Moving from "digital" to "IT": Advertising agencies taking a step forward.

In our previous installments, we've discussed leveraging IT to advance marketing sophistication. Within that context, we introduced specific packaged solutions like marketing automation tools and SFA tools. Since introducing these packaged solutions, we've seen increased requests for marketing system development and business process redesign. This time, I'd like to discuss those topics.

Marketing System Development

Here, we define a marketing system as a "CRM system that leverages a company's core data and operational data." So, what distinguishes this from the CRM systems traditionally built by advertising agencies? It's not just about data generated from communication initiatives; it also utilizes data derived from the company's operational activities. The reason is the growing expectation that "operational data" obtained from a company's business activities can significantly contribute to marketing efforts.

So, what exactly constitutes operational data? For instance, in projects I've been involved with, energy companies have energy usage data per contracted household, while automotive, travel, and pharmaceutical companies have sales activity history data.

This data is often stored within corporate core systems or held by affiliates rather than the parent company itself. Utilizing it for marketing activities requires the marketing or business departments at headquarters to take the lead and build sophisticated system environments. For instance, in a project like the one shown below, which linked web log data owned by an automotive company's headquarters with sales activity history data held by dealerships, headquarters could enhance communication activities while dealerships could improve their sales activities.

Furthermore, regarding the operational data from the energy company mentioned earlier, the information systems department might generate algorithms to estimate attributes like household size and lifestyle patterns from the energy usage data of contracted households they manage. This could then lead to the construction of a CRM system designed to enhance the approaches of the sales and marketing departments based on these estimated attributes, creating a seamless, end-to-end solution.

Of course, during the system development phase, the marketing business requirements definition phase is handled by an advertising agency, while the actual development is undertaken by an affiliated SI company or a collaborating IT vendor.

Marketing Operations Design, Including B2B

In marketing operations, for companies to collaborate across departments, integrate real and digital customer touchpoint channels, and create customer experiences, the "marketing operational requirements definition" phase is crucial. This phase involves designing the processes and system requirements necessary for smooth operational execution.

The term "business process design" was rarely heard within advertising agencies. Conversely, it's commonly used by IT vendors. When developing a client's business system, understanding current processes, identifying bottlenecks and improvement points, and determining how to solve them through the system is fundamental. For advertising agencies, "business process design" has traditionally been a limited aspect of supporting clients' marketing operations.

However, as mentioned earlier, within the current trend of integrating the various functions of the marketing 4Ps, advertising agencies are now expected to go beyond just supporting "Promotion" functions. They are increasingly being asked to design the entire value chain for a company's 4P marketing operations. Therefore, the rise in consultations regarding business process design, system development, and operations is an inevitable trend.

The prime example, as mentioned in the previous article, is the growing demand for consulting on B2B sales process design and building the operational organization to support it. While corporate purchasing decision-making processes differ from those of individual consumers, the expertise in designing customer experience scenarios for "target: individual" cultivated in B2C can be applied in B2B as collective scenarios for "target: individuals with specific roles."

Recently, I've been working more with people outside the advertising industry and have been surprised by various things. For instance, while I was confident that the unique project management know-how possessed by advertising agencies was highly exceptional, it was also a skill somewhat dependent on individuals.

However, in the IT industry, these practices are systematized across the entire sector. Witnessing projects between companies progressing in an orderly manner under consistent, unified rules felt remarkably fresh. As I mentioned previously, while what's common sense in advertising can be nonsense to other industries, and vice versa, I believe the intersection of these differing norms between the IT and advertising industries holds the key to new marketing methodologies. Once I discover these methods, I will continue to share insights through this platform.