Establishing the relation between digital marketing and corporate strategy

Corporate strategy and digital marketing work out really well with each other. The strategies that you apply for growing in the market are collectively known as corporate strategy. There are so many strategies out there and each differs from one another. Also, it might happen that a set of strategies is not at all applicable for you. Therefore, you need to assess your digital marketing skills and needs and then employ the corporate strategies for your growth. When you are trying to prioritize a particular strategy for your digital marketing, you need to have a crystal clear understanding of your product, business and demographics.

Staying nimble

Digital marketing is all about trial and error. You need to try out various options before finalizing one. So, in order to be nimble, you need to flexible with the upcoming trends in the market. You also need to cope with the shifting patterns of SEO. Being flexible with the time when to get the reports of progress and where you can have an effective discussion about the same is also required. For selecting a successful strategy, you need to keep monitoring continuously and also adjust to the errors.

Understanding your customers

None of the corporate strategies regarding digital marketing will be effective unless and until you have a clear grasp on who buys your services or products and why. You can improvise your tactics of digital marketing by understanding your customer base. You can easily form an information filled database of your audience by:

  • Defining all the channels that fit the demographics of your business.
  • Understanding the requirements of your customers and trying to solve their problems.
  • Being aware culturally.
  • Having unique corporate relationships with influencers.
  • Using highly developed tools for automation of your audience targeting and segmentation.

Generate leads with content

One of the finest tools that can generate leads is effective content. The most tried and tested method for generating leads is well-written content. Not only writing but the distribution of the same is also of utter importance. It has been found that bloggers have 15% more chances of having a positive ROI. This is mostly because they post attractive contents. So, in order o turn your traffic into effective leads, you need to start posting relevant contents. It needs to have relevance to the needs and problems of your customers.

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Open Innovation VS Closed Innovation

Welcome to my blog, in this blog i discuss about innovation, management and business strategy.

Today topic is a discussion between a concept in innovation that is defined as type of innovation strategy.

Nowadays, innovation discussion is clearly a critical dimension in any dynamic approach to business, as it allows businesses to achieve and defend competitive advantage.

Closed innovation, is the more classical approach to innovation, and in such, it develop patents, (intellectual property, licenses and grants) through formal means, and closed corporations.

Open Innovations is more related to the development of technology through adiacent and common techniques, such as outsourcing, competition establishing, and game theory.

Open Innovation, as defined by Dr. Henry Chesbrough in his book, is: “the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. Open Innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas ideas, and internal and external paths to market, as they look to advance their technology. (Chesbrough, Open Innovation, p.2).”

Here is a graph of the two distinct type of innovations as explained in his book.

Graph explaining the different type of innovation strategy.

In the past i had the privilege of working for a short time period in both type of organisations, closed ones and open ones. I wont say which organisation for reason of privacy. But they were large organisations.

In both organisations the important aspect was the development of work in which was happening. I noticed immediately that in the open innovative business communication was more open and the setting of collaboration was more direct, whereas, the type of collaboration in closed innovation was more secretive, as patents and new research and development techniques were happening.

Personally i preferred the open innovative business, which allowed to learn new skills such as Wiki development and learning Marketing first hand and people skills. Working in open innovative companies is like working for a new startup, in which capital is limited, but passion is everywhere, and there is will to improve even when there are limited resources, whereas working in closed innovative companies is challenging as resources are present, but competition drives the work.

Today topic is more of a self reflection and less of a guide, compared to previous topics.

However, I will post a second article about Edge Strategy soon, as I am reading a book about it, and will be related to Corporate Strategy.

Strategy Friday

Hello and welcome back to Strategy Friday, the place where i discuss strategies theories for organisations.

Today topic is about the theory developed by professor Micheal Porter from Harvard Business School.

This theory is used widely by organisations as a contrast to the Blue Ocean Strategy.

I will discuss the Blue Ocean Strategy in my future post, but just keep in mind, that Blue Ocean Strategy is more about how to compete than what to compete.

Micheal Porter in his theory goes and analyses the functions of businesses from the Macro level, seeing the forces which influence the marketplace, and went to expand his theory also to Countries.

The main forces influencing business are: Supplier Relations, Buyer Power, Possible Product Substitutes and the Threat of new entry from other businesses, all influencing the competitive marketplace.

A useful picture is provided by Mindtools in their website, in which define the strategic tool and what to analyse.

Classical example of this analysis is used in the airline industry, however, is applicable also to other industries such as the mobile phone industry, where the supplier relations is the whole manufacturing supplier relations, thus for Apple can be the supply of chips from Foxconn, the threat of new entry is high as businesses enter the market developing new products constantly, the buyer power is also very high as, purchase is seen almost as a commodity in which one phone does not vary a lot from others, but to contrast that, Apple has a large brand conscious clientèle and to conclude the competitive landscape, is very competitive, thus having all functioning like a chain in which the gears run very fast.

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Digital Disruptive Technologies

Today’s topic of innovation management goes and discuss an important trend started by a research of Harvard Professor Clayton Christensen.

The topic is one of Technological Disruption. The main force, which allows small incumbents to compete against large players in the marketplace.

Not everybody is aware of this trend in Innovation Management is almost 30 years old, started in 1995 goes and analyses various technologies and industries in which innovations have brought to its knees big corporations.
As discussed in his introduction in the Innovator Dilemma, companies often fail because there are cheaper new technologies which allow targeting future customers revenue, even if at the time of the release of the original product they are unaware of the latest Technology.
Clayton divided its book into ten chapters and discussed in the first chapters about the failure to implement these new innovations.
At the same time, goes and proceeds by explaining success strategies in the field of business.
It’s essential to notice that most of the literature is wrong to target only to failure, but he builds his case against valid points. There are other schools which also sustain his thesis, which, define that most often is the management fault of big companies which make the company fail to implement or develop new technologies. In recent times, it is explained that this failure in management is not only due to new cheaper Technology, but also because successful companies try to compete in new market segments which are not ready.
There is a rationale behind all that, and that with the advent of the disruptor, the existing player has already focused its energy on his current strategy, thus, is unable to concentrate his effort to the new Technology.

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In my latest article, I gave a little explanation of what disruption management should be about, but I forgot to mention the importance of disruption in business.

According to research from Stanford University, every disruption brings prosperity as GDP grows, and so does the spending.

Currently there the trend is in the banking industry.
New technologies have been developed that allow for a better mobile banking experience, and the economist goes and explains that there could be saving for each person if these new technologies are implemented.
Currently, I have not completed the section about disruptive technology because it is a chapter which I’m reading currently about in my literature research, so please do allow me some more time to collect more informations about new technologies such as bitcoin and blockchain and how they can be implemented in other markets and industries, not only in the financial sector.

Currently, I’m also reading Hernando De Soto, Why Capitalism Triumph in the west and fails elsewhere, and I believe that this two topics can be interconnected, as his thesis is about property law and services to extralegal, and I’m becoming a fan of this topic.

Innovation management as part of Change Management

Thank you for following this blog post, and if you haven’t started to follow me yet, I would suggest you to do it and leave some comments, as most of the blog post are from my readings, but I can be wrong…

Today topic is relating Innovation Management to Change Management, an aspect of management related to business performance.

Innovation Management can be seen as a subset of change management, in fact, in change management there are four types of strategic changes, which are:

Technology, Product and Services, Strategy and Structure, Culture Changes.

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These all relates to Organisational Change, in the sense that in order to stay competitive, firms, have to change either one of this aspects, with time.

Technology Change and Product and Services change is what is more related to Innovation Management, in fact, companies in order to succeed implement new technologies, such as communication technology, or create new products and services to sell to the customer, in order to stay ahead of competition.

 

No company can say that they dont implement some change. In fact is by  implementing some kind of change that business can stay competitive, it is even told that competitive advantage is created from strategic changes.

Strategy and structure are more related to organisational design, in fact, from what i understood, organisational design is the alignment of corporate strategy with the working of the workforce, or more precisly with corporate functions.

Last but not least, cultural change is the most difficult to implement, as there is always tension and people tend to like the status quo, thus avoid changing. Cultural change can be anything, from the change of workhours, to change in how customers are treated by the employee.

Innovation Management #3

Today’s post goes and discuss various technique to stay innovative for corporations.

The easiest method is via brain storming (mind mapping) ideas, the second one is via the idea box.

Both these techniques are better explained in an ebook called: Thinker toys

These techniques are easy to draw than to be explained.

Plenty of material can be found on the internet.

Mind mapping consist in using a blank paper and writing in the middle the concept, or the idea researched, and then connect by lines around it all connections that come to mind, for example, in purchasing a car, the idea is to go and look for all the issues that can arise when buying it.

From this start then is to go and draw connections also with the concept that for outsiders maybe don’t make sense, but for you, the painter of the map maybe easy understandable. There are plenty of software and tools the helps in creating mind map, however nothing beats the original Tony Buzan book which draws also on cognitive science theory. In fact is suggested that when drawing lines or connections, different colors are do be used.

The second approach for idea generation is the idea box.

This is explained in thinker toys as a method which exponentially increases the chances of getting good ideas to the consumer.

Last but not least I’m going to introduce the term of lead user method.

Lead user method is a technique explained in innovation management by Harvard business school.

This technique goes and explains that technological advancements are usually achieved not always by the manufacturer of goods, but mostly by the lead user.

This allow for new products to be developed in collaboration of a network of experts which cooperate in the development of new tech.

This goes hand in hand with the explanation of the S curve, a curve used in innovation management to explain how a new product is marketed to various market segment according to their own skills and expertise.

Innovation Management #2

Creating Market Space

In today’s post, I am going to discuss of a technique used in Marketing and Corporate Strategy which is adoptable to Innovation Management.

This technique is called value curve analysis.

By analysing what is the function and emotion which are targeted by competitors, is possible to target new market and create space for new nieches.

This tool is very practicable, although is difficult to explain, there are plenty of example of companies using this strategy, and is widely explained by Harvard Business School.

An example is the chart provided in personal finance software in the 80s vs pen and pencil use for personal finance calculation.

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the main point to describe is the there are key point into analysis:

This are the points:

Remove the points taken for granted.

Diminuish the factors below industry standard.

Increase the factors above industry standard and create factors which the industry does not offer.

The main key take aways are that is important to look at what competitors offer in the industry, look what buyers are willing to spend money on, look on substitutes in terms of products and services, target emotions and functionality, look across time horizon in following current trends.

Innovation Management

An important initial step in Business and Management is Innovation Management, therefore how to remain innovative and have new product or service ideas.

This is the initial step in innovation management.

With this blog stub, I will try to provide some examples studied in University on how companies become and stay innovative in order to achieve competitive advantage. For who does not know what a competitive advantage is, is simply a term to define how companies succeed.

When developing or inventing new products or services is always important to think how much the market (customer) would pay?

Then in ideating, there are mainly two segments: B2B and B2C.

The main reason is that certain products are made for retail, thus, becomming Business to Consumer, other product or services, are Business to Business products or services, and are mostly defined as used in collaboration or partnership with other companies.

Innovation management key point is the management of creativity, and define the difference between a technology (coding or tacit knowledge),

and innovation, taking novel ideas and technology to market.

The main examples are by the way on the different ways to use a brick, which is an exercise, which i would suggest everybody on doing to find out new creative ways of idea generation.

With this Blog Post i provided a small example of creativity in action, for further get to know the business capabilities, feel free to contact me with the contact page, and I will sort out an appointment for a consultation.