Innovation

I recently stumbled upon an article that quotes Warren Buffett on Innovation and that basically summarises the current activity in the business world. I find his quote brilliant and I hope you can fit in the first category, the world needs true innovators:

“First come the innovators, who see opportunities that others don’t. Then come the imitators, who copy what the innovators have done. And then come the idiots, whose avarice undoes the very innovations they are trying to use to get rich.”

How to engage Consumers with digital Promotions

The last presentation from the Brand Summit belonged to Andrew Mitchell- CEO of Brandmovers.

Power to attract means: how to design, develop, program and administer interactive consumer brand promotions.

“Figures don’t lie, but liars do figures”

Customers will be attracted by:

• Promotions
• Sweepstakes- Acquire -> Sending customized info to consumers

• Online Games and contests- having fun! Educating and entertaining consumers at the same time:

- Instant win games

- Adverganes

- Trivia games

- Time management games

- On-pack games and piece development

!!! customer focus- the discounts bring money back for the company, increase sale, and you address the interested customers in your brand

• User/content Generated Contests- Engage!

- Photo contest- and interacting on Social Networks – luxury items

- Video sharing contest

- Recipe contest

- Branded customizable e-greetings

• Rewards Promotions- Retain!

Permission marketing, offer information exclusive to those who want to receive it! Intrusive does not work, promotions go into spam so you need customers permission to contact them…

- Flexibility to choose relevant rewards- transforming points into reward products, showing their Return on Invesment ROI

- Hassle free fulfillment system

- On-demand shipping

- Integrate promotional overlays  and social media tie-ins

- Customizable online rewards catalog

• Social Media Integration- Get Viral

Nowadays the “word of mouth” is becoming “word of mouse” with the aid of Social Media Networks

- Development of Facebook Apps/tabs

- Facebook Connect Integration

- Facebook, Twitter

- Social Media Management and Integration

• Mobile Promotions- Connect

- SMS Text (Instant win, Sweeos, Trivia)

- 2D tags/QR Codes (quick response tags)

- mobi/ wap site developments

- iPhone Application Development

-Downloadable Content Delivery (mp3’s…)

Don’t make promotions only price reductive because customers will be encouraged to buy only when there are promotions- making them dependant on promotions. Make promotions to increase value of the product, for instance…

Engagement marketing is the new HOT STUFF!!!!

Management principles

Every manager should lead its team in an innovative way while having in mind a solid system of values and some management principles. I’ve found some really inspiring management principles which belong to Norman Brinker and that are a true food for thought:

• Begin with the end in mind - have a real sense of direction. Visualize graphically where you want to go. Then it is critical that you take a long-term vision view of how you want to achieve your vision. If you have a vision- then create an atmosphere that involves people in the vision.
• Create the culture – work together with your team to create a ‘can-do’ culture of honestity, integrity, energy and initiative. Create a casual environment and foster an open communication.
• Take risks – Don’t be afraid to risk everything to pursue your passion in life. Allow people to try and fail. Mistakes can be tolerated, inertia cannot.
• Encourage innovation – Always look for ways to do things better. Apply and encourage imagination, initiative, creativity and ingenuity.
• Seize opportunities when they arise – The harder you work, the luckier you get. And timing has an effect on your luck.
• Inspire rather than coerce -  Inspire your team members to act on their own- and then the responsability and results are their own.
• Give credit where credit is due – Acknowledge and show genuine appreciation when a good job is done. Accept responsibility when things go wrong.
• Share the wealth- reward performance
• Give something back to the community – teach others what you have learned.

Hope these are useful, especially if you are a manager at the beginning of the road.

Innovation

While reading the material for one of my projects I’ve discovered some sources of innovation that can be applied both in businesses/entrepreneurship and the overall economy.

Peter Drucker suggested seven areas where companies should look for opportunities to be innovative. The first four are internal to the company; the last three are external:

1 The unexpected success that is rarely dissected to see how it has occurred.

2 Any incongruity between what actually happens and what was expected to happen.

3 Any inadequacy in a business process that is taken for granted.

4 A change in industry or market structure that takes everybody by surprise.

5 Demographic changes caused by things like wars, migrations or medical developments (such as the birth-control pill).

6 Changes in perception and fashion brought about by changes in the economy.

7 Changes in awareness caused by new knowledge.

Drucker maintained that creativity was rarely a limiting factor: “There are more ideas in any organisation, including business, than can possibly be put to use,” he wrote. The issue is how to manage innovation so that it creates economic value.

These sources of innovation can become a safety net now- during the economic crisis.

But it is possible to get some idea of the sorts of companies that are doing well and the kinds of strategies they are pursuing… The most obvious winners are established giants: market leaders that entered the recession with cash in their pockets and sound management systems under their belts. These companies are reaping rewards from investors who are skittish about shakier rivals. They are also using their corporate muscle to squeeze their costs (for example, by negotiating cheap rates for advertising) and so win market share from their competitors. BCG, another consultancy, notes that 58% of companies that were among the top three in their industry had rising profits in 2008 and only 30% saw their profits decline. In contrast, only 21% of companies outside the top three had rising profits, and 61% had falling profits.

A second group of winners is made up of companies with a record of innovation. A third group consists of companies which are using the recession to reposition themselves.

If you want to read more about this topic: http://www.economist.com/businessfinance/displaystory.cfm?story_id=14540023

What if

This is only the beginning …