5. The difference between larger and
smaller companies
► Larger companies:
Innovation requires process
► Business plans, research, approvals, committees, testing, RoI
Many ideas battling for resources
Capital access is a competition with all the other needs of the
business
Often easier to acquire a successful start-up
► Smaller companies:
Often start-ups
Innovation is the reason for being – one BIG IDEA!
Access to capital (private equity or venture capital)
Rapid iteration in the market
Failure baked in as a necessity for success
6. Do large MR companies innovate?
► Yes!
Research International: MicroTest
Millward Brown: BrandZ, Link
GfK: Outdoor media monitoring
Arbitron: PPM
► BUT:the majority of large company new
products come from acquisition
7. Examples of acquired innovation
Acquiring Acquired Acquired
Company Company Innovation
Kantar MaPS Brand Tracking
IPSOS Livra Communities
GfK Arbor Brand Tracking
Nielsen Buzzback WOM
Passive
TNS Compete
measurement
8. Why do large companies acquire
innovation?
► Because innovation is occurring on a larger
scale and at a faster pace than at any time
in our industry’s history
► Larger companies innovate at a slower pace
– therefore risk being overtaken by
“disruptive technologies”
► “If you can’t beat them, eat them”
10. Why so much disruptive innovation
today?
► Technology
Internet
Social Media
► Popular “new ideas” books
E.g. “Wisdom of Crowds”, “Tipping Point”,
“Freakonomics”
► Pre-recession availability of capital
27. IEM - The original Predictive Market
X 656
Polls ¾
(1988 -
2008)
28. Use of Predictive Markets
► Concept Testing
► Political polling
► Integrated product testing
► Ad testing
More accurate than probability-based tests
32. Summary
► Availability
of capital + popular new ideas +
technology = the most productive era ever
in research for “Innovation at the Margins”
► Large companies will copy and will acquire
these innovations so that they enter the
mainstream
► Many will result in profound changes to
what we today regard as “market research”