STEFAN ERSCHWENDNER и JOANNA BAKAS, Управляющие партнеры, LHBS

CULTURAL INNOVATION

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Sunday, October 23, 11

creation of better or more
eﬀective products, processes, technologies, or ideas
that are accepted by markets and society.

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CONTEXT

def: the conditions and circumstances that are relevant to
an event, fact, etc.

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life does not happen here
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tunnel vision
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historically, marketers have been focused on looking at
behavior, consumption and people in tightly de ned
industry clusters; categories, products and demographics.

purchase decisions will be impacted by a much broader set
of in uences, beliefs, wants and needs which are evolving
and shiing over time

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broader picture that reveals the full context
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CONTEXT MEASUREMENT:
observe how people are changing their
behavior in all aspects of life to draw
implications, inspiration and
opportunities for brand renovation
and innovation

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BIG PICTURE AND SOCIAL
OBSERVATION

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data mining: data is all around us
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research reports
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brand KPI’s
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but also keen and curious observation
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unusual and unexpected facts & observations could point to a new
emergent behavior and therefore need and therefore brand opportunity

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to be successful, an idea must connect
or stem from a larger ‘conversation’
that is happening in the culture

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if we listen to only our own noise, we will miss the signals
that culture is sending us

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when an entrepreneur observed ‘single’ behavior, a blending
of work and leisure, rising desire to Euro lifestyle in the US
and the need for a third place between work and home

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and with the emergence of crowd-sourcing, the creative,
empowered and networked consumer they went want step
further and created my STARBUCKS

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when society is ready for an idea, almost anyone can start one

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the trend towards the ‘quanti ed self ’ became apparent
from our desire to measure and optimize ourselves: calorie
and carb counting, the rise of plastic surgery, the rise of
functional foods, measuring our carbon footprint, test and
quizzes to measure ourselves and others was the underlying
behavior that made some recent innovations so successful

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if I run, I want to know where, how long and how I measure up

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am I optimizing my sleep

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‘diaspora’, connectivity & sharing

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a deeper understanding of human behavior led to the most
talked about innovations from Apple

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trends in music consumption
mobility on the rise
the emergent trend of sharing
the internet and the rise of ‘free’ then nearly free

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the unexpected need for a third screen
when all category examination pointed against it

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‘un-needed’ product until behavior comes into play
looking at what people do beyond ‘category’ insight

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measure the important bits and behaviors

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"It's really hard to design products by
focus groups. A lot of times, people
don't know what they want until you
show it to them."
Steve Jobs, BusinessWeek, May 25 1998

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but most companies don’t run on the vision of a solitary genius
need for moving from getting lucky to getting better

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a systematic approach to consumer
understanding, identifying needs and gaps
is what context research and analysis is all
about

we are surrounded by ‘data’ that hints at
and points to what ideas and consumers
will adopt

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FROM DATA TO WISDOM

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wisdom:
understanding
principles

knowledge: understanding patterns

information: understanding relationships

data: yet unrelated facts and observations

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ideas that
generate

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DATA/FACTS

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data points are examples of relevant or changing behavior
rather than claimed behavior

they could be statistics, street observations, ethnographic
learning

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a regularly fed and updated data base of signals that illustrate
behavioral shifts or observations in society

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multiple sources of data

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looking for data is a daily event

weak signals and interesting observations surround us
constantly in terms of what we read and what we see, what
we hear and what we learn

data collection can also be organized through purely
ethnographic methodology by which we observe people in
their natural environments

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people spend about 5% of their time being what we call
‘consumers’

the rest of the time, they spend time in life

we’ve identi ed several elds which constitute life and
classify our data accordingly

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overall consumption
growing categories, shifts in preferences and price sensitivity, retail

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health and well being
eating habits, exercise habits, rest and relaxation, methods of detox
grooming and beauty regimens and products

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home and family
the role of the home, how we raise our children and motherhood
aesthetics and decor, urban vs. rural, second homes, chores
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genders
roles of men and women, marriage trends
coupling, dating, tribal rituals, interaction, expectations

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technology
devices, mobility, media and entertainment
interfaces, avoidance, connectivity, services and transactions

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leisure & entertainment
when and where, travel vs. home, out vs. in
content and nature, kids vs.adult, passive or active

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politics and civic topics
how we vote, winning slogans, activism
level of participation, conversations and media
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youth culture
education, employment, orientation
fashion, music, loyalties, lifestyle, world view
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sustainability
environment, urbanization, green
bio, food, packaging, fair trade 53


media
topics, bubbles, usage, role models
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Enabling technologies

Social norms

Emerging Macro economics

Political climate

Geo-political events
POP culture
personalities, content, popularity, conversations

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macro economy
economic fluctuations, global impacts, economic mood, confidence

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table conversations & opinions
what are we hearing over and over again, cultural WOM

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heroes and villains
real and fictional, who do we admire and emulate
who do we despise and hate
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anomalies
jus weird stuff that people are doing

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EXAMPLE

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INFORMATION/RELATIONAL

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clustering data into related ‘bundles’


what is the underlying behavior that underlines the data -
the facts and observations?

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EXAMPLE

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rejection of
passive roles, explicit
& in your face
assertive, independent
& confident
‘taking no prisoners’


breaking cliches
stepping into male
territories
liberated from
expectations


physical in a manly
way
from hunted to hunter
no longer passive


‘boys’ behaving badly
role reversal
masculine behavior


Once it’s an accident
Twice it’s a coincidence
ree times it’s a pattern

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KNOWLEDGE/PATTERNS

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idenitfying emerging patterns of behavior

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is there a patterns that these observational clusters start to
form?

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ALPHA geeks
let’s get physical

dark & demanding more feminism 3.0
DARK &
DEMANDING
FOR MORE


so what’s the story?

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let’s get physical
ALPHA geeks
dark & demanding more
feminism 3.0

EMBRACING
MARS

playing in their playground but
according to our own rules

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WISDOM/PRINCIPLES

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?
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how can you add functionality to your
brand

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how can you ad an element of
competitiveness to your brand - inject it
with ALPHA behavior

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how can you ad an element of
competitiveness to your brand - inject it
with ALPHA behavior

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how can you ‘unpink’ your brand

Sunday, October 23, 11 90

how can you ‘unpink’ your brand

Sunday, October 23, 11 91

how can you add intellect and rationality
to your brand
Let's market PCs like it's 1959
Dell launches 'Della,' a Web site geared to women and 'cute' netbooks

Netbooks and laptops are presented as fashion statements, and
the site's "tech tips" includes a feature, "Seven Unexpected
Ways a Netbook Can Change Your Life," which starts out by
saying, "Once you get beyond how cute they are, you'll nd
that netbooks can do a lot more than check your e-mail."
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FROM OPPORTUNITY TO CONCEPT

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turning wisdom into concrete ideas & concepts

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collaboration & co-creation

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collaboration & co-creation

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FROM CONCEPT TO EXECUTION

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I don't want to hear people's ideas. I'm not interested
until I see their execution.
—Derek Sivers

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holistic implenatation: keep it to one narrative

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awful idea weak idea so so idea good idea great idea brilliant idea
-1 1 5 10 15 20

no execution
$1 -$1 $20

weak execution
$1000

so so execution
$10,000

good execution
$100,000

great execution
$1,000,000

brilliant execution
$10,000,000 -$10,000 $200,000

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IN CONCLUSION

is is only the beginning

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if we listen to our own noise, we will
miss the signals that culture is sending
us

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observing in all aspects of life rather
than just category behavior will hint
towards patterns of the ideas and
concepts that people are ready to
embrace

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creative concepts development for
innovation and strategy happen within
predetermined opportunity areas
rather than just a creative exercise

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there is no silver bullet for successful
innovation but understanding cultural
and social shis gives you a better
starting place

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get collaborative and co-creative

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concepts are nothing without
execution

keep it to single narratives and don’t
lose the concept during the process

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ank you

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GET IN CONTACT WITH US:

Oﬃce:

LHBS Consulting GmbH http://www.lhbs.at
Rasumofskygasse 26 / Neubaugasse 1 http://www.twitter.com/LHBS_at
1030 Wien / 1070 Wien http://www.facebook.com/LHBS.at

Management:

Joanna Bakas, Managing Partner Stefan Erschwendner, Managing Partner
+43 699 1720 1994 +43 650 372 6486
jb@lhbs.at se@lhbs.at


STEFAN ERSCHWENDNER и JOANNA BAKAS, Управляющие партнеры, LHBS

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