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Index 3-D Printing, 160–161 Kindle, 77, 130–131; retailers most threatened by, 9 A Angry Birds Star Wars II video game, Accelerator programs, 161–162, 110 199–200 APIs, 176, 199; third-party Accenture report, 138–139 developers, 141–142 Accreted value, 111–117; failure to App Shop, 43–45, 65 grasp the importance of, 186–187 App Store, 87, 198 Acquisition, 164–165 Apple, 6–7, 69; accreted value, 113, Activation, 165 114; App Store, 87, 198; brand Activision, 104–106, 109, 130 purpose, 125; cannibalizing Adaptive planning and development, existing products, 187–188; digital 157–158 ecosystem, 74–75, 153; digital Adobe Premiere, 69–70 hub, 70–73; iCloud, 90; Adoption, 166 Interbrand 100 ranking, 11, 12; Advertising, 47–49, 58 iPhone, 130; iPod, 76–77, 86–87, Aggregation andCOPYRIGHTED distribution, 55 129; iTunes,MATERIAL 27, 125–126; limiting Algorithms, 135 product lines, 17–19; Ping, 172; Allrecipe.com, 25 Siri Eyes Free, 44, 45, 46; synergy Amazon, 8, 27; Amazon Prime, of the Apple ecosystem, 78; 78–79; brand purpose, 125; transformation of Apple business transformation, 91; Computer to Apple Inc., 79 collaborative filtering, 30; Application, 54 Interbrand 100 ranking, 12; Auto-mobility, 60 – 67 Index B CMOs, 138–139, 190–191 Ballmer, Steve, 130 Coca-Cola, 36–37; Interbrand 100 Bernbach, Bill, 48 ranking, 11, 12; Open Happiness, Bezos, Jeff, 131, 177, 183 132–133 Big data, 167–168 Collaborative filtering, 30 BMW, 9–10; ConnectedDrive, Columbia Records, 75 65–66, 67; Interbrand 100 Combining technology, 156–158 ranking, 12; iVentures, 66, 193; ConnectedDrive, 65–66 NFC-enabled key fob, 66–67 Consumer control, 59–60 Boston Consulting Group study, 193 Consumer products economy, 106 Brand purpose, 125–130; delivering Content creators, 53 innovation through technology, Context of interruption, 47–49, 50 133–137; filling the gaps in talent, Contexts: aggregation and 137–142; staking out a new distribution, 55; application, 54; territory, 130–133 conversation, 53–54; diversion, Branded software, 54 54–55; gamification, 56; Brin, Sergei, 151–152 information, 52; location, 54; Buffett, Warren, 77–78 participation, 53; transaction, Burnett, Leo, 48 52–53; visualization, 55–56. See Business models: developing new also multiple contexts business models, 123; Contextual revolution, 44, 46; ten “razor-razorblades” business contexts for the new digital age, model, 71; “reverse-razorblade” 50–60 business model, 71 Conversation, 53–54 Business transformation, 90–93, 184 Cook, Tim, 6, 187–188 BuzzFeed, 55 Corporate venture capital programs, 192–194 C Craigslist, 109 Campbell, Jay, 6 Cultural issues, 12 Cannibalizing existing products, Customer loyalty, 106 187–188 CXOs, 139 Car culture, 61 Carpooling.com, 63 Car-sharing, 62–64 D Case, Steve, 63 Daimler AG, 62, 63 CEOs, 122–123 Data: big data, 167–168; earned data, Chief executive officers. See CEOs 166–169; focusing on the right Chief experience officers. See CXOs data, 162–166; owned data, 168 Chief information officers. See CIOs Digital consumer services, 5 Chief marketing officers. See CMOs Digital disruption, 98, 106, 183 Christensen, Clayton, 17 Digital ecosystems: managing, CIOs, 138–139, 191 84–90; Nike/Nike+,1–5;opening Clarke, Philip, 107–108, 117–118 up the ecosystem, 196–200; Click and collect, 117 overview, 5–7 Index Digital marketing: McCormick and Functional Integration: companies Company, 25 that fail to use, 19–20; cultural Digital services: finding a home for issues, 12; long-term goal of, 33; within the company, 140–141 making room for, 190–196; Disney Infinity, 110–111 overview, 6–12 Diversion, 54–55 Functional value, 169–174 Doerr, John, 198 Functionally integrated digital Dynamic swapability, 111 services, 106 Funny or Die, 55 E Futurevision, 154 Earned data, 166–169 Earned media, 167 G E-commerce, 52–53 Gamification, 56 Economic moats, 77–78 General Motors: App Shop, 43–45, Ecosystem of value, 71; Nike, 85; 65; OnStar, 44, 45; and Relay Skylanders, 103 Rides, 64–65 Ecosystems. See digital ecosystems Gillette, 71 Epps, Sarah Rotman, 92 Google, 7–8, 27, 52, 57, 151–152; Execute cycle, 142, 146. See also brand purpose, 125; business synchronous design transformation, 91; Chrome, 152; Expectations, 189 Gmail, 152; Google Glass, 152, Experience economy, 106 159; Google Maps, 199; Google Experiment cycle, 142, 145–146. See Reader, 172; Google Ventures, 193; also synchronous design Interbrand 100 ranking, 11, 12; Explore cycle, 142, 144–145. See Nest Labs, 152, 193; spring also synchronous design cleanings, 172 Google Wallet, 54 F H Facebook, 53, 55, 56, 89 Heracleous, Loizos, 18–19 Feedback, 85–86 Hirshberg, Eric, 104, 111 Flaring, 142, 145 Horizontal expansion, 37–38 Flavor lifecycle, 24–25 Horizontal integration, 16–18, 35, FlavorPrint, 29–34, 56, 57, 119–121 37, 38, 201; and advertising, 50 Flickr, 53, 55 Focusing, 142, 145; on the right data, 162–166 I Ford: SYNC, 44, 45–46; and Zipcar, IBM, 192 62 Incumbency issues, 185 Ford, Bill, 60–61 Inelasticity, 78 Foursquare, 54, 56 Information, 52 Foust, Andrew, 34 Information-rich marketing: recipes, Free digital offerings, 27 25–26 Functional connection, 153 Integrated connections, 175–177 Index Integrated value, 153 Integration, 190–196; opening up Interactive marketing: vs. the ecosystem, 196–200 functionally integrated digital Leavitt, Theodore, 90–91 services, 27 Lerner, Josh, 193 Interbrand 100 ranking, 11–12 Levin, Mike, 78 Internal obstacles, 186–190 Location, 54 Internet of Things, 19–20 Lockheed, 191–192 Interruption, 50, 56–57; context of, L’Oreal Paris: My Signature Beauty, 47–49; vs. multiple contexts, 51 40–41, 56 iPhone, 130 Low prioritization, 189–190 iPod, 76–77, 86–87, 129 Loyalty app, 107 iTunes, 27, 72–73; developing iTunes for PC-compatible computers, M 125–126; Music Store, 73 Mancini, Jeff, 10–11 iVentures, 66, 193 “Marketing Myopia” (Leavitt), 90–91 J McCormick and Company, 23–26, Jannarone, John, 38 27–29; FlavorPrint, 29–34, Jobs, Steve, 69–70, 71, 86–87, 88, 90; 39–41, 56, 57, 119–121 developing iTunes for McKinsey Global Institute report, PC-compatible computers, 19–20 125–126; opening the iPhone Meadows, Donella, 84 platform to third-party software, Media sharing, 53 197–198 Merging transportation and wireless Johnson, Mark W., 186 technologies, 60–61. See also “Just Do It” theme, 3, 80 Ford; General Motors Metcalf, Robert, 101 K Metrics, 135 Kain, Eric, 111 Microsoft, 72; Interbrand 100 Key performance indicators (KPIs), ranking, 12; Kinect, 161–162; 163–165 Surface, 187 Kindle, 77 Mint, 55 Kinect, 161–162 Mission creep from existing Kleiner Perkins, 198 initiatives, 188–189 Klout, 56 Mollick, Ethan, 194 Moovel, 63–64 L Motorola, 192 Law of telecommunications Multicontextual media networks, 101 environments, 49–50 Leadership, 181–185; challenges in Multiple contexts, 49–50, 133–134 executing a Functional Integration Multisided industry platforms, 121 strategy, 185; lifting the burden of Music Genome Project, 30–31 internal obstacles, 186–190; My Signature Beauty, 40–41, 56 making room for Functional MyTaxi mobile app, 63 Index N Open Happiness, 132–133 Nest Labs, 152, 193 Outsourcing, 137 Netflix, 79; collaborative filtering, 30; Owned data, 168 popularity of, 32 New product introductions, 17 P NFC sensing, 110 Page, Larry, 151–152 Nike Monitor, 82 Pandora, 30–31, 45–46 Nike+ FuelBand, 4, 56, 92, 127–129, Parker, Mark, 194 176; limitations, 136 Participation, 53 Nike+ Human Race, 1–2 Path, 56 Nike+ iPhone app, 88 PepsiCo, 36–37 Nike+ iPod kit, 2–3, 82–83, 88, 183; Personalization, 40, 118 integrated functionality, 170–172 Philips, 20 Nike+ Running, 56 Pirating, 72–73 Nike+ SportBand, 4, 175 Pokémon Rumble U, 110 Nike+ SportWatch, 4 Porter, Michael, 18–19 NIKEiD, 88–89 Pratt, Dave, 117 Nike/Nike+, 57, 80–85; adding Prioritization, 189–190 integrated connections, 175–177; Procter & Gamble: Corporate brand purpose, 125; business Innovation Fund, 192 transformation, 91–93; Progressive Insurance, 113–117, community, 135, 171–172, 173, 119, 121–122, 183–184 177; developing a digital Prototype development, 158–161 ecosystem, 1–5; Digital Sport, Pudar, Nick, 45 194–196, 199–200; how Nike Purpose. See brand purpose added functional value to its ecosystem, 174;i.D.(Individually Q Designed), 88–89; Interbrand 100 Quantified Self movement, 173 ranking, 12; Quantified Self movement, 173; Tag,172 R NikeRunning.com, 81 “Razor-razorblades” business model, Niketown.com, 80 71 Nintendo Wii U gamepad, 110 Recipes, 25–26. See also FlavorPrint Nokia, 198–199; N-series phones, Recommendation engines, 26 179–180; Symbian operating Reimagining, 98–102; brands as system, 180, 196–197; viNe, accepted value, 109–117; the 180–181, 182, 189–190 future of the enterprise, 117–123; Noone, Veronica, 2 products as services, 102–108; value creation, 155 O Reimann, Joerg, 66 Ogilvy, David, 48 Relay Rides, 64–65 Olander, Stefan, 4–5, 83, 92, 128, “Reverse-razorblade” business 194 model, 71 OnStar, 44, 45 R/GA, 10–11 Index S 158–161; spotting trends in, Sandbox, 158 153–156 Seizing the White Space (Johnson), Techstars, 161–162 186 Television advertising, 47 Service pieces, 134 Territories, 130–133 Siri Eyes Free, 44, 45, 46 Tesco, 107–108, 117–118 Skunkworks model, 191–192 Thinking in Systems (Meadows), 84 Skylanders, 102–106, 109, 111 Toy Box, 110–111 Smartphone users, 57 Transaction, 52 – 53 Smartphones, 50–51, 182–183 Transformative technologies, 35 Snapple, 38 Trends in technology, 153–156 Snapshot, 113–117, 119, 121–122, Twitter, 53, 55, 56, 89 183–184 Social media: conversation, 53–54 U Software, 54 Underperforming features,