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Posts Tagged ‘Agency labs’

  • Exploring The Edges: On Innovation In Agencies

    28th April 11

    Posted by Mel Exon

    Posted in business models

    Last weekend @malbonnington posed a deceptively simple question: Do We Really Need Chief Innovation Officers in Ad Agencies? He cited four people with related titles, including our own @saneel who holds the title Director of Innovation at BBH NY. I was reminded of Ed Cotton’s posts which asked a similar question about the role of agency labs. In both cases, the comment threads are as enlightening as the posts – don’t take our word for it, go check them out, including Ben’s own excellent response here. Below I’ve pulled out and built upon our contribution to the debate in both cases. Consistently aided and abetted, prodded and provoked by others far smarter than us since we set up Labs in 2008 (you know who you are, the likes of @edwardboches, @benkunz, @timogeo, @malbonster, @patsmc, @willsh, @caseorganic, @irowan, @danlight, @shaunabe, and @tomux are just a flavour), this post has ended up being a distillation of what we’ve learned so far about this topic.

    Image by Eistean, via Flickr

    I suspect innovation, or more specifically, how we deliver it, is a topic that’ll continue to cause debate in any creative industry worth its salt, for the simple reason that innovation isn’t an ‘add-on to what we all do, it is the decades-old bedrock of our existence: asking audiences to see their world in new ways, seeking new routes to communicate, shining a light on invention. We may embrace co-creation and recombinant culture, but our industry still worships at the altar of originality. Who of us doesn’t want to do ground-breaking stuff? Inevitably, it follows that the very idea of “innovation transcending functional expertise“ can feel like a total anathema.

    Certainly, my immediate response to the questions about Chief Innovation Officers and agency labs is pretty simple: in most cases, I wouldn’t appoint someone to the job.

    I say this for three reasons:

    a. Few agencies aspire to operate close enough to the “bleeding edge” to justify the cost.
    b. As others have commented in the past, the hiring of a CIO all too often represents an abdication of a management team’s responsibility to lead change.
    c. It’s a tight rope walk of a job. Incredibly easy to slip off.

    And yet…for the people with the appetite to try it, here are a couple of thoughts on why, when and how we *might* make it work:

    1. Start by picking your company carefully.

    Oddly, it’s at the extreme ends of the spectrum of corporate health that this role may be most useful: at the hellish end where a company is wallowing in a stagnant backwater, the short term appointment a CIO could help signal a fresh agenda. At the opposite end, when an agency has grown too big to sit around one table yet retains a forward-looking culture, a CIO can play a powerful, much more strategic role. More on this below.

    2. Demonstrate the value of exploring the ‘edges’.

    Make sure everyone around you (that’s the whole agency, not just management) are on board with the commercial and creative advantage your role can bring. Summarised, the task is to explore and exploit the opportunities at the “edges” of your business, as described in a related FT.com article from earlier this year:

    “Edges could involve new product introductions, expansion into new markets, or the launch of entirely new business propositions…the edges of companies are generally more open to change and the adoption of new technologies, because they face more unmet needs and fewer established routines. The people who are attracted to edges tend to be less risk-averse, as well….Longer term, edge initiatives have the potential to become the new core of the enterprise.”

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