Reasons Why You Should Start Corporate Innovation Program

You probably have heard about Innovation and you want to do something about it for your organization. It is like a puzzle that needs solving, but the think is which one you should start first? Here could be the reasons compiled why you want a piece of the action on Innovation:

  1. There are so many new technology arounds but you have no clue how to take advantage of all these for your organization eg Industry Revolution, 4IR, Digital etc..What’s all these tech stuffs?
  2. Around 40% or more of your workforce are 40 years old and below. This is consider fairly young workforce. Most organizations in Malaysia for example has around 50-70% workforce of 40 years old and below. How to tap this huge energy reserves?
  3. There’s so much ideas being presented to you and your management teams, but it is who is looking after them? What is the outcomes or results? Why there seems to be nothing implemented? Who is doing the monitoring?
  4. You and your management team would like to find out new opportunities for business growth. Maybe there’s something?
  5. The internal processes seem overwhelmed with tapes after tapes and you wanted it change for so long, but why the problem still persisted?
  6. People morale is getting lower by the day with all other concerns about the economy, jobs security and personal finances. How to rejuvenate and recharge?
  7. You have some budget (approved by the Board) to work on innovation programs, where to start? (Innovation program budget starts from $50k-$100k)
  8. The training done by the human resource seems to have very little impact because they said the organizational change should be addressed at the same time.
  9. Your management team (kitchen cabinet) is becoming more picky, testy and struggle to communicate cohesively and you don’t know who is the dark horse anymore. Put your foot down?
  10. The entire workforce especially the operations, middle managers and customers facing staffs said, “Our customers complaints has increased and they have switched to our competitors.” Shall you wait any longer?

The above listings are popular reasons I personally have observed and listened during my engagements with our clients. What’s yours? I’d love to compile several more to provide greater awareness that innovation program is a strategic decision.

Check out my next 2 parts article “How Start a Corporate Innovation Program?”

Brickbats please email to donkhairul@gmail.com

Advertisements

Design Thinking Philosophy

You probably heard of design thinking and you wanted to know gist of it without having to go into “details”. I’d suggest you to pick up the philosophy of design thinking.

My team has put some extra effort to make it beautiful and downloadable. Enjoy!

How Marketing Department Lost It’s Gusto?

There’s little we hear today about Marketing Department (or Division) these days? Don’t we? What we hear about Marketing today is about launching events after events. The department role has become launching organizers. They are very good at dealing with event coordinators, medias and gifts companies. Is that what Marketing department supposed to do?

Well, at least that’s one of it, we called it marketing communication. Ideally, what is marketing? What is the main function of marketing department? How should we measure marketing success? Why marketing matters? Let me.

“What Is Marketing? “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved July 2013 by American Marketing Association – AMA)”

Source: https://www.ama.org/the-definition-of-marketing/

According to Peter Drucker, “The two basic functions of a business enterprise are Marketing & Innovation. All the rest are costs. Marketing & Innovation produce results. Marketing is the distinguishing, unique function of the business.”

Source: Peter Drucker, What Is A Business?

If the purpose of business is to create customer through innovation (Drucker), the purpose of marketing is to help the organization sees the satisfaction desired by the customers in terms of values and needs. This is where, in my opinion, the beginning of marketing department downfall, lately.

The marketing department as we know it, no longer help the organization sees the customers values and needs, neither, make effort to understand the customers values and needs. Yes, the customers are changing, fickleminded and indecisive. We know these customers behaviours for very long already, nothing new.

Marketing Activities

There are at least four main marketing activities. The 4Ps (Product, Price, Place and Promotion) . The marketing department through its marketing activities, need to drive the decisions in these areas.

In Product – marketing department through its customers research, it will generate new products (or services) ideas and solutions. They will also look at the existing products, are they making profit? Or they are just product line up that is making losses year after year? The marketing team should have enough data on this. Do they have this data? The marketing department can only see what is in the pipeline but can they create new? Does the marketing team knows USP – unique selling proposition of the products (and services)?

In Price – marketing department will help set the pricing policies looking at the varying customer segments in their midst. They will know how much margin or mark up or profit or volume they need to generate for the business to grow. Are they making the decisions today? Or is it done by the finance group? How does marketing team influence this decision?

In Place – marketing department look at the distribution channel of the products. In today’s business, there are online and offline distribution channels. Does the marketing department has the people to do online marketing? Do they know the customers experiences in these two areas are different? How does the marketing team use the data collected? How does the marketing team work with the offline retailers, distributors and wholesellers? Do they have these strategies? Or is currently these being done by customer experience department? Or big data unit that is reporting to IT department?

In Promotion – marketing department set the promotional strategies including sales team deployment. Setting sales strategies, incentives and ammunitions. Is the marketing department still doing this? Or has this been delegated to sales department? Ohh yeah, this is also where marketing runs events to promote and advertise the “solutions” valued and needed by the customers. They do it through communication with the medias and PR companies. In promotion, marketing department also continually asssessing the brand value as seen by the customers.

After looking at all above, it turns out the marketing function as it was, has been broken down to myriad other units that are more specifics, more objective and relatable to the customers worldview as needed by the organization. Because of that, the marketing department is it was, without breaking it into many other units, will become too big, too slow and bureaucratic. That’s how marketing lost it’s gusto.

Wither Marketing Budget?

As a result, marketing department budget now filled with events budget and it become less strategic. In my humble opinon, marketing department too, has to be blamed. The people inside marketing team already out of touch with the customers realities. They department relies too too too heavily from the agencies, vendors and suppliers to give them reams of reports about the customers.

Marketing department rarely goes down to the “market” to talk to the customers. They refused to listen to the customers feedbacks and listen to their stories. Marketing department people prefer to man events at big and posh hotels while drinking coffee and smoke cigars – to them, the hotel is the prestige defined as “great branding” and “credibility” by the customers.

Marketing department create products in their office. They look at the quantitative data without an iota believe that they need qualitative data too – customers insights and pain points stories. Marketing department people do not go down to meet the engineers at the manufacturing plant to see the product development themselves. All they ask for are photos to make brochures and marketing kits. That too, the marketing department ask the agencies to go and get them.

Direction-less Heads

The marketing department also busy attending high flying and international conferences in the name of “benchmarking”, “new strategies” and “power networking”. Funnily, the one that usually get to go to these kind of pampered and full board events are the bosses of marketing department and above.

They go and come back – then nothing happened. The bosses snap loads of pictures of the slides and whatsapp them to the team. Instructing the team to do this and that – ASAP. The next year, the same bosses go again and again and again. It became the viscisous cycle that everybody knew – except the bosses. That’s how marketing department lost it’s gusto. With all the happenings in the marketing deparment, the top management should follow the advise of David Packard (Hewlett Packard), “Marketing is too important to be left to the Marketing Department.”

The marketing department also detest any other department that take away their budget in the next financial year. Now the next upcoming department that, if not careful, will fall just like the marketing department, it is the IT department.

Brickbats please send to donkhairul@gmail.com