June 22, 2014
VCU
45 Main St #220 BKLN / 718 625 4843 / hugeinc.com

Business Strategy and
Planning.
June 19, 2014

Thank you.

Not So Much!

Everything becomes connected.

From our products.

To our cities.

Connected devices and identified objects
provide smart context and opportunities for
a value exchange.

Internet of
Things
Moore’s Law
Big Data & Analytics
Metcalfe’s Law
Source: Morgan Stanley

Are the applications just gimmicks?

No bad eggs.

Or are there real benefits?

Helping us drive better.

Our existence is being
quantified

Self-knowledge through self-tracking.
Self
Environment
Food
consumed, air
quality, location
States
Mood, heart
rate, arousal
Actions
Mental &
physical
performance;
behavior,
purchases
Source: Wikipedia & Huge

Tracking all sorts of activities.
Physical activity
Sleep quality
Caloric intake
Posture
Blood pressure
Location
Preferences
Commerce
Relationships
Communications
Intent

Seven out of ten adults track a health indicator.
60% of US adults say they track weight, diet or
exercise.
33% track health indicators like blood pressure,
blood sugar or sleep patterns.
12% track health indicators for a loved one.

Apple sells >20 self-tracking products.

Wearable technology tracks physical activity.

Diapers monitor functions…

We track our purchase history.

We track our relationships.

Where we have been.

What am I going to do?

In effect, people are digitizing
themselves.

What does this mean for
Planners and Strategists
and the brands and
businesses they work on?

27
Whatdoesthismean...
1.Philosophy.
2.Process.
3.People

Philosophy
What does mean …

Customers first.

Users first.

Brands are built on values, mission
and beliefs.

Brands are built on values, mission, beliefs
and capabilities.

Brands generate revenue by selling products.

Every product is the basis for selling a
continuous service.

Create campaigns.

Create and make things.
Participatory. Iterative. Valuable.

Strategists should be responsive.

Strategists should be responsive
and agile.

Process
What does this mean …

Strategic
Idea
Business Context
& Opportunity

Determining the business
context and isolating the
opportunity.

1. Imagine the digital business
2. Get the organization right
3. Force a realignment of resources

Imagining the digital
business.
Managing the shift:

Last decade was about adoption.

Ifyou’renotonline,
youdon’texist.
- Millennial (Huge user research)

Idon’tevenownacomputer.
- Millennial (Huge user research)

Whatdoyoumeanit’snoton?.
- Ken’s kids

$5.5 BTotalPizzaHutRevenue(2011)
$2.0 BTotalPizzaHutOnlineSales(2010)

100%

Restaurants
Marketing
Website

Restaurant as
billboard
Ecommerce

Old Model: Web drives to store.

New Model: Store drives to web.

Digital sales and customer service
Distributed manufacturing and fulfillment
5,000+ local
distribution points
Rapid delivery
Pizza Hut Business Model.

Digital sales and customer service
Distributed manufacturing and fulfillment
50+ local distribution
points
Rapid delivery
Amazon Business Model.

Ecommerce logistics companies
Amazon was built that way.
And Pizza Hut?

Online&Digital-InfluencedSalesasaPercentofOverallSales

Like it or not, everyone
is in the technology business.

AQuestion
What will your business look like
when it is 100%* digital?
*

Business model?
Customers?
Competitors?
Strategic partners?
Competitive advantage?
Organizational structure?
Resources and skillsets?

Leadershiptodayrequiresasearchfor
new,inherentbenefitsandadjacent
opportunities.

Extend value by exploiting the
native capabilities of the
channel.

Start with the user need and the new
behavior.

Challenge core business
model assumptions.

Challenge long-held core assumptions.
Do we really need these people?

Assess how context creates
value.

Delivering content at the point of
care.

Identify the best opportunities.

Understand the
user need (and the
numbers)

Organization &
capabilities.

Users expect a
consistent, smart
experience.

Yet companies still manage
development from the inside out.
Digital Org
Website
Digital Marketing
Social
Offline Org
Physical Stores
Offline Advertising
Mobile Org
Mobile Web
Apps

Companies should manage
user initiatives as integrated
products,
not siloed channels.

Defining the right digital organization
has never been easy.
1995 2000 2005 2010 2020
Emerged out of
central IT
Dedicated
Internet BU’s;
marketing led;
Spin-offs Centralized
services
Matrixed &
Fragmented
Integrated
Teams

The competencies required for
digital development keep getting
broader and more sophisticated.

Front-end
Developers
Back-end
Developers
Platform
SMEs
UX
VD
Business
Executives
Analytics
Digital
Marketing
Program
Mgmt.
Mobile
Developers
Offline
Marketing
SEO Social
Marketing
Specialized roles are proliferating.
Content
creators
Product
Managers

The mix of internal and external
resources adds to complexity.
Front-end
Developers
Back-end
Developers
Platform
SMEs
UX
VD
Analytics
Content
creators
Digital
Marketing
Program
Mgmt.
Mobile
Developers
Offline
Marketing
SEO
Social
Marketing
Product
Managers
Business
Executives

Digital businesses require agile
teams but still operate with
fragmented resources in isolated
silos.

Complexity, speed, and cost will drive
return to integrated teams.
Business Unit Executives
Front-end
Tech
UX
Product
Marketing
Dedicated
Resources
Back-end
Services
Analytics
Brand
Marketing
Shared
Resources
VDContent Mobile
Product Management

Key capabilities gaps.
Competency. Gaps.
• Product Management • Managing strategy and trade-offs
• Content Strategy • Authentic content authors
• Media creators
• Content strategists
• Social media • SMEs
• Managers, Editors, Analysts
• Analytics • Digital Analysts
• Data Scientists
• Mobile • SMEs
• Developers
• Technology • All…

To create great
digital experiences
build a product
organization.

Realigning
resources.

In aggregate companies are
underinvesting in digital.

Source: KPCB

Showing the value & ROI of digital
isn’t always straightforward.
• “What is the potential
impact to the business?”
• “What is wrong with the
current site?”
• “Why does it cost so much
to do this?”
• “How will this affect
existing revenues?”
• “Why can’t we add this feature
that I’ve seen on another
website to our site now?”
• “We don’t have enough
resources to support that
update now, it’ll take 12
months to get it in the queue”
Answering
“Why?”
Prioritizing
initiatives

Growing digital revenues often requires
cannibalization.
• Pricing
• Channel shift
• Elimination of traditional revenue streams
• Changing expectations of payback period/level of investment required
• Forced realignment of resources

Work flows to competency.

Organizations can accelerate
change by marrying top down
leadership and macro
re-allocation of resources with
emerging engines of growth.

Understanding and
applying the user need.

User Myth 1:
New insights exist

Insight = information + context

User Myth 2:
Research has all the answers

Data is a valuable crutch.

Clues are everywhere

Don’t ask observe

User myth 3
They know what they want

Technology creates expectations.

Expectations transfer behavior

Expectations lead to needs and desires

The Un-spoken Need

103
TheUnspokenNeed.
1.Solves a problem.
2.Sets expectations
3.Can be incremental

Go beyond the “Un-Met”
Aspire for the “Un-Known”
And you willfind the “Un-Spoken”

Defining the brand
capability.

What you stand for in the heart, mind and wallet of
the your user
Abrandis…

Tendency to overcomplicate

In truth brands are simple

109
Agoodbrandis.
1.Focus.
2.Meaning.
3.Conviction

Mission
What drives us
Beliefs
How we achieve the mission and vision
Vision
Define where we want to be

Mission
What drives us
Beliefs
How we achieve the mission and vision
Capability
What we enable for our user
Vision
Define where we want to be

What is a brand capability?

Addresses an Un-spoken need

It is active and participatory

It delivers the brand’s vision, mission and beliefs

Determine what the brand
should say, do and ENABLE
Aplanner’s role

Strategic
Idea
Business Context
& Opportunity

People

One size does not fit all

Encourage the T

Evolve roles and job descriptions

Cast people don’t assign roles

Experiment

Questions?

April 15, 2014
Nestle Capabilities Deck
45 Main St #220 BKLN / 718 625 4843 / hugeinc.com