating an Agile and Innovative Organization: Lessons from the Future
of Advertising Program Yoram (Jerry) Wind
The Lauder Professor and Professor of Marketing Director, SEI Center for Advanced Studies in Management
Academic Director, Wharton Fellows Program [email protected]
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Strategic Agility & Innovation Workshop
June 17, 2013
Premise In the turbulent and uncertain current business
environment, agility and innovation are critical mindsets and guidelines for successful strategy and organizational
architecture.
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The challenge, however,
is designing and implementing an effective agile and innovative strategy and supporting
organizational architecture
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Our Approach is Motivated by the
Findings of our Advertising 2020 Project
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203 Contributors from 16 Countries
Singapore
UK United States
Netherlands
Germany
China
Israel
Denmark Belgium
India
Japan
Brazil
Australia
Korea
Canada
Russia
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✦ Titles – 46% Founders/CEOs/Presidents – 9% Marketing Executives – 9% Strategy/Innovation/Planning Executives – 7% Research Executives – 2% Sales Executives – 5% Developers/Technologists – 22% Academics/Authors
✦ Organization Type – 47% Advertising Agencies – 13% Media Companies – 6% Advertisers – 9% Data Analytics – 6% Industry Associations – 13% Academia – 6% Technology
The Changing Market (Demand)
Passive Consumers
(At and With People)
Empowered and Skeptical
Consumers
(With and For People)
Evo
lvin
g D
eliv
ery
(Su
pp
ly)
Dynamic Ecosystems & Orchestrators
Traditional Advertiser – Agency – Media Model
III. Engaged Product, Brand and Campaign - Centric
I. Advertiser-Centric Interruption and Persuasion
IV. RAVE-Relevance, Actionable, Valuable Experiential Delivered creatively through all touch points
II. Empowered Interactive Messages, Multiple Media
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The Results
Q1:
The
Initial
Scenarios
Some of the Key Findings
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a
a
I. Advertising as a Newsroom
II. On Demand
Advertising
III. Orchestrating all Touch Points
a
IV. An Open Agency a
VI. Real Time
a V. Think and
Act Glocal
I. Adopt a Newsroom Model
“Brands will have to leave behind organizations and thinking built solely around the campaign
model, and instead adopt the defining characteristics of the real-time, data-driven
newsroom — a model that's prolific, agile and audience-centric.”
-Baba Shetty & Jerry Wind
“Advertisers Should Act More Like Newsrooms”
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II. Create On-Demand “Advertising”
“On-demand advertising requires timely, relevant, customized and trusted
advertising to be present at a consumer’s moment of need – no
matter where or when it is.” –Jacques Bughin & Jerry Wind
“On-Demand Advertising”
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III. Break Down Silos through Orchestration
“Siloed communications development needs to evolve into a carefully
orchestrated approach, with a bespoke selection of the best skill sets and
technologies for the communication objective.”
-Jerry Wind
“Toward a New Advertising Model”
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Old Media
New Media
Product Design
Package Design
Customer Service
Sales Team
Store Design
Public Relations
Employees
Social Networks
Empowered Consumers
IV. The Open Agency: Leverage Open Innovation
“When one person with a wireless connection can be an agency, a
media company or even a manufacturer, the traditional
advertising organizations have to change... to accommodate open
innovation.” -John Winsor & Jerry Wind
“Advertising in an Open Innovation World”
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V. Think & Act Glocal
“Many brands have the potential to become global. Glocal advertising centers on a global theme that can
be adjusted to local conditions.” -Jerry Wind, Stan Sthanunathan and Rob Malcolm
“Advertising in the Age of Global Tensions”
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VI. Harness Real Time Big Data and Analytics (while respecting privacy and permission)
“Marketers will need to master the data to coordinate a constantly expanding surface area of interactivity ... which will evolve to connect, track, and manage interactions across physical and digital points through the cloud.”
-Jacques Bughin, McKinsey
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“Personal data lockers” will give Internet users a degree of control over their online personal data that may well transform it into “a kind of online currency.”
-JR Smith, AVG Technology www.personal.com
What are the Implications of these
Findings?
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Our Proposed Guidelines
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Agile development, strategy & organization applied throughout the organization, its values, strategies &
architecture
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Agility principles: 1. The goal is speed, value and quality 2. Empower people but have them stay in their roles 3. Build partnership based on trust 4. Kaizen – continuous improvement 5. Transparency 6. Legacy mindsets handicap Agility 7. Control economic logic let others make decisions 8. From concept to cash in 10 weeks 9. Iterations, fast prototyping and experimentation 10. Have Fun along the way
For the full list of Agility Principles, see Robert Crudup, “The Scaled Agile – The Dirty Dozen: 13 things you should know about agile”
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…supporting accountable champions
Organizational and Network Architecture
The Organizational and Network Stakeholders:
Customers Employees Shareholders Partners Suppliers Government Communities Other
Metrics/Dashboard Performance Measures, Incentives
Technology
Resources
People and Competencies
Value Creation and Network Orchestration Processes
Ownership, Governance, Structure, & Network Orchestration
Culture & Values
• Vision • Objectives • Value
Proposition • Business
models • Strategies
H
G
A
B
C
D
F
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Facilities
E
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Growth momentum
Market
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Utilize Frameworks for Growth
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Imagine different mental models and world
Our Mental Models are a
major obstacle to creativity
and business transformation.
Thus, understanding and
challenging our mental
models is a MUST!
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What are mental models?
Let’s consider…
What just happened?
Robbery at Knifepoint Updated June 1, 2013 8:55am
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The reality of the situation did not change, our mental model did!
Our beliefs, attitudes, feelings and behaviors are driven by our Mental Models, not reality.
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Why are Mental Models critical?
Roger Bannister breaks the 4 Minute Mile on May 6, 1954
Inner City Alternative Medicine
Source: Zogby Analytics, 1/13/13 http://www.jzanalytics.com/DATA/US_Results_ZA_011013.pdf
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Consider Our Political Views
MIT’s Media Lab $100 laptop
Napster
Samsung SGH-E760
$2000 Car
All these breakthrough innovations challenged the mental models of their industries.
Sayaka Endoscope Capsule
Apple iPad
What is common to these innovations? Microsoft Xbox 360
Kinect
Google Glasses
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The GM En-V
Most Innovative Companies
February 2013
Nike Amazon
Square Splunk
For a pair of revolutionary new products and a culture of true believers
For speeding up the delivery of change.
For spreading the mobile payments revolution
For bringing big data to the masses
In a changing environment challenging our mental models is a must!
“Without changing our pattern of thought, we will not be able to solve the problems we created with our current pattern of thought.”
- Albert Einstein
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Should we challenge our mental models?
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Leveraging your stake holders and the wisdom of the crowd
Leverage All Your Stakeholders
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Customers Partners Distributors Suppliers Employees Shareholders
Producers
Leverage Your Customers
Are you doing it?
Advertisers
Designers
Marketers
Distributers
Pricers
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Over 225,000 apps!*
*http://www.apple.com/ipad/from-the-app-store/
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Leverage Open Innovation
Innovation => Creating the 3rd Dimension
Value Creation re innovative design, production and marketing with employees, customers, distributors, suppliers and others
Are you doing it?
Leverage Diverse Disciplinary Perspectives
Illustrative InnoCentive’s Disciplines
Are you doing it? 35
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Idealized design and Incubation of new initiatives
Idealized Design and Incubation of New Initiatives
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Accelerators
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Testing, testing & testing with adaptive experimentation
Response
x
$
Response
x
$
½x 2x
Adaptive Experimentation
X
X
X
- - - - - - - -
Have you adopted the adaptive experimentation philosophy? And what have you learned from the natural experiments occurring around you? 39
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Yield for all – shareholders, stakeholders and society
Yield For All Stakeholders
Shareholders Consumers
Employees & Partners
Society
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Source: Stengel, Jim. Grow. Crown Business: 2011
• Break Even Time (BET)
• % of Revenue and Profit from New Products and Services
• Share of Wallet
• Creation of New Industries
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Performance Metrics
Other?
Growth momentum
Agile development, strategy & organization applied throughout the organization, its values, strategies & architecture
Imagine different mental models and world
Leveraging your stake holders and the wisdom of the crowd
Idealized design and Incubation of new initiatives
Testing, testing & testing with adaptive experimentation
Yield for all-- shareholders, stakeholders and society
Our Proposed Guidelines:
43 Questions?
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Implications
To:
Research Teaching Practice
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Reflections & Action Plans
![Agile Marketing Lessons from 7k Businesses [REPORT]](https://img.pdfslide.us/doc/110x75/55d50516bb61eb3c338b4568/agile-marketing-lessons-from-7k-businesses-report.jpg)
