All posts filed under: Strategy

Can you innovate too quickly?

By Mark Di Somma

What is the right pace for a brand to transform in an iterative economy? So often we’re told that success will stem from pushing the innovation accelerator flat to the floor. As proof, we hear about those companies that failed to innovate or didn’t respond quickly enough – and were buried. But is that true? Is innovation just about turnover, or is it more complicated than that? Where should brands take their cues – from their own development programmes, from their competitors, from the media, from their own marketing demands? Where do you look for prompts when you have new work in the wings? There’s a theory for this (of course) – diffusion of innovation. It revolves around two key aspects: an adoption process that generates critical mass (a.k.a the bell curve); and Professor Everett Rogers’ five influential factors concerning take-up: Relative advantage – how much better the innovation is than its predecessor Compatibility – how easily the innovation can be assimilated into everyday life Complexity – how easy or difficult the innovation is to …

Purpose vs mission and vision

Purpose vs vision and mission

By Mark Di Somma

I hope the days of vision and mission statements are nearly over. They’re the paperwork of traditional management models. They’re strategic compliance, and as such, they get deliberated over at great length and then forgotten. For the most part, they’re also self-centred – all about what the organisation wants to achieve for itself, all about how it intends to achieve whatever it deems important. They often don’t suit the much more open, interactive, social ways in which business is increasingly being done.

Familiarity 2.0 will bring brands amazing opportunities and new challenges

By Mark Di Somma

By Mark Di Somma It’s easy to underestimate the huge changes that have taken place in the dynamics of the brand-customer relationship in recent years. Brands and consumers are now engaged at whole new levels of familiarity. Facebook, Twitter, LinkedIn et al haven’t just brought people closer, they have enabled entirely new types of brand community to evolve and develop. But as we shall see, they have also expanded expectations in terms of responsiveness. I’ve dubbed this heightened connection Familiarity 2.0 (because to me it really does equate to a new era of acquaintance). Research shows consumers increasingly valuing brands that they feel fundamentally understand them and that interact with them as human beings. According to the Brandfog CEO, Social Media and Leadership Survey 2012, customers now expect to have direct access to brands and brand leaders. What’s more, the survey shows, there is a direct connection between social media participation, purchase intent and increased brand loyalty. The days of the brand being on one side of the counter and the customer being on the …

Seeing past the problem

By Mark Di Somma

By Mark Di Somma Every transformation programme I have ever worked on has been set in motion by a problem. And in every case the issue that has galvinised action and that everyone is so focused on answering is not the real problem at all. As Simon Sinek has observed, people intuitively deal with what they know before they deal with the things they don’t know or feel less comfortable dealing with. The easiest question, and the place most people start is “what?” They deal first with the symptoms they can see and quantify. And often they address them with a “how” that is equally familiar – the methodology they always use. But while a particular problem may have set off the trip-wire, in reality that problem is probably a symptom of what’s really happened rather than the real cause. It’s the prompt. And just having a way to address that problem does not guarantee any quality of answer. It simply provides a process for everyone to map to. Do you know the lovely story …

Shifting brand responsibility

By Mark Di Somma

By Mark Di Somma Let me make a suggestion to brand owners in the interests not just of transparency but of greater consumer belief. Stop communicating your efforts in sustainability, diversity, traceability, environmental contribution, fair trade etc as corporate social responsibility obligations. Instead, act on them, and account for them, as differentiating inclinations. And frame those inclinations within a broader, singular superset: your brand’s distinctive sense of its responsibilities. To that end, let’s stop talking about reporting. It smacks of obligation and compliance rather than commitments and contributions. And I would suggest, change the way your responsible actions are shared to make them more involving. Less paperwork, a wider range of sincere and honest conversations, with more people, across a broader range of platforms. In other words, make the discussions around how you behave ongoing, less formal and truly “social”. Just so we’re clear, I’m not for one minute advocating that the activities identified above go unaccounted for. Quite the opposite. I am advocating a change in spirit. I am suggesting that the underlying question …

Why are you waiting for things to improve? 10 ways for middle-market brands to tackle austerity now

By Mark Di Somma

By Mark Di Somma There’s nothing to suggest that the global “downturn” is about to upturn any time soon. We’re in the middle of a sustained bear and nothing in the economic news – America’s debt, China’s slowdown, the flat-footed European economy, Britain’s economic woes, commodity trends – suggests a sudden and universal change of fortunes. Austerity is the normal. It’s not a market trend. It is the market. And yet so many businesses say that they’re holding on and waiting for things to change for the better. Once the economy improves, we hear, they’ll be able to start growing again. That implies they do not see adaptation as their responsibility. They continue to apply the same models and mindsets that they have been applying. They are literally waiting for light to show its face at the end of the tunnel. A better strategy would be to adjust to the tone of the times we now face. Too many brands are trying to sell to a market sentiment they hope for rather than one that …

Actions and reactions: two very different drivers of market agility

By Mark Di Somma

By Mark Di Somma Actions and reactions are a strange two-speed dance in the context of market agility. Reactions are the responses that competing companies must actually make together and in a co-ordinated manner to shifts in market dynamics and/or customer expectations. Doing so sets a new norm over which the participants themselves can then compete. The airline industry generally, with the exception of the upper-market carriers, has reacted to economic pressures by dropping ticket prices and introducing fees for services. Shifting the emphasis from prestige to transport, and charging people for everything and the seat has reaped them billions. They did that together. As this article on the resurgence of Hollywood ticket sales shows, movie-makers have responded to the surge in available content and home entertainment gadgets by delivering experiences that still make it worth their while for people to go out and see a movie at the theatre – action-packed franchises, amazing sound, 3D; features that continue to make cinemas the biggest and best way to see a movie. Again, they did that …

Pricing the ecosystem

By Mark Di Somma

Take a look at the diagram below courtesy of Ryan Jones (thanks for the point Marc Abraham). It shows how Apple spans its offerings over a surprisingly wide range of price points. By introducing new lines, retaining older lines at degraded prices and through the use of provider subsidies, Apple delivers an impressive range of ‘step-in’ opportunities for customers to join its ecosystem. I’m intrigued by this because, from a brand point of view, these arrangements provide a powerful alternative to traditional “up-sell” approaches and to the discounting that brands so often use to make high-end products more available. Apple’s approach enables the brand to retain its all-important brand equity whilst providing consumers with the means to address any price barrier in the way they feel most comfortable with. They can enter the Apple world uncommitted or very committed in terms of contracts, with a spec’d up or spec’d down product (which they will then be encouraged to upgrade/add to). Until I saw Ryan’s analysis, I hadn’t realised the sophistication and range of this strategy. …

How to make sure your company’s next strategy succeeds

By Mark Di Somma

This fabulous article by Charles Roxburgh is a must read for every decision maker responsible for deciding the fate of a proposed strategy. It explores in fascinating detail how the brain tricks leaders into making “rational” decisions that are nothing of the sort. In fact, it reveals that all of us work to a set of biases that we must consciously resist. While my recent post on Prussian cast iron medals addressed how behavioural economics can work to actively lift value and change perceptions for buyers, Roxburgh’s work is a sobering reminder that rogue decision making is alive and well. Much of what he describes in terms of European financial services is equally applicable to what happens in many other fields. In this post, I highlight Roxburgh’s key observations, his recommendations on how to address them, and the steps I look to take as a strategist to ensure that what I’m doing gets the fairest hearing it can from the decision makers I’m working with. Settle in please for a longer-than-usual riff on how decision …

Lessons from an unnoticed violinist

By Mark Di Somma

I’ve always loved the story of Joshua Bell playing the Bach pieces largely unnoticed in the Washington metro station. Please watch the video if you don’t know the story. And while the experiment does indeed confirm that we don’t take the time to appreciate as much as we should, more particularly, it’s also a poignant example of the contributions of context and information to our everyday decision making. Context provides so much of how we read situations. No-one expects to see a concert violinist playing at a station – and because no-one expects it, no-one notices what he is doing, regardless of the extraordinary quality, and even fewer reward it. In that setting, in the blink of an eye that people evaluate, he’s just another musician, just another busker. If he was that good, many people would have subconsciously thought, he wouldn’t be playing here. So if he had played in another setting, even if it wasn’t a concert hall, would that have given his performance greater credibility for those passing by? Quite possibly. There’s …