Chapter Excerpts

 

CHAPTER 1 HIGHLIGHTS

• The key to economic success in developing and maintaining brands is to design intellectual property strategy into the creative and innovation process from the beginning through the use of collaborative, multidisciplinary teams — to effectively rewire the branding process.

Most innovation or brand campaigns are valued based upon increased margin, increased market share, increased revenue, increased market value, or some combination of the above. Every aspect of a campaign can be protected: name, logo, slogan, product design, package design, distinctive color schemes, music for the ad campaign, copy for the ad campaign, script for commercials, content on web sites, look and feel of a retail location or point of purchase. Every aspect of a branding campaign can be protected and can endure if it is considered when it is created. This gives it a higher return on investment. Leadership must set a vision and create a culture that fosters and embraces multidisciplinary teams. A process must be put in place to facilitate multidisciplinary teams. Common goals, collaboration, and teamwork are rewarded through financial and nonfinancial recognitions.

• For many years, the largest companies in the world were able to dominate the marketplace by their size, capital power, and ability to leverage and tap into resources, easily boxing out competitive threats. This facilitated and supported a linear way of developing new ideas, technologies and brands. This way of thinking dominated management and leadership styles of leading companies from the industrial revolution through most of the twentieth century, creating very linear processes with silos and fiefdoms controlling.

With the flurry of mergers and acquisition activity of the 1980s, corporate cultures were merged, further reinforcing the silo phenomenon in what were now mega-companies.

• The technology age arrived in the last part of the twentieth century with an increasing acceleration of change in the business landscape, forcing company leadership to face new challenges and competitive threats unlike those at any time in its history, increasing costs to do business and diminishing margins.

As global marketplaces, once relatively untapped, became competitive threats, the previously dominant companies now faced competitors that could do the same thing but with significantly less overhead and much higher margins.

• At the same time, technology leveled the playing field by creating access to resources that didn’t exist in previous years and entrepreneurial companies, often armed with venture capital backing, could now compete head to head with the largest companies in the world, putting an increasing demand on the need for fresh, new ideas.

Consumers also became more powerful than ever before. For decades, companies dictated what would be developed and then created ad campaigns to convince consumers they needed it. Now, consumers are in the driver’s seat, picking and choosing what they want, when they want it, and abandoning those companies who fail to head their demands.

• The largest companies in the world recognized in the 1990s that they could no longer function in silos and develop ideas in a linear fashion and began to evolve into a more collaborative model with consumer needs at the center, ever driving the process.

• Then as the economic meltdown occurred in 2008, companies recognized that access to capital would be constrained, transparency of executive activity would be demanded, and the need to maximize return on investment on a longer term basis would become paramount to survival.

• With these many factors putting significant pressure on contemporary companies, the need to innovate, develop, and brand in a smarter way has been causing the old silo approach to management to evolve into a new, collaborative model — a Brand Rewired.

The Silo Approach

 

The Brand Rewired Approach