Archive for August, 2008

How to spend $66 million on a website, without getting a website

The Italian government has spent five years and allocated €45 million on a tourism web portal, without actually producing anything yet.

The WSJ article is loaded with insights into the fiasco, which boils down to an object lesson in why design and innovation by committee is a recipe for suck:

  1. Start with the wrong objective.
    “Spain created a brand. Italy tried creating — without much success — a Web site.”

    I’m all for websites. I better be, considering they are a large part of what I base my livelihood on. But as with anything, you need to start with the end — your business objectives — in mind. Once we have those established, we have a frame of reference for all the decisions that follow in determining how best to achieve those.

    It sounds like the team on this project skipped the part about defining objectives and went right to features envy, briefing their myriad of agencies to give them a Titanic-sized web portal with which they could dwarf their Mediterranean rivals. At least the Titanic made it out of dry dock.

  2. Design by committee
    Hands up to everyone who visibly flinches at the words “bureaucracy” or “committee”. Now check this out:

    “Several government ministries — in two administrations — and each of Italy’s 20 regions were involved in creating the portal. Associations of travel agencies and hotel owners had their say as well, while the design and creation of the site was assigned to a consortium of three different companies.”

    It’s one of those massive errors in strategy and execution that are the specialty of bureaucracies: trying to please everyone.

    The sad thing is we’re not even talking about the people who would use the service, who in this case are the prospective tourists. Trying to please every potential tourist would’ve still been a mistake, but at least we could’ve forgiven them for having their heart in the right place.

    No, unfortunately the people they are actually trying to please are all the internal stakeholders. And there are thousands of them, by the sounds of it.

    What a recipe for disaster.

  3. No leadership
    There was “no single guide telling us where to go with this,” says Luca Palamara, former managing editor of www.italia.it.

    The thing about committees is they are actually not a bad thing if they are just used as a source of input. There is nothing fundamentally wrong with soliciting the input of smart people who may have different viewpoints.

    The problem is when committees take over, and start making decisions.

    Committee decision making is generally about lowest common denominator. No one gets offended, but no one is particularly happy either. The result is bland. If committee decisions were a meal they’d be porridge.

    Every successful, groundbreaking initiative needs a project champion. Someone who has the ultimate authority to make the calls, and make things happen. Or if they don’t have the authority, they make the calls anyway.

    If no one either seeks or is allowed to take accountability, then the natural result is:

  4. Decision paralysis
    Simple disputes over whether to handle hotel bookings through the Web site went unresolved after a year and a half of discussion.

    Think about Steve Jobs for a moment. Now can you imagine him spending even a week thinking about this? A month? A year and a half? You’ve got to be joking. But in a bureaucracy, it’s entirely possible.

    Decision paralysis initially seems harmless, but left unchecked it eventually leads to stagnation.

  5. Stagnation
    “The project was born already obsolete in technological, organizational and conceptual terms”

    Bureaucracy is the enemy of innovation for many reasons. Here’s one example: it introduces “drag” to everything.

    When things drag out (like say spending 18 months making a single decision which probably could’ve been made in a week) there are major, programme threatening impacts.

    This can include actual cost, from wasted time. Or it could be opportunity cost, like the marketplace changing in the meantime.

    But often the biggest loss is simply momentum. People get bored. Next steps become fuzzy, and lose urgenc. People forget what they were trying to achieve. Stakeholders change. Next thing you know, the project has cobwebs and everybody is on to a meeting about the next shiny thing.

    Ask any sports team or battlefield general — the most important weapon in your arsenal is momentum. The easiest way for a bureaucrat to kill something they don’t like is to simply to slow it down. Committees without leadership do it naturally.

€45 million for a tourism web portal.

For my digital agency brethren out there, let’s first have a moment of silence for all the incredible things we could’ve created for a fraction of that funding. Sigh.

Walker’s “Do us a Flavour”: FMCG crowdsourcing writ large

Walkers crisps | Simply 100% Great British Potatoes.jpg

Customer co-design initiatives like the Lego Factory, MUJI Award, Uniqlo UT Grand Prix have over the last several years successfully engaged a small but passionate group of professional and aspiring designers to help generate the concepts for their next range of products.

Now, one major FMCG brand is attempting to reach and engage their entire audience base this way, and scaling both the investment and reward to match.

The UK’s #1 crisp brand (that’s potato chip for my North American brethren) Walkers has just launched Do us a Flavour, inviting consumers to submit their ideas for the next flavour of Walkers crisps.

The mechanic is simple: submit your flavour idea to Walkers, including a name and picture of your inspiration. A panel of judges will pick six finalists, all of which will be created and go on sale. Over five months, the public will vote for their favourite flavour via mobile or online, and a winner will be announced.

What really caught my attention was:

  • It’s Walkers’ biggest ever campaign in their 60-year history, with a projected spend of £10m across PoS, radio, online, and television.

  • The prizes are massive. All five runners-up get £10,000, and the winner gets a one-off prize of £50,000, as well as 1% of all subsequent sales of their flavour.

1% of all future sales. I have no idea what this would amount to, but Walkers claims over 11 million people will eat their product every day, so on face value that would seem to potentially be a massive prize.

Credit to Walkers for realizing the amount of talkability that will generate. I can see the pub arguments right now, with off-the-cuff calculations of the enormous wealth to be received when my Blue Cheese and Prosciutto crisp takes the prize.

Overall I think it’s a great concept, as imagining and submitting bizarre combinations of flavours sounds like something that would appeal to tipsy pub goers anyway, and the reward takes it to a whole other level. The campaign looks well executed, from the choice of flavour mad scientist Heston Blumenthal as the head judge down to the great line of “Do us a Flavour”.

The scale is what sets this apart though. Walkers is coming off the back of having their Brit Trips promotion give them the fastest growing website in the UK and clearly believe consumer engagement is the way forward, and have pushed all their chips in on this one.

I’m really interested to see how this all plays out, and interested to know if you think this type of crowdsourcing is a simply fad, or if the trend in customer-driven product development is simply going to keep getting bigger and more important across all industries.

Success in member-get-member marketing looks like a Zebra

World of Warcraft_s _Recruit-A-Friend_ Program Detailed | Game | Life from Wired.com.jpg

Member-get-member marketing is potentially very powerful, but generally woefully under-exploited by brands. Providing an “email a friend” link is the lowest common denominator, but what about providing a reason for people to spend their time promoting you?

Amazon’s hugely successful Associates program gives it’s 900,000 participants worldwide a cut of the action worth up to 10% of every purchase made their your referral. Rival hosting companies Dreamhost and Bluehost’s affiliate programs have netted them thousands of advocates, posting on forums and hosting reviews across the web to spread the gospel of the service and earn some payola. And the age-old contest technique of giving extra entries for any friends you sign up has been given a twist for the digital age by the Orange Balloon Race.

However the best MGM initiative I’ve seen lately is World of Warcraft’s Recruit a Friend program.

Blizzard has sidestepped the slightly dirty business of paying cash to it’s members for spreading the word by providing relevant in-game bonuses instead. Besides the obvious free game time, more exciting is innovative ideas like the ability to level-up your friend and obtaining a unique zebra mount for your character. Anyone familiar with the game knows how prized the various mounts are, so it’s a really nice incentive.

I also really like that they further incentivize you to introduce your friend to the social aspect of the game and help them get started by offering triple experience bonus just for teaming up with them and slaying animated baddies together.

Blizzard has done an amazing job of designing the WoW game experience and is very in touch with it’s passionate user base, and so it’s no surprise it’s put the extra effort into designing an affiliate program that is both provides real unique value to members and is actually likely to work.

However, there’s no reason many brands on the web couldn’t do the same!

Have you seen any innovative branded MGM schemes recently? If so I’d love to hear from you in the comments or by email.

Orange RockCorps

RockCorps: Give 4 hours, get 1 ticket

RockCorps - RockCorps.jpg

Two of the key questions brand managers and agency folk are asking themselves right now are “how can my marketing dollar add value to my customers lives as well as shift core brand metrics” and “how can my brand be a good citizen of the world”.

This isn’t to say we’re all becoming altruistic. Rather, consumers are demanding more from brands and voting with their dollars. Brands wishing to remain competitive need to step up and deliver, or watch more forward-thinking competitors differentiate and pass them by. If the net product is that the world is filled with interesting and useful branded initiatives, then everybody wins. I suppose it’s a nice example of market economies ending up in the right place, eventually.

With that in mind, I love the idea of RockCorps.

Starting in the mid-90’s, the Greenbucks Foundation held free concerts in Telluride, Colorado with a twist: to get a ticket to the event, you needed to help clean up the space beforehand.

Seeing a bigger opportunity, in 2005 they partnered with Boost Mobile to take the idea nationwide: 4 hours of community service = 1 free concert ticket. By 2007, the RockCorps was hitting 11 cities in the U.S., and so far has involved 35,000 youth to generate 140,000 hours of community service.

It’s a brilliant idea, and a great way for a brand to differentiate in the extremely competitive music and cause marketing spaces, with a direct impact to the community. There’s also a long-term benefit to introducing youth to the idea of volunteering: according to the Guardian, 35% of the participants volunteered again within 12 months.

Orange RockCorps: Give, to get given

Orange RockCorps.jpg

Now for 2008, RockCorps is partnering with mobile operator Orange to bring the concept to the UK as Orange RockCorps. The first gig is on September 26th at the famed Royal Albert Hall and stars Busta Rhymes. To earn tickets, volunteers can help at one of 50 projects being organized around London, covering everything from school regeneration to helping the homeless.

There are times when partnering or sponsoring an existing initiative provides much less value to the brand than starting a grassroots initiative of your own. However, I think this partnership is a great move for Orange, and a fantastic example of brand marketing giving something of value both to people and their communities.

RockCorps was a proven model in the U.S. and was looking for brand partners to extend its reach into additional markets. Orange comes on board and uses it’s marketing clout and expertise to blow it out in the UK, and reaps the rewards. From a consumer’s perspective, they won’t know that it didn’t start with Orange in the first place, and even if they did I’m sure they wouldn’t care.

As appropriate for the audience, Orange has also delivered the full complement of social media supplements for RockCorps, including an Issuu newsletter, a MySpace page, a Facebook brand page, a Twitter page, and an Orange RockCorps Last.fm profile.

It’s interesting that the Facebook group has 1,316 fans while the Myspace page only has 79 friends. Given MySpace’s music focus and that they are a corporate partner for the program you would’ve expected the reverse. Goes to show the value in covering all your community space bases.

I’m not sure I qualify as “youth” any more, but I’m thinking of giving it a go. Anybody else in? If you still need convincing, here’s a timelapse of the first event in action:

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