Archive for the 'business' Category

06
May

The Big Apple is big on Design biz

Bruce Nussbaum asks if New York is the new innovation and design center. I say “Yes” to design hub, but no to NYC as an innovation center. Here’s why:

Big Design companies are focused in NYC
Advertising Age recently came out with their 2008 agency report, which has a list of the top 25 ad agencies by revenue.

Ad agencies are not design companies (yet), but the line between product and marketing is blurring rapidly, and at the same time, digital marketing is growing as an industry — in the double-digits. Some of the big shops out of NYC: BBDO, McCann Erickson, OgilvyOne, JWT — all with interactive arms.

And then as s Bruce points out, there are a sh*t-ton (yes, that’s a technical quantifiable term) of small but leading design firms moving to or newly focused in NYC (Jump, IDEO, Frog, fuseproject).

But Innovation comes from small shops elsewhere
It’s no secret recipe that innovation comes from areas with strong academic environments — learning hubs like Boston (MIT’s Media Lab, Harvard), Pittsburgh (Carneige Mellon U and the Entertainment Technology Center), or Chicago (Institute of Design, Illinois Institute of Technology).

In fact, Pittsburgh is a great case study — Google opened up an office there because of the rich talent coming from Carnegie Mellon.

So yes, something is brewing in NYC — the ad/marketing industry is undergoing a transformational shit to a design-focus — and NYC has always been a hub for advertising.

And innovation can still be found where you might least expect it — the dark corner room with the jolt-cola fueled masters candidate. Ahh, I miss those days at the ETC.

Cars

05
May

Towards the Customer-Centric Organization

There’s exciting thought brewing right now about how user-centered design and customer experience thinking can impacting, not product or website design, but the very building blocks of business, like org charts, process flows, even manufacturing. As companies realize they need open up their marketing mentality, so are a handful applying that thought to other areas of business.

I came across three great ideas which tie together nicely as a process for large companies to transform themselves into Customer-Centric Organizations — plus a fourth step of my own.

Step 1: Restructure your organization through you customers’ eyes
The customer-centric org cuts out silo-thinking, which is an efficient yet dated approach, and focuses on defining business structures by their end state. Adam Richardson has an idea called Org 2.0: “a new business organization - one that is optimized for complex systems of problems and solutions, rather than based on silos focused on specific functions, and which treats user experience as a core organizational axis rather than a meddlesome add-on.

Step 2: Redefine areas of your business to focus on the customer experience first
Zeus Jone’s Adrian Ho takes his idea of marketing-as-a-service and came up with Operations as marketing:

operations as marketing from ZJ

A quick What-if example: What if every Netflix DVD was tagged with an RFID chip, so that Netflix customers could log-in any time and track how many DVDs of a hit title are left to rent, or where their DVDs are in the mail — so they can know exactly when they’ll arrive? Adrian’s idea what to have RFID attached to American Apparel products, and create a social network based around American Apparel’s employees — get to know the people who actually create your clothing — which ties deeply into that companies anti-sweatshop brand.

Step 3: Transforming into a Customer-Centric Org requires an Agent of Change
What’s needed to get there? An executive leader with empowered with full authority and responsible for the customer experience. That’s what Bruce Temkin’s research on the Chief Customer Experience Officer is all about.

chief customer experience officer data from Bruce Temkin

(Bonus) Step 4: Empower each employee to become an owner of the customer experience
Great customer experiences ultimately don’t come from executive leadership or biz processes, but from those employees on the front lines, dealing directly with customers (and earning far less than people who never see a customer’s face — ironic isn’t it?)

Design personas and brand positioning documents — two tools used internally by design teams — can actually be shared across departments to help employees better understand their customer and how to speak with them. What if a call center rep had brand positioning statement that gave them a better sense of what the company they’re portraying stands for. Or what if a business analyst had a design persona, to make process flow decisions based on users, not shareholders. Ultimately, its your customers that effect stock price, not the daily emotional roller-coaster of Wall Street.

01
May

Everything I Need To Know About Marketing I Learned From Prince

A bunch of bloggers have responded to a meme about the impending 10th anniversary of The Cluetrain Manifesto — a set of 95 theses proclaiming that the business world needs to humanize and be more communicative with consumers.

cluetrain logo

Now, pardon me if that brief synopsis wasn’t accurate — I’ve never actually read Cluetrain, just have heard of and about it from numerous colleagues. But the essence of the book is so agreeable and obvious to me — it’s what Forrester’s Social Computing (Groundswell) is about. It’s Web 2.0, social media, yadda yadda (although Cluretrain having been published in 2000, was way ahead of its time).

But as Jason Falls points out in his meme response, the business world still hasn’t caught up after a decade:

“We’re nowhere. Social media and true consumer-centric brand behavior is prevalent in the technology bubble and few other places. While adoption has been steady and progress has been made, the premise of the book hasn’t exactly “gone viral.” Businesses in general still think bottom line and “what’s in it for me,” first. Advertising still sucks, is loud and intrusive. And consumers still have little reason to trust brands, companies and even folks like me – marketers trying to connect them with products and services that fit their needs.”

Time and again working with Forrester clients, I notice how they struggle to “get it.” Even execs at great, well-respected brands have a hard time embracing social media and allowing consumers to own their bread and butter, and an especially difficult time getting buy-in for things like social networking or participatory design from higher-ups. And I can’t help but wonder how much of this is a generation gap — and will simply take a generational leap.

I’m 26 — the end of “Generation Y,” born 1981. My so far short career in the business/design/marketing world has always lived both feet in the Web (I first signed on when I was 12 on a 486). I read up on black and red boxes, hacking into the phone system, before I graduated high school — the hacker movement in essence being that democratization of information and access that people see the Web as today.

Just in the same way that, when I look at my 18 yr old brother typing at lightning speed on a Sidekick, I’m kinda blown away by what he can do with technology. There’s just that “digital-native” leap that’s going on with 40-something execs unwillingness to fully embrace social media. Perhaps it will just take a few years until my generation has our time running the companies of the world for that change to happen? The Zuckerbergs of the world sure get it.

zuckerberg facebook

Which brings me to the title of this post. In Purple Rain, Prince beats out the antagonist pop local celebrity, who’s main song is the trite “Bird Dance,” with the emotive pop anthem Purple Rain. And then tops it off with I would die 4 U. He overcomes the popular thought of his time — candy-coated marketing fluff — with honest, emotional sincerity.For the past decade we’ve been saturated as a culture from marketing messages, at all angles, and channels, that are surface-y rather than cerebral, comical rather than emotional, pedantic and trite, rather than meaningful,and usually based on popular cultural symbols, rather than deeper human truths.

What we really long for as individuals though are meaningful connections. Emotional, personal and significant moments. That’s in essence what social computing is all about. A revolution (or revolt-ution) against the trite, pedantic marketing that we’ve been fed for so long. We don’t want to be talked down to — we want to communicate with each other. Messaging vs. meaning.

Anyway, I’ll get to reading Cluetrain. One of these days.

purple rain

22
Apr

“Web3D” is coming!! … and I’m married to Feist!

There are some interesting thoughts brewing about a topic called Web 3D, a future vision of the web which resembles Second Life, rather than the 2D browsers we see today.

There are lots of reasons why Web 3D could come to fruition, but I want to pose three roadblocks that might prevent that:

  1. 3D environments are not efficient at representing lots of info. Spend some time immersing yourself in the 3-D environment of a First Person shooter video game like Doom 3 or Halo, and you’ll see why. 3-D worlds are great at making you feel like you are in a real environment, where there’s graphic and physical rules, and danger around the corner — but it doesn’t allow for what people do on th Web, search and gather large amounts of information, and multi-task.
  2. The Web isn’t an open platform (yet). What one technology will drive the 3d environment? HTML is a very simple technology, and yet look how hard it is for today’s sites just to work well on all the different Web browsers available. Not to mention, large companies want to keep their content and experiences under ball and chair still.
  3. Big business will be sluggish to catch up. Flash is a Web standard for displaying rich graphics on the Web, and yet how many big brands and major sites use it today? Big business is just slow, very slow, at integrating new experiences. If a 3D Web does become available, it will stay on the fringe of site experiences for a while.

The 3D Web that exists in Johnny Mnemonic, where he navigates virtual reality with motion-sensing gloves, is an awesome idea for the future of HCI, but it’s a huge shift in the way we interact with computers. But sometimes big changes happen in rapid bursts…

(a 3D web as envisioned in Johnny Mnemonic)

21
Mar

Service companies will always need a human touch

In Johnny Mnemonic, the Keanu Reeves rendition of William Gibson’s awesome sci-fi short story, basic social interactions are performed by cyborgs or machines. And in a Clockwork Orange, machines serve “milk” at bars — no more bartenders.

So does the future of service industries hold just vapid, emotionless interactions?Hells no.

Bruce Temkin wrote on his blog that, despite what a Time Magazine articles says is a top trend, customer service isn’t dead yet. And i agree with Bruce.

In fact, human-to-human interaction is becoming more critical for brands to differentiate and compete on the experiences they provide. The human element is unreproducible by a Web site or phone agent.

Case and point: Starbucks is bringing back in-store coffee griding. They took it away because it added noise pollution to the cafe atmosphere, but the aromatic effect of fresh ground coffee was lost. Schultz probably realized that this made Starbucks feel less real, and decided that engaging customers’ senses is critical to providing a unique experience.

barista with capp

Here’s the scoop [via USAToday]:

“Coffee again will be freshly ground and scooped in most U.S. locations so that the stores smell like coffee shops again.

Starbucks (SBUX) CEO Howard Schultz will announce that big “back-to-the-future” change — along with several others — at Wednesday’s annual meeting in Seattle.

Think of this as a hobbling Starbucks’ annual checkup.

Schultz — acting as both doctor and patient — will try to convince shareholders that he can fix what ails the chain. In an exclusive interview with USA TODAY, he made clear that a key first step is grinding beans for brewed coffee, reversing the switch to sealed bags of preground coffee that barely got time to breathe before use.”

26
Feb

Recession Rap Session

Enough about us being in a recession people. There’s so much talk as though we are already in one, and about what tactics to take as a result. But yet no one is talking about WHY or HOW we we got here. And how we will get out. Josh and Charlene from Forrester have their ideas, and I totally agree, not just as a Forresterite, but as a consumer.

recession doughnut

We all might be pinching pennies in an economic downturn, but we’re all going to have the same amount of free time, and the same desire for entertainment and communication. And where’s the easiest place to go to fulfill that need? Online! Josh and Charlene describe this as the difference between advertising dollars that build awareness (traditional) vs. ad dollars that build consideration (interactive).

In an economic downturn, social networks, interactive campaigns, and brands that participate in conversations, rather then try to market messages, will succeed.

There are other things to keep in mind as well. Here are some ideas I’d like to add to the Recession To-Do List:

  • Low-priced, mass quantity consumer goods. Consumers might spend less, but they’re much more likely to purchase low-cost goods, as a way to still get what they want. In this environment, the Targets of the world will rise, will Apple, and firms that charge a premium for design, will fall.
  • Open brands. Along the lines of social media weathering the economic storm, brand that stay open, participate and respond to consumer conversations, will fair the best. I’m evoking Kelly Mooney’s Open Brand idea here, but probably in not the most accurate way.
  • Monetize social media. If interactive marketing will stay strong, because it’s cheap and measurable, agencies need to put all their internal research efforts into new ways of calculating the ROI of their social marketing efforts. So that interested clients will be sold easily on the idea. And companies should look for new ways to draw revenue from social media.
  • Experiences, not just products. Way back when, Ted Schadler at Forrester wrote a great report about designing consumer electronic products that tie to a larger experience, like iPod+iTunes, rather than just selling products. More than ever, this is crucial, so that consumers have incentive and reasons to keep participating with a brand (the way they do with the Nike+iPod Sports Kit), and continue micro-transactions, as a new revenue stream, the way they do with XBOX Live, and Guitar Hero.
06
Feb

Executives: Bring Back the Old Fashion Suggestion Box

So many large organizations today have executives and managers that focus all their time and effort on evangelizing, rationalizing and internally marketing corporate strategy and decisions among employees. With internal blogs, memos, company meetings. Bruce Temkin would probably call these types “psychotic.”

It’s a logical thing to do when you need to get an army to rally behind one battle cry. But it’s not a smart approach — so much is lost this way.

Some companies even do this outwardly, trying to justify poor marketing strategies:

“Chase executives are forgoing the brand anthem spots typically used to introduce campaigns, focusing on their products and capabilities instead. But the new ads are intended to create a consistent image.

“Energy is a thread that you will see throughout the work. It’s upbeat, it’s contemporary, it’s modern,” said Bill Borrelle, the Mcgarrybowen executive in charge of the Chase account. When “Chase” is used as a verb, he noted, it “has a lot of energy and pursuit behind it.”

Oh, give me a break, Chase. Mark Hurst explains why the above is downright silly. Executives really need to listen more, through open, collaborative channels, and mindsets. Harmonix Music Systems, Inc., the guys behind one of the most successful new video game franchises (Guitar Hero), understand this. When I worked at Harmonix there was an employee b-board set up in the intranet, where we could post everything from a funny you tube video we saw, to new design ideas and critiques of how the current product was working.

Everyone from the CEO to the interns posted, and was heard equally. Granted Harmonix was a lean firm of 90 people then, but that’s the approach large firms need to evoke. Or else they just become big, stupid Goliaths chasing after the wrong things.




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