TransformationTransformationis not an optionis not an optionStan SthanunathanVice President – Marketing Strategy & InsightsVice President Marketing Strategy & Insights

September 2011

CASE FOR CASE FOR

WHAT IS COMMON ACROSS THESE BRANDS?

THEY ALL CREATED NEW CATEGORY THEY ALL CREATED NEW CATEGORY

BUTBUTBUT…BUT…

THE WORLD IS CHANGING THE WORLD IS CHANGING RADIPLY

GREATNESS CANNOT GREATNESS CANNOT BE TAKEN FOR GRANTEDBE TAKEN FOR GRANTEDGRANTEDGRANTEDCHANGE OR PERISH CHANGE OR PERISH IS THE NEW MANTRAIS THE NEW MANTRA

BRAND CREATION CYCLES ARE GETTING MUCH SHORTER

Coca ColaCoca Cola Coca ColaCoca ColaCoca-ColaMicrosoftIBM

Coca-ColaMicrosoftIBM

20012001 Coca-ColaIBMMi ft

Coca-ColaIBMMi ft

20102010IBMGEN ki

IBMGEN ki

Microsoft

GoogleMicrosoft

GoogleNokiaIntelNokiaIntel

gGEMcDonalds

gGEMcDonalds

DisneyFordDisneyFord

IntelNokiaIntelNokia

McDonaldsAT&TMcDonaldsAT&T

NokiaDisneyHP

NokiaDisneyHPHPHP

5

Source: Interbrand Best Global Brands 2010

CHANGE C GIS NOT AN OPTION

ACTING OR BUT… ACTING OR NOT…

BUT…NOT…IS A CHOICE

HAVE WE CHANGED FAST ENOUGH TO BECOME CHANGE ENOUGH TO BECOME CHANGE AGENTS IN BUSINESS?

of budget is spent on “Rear View” Research*of budget is spent on Rear View Research

* Nielsen/Brand Tracking/Validation type researches

of the time is spent in report cards, debatesof the time is spent in report cards, debates on data quality and explaining the past

* Nielsen/Brand Tracking/Validation type researches

No wonderNo wonder

of research leaders indicated they are eitherof research leaders indicated they are either “neutral” or “dissatisfied” with the impact of marketing research in their companyof marketing research in their company.P1-Q5a. How satisfied are you with the impact of marketing research throughout your company? 1 to 5 rating scale (1=very dissatisfied)

Business “as Business “as usual” is not usual is not an optionan option

O R lOur RoleProvide inspiration Provide inspiration

d ti t and provocation to drive transformational changechange

How can we transform How can we transform together?

It t t ithg

It starts with…Clearly defining the role Clearly defining the role of Research Agencies & o esea c ge c es &Insights Departmentsg p

Research Agencies: EnableResearch Agencies: EnabletoClients:Anticipate and meettoClients:

needs of our customer and Anticipate and meet

needs of our customer and consumers in the most consumers in the most sustainable and profitable waysustainable and profitable way

How do we How do we get there?get there?

WE NEED A CHANGE OF MIND SETOF MIND-SET

It is not about following the

It is about helpingfollowing the

change as helping companies

quickly as possible

to shape the changepossible change

Providing Insights

Provoking TransformationInsights Transformation

ListeningQuantifyingthe Expected

Listening for the the Expected Unexpected

Focus on technical Focus on ROI, technical challenges &

,better execution &better

mousetraps!execution & value creationmousetraps!

LeveragingSeeking “What WeLeveraging

“What We What We

Don’t Know” & Know” “How to Know

What WeWhat We Don’t Know”

WE NEED TO WE NEED TO BECOME MORE BECOME MORE INNOVATIVE IN INNOVATIVE IN OUR APPROACHES

WE DON’T KNOW WHAT WE DON’T KNOW AND… DON T KNOW AND… WE DON’T KNOW HOW TO KNOW WHAT WE DON’T KNOWKNOW WHAT WE DON T KNOW

Focus SurveyGroups Research

ObObserveListenListen

SynthesizeyDeduce

THESE ARE NECESSARY BUT NECESSARY BUT NOT SUFFICIENT NOT SUFFICIENT CONDITIONS CONDITIONS TO SURVIVE TO SURVIVE AND GROWAND GROW

BUT FOR US BUT FOR US TO THRIVE… TO THRIVE… WE NEED TO EMBRACE SOME KEY PRINCIPLES

EmbraceEmbrace Technologyec o ogy

Quickly…Quickly

OUR TRACK RECORD IS NOT GREATIS NOT GREAT

10 Years

75 Years

27 SEPTEMBER 2010

Classified - Internal use

28

EmbraceEmbrace Risks

Statistical Significance is widely misused g f yand vastly overused: the result is not necessarily interesting, important, y g, p ,large, meaningful, causal or predictable in the future. It is NOT a badge of

i ifi if g f

scientific rigor.

I j h b i “ b bl It just says the observation “probably happened” in that population.

—Andrew Ehrenbergg

DreamDream

InternalizeInternalize

BecomesBecomes TrueTrue

“Imagination is the beginning of Imagination is the beginning of creation. You imagine what you creation. You imagine what you desire, you will what you imagine and at last you create

h t ill” what you will”

—George Bernard Shaw

SET ASIDE SOME SET ASIDE SOME MONEY FOR EXPERIMENTATIONEXPERIMENTATION,SHARE SUCCESSES ANDSHARE SUCCESSES ANDFAILURES

DO WE HAVE THEDO WE HAVE THEGUTS TO CREATE A HALL OF SHAME?

Focus onFocus on Businessus essOutcomes

J b i t h Job is not over when a report is delivered a report is delivered… in fact our work has in fact our work has just begunjust begun

Think RelationshipThink RelationshipNOT T tiNOT Transaction

Focus onFocus on Talent a e tAcquisitionq

TOP RECRUITERS IN BUSINESS SCHOOLSBUSINESS SCHOOLS

McKinsey Booz

Goldman Sachs Google

Bain AT Kearney

WHAT CAN WE DO TO ATTRACT THE BEST AND THE BRIGHTEST?BRIGHTEST?

ShiftShift Resources esou ces

PROVIDE INSPIRATION ANDNOT EXPLANATIONNOT EXPLANATIONFROM: TO: FROM:80% ON “REAR VIEW” RESEARCH

TO: 50% ON “FORWARD LOOKING” INSIGHTSVIEW” RESEARCH LOOKING” INSIGHTS

$$$$$ $ $$$$ $$$$$ $ $$$$$ $

LeverageLeverage CreativityC eat ty

PRESENTATIONS:EXPERIENTIAL & IMMERSIVE EXPERIENTIAL & IMMERSIVE EXPERIENCES

Visual Data Densevs.

RULE FOR YOU TO CONSIDER:NO MORE THAN 7 DATA NO MORE THAN 7 DATA

Visual Data Dense

NO MORE THAN 7 DATA NO MORE THAN 7 DATA POINTS IN A SLIDEPOINTS IN A SLIDE

ConfidentConfident Thought oug tLeaders

BE PROACTIVE.BE PROACTIVE.OUTSOURCE OUTSOURCE PROCESS & PROCESS & IN-SOURCE THINKING

EXPERIMENTEXPERIMENT

SHARE SUCCESSES ANDANDFAILURESFAILURES

QuestionQuestion ConventionalWisdom

Average IQ in this room?

If we can’t If we can’t If we can t If we can t drive CHANGEdrive CHANGEdrive CHANGE,drive CHANGE,who can?who can?who can?who can?

Thank YouThank YouThank YouThank You