Proactive Enterprise & Brand Image Risk Management
How an Organization can Manage the Risks posed by Viral Media to its Image and Brand
Bad News Travels Fast and damage is done
before one could react
Negative Opines Caught Off-guard, Denial Delayed Response Irreversible Damage to Public Perception
A leading Personal Care Brand
• A leading NGO turned tables on it by parodying its internet campaign to highlight palm trees destruction in Africa.
One of the World’s Largest Retailers
A Sportswear Co.
• Learnt it hard way when hate campaigns against it threatened to stir up a social boycott.
• Suddenly found itself in dock over unsustainable practices of its suppliers.
Viral Media is the Arena where various
parties interact, exchange and exert influence
Employees’ morale drops after reading negative opinions about their company in public sphere. Prospective employees research on the companies before applying. A supplier’s news is quickly associated with the buyer co. Regulators opine on the industry issues & legal recourse
A consumer checks internet for product reviews. An existing customer posts comments on product.
NGOs/Activists post comments, videos, run campaigns to direct public attention
Competitors put out misleading information
Proactive Approach is Key to manage
the risks to enterprise and brand image
Make changes to way company does its business
Steering committee analyzes trends, patterns, hot spots and formulates action plan.
Mashing up various information sources throws up underlying patterns, hot spots, trends and provides warning in advance...
Influence public opinion 3
Process the data using advanced analytics to derive information & inference
Search public domain and extract content related to the company, product, processes & partners.
Extracting Business Intelligence
is made possible by advances in Information Technology (IT)
• Search in Text & Images • Advanced technologies search in audio and video • Coverage to all media sources
• Bayesian Inference Engine provides artificial intelligence capabilities
• Cloud computing provides ondemand access to high computing power • Avoids CapEx in hardware & software infrastructure
• Mashups combine information & aid human intuition
A Framework to Derive Insights
from gathered business intelligence to formulate action plan
Organized: NGOs, Regulators, Competitor, Activists Unorganized: Customer, Employee, General Public …....
Toxic Waste Supplier Sweat Shop Employee Discontent Customer service complaint ……..
Compensation Sense of contribution Acknowledgment Publicity Retaliation ………
Scientific Evidence Public Sentiment Polling Data Expert/Reputed opinion Product & process redesign ………
Blog, Social Communities Webcast Newspapers Interviews Conference …....
Reputation Networks, contacts, allies Critical information Access to decision makers ……..
(ia)3 Framework Source: Dr. David Bach, IE Business School, Madrid
A Sustainable Action Plan is all about
doing Good & spreading good Truths
Switch to sustainable suppliers Change process to eliminate toxic chemicals
Soft Measures Examples:
Tweak the brand messaging Redesign the marketing campaign
Redesign product to facilitate recycling
Improve Operations to reduce carbon footprint “ Action Speaks for Itself”
Formulate a PR exercise on CSR
Respond to online public complaints. “Start talking to your customers/ stakeholders before someone else starts talking to them.”
Pre-empt Risks to Enterprise Image & Brand
Building a Business Case is important
to get management buy-in for the initiative
How to measure chance/intangible benefits like potential risks, losses avoided ?
Real life cases of goodwill asset impairment, litigation costs, insurance costs, stock erosion and revenue losses
Difference between Market Value (stock market) and Book Value (on balance sheet)
Intangible assets like Goodwill, Brand and others are quantified on balance sheet.
Various models are available to measure enterprise image and reputation.
Beyond Risk Management it enhances
the ability to sense the shifts in the external environment & act proactively
Viral Media holds a wealth of information on how business environment Is changing
•Changes in consumer behavior, preferences •New customer segments etc.. •……. •Eg: DIY (Do It Yourself) Trends
•Logistics Trends •Distributions Changes •Supply Trends •…… •Eg: Collaborative outsourcing
•Competitors’ actions •New Entrants •New substitutes •…….. •Eg: Kindle and virtual book store
Value Chain Shifts
Non- Market Environment
•Changing political alignments •Popular sentiments •……. •Eg: Labor or Conservative •New Processing techniques •Disruptive technologies •…… •Eg: Cloud computing •Impending regulations •…….. •Eg: Shift towards process quality assurance •New emerging markets •Growth rates and economic indicators •…… •Eg: Rise of Africa •Demographic trends •Social activism •Society behavior •….. •Eg: Concern for environment
Prepare for Unpredictable and
volatile business future effectively
• Sense changes in consumer preferences • Recognize the policy shits and impending regulations and participate in their formulation • Learn about the emerging best practices in the industry • Learn what drives top talent in career selection • Identify emerging business destinations • ……
• Avoid adverse public opinions and bad press by proactive actions • Keep tab on public perception of value chain partners and their actions • Recognize when brand is being assailed in public and protect brand equity • Reduce legal risks and litigation costs • Protect marketing campaigns from counter campaigns • ……
The price of inaction is steep and Cos cannot afford to ignore and gamble
Please refer the published paper ‘Proactive Enterprise & Brand Image Risk Management’ for more information.
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