B2B Innovation - New Research on Creating Standard Operating Innovation

Standard Operating Innovation:What You Don’t Want To Hear

B2B Marketing Research Series, Volume II

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STEFAN TORNQUIST

VP, Research

Econsultancy

ROB SHERRELL

Vice President

Sparks Grove

Meet YourPresenters

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Housekeeping

30+ minutes with Q&A

Please submit live questions via WebEx

Be on the lookout for follow up docs

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Today’sAgenda

Connecting the 2013 and 2014 Studies

Innovation and the New B2B Marketing Organization

Impact

Innovation as a Practice

Q&A

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Connecting the 2014 and 2013 Studies

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The B2B MarketingResearch Series

2013 Study:

A Reinvention of B2B Marketing

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2013 Study: A Reinvention of B2B MarketingWhat We Found – The B2B Marketing Spectrum

There are four types of B2B companies; but True Partnerships

between marketing and sales lead to highest growth

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The 2014 Study

The 2014 Study

251 B2B

Marketing

Respondents

$250MM+

Revenue

(52% $1B+)

Director and Above

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Innovation and the New B2B Marketing Organization

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Defining Innovation(simply)

in·no·va·tionˌ

[inəˈvāSH(ə)n]

noun

creativity that drives value

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How Marketers Define Innovation

15% Innovation means allocating the resources (time, people,

dollars, space) for creativity and experimentation

We use the terms "innovation" and "creativity" interchangeably16%

19% Innovation is about generating new ideas, not just

tinkering with old ones

20% We are successfully implementing and receiving value

from new ideas

30% A mix of creativity with new capabilities (customer

experience, data, etc.)

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How Marketers Define Innovation

15% Innovation means allocating the resources (time, people,

dollars, space) for creativity and experimentation

19% Innovation is about generating new ideas, not just

tinkering with old ones

20% We are successfully implementing and receiving value

from new ideas

30% A mix of creativity with new capabilities (customer

experience, data, etc.)

We use the terms "innovation" and "creativity" interchangeably16%

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Innovative vs. Traditional

Budget for innovation

Balance breakthroughs with

incremental change

Open to outside help

Measure innovation impact

Risk averse

Fear failure

Confuse creativity

with innovation

Growing more slowly

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Marketing Evolution & Innovation

37%

43%

53%

57%

57%

31%

38%

45%

53%

54%

0% 10% 20% 30% 40% 50% 60%

As competition increases, content/inbound marketing isbecoming less effective over time

Awareness / acquisition marketing is becoming lesseffective over time

First conversations with prospects now happen well into theprocess - they arrive informed and ready to talk because of

lead nurturing, content, etc.

Marketing is under increasing pressure to quantify ourcontribution to revenue/growth

The traditional sales "funnel" no longer describes our leadnurturing process - it's far more complicated than that

2014 Highly innovative orgs

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Innovators exhibit greater awareness of disruptors and trends

- showcasing a progressive point of view

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Marketing Evolution & InnovationSales Relationship

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Innovative organizations are 30% more likely to have

strong partnerships between marketing and sales

27%29%

33%

11%

29%

15%

43%

12%

0

0.1

0.2

0.3

0.4

0.5

Sales-led organization Sales and Marketing work inpartnership to some degree

Sales and Marketing work inpartnership to a large degree

Marketing-led

All Highly innovative

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The Impactof Innovation

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Where Are Marketers Innovating WITHIN Marketing?

5% 5%8%

15%

22%

46%

5%

17% 16% 15%

35%

26%

0%

10%

20%

30%

40%

50%

Improving employeeretention

Improving existingproduct

Increasingemployees'productivity

Making processmore efficient

New productdevelopment

Improving customersatisfaction /

retention


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Innovators are disproportionately impacting products (growth) and

productivity (efficiency) versus the customer retention focus of others

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Where Are Marketers Innovating OUTSIDE of Marketing?

37%

16%

46%

48%

61%

45%

47%

51%

58%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Customer service

Finance / forecasting

Executive management / strategy

Product development / R&D

Sales


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Marketing innovators have broader organizational impact

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Return on (Marketing) Innovation Brings Enterprise Value

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The Return on Innovation

Return on Investment

of innovation budget

40%

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Average percentage of 2014

revenue tied to innovation initiatives

30%

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Average percentage of 2014

revenue growth tied to innovation initiatives

26%

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What You May Not Want to Hear: Innovation as Practice

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Innovation is Hard Work

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Marketing innovators specifically designate budget.

49% of of innovative companies that do so

30% of traditional companies designate an innovation budget versus

Traditional

Companies

Innovative

Companies

Standard Operating Innovation

Budget

0% 25% 50% 75% 100%

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Incremental

27

Marketing innovators focus on incremental just as much

as “breakthrough”.

55% of innovative companies

27% of traditional companies have a good balance between

“breakthrough” innovation and incremental improvement versus

0% 25% 50% 75% 100%

Traditional

Companies

Innovative

Companies

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Time

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Marketing innovators allocate time to innovate.

versus 51% of innovative companies

24% set aside specific time/opportunity to encourage innovative thinking

0% 25% 50% 75% 100%

Traditional

Companies

Innovative

Companies

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Metrics

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Marketing innovators measure intently.

66% of those companies that are innovative

42% of traditional companies measure innovation through the lenses of speed

(time to market), quality (impact) and quantity (volume) versus

0% 25% 50% 75% 100%

Traditional

Companies

Innovative

Companies

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Infographic

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Largest Barriers to Innovation

All Organizations Highly Innovative

Traditional Mindset 1 3

Risk Aversion 2 4

Low Tolerance for Failure 3 6

High barriers between teams/silos 4 5

Resistance to ideas from non executives 5 1

Resistance to bringing in outside views/expertise 6 2

Lack of Process Around Innovation 7 7

Most concerned with culture:

“Why Innovate”

Most concerned with sources of inspiration:

“How Innovate”

Marketing Innovators have moved from “should we” to “how do we?”

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What Innovators Have Learned

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Innovation FuelNumerous important factors contribute

29%

34%

37%

41%

42%

51%

59%

0% 15% 30% 45% 60% 75%

External influence - third party expertise and outside view

Cultural factors - trust, acceptance of failure, less siloed structure,rewards for initiative, diversity of talent, etc.

Training - skills development, creative thinking

Processes and incentives - regular measurement, enabling time andbudget for innovation, rewarding innovative behaviors

Tools - technology for collaboration, innovation management, etc.

Customer-centric focus - innovation fuelled by feedback, VOC, etc.

Strategic factors - leadership commitment, priority, etc.

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What Fuels InnovationKey factors cited as impactful once experienced

29%

34%

37%

41%

42%

51%

0% 15% 30% 45% 60% 75%

External influence - third party expertise and outside view

Cultural factors - trust, acceptance of failure, less siloed…

Training - skills development, creative thinking

Processes and incentives - regular measurement,…

Tools - technology for collaboration, innovation…

Customer-centric focus - innovation fuelled by feedback,…

Strategic factors - leadership commitment, priority, etc.

Important + High impact factorsImportant Factors

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59%

Three Takeaways

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Three Takeaways

Innovation is a process.

Three Takeaways

2Innovation takes resources (time/budget).

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Three Takeaways

Innovation is

hard work.

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Questions?

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Next Steps

STEFAN TORNQUIST

VP, Research

Econsultancy

@marketingStefan

ROB SHERRELL

Vice President

Sparks Grove

[email protected]

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Thank You.

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