Tuesday 19 August 2008
Which way to go
I'm condemned to ask questionsI remember the battle of big thinking conference where we spoke about the generation Y. Apart from being very comfortable with new technologies and more likely to change career and country frequently; findings said that they also seem to question themselves and the world a lot more than the previous generation. If I don’t know how much these findings are true, I actually recognize myself pretty well in this description. If this was not enough, I’m working between two industries: the communication industry, which struggles redefining itself and the digital industry which is disturbed day in and day out with continuous changes. It seems that, in this environment, I’m really condemned to only increase the number of questions I have in my mind.
Why is there a gap between what we say and what we do?
In my day to day job, I mainly involved with resolving communication issues for my clients using the interactive medium; but, on the other hand, I spend my time reading articles from my peers which don’t really seem to go in that way. Liz Ross, “To win, don’t hide behind false brand pretenses” which rightly supports the fact that appearance without true innovation is meaningless; Mike Follet, “Use or Ornament” which explains how being useful makes business sense for Tribal and our clients; Matt Dyke, “When worlds collide” which supports the fact that over the next ten years, all agencies will need to elevate their focus around the application of technology; or even my own “Experiment with experimentation” which supports the importance of experimentation to better use start-up ideas and maybe later challenge our time based model. For me, all these articles don’t really speak about either the communication industry or what I’m supposed to be involved with on a daily basis. And still, these were just few examples among many more from R/GA, Anomaly, IDEO, up to management consulting firms. The result is that I’m getting more and more confused because of the gap between what I am supposed to do on a daily basis and what I’m reading or am excited about.
Therefore, the purpose of this paper is to question whether or not we can reduce the gap between what we talk about and what we do?
Can we close this gap?
By understanding a bit more why so many people seem to be talking about these challenging thoughts as well as why it seems to be difficult to then apply these in our daily business, I might be able to get a better sleep. This gap is, from my point of view, mainly due to a misunderstanding on the buzz world “integration”. As in every business, you can see integration horizontally or vertically. It’s the same here in the marketing world. You can either say I’m in the communication business and I will develop my knowledge across all media. Or say I’m expert in digital and will develop my expertise across the other marketing disciplines. I don’t think we figured out which path to take as, for now, we definitely work in the former but speak more frequently about the latter. If I’m personally more excited in the latter because I think it could be an opportunity to come back to what an agency looked like in the 60’s where we were much more an extension of the marketing department, I don’t think one is better than the other for Tribal DDB.
In today world, marketing managers struggle to be listened to in board rooms because of the increasing pressure of financial markets and the financial discipline they impose. As a result, they are pushed toward the soft world of communication and reduce their influence over other marketing Ps. New products and services development, distribution and pricing strategy are now often controlled by other departments of our client’s organization.
As an agency, by going beyond the communication and using digital to create new products or services, explore new ways of distribution and why not ultimately developing new business model opportunities that change the pricing strategy, we might help them get back some influence in the board as well as allowing ourselves to go beyond the fixed marketing budgets. Of course, it is not easy and it would require new skills within your organization but it’s seems to be challenging isn’t it.
Digital convergence is not only about technology anymore. In the convergence 2.0 report, the Boston Consulting Group said: “Convergence involves a series of ongoing discontinuities in technology, infrastructure, consumer behaviour and competitive dynamics that are creating new competitors and business models and are redefining a wide range of industries besides media, telecommunications and technology. These shifts are already starting to ripple through many sectors of the economy, including health care, banking, advertising, and consumer goods.”
That’s where I think we should help our clients and use digital disruptive changes as a source of innovation for their businesses. It is the idea that advertising shouldn’t be used as a band-aid for a poorly thought through product or service. As we are customers too, we should ask ourselves: What’s the point of having the best piece of communication if the retail experience either in store or online are painful? What’s the point of having the best piece of communication if, when you ultimately buy the product, you don’t have a good experience using it? I think that digital can allow our clients to better integrate these customer experiences as it is now omnipresent in the entire buying process.
So then, if it seems very valuable for us and our clients to adopt such an approach and go beyond communication to use disruptive changes that digital offer to create integrated customer experiences, why it seems to be difficult to apply in our business?
Why would we?
First, as Lynda M.Applegate, teaching the challenges of building new ventures and business innovation at Harvard Business School, said: “Established companies often approach innovation and disruption much differently. Having worked hard to align strategy and organization to support the current business, they develop tunnel vision, encouraging employees, clients, suppliers, and partners to work together to deliver today’s business results. Even when disruptive opportunities are identified, tightly aligned organizations, business models, and industry relationships make it tough to respond quickly and effectively. As a result executives in established firm often frame disruption as a threat. When they see changes happening, they work to defend their existing business model and ask How can I insulate against these disruptive threats and preserve my current business model?”
By convincing digital agencies to focus on communication, the communication industry, which we are part of, thinks it can preserve their current business model as well as taking some advantages of the growing digital advertising market.
Second, in the short run, it might indeed not be legitimate to redefine our role because, as Mike Follet pointed out, “Business is going fine as it is, thank you very much”. Indeed, why would we change our business and risk to go in unknown areas whereas we are around a 20% PBT margin and a yearly 40% growth in revenues?
Third, as pointed above, there is currently only a few percentage of our workforce with the skills to go beyond communication which would require important changes in our organization.
Can we at least give it a try?
Well, it seems I don’t have much rational argument against what we do then. Therefore, I still have no real explanations apart from personal motivation and the fact that we might feel it is more valuable as a business in the long run. Hang on a minute; is it not what we call “entrepreneurial intuition” though?
Then, maybe we should at least give it a try and help agencies to build an innovation team to experiment this slightly different model. An agency where management consultants, technologists and experience architect would work among us, partners and newly created joint ventures. They would focus on resolving business problem using a creative thinking and digital technologies.
In the long run, this could give agencies a broader experience in the digital age, a better legitimization in other consulting areas and last but not least reduce the gap between what they do and what they say which will help me to get a better sleep.
If you think “Advertising shouldn’t be used as a band-aid for a poorly thought through product”, help your clients make better thought through products or services then.
By Vincent Thomé , Tuesday 19 August 2008 at 16:24 in Strategy















