...SPOTLIGHT ON REINVENTION Spotlight BELOW Michel de Broin, Encircling, 2006 Asphalt, yellow paint, road sign, 14.8 x 21.9 m Scape Biennale, Christchurch, New Zealand Rethinking Ma Because companies can now interact directly with customers, they must radically reorganize to put cultivating relationships ahead of building brands. by Roland T. Rust, Christine Moorman, and Gaurav Bhalla 94 Harvard Business Review January–February 2010 HBR.ORG Roland T. Rust (rrust@ rhsmith.umd.edu) is a Distinguished University Professor and the David Bruce Smith Chair in Marketing at the University of Maryland’s Robert H. Smith School of Business. Christine Moorman (moorman@duke.edu) is the T. Austin Finch, Sr., Professor of Business Administration at Duke University’s Fuqua School of Business in Durham, North Carolina. Gaurav Bhalla (gaurav. bhalla@knowledgekinetics. com) is the president of Knowledge Kinetics, based in Reston, Virginia. rketing SPOTLIGHT ON REINVENTION I Building Relationships Product-Manager Driven Many companies still depend on product managers and one-way mass marketing to push a product to many customers. magine a brand manager sitting in his office developing a marketing strategy for his company’s new sports drink. He identifies which broad market segments to target, sets prices and promotions, and plans mass media communications. The brand’s performance will be measured by aggregate sales and profitability, and his pay and future prospects...
Words: 4095 - Pages: 17
...array of technology available to generate products to satisfy these demands. Companies are responding to the opportunities to provide unique customer value with products ranging from customized phone pagers for business users to self-designed, individualized greeting cards for consumers. Indeed, McKinsey research underlines the weakness of thinking about markets only in general terms—talking of market trends, growth markets, mass markets, declining markets, and so on—and collecting information that describes only broad trends, where differences within markets are averaged-out. They point to the identification of opportunities from a deeper understanding of markets at a “granular” level. Market fragmentation and increasing granularity characterize a growing number of markets. The compelling logic of market granularity is that effective strategy can emerge only from a much finer understanding of market segments, their needs, and the capabilities required to serve them.1 Best Buy provides an interesting illustration of strategic market segmentation. Best Buy is the world’s largest electronics retailer with sales revenue of $50 billion. In 2003 Best Buy piloted its “customer-centricity” strategy, radically shifting the company’s strategic emphasis from products and technology to customers. The goal was to focus on the most attractive customers based on the important differences...
Words: 16308 - Pages: 66
... Artwork Chad Hagen Nonsensical Infographic No. 5 2009, digital hbr.org Analytics 3.0 In the new era, big data will power consumer products and services. by Thomas H. Davenport T hose of us who have spent years studying “data smart” companies believe we’ve already lived through two eras in the use of analytics. We might call them BBD and ABD—before big data and after big data. Or, to use a naming convention matched to the topic, we might say that Analytics 1.0 was followed by Analytics 2.0. Generally speaking, 2.0 releases don’t just add some bells and whistles or make minor performance tweaks. In contrast to, say, a 1.1 version, a 2.0 product is a more substantial overhaul based on new priorities and technical possibilities. When large numbers of companies began capitalizing on vast new sources of unstructured, fast-moving information—big data—that was surely the case. Some of us now perceive another shift, fundamental and farreaching enough that we can fairly call it Analytics 3.0. Briefly, it is a new resolve to apply powerful data-gathering and analysis December 2013 Harvard Business Review 65 Spotlight on Making Your Company Data-Friendly methods not just to a company’s operations but also to its offerings—to embed data smartness into the products and services customers buy. I’ll develop this argument in what follows, making the case that just as the early applications of big data marked a major break from the 1.0 past, the...
Words: 4608 - Pages: 19
...CUSTOMERS The One Number You Need to Grow by Frederick F. Reichheld FROM THE DECEMBER 2003 ISSUE T he CEOs in the room knew all about the power of loyalty. They had already transformed their companies into industry leaders, largely by building intensely loyal relationships with customers and employees. Now the chief executives—from Vanguard, Chick-fil-A, State Farm, and a half-dozen other leading companies—had gathered at a daylong forum to swap insights that would help them further enhance their loyalty efforts. And what they were hearing from Andy Taylor, the CEO of Enterprise Rent-A-Car, was riveting. Taylor and his senior team had figured out a way to measure and manage customer loyalty without the complexity of traditional customer surveys. Every month, Enterprise polled its customers using just two simple questions, one about the quality of their rental experience and the other about the likelihood that they would rent from the company again. Because the process was so simple, it was fast. That allowed the company to publish ranked results for its 5,000 U.S. branches within days, giving the offices real-time feedback on how they were doing and the opportunity to learn from successful peers. The survey was different in another important way. In ranking the branches, the company counted only the customers who gave the experience the highest possible rating. That narrow focus on enthusiastic customers surprised the CEOs in the room. Hands shot up. What about the rest...
Words: 5655 - Pages: 23
...Financial Services and the Retail Consumer……………...12 Organization, E-Citi and Citi’s Global Consumer Strategy Product Market Segmentation, Cross-selling and International Leverage…………....24 Mobile Phone Basis Citi’s Future Global Retail Banking Strategy…………………..30 Products, Service Support and IT Selection Strategies……………………………….34 6 7 8 Japan, A Microcosm – Synergies, Affiliations and Reach ……………………………….36 Trust Bank, Complementary Services, and Interactive Strategic Benefits……………….55 Summary - Owning the Future of International Retail Banking……………………….…57 Appendix I - Summary Answers to Questions for Citigroup - IRB Strategy & Operations….65 Appendix II - Some Firm and Market Data Tables 1-6…………………………………………………………………………......73 Highlights from Citi’s Assessment of Global Consumer Business 1999 and 1998…..83 Bibliography and References………………………………………………………………….89 Introduction: Objectives of this Benchmarking Study This international retail banking study for Citigroup (CG)1 was completed under a three-year research grant from the Sloan Foundation. The project’s overall purpose has been to examine in a series of case studies how U.S. and Japanese firms who are recognized leaders in using information technology (IT)2 to achieve long-term sustainable advantage have organized and managed this process. While each case is complete in itself, each is part of this larger study.3 This case for a large international bank with extensive global retail banking and financial services capabilities...
Words: 35090 - Pages: 141
...PART ONE • UNDERSTANDING SERVICES SERVICES IN THE MODERN ECONOMY As consumers, we use services every day. Turning on a light, watching TV, talking on the telephone, riding a bus, visiting the dentist, mailing a letter, getting a haircut, refueling a car, writing a check, or sending clothes to the cleaners are all examples of service consumption at the individual level. T h e institution at which you are studying is itself a c o m p l e x service organization. In addition to educational services, today's college facilities usually include libraries and cafeterias, counseling, a bookstore, placement offices, copy services, telecommunications, and even a bank. If you are enrolled at a residential university, campus services are also likely to include dormitories, health care, indoor and o u t d o o r athletic facilities, a theater, and perhaps a post office. Customers are not always happy with the quality and value of the services they receive. People complain a b o u t late deliveries, r u d e or i n c o m p e t e n t personnel, i n c o n v e n i e n t service h o u r s , p o o r p e r f o r m a n c e , and needlessly complicated p r o cedures. T h e y grumble about the difficulty of finding sales clerks to help t h e m in retail stores, express frustration about mistakes on their credit card bills or bank statements, shake their heads over the complexity of new self-service equipment, m u t ter about p o o r value, and sigh as they are forced to wait in line almost everywhere...
Words: 190128 - Pages: 761
...Columbia Project: Use of Software to Achieve Competitive Advantage AUTOMOBILES: TOYOTA MOTOR CORPORATION Gaining and Sustaining Long-term Advantage Through Information Technology Case Prepared By William V. Rapp Co-Principal Investigator The College of International Relations Ritsumeikan University Kyoto, Japan 914-945-0630 (Fax: 914-923-1416; 011-81-75-466-1214) E-mail: william.rapp@aya.yale.edu April 2000 SOFTWARE AS A TOOL OF COMPETITIVE ADVANTAGE: AUTOMOBILE INDUSTRY 1 2 3 4 5 Introduction: Objectives of this Benchmarking Study……………………….…….3 Approach: Methodology and Questions…………………………………………....9 Introduction to Case…………………………………………………………….…10 The Industry Context: The Japanese and Global Automobile Industries………….10 Toyota’s Multi-faceted Global Strategy………………………………….………..21 Smart Production (scheduling, buffer stocks, interactive controls) Smart Design IT and Management of Supplier Networks Smart Marketing Responding to Demand Changes Through Smart Production & Design 6 Smart Car…………………………………………………………………….……...42 Environmentally Smart Cars Intelligent Transportation System (ITS) 7 8 Information Technology Infrastructure and Project Selection………………………60 Summary - Controlling the Future…………………………………………………..68 Exhibit 1 - Promotion Plan for Intelligent Transportation System………………………78 Exhibit 2 - Toyota’s ITS Businesses and R&D………………………………………….79 Exhibit 3 - ITS Evolutionary Development……………………………………………..80 Appendix I Summary Answers to Questions for Toyota...
Words: 31150 - Pages: 125
...TE AM FL Y Praise for Marketing Insights from A to Z “The bagwan of Marketing strikes again. Leave it to Phil Kotler to revisit all of our blocking and tackling at just the right time . . . and as all great marketers know: ‘timing is everything.’” —Watts Wacker Founder and CEO, FirstMatter Author, The Deviant Advantage: How Fringe Ideas Create Mass Markets “Wide-ranging, readable, pithy, and right on target, these insights not only are a great refresher for marketing managers but should be required reading for all nonmarketing executives.” —Christopher Lovelock Adjunct Professor, Yale School of Management Author, Services Marketing “Kotler tackles the formidable challenge of explaining the entire world of marketing in a single book, and, remarkably, pulls it off. This book is a chance for you to rummage through the marketing toolbox, with Kotler looking over your shoulder telling you how to use each tool. Useful for both pros and those just starting out.” —Sam Hill Author, Sixty Trends in Sixty Minutes “This storehouse of marketing wisdom is an effective antidote for those who have lost sight of the basics, and a valuable road map for those seeking a marketing mind-set.” —George Day Geoffrey T. Boisi Professor of Marketing, Wharton School of Business “Here is anything and everything you need to know about where marketing stands today and where it’s going tomorrow. You can plunge into this tour de force at any point from A to Z and always come up with remarkable insights and...
Words: 53807 - Pages: 216
...TE AM FL Y Strategic Planning for Information Systems Third Edition JOHN WARD and JOE PEPPARD Cranfield School of Management, Cranfield, Bedfordshire, UK Copyright # 2002 by John Wiley & Sons Ltd, Baffins Lane, Chichester, West Sussex PO19 1UD, England National 01243 779777 International (þ44) 1243 779777 e-mail (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on http://www.wiley.co.uk or http://www.wiley.co.uk All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London, UK W1P 9HE without the permission in writing of the publisher. Other Wiley Editorial Offices John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, USA Wiley-VCH Verlag GmbH, Pappelallee 3, D-69469 Weinheim, Germany John Wiley Australia Ltd, 33 Park Road, Milton, Queensland 4064, Australia John Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop #02-01. Jin Xing Distripark, Singapore 129809 John Wiley & Sons (Canada) Ltd, 22 Worcester Road, Rexdale, Ontario M9W 1L1, Canada British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 0-470-84147-8 Project management by Originator...
Words: 228455 - Pages: 914
...C OLLEGE Elnora W. THE UNIVERSITY OF SOUTH CAROLINA UPSTATE STUART Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Melissa Sabella Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elisabeth Scarpa Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Anne Fahlgren Marketing Assistant: Melinda Jensen Senior Managing Editor: Judy Leale Project Manager: Becca Richter Senior Operations Supervisor: Arnold Vila Creative Director: Jon Christiana Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Media Project Manager, Production: Lisa Rinaldi Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management: S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Bindery: Courier/Kendalville Cover Printer: Courier/Kendalville Text Font: Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Screen shots and icons reprinted with permission from the Microsoft Corporation...
Words: 160652 - Pages: 643
...Yale & Hana To Rusty, Russell &Kristin VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR EDITORIAL ASSISTANT MARKETING MANAGER DESIGN DIRECTOR SENIOR DESIGNER SENIOR PRODUCTION EDITOR SENIOR MEDIA EDITOR PRODUCTION MANAGEMENT SERVICES This book is printed on acid-free paper. Don Fowley Beth Lang Golub Lyle Curry Carly DeCandia Harry Nolan Kevin Murphy Patricia McFadden Lauren Sapira Pine Tree Composition Copyright 2010 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201) 748-6011, fax (201) 748-6008, website www.wiley.com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). ISBN 978-0-470-34381-4 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Preface Information technology and business are becoming inextricably interwoven. I don’t think anybody...
Words: 175164 - Pages: 701
...Yale & Hana To Rusty, Russell &Kristin VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR EDITORIAL ASSISTANT MARKETING MANAGER DESIGN DIRECTOR SENIOR DESIGNER SENIOR PRODUCTION EDITOR SENIOR MEDIA EDITOR PRODUCTION MANAGEMENT SERVICES This book is printed on acid-free paper. Don Fowley Beth Lang Golub Lyle Curry Carly DeCandia Harry Nolan Kevin Murphy Patricia McFadden Lauren Sapira Pine Tree Composition Copyright 2010 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201) 748-6011, fax (201) 748-6008, website www.wiley.com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). ISBN 978-0-470-34381-4 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Preface Information technology and business are becoming inextricably interwoven. I don’t think anybody...
Words: 175164 - Pages: 701
...C OLLEGE Elnora W. THE UNIVERSITY OF SOUTH CAROLINA UPSTATE STUART Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Melissa Sabella Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elisabeth Scarpa Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Anne Fahlgren Marketing Assistant: Melinda Jensen Senior Managing Editor: Judy Leale Project Manager: Becca Richter Senior Operations Supervisor: Arnold Vila Creative Director: Jon Christiana Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Media Project Manager, Production: Lisa Rinaldi Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management: S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Bindery: Courier/Kendalville Cover Printer: Courier/Kendalville Text Font: Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Screen shots and icons reprinted with permission from the Microsoft Corporation...
Words: 160652 - Pages: 643
...Rusty, Russell &Kristin VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR EDITORIAL ASSISTANT MARKETING MANAGER DESIGN DIRECTOR SENIOR DESIGNER SENIOR PRODUCTION EDITOR SENIOR MEDIA EDITOR PRODUCTION MANAGEMENT SERVICES Don Fowley Beth Lang Golub Lyle Curry Carly DeCandia Harry Nolan Kevin Murphy Patricia McFadden Lauren Sapira Pine Tree Composition This book is printed on acid-free paper. Copyright 2010 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201) 748-6011, fax (201) 748-6008, website www.wiley.com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). ISBN 978-0-470-34381-4 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Preface Information technology and business are becoming inextricably interwoven. I don’t...
Words: 175167 - Pages: 701
...Customer Relationship Management VSF This book is dedicated to my children Emma and Lewis of whom I am enormously proud. Customer Relationship Management Concepts and Technologies Second edition Francis Buttle AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2009 Copyright © 2009, Francis Buttle Published by Elsevier Ltd. All rights reserved. The right of Francis Buttle to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax: ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/ permissions, and selecting Obtaining permission to use Elsevier material. Notice No responsibility is assumed by the publisher for any injury and/or damage...
Words: 171161 - Pages: 685
