Innovation Sales Deck

“A person who walks in another man’s track leaves no footprint”

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Agenda

1. The importance of innovation to your organization

2. Helping you to boost your innovation capabilities

3. Why The House of Marketing?

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Innovation remains a major challenge for Belgian marketers in 20124 out of 10 marketers indicate innovation as a Top challenge for 2012

3

Other

Tightening the collaboration with other departments

Improve your customer insights through the use of data

Better integrating online and offline communication

Proving the added value of the marketing efforts (ROI)

Differentiating from competition

Do more with less due to budget constraints

Innovating to create new markets and get the attention of customers

Creating a dialogue with customers

Making products and services more relevant for customers

3.2%

12.3%

28.0%

28.2%

29.3%

37.0%

37.7%

38.2%

41.1%

45.0%

What are your main challenges for 2012?

% indicating this challenge as one of their top 3 challengesN = 436

Source: 2012 Yearly Marketing Survey performed by The House of Marketing

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Some industry leaders confirming the importance of innovation to your company’s success

Henry Ford

4

Albert Einstein

Michael Porter

Steve Jobs

“If I had asked people what they wanted, they would have said faster horses.”

“Innovation is not the product of logical thought, although the result is tied to logical structure.”

“Innovation distinguishes between a leader and a follower.”

“Innovation is the central issue in economic prosperity”

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Few companies sustain their competitive edge as they lack innovation capabilities

5

Most companies aspire sustainable and profitable growth

But find it hard to keep their competitive edge over competition

In order to maximize shareholder value and create sustainable and profitable growth, companies aspire to

• Increase their market share;• Increase the customer lifetime;• Increase their share of wallet of a customer.

Profitability

Lifetime

Number of customers

Lifetime

Value

No less than 37 NASDAQ100 companies from December 2007 are no longer listed in the NASDAQ100 index.

This means that 37% of leading companies cannot sustain their competitive position for more than 5 years

• Undetected changes in market dynamics• Failure to recognize emerging trends• Complacant attitude after a disruptive innovation• Slow translation of insights in innovations• Lack of proper screening of innovative ideas

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While companies who embrace innovation outperform their competitors in the long run

6

Customer centric innovation requires you to ‘think consumer’

• Customer centric innovation requires the same activities to be performed by your marketing department

• Identifying latent customer needs• Understanding the potential impact of

emerging trends• Scanning of technological evolutions• …

• True innovative companies are capable to translate these findings in relevant innovations to the consumer

• This requires state-of-the art customer insights and understanding of market dynamics

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Yet despite the importance of innovation, it is often only considered after a market disruption

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Bargaining power of suppliers

Bargaining power of suppliers

Bargaining power of customers

Bargaining power of customers

Threat of substitute products

Threat of substitute products

Competitive rivalry within an industry

Competitive rivalry within an industry

• new players enter the market

who change the ‘rules of the

game’

• low margins put a burden on the

required investments in future

growth

• there is a lack of growth

perspectives in the existing

product/market portfolioThreat of new entrants

Bargaining power of new entrants

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A lot of companies face difficulties in effectively managing their innovation efforts

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Slow or inefficient innovation processes

Lack of customer insights and market understanding

Frequently encountered innovation deficiencies

Symptoms of underdeveloped innovation capabilities

• The pace is determined by looking at competitors

• Focus of innovation is limited to product specifications and new services

• innovation is regarded as applying a new technology

• organizations are caught in a trade-off between speed and quality, leading to miss innovation windows

• Many new ideas, but few new businesses

• Caught in a trade-off between speed and quality, leading to miss innovation windows

• Inappropriate evaluation resulting in killing many ideas too early

• Slow innovation process due to unclear attribution of roles & responsibilities

• Product/service innovations irrelevant to consumers after launch

THoM’s answer to overcome your challenges

Voice of the customer analysis

5 lenses methodology

(Re-)defintion of your innovation roadmap

1 2 3

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So what’s in it for you???

“For every year that we’ve tracked the most innovative companies, they have outperformed their regionalpeers in the stock market somewhere north of 200

basis points year after year.”

Source: Bloomberg BusinessWeek/Boston Consulting Group 2010

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Agenda

1. The importance of innovation to your organization

2. Helping you to boost your innovation capabilities

3. Why The House of Marketing?

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Our current innovation offering

Voice of the customer analysis(Re-)definition of your roadmapping

process

1 2

Gain Customer Insights• Identify current and future needs and satisfaction

drivers, especially unmet needs. Understand value and pain points of current offering

• Identify the target / ideal customer profile and quantify Willingness To Pay (WTP)

Improving innovation capabilities & increasing succes rate of product/service introductions• Shortening the innovation cycle• Improving integration of market needs in innovation

processes• Ensuring alignment of innovation resources with

business objectivesOb

jecti

ves

VOC through qualitative research• Understand current & future customer needs and

satisfaction drivers, especially unmet needs• Identify key and non key product features & benefits• Understand value of current offering• Identify the target / ideal customer profile • Calculate expected value and growth of the new

offerings

Acti

vit

ies

Ben

efi

ts

• Clear understanding of value to the customer• Shortlist of consumer driven innovations

Defining roles & responsibilities :• Interviews documenting all tasks• Training with all stakeholders to consolidate all tasks• List all day-to-day operations (RACI)• Refreshment workshop• Established ‘good’ practice time spending on day-to-

day PM tasksDeveloping the optimized processes in a 4 step approach• Analyze AS-IS (desk research & int.)• Workshops to describe the AS-IS & identify

improvement area’s• Workshops defining & validating TO-BE processes

• Documented custom and optimized roadmap process• Clear RACI attribution• Supporting templates & documents• Improved customer orientation

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Agenda

1. The importance of innovation to your organization

2. Helping you to boost your innovation capabilitiesa. Voice of the Customer Analysisb. 5 lenses methodologyc. (Re-)defining your roadmap process

3. Why The House of Marketing?

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A Voice of the Customer analysis is a tool that boosts your innovation funnel with new projects

Time since market launch

Com

peti

tive

ad

van

tag

e

Without innovation your competitive edge is eroded by constant competitive

pressure

Idea gathering is the first step of every innovation funnel

Concept development

Product / Service development

G2M

Post launch

Idea gathering

Focus of Voice of Customer analysis

Competitive pressure

Innovative capability

A Voice of the Customer analysis is aimed at boosting your innovation funnel sufficiently to generate value adding innovations that allow

you to counter commoditizing market dynamics

Product competitive edge

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The VoC methodology should boost your innovation funnel with viable NPD projects

Preparation & Set-up Voice of the Customer Analysis1 32

Agreeing on scope & objectives• Workshop/meeting to define Product-

Market Combinations (PMC) and scope

Preparation of interview guides• Understanding your business and

customers through desk research and internal interviews

• Drafting interview guides in function of your business question

• Initial testing of the interview guides• Intermediary of the interview guides

Planning of interviews• Internal communication in your M&S

department and obtain buy-in for interviews

• Validation of contact list, sample size and composition

• Agreement on scope and objectives• Validated interview guide per PMC• Interview scheduling

Performing VOC• Execution of in-depth interviews• Fine-tuning of sample composition ifo

maturity of the generated findings

Intermediate reporting & discussion• Detailed documentation of all

interviews• Workshops: debriefing of interviews on

regular intervals to maximize in-depth understanding of customer feedback

• Adapt interview guides and/or sample to test the first VOC findings

• All interviews performed• Completed debriefing document per

in-depth interview• Documented initial VOC findings

Analysis• Desk-research complementing the

customer insights generated by VOC• In-depth analysis of the interviews• Workshop with your marketing team to

sanity check main findings

Reporting and recommendations• Detailed report providing deep insight

in the value drivers and latent customer needs

• Recommendations

2 weeks 3 weeks 1 week

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Week

A typical qualitative Voice of the Customer analysis requires 6 weeks

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Key Activities

Phase 1: Preparation

• Briefing on projects by PM

• Project scope & timing

validation

• Prepare and finalize int. guides

• Delivery of qualified contact

list

• Conduct desk/internal analysis

Phase 2: External analysis

• Plan interviews

• Conduct external interviews

Phase 3: Analysis

• Interview output analysis and

preparation of report

Key Meetings

Week 1

Kick-Off

Final report

Week 2 Week 3 Week 4 Week 5 Week 6

StatusMeeting

StatusMeeting

StatusMeeting

StatusMeeting

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The interview guides will help to capture needs and drivers from a qualitative perspective

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Introduction & icebrakers

Needs identification Purchasing process & Competition

Interview conclusion

Sample outputVOCVOC

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Key insights will be reported through a grid format allowing for actionable follow-through

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Sample outputVOCVOC

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Customer profiling and needs assessment allows prioritization, segmentation & focus of NPD efforts

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Sample output

Customer profiling and needs assessment Prioritisation of NPD efforts

VOC

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Agenda

1. The importance of innovation to your organization

2. Helping you to boost your innovation capabilitiesa. Voice of the Customer Analysisb. 5 lenses methodologyc. (Re-)defining your roadmap process

3. Why The House of Marketing?

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Agenda

1. The importance of innovation to your organization

2. Helping you to boost your innovation capabilitiesa. Voice of the Customer Analysisb. 5 lenses methodologyc. (Re-)defining your roadmap process

3. Why The House of Marketing?

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Our process to reshape your roadmapping process

2121

• Collect all existing information concerning the Roadmap process

• Perform focused F2F expert interviews to get input for workshop

• Desk research & analysis to incorporate customer dimension

• Document AS-IS & proposals for TO-BE process as input for kick off WS

Workshop to validate & implement the Roadmap process

• Present final roadmap process to involved stakeholders with defined templates, timelines, roles & tasks

• Incorporate final feedback into the documentation

• Prepare & deliver process results to MT

• Organize implementation (WS)

Align process with EREA, individual stakeholders & document processes

• Align defined TO-BE process with EREA business line to verify feasibility of defined process & templates

• Perform conference call with sales country mgrs & Senior PM’s to discuss defined to-be templates

• Discuss defined to-be templates with involved stakeholders: 3 sessions: PM/R&D/Sales

• Fine-tune documented defined TO-BE process

Workshops to define the AS-IS & TO-BE “Roadmap Process”

Workshop to align with all involved parties on the• AS-IS roadmap process• Define TO-BE process

• Input/output templates

• Timelines• Roles & Tasks

• Refine defined TO-BE process steps after workshop

TA

SK

S

2 3 4

Prepare “Roadmap workshop”

1

STEP

STIM

E

4 weeks 1-3 days 1 week 2 weeks

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The workshops will focus on reshaping your roadmap process by concentrating on 4 steps

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FOCUS ON THE AS-IS ROADMAP PROCESSES

IDENTIFY STRENGHTS/WEAKNESSES

DESCRIBE TO-BE ROADMAPPROCESSES

2

4

1

DESCRIBE IMPROVEMENTS

3

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Evaluation of your current roadmapping process

RACI analysis documenting roles & responsibilities of all internal

stakeholders

RACI analysis documenting roles & responsibilities of all internal

stakeholders

Strengths WeaknessesStrengths Weaknesses

Strengths Weaknesses

• Alignment on roles and responsibilities• Identify missing links

• Identify missing activities• Identify strengths & weaknesses of AS-IS process

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The evaluation of the AS-IS roadmap process will be input to streamline the process

Evaluation AS-IS roadmap process

Optimized roadmap process

• Identify missing activities• Identify strengths & weaknesses of AS-IS process

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We will agree on an implementation plan that will close the gap after validation of the TO-BE process

• Agree on implementation deadline• Overview of all necessary change mgt actions• Identify process owners per action

Validation of TO-BE process Implementation plan

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Agenda

1. The importance of innovation to your organization

2. Helping you to boost your innovation capabilities

3. Why The House of Marketing?

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What makes The House of Marketing different?

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We have a strong vision on marketing …

28

Marketing is a mindset

throughout the whole company,

and only happens through

uncompromising and ruthless focus on

the total process of customer

engagement.

Marketing is a key contributor to

achieve business objectives and to

optimize shareholder value.

Our guiding principles are Focus,

Agility, Creativity, Tangibility and

Sustainability.

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… and a clear view on how marketing must evolve

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• Simplicity• Strategic consistency• Leadership continuity• Prioritize & making choices • Consistent brand across all channels• Seek leadership in specific category• Customer centricity• Focused team

• Detect trends & act• Early warning systems & processes

• Agile & up to date organization• Built around customer

engagement• Willingness to change• Flexibility & Speed

• Innovative company culture• Diversity of profiles• Idea generation process• Idea valuation• Porosity & open-mindedness

• KPI’s & dashboards• Scenario analysis & ROMI• Connect with marketing intelligence• Analytical culture & skills

• People: yours & every stakeholder• Planet: ACT on innovation, packaging, promotion...• Profit: business-minded marketers

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We are convinced that flexibility is a key asset for the futureto bridge capacity gaps...

30

Resource Demand Chart

1/95 4/95 7/95 10/95 1/96 4/96

0

1,000

2,000

3,000

4,000

5,000

FTE (hours per month)

Project 1Project 2Project 3

Project 4

Capacity

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…. and to bridge competence gaps

31

SocialMedia Strategist

Project Management

CR

M s

pecia

listShopper marketer

Performance management

CPM specialistOnline specialist

Mob

ile m

ark

ete

r

Web master

Data cruncherE-commerce

Packag

ing

………

……

…

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Flexibility demands the right talent at the right place, & on going training

The House of Marketing can help you develop and keep the right talents in your marketing department.

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Training

Coaching

Relevant Marketing training, from general to very specific & tailor made

- product management- project management- communication (online, offline)- social media- email marketing-……

Personal coaching focused on marketing related skills and technical skills

Marketing Talent program

Coaching on the job, one company or multi company program, more details available as from October 2012

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We offer help adapted to the new business context

33

In a economical environment where turbulence is the new

norm, The House of Marketing provides marketing

excellence at the right moment, exceeding clients'

expectations by delivering higher return on investment and

by making the organization more agile.

We achieve this by recruiting passionate marketers for

whom we create an inspiring and nurturing environment.

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How do we work?

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Brand Managers

Broad FMCG experience Coordination activities of

specialists in production, sales, advertising, promotion, R&D, …

Churn analysis, churn reduction

Product placement optimization

Business Analysts

Market & competitor analysis

Market assessment & quantification

Clustering of customers

E-Marketers & Social Media

Specialists

E-strategy definition & roll-out

Coordination, design & implementation of e-marketing actions

Website management, email marketing, social media, mobile

Marketing Managers

Channel & Category Managers

Process Managers

B2B and B2C environments

Marketing plan, go-to-market strategy & implementation, people management, business intelligence

Coordination of Marketing activities

Strong analytical and negotiation skills

Enhancing retail partnerships by increasing category sales and aiding in fact based/strategic selling

Extended experience in SME and large matrix organizations

Alignment of organization towards similar goals

Clear roles & responsibilities definition, organizational design

We work on temporary assignments….Mostly function based

35

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… and on strategic marketing challengesMostly project based

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• Attract new customers• Increase customer spending• Reduce customer churn• Increase Innovation success rate

Volume driven

Margin driven

Positioning

• Restore customer trust• Capture more customer value• Margin management• Doing more with less resources• Tracking of ROI

• Define or redefine positioning• Changing customer experience from product push to relational (customer-centric)

• Positioning on the sustainability dimension

• Positioning towards current and potential employees

• Customer intelligence: translate data into relevant insights

• Segmentation• Business and marketing planning• Innovation Management Program

• Customer intelligence: translate data into relevant insights

• Category assessment• Marketing performance management (ROMI, CLTV, dashboards)

• Marketing audit

• Consumer intelligence: translate data into relevant insights

• Customer (store) experience• Sustainability• Employer branding

Consumer analytics and insights are crucial for each of the three challenges

Client challenges THoM expertise & solutions

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We offer a unique combination of strategic excellence and operational pragmatism

37

We help you in realizing more from your marketing strategies and building the marketing capabilities for systematic results

Operational pragmatismStrategic excellence

• Proven track record in strategic marketing advice

• Creating relevant insights in the business

• Identifying the true leverages for significant improvements

• Turning opportunities into structured and prioritized business initiatives

• Track record in making things happen within international and complex companies

• Applying practical knowledge of successful corporate sales and marketing organizations

• Turning initiatives into tangible actions

• Helping you to successfully implement strategic recommendations

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We deliver tangible value by bridging the knowing doing gap…

38

Operational pragmatism

Strategic excellence

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We have different meetings during an assignment

39

2200706-CBC-PresentationTHoM.ppt

– Draft –

Developing targeted expansion strategy for a Luxembourg based private life insurerStrategy, organization and marketing

Project objectives

Methodology

Deliverables

Build methodology and framework for country-specific go-to-market launches based on learnings from first failure on the I talian market in private life insurance asset management

• Analysis of the fact base and decision on targets- Life insurance business

• Market structure and distribution options• Cross-border revenues

- Private banking business• Market structure and differentiation• Expectations of wealthy individuals• Off-shore business aspects• Value and tactics of wealth managers

- Bancassurance model options in private banking- Detailed geographical study on I talian potential- Understanding of wealthy individuals

• Wealth classification• Identification of advisory circle• Trend in family offices• (Family) business activity and influence of private equity and

venture capital• Positioning study and go-to-market draft• I mplications for organizational and branding requirements

• Organizational roadmap and risk management• Design of go-to-market model and potential• European-wide positioning strategy and implementation

Knowledge Capture Matrix Client: Sodexho Pass - Apogheos Consultant: Olivier Olbrechts Project: Business Plan Date: 27/08/07 Comment: Interim (project) All documents on project saved here. Final Deliverables. Credential to follow STAKEHOLDERS Learnings from

the way the client works

Learnings on how THoM could work better

New products or services

Marketing domain/ methodology improvement

Relationship opportunity (executive contact, idea)

Client agenda sell-on opportunity

Industry trend/ insight

Competitor information

SALES Account Team

Apogheos = Business Unit that has to be integrated into the Group if return sufficiently attracting to Sodexho Group

Proposal in process: coaching during the implementation of the business plan

- Small independent firms with low potential for consulting/ interim - Exceptions (potential clients ?): BCD Group, Accentiv (FR)

No other consulting firm identified in this part of Sodexho

DELIVERY Marketing Domain:

- No THoM methodology used - Business Plan template created from scratch

- Sold as interim project but could be more profitable sold as consulting

- Formal approach and deliverables could have been more clarified prior to the project

Develop a standard financial business plan spreadsheet template)

iii team: No B2B Services team

Task ID Week Project name Action/task description

Task owner Follow-up persons

Priority Status Start date Due date Date finished

Comments/issues

Issue description Decision Decision taker

Due date

123456789101112131415

Decision to take

LAST MODIFIED:

….…..Coordinate client event

….Product chart (branding, positioning, USP, …)Launch approachLaunch packageOrganization concept testFollow-up launch

Launch Product Y

End 2007Market analysisRGO identification + estimated revenues & final reco + budgetBrand strategyAction plan 2008

Define MLT strategy for product X

DEADLINEDELIVERABLES PROJECT

….…..Coordinate client event

….Product chart (branding, positioning, USP, …)Launch approachLaunch packageOrganization concept testFollow-up launch

Launch Product Y

End 2007Market analysisRGO identification + estimated revenues & final reco + budgetBrand strategyAction plan 2008

Define MLT strategy for product X

DEADLINEDELIVERABLES PROJECT

1st call

Visit by SSOMgr

Client Name or LOGO

Title of Function/project

Proposal for Interim Management

Month Day, 2007

Proposal sent

InterviewConsultant(s)

Contractsigned

Client Name or LOGO

Title of Function/project

Proposal for Interim Management

Month Day, 2007

PROJECT DELIVERABLES DEADLINE

Define MLT strategy for product X

Market analysisRGO identification + estimated revenues & final reco + budgetBrand strategyAction plan 2008

End 2007

Launch Product Y Product chart (branding, positioning, USP, …)Launch approachLaunch packageOrganization concept testFollow-up launch

….

Coordinate client event ….. ….

3Project status reports Liesbet 27 December.ppt

Project status report

Activities completed this reporting period

Resources

Outstanding I ssues/ Main Risks(1)

NovemberThomas DCMeeting Thomas with Philippe.

Need alignment on the real needed requirements and which budget we can have for it.

Due DateResponsibleActionsI ssues & Risks

Product Management PlatformPrepared by: Liesbet VandenberghePeriod: from 25/ 9 to 20/ 10 week 6

Decision to take(1)

Due DateDecision MakerDecision

Activities planned for next reporting period

Planning Risks Scope

Didier VDH will have a meeting to fine tune the requirements

Central marketing will have meeting about the next steps and how we see the current project management tools in this project.

Running

Supplier gave demo.

Didier VDH got input to make draft of technical requirements

We have now a list of general requirements

(1) Format could be simplfy for simple project

Objectivesfinalized

Engagement follow-up

Evaluation

Knowledgecapturing

From initial call till 2 first weeks During the engagement Closing the engagement

Internal EPR

ClientEPR

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You are always hiring a whole team of marketing specialists

40

Hiring a THoM consultant isn’t just hiring a person, it’s acquiring expertise:

•THoM consultant: your day to day contact

• Counselor, Client Manager and Mentor: first help, coaching and stretched goals for the THoM consultant

• All THoM consultants with their specific skills, expertise and experience: the second resort for the THoM consultant

• THoM knowledge base (training, career development plan, books, papers, former projects, experience of previous THoMers)

Visible

Invisible

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We deliver Marketing expertise in four areas

41

I. Strategic Marketing

II. Go-to-Market

• Market Intelligence• Segmentation• Branding & Positioning

• Pricing• Product/ Brand/ Category

Management• Communication (offline &

online)

III. Organization capabilities

IV. Performance Management

• Customer Process Management

• Organization & Change Management

• Customer Experience

• Marketing Dashboards• Marketing Performance Management• Customer Lifetime Value & ROMI

• Business & Marketing Planning

• Employer Branding• Sustainability

• Social Media• Shopper Marketing• Customer Relationship

Management

• Marketing Audit• Marketing Coaching &

Training

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For whom do we do this?

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ICT & Media

Utilities & Resources

Financial & Other

Services

Healthcare & Public Sector

Transport & Logistics

We have clients from many different sectors (1)

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Consumer Goods &

Retail

We have clients from many different sectors (2)

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Durables & Industrial

Goods

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“We appreciated that the THoM team supported us in the bottom up approach involving customers,

prospects, sales, specialists.” (Danny Vandevyver, Head of Marketing

Com Belux)

… talking about the tangible value delivered by The House of Marketing

45

“THoM’s pragmatic approach is to me a key differentiator, as they are able to talk the language of

actual executors and to predict or foresee many operational issues we need to tackle.”

(Ronald Hannet, BU Manager)

“THoM succeeded in creating change thanks to their straightforward and efficient solutions and

approach.”

(Michael De Koster, Segment Manager)

“The added value of THoM is that they do not only deliver strategic advice, but their recommendations

are tangible and can be implemented.”

(Luc Deflem, CEO)

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Your point of contact

46

The House of Marketingtel: +32 (0) 15 444 000E-Mail: info@thom.eu

The House of MarketingKardinaal Mercierplein, 2

B-2800 MechelenBelgium

Fax +32 (0)15 444 044www.thehouseofmarketing.be

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