Greg Hrinya, Associate Editor09.08.15
The Tag and Label Manufacturers Institute (TLMI) opened its 2015 Technical Conference with a keynote presentation from Terry Jones, founder and former CEO of Travelocity. As part of the conference’s theme, “Breaking Boundaries: Insight into Business Strategy and Technical Operations,” Jones discussed essential ideas for “Innovation.”
Dan Muenzer, TLMI chairman and vice president of marketing at Constantia Flexibles, welcomed a record-setting audience to the event, being held in the Swissotel in downtown Chicago, IL, USA, September 1-3. According to Muenzer, TLMI has an all-time high membership of more than 365 members, which is made up of both suppliers and converters.
Jones detailed how new technologies can impact the businesses of those in attendance. Technology is hitting every market, and the label and packaging industry is no exception. Today, more than ever, the consumer is dictating the “pulse of the industry.” Technology has given the consumer more options and opportunities, which ultimately creates empowerment. According to Jones, the power has shifted to the buyer.
“This new world is dissolving the line between sales and service,” said Jones. “We used to have sales and service, but now customers expect sales and service in every channel. In fact, customers don’t care about channels. We organize channels, but customers only care about solutions.”
Whereas competition between businesses was once labeled a “war,” Jones believes that the new experience is more like a “bar fight.” Customers have endless options available at their fingertips. Coke used to fight with Pepsi for market share, but the available channels make every brand a player in the space. Label companies can use connectivity to provide opportunity. With the Internet and social media, communication is a two-way street where buyer experiences can be shared. Consequently, social feedback builds trust. In reaching customers, suppliers and converters can utilize ever-growing mobile advertising, which is surpassing traditional web advertising.
The customer has changed, too. In days past, a music aficionado would purchase a record and, years later, a CD. Today, that industry has dropped more than 80% as customers bypass CDs for streaming options like iTunes. Newer and quicker channels are available to meet a listener's needs.
Therefore, suppliers and converters need a culture in place to meet changing demands. “You won’t move forward unless you create a culture of innovation,” said Jones. “Innovation is like baseball. In baseball, if you fail 70% of the time, you’re actually really good. You get a lot of chances in baseball, and that’s important because success isn’t permanent and failure isn’t fatal. We have to learn to experiment.”
According to Jones, the label industry can benefit from new ideas and risk taking. The main challenge is overcoming the fear of change and taking chances. But in order for the label industry to thrive in a changing world, the proper culture needs to be in place to support strategy. Experimentation is a must, and technique follows technology.
“If you don’t fail, you’re not experimenting enough,” said Jones. “Scott Cook said we should allow failure and harvest learning. For real innovation, being comfortable isn’t good.
“Encourage people to take risks and then kill projects, not people,” explained Jones. “We all have to take risks, and it’s easier now. We can prototype, we can do things smaller, but you can’t do it sitting in a chair. Changing culture is a contact sport; it’s hard.”
There is more than one right answer to a problem, however. In order to succeed, companies need focus and clarity on the end product. In addition to the right culture, the team and organization need to be in place to control the pace of change. “Old dogs can learn new tricks, but new dogs can learn old tricks, as well,” says Jones. “You need to mix it up. Negativity can wipe out innovation, and one person can make all the difference. You also need to keep teams small, since big teams don’t innovate. If you need more than two pizzas to feed your team, it’s too big.”
Jones also believes that organizations need to change their spending philosophy to match the evolving marketplace. The previous Golden Innovation Ratio broke down like so: 70% of a company’s investment went into core practices, 20% into adjacent practices and the final 10% went toward transformational ideas and technologies. The data shows, however, that 70% of profits come from transformational ideas and technologies. Data analysis can be used to gauge the success of instilled operations.
For larger businesses to find success, there are four principles: organization, location, staffing and funding. All four need to be in place for a company to keep pace. Customization has become the norm, and companies can often do more with less. For example, Jones was a driving force in selling the website Kayak.com for $1.8 billion to Priceline.
Ultimately, businesses need to do more with less while re-imagining rather than recreating. “Change is inevitable, but growth is optional,” Jones concluded.
For more pictures, click here for the slideshow.
Dan Muenzer, TLMI chairman and vice president of marketing at Constantia Flexibles, welcomed a record-setting audience to the event, being held in the Swissotel in downtown Chicago, IL, USA, September 1-3. According to Muenzer, TLMI has an all-time high membership of more than 365 members, which is made up of both suppliers and converters.
Jones detailed how new technologies can impact the businesses of those in attendance. Technology is hitting every market, and the label and packaging industry is no exception. Today, more than ever, the consumer is dictating the “pulse of the industry.” Technology has given the consumer more options and opportunities, which ultimately creates empowerment. According to Jones, the power has shifted to the buyer.
“This new world is dissolving the line between sales and service,” said Jones. “We used to have sales and service, but now customers expect sales and service in every channel. In fact, customers don’t care about channels. We organize channels, but customers only care about solutions.”
Whereas competition between businesses was once labeled a “war,” Jones believes that the new experience is more like a “bar fight.” Customers have endless options available at their fingertips. Coke used to fight with Pepsi for market share, but the available channels make every brand a player in the space. Label companies can use connectivity to provide opportunity. With the Internet and social media, communication is a two-way street where buyer experiences can be shared. Consequently, social feedback builds trust. In reaching customers, suppliers and converters can utilize ever-growing mobile advertising, which is surpassing traditional web advertising.
The customer has changed, too. In days past, a music aficionado would purchase a record and, years later, a CD. Today, that industry has dropped more than 80% as customers bypass CDs for streaming options like iTunes. Newer and quicker channels are available to meet a listener's needs.
Therefore, suppliers and converters need a culture in place to meet changing demands. “You won’t move forward unless you create a culture of innovation,” said Jones. “Innovation is like baseball. In baseball, if you fail 70% of the time, you’re actually really good. You get a lot of chances in baseball, and that’s important because success isn’t permanent and failure isn’t fatal. We have to learn to experiment.”
According to Jones, the label industry can benefit from new ideas and risk taking. The main challenge is overcoming the fear of change and taking chances. But in order for the label industry to thrive in a changing world, the proper culture needs to be in place to support strategy. Experimentation is a must, and technique follows technology.
“If you don’t fail, you’re not experimenting enough,” said Jones. “Scott Cook said we should allow failure and harvest learning. For real innovation, being comfortable isn’t good.
“Encourage people to take risks and then kill projects, not people,” explained Jones. “We all have to take risks, and it’s easier now. We can prototype, we can do things smaller, but you can’t do it sitting in a chair. Changing culture is a contact sport; it’s hard.”
There is more than one right answer to a problem, however. In order to succeed, companies need focus and clarity on the end product. In addition to the right culture, the team and organization need to be in place to control the pace of change. “Old dogs can learn new tricks, but new dogs can learn old tricks, as well,” says Jones. “You need to mix it up. Negativity can wipe out innovation, and one person can make all the difference. You also need to keep teams small, since big teams don’t innovate. If you need more than two pizzas to feed your team, it’s too big.”
Jones also believes that organizations need to change their spending philosophy to match the evolving marketplace. The previous Golden Innovation Ratio broke down like so: 70% of a company’s investment went into core practices, 20% into adjacent practices and the final 10% went toward transformational ideas and technologies. The data shows, however, that 70% of profits come from transformational ideas and technologies. Data analysis can be used to gauge the success of instilled operations.
For larger businesses to find success, there are four principles: organization, location, staffing and funding. All four need to be in place for a company to keep pace. Customization has become the norm, and companies can often do more with less. For example, Jones was a driving force in selling the website Kayak.com for $1.8 billion to Priceline.
Ultimately, businesses need to do more with less while re-imagining rather than recreating. “Change is inevitable, but growth is optional,” Jones concluded.
For more pictures, click here for the slideshow.