WINNING AT INNOVATION THROUGH MARKETING FUTURECAST

From a Thought Renaissance, Biologically Inspired Intelligence (BII) and the

Nomadic Mobile to Ethonomics and Brand Playgrounds.

Professor Luiz MoutinhoFoundation Chair of MarketingAdam Smith Business SchoolUniversity of Glasgow,Scotland.

The Future of Management…… with Marketing!

What fuels long-term business success? Not just operational excellence, technology breakthroughs, or new business models, but management innovation – new ways of mobilising talent, allocating resources, and formulating strategies.

Through history, management innovation has enabled companies to cross new performance thresholds and build enduring advantages.

Message for Companies with a Market-Facing Phobia • A company that is managing itself for operational excellence cannot

create a market for a radical innovation. The skills sets, organisational structure, cost structure, goals and metrics are all wrong. The allocation or derivation of power is all wrong as well!

• There is usually some corporate process by which a potentially great value-balanced innovation gets adulterated into something “mundane”….

• In many companies, there are screening criteria which seem effective to get rid of the more adventurous, breakthrough ideas – or to subject them through the Innovation Funnel to “death by a thousand cuts”…!

We Live in a World of Absolute

• Innovation Overload: Clever entrepreneurs, inventors, and marketers from all over are coming up with so many innovative ideas, that even innovation blogs have a hard time keeping track. Which implies that:

• Innovation isn’t rocket science, It’s an obsession with understanding or creating what makes consumers happy, which problems they face, and then creating something that delivers to those needs. In an experience economy, marketing innovations rule.

Everything can and will be UPGRADED…….NEWISM.

Even the most mundane products and services are now being upgraded.

COBs

Emotion-Recognition Software – Near Field Communication (NFC)

RAPID PROTOTYPE PRINTING3D printing, silicone technology

DirectSatellite Broadcasting Systems (DBS)

Mobile Information Technology – Wireless Motion Sensors/Location

Beacons

NeuroScience, Biometrics, PsychoPhysics – Polymeasures,

Voice Prints

SMART PACKAGING – self-destructing packages, shrinking

packages, chatty packages

BIG DATA/ MASSIVE DATATerabytes – Granularity. Grid

Computing – Support Vector Machine

Vertical Search Engines, Visual Search Engines, Semantic Web

FRAGVERGENCE Widget Economy – Liquid Media, Transmedia Planning,

Wearable Tech

TECHNOLOGICAL INNOVATION AND TRANSFORMATION

FROM

TO

ETYMOLOGICAL TWIRL

Innovation

Mid-15c., “Restoration, Renewal”, “to change”. From Latin INNOVATIONEM (Innovatio), INNOVARE. INNOVATUS

“Make changes in something… established”.

from in – “into” and NOVUS “new”

• Innovation changes the values onto which the system is based….

• Incremental, emergent, radical and revolutionary changes.

INNOVATION DOES NOT START WITH IDEA CREATION

A fallacy. Idea generation is at best the “mid point” of an innovation process, because by the time you start generating ideas you need to have:

-A GOOD SENSE OF TRENDS and the

UNFOLDING FUTURE

- SOMETHING NEW IS REALLY HARD

- IDEATING in context

- INNOVATION is both a process and an ecosystem

TREND- wearable tech and lifelogging

Marketing applications of the Google Glass and its impact on search will be limited, but one Glass app, Glashion, was recently realised where you can snap clothing and bags of footwear of other passers-by and then complete a comparison shop. Is that exciting or scary to you?

Predictions for the future high street• Virtual stores will increasingly be used to maximise availability in a

versatile and cost-effective way.

• Smart billboards and targeted ads will tap into shoppers’ moments of downtime and engage them with personalised content.

• ‘Nomadic’ mobile retail will reach out to under-served audiences, where a permanent presence would be uneconomic.

• Retailers will develop 24-hour, self-service collection lockers in high-traffic locations.

• Many stores will become ‘brand playgrounds’ that prompt people to dream about lifestyles possibilities. Motion-sensor digital walls and interactive mirrors.

INNOVATION AND THE FUTURE• The key to future success lies in reducing complexity.

• Using creative future scenario planning and futures research.

• Be investigative. Explore the places where future already happens.

• Be Multifunctional – Do not think in product categories, think in usage scenarios.

• Business Ecosystems, Economic webs and C&D. The economic and cultural palette needs to be broader.

• Efficiency Innovation, Evolutionary Innovation and Revolutionary Innovation.

• The Seeds of Innovation: Creative Thinking, Strategic Thinking and Transformational Thinking.

• Innovation as Market Disruption.

• Innovation by Co-creation. Community – Based Innovation.

DAILY LUBRICANTS:

the fast growing class of products and services that cater to consumers’ needs for simplicity and the literally lubricate daily life.

INNOSCAPE (a real marketing contribution to the outside world)

NEW ECONOMY

• Social Capital. Voluntary Simplicity. Benefit Corporations.

• Attention Economy. Emotionomics

• Consumers in Control: Made of / by / for consumers.

• Glocal. Deglobalisation. Not made in China. Locavores.

• New Business Ecosystems

• Sense and Respond Models

• Evenomics

• Small Movement

LITMUS TEST – ARE YOU A CUSTOMER-CENTRIC COMPANY?

REALLY?

Is your company intensely customer-centric, facing the future in parallel with customers, in order to thrive in the reset economy and the “new normal” – less financial leverage, sustain…agility, structural breaks, trajectory of glocalisation, insourcing, stakeholder-driven metrics, community-based innovation, shrinking planning cycles, defying the “sea of sameness”, game changing posture, redefining the value equation, finding your “purple cow”, embracing the age of conversation, etc?

THE SENSE-AND-RESPOND ENTERPRISE

• What does it mean to be “sense-and-respond” organisation?

• Businesses and organisations should be designed and managed as systems linked by cross-enterprise processes – as opposed to hierarchical structures or authority.

• The new sense-and-respond business model is helping companies to systematically cope with the unexpected.

…..say goodbye to the old, dry, inward-looking distinctions…..

…..say hello to the rich and fascinating world of….

New PBM²

Demand chain management Customer acquisition

Brand experience delivery Strategic brand management

Innovation management Order-generation and order-fulfilment

Time to market Solutions design

Reputation management and CIC Market to collection

Business intelligence and security Strategic corporate knowledge

Financial appropriation and return Improvement Critical Processes

SMIF Y. = PBM2/PBM =CSM (IL+GNT+V)

• Inspiration leadership, in touch with consumers and their “real” world

• Space, time and freedom for passionate individuals to pursue genuinely new thinking – with a tolerance for failure!!!

• + V

THE FUTURE OF INNOVATION IS

P-2-P• Collaborative, customised, and self-

expanded: Individual wikipedic knowledge knows no barriers, no borders.

• The future of innovation is Kalidoskopical, hybrid, mobile, connected, distributed, articulated, flexible and begins now.

• The human being again is in the spotlight, can be heard and seen as confident and creative in such a new Renaissance.

BUSINESS COLONIES

• Rather than workplaces, there will be business colonies.

• A kind of evolution of our current co-working spaces that we have today.

• People come together for the project and once the project is over they move on to another project.

• Some of the business colonies will be virtual, physical or a combination of both.

• Business colonies will be structured around particular areas such as nano tech, biotech, games development and IT.

A FLOW OF IN INNOVATION IN MARKETING (1)

• Unprecedented Amounts of Data.

• Understand Connection.

• Nexus of Touchpoints with Consumers

• Understand Buyers’ Journeys.

• Do you know who your Brand inspires?

• Design your Company Interactions.

A FLOW OF IN INNOVATION IN MARKETING (2)

• Alienated or Engaged?

• The Mindset Divide.

• As Consumers we are Saturated.

• Choosing Using Social and Brand Filters.

• Visual Speak is the new normal.

• Personalised Location – Based Content.

By being too over-focused on analysis and extrapolation rather than creativity and invention, strategic planning tends to create the illusion of certainty in a world where certainty is anything but guaranteed.

EXPERIMENTATION IS THE NEW PLANNING

• Let’s be honest: You have no idea what’s going to happen to your industry. That’s why you build your organisation into an engine of possibility.

• Technology is chaotic. It affects every industry, often in ways that are difficult (if not impossible) to anticipate.

• An evolving portfolio of strategic experiments.

• Emergent strategy is an organic approach to growth that lets companies learn and continually develop new strategies over time based on an ongoing culture of hypothesis and experimentation.

The new Marketing Innovation agenda is concerned with: overcoming resistance to change; reinventing marketing strategy for a new market environment; prioritising market sensing; innovating radically in product strategy; re-thinking marketing communications; developing value-based competitive advantage; and replacing damaged value chain relationships. The challenge is to prepare for the post-recession environment by re-examining the fundamentals of business models and core capabilities to deliver the superior value which will be demanded by post-recession customers.

STRATEGY IN A ‘STRUCTURAL BREAK’

By strategy, I mean a cohesive response to a challenge. A real strategy is neither a document not a forecast but rather a overall approach based on a diagnosis of a challenge. The most important element of a strategy is a coherent viewpoint about the forces at work, not a plan.

Market-driving strategies – as opposed to market-driven strategies – involve the latest development in the marketing discipline.

Unfortunately, most companies are still practicing their traditional ways, still trapped in their old paradigm of customer satisfaction.

Market-driving strategies have one critical pillar. Value creation, whereby instead of following the traditional logic of industry, firms can learn from the logic of strategy by being different instead of merely being better, breaking industry rules by redefining both the value proposition and marketing activities.

PROXIMAL FUTURE

Companies must decide whether their brands are in the business of just making money, or of changing people’s lives….

Giving them an experience, making them think differently.

LIVING BRANDS

• What are living brands? These are brands that need more than clever promotional gimmicks and guerrilla marketing – they must adopt a Market Sensing, Value-Based Marketing and Prosumption approach.

• What companies have to do to thrive in today’s and in the future business environment is to weave in consumer communities, socialise their marketing and equalise communications rather than sermonize….

Search Marketing aided by a social interaction or a social connection is a paradigm shift in Human Search - - primarily because it does what everyone wants: It delivers “human context” and therefore increased relevance.

Brand Mise-en-scence [Consumer Context + Technology RS!]

IS YOUTILITY the future of Marketing?

• Self – Service

• Radical Transparency

• Real – time Relevancy

• Help not Hype

YOUTILITY- Is marketing upside down.

Instead of marketing that is needed by organisation, Youtility is marketing that is wanted by consumers. It is massively useful free information, that creates long-term and kinship between a company and its customers.HUMAN FILTERED SEARCH(HFS).

CXM: Investment in Marketing Personas and touchpoint satisfaction mapping.

• More focus on use of Customer Personas to help as part of Customer Experience Management.

• Expect the trend of managing ???,maybe facilitating, the total customer experience to continue. CXM signifies a change from a focus on User Experience and Usability of the first touchpoint to broader touchpoint mapping across customer journeys and through the customer lifecycle including evaluation of post sales and support, and customer service.

Investment in Brand Youtility

Youtility where content interactive tools are developed to deliver O²VP.

Use of attribution models to assess media effectiveness.

Google Multichannel Funnels. Google’s earlier developments to bring customer touchpoint point modelling to the mainstream have been added to by the new Attribution Modelling Tool and its Customer Journey Mapping benchmark.

Charting the Co-Creative Model

Moving from ME Branding“EGONOMICS” - Individualisation

To WE Branding“ETHONOMICS” – Group Think

Economy geared to self Economy geared to solutions

Earth separated from Me as “the Environment”

Body: Earthwell – Selfwell, “Earth as my body”.

Relationships: Performance Driven Community Inclusion. Loco Over Local

Recognition: Reputation Driven Relationships: Co-Creation of new collaborative Consumption.

Self-Actualisation: Seeking/Reaching for

Recognition:Contribution of Skills Sets

Self-Actualisation: Inhabiting Life

Meaningful Media is Growing – Charting New Communication Styles (1)

Product – Based toStory and Back storyStoried ProductsVisual Storytelling

Consumer to Participant

Mainstream Media Meltdown (M3)From Broadcasting to MyCasting

Social Interactive

Segmented Message to Invitation, CGA and Voluntary Advertising

Charting New Communication Styles (2)

Quick Consumption to

Long-Term Support, Value-Balanced Outputs, Product PLACEment

Aspirational Lifeto

Co-Created Reality

Idealised,Hyper-Ventilated

toRS DeliveredUPOD

OHBs to HUMAN BEINGSH2H

TECH – ENABLED MARKETING GIVING

Transmedia Planning

• Extending narratives across media platforms.

• Narrative continuity across multiple platforms.

• Creation of original storylines for new platforms.

• Entertainment content.

• MeMedia.

NICHE SOCIAL NETWORKS

• Small is the new Big

• Social Media is becoming increasingly personalised

• Internet users are increasingly seeking connections and content that filter out the “noise” and focus on online conversations.

1. Real-time streams, real-time search, real-time expectations.

2. Social Periphery – mobile computing, current location, real-time searches, social sites (YELP and Urbanspoon), local advertisements, mobile social networks (MOSOSO). SoLoMo.

3. Augmented reality

4. Near field communication – a 2- way, bio-directional RFID, your mobile can work as a tag or as a reader.

5. Real-time responsive retail POS and outdoor.Motion Sensors.Geofencing.

6. The Semantic Web provides a common framework that allows data to be shared and reused across application, enterprise and community boundaries.Transactional Logics.

7. Mentionmap maps.

NEW SOCIAL MEDIA INTELLIGENCE TOOLS

• To learn the meaning and context of data in a way that is similar to humans. Called “Biologically inspired intelligence”. Machine Leaning, useful for understanding complex, unstructured information.

• Application Programming Interface (API) for building learning machines. Adaptive holosemantic data space with semiotic capabilities. Sense-making capabilities for semantic discovery, lightweight anthologies, knowledge collaboration, sentiment analysis, AI and Data mining. “Topic-Mapper”.FOLKSONOMIES.

“If you are not failing every now and again, it is a sign you are not doing anything very innovative…”

(Woody Allen)