Professional Documents
Culture Documents
White Paper
Business Case
for
Enterprise
Strategies and business metrics for managing the product launch, supporting field sales, and enabling self-service access to multichannel marketing materials
How a centralized repository and related digital media services reduce the cost and speed time to market of brand identity elements, selling images, and marketing collateral
Industry emphasis:
Global enterprises Life sciences and pharmaceuticals Media, entertainment, and publishing
MICHAEL MOON
GISTICS MISSION
D E S I G N , L AY O U T, EDITING, PRODUCTION
DAVID DUNNING
dunning@gistics.com
MELANIE SPILLER
melaniespiller@earthlink.net
SUZANNE E. BANNINGSHARKY
Founded in 1987, GISTICS Incorporated researches return on investment for the adoption of new technologies and publishes its findings in comprehensive market reports and single-topic executive white papers. Executive white papers enable senior executives at end-use firms to recognize an attainable opportunity and move quickly to exploit it. These white papers present highly visual explanations of complex technologies and explain how to profit from them by following bestpractice deployment prescriptives.
ADVISORY BOARD
sharky@maddworldmedia.com
STEVE TURNER
GISTICS acknowledges the following individuals for their contribution to this white paper: Allister Lundberg, Product Manager, Adobe Gregg Brown, Group Product Manager, Adobe Jeff Martin, CEO, Tribal Brands Marion Melani, Manager, Product Marketing, Adobe Scott Pierce, Product Manager, ePaper Server Solutions Patrick Cian, Product Manager, Documentum
GISTICS Incorporated 6601 Shellmound St. Emeryville, CA 94608 www.gistics.com 510 594 6974 tel 510 601 0563 fax 2002 GISTICS Incorporated. All rights reserved. Printed in the U.S.A. GISTICS and its agents have used their best efforts in collecting and preparing information published in this white paper, Business Case for Marketing Content Repositories in the Enterprise. GISTICS does not assume, and hereby disclaims, any liability for any loss or damage caused by errors and omissions in this white paper, Business Case for Marketing Content Repositories in the Enterprise, whether such errors or such omissions resulted from negligence, accident, or other causes.
GISTICS
AUTHORS
gist \jist\ n -s [AF, it lies (said of a legal action), fr. MF, 3d pers. sing. pres. indic. of gesir to lie, fr. L jacre to lie, fr. jacere to throw more at JET (to spout)] 1: the ground or foundation of a legal action without which it would not be sustainable 2: the main point or material part (as of a question or debate) : the pith of a matter : ESSENCE (the ~ of a question) <the ~ of all that can be said upon the matterR. L. Stevenson>
PA G E
PA G E
2 3
What does this paper address? Who should read it? What single factor most affects revenue growth and the success of integrated marketing? What makes the global launch for large enterprises so difficult to manage? What types of systems can marketing harness for the successful launch? What criteria do most CMOs use to measure a successful launch and the performance of industry partners? How can a marketing content repository help increase revenues, ensure new launch successes, and reduce costs? What are the key elements of a marketing services platform? How does workflow automation of marketing services speed time to market, reduce cost, and systematize best practices? maximize revenue growth?
12
How can a creative services group slash expenses and cycle time in preparing and distributing graphics to field sales, internal users, and external partners? How can a Web content specialist recoup 828 hours per year previously spent "Webifying" graphics? How can a regional marcom manager localize a promotion with native language text and accurate currency conversions? How can enterprises speed the distribution of media kits worldwide, using the Web and automation to cut costs and time to market? How can a sales executive use the presentation library of a marketing content repository to make 1.1 more sales calls per week? How does workflow automation of just six activities pay for a marketing content repository in less than one year? How can a CFO measure the production of customer value, using automation and activity analysis of the marketing process as the basis of fact? What does GISTICS do? What publications does it offer?
13
4 5 6
14
15
16
8 9
17
18
1 0 How can CMOs use workflow automation to 1 1 How can a marketing department eliminate
external agency costs, reduce time to market for product images, and exert greater control of the brand identity?
20 21
How can you receive other publications like this one or request additional information from GISTICS?
SERIES//MANAGEMENT ADVISORY
GISTICS
GISTICS Research of 10,000 firms worldwide reveals that the lack of systems information technology can hobble the launch of a new product or campaign. Lack of systems can also contribute to the failure to execute an otherwise winning marketing strategy. This paper examines the system requirements for an effective product launch as well as the execution of an integrated, multichannel marketing strategy.
ROLE OF A MARKETING CONTENT REPOSITORY
A C T I V I T Y- TA S K A U T O M AT I O N
This white paper calls attention to the pivotal role that a marketing content repository can play in reducing the time to market for a new product or service. In particular, we show how greater speed, coordination, and consistency in the creation and distribution of marketing content and brand resources contribute to the successful launch. A marketing content repository not only speeds the delivery of selling images, content, and marketing support material to the front-line sales organization, but a marketing organization also can use this repository to customize content to a distribution partner's requirements, localizing materials for a particular language or culture, and personalizing materials to individual buyers.
NEW MEDIA SERVERS SPEED CYCLE TIME
This paper compares the before-and-after results of activity-task automation in six launch-oriented areas, documenting significant time and cost savings achieved through automation.
C M O s A N D C I O s W H O S E E K I T- B A S E D S T R AT E G I E S F O R G R O W I N G MARKET SHARE
R&D
OPERATIONS
MIS/IT
MARKETING
SALES
SERVICE
Product development
Publishing
eCommerce eBusiness
Brand management
Sales operations
Professional services
Project leaders
Creative services
B2E portal
Marcom
Support services
Instructional design
Technical staff
Productions
Content production
Fulfillment
Field presentations
Training
GISTICS
and personalization showcase one feature of a marketing content repository: media servers such as Adobe Graphics Server. The use of media servers exploits a bottom-up automation strategy that we call activity-task automation. Rather than reengineering large complex business processes and workflows, activity-task automation targets small, often-repeated actions of key knowledge workers.
We show how these six automation cells deliver $3.5 million in potential annual labor savings and the reduction of 17.5 days in time to market for a major launch. On the basis of these research findings, GISTICS estimates that a large enterprise could deploy a marketing content repository in less than 90 days and at a cost of $500,000 with a probability of failure of 5 percent. This investment should break even within 12 months, sooner if an enterprise can translate anticipated timeto-market gains into incremental sales.
C O M P E T I T I O N , I N N O VAT I O N , A N D C U S T O M E R D E M A N D
Each year, most companies make small, incremental improvements in how they find and serve customers. Some companies, of course, achieve significant breakthroughs. As a result, they win new market share, capture new profit, and beat their competitors. Competition, innovation, and changing customer demand only accelerate the rate of change, resulting in the shortening of product lifecycles. Shorter lifecycles represent new challenges for the marketing executive today. The marketing executive must both conceive a brilliant strategy and execute this strategy with a narrower margin of error. The figure below depicts a generalized model of the value-creation processhow companies find and serve customersand the heightened role of the marketing launch.
Q U A R T E R LY R E S U LT S A N D T H E S U C C E S S F U L L A U N C H
a customer should want to buy it. Not surprisingly, this strategy produced higher sales generally, at a lower cost per sale. However three recent developments have placed new demands on integrated marketing: Waning effectiveness of mass media to create new consumer demand Massive consolidation of markets Increasing role of the Internet in the buying decisions of customers The marketing executive now allocates a growing portion of his or her budget to promotions, point-of-purchase programs, and alternative media. This reallocation has made media planning and buying more complex and longer to complete. Market consolidation means that global enterprises must now execute global marketing launches across multiple channels and multiple geographies, customizing and localizing marketing materials as required. The Internet and wireless revolutions have only just begun. As a few firms have demonstrated, smart promotions that target online brand advocacy can produce exponential sales growth.*
T H E S U C C E S S F U L L A U N C H F O R M U LT I C H A N N E L M A R K E T S
The successful launch emphasizes executionthe organizational capacity to produce hundreds or thousands of tactical results with unerring consistency and predictability. A flawed, ineffective launch leads to several negative consequences: missed quarterly revenue targets and loss of stature among the executive team. The successful launch not only represents the commitment and passion of able marketing executives and their various teams, it emphasizes well-designed and managed systems. Consistent, brilliant execution of strategy rests upon human AND technical systems.
I N T E G R AT E D M A R K E T I N G R I S E S T O T H E C H A L L E N G E
In the past, integrated marketing meant aligning advertising, publicity, and point-of-purchase programs to communicate a single, unified voice of a brandwhat a firm offers and why
Ever-shortening product lifecycles, when combined with global competition, innovation, and changing customer requirements, make the successful launch even more fraught with danger. Many companies have, or will soon, exceed their organizational competency to successfully launch new products across multiple markets and channels. This white paper examines how the marketing executive can harness new technical systems, emphasizing a set of the emerging best practices for managing the successful launch in the era of multichannel markets.
*See the GISTICS publication, Promotion ExcellenceBest practice for online and offline promotion.
The global launch involves hundreds to thousands of people who must perform their designated tasks in very narrow time frames. Failing that, flawed execution of an otherwise brilliant strategy means missed launch dates and market opportunities.
SERIES//MANAGEMENT ADVISORY
Offermarket development
Demand creation
Sales conversion
Satisfaction fulfillment
Strategic development
Value-Creation Process
CyTime.Brand.Theater.E.1.1 2003 GISTICS All rights reserved. GISTICS
so
This paper closely examines several chokepoints that can hobble a successful marketing launch and suggests how automation of critical tasks can produce meaningful timeto-market gainsup to 18.5 days. The figure below depicts many of the actors who contribute to the overall success of a marketing launch. Pressed with absolute deadlines, each contributor must perform designated tasks in very narrow time frames. Working across multiple time zones, the demands of a global launch can quickly become a 24-hour process management challenge. Every doubling of the number of contributors squares the number of opportunities to miss key deadlines and market windows. Large teams spread throughout a global market spend significantly more time coordinating and double-checking their work than small teams in smaller, unified markets.
The logic of marketing automation often breaks down when you ask the question, "Exactly what can we automate?" GISTICS analysis of successful automation projects in the area of marketing indicates that a firm should deploy automation from the bottom up, targeting a few strategic chokepoints in preestablished and operational workflows. Large, top-down deployments, such as ERP or CRM, encounter many unforeseen obstacles and often fail to achieve their business goals after years of significant investment. This white paper advocates the automation of marketing services and, in particular, six or seven activities that most firms must perform in a major marketing launch.
EVERY DOUBLING OF THE NUMBER OF CONTRIBUTORS SQUARES THE NUMBER OF OPPORTUNITIES TO MISS KEY DEADLINES AND MARKET WINDOWS
Outside counsel
Advertising Licensing
Packaging
Demand planning
Field sales
Promotion agency
Product development
Brand manager In house
Branding
Distribution manager Technology consultation Auditors
Production company
Delivery distribution
Traffic manager Government
Networks
Advertising
Factory
Creative
ProductLaunchTeam.1.1 2003 GISTICS, All rights reserved.
Large teams spread throughout a global market spend significantly more time coordinating and double-checking their work than small teams in smaller, unified markets. The automation of marketing services must target the reduction of time spent managing the marketing process. 4
GISTICS
EXECUTIVE WHITE PAPER
W H E R E A U T O M AT I O N M A K E S S E N S E
for the
E M E R G E N C E O F T H E M A R K E T I N G S E R V I C E S P L AT F O R M
The figure below depicts the core functions of a marketing services platform and how it extends the functionality of enterprise content management and the IT infrastructure. Online projects definition represents a set of Web browser-accessed functions for targeting particular markets and channels, defining budgets and efficiency metrics, and sharing a creative brief with the appropriate marketing agencies and staff. Distributed projects management enables an integrated global view (Web browser-accessed) of all projects from the point of view of a CFO tracking costs, a CMO tracking critical deadlines and expenditures against budget, and individual contributors and their day's top priorities. This function exploits the collaboration and messaging functions of a marketing services platform. Uniform sourcing automates requests for information (RFIs) and requests for proposals (RFPs) put to suppliers, for making internal vendor selection and for issuing purchase orders, change orders, and invoices. In some cases, an ERP or supply chain management system may provide the functionality for uniform sourcing. Campaign analytics enable marketing managers to track actual expenses in real time, correlating sales leads development and conversion as well as brand preference and purchase intent with cumulative marketing investments.
Digital asset repositories automate the centralized management of reusable media components and other forms of content. The repository function enables rapid retrieval of content as well as management of multiple versions and use rights. Media services automate the reuse of media components; often this function entails dynamic just-in-time rendering of graphics, documents, and Web content for a particular use. Together, these functions of a marketing services platform enable an enterprise to automate numerous activities throughout the marketing launch cycle. Many firms have already deployed a document and/or Web content management system. Enterprise content management uses a variety of integration tools and highly specialized professional service teams to add new functionality to this increasingly strategic enterprise system. In most cases, marketing services platforms use the resources of enterprise content management. However, a marketing services platform can integrate an existing document or Web content management system without having to first deploy all the resources of enterprise content management. A marketing services platform automates the planning production and logistics for the rapid execution of a major launch.
1
LAUNCH
2
LAUNCH MARKETING SERVICES PLATFORM
3
LAUNCH
The functions of a marketing services platform have grown out of several bottom-up tactical solutions. Development first occurs at the workgroup and departmental level. When integrated to enterprise content management, global enterprises can automate marketing services with a high probability of success.
SERIES//MANAGEMENT ADVISORY
Uniform sourcing
Campaign analytics
Media services
ENTERPRISE IT INFRASTRUCTURE
MarkSvcPlatform 1.1 2003 GISTICS, All rights reserved.
GISTICS
What criteria do most CMOs use to measure a successful launch and the performance of industry partners?
The chief marketing officer of a global enterprise grapples with many issues and challenges. Most successful CMOs make the execution of strategy their number one priority. This execution entails having the right people in the right jobs and having the systems for managing the marketing process. GISTICS analysis of CMOs who consistently achieve strategic business results through systematized processes has identified repeatable, predictable ways of producing consistent, high-quality tactical results. GISTICS research also reveals that many otherwise successful strategies failed to produce results due to the absence of systems and processes for managing the marketing function. The figure below depicts three criteria by which a CMO can measure the efficiency of the marketing process. Although cost remains a key concern, time (or how long it takes to produce a tactical result) often takes priority over money. Time to market emphasizes how quickly a firm can identify customer requirements, develop an appropriate offering, and bring it to market. This speed often requires that a firm master the art and science of collaboration with existing and prospective customers as well as key third parties, consultants, and trade partners. Important in the past, the product launch has emerged as the defining event for the enterprise. At no other time does marketing have such a crossfunctional visibility of its role in a company, or a more direct link between its activities and to increased sales, than in a new product launch. For these reasons, a marketing services platform must enable an enterprise to capture, codify, and propagate best practices for reducing time to market for a major launch.
R O L E O F T H E M A R K E T I N G S E R V I C E S P L AT F O R M
Speed, control, and consistency in the creation and distribution of brand resources and marketing content contribute to a successful launch. Manufacturing and distribution rely on ERP or supplychain management to speed the production and delivery of products to markets. Customer service and sales rely on CRM (customer relationship management) or SFA (sales force management) systems to speed an appropriate response to a customer request, including how to buy and use a product or service. Marketing and brand management require similar enterprise-class IT platforms to speed strategy execution the creation, production, and delivery of brand resources and marketing content to the sales force, distribution partners, and customers.
S P E E D Y, C O N S I S T E N T E X E C U T I O N O F A S T R AT E G Y I N C R E A S E S S A L E S
CYCL E
T I ME
1
Time to market
From concept to store shelf Customer requirements Collaborative development Product launch
2
Time to synchronize
Multichannel resources at points of purchase Domestic Countries Market segments
3
Time to version
Customize to a channel or season Localize to a culture or ethnic group Personalize to a customers psychographic profile
The CMO of a global enterprise seeks systems and processes for reducing cycle time for marketing services while maintaining control, coordination, and consistency of the voice of the brand. 6
GISTICS
CONTROL
COLLABORATION
CONSISTENCY
BRM3step.1.3 2003 GISTICS, All rights reserved.
C O N T R O L , C O L L A B O R AT I O N , A N D C O N S I S T E N C Y
Time to synchronize emphasizes how quickly a brand producer can marshal multichannel resources for maximum effect at the point of purchase. The synchronization of "land, sea, and air" assets of a marketing campaign means that the single voice of a brand spans the entire spectrum of the media and channels used, creating an echo effect, where the brand voice reverberates throughout the market. In practical terms, this means that brand managers collaborate with their channel partners in developing a point-of-sale experience that facilitates the buying process of customers. Time to version emphasizes the technical and logistical capacity to customize marketing programs and brand messages for particular seasonal opportunities or distribution channel partners, localize products and brands to a culture or society, or personalize offerings and brands to individuals, customer groups, or lifestyle profiles.
help increase
MESSAGING VELOCITY
In today's hypercompetitive markets, message velocity, or how quickly one can communicate with customers and buyers, stands out as one of the few strategic variables in market share growth. The figure below depicts how a marketing content repository accelerates time to market, time to synchronize, and time to version brand resources, selling messages, and marketing content. With a centralized digital repository of marketing content, the product-launch team has immediate access to all of the marketing materials, either as components or as final-form expressions that are ready for print production or broadcast.
INCREASED SALES
The figure also depicts how faster cycle times can increase sales in five ways. Pipeline acceleration means moving next quarter's sales into the current one. Not only does this acceleration increase sales this quarter, it frees up selling resources to define new customers for the current quarter and next one. Speedier product launches and instant access to all of the brand resources and marketing contacts enable a sales force and channel partners. Speed and access represent key capabilities enabled by a marketing content repository. Opportunistic sales result from exploiting opportunities that one would have otherwise missed due to the nonavailability of selling resources or customer requirements
for timely response beyond a firm's ability to respond. Here, instant access to marketing content and automated versioning of brand resources enable a sales force to quickly focus upon and exploit shortlived sales opportunities. Finding new customers results from freeing up scarce selling resources and using greater agility in responding to customer requirements. Customized proposals, presentations, and self-service eBusiness Web sites now enabled by a marketing content repositoryall play a role in finding new customers. New market sales result from speedy product launches and the capacity to fine-tune a campaign in real timea capability enabled by a marketing content repository. These capabilities include versioning more effective selling images and promotional messages, customizing and personalizing proposals and presentations, and localizing brand resources and marketing content to a particular culture or language. Competitive barriers result from blocking "done deals" of competitors and making powerful or persuasive offers to prospective buyers at the last moment. This offer may take the form of a customized presentation or proposal, latebreaking news or just-published reports, or a dynamic ROI calculator or spreadsheetmarketing content that puts done deals on hold until the buyer can reassess the situation. In markets where new technology, clinical trial results, or latebreaking news figures prominently in the buying decision, a marketing content repository can help erect and maintain competitive barriers.
A C C E L E R AT I O N O F M A R K E T I N G C O N T E N T I N C R E A S E S S A L E S
Digital
Drawings Emails Graphics PDFs
Time to market
Major launch New product New campaign New corporate identity New business model
Pipeline acceleration Opportunistic sales Finding new customers New market sales Competitive barriers
Campaign analytics
Print
Brochures Fact sheets Flyers
Time to synchronize
Multichannel resources at points of purchase
Manuals
Audio Visual
Animations
Time to version
Customize Localize Personalize
Media services
INCREASED SALES
GISTICS
A marketing services platform enables the progressive deployment of technical systems that automate activities and tasks performed by one or more members of a marketing department. The figure below depicts four key elements of a marketing services platform. Marketing resource producers commission, design, produce, or license digital, print, or audio-visual materials. A marketing services platform provides all of these actors with Web browser-access to portions of the system and related services. Digital asset repositories provide centralized management of reusable materialdigital assets. The repository keeps track of who uses what as well as who changed or modified a particular photo, image, document, or other digital file. The repository also enforces certain business rulessuch as rights and permissionscontrolling who can access, modify, or use an individual digital asset. Enterprise content management (ECM) defines an IT system for managing documents, Web content, business records and reports, discussion threads, and high-speed access to corporate and public networks. ECM also enforces business rules such as security-level access, workflow, and storage.
B U S I N E S S R E S U LT S F R O M A M A R K E T I N G S E R V I C E S P L AT F O R M
A marketing services platform simultaneously accomplishes two business ends: faster cycle time for the delivery of marketing services and lower costs realized through labor reductions and fewer external expenses. The remainder of this white paper explains how a marketing services platform produces these two business ends, emphasizing a marketing content repository, a graphic server, and workflow automation of launch-oriented marketing activities.
FOUR SYSTEM COMPONENTS PRODUCE FASTER CYCLE TIME AND COST REDUCTIONS FOR A MAJOR LAUNCH
BRAND & MARKETING MANAGEMENT Corporate creative services Advertising & marketing agencies Marcom Publishing & documentation Licensing agencies Trade partners
MarkServPlatElemenlts 1.1 2003 GISTICS, All rights reserved.
Asset inventory
skjfsjfsj sfjskfsj cvpftrlk
+
skjfsjfsj sfjskfsj cvpftrlk
Cost reduction
Labor Materials External cost
MEDIA SERVERS
Distributed Real-time Business rules (automated tasks)
GISTICS
W O R K F L O W A U T O M AT I O N O F M A R K E T I N G A C T I V I T I E S
Media servers transform digital assets into a variety of final-form materials used by marketing and sales. In this white paper, we have emphasized the utility and payback of graphic servers that automate the production and delivery of selling images, brand-identity elements, visual promotions, and other marketing support materials. A marketing services platform can quickly integrate new media servers at any time, making a server available throughout a corporate network and nearest the point of high-volume end-user need. Media servers embed business rules for automating commonly performed activities and tasks.
D Y N A M I C I M A G I N G O F D I G I TA L A S S E T S
The figure below depicts one possible scenario for generating dozens or even thousands of purpose-built promotions from one digital asset. In particular, the scenario emphasizes the localization of a promotion for three separate formats: a high-resolution graphic for a printed sell-sheet, a medium-resolution graphic for a presentation slide, and a low-resolution image suitable for a Web page. The digital asset shown below consists of a potentially huge, multilayer digital file created with de facto industrystandard tools such as Adobe's Illustrator, Photoshop, or InDesign. Most of the individual layers in a digital file contain text for a particular market, distribution partner, season, or customer. In the example below, a single digital asset can produce final-form images in the Spanish and English languages. The layers may contain identical, modified, or altogether different images of the car. Each version could contain alternate colors, special car accessories, promotional messages, a spokesperson of a particular ethnicity or lifestyle, or different background textures and colors. The digital repository of an enterprise content management system catalogs each layer of the asset, potentially thousands of elements that are all embedded in or linked to the digital asset. This linkage enables a firm to produce a variety of outputs (PDFs, Web pages, or RGB images suitable for a slide presentation) in three ways: A graphic designer can search an asset repository for the appropriate components and have the system dynamically assemble the desired page or graphic. This capability would potentially free 100 to 200 hours of the graphic designer's time per yeartime that the designer might otherwise have to spend to create each item.
A field sales executive could log onto a marketing content repository using relatively low-speed Internet access. He or she would search by keyword or by an example selected from a visual vocabulary that includes groups of similar-looking items. Having identified those elements necessary to build a flyer or slide, the field sales executive clicks on a "Build it now" button on the Web page. This scenario represents a dramatic reduction in time to market for promotional messages and channelsupport materials. A prospective customer at a commerce Web site could identify a sales coupon, promotional poster, or photo of interest. After the customer enters a few descriptive data items, the media server could retrieve and publish the desired item, inserting into the graphic the latest pricing information or information provided by the prospective customer (name, model number). This type of self-service approach provides the same sort of cost savings as mentioned above without a designer or sales person having to render the service. Each of these three scenarios represents an opportunity for dramatic cost reductions and time-to-market acceleration. GISTICS analysis of localizing activity for a promotion such as that illustrated reveals that it takes approximately 93 minutes using manual means and 13 minutes using a media server of a marketing content repository. Automating this single activity can produce $31,200 in annual labor savings and a reduction of three days in time-to-market for a major product launch.
SERIES//MANAGEMENT ADVISORY
GISTICS
maximize
Seasoned IT executives know that the highest return on investment comes from automating simple everyday activities and tasks. If pursued with diligence and vision, automation from the bottom up can yield stunning strategic results. The term point solution refers to prebuilt technology building blocks that an IT professional can configure and deploy quickly. Media servers and asset repositories constitute this type of solution. The figure below depicts five automation cells that can, when deployed, produce extraordinary business results: annual labor savings of 275 days, a potential labor expense
Workflow automation of marketing services produces the highest returns for those firms with a fast-cycle business modelfirms that would experience immediate loss of revenues should they elect not to advertise for a quarter or two. In this paper, we have examined the beneficial effects of a marketing content repository, emphasizing its contributions to the demand-creation phase of a value creation process and, in particular, a major launch of a new product or marketing campaign.
A U T O M AT I O N O F A F E W L A U N C H A C T I V I T I E S C A N C U T M O R E T H A N 1 6 D AY S F R O M A MAJOR LAUNCH
Impact of Marketing on Short-term Sales
Slow cycle
Locked-in OEM technology
BUSINESS MODELS
Industrial products Pharmaceuticals Financial services
Fast cycle
Consumer goods & entertainment
Demand creation
Sales conversion
Strategic development
BUSINESS PROCESS
Product offering
Step 2 Step 3 Step 4 Customer trial
Actor-to-Actor
ACTIVITY WORKFLOWS
Workflow automation of just five or six activities associated with a major launch can add 16 or more days to a product's life cyclea potential value worth millions, if not tens of millions, of dollars in incremental revenue.
Product development Production
Marketing
Promotion
Sales
Customer service
Sample
Assemble
Facilitate
Fulfill
Launch-oriented
AUTOMATION CELLS
Get images from ad agency Fomat graphic to specification Optimize images for Web sites Distribute media kits Localize promotion
TOTAL
275.25
Days
16.5
$15,180
78
$40,560
103.5
$53,820
60
$31,200
17.0
$115,725
$256,485
16.5
Days
EXECUTIVE WHITE PAPER
1.5
10
GISTICS
TA C T I C A L P O I N T S O L U T I O N S
reduction of $256,235 and a reduction of 16.5 days in time to market for a major product launch.
How can a marketing department eliminate external agency costs, reduce time to market for product images, and exert greater
control of the brand identity?
A M A R K E T I N G C O N T E N T R E P O S I T O RY C A N S AV E $ 1 4 , 8 0 0 I N A G E N C Y C H A R G E S P E R YEAR
Actor-to-Actor
WORKFLOWS
Product development
Sample
Find Retrieve
Render
Package Deliver
Production
Marketing
Sales
Customer service
Fulfill MANUAL
Assemble
Promote
Facilitate
9 Times per
X
AUTOMATION SAVINGS
month @
3 Days
=
Time-to-market reduction
Launch-oriented
AUTOMATION CELLS
Get images from ad agency Format graphics to specification Optimize images for Web sites Localize promotion Distribute media kits
AUTOMATED
$115
Per hour
$15,180
Annual savings
10
100
ACTIVITY
TASKS (minutes)
Locate source file Retrieve file Render file Package for delivery Deliver file Minute total
MANUAL
AUTOMATED
NOTES
Performed by internal personnel
15 10 35 20 20 100
1.5 1 1 5 12 20.5
Multimodal search function of DAM reduces time to identify the right asset Thumbnail previews and textual descriptions (metadata) ensure correct file downloads Dynamic imaging renders graphic just in time to specified requirements Included in check-out process of DAM; assumes preparation for CD-ROM production Shipment of CD-ROM; system would also support downloads through a Web browser Centralized DAM repository for agency's client eliminates this activity altogether
COSTS
Activity labor cost $192 $39
$115 per houraveraged agency billing rate for graphics specialists
MONTHLY TOTALS
Cell repetitions per month Fulfillment hours Monthly costs 9 14 $1,728 9 3 $351
Number of times a worker performs this activity Number of hours per month expended performing this activity
SAVINGS
Hours per month Monthly Annually 11 Hard-dollar savings realized
$1,265 $15,180
BusAutoCellsA.1.1 2003 GISTICS, All rights reserved.
SERIES//MANAGEMENT ADVISORY
GISTICS
11
How can a creative services group slash expenses and cycle time in preparing and distributing graphics to field sales, internal
users, and external partners?
A M E D I A S E RV E R A N D R E P O S I T O RY C A N P R O D U C E A N N U A L S AV I N G S O F $ 4 0 , 5 6 0
Actor-to-Actor
WORKFLOWS
Product development
Sample
Clarify
Find
Retrieve
Production
Marketing
Sales
Customer service
Fulfill MANUAL
Assemble
Promote
Facilitate
80 Times per
X
AUTOMATION SAVINGS
month @
1.5 Days
=
Time-to-market reduction
Launch-oriented
AUTOMATION CELLS
Get images from ad agency Format graphics to specification Optimize images for Web sites Distribute media kits Localize promotion
AUTOMATED
$65
Per hour
$40,560
Annual savings
10
50
ACTIVITY
TASKS (minutes)
Clarify requirements Locate source file Retrieve file Render file Package for delivery Deliver file Minute total
MANUAL
AUTOMATED
NOTES
Performed by internal personnel
5 10 5 10 5 10
2 3 1 1 0 1
Salesperson uses point-and-click online order form Multimodal search function of DAM reduces time to identify the right asset Thumbnail previews and textual descriptions (metadata) ensure correct file downloads Dynamic imaging renders graphic just in time to specified requirements None required; user interaction renders file ready for electronic transfer Direct download through Web browser via http or ftp Secure DAM enables a salesperson to access repository, eliminating activity all together
45
COSTS
Activity labor cost $48.75 $8.67
$65 per hourfully burdened cost
MONTHLY TOTALS
Cell repetitions per month Fulfillment hours Monthly costs 80 60 $3,900 80 8 $694 Hard-dollar savings realized 52
Number of times a worker performs this activity Number of hours per month expended performing this activity
SAVINGS
Hours per month Monthly savings Annual savings
$3,380 $40,560
BusAutoCellsB.1.1 2003 GISTICS, All rights reserved.
12
GISTICS
How can a Web content specialist recoup 828 hours per year previously spent Webifying graphics?
A M E D I A S E RV E R A N D R E P O S I T O RY C A N P R O D U C E A N N U A L S AV I N G S O F $ 5 3 , 9 5 0 Actor-to-Actor
WORKFLOWS
Product development
Sample
Find
Retrieve
Render
Post Submit
Production
Marketing
Sales
Customer service
Fulfill MANUAL
Assemble
Promote
Facilitate
X
AUTOMATION SAVINGS
100 $65
Per hour
4 Days
=
Time-to-market reduction
Launch-oriented
AUTOMATION CELLS
Get images from ad agency Format graphics to specification Optimize images for Web sites Localize promotion Distribute media kits
AUTOMATED
$53,820
Annual savings
0
Minutes per activity-task
50
ACTIVITY
TASKS (minutes)
Locate source file Retrieve file Render file Post "Webified" graphic Submit file Minute total
MANUAL
AUTOMATED
NOTES
Performed by internal personnel
15 10 15 5 5 50
1.5 1 1 2 3 8.5
Multimodal search function of DAM reduces time to identify the right asset Thumbnail previews and textual descriptions (metadata) ensure correct file downloads Dynamic imaging renders graphic just in time to specified requirements File written directly to production server from DAM; no need to transfer to user workstation DAM links asset to Web content management; simplifies management Secure DAM enables a content specialist to access repository, eliminating activity all together
COSTS
Activity labor cost $54.17 $9.21
$65 per hourFully burdened cost
MONTHLY TOTALS
Cell repetitions per month Fulfillment hours Monthly costs 100 83 $5,417 100 14 $921 Hard-dollar savings realized 69
Number of times a worker performs this activity Number of hours per month expended performing this activity
SAVINGS
Hours per month Monthly Annually
$4,485 $53,820
SERIES//MANAGEMENT ADVISORY
GISTICS
13
How can a regional marcom manager localize a promotion with native language text and accurate currency conversions?
A M E D I A S E RV E R A N D R E P O S I T O RY C A N C U T $ 3 1 , 2 0 0 I N L O C A L I Z AT I O N C O S T S P E R MARKET EACH YEAR Actor-to-Actor Retrieve Get text Send Submit Input
WORKFLOWS
Marketing
Locate
Inspect
Get data
Render
Post
Product development
Sample
Production
Sales
Customer service
Fulfill MANUAL
Assemble
Promote
Facilitate
30 Times per
X
AUTOMATION SAVINGS
month @
3 Days
=
Time-to-market reduction
Launch-oriented
AUTOMATION CELLS
Get images from ad agency Format graphics to specification Optimize images for Web sites Localize promotion Distribute media kits
AUTOMATED
$65
Per hour
$31,200
Annual savings
0
Minutes per activity-task
100
ACTIVITY
TASKS (minutes)
Locate source file Retrieve file Open & inspect contents Acquire French text Acquire USD pricing Input new text & data Render file Send file Post file Submit file Minute total
MANUAL
AUTOMATED
NOTES
Performed by internal personnel
Multimodal search function of DAM reduces time to identify the right asset Thumbnail previews and textual descriptions (metadata) ensure correct file downloads Not needed; digital master already preapproved User selects "French version"; linked to database and dynamically inserted into graphics file User selects "Update pricing"; linked to database and dynamically inserted into graphics file No manual input needed Dynamic imaging renders graphic just in time to specified requirement Update notification email sent to regional office, including URL address of new graphic DAM system writes file to regional production Web server Regional Webmaster uses email with link to supply next update
15 3 10 5 5 15 10 10 5 5
83 $89.92
12.5 $13.54
COSTS
Activity labor cost
$65 per hourfully burdened cost
MONTHLY TOTALS
Cell repetitions per month Fulfillment hours Monthly costs 30 47 $2,698 30 7 $406 Hard-dollar savings realized 40
Number of times a worker performs this activity Number of hours per month expended performing this activity
SAVINGS
Hours per month Monthly Annually
$2,600 $31,200
BusAutoCellsD.1.0 2003 GISTICS, All rights reserved.
14
GISTICS
How can enterprises speed the distribution of media kits worldwide, using the Web and automation to cut costs and time to
market?
WORKFLOWS
Product development
Sample
Production
Marketing
Sales
Customer service
Fulfill MANUAL
Assemble
Promote
Facilitate
X
AUTOMATION SAVINGS
Launch-oriented
$65
Per hour and
5 Days
Time-to-market reduction
AUTOMATION CELLS
Get images from ad agency Format graphics to specification Optimize images for Web sites Localize promotion Distribute media kits
$19,163
in materials & freight per announcement
$115,725
Annual savings
AUTOMATED
50
150
ACTIVITY
TASKS (minutes)
Collect materials Build recipients list Produce labels Produce shipping docs Deliver to lettershop Minute total
MANUAL
AUTOMATED
NOTES
Performed by internal personnel
Collect, organize, label, and describe files for delivery to press Collate names, titles, and addresses; one-time setup with DAM messaging service Not required; secured DAM provides user and password to access the "online CD" Not required; secured DAM provides user and password to access the "online CD" Not required; secured DAM provides user and password to access the "online CD"
60 30 40 10 10
30 5 0 0 0
150
35
COSTS
Activity labor cost CD duplication List management Packaging Postage Handling Per-item total Per announcement $162.50 $0.65 $0.06 $0.42 $1.42 $1.25 $3.80 $19,163
5,000 item distribution
$37.92 0 0 0 0 0
$65 per hourFully burdened cost Physical manufacturing from master CD-ROM Access charge by list maintenance firm Padded envelope Standard first-class USPS rate Out-tasked to lettershop fulfillment firm
ANNUAL TOTALS
Cell repetitions per year Fulfillment hours Labor cost Materials & shipping costs Total annual cost 6 15 $975 $114,978 $115,953 6 3.5 $228 0 $228
SAVINGS
Hours per year Annually
SERIES//MANAGEMENT ADVISORY
11.5
$115,725
GISTICS
15
According to the prestigious Harvard Business School study of industrial selling practices, a sales executive who makes one additional call per week to a baseline number of calls, yields a substantial increase in incremental sales. In one documented case, one additional weekly sales call produced $3.2 million in new sales. The figure below depicts a fully developed reference and presentation library. The retrieval function of a marketing content repository should include the ability to retrieve
DEPARTMENTAL SERVER
Collateral
Annual reports Brochures Datasheets White papers
Media Assets
Animations Audio Charts Illustrations Photos Video clips
MANUAL
AUTOMATED
1.5
Hours
vs.
Times
0.5
Hours
Application Templates
Software
Database Media assembly & editing Office
500
Sales people @ $150 per hour
750
Days of labor per year or
$900,000
in annual labor savings
+
1 Day
Time-to-market reduction per major launch
Sales.Exec.Pres.lib.1.0 2003 GISTICS, All rights reserved.
ACTIVITY
Locate base presentation Locate and place product/ feature images and diagrams Acquire and place prospect and partner logos
MANUAL
AUTOMATED
NOTES
Multimodal search function of DAM reduces time to identify the right asset Thumbnail previews and textual descriptions (metadata) ensure correct file downloads Partner and prospect logos already prepared and resident in DAM
15 50 10
5 15 0
TOTAL MINUTES
90
30
Sales.Exec.Table.1.1 2003 GISTICS, All rights reserved.
16
GISTICS
H A R VA R D B U S I N E S S S C H O O L S T U D Y
individual slides within a presentation deck. This singleslide search function can double the productivity of a repository lacking such a feature.
pay
B O T T O M - U P A U T O M AT I O N O F P E S K Y A C T I V I T I E S
Focused, tactical application of workflow automation technology can produce significant cost reductions and competitive advantage. In summary: Automation of six launch-oriented activities can reduce 3,875 hours in potential labor. These hours represent $1,156,485 in potential labor savings. Field sales represent the area of greatest labor savings; 1,800 hours. Reinvestment of one hour of field sales time can yield huge gains in incremental sales. Harvard Business School estimates that if an industrial salesperson can make one more sales call per week, a sales pipeline is accelerated. In one case study, this acceleration resulted in $3 million in new sales per salesperson.
The greatest returns result from the potential upside from faster time to market for a major launch; however, a realistic estimate must take into account too many variables to render a simple answer to the question, How many more sales?
O T H E R A U T O M AT I O N O P P O R T U N I T I E S
GISTICS analysis of the various applications of digital asset management, including marketing content repositories, suggests several dozen opportunities for significant payback. Product development applications include collaborative design and structured customer requirements processes. Production applications support the designers of a creative services group, corporate and technical publishers and producers of corporate video and training materials. Marketing applications (not already mentioned in this paper) include customer- or configuration-specific service reports and database-published marketing collateral that is personalized to a customer. Sales applications include monthly account summaries with graphics illustrating year-to-date investments and returns, and automated proposal writing.
W O R K F L O W A U T O M AT I O N C A N E A S I LY E X T E N D B E Y O N D T H E S E S I X L A U N C H - O R I E N T E D ACTIVITIES
Get images from ad agency Format graphic to specification Optimize graphic for Web site Localize promotion Distribute media kits Find presentation slides
Actor-to-Actor
WORKFLOWS
Product development
Sample
Production
Marketing
Sales
Customer service
Fulfill
1025
Days of labor saved per year or
Assemble
Promote
Facilitate
$1,156,485
4,413 hours manually
Launch-oriented
=
AUTOMATION SAVINGS
AUTOMATION CELLS
Get images from ad agency Format graphics to specification Optimize images for Web sites Localize promotion Distribute media kits
538 hours automated
17.5 Days
Time-to-market reduction
1000
2000
3000
4000
ACTIVITY
Get images from ad agency Format graphic to specification Optimize graphic for Web sites Localize promotion Distribute media kits SUBTOTAL Find presentation slides
NOTES
In-house system eliminates this expense category In-house system eliminates this expense category
Salesperson could make one more major account call per week, 42 per year
TOTALS
SERIES//MANAGEMENT ADVISORY
4,413
538
$1,156,485
17.5
WorkAutoSix.1.0 2003 GISTICS, All rights reserved.
GISTICS
17
How can a CFO measure the production of customer value, using automation and activity analysis of the marketing process as the
basis of fact?
This white paper outlined a general strategy for reusing digital assets for various marketing purposes. We emphasized digital asset reuse for the major launch of a new product or campaign, harnessing a marketing content repository or a more comprehensive strategy of Enterprise content management. We showed how media servers accelerate the transformation of reusable digital assets into marketing content, while lowering costs and speeding time to market of that content. We introduced a new term, media analytics, to describe a major implication of centralized management of digital assets: the ability to track and correlate asset-activity data to business results. Media analytics enables CFOs or CMOs to identify activity-based patterns among their marketing resource producers and users, understand which digital assets contribute most to highest sales or cost savings, and codify a set of best practices for asset use throughout their organizations.
T H E B O T T O M - U P A U T O M AT I O N O F A C T I V I T I E S A N D TA S K S S P E E D S R E T U R N O N I N V E S T M E N T F O R T H E A U T O M AT I O N O F M A R K E T I N G S E RV I C E S
VALUE CREATION
Offer-market development Demand creation Sales conversion Satisfaction fulfillment Strategic development
ACTIVITY WORKFLOWS
Product development Production Marketing Sales Customer service
AUTOMATION CELLS
Regular production of a unit-of-work by one actor (worker) for another actor (worker, customer, trade partner)
ACTIVITY-TASKS
Any repeatable action need to produce a unit of work
18
GISTICS
M E D I A A N A LY T I C S
While still a nascent discipline, a handful of firms uncovered by GISTICS research have proven the value of media analytics and its penetrating insights into organizational behavior and performance of intangible assets. The figure below depicts a general activity-based accounting strategy for digital asset management, using asset-activity data as the basis of fact for measuring cycle time for value creation and revenue production. This model also suggests that the CFO or CMO can find new automation opportunities by examining activity-tasks of workflows known historically for spotty, inconsistent quality outputs, problematic timelines, or high labor content (especially important if it does not contribute significant value to the customer). Unlike business process reengineering of the 90s, this model suggests automating small chunks of work with an overall business process automation framework. From these humble, bottom-up automation solutions, a firm can optimize its own best way of mastering the product launch and the delivery of multichannel resources.
GISTICS
ABOUT GISTICS
SERIES//MANAGEMENT ADVISORY
GISTICS
19
A D D I T I O N A L W H I T E PA P E R S
GISTICS facilitates execution of breakthrough strategies for customer-facing technology: helping organizations and selfmanaging individuals implementation of faster, cheaper, and better ways to find and serve their customers. To this end, GISTICS offers white papers at no cost to qualified executives who agree to provide information about themselves and their organization's current and future plans to deploy a new technology. GISTICS may use this information to develop new reports or facilitate appropriate introductions to potential solution partners.
C U R R E N T P U B L I C AT I O N S
BUSINESS CASE FOR DOCUMENT SERVERS IN THE ENTERPRISE
W O U L D A C U S T O M W H I T E PA P E R M A K E S E N S E F O R Y O U R FIRM?
Publishing strategies for Financial and Business Services, Manufacturers, and Pharmaceutical and Life Sciences
BUSINESS CASE FOR DYNAMIC IMAGING IN THE ENTERPRISE
Strategies and tactics for accelerating the time to market for promotional images, online advertising, and visual knowledge assets
BUSINESS CASE FOR A GLOBAL MARKETING SERVICES PLATFORM IN THE ENTERPRISE
Strategies, best practices, and business metrics for managing global multichannel marketing programs for profit maximization
BUSINESS CASE FOR MARKETING CONTENT REPOSITORIES IN THE ENTERPRISE
Strategies and business metrics for managing the product launch, supporting field sales, and enabling self-service access to multichannel marketing materials
BUSINESS CASE FOR A MEDIA SERVICES PLATFORM IN THE ENTERPRISE
Strategies and business metrics for reducing the time to market and costs of multimedia content using a centralized repository of reusable media components and activity-task automation
For more information about our white papers or a subscription programs visit www.gistics.com and navigate to the section entitled
SUBSCRIPTIONS.
COMPREHENSIVE INDUSTRY ASSESSMENT DIGITAL ASSET MANAGEMENT MARKET REPORT 2002
Comprehensive assessment of markets, demand drivers, customer requirements, trends, solutions, and vendors. This report contains trends and forecasts for 1991 to 2005:
A GISTICS executive white paper simplifies a complex technical solution and makes a business case crisp and persuasive to the CEO and C-level executivesthe individuals who can release funds for deployment of the technical solutions. Technology vendors use GISTICS white papers to facilitate the buying process of customers, accelerating orders already in the pipeline and finding new business. Business development officers use GISTICS white papers to build support for a joint development proposal, securing funds and aligning resources. CIOs and IT executives use GISTICS white papers to explain a new system to prospective users, enroll prospective users to contribute to a product requirements process, and publish product design requirements all critical contributions to a more successful system design. Project executives use GISTICS white papers to document successful projects and investment returns, building their personal brands as accomplished professionals. Educational institutions use GISTICS white papers to explain curricula design and practices to students, parents, and staff, increasing enrollments and support for tuitions. End-use firms use GISTICS white papers to document, systematize, and propagate their best practices throughout workgroups, divisions, and supply chains. Investment firms use GISTICS white papers to find prospective merger or acquisition partners without divulging the particular company in play, getting the best price within a narrow window of opportunity. For more information about how you might use GISTICS executive white papers to increase productivity, knowledge sharing, or marketing effectiveness, please contact Michael Jay Moon, President, GISTICS Incorporated. Call 510-5946974 or visit www.gistics.com.
GISTICS Incorporated 6601 Shellmound St. Emeryville, CA 94608 www.gistics.com 510 594 6974 tel 510 601 0563 fax
Population and expenditure data for worldwide, 4 major regions, and 57 select countries 8 industry groups and 80 industries
20
GISTICS
Founded in 1987, GISTICS Incorporated researches return on investment for the adoption of new technologies and publishes its findings in comprehensive market reports and single-topic executive white papers. Executive white papers enable senior executives at enduse firms to recognize an attainable opportunity and move quickly to exploit it. These white papers present highly visual explanations of complex technologies and explain how to profit from them by following best-practice deployment prescriptives.
12 asset producer and user types, 5 levels of workforce scale, and 8 work activity groups Knowledge-based and solution-based (IT) expenditures Hardware, software, and service expenditures for digital asset management Directory listings of the following: 616 DAM solution providers 1246 knowledge asset management solution ..providers Top 500 US eCommerce firms (online sales ..from 2001) Top 500 US sales forces Top 2000 US brands ....(426 pages, published Spring 2002, $5,995 US)
GISTICS Incorporated 6601 Shellmound St. Emeryville, CA 94608 www.gistics.com 510 594 6974 tel 510 601 0563 fax