laura mcfarlane - strategy & the agency model - 4a's strategy festival 2013
DESCRIPTION
TRANSCRIPT
Strategy & The Agency Model
Adapt, evolve or else Laura McFarlane, VP SapientNitro
We can no longer look at change as a transition. Rather, we need to permanently embrace it as a catalyst for growth.
Agencies need an “un-model”
What’s Changed?
Rethinking strategic planning
FROM TO
Fundamental Changes in How We Go About our Business
“Your remit now includes being a data jockey, a brand leader, and an innovator.”
- David Cooperstein, Forrester
In fact the whole Shape of our work has changed
Rapid cycle testing and ongoing interpretation – analysis fuels optimization and adaptation
PLAN EXPERIENCE MEASURE
Intelligence Experience Evolvability
We Make Strategies Organize Around Three Principles:
Intelligence
Every two days now, we create as much information as we did from the dawn of civilization up until 2003.
- Eric Schmidt
One billion pieces of content are shared via Facebook’s Open Graph daily.
The volume of data created by US companies alone is enough to fill 10,000 Libraries of Congress.
A retailer using big data to the fullest could increase its operating margins by more than 60%.
-McKinsey
Data Evolution of Data. Where we’re going and when.
More than just data: Intelligence
Breadth of Inquiry, Skills, Methods
BUSINESS VALUE
COMPLEXITY OF ANALYSIS
DATA INFORMATION INSIGHT RECOMMENDED ACTIONS
TACTICAL ANALYSIS
STRATEGIC ANALYSIS
“What has happened”
Standard Metrics ‘Historical’ analyCcs (sales data, etc) User profiles
“Why has it happened?” AJtudinal segmentaCons Behavioral segmentaCons Life stage segmentaCons Process descripCons &
models Modes of behavior
Modes of use
“What do you want to have happen?”
Agent-‐based modeling
Strategic planning acCviCes
Inventory planning MarkeCng mix
Macro-trends longitudinal forces influencing societal or platform shifts
Human-intelligence blended qualitative and quantitative understanding of why trends and behavior are what they are
Micro-behavioral the actual behavior of people captured through analytics across digital touch points
Machine-driven real-time responsiveness driven by both immediate behavior and regressed behavioral frames
Res
earc
h A
ctiv
ity &
Insi
ght D
epth
Strategy / Operations
Operations /Optimization
Touch-point Optimization
Purpose Time scale Type
Strategy
Weekly – quarterly
Daily – monthly
Real-time
Monthly – quarterly
Deep Analysis
Consumer Intelligence Process
Mission Control
What it Means for Strategists Evolve and organize around new notions of intelligence
Getting good with data
Designing experiences that not only generate data but can continuously be improved by it.
Experience
Connected Consumers, High Expectations
Challenge: Putting consumers into context
How consumers live their lives.
Connection with the category and marketplace.
Connection (if at all) with the brand.
Identify and model the opportunities.
Identify connections and nature of the experience.
Assign role and function and metrics to each connection.
Determine Return on Experience.
View Product on
a PC
View Banner Ad
Download An App
“Like” a Product on Facebook
Out of Home Poster
Watch Video on Tablet
TV Ad
Check Twitter
Seek Opinions on Social
Read Blogs
Join Loyalty
Program
Share Link on
Add to Cart
Read Ratings
and Reviews
Interact With A Kiosk
Text Picture to a
Friend
Website
Go to Retail Store
Interaction With A Sales
Associate
BUY
Build Worlds not Ads VALUE + MEANING STORIES =
CONTEXT + ACTION SYSTEMS =
“STORYSCAPING”
Purpose, People and Product are all we need.
Building “Worlds” that Don’t Need Marketing
• Nike's spending on TV and print advertising in the US has dropped by 40% in just three years, even as its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year
• Where is the money moving? To connected product development, digital and social service platforms where communities can engage more deeply with the brand.
Vail Epic Mix
What did Vail get?
Return on Media & Channels: 300,000+ members, and counting
38,000+ using the app. growing
Over 300M social impressions, growing
Traditional ROI Benefits: 2013 revenue up 13.1% sequentially
Overall, 30% growth in revenue from 2009
Skier visits up 5.5% in 2013
Millions of USD Total Mountain Net Revenue
$638 $752 $766
2010 2011 2012
What’s Different?
• The role of content in the story – social, location, context
• Allows hero in the story to craft the narrative
• Enables connection between people, places & brands
• Always-on, joined at any time or place
• Has an underlying connections platform
• Real-time data and analytics
• Aggregating data over time yields massive advantages
New tools for understanding and measuring experience
• Sensors and instruments
• Qualitative as well as quantitative data sources
• Always on, dynamic models of behaviors
• Analytic tools
PEOPLE
PLACES THINGS
Interactions
Perceptions
New dimensions for assessing…
And new models for measuring
ROX
BRAND & MARKETING
ROI
RETURN ON MEDIA &
CHANNELS
EXPERIENCE OPTIMIZATION
FIT ACCESS SENSE CONTINUITY CONTROL
Build slide in 2 stages (top and boZom)
What it Means for Strategists “Crowdsourcing” the Strategy
MEDIA
CONTENT
CREATIVITY
ANALYTICS SOCIAL
TECHNOLOGY
STRATEGY
UX
INSIGHTS
Evolvability
1. the capacity of a system for adaptive evolution.
HACKER PLAN MORE LIKE A
Driving Growth
Creating a system for incremental innovation
Agility to continually adapt to the changing landscape of consumer and technology
Designing growth into service and product
Having a “Growth Hacking” department
Rapid cycles between Intelligence, Marketing and Product.
Leverage data and insights to generate hypotheses, put in market and test on an ongoing basis.
Refine, course correct.
What it Means for Strategists Speed & Agility
To Sum Up…
The Un-Model; New Skills and New Processes Required to Work in Concert
4 RULES:
Strategy is drawn from a wider range of disciplines; Intelligence, Experience and “Growth Hacking”.
Technology is now table-stakes. Deep and continuous investment in consumer intelligence and data will define us.
Massively distributed skills and deep, constant, agile collaboration. From disciplines to ‘pods’.
From waterfall to agile or scrum. A nimbler approach: continuously iterate technology and experience based on findings.
THANK YOU