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A Love Affair

Hollywood and Silicon Valley have long had a relationship of working together, built around the creative outlook to the future of technology. Today’s idea of the future came from Hollywood’s artistic visions and inspirations. In turn, Silicon Valley brought those vision to life with today’s technological advances. Social media is the result of a love affair between creativity (Hollywood) and technology (Silicon Valley) to produce social advances that connect the world. Social media not only gives individuals a platform or outlet to express themselves, but also the tools to direct their own personal Hollywood story.

In today’s world content is king and there are an abundance of platforms that present the opportunity for Hollywood to be the new hub of innovation. HitRecord, for example, is a community of artists who openly collaborate on projects, laying the groundwork for the innovation of the future. The company is backed by a “RegularJoe” calling writers, musicians, filmmakers, photographers, animators, and illustrators alike to contribute and advance the idea of croudsourcing. HitRecord brings Hollywood to your fingertips and the social network begs the idea that Hollywood is not only a physical space but a collaborative effort among artists to create immersive experiences for consumers to enjoy.

In the same respect, Silicon Valley is no longer a physical location in Northern California, but rather the developing of our own Tomorrowland from inspirations and content developed by Hollywood. Today, every consumer is a creator of content and can partake in an immersive experience with the help of social media. Instagram, for example, allows the average Joe the opportunity to create content that will be applauded around the world. I for one, follow ido8all in Tel Aviv along with 12,281 other global admirers. Major media hubs are also taking notice of the content produced by the everyday artists. Huffington Post recently announced their new feature “The Art of Instagram”, which highlights budding photographers created by the flash of an iPhone camera. Instagram calls society to no longer define artists by their profession but by the inspirations that drive their creativity.

Artistry and creativity are inherently Hollywood vices, while Silicon Valley innately favors science and technology, but when married the two produce a realm in which innovation and inspiration thrives. As social media continues to prosper and bridge the gap between Silicon Valley and Hollywood, the everyday artist finds their voice in the imagination economy and our own Tomorrowland becomes a reality.

-Amanda Field

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A Call for Creativity

We read with interest last week’s article by Jill Tucker, education writer for the San Francisco Chronicle, entitled “Effort afoot to restore art in California schools.” Here’s the lead:  “As it turns out, business leaders hiring the workforce of tomorrow don’t want applicants who are really good at filling in bubbles on standardized tests.  Creativity is key, more than 1,500 executives said in a 2010 survey.”  The article then goes on to describe the collaborative efforts of executives, educators, artists and policymakers to restore the importance of arts in schools through a statewide initiative known as Create CA.

While the tussle over funding for arts in education isn’t new, what is new is the effort and recognition by business leaders of the importance of creativity as a core labor skill.  Just like business leaders say they don’t want students to simply be good test-takers, we find increasingly that clients don’t just want experts operating in silos.  The best thinking – and the most creative ideas – come from an array of perspectives.   And that’s precisely the concept behind our Creativity Council, which consists of colleagues at all levels – and across all practice groups — of our agency forging together to develop 360 degree solutions for today’s communications challenges.

Try it out in your own work environment.  I think you’ll find that injecting fresh thinking from people you might think are either “too junior” or “too removed” from the situation could be just the tonic you’re looking for.

You’ve Got Mail

Google launching Drive is a testament to the envy of behemoths in those who have a specialized skillset that is unbeatable. It is indicative of the rise of the Jobsian guiding principle of specialization. Doing one thing and doing it better than anyone else, to innovate in ways never before seen.

Dropbox, a company founded on that philosophy, was the impetus for Google’s late to the game Drive…and it’s runaway success is why Google is doing what it does better than anyone else..placing it in its crosshairs by dropping the hammer with a pricing model that is half the cost, attempting to place a chokehold on Dropbox the true innovator. (Sssh. Remember, Google is committed to never being evil.)

If true innovation, driven by agility, passion and a thirst to delight consumers is continued to be killed by the big tech sharks searching for chum in the water (as we saw with the ridiculous 1 billion dollar Facebook swallow up of Instagram) can we really believe in a brighter and better America that thrives on creativity and true innovation?

Values remain in question as the imagination economy ensues and continues to catalyze the new world’s reset. How values are preserved and rewarded will be very telling to our future economy and place on the global economic stage.

Valuation too will also factor into this equation. 1 billion for a 15 person start up brews more fear than excitement over the prosperity that will come from the pending Facebook IPO…as with a loss of values and valuation the “next Apple” could easily become a very different company beginning with an “A” once destined to rule the world…. got mail anyone? “Case” in point.

The Industrial Internet and the Imagination Economy

Like the Industrial Revolution, the Industrial Internet is a pipeline of business innovation and knowledge transfer that has, and will continue, to fuel political, economic and societal changes. And like the Industrial Revolution did, the Industrial Internet will continually shape the fabric of our society by influencing the way we live, work and grow.

Some may have not heard of or perhaps even recognized the Industrial Internet’s quiet arrival, but make no mistake – it is here. The Industrial Internet is transforming business on a daily basis and is influencing strategic direction. IBM has been one of the household brand names jumping headfirst into the possibilities of the Industrial Internet. In fact, they have over 2,000 projects under their “Smarter Planet” umbrella. One IBM initiative, as outlined by the New York Times, is in Dubuque, Iowa where I.B.M. “has embarked on a long-term program with the local government to use sensors, software and Internet computing to improve the city’s use of water, electricity and transportation… The savings in the pilot, nearly 7 percent, would translate into curbing water use by 65 million gallons a year.”

While the implications and definitions as they relate to business are wide-ranging, one of the most intriguing concepts that the Industrial Internet has created is the consumer-focused concept of crowd funding. Crowd funding – which is facilitating the imagination economy that uses ideas as the new currency – allows any business or project to ask the Internet community at large for money to start or finish a business or project.

One of the most popular sites, Kickstarter, has recently received significant media attention for a number of items including the Elevation iPhone Deck project raising more than $1 million in one day. That was followed up by independent video game studio Double Fine Productions, beating its goal of $400, 000 in only eight hours on its way to eventually raising $3.3 million.

The crowd funding phenomenon is compelling because it is taking the concept of the Industrial Internet – which, by and large, has been associated with traditional companies – and is expanding it to give individuals the power to decide which industries and products are worth building. Essentially, this iteration of the Industrial Internet is making consumers the bank, which means they are fueling the economy through their own capital. Not only is it making the consumers the bank, but it is empowering consumers to fund products and projects they would, in turn, purchase. Therefore, it is a unique insight into what the populace is demanding of its evolving economy.

As a proof point to Allison+Partners’ ideation of an emerging world of creativity and innovation, the crowd funding community is demanding imagination-driven products – books, music, movies, video games – that likely would not live, otherwise. Perhaps, just as important, it is creating jobs and advancing the economy like the Industrial Revolution did prior; it’s just an economy powered by astounding creativity, endless reach and the fruit of collaboration.

-Brent Diggins

And the Winners in TEM Are…

In a fairly depressed, yet eagerly optimistic economy, there are companies that have evaded the effects of the recession and triumphed above all. Why do such companies and inevitably their products, resonate with consumers? Why do consumers wait on-line for days on end or spend ridiculous amounts of money on fleeting items? The clear leaders all have one major characteristic in common – they foster an undeniably exceptional experience.

But one can always argue that all brands create an experience – it’s inherent in their marketing DNA. True, however, like most things in life, some do it better than others. There are four companies that have emerged as dominant experience-generating forces: Nike, Beats by Dr. Dre, Apple, and Target. The following outlines how these brands have capitalized in re-imagining and transforming products to deliver total experience management.

NIKE: The Nike Kool-aid has been ingested for years and even in this down economy, they have not lost their luster. Shoe enthusiasts across the globe park outside of stores for days in order to buy the latest Air Force Ones. In the 90s, Nike gained an unexpected audience in hip-hop artists, DJs, etc., who were wearing the shoes for style purposes. Now, Nike has evolved into a shoemaker that not only optimizes consumers’ performance, but maintains the distinctive style factor. Nike makes consumers feel empowered by their decision to buy a shoe that looks good and performs well.

BEATS BY DR. DRE: When did headphones become all the rage? Ever since Dr. Dre unleashed his chic and lavish $300 cans. There has been a tectonic shift in the sound accessory market. No longer are headphones a ubiquitous utility. Dr. Dre has flipped the industry around and turned them into fashion lust. It’s not just a conduit for music, these headphones have become an integral part of consumers lives.

APPLE: Steve Jobs’ vision was simple – get back to the basics and design products that fit the human body, its movements, and its cognitive abilities – in other words, build, market and distribute ergonomic products. With that in mind, in the Jobsian Era, Apple combined art and commerce (picture the iconic dark silhouetted characters against bright-colored backgrounds dancing) to launch a radical product – the iPod – and consequently an unparalleled experience. The best and most honest way to describe Apple’s superhuman abilities is to quote their iconic “Think Different” ad: “Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes… You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world are the ones who do.” And that is what Apple has done and continues to do – change the world.

TARGET: As Target states: “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.® brand promise.” Target thoughtfully designs stores to be easy and intuitive to shop, they also partner with high-end designers to create select product lines that have limited availability. The company has singlehandedly democratized high fashion and design by offering exclusive and otherwise unattainable brands names to the mass market.

As previously stated, these aforementioned brands are brilliant experience developers – producing models that reimagine innovation, defy user experience and boost brand awareness. They relentlessly strive to change and move humanity further along. Nike, Beats by Dr. Dre, Apple, and Target are some in an elite group that have revolutionized the idea of invention and total experience management.

-Sara Mandel

To specialize or not to specialize, that is the question…

…and one that faces businesses today more than ever. Do they specialize in one thing and be the best of the best, do they expand beyond that to do more things for the consumers who have grown to love them, do they try to grow into new divisions to offer consumers more and grow as a company?

As can be seen in the Jobsian Era, the notion of specialization continues to drive both business and consumer landscapes in two very different ways.

One way is through the market for specialized products from a consumer standpoint. Just look at The Meatball Shoppe [www.TheMeatballShoppe.com], SoulCycle [www.Soul-cycle.com] or Drybar [www.drybar.com] (a blowdrying only hairsalon). Not only are they practically booked all the time, but most of their consumers are brand loyal to the point of obsession. Simultaneously, large organizations are harnessing the concept of specialization from a business standpoint within their workforces as can be seen with Zappos [www.zappos.com] Chief Culture Officer, Intel’s [www.intel.com] Anthropology Officer or even our own Brand Innovation Group [www.allisonpr.com/thework/BIG] which focuses on infusing trends into brands.

The growth patterns spawned from specialization don’t stop there. Some brands that begin highly specialized are beginning to expand their experience into a more integrated offering. Gilt Groupe [www.gilt.com] for example, started as a specialized online sample sale site for high-fashion companies. After creating a cult following and jumpstarting a demand for high-end fashion sales the brand reach a critical point where it had to decide whether to expand or not. By taking the specialized concept and allowing it to be integrated across other genres – housewares, experiences, travel – they not only remained a thought-leader in the space they created but also continued to grow consumer loyalty and engagement.

But expanding is not the only way that specialization continues to seed the growth of new business and entrepreneurialism. Fitist.com, a new website currently in beta, created an integrated experience on top of specialized fitness offerings by allowing consumers to create their own larger program from individual studios. So if you love specific Spinning, Yoga and Zumba studios, you can actually bring them all together into a gym-esque monthly plan. Specialized but integrated.

If specialization continues to drive business to the extent it is, both with consumers and within the workforce, it is bound to continue to be one of the top factors for success with both established brands and the entrepreneurial community. But as the business landscape evolves and moves so quickly, is there a threshold to when being the best at one thing is no longer good enough or does this ever-changing economy lend itself to a new marketplace of specialization?

-Leilani Geller

Art & Commerce Continue To Drive Innovation

The combination of art and commerce to drive innovation is seen across industries, from Hollywood to specialty food trucks. However, the retail industry, one which has seen many ups and downs in the past four years, has truly embraced this movement to breathe new life and creativity into its sector and as a result drive consumer engagement.

This equation, combined with the fact that the imagination economy continues to ensue in full force, has led businesses like Target, The Gap, and H&M to look towards new avenues of creativity that tap into an experience well beyond the day-to-day products they sell. By creating the ability to democratize of luxury goods, these retailers have been able to elevate the untouchable artistry of high end designers, usually reserved for the wealthy, and make it available to the everyday consumer.

We’ve seen The Gap partner most recently with Diane Von Furstenberg, a woman well known for her artistry and use of bright colors and patterns. The Gap was able to make the luxuries her vision available to not only the everyday consumer, but to their children. Jason Wu, put on the map for styling Michelle Obama, took a similar approach by making his fashions available to the everyday woman through Target. And perhaps the best example of this trend in action is Versace’s line for H&M which sold out in less than a day across the country and even in less than 30 minutes in some locations.

So as this trend continues, what other industries will be impacted? How else will we see artistry combined with commerce? The overnight success of Pinterest could be one clue or the sustained growth of sites like Etsy and Fab. We’ll be keeping our eye out…

- Stephanie Saffer

Entertainment: The New Aorta of Innovation

As a result, the aorta of gravity for innovation also shifts as winning experiences married with technological prowess increasingly define success for brands regardless of industry. Think Samsung’s success with its gamification innovation Samsung Nation, or the cultural shift toward group activity instigated by the technological wonder of humor and artistry innovated by GroupOn. Consequently, the genesis of much of tomorrow’s innovation will continue to stem from the closing gap between Silicon Valley and Hollywood-as together these two forces of unmatched technology development and the unpatrolled ability to create immersively engaging experiences, mold the keys to the kingdom that will unlock the gateway to future innovation.

The potential for recalibrating our economy based on all of the above, in ways that poise us for greatness, appears vast, and the runway for new captains of industry to emerge, seems boundless. What will however determine if we are to succeed and lead in the new global economy, will be our ability to conservatively contain our elation around today’s victors with an eye toward not repeating the mistakes of the past…And demonstrating our proficiency in not replicating the wounding and annihilating hubris that can only come from irrational exuberance, will be critical. Notably, as history often repeats itself, two things will likely serve as harbingers to the path ahead in this area. First will be the handling of the Facebook IPO in ways ranging from everything from valuation, to public leadership, to the ability to not foresake the pursuit of innovation for the attainment of financial benefits derived from hollow commercialization ( a path often pursued by public companies to their detriment: (AOL, HP, Lehman Brothers) Second, will be the ability of Hollywood studios and media companies to detach themselves from the things that once determined their glory, in ways that allow reinvention that not only assure their future longevity, but also drive and contribute to the advancement of tomorrow’s ability to broadly innovate.

An exciting time, yet one rampant with sea changes that all leading brands must not only acknowledge, and respond to, but get ahead of. As such, communications, and it’s power to be an increasingly valuable tool to CEOs in not only broadcasting proactive responses and solutions to today’s emerging challenges, but in defining new innovations that create deeper experiences, drive more emotional connections, and facilitate bolder consumer engagement, on and offline, has never been greater.

The Industrial Internet

As the ground-breaking changes of the imagination economy abound, identifying the undercurrent to all of these paradigm shifts emerges as perhaps the most burning question. Is it the failing economy? Is it the new level of consumer empowerment? Is it the rampant globalization shifting the world’s center of gravity from West to East? Is it the new age of mobility? There is no one answer for the enormity of the titanic recalibrations brewing, but the next phase of the Internet’s power that is emerging stands out as the most likely culprit. As the wonder of technology’s ability to connect abates and becomes the norm, the potential that technology has to transform everything from the speed of business, to the infrastructures and principles driving society, resoundingly emerges. As such, the ability to harness this new paradigm in ways that drive innovation and business performance becomes the new Holy Grail.

The age of the Industrial Internet as reported in the New York Times is upon us, and the changes it will induce, will be as seismic, if not more so, than the ones experienced during the 19th century dawn of manufacturing known as the Industrial Revolution. Just as that era redefined everything from how things were made, to the speed at which business could move, to the things that could be innovated, created and produced, the age of the Industrial Internet has, and will continue to, illicit similar changes to the global business landscape. Leading brands and their stewards will consequently define and etch future leadership by their ability to harness these changes to the benefit of themselves and others. As this phenomenon unfolds, what defines leadership will change, with new leaders boldly anointed, and the economy’s center of gravity shifting from service centered (MSFT) to knowledge and imagination inclined (Apple).

The Jobsian Era

As the year unfolds we see all of these Jobsian principles unfolding broadly across the business landscape. The commercialization of many leading brands is being driven by the notion of art+commerce=innovation. We see this attempt at humanization everywhere from the CPG space with Brisk’s (who just became Pepsi’s latest billion dollar brand) artist inspired pop up campaign, to the auto sector with Honda’s emotionally nostalgic Ferris Bueller Super Bowl ads… Experience too continues to emerge as the defining factor of competitive differentiation, and the new cornerstone of the supply chain, as the age of total experience management unfolds. We see this everywhere, with brands from McDonald’s (multibillion dollar investment in complete re-design of restaurants worldwide) to eBay (pop up stores nationwide aimed at demonstrating their role in overall next gen retail) investing significantly in re-imagining winning experiences as much as innovating beloved products and services.

The notion of specialization also continues to sweep the landscape in every way from the proliferation of niche businesses (specialty food shops from pickles to meatballs, ) to the emergence of more and more specialty focused roles inside leading organizations. Following the lead of Apple, and potentially the success it has achieved in part due to Jonathan Ives singular focus on design, more and more companies are building their executive teams and consequently their innovation prowess, around this model. Whether it is a Chief Culture Officer (Zappos), Chief Design Officer (Coca Cola) or anthropology officer (Intel), organizations are increasingly moving toward business models centered around specialization as opposed to generalization in today’s imagination centered economy. The Jobs notion of do one thing and do it better than anyone else rapaciously erodes the once untouchable Welch legacy of do everything and do it as well as everyone. Today’s panacea to drive unsurpassed, market-leadership seems centered less around the ability to create uniform quality in mass and more around the genius of replicating one-of-a-kind artistry and creativity of scale.

Additionally, the bottom up driven innovation models of the past pioneered by GE, Microsoft and Google are being shunned in lieu of Apple-esque top down models driven by the CEO and senior leadership. No longer is innovation development a siloed function of the R&D department. It is a guiding principle of business strategy, and as a result, is increasingly stemming from the upper echelons of leading organizations. As Jobs famously said, “consumers don’t know what they want. It’s our job to tell them.” Following the pervasion of the all things Jobsian sentiment that is ubiquitously coloring the landscape, that notion is increasingly showing its face and driving the success of leading companies across industry (Think Mulally’s enterprise wide mandate to build Ford’s future on the in-car technology experience, or Bob McDonald’s directive to lead with marketing as an innovation that determines leadership, marketshare and lasting engagement. Case in point: ground breaking new Old Spice ads that co-market multiple P&G brands simultaneously in ways that create never before seen advertising experiences).

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