2 014年夏季达沃斯论坛 科技新领军 NEW CHAMPIONS IN TECHNOLOGY INNOVATION Unleashing Brand Growth Through Purposeful Technology By Benoit Garbe, Senior Partner at Millward Brown Vermeer, Managing Director for the Africa Middle East Asia Pacific Region Over the past three decades, technology has been central to business transformation and growth. Technology has been and continues to be a catalyst for change. It shapes not only how businesses are run, but also how brands are built. In today’s world, companies that make a difference and outperform their peers are those who use purposeful a toto achieving achieving their purposeful technology technology as as ameans meansfor their ideal. Over the years, we have seen a strong connection between technology, business management practices and branding. The pre-internet era, 1980’s to mid-1990’s, was a time marked by the development and deployment of more sophisticated information systems and networks. These new technologies led to two major business transformations; globalization and business process r e - e n g i n e e r i n g . T h e s e t w o h e l p o rg a n i z a t i o n s t o fundamentally improve customer service, cut operational costs, and become world-class competitors. This era can be linked whatwhat we we would describe of be link withwith the era would describeasasthe the era era of ‘functional marketing’. Branding was about dialing up functional benefits; businesses and brands tried to outdo each other on the ground of product differentiation and prices. Then came the internet era, 1995-2005, during which the new web-based technology transformed businesses, redefining how they worked, used information and engaged with consumers. Companies were running globally and had managed to produce high quality and differentiated products, efficiently. The new challenge was about breaking through and capturing consumers’ imagination and attention in world of a information overload. This resulted in what we call, the era of “emotional marketing”. Think of the‘Nike ‘Nike Just Just Do Think of the thesensational sensationalcampaigns, campaigns,bethe Do it’ campaigns super charged with hero celebrities (Michael Jordan, Tiger Woods among many others), or Budweiser “Whassup?” commercials for Anheuser-Busch from 1999 to 2002. In both these examples, the brands became pop culture icons, by talking less about the products, and connecting with global consumers on emotional grounds. The last decade, the 2005-2014 era, has seen the rise of new disruptive technologies, such as big data, mobile and social media. These new technologies created new multi-billion dollars businesses in the shortest time period per Facebook, Facebook, Uber Uber and time period ever, ever, aslike and Alibaba. Alibaba. They also helped redefine businesses such as IBM, Amazon, Disney or Nike. These new technologies invited companies to think about the role they play in peoples’ lives, and to consider how they could serve consumers rather than how they could merely sell to them. In parallel, consumers found themselves more empowered through social media. Consumers now set higher expectations for the companies and brands they engage with and consume. This is the era of Societal Marketing or what we call Purposeful Marketing. Consumers seek higher meaning and choose brands with ideals. The companies that can capitalize on these technologies and offer societal benefits will win in this new market context. Fuel Behind Ideal-driven Brands Our research and academic work has provided 89 趋势 Trends learning on the drivers behind brand value creation and growth today. HigherPurposeaswehavediscovered Higher purpose as we have discovered and validated, is central to the most successful businesses. Millward Brown Vermeer led a global study, analyzing 10 years of financial and consumer data of 50,000 brands, to identify the top 50 fastest-growing brands. The findings showed that the brands that serve a higher purpose deliverstrongerfinancialperformance and build deeper relationships with consumers. The key to their growth was defining themselves not around a particular product or service, but around an Ideal: a higher-order reason for being that articulates “why” the brand exists and the impact it seeks to make on the world. The global study and the findings were the backbone of Jim Stengel’s book, ‘Grow: How Ideals Power Growth and Profit at the World’sGreatestCompanies’(CrownBusiness). Our continued effort to understand how brands unlockbusinessgrowth,usinginsightsfromourBrandZ™ Most Valuable Brands annual rankings, as well as our recent Marketing2020™ study (see Harvard Business Reviewarticle,July-August2014,TheUltimateMarketing Machine, authored by Marc de SwaanArons and Frank vandenDriest(MBVermeer),andKeithWeed,Unilever), drew our attention to the central role played by technology attheseideal-drivencompanies. Our findings show that the greatest brands’ use purposeful technology in the pursuit of their ideals. Purposeful technology — which we have seen applied to R&D, operation management, capability building and digital and mobile applications — not only changes what the company does and how it does it, but also fosters a more aligned culture behind the ideal. Purposefultechnologyhelpsthebestbrandsachieve their ideal in three ways. First, it invites businesses to rethink and even reinvent where they play and what they do. Ideal-driven companies are not defined by what they sell, but what they stand for. Technology enables companies to redefine their space and push the boundaries of their categories. Secondly, purposeful technology challenges businesses to reinvent how they organize themselves and how they work internally. Best companies put their Ideal at the center of all activities, HR,procurement,R&D,manufacturing and marketing. Purposeful technology sets new ways of working, and inspires n e w o p e r a t i n g a n d o rg a n i z a t i o n a l models. Lastly, purposeful technology invites companiesto reinventhow they engage with consumers. Ideal-driven brands use technology to co-create and dialogue with consumers, while they add meaning and deliver value to consumers’lives. Benoit Garbe 90 Enabling Companies to Rethink Business Purposeful technology enables brands to rethink the business they are in. Technology enables companies to expand their scope, and stretch category boundaries in serviceoftheirideal.Purposefultechnologyistheenabler. service of their Ideal. Purposeful technology is the enabler. One clear example of this is Nike. What business is Nike in? Through the use of purposeful technology, Nike has effectively extended itself far beyond its early beginningsas a running shoe company.Since1964, Nike has technologyin in service serviceto to its has been been integrating integrating technology its ideal Ideal — empowering people to find their greatness. While Nike has been a leader in footwear, Nike’s most notable use of technology has extended the brand into digital with Nike+. Bringing together social media and mobile solutions,withwearablehealthcaretechnologies(Running App, SportWatch,Fuelband Fuelb and App, SportWatch, andSE,Training SE, Training Club), Club), Nike+ Nike+ has become a virtual fitness community that inspires individuals to challenge themselves and be at their best. Purposeful technology has has helped Purposeful technology helped Nike Nike redefined redefine itself itself in the pursuit of its ideal. Even though Nike disinvested in Fuel’s hardware business earlier in 2014, Nike has redefined the category its plays in, Nike is as much a digital platform, a technology company, as an apparel and footwear company. Google is another example of a company, built on an ideal and technology, which constantly stretches beyond its core category. Google exists to organize the information of the world in service of people. Inspired byitsideal,witheachnewventure,Googleaimstosolve consumers’ problems and make life better. For example, Google announced that it wants to explore ways to slow aging, tackle health, rethink how we use our time in our car(bynotdriving),andnowGooglewillbemovinginto our home, with the recent acquisition of Nest, to make The biggest challenge to achieving itspurpose higher purpose home more sustainable and smarter. The biggest challenge to achieving its higher our homeour more sustainable and smarter. Tencent Tencent in Chinain China is Mother itself, Natureand itself, and theunpredictable the unpredictable climate is Mother Nature itself, and has followed similar approach, using technology to is Mother Nature theunpredictable climate climate has followed a similara approach, using technology to changes. Monsanto acquired Corporation in provideaddedvalueservicestoconsumersandbeintegral changes. Monsanto acquired ClimateClimate Corporation in provideaddedvalueservicestoconsumersandbeintegral early 2014. From 2013 and invested in Inc. Solum, Inc. in to people’s lives.These companies, by stretching 2013 and invested in Solum, in early 2014. From to people’s lives.These companies, by stretching across across these,Monsantocanleveragethelatestbigdataanalytics and categories, to consumers’ capture consumers’ these,Monsantocanleveragethelatestbigdataanalytics platformsplatforms and categories, compete compete to capture technology to provide with a more complete life’. The companies who manage to gain as technology to provide farmersfarmers with a more complete ‘share of‘share life’. of The companies who manage to gain as With integrated from weather muchof “share of consumers’ life” will maximize picture.picture. With integrated insightsinsights rangingranging from weather much “share consumers’ life” will maximize share ofshare of forecasting, soil assessment, seeds yielding, weed and forecasting, soil assessment, seeds yielding, weed and wallet. wallet. insect management. Purposeful technology was deployed San Francisco-based company, one insect management. Purposeful technology was deployed Method,Method, the Santhe Francisco-based company, one to help Monsanto higher purpose, and ultimately of the growing fastest growing household to help Monsanto fulfill itsfulfill higheritspurpose, and ultimately of the fastest household cleaningcleaning productproduct deliveredstrongerbusinessperformance. brands, is one another good example of a company that deliveredstrongerbusinessperformance. brands, is one another good example of a company that IBM is acase similar case example of a company that uses purposeful technology reset category standards. IBM is a similar example of a company that uses purposeful technology to reset to category standards. leverages purposeful technology in big data management ideal happy, healthy homes. Method’s tocreate create happy,homes. healthyMethod’s homes. Method’s Method’s leverages purposeful technology in big data management Method’sMethod’s ideal to ideal createistohappy, healthy and analytics, in the of pursuit of its — to co-founder, Eric Ryan articulates thefor reason for and analytics, in the pursuit its ideal —ideal to build a build a co-founder, Eric Ryan articulates the reason being ofbeing of planet. IBM believes the technology, the as “creating natural, non-toxic smartersmarter planet. IBM believes that thethat technology, the Method Method as “creating natural, non-toxic cleaningcleaning productsproducts and resources solve the world’s that perform look beautiful in ourSince homes. Since thinkingthinking and resources exist toexist solveto the world’s most most that perform well andwell lookand beautiful in our homes. complicated problems, if there is the will to solve them. the inception, brand’s inception, has the pushed the boundaries complicated problems, if there is the will to solve them. the brand’s Method Method has pushed boundaries IBM will, and it has deployed the technology. ofR&D,usingcuttingedgetechnologyandchemistry,to IBM has the has will,the and it has deployed the technology. ofR&D,usingcuttingedgetechnologyandchemistry,to smart data analytics and cognitive technology deliveronitsideal.Productsthatdomorethanclean;they ThroughThrough smart data analytics and cognitive technology deliveronitsideal.Productsthatdomorethanclean;they as Watson, IBM now provide a wide be green, smell like heaven, be friendly such as such Watson, IBM can nowcan provide a wide range ofrange of must bemust green, smell like heaven, be friendly and safeand to safe to solutions, tacklecongestion, traffic congestion, crime, or cancer, or make happy, healthyCompetitors home. Competitors are on make healthy happy, home. healthy homes. Competitors are catching catching on solutions, to tackletotraffic crime, cancer, make happy, are catching on energy over-consumption. energyoverconsumption. and the category is transforming. Today, 3% of home energyoverconsumption. and the category is transforming. Today, only 3% only of home Ideal-driven use technology and social Idealcompanies drivencompanies companies use technology and social andcleaningproductsare“greenfriendly”,by2020,itis Ideal driven use technology and social andcleaningproductsare“greenfriendly”,by2020,itis platforms tohow rethink how to innovate and to be 30%. is Method is welltoplaced to this capture this platforms to rethink to innovate and create acreate single-a singleexpectedexpected to be 30%. Method well placed capture minded brand One culture. One of theChinese hottest Chinese exponential minded brand culture. of the hottest brands inbrands in exponential growth. growth. recent years is is Xiaomi, thethe rising star in technology recent years Xiaomi, rising star in the the technology the recentthe years is Xiaomi, the rising star in the technology space, taking onApple, Samsung and other tech giants. space, taking onApple, Samsung and other tech giants. New of Working SettingSetting A New AWay ofWay Working It is founded on thethat belief that Xiaomi Undeniably, technology has become in It is founded on the belief Xiaomi exists toexists createto create Undeniably, technology has become central central in technologyforthe‘technology’fanatics.TonyLeihasset the workplace. More andbusinesses, more businesses, large and technologyforthe‘technology’fanatics.TonyLeihasset the workplace. More and more large and by utilizing technology andmedia social media small, aretotrying to incorporate thetechnology latest technology Xiaomi Xiaomi apart byapart utilizing technology and social small, are trying incorporate the latest toan foster open and self-monitoring into their operations, to reshape way they work to foster openan and self-monitoring culture,culture, to stay to stay into their operations, to reshape the waythe they work connected with consumers and programmers, and spark and collaborate. The of appeal of thetechnology whole technology connected with consumers and programmers, and spark and collaborate. The appeal the whole innovation.Xiaomihasbuiltanoperatingmodelwhichis advancement isis that it is designed makeand people and innovation.Xiaomihasbuiltanoperatingmodelwhichis advancement is that it designed to maketo people agile, responsive fast moving, what Tony describes businesses more knowledgeable, connected, and agile, responsive and fastand moving, what Tony describes businesses more knowledgeable, connected, efficient efficient and as ‘hungry and culture’. foolish culture’. Xiaomi has incorporated profitable.Purposefultechnologyputattheserviceofthe as ‘hungry and foolish Xiaomi has incorporated profitable.Purposefultechnologyputattheserviceofthe an internal messaging system ‘Miliao’ similar toWechat, organizationanditspeople,anddesignedinlinewiththe an internal messaging system ‘Miliao’ similar toWechat, organizationanditspeople,anddesignedinlinewiththe to host business meetings, discuss product development, ideal, has the deepest impact on businesses. Purposeful to host business meetings, discuss product development, ideal, has the deepest impact on businesses. Purposeful share creative ideas and suggestions for the business, or technology allows companies toworld-changing create world-changing share creative ideas and suggestions for the business, or technology allows companies to create even approve reimbursement. Better yet,is Miliao innovationsusingbigdataandanalytics,todevelopfaster even approve reimbursement. Better yet, Miliao also is also innovationsusingbigdataandanalytics,todevelopfaster by the millions of fans, Xiaomi fans, meaning Xiaomi is and smarter supplymanagement, chain management, and to rethink used by used the millions of Xiaomi meaning Xiaomi is and smarter supply chain and to rethink always oneaway swipe away from their consumers, and within organizational designs that foster more collaborative and always one swipe from their consumers, and within organizational designs that foster more collaborative and of a passionate community of designers, single-mindedbrandculture. reach of reach a passionate community of designers, engineersengineers single-mindedbrandculture. andprogrammerswillingtoco-createwithXiaomi. a np leex, a am pl el ae d, ian gl e a d i nandprogrammerswillingtoco-createwithXiaomi. g Ta k e MTa o nksea nMt o nassa natno eaxsa m multinational agrochemical and agricultural biotechnology multinational agrochemical and agricultural biotechnology business. It defines as a sustainable agriculture business. It defines itself asitself a sustainable agriculture Challenging Companies to Reinvent Challenging Companies to Reinvent How How company, which to improve humanity by ensuring company, which exists toexists improve humanity by ensuring They Engage with Consumers They Engage with Consumers affordable and accessible food to supply to all people. per Jeremy Bullmore of“Brands WPP, “Brands are affordable and accessible food supply all people. As per As Jeremy Bullmore of WPP, are 91 91 趋势 Trends complicated, elusive, slippery, half-real and half-virtual things.WhenCEOsthinkaboutbrands,theirbrainshurt” – brands don’t hurt CEOs’ brains, how to make them engaging does. Marketing has undergone a radical transformation as the world has gone online and mobile. The digital age has given rise to remarkable tools such as mobile devices,socialmediaplatforms,andlarge-scaledatabases. These all help businesses better connect and engage with consumers on an ‘anywhere, anytime, just-the-way-youwant-it basis’.Yet digital has also created immense new challenges for marketers. To e n g a g e w i t h c o n s u m e r s , a b r a n d m u s t b e meaningful, different and salient. However, finding the right way to engage consumers and being part of the conversation is the marketers’ Holy Grail. Ideal-driven companieshavechangedthenatureoftheequation.They are less interested in shouting what they have to sell, rather they focus on sharing their point of view, inviting consumersintodialogue,andaddingvalueintotheirlives throughservices.Onceagain,purposefultechnologyisthe enabler. Starbucks stands for more than coffee. It is a people business, with a higher purpose to create human connections. Starbucks has bet not only on its stores and baristas since since Day day One one to create these these connections, connections, but but baristas to create also on technology, mobile and social digital platforms to bring people together.AlexandraWheeler,VP Global Digital Marketing describes Starbucks’ internal set up as ‘a venture capital-style incubator for digital technology, where Marketing and IT collaborate to drive innovation to achieve the company’s higher purpose’. Starbucks was one of the first brands to use Instagram to share the behind the scene; the stories of the company, the coffee, the people and the communities. Starbucks also uses meaningful technology to make life easier. Its mobile App,delivers deliversmany many value-added value addedservices servicessuch such as as store app, store location finders, membership loyalty programs, and in late 2014,anewmobileappwillenablecustomerstoreserve their coffee through mobile phone and pick up the coffee at stores. SimilartoApplewhocontrolstheentireecosystem (Hardware, Software, iTunes,Apple Stores) to protect and deliver the ultimate consumer experience, Taobao has redefined the rules of engagement with consumers, by designing and controlling the experience across the entirebuyingprocess.TaoMagazinetriggersneeds;eTao 92 enables consumers to compare among offerings;Taobao Marketplace is the on-line retail;Alipay supports with transaction payments; Cainiao takes care of deliveries; and finally Juhuasuan help the consumers spend points rewarded through previous purchases.All are under one roof.–Taobao’s. roof Taobao’s. Red Bull understood that branded communications and advertising designed to sell no longer worked in the digital and ideal-driven world. Non-advertising and meaningful content is the only means to engage consumers. In its own way, non-conventional way, Red Bull delivered on its ideal of uplifting mind and body through technology, as seen with the Red Bull Stratos project and Felix Baumgartner's supersonic freefall. Red Bull redefined the rules of consumer engagement by creating meaningful content, and captured the imagination of people around the world. As a result, an estimated $200M worth of publicity, 30MYoutube views within the first week, and continued brand value growth in our BrandZ 100 ranking. ranking. More Moreinterestingly, interestingly, beyond beyond BrandZ Top top 100 engaging with with consumers of-a-kind events, engaging consumers with with one one-of-a-kind events, Red Red Bullusesitsidealandtechnologytoredefinethebusiness it is in, as we have discussed with Google and Nike earlier. Red Bull is more than an energy drink company, and has transformed itself into a sports, media and lifestyle company. In today’s era, the societal marketing era, successful businesses have set higher standards for themselves, and built their organizations around an ideal.They align their activities, business decisions and culture behind a higher purpose. More than anything, they capitalize on meaningful and purposeful technology to deliver the impact they wish to make on consumer ’s lives. As business leaders, one shall think of answering the following questions. Why do we do what we do, and what is our higher purpose? Which technologies can we deploy in the pursuit of the ideal? The companies leading the way, who have answered these questions, are not only touching people’s lives but also outpacing their competitorsfinancially.Wheredoyoustandandwhatwill you do differently, to unleash brand-led business growth in this new era? Contributors: Daniel Obrien; Tao Lin; Kevin Yu; Jack Tian; Chris Hui; Cecilia Li; and Leon Zhang, at MB Vermeer Shanghai