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Bad News Travels Fast and damage is done

before one could react

Negative Opines

Public Space

Caught Off-guard,Denial

Organization

Delayed Response

Organization

IrreversibleDamage to

PublicPerception

Public Space

• A leading NGO turned tables on it by parodying its internetcampaign to highlight palm trees destruction in Africa.

A leading PersonalCare Brand

• Learnt it hard way when hate campaigns against it threatened

to stir up a social boycott.

One of the World’s

Largest Retailers

• Suddenly found itself in dock over unsustainable practices of its suppliers.

A Sportswear Co.   R   e   a    l  -    l   i

    f   e

   C   a   s   e   s

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 Viral Media is the Arena  where various

parties interact, exchange and exert influence

A consumer checks internet

for product reviews.

An existing customer posts

comments on product.

Prospective employees

research on the

companies before

applying.

Employees’ morale drops

after reading negative

opinions about their

company in public sphere.

NGOs/Activists post

comments, videos,

run campaigns to

direct public attention

Competitors put

out misleading

information

Regulators opine on the

industry issues & legalrecourse

A supplier’s news is

quickly associated

with the buyer co.

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Proactive Approach is Key to manage

the risks to enterprise and brand image

Search public domain and extract

content related to the company,

product, processes & partners.

Process the data using advanced

analytics to derive information &

inference

Mashing up various information

sources throws up underlying

patterns, hot spots, trends and

provides warning in advance...

Steering committee analyzes

trends, patterns, hot spots

and formulates action plan.

Influence

public opinion

Make changes to

way company

does its business

12

3

4

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• Search in Text & Images

• Advanced technologies searchin audio and video

• Coverage to all media sources

CoverageBreadth

• Bayesian Inference Engineprovides artificial intelligencecapabilities

• Mashups combine information& aid human intuition

AnalyticalDepth • Cloud computing provides on-

demand access to highcomputing power

• Avoids CapEx in hardware &software infrastructure

ComputingPower

Extracting Business Intelligenceis made possible by advances in Information Technology (IT)

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 A Framework to Derive Insightsfrom gathered business intelligence to formulate action plan

(ia)3 Framework

Source: Dr. David Bach, IE Business School, Madrid 

Compensation

Sense of contribution

Acknowledgment

Publicity

Retaliation

………

Blog, Social Communities

Webcast Newspapers

Interviews

Conference

…....

Organized: NGOs,

Regulators, Competitor,

Activists

Unorganized: Customer,

Employee, General Public

…....

Toxic Waste

Supplier

Sweat Shop

Employee Discontent

Customer service complaint

……..

Scientific Evidence

Public Sentiment

Polling Data

Expert/Reputed opinion

Product & process redesign

………

Reputation

Networks, contacts, allies Critical information

Access to decision makers

……..

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 A Sustainable Action Plan is all about

doing Good & spreading good Truths

Hard Measures Soft Measures

Examples:

Switch to sustainable suppliers

Change process to eliminate toxic chemicals

Redesign product to facilitate recycling

Improve Operations to reduce carbon footprint

“ Action Speaks for Itself”

Examples:

Tweak the brand messaging

Redesign the marketing campaign

Formulate a PR exercise on CSR

Respond to online public complaints.

“Start talking to your customers/ stakeholders

before someone else starts talking to them.” 

Pre-empt Risks to Enterprise Image & Brand

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Building a Business Case is important

to get management buy-in for the initiative

How to measure chance/intangible benefits like potential risks, losses avoided ?

Intangible assets likeGoodwill, Brand and

others are quantified onbalance sheet.

Various models areavailable to measureenterprise image and

reputation.

Real life cases of goodwill assetimpairment, litigationcosts, insurance costs,

stock erosion andrevenue losses

Analytical Models

Past Incidents

Accounting

Difference betweenMarket Value (stock

market) and Book Value(on balance sheet)

Market Behavior

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Beyond Risk Management it enhances

the ability to sense the shifts in the external environment & act proactively

•Changes in consumerbehavior, preferences

•New customersegments etc..

•…….

•Eg: DIY (Do It Yourself)Trends

Demand Shifts

•Logistics Trends

•Distributions Changes

•Supply Trends

•……

•Eg: Collaborativeoutsourcing

Value ChainShifts

•Competitors’ actions

•New Entrants

•New substitutes

•……..

•Eg: Kindle and virtualbook store

CompetitionShifts

•Changing politicalalignments

•Popular sentiments

•…….

•Eg: Labor orConservative

Political Shifts

•New Processingtechniques

•Disruptivetechnologies

•……•Eg: Cloud computing

TechnologyShifts

•Impendingregulations

•……..

•Eg: Shift towards

process qualityassurance

RegulatoryShifts

•New emergingmarkets

•Growth rates andeconomic indicators

•……•Eg: Rise of Africa

EconomicShifts

•Demographic trends

•Social activism

•Society behavior

•…..

•Eg: Concern forenvironment

Social Shifts

Viral Media holdsa wealth of information onhow businessenvironment Ischanging

   M   a   r    k

   e   t   E   n   v   i   r   o   n   m   e   n   t

Non- Market Environment 

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Prepare for Unpredictable and

 volatile business future effectively

The price of inaction is steep and Cos cannot afford to ignore and gamble

Identify Opportunities

• Sense changes in consumer preferences

• Recognize the policy shits and impending regulations and participate in theirformulation

• Learn about the emerging best practices in the industry

• Learn what drives top talent in career selection

• Identify emerging business destinations

• ……

Reduce Risks

• Avoid adverse public opinions and bad press by proactive actions

• Keep tab on public perception of value chain partners and their actions

• Recognize when brand is being assailed in public and protect brand equity

• Reduce legal risks and litigation costs

• Protect marketing campaigns from counter campaigns

• ……

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THANK YOU

Please refer the published paper

‘Proactive Enterprise & Brand Image Risk Management’

for more information.

Author welcomes comments/bouquets/brickbats

Mobile: +91 7709 010 449

Email: aagrawal.imba2009@alumno.ie.eduBlog: www.frontiers2explore.blogspot.com

Twitter: www.twitter.com/A_Agrawal