Inspired Business by Peter Fisk

A i i dA more inspired approach toapproach to

customersinnovation

d thand growthPeter Fisk, April 2008

Peter Fisk. All Rights Reserved,© The Genius Works 2007

p

1. Seeing things differently

Outside inCustomer viewEnergiser pyramidsEnergiser pyramidsCustomer propositions

2. Thinking different things

Future backParallel playersEmerging marketsEmerging marketsInnovative solutions

3. Delivering extraordinary results

Radical actionGrowth driversBusiness lifestagesBusiness lifestagesInspirational leadership


The future is not guided by the past


g y p

Every yearWe destroy 44 million acres of forestWe lose 100 million acres of farmlandWe create 15 million acres of new desertWe use 160 billion tons of waterOur population rise towards 9 billionThe rich get richerWe want more

We can’t go on like this


g

Einstein and Picasso


Rightbrain

LeftLeftbrain

Thinking differentPeter Fisk. All Rights Reserved,© The Genius Works 2007

Thinking different

Outside in

Inside out

Outside in + Inside outOutside inPeter Fisk. All Rights Reserved,© The Genius Works 2007

Outside in

WWomen Luxury

South

YouthCommunities

GayHeritage

Entertainment

BoomersGayHeritage

Green TravelEast

Emerging marketsPeter Fisk. All Rights Reserved,© The Genius Works 2007

g g

Customerbroader

BusinessBusiness

view

CustomerBusiness

narrowview

narrowview

Customer contextPeter Fisk. All Rights Reserved,© The Genius Works 2007

Your M&SPeter Fisk. All Rights Reserved,© The Genius Works 2007

Your M&S

Energisers“Aspirations” “Distinguishers”

Enablers

g

“Wants”

p

“Differentiators”

g

Enablers

E ti l“N d ”

Wants

“M t D ”

Differentiators

Essentials“Needs” “Must Dos”

Source: Marketing Genius

Energiser pyramidPeter Fisk. All Rights Reserved,© The Genius Works 2007

g py

Sales £m

Rapid growth from £9.3m to £51.5m in 4 years, asreputation spreads byword of mouth. Investmentby Cadbury Schweppes

50

y y ppfunds innovation whilst retaining focus.

40

30

20 Green & Blacks

Brand repositioned in 2002 from worthy organic to luxury ,,,intense and darkat a premium price

20

10

Green & Blackslaunched in 1991.Rich, bittersweet, organic chocolate with niche appeal.

Demand driven by new luxurious packaging,exotic range extensions

0

exotic range extensions, affinity brand partners,broader distribution and targeted sampling.

Green & Blacks from good to luxury

2003 2004 2005 20062000 2001 20021991


Green & Blacks from good to luxury

Personal valuePersonal value of benefits to customer

Perceived value

“Value forMoney”

relative toalternatives Price paid

by theconsumer

Profitability

Perceived valueSource: Marketing Genius


Customer Proposition

S

C

Who?

Wh ?

Identify the target audienceyou are seeking to engage

Explanations

C

Q

What?

Why?

Describe the audience’s context,their issues, needs and wants

Q

A

y

How?

Select two unique benefits which arecompelling and differentiate you

Explain how you can offer these benefits

How much?

Explain how you can offer these benefitsbetter than anyone else, ie the features

How much will you charge for this% h /l th tit ?

What not?% much more/less than competitors?

What are the trade-offs for customers iethey could get elsewhere? (for internal use)

Customer propositionsPeter Fisk. All Rights Reserved,© The Genius Works 2007

p p

Geek SquadPeter Fisk. All Rights Reserved,© The Genius Works 2007

q

… just call their special agents, or come down the precinct


j p g , p

Future back

Now forward

Outside in + Inside outFuture backPeter Fisk. All Rights Reserved,© The Genius Works 2007

Future back

Spaceport AmericaPeter Fisk. All Rights Reserved,© The Genius Works 2007

p p

ChangeSource: Marketing Genius


g

Bulk water

Sports drinksro

wth

rate

Retail water

Juice drinksReady-to-drink

tear ave

rage

g

tea

Juices and nectars

5 ye

ar

Juices and nectars

Ready-to-drink coffeeBubble size reflects estimated

CarbonatedSoft-drinksThe Coca-Cola Company

Other brands

global beverage profits

Industry unit margins ($)

Coca-ColaPeter Fisk. All Rights Reserved,© The Genius Works 2007

Purifiedwater

1. Build capability

2. Grow marginsat

egic

fit

p yand accelerate

Stra

Juices and nectars

Mineral water

RTD coffee

Fruitdrinks

RTDtea

Sportsdrinks

3. Participate selectively

Energydrinks

4 A h diff tlBulk water Powders 4. Approach differently5. De-emphasise

Market attractiveness

Coca-ColaPeter Fisk. All Rights Reserved,© The Genius Works 2007

DisneySource: Marketing Genius


ApplePeter Fisk. All Rights Reserved,© The Genius Works 2007

Apple

1. Business modelhow the enterprise makes

5. Product performancebasic features, performance and functionality

2. Networkingenterprise’s structure/value chain

money6. Product system

extended system that surrounds an offering

7 Service

Finance DeliveryProcess Offering

7. Servicehow you service your customers

Business model

Networking Channel Brand Customer experience

Core process

Enabling process

Product performance

Product system

Service

8. Channel

9. Brandhow you express your offering’s

3. Enabling processassembled capabilities

4 C

how you connect your offerings to your customers

10. Customer experience how you create an overall

how you express your offering s benefit to customers4. Core process

proprietary processes that add value

you create an overall experience for customers

Business innovationPeter Fisk. All Rights Reserved,© The Genius Works 2007

Desperate

iPodPhone Photo

Video DesperateHousewives

Motorola

Podcasting 60G Shuffle

Nano(RED)

IconicdesigniTunesMusic

StoreLegalisingFilesharing

White Imitation AdG

Mini

iPodBrand

U2Vertigo

ExclusiveReleases

Success

cables And buzz Graphics

SpecialEdition

Story

Apple Steve JobsiMac

Molecular solutionsPeter Fisk. All Rights Reserved,© The Genius Works 2007

Jones Soda “Nobody actually needs our s**t”


y y

Border crossingPeter Fisk. All Rights Reserved,© The Genius Works 2007

g

Radical ideas

Practical action

Outside in + Inside outRadical actionPeter Fisk. All Rights Reserved,© The Genius Works 2007

Radical action

$354.7m

Revenue

$108.8m

$64 4m

$1.2m$13.5m $17.0m

$64.4m

Profit

2003 2004 2005 2006

Crocs


Segway



g y

Strategic

OperationalG th

InnovativeGrowth

Growth

Growth

Growing by redefining context and developing

Growing through strongerdifferentiation and deeper

Growing by transforming markets with disruptioncontext and developing

new concepts:

• New concepts• New applications

differentiation and deeper customer engagement:

• New customers• New channels

markets with disruption and breakthrough ideas:

• New ventures• New categories pp

• New markets• New partners• New processes• New structures

• New propositions• New products• New communication• New pricing

g• New businesses• New acquisitions• New capabilities• New business models

Growth platforms


Impact Strategic growth initiatives

Hi h i t• High impact• High risk• Slow

Operational growth initiatives• Low impact• Low risk• Fast

Innovative growth initiatives• Medium impact• Medium risk

Sl

Time

• Slower

Growth portfolio


ManagementLeadership ManagementLeadership Managementp Managementp

Providing focus

Making decisions

Inspiring people

Creating direction

Providing focus

Making decisions

Inspiring people

Creating direction Making decisions

Delivering results

Creating direction

Encouraging action

Making decisions

Delivering results

Creating direction

Encouraging action

Inspiring leadership



p g p

Create Launch Stabilise Extend Mature Evolve Exit

Revenue grows rapidly

Revenue grows rapidly

Revenue grows rapidlywith new and distinctive proposition in high growth markets

Revenue grows rapidlywith new and distinctive

g p ywith new and distinctive proposition in high growth markets

Revenue grows rapidlywith new and distinctive proposition in high growth markets Revenue grows rapidly

with new and distinctive proposition in high growth markets



g o a e s

The 7 Lives of Business


Create Enter Stabilise Expand Optimise Extend Evolve

• Evaluate best k t t iti

• Building awareness and initial sales

• Consolidate and grow best customers

• Enter new markets and categories

• Focus on best markets customers

• Extend growth into new markets

• Evaluate options for exit and renewalmarket opportunities

• Articulate business purpose and strategy

• Develop initial concept for launch

Prio

ritie

s and initial sales.

• Delivering on the promise.

• Maximising impact of brand launch

grow best customers

• New strategy for secondary growth

• Improve process efficiency

and categories

• Drive innovation and service delivery

• Find more partners to extend reach

markets, customers

• Manage/rationalise product portfolio

•Fully exploit key business assets

new markets

• Drive strategic innovation

• Venturing and new partnerships

for exit and renewal

• IPO, trade sale or break up

• Or continue to next phase of growth

alle

nges

• Getting the business set up

• Developing an initial business plan

• Marketing on a limited budget

• Limited resources, everyone hands on

• Getting beyond steady revenues

• Tension between founders and staff

• Managing complex, diverse activities

• Maintain focus on best opportunities

• Dispose of non value creating areas

• Simplifying internal structure, strategies

• Rethink what is the core business

• Drive fundamental change

• Evaluate all options independently

• Maximise value of business assets

Cha

ion

• Securing start-up funding if needed

• Identifying first audience to target

• Managing cashflow closely

• Build awareness of new brand

• Retain customers and best people

• Identify new market and product options

• Consider mergers and acquisitions

• International, multi segmented CVPs

• Transparent KPIs and management

• Rationalise portfolio of customers

• Reenergise people and leaders

• Emerging markets and whitespaces

• Innovative brands and propositions

• Consider best form and timing of exit

Pro

posi

t

• Articulating brand and proposition

• Developing initial product(s)/service(s)

• Use affinity and channel partners

• Deliver initial product(s)/service(s)

• New propositions for new segments

• Partner with established brands

• Portfolio of quality products/services

• Licensing through third parties

•Rationalise portfolio of products

• Refresh brand and propositions

• Innovation of business model

• Customised solutions, channels

• Strong customer relationships

• Well protected rights and patents

nves

tmen

t • Expense of start-up and personal time

• Cost of R&D and prototyping

• Design of brand

• Cost of marketing and sales

• Cost of outsourcing back office

• Cost of new product development

• Cost of outsourcing back office

• Cost of entering new markets

• Recruit more people to support

• Cost of loans to

• Cost of brand and web refresh

• Cost of databases and analytics

• Cost of significant business change

• Cost of ventures and partnerships

• Cost of professional advice

I Design of brand , website, materials

Cost of loans to support growth

The 7 Lives of Business


Create Launch Stabilise Extend Mature Evolve Exit

• Virtual and informal • Small team, work • More structured • Structured teams • Clearly managed • Refresh leadership • Governance

Lead

ersh

ip

Virtual and informal founder(s) only

• Funded by founders and grants

• Typically 100% owned by founders

Small team, work together, collectivism

• Maybe some private seed funding

• Typically 80-100% owned by founders

More structured and directed

• New managers, and staff gain equity


Structured teams and management

• New investors and bank lending


Clearly managed business units

• Formalise /clarify governance model


Refresh leadership team if jaded

• Corporate ventures to drive innovation


Governance ensures right action

• Fast, positive and collaboratively

• Typically 0% owned by founders

The 7 Lives of Leaders

y y y y y y y


Thinking

Individual Organisational

The dimensions of business genius

Doing


g

Seeing things differently


Thinking different things Thinking different things


A better vision.Achieving extraordinary results


Here’s to the crazy ones.

The misfits The rebelsThe misfits. The rebels.The troublemakers.The round pegs in the square holes.The ones who see things differently.

They invent They imagine They healThey're not fond of rules.And they have no respect for the status quo.

You can praise them disagree with them

They invent. They imagine. They heal.They explore. They create.They inspire.

They push the human race forward.

Maybe they have to be crazyYou can praise them, disagree with them, quote them, disbelieve them, glorify or vilify them.

About the only thing you can't do is

Maybe they have to be crazy. How else can you stare at an empty canvas

and see a work of art?

Or sit in silence and hear a song that's never been written?About the only thing you can t do is ignore them. Because they change things.

Or sit in silence and hear a song that s never been written?Or gaze at a red planet and see a laboratory on wheels?

While some see them as the crazy ones,we see genius.we see genius.

Because the people who are crazy enough to thinkthey can change the world,

are the ones who do.are the ones who do.

The crazy onesPeter Fisk. All Rights Reserved,© The Genius Works 2007

y

A i i dA more inspired approach toapproach to

customersinnovation

d thand [email protected]

www.theGeniusWorks.com/downloads


Peter Fisk is an experienced strategist and marketer, having spent many years working with the likes of American Express and British Airways, Coca Cola and Marks & Spencer, p y pBT and Cable & Wireless, Microsoft and Philips, O2 and Vodafone.

He is author of the new best-selling book Marketing Genius which explores the left and right-brain opportunities for marketing to deliver extraordinary results in today’s complex

k t ( M k ti G i Li ) H i l th th f B i G imarkets. (www.MarketingGeniusLive.com). He is also the author of Business Genius, an inspirational guide to entrepreneurial growth, to be published on 15 March 2008.

Peter is founder of The Genius Works (www.thegeniusworks.com) , which creates and delivers inspirational events executive development and consulting solutionsdelivers inspirational events, executive development and consulting solutions.

Marketing Genius has sold over 20000 copies since its launch in Spring 2006, and is being translated into 26 different languages. He is now writing two new books – Business Genius on how accelerate more profitable, sustainable growth ; and Green Business on p , g ;how to achieve commercial success by doing the right thing ethically and environmentally

He was previously the CEO of the world's largest marketing organisation, the Chartered Institute of Marketing, Partner at strategic innovation firm The Foundation, Managing Di t f B d Fi l d th l b l k ti lti t f PA C ltiDirector of Brand Finance, led the global marketing consulting team of PA Consulting Group, and managed brands and strategy at British Airways.

He is an international speaker on all aspects of strategy, marketing and innovation, and continues to advise some the world’s leading brands Business Strategy Review recentlycontinues to advise some the world s leading brands. Business Strategy Review recently described him as “one of the most important new business thinkers”.

[email protected]


g

.

Inspired Business by Peter Fisk

Education

Transcript of Inspired Business by Peter Fisk