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Connected by Design: Seven Principles for Business Transformation Through Functional Integration

ISBN: 978-1-118-85820-2
256 pages
May 2014, Jossey-Bass
Connected by Design: Seven Principles for Business Transformation Through Functional Integration (1118858204) cover image

Description

In a world of fierce global competition and rapid technological change, traditional strategies for gaining market share and achieving efficiencies no longer yield the returns they once did. How can companies drive consumer preference and secure sustainable growth in this digital, social, and mobile age?

The answer is through functional integration. Some of the world's most highly valued companies—including Amazon, Apple and Google—have harnessed this new business model to build highly interactive ecosystems of interrelated products and digital services, gaining new levels of customer engagement. Functional integration offers forward-looking brands a unique competitive edge by using transformative digital technologies to deliver high-value customer experiences, generate repeat business, and unlock lucrative new business-to-business revenue streams.

Connected By Design is the first book to show business leaders and marketers exactly how to use functional integration to achieve transformative growth within any type of company. Based on R/GA's pioneering work with firms at the forefront of functional integration, Barry Wacksman and Chris Stutzman identify seven principles companies must follow in order to create and deliver new value for customers and capture new revenues. Connected By Design explains how functional integration drove the transformation of market-leading companies as diverse as Nike, General Motors, McCormick & Co., and Activision to establish authentic brand relationships with their customers, enter new categories, and develop new sources of income. With Connected by Design, any company can leverage technological disruption to redefine its mission and foster greater brand loyalty and engagement.

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Table of Contents

Introduction 1

Part One the Model 21

1. The Growth Challenge of the 21st Century 23

Principle One: Utility is relevance

2. The Digital Revolution 43

Principle Two: Context is king

3. The Ecosystem of Value 69

Principle Three: Synergy captures customers

Part Two Mastering the Model 95

4. The Art of the Possible 97

Principle Four: Reimagine value creation

5. The Digital Service Launchpad 125

Principle Five: Redesign value delivery

6. The Drivers of Connected Growth 151

Principle Six: Redirect toward value capture

7. Cultivating an Ecosystem of Value 179

Principle Seven: Lead like the world depends on it

Notes 203

Acknowledgments 223

About the Authors 229

Index 231

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Author Information

BARRY WACKSMAN is executive vice president and chief growth officer at R/GA, a full-service digital advertising and marketing consultancy. During his 15 years with R/GA, Barry has helped shape the vision of the agency and advised dozens of Fortune 500 companies on digital strategy. He lives in New York with his wife and son.

CHRIS STUTZMAN is managing director of the business transformation practice at R/GA, where he helps companies transform their businesses for the digital age. Prior to joining R/GA in 2012, he was a vice president and principal analyst at Forrester Research. He lives in New York with his wife and son.

For more information, please visit www.rga.com.

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Reviews

“Every now and again a book comes along that expands your mind, challenges conventional wisdom, and is truly disruptive—a precursor to progress. Connected by Design is such a book. Functional integration has enormous relevance as an organizing principle way beyond marketing. I urge you to read the book, be disruptive, and unleash the power of connectedness. It can only do you good.”
—Keith Weed, chief marketing and communication officer, Unilever

“Barry Wacksman and Chris Stutzman have discovered a new secret formula for growth that re-imagines how your company creates value: functional integration. Organizations must embrace the disruptive change of functional integration in order to grow in the new world order of consumer engagement.”
—Joseph V. Tripodi, chief marketing and commercial officer, The Coca-Cola Company

“To be a chief marketing officer today means also being a chief technology officer and chief experience officer. Connected by Design uncovers the business model at the heart of this change, offering valuable examples, tips, and principles for putting the model into action. It’s a must-read for anyone working in marketing at a major brand today.”
—Marc Speichert, global chief marketing officer, L’Oreal Group

“Barry Wacksman and Chris Stutzman have taken a topic close to the hearts of many—design—and shown how the world's leading companies have successfully integrated it into their business models. Connected by Design is that rare book that can help unify the disparate parts of a big company, from marketing to sales to product development.”
—Beth Comstock, senior vice president and chief marketing officer, GE

"I see companies struggling every day to stay relevant in their consumers’ busy lives. Connected by Design maps out how companies like Nike, Google, and Apple have excelled in engaging consumers in the digital age while driving sales growth.  It is an essential read for any brand leader looking to succeed in today's mobile, social, omnichannel world.”
—Jim Stengel, author, Grow, and former global marketing officer, The Procter & Gamble Company

“Functional integration is the defining business model of our day, and Connected by Design captures the essence of this emerging model and how to apply it. Those who want to differentiate and find new ways to grow should find this book extremely helpful.”
—Michael Roth, chairman and chief executive officer, Interpublic Group

“R/GA has remained ahead of its competition by reinventing itself, and R/GA’s newest transformation is designed to help brands achieve functional integration. Connected by Design outlines how brands like Nike, Google, Amazon, Apple and McCormick have grown with functional integration and why you’ll want to consider it for your brand.”
—Rick Boyko, former director, Virginia Commonwealth University Brandcenter; former chief creative officer, Ogilvy North America

“If you have ever wondered about the secret to the enormous success of companies such as Apple, Google, Nike, and Amazon, Connected By Design is for you. This engaging and readable book explains the functional integration business model of these companies . A must-read for understanding how to survive and grow in the dynamic and complex age of networks and ecosystems.”
—Jerry Wind, The Lauder Professor, The Wharton School

“Brands that aren’t rethinking how to connect their products, services, and communications are leaving brand equity on the table. Functional integration is a great playbook for creating and capturing brand value in the digital age.”
—John Gerzema, chairman and CEO, BAV consulting, and author, The Athena Doctrine

Connected By Design represents the business course you never took, but should have, and the design class you never had, but now wish you did. It prepares your mind and way of thinking for this high-speed world, where more and more value is delivered in the form of digital experiences. Barry Wacksman and Chris Stutzman take you deep into leading companies and share their guiding principles.”
—Keith Yamashita, chairman, SY/Partners and SY/Products

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Press Release

May 12, 2014
Seven Principles of Business Transformation Through Functional Integration

In a world of fierce global competition and rapid technological change, traditional strategies for gaining market share and achieving efficiencies no longer yield the returns they once did. How can companies drive consumer preference and secure sustainable growth in this digital, social, and mobile age?

The answer is through functional integration. Some of the world's most highly valued companies—including Amazon, Apple and Google—have harnessed this new business model to build highly interactive ecosystems of interrelated products and digital services, gaining new levels of customer engagement. Functional integration offers forward-looking brands a unique competitive edge by using transformative digital technologies to deliver high-value customer experiences, generate repeat business, and unlock lucrative new business-to-business revenue streams.

Connected By Design; Seven Principles of Business Transformation Through Functional Integration by Barry Wacksman and Chris Stutzman of R/GA is the first book to show business leaders and marketers exactly how to use functional integration to achieve transformative growth within any type of company. Based on R/GA's pioneering work with firms at the forefront of functional integration, Barry Wacksman and Chris Stutzman identify seven principles companies must follow in order to create and deliver new value for customers and capture new revenues.

Connected By Design explains how functional integration drove the transformation of market-leading companies as diverse as Nike, General Motors, McCormick & Co., and Activision to establish authentic brand relationships with their customers, enter new categories, and develop new sources of income. With Connected by Design, any company can leverage technological disruption to redefine its mission and foster greater brand loyalty and engagement.

See More
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