Tag: GE

CMO Insights: Putting Innovation to Work – Part 2

Posted on by Drew Neisser

In part one of my interview with CMO Hall of Fame Inductee Beth Comstock, we talked about the innovative marketing campaigns she’s enabled as the CMO of GE. In this second part, we talk more about how personal passions and inspirations can translate into exciting campaigns and a culture of creativity. I was surprised by her background in biology but not by her sharp insights on what it means to be a marketing leader and how to helm innovative campaigns.

Drew: I couldn’t help to notice that you were biology major, which is not exactly the typical liberal arts path of a future marketer. Did you imagine yourself being a marketer when you were studying biology?

Not at all. I was torn between anthropology, psychology, and biology and I picked biology because I thought I wanted to go to medical school. But it turns out that biology is actually a great background for marketing. Something that Biology and Marketing have in common is that they both deal with the interconnectivity of each individual living thing to a broader system and that’s the world we live in. We are all connected. We can’t innovate without partnership. I think my study of ecology and my study of systems has trained me to think in a more systematic way and view the world – and certainly the business world – more systematically.

Drew: How important is it to you that you spend time managing personal brand activities on social media?

I think it’s important to do it to learn. Again, if you believe your mandate is to connect to outside of yourself and your company, you have to use the best mechanisms to do that. If you look at my Twitter for the past few months I haven’t been as active as I need to be, but I kind of go through cycles. I love it as my daily newsfeed and I love it as way to connect with people and ideas.

For me, LinkedIn has unearthed a passion. There are a lot of people who I actually want to connect with; people whom I want to come and work with GE or potentially our customers. LinkedIn is a really good place to do that. As a marketer, our jobs aren’t easy, so I try to use it as a way to share lessons and say, ‘hey, we’re all in this together’. We’ve all been in those tough situations. For me, it’s been a bit cathartic to just kind of share some of those talks.

Drew: I know you’ve talked about spending upwards of 25 percent of your time in Silicon Valley, talking to your GE team out there. That’s a lot of time relative to all the things that you have to do. How do you rationalize that investment relative to other ways of spending your time?

I would say that may be skewing a little bit more but we are investing a lot of the company in the Industrial Internet and in partnerships that help us get to be that market. Silicon Valley is kind of a metaphor for where innovation is happening. Just to give you an example, last week I was in Asia for a week and spent time in three cities in China and in Seoul, Korea. In every city I went to, 75 percent of my time was spent on GE or customer efforts, but I also made time to see what was happening in the marketplace. In Beijing, I spent time with the Xiaomi team. In Chengdu, I got to meet the Camera360 startup guys who have developed apps and in Seoul, I participated in a roundtable innovation discussion with some incubators and founders. I do it with my venture cap, but more importantly I do it to keep the company tethered externally. It’s partly my job but it’s also a metaphoric way to describe that kind of sense of where innovation is happening.

Drew: Looking ahead either in terms of trends that you’re seeing or just personal things that you would really like to get a handle on next year, what is on your priority list for 2015?

For the marketing mandate, I think just continuing to create stories that connect and scale. I think the journey is never done. I want to continue to find these different partners, media and ways to tell stories that connect them in scale. We don’t have a big budget so there’s a lot of ongoing pressure for us as a team to raise the bar. That’s always on our list.

I am a big believer in this idea of what we call the global brain. It’s this idea of using digital connections to tap into people who don’t work for us. It’s called open innovation but you can also call it a digital workforce. There are a lot of ways you can get people who have insights and capabilities to do work with your company and I think it will continue to take off.

We have a culture of speed and simplicity and kind of delight in things that can explain what we do at GE. I feel very committed to being a part of that in this coming year. The discovery agenda is still looming large. By the end of 2015, I hope to find three new trends of things that are just absolutely exciting.

CMO Insights: Putting Innovation to Work – Part 1

Posted on by Drew Neisser

What does it take to get inducted into the CMO Hall of Fame? Infinite curiosity and, apparently, some ecological know-how. Beth Comstock of GE is a rarity in the clan of CMO’s, an innovator who doesn’t try to come up with the ideas herself, a leader who seeks insights from startups and a explorer who thinks “the journey is never done.” Oh and did I mention she works for a company that sells massively complex machines yet as Beth says, “We’re on a real mission to humanize technology.”

In this first part of our interview, we talk about how to leverage trends and the kind of dedication needed to produce big ideas — and big results!

Drew: How important is it to be a leader who comes up with an idea versus having the ability to build out an idea from your team and build a culture where the ideas are sort of percolating and coming up to you?

I think early on in my career I expected that as a leader, a manager of a team, that I was supposed to come up with the ideas, that’s what you did as the team leader. I started realizing that it put a lot of pressure on me. I also started to realize that the ideas actually weren’t that good. I think there is a kind of a humble recognition you get when you are an innovation junkie like me but also just as a leader, that ideating is better when it’s a team sport. I have learned that there are times when you have to go on your own to think through a problem and then there are times when you need other people to react, make it better.

I think my process is that I like to act like a sponge. I think part of my job and just who I am is to immerse myself externally outside of GE for ideas and look for themes and trends. If I see something interesting twice I ask, ‘Is that a coincidence?’ If I see it three times I go, ‘Ah, this is a trend’ and try to draw those lines. I think it’s my job to do that and then bring it back into the organization and say, here’s a thought starter. How can we innovate, ideate around that? So that’s sort of very loosely my process.

Drew: What are some of the hardest sales you’ve had to make or times where you had to be persistent and not take no as an answer?

When I was at NBC, I was trying to pitch what is now the NBC Experience Store. It’s been around for 16 years now and I worked really hard on that one. Bob Wright turned me down many times for a couple reasons. One, the idea just wasn’t ready and he was sending me away to make it better, but also, he was testing my commitment to it. Was I really going to back this idea? So that was a very formative experience for me.

Since starting at GE, I’ve had this passion for digital health and what I think it could mean to GE. Up until recently, I had a hard time articulating it. The space hasn’t taken off, and it’s only really been this year that we’ve been able to bring the right forces together as a great team and venture into it. So that’s probably my biggest, longest running example of something that I felt like I was pushing for six years and it’s just now broken through.

Drew: Can you talk about the strategy behind “The Boy Who Beeps” Ad and what message you wanted to send? And in general, do you continue to see television playing an important role in the GE story?

David Lubars who is the creative director of BBDO just had a lot of passion for that ad. I think it means a lot when you’re partnered to real passion and he was very passionate about this for good reason. BBDO has been our agency for 90 years. They just know us so well. In some ways they know us better than we know ourselves, which is why we keep hanging around together.

The Industrial Internet is a very big company strategy and priority. Big data is still confusing, it’s kind of scary and people are not entirely sure what it means when machines talk to other machines. We were trying to send the message that technology is headed toward a good purpose. It’s about the humanity of technology, rather than just getting excited about technology for technology’s stake. We’re on a real mission to humanize technology. Most people can’t see the technology we make, so we have to use a lot of metaphors.

As for the role TV plays in telling GE’s story, I think it depends on the objectives and the business mission for any given campaign or effort. For most of us, I think TV does have a role. With examples like “Boy Who Beeps” or one we did with the Olympics earlier this year, “My Mom Works at GE”, you need the space. TV provides a storytelling grandness with some of these big signature events. We do a lot around these kind of signature efforts and there is room for big storytelling to be done well.

A rule I have observed just in working within the digital space is that the size of these markets gets bigger and slices gets smaller. So TV won’t have the big slice of the audience that it once had, but it doesn’t mean it’s not still important.

Drew: In regards to some of the ideas or innovations that you have been able to bring to bear in the organization, have any of those had an advantage in the sense that the marketing opportunities are baked into the idea?

Yes. I think one of my earliest examples of this and one that I still think stands the test of time was the development of ecomagination. It’s a cute name, but it wasn’t just a cute little effort. It was a very serious intention to align our technology to where the market was going. Our customers wanted more energy efficient technology. We saw that in every industry and in every segment where we do business. So that was a clear opportunity to invest in a certain technology tethered to where the market was going: renewable, clean energy and efficiency. We recognized the need for partnerships that supported that mission, and then to hold ourselves accountable.

To date, we’re tracking about $180 billion of eco-generated sales, billions of dollars of investments in new eco-friendly spaces and a host of partnerships that have made us faster and better. To me, that’s market-based innovation. It’s kind of a glue.

That’s just one of our successful processes. There have been many, many times where that hasn’t worked so well. I’ve given you one example of success but I don’t want to make you think we were nirvana here, because we’re not.

CMO Insights: Digital Innovations

Posted on by Drew Neisser

Beth ComstockSmall brands innovate out of necessity. Their very survival depends on finding not just a fresh solution to a customer problem but also a distinctive means of getting their story out there.  Fewer naysayers correlates to fewer entrenched ways of doing things equals faster pivots and a natural openness to experimentation.  For big brands, however, innovation is a triumph of determination over institutional inertia.  Or think of it this way, organizations are like planets–the bigger they get, the stronger the pull towards the center.

In this scenario, as one of the largest corporations in the world, GE should have the gravitational pull of Jupiter, crushing innovators before they can take a single step.  But guess again, big bias breath! From a marketing perspective, GE has been on the forefront of digital innovations for the last decade putting many smaller companies to shame.  Curious about how this was possible and thanks to an introduction by The CMO Club, I was delighted to be able to catch up with Beth Comstock, GE‘s CMO (who won The CMO Award for Leadership).  There is nothing more I could say that would be as near as insightful as the counsel Beth provides below.

Drew: For several years now, GE has been ahead of the curve when it comes to experimenting with new channels.  What is the strategy behind all of this experimentation? Is the medium essentially the message?
Beth: GE’s a leading technology company so we believe it important to be aligned with leading edge technology channels. The other thing to consider is that our audiences expect GE to be where they are – they aren’t going to always come looking for us.  We like to experiment as a way of learning, but our efforts have to align to our goal of connecting with our target audiences, which are largely industrial technologists and enthusiasts. And we’ve adapted our strategy around  being micro-relevant – meaning targeting the right audience in the right way. It doesn’t have to be a big audience, just the right one.

Drew: As the CMO, Is it a mandate of yours that GE explore all the newest coolest channels and if so, how are you finding them?
Beth: We have an awesome media team that identifies themselves as digital explorers.  We also take risks with new ideas and small companies as a way to learn and as a way to augment more traditional plays.  I’m a big believer in  carving out a percentage of your budget to develop new models.

Drew: Naysayers struggle to understand how a photo contest on Instagram or a promotion on Pinterest can help you sell GE products like aircraft engines. What do you say to those folks?
Beth: Selling a jet engine is a complicated sale.  Many people influence the purchase decision. And since GE is a company that traverses multiple industries, pretty quickly you’re targeting decision makers across a wide range of the economy and functional roles of business, which is why we believe in the importance of building a vibrant umbrella brand.  In addition to those who buy our products, we target enthusiasts, recruits and GE retail shareowners who want to experience GE in various dimensions.  Industrial technology is exciting, yes, even fun… and some of these outlets allow us the opportunity to open up and express ourselves in new ways.  People want to see that you are approachable.

Drew:  How has your role as CMO evolved over that past decade?  With the advent of “big data,” are you spending more time on analytics that you used to?  
The role of CMO has evolved from defining what marketing can do to delivering it.  I’m a  big believer in marketing’s role as developing markets, and new models. We like to think our contributions are in mindshare, marketshare and margin.  We’ve tried to make marketing a driver of commercial innovation that sits alongside our technical innovators to deliver a range of value to GE customers.  Big data is a perfect space for marketing.  A customer wants to run their business better not just have lots data – those insights help focus the data scientists on analytics that matter most.

Drew:  GE is primarily a B2B company yet you seem to act a lot more like a B2C company in terms of creating emotionally-rich consumer-friendly communications.  Any thoughts on why that is?
Beth: Since when does B2B have to be boring to boring?  Business people are people too. We are emotional beings, we don’t just rely on logic when it comes to business decisions.  Good marketing is about making a connection and delivering perceived value. Period.  In some ways, business marketers have an advantage in that they are closer to their customers and in theory should be more responsive and intuitive.

Drew: Content marketing is suddenly a hot buzzword in the industry.   Are you investing more resources in content development?  
Beth: We’ve been on a path as a content producer for several years now. We’ve widened our definition of content to include data, experiences and yes, emotional connection and even humor.  Content has to be useful and relevant to be effective.  We’ve invested in a range of skills like data visualization and user interaction design as a way to drive content that is engaging and relevant. The marvels of science, engineering and manufacturing offer good fodder for content, and we’re constantly seeking out storytellers who get as excited about this as we do.

Drew: Marketing seems to be getting increasingly complex in terms of ways to spend and ways to monitor. Has it gotten more complex for you and if so, how are you dealing with that complexity? Yes, it is more complex – we have a multitude of outlets and a range of content types to consider.  You need good partners, room for experimentation and a good dose of curiosity.  Trust me, it’s not about the size of your budget, it’s about the ability to use complexity to amplify your efforts, not stifle them.

Drew: Innovation is a sexy word but not as sexy to a CEO as ROI.  Have you been able to link your innovative marketing activities to the kinds of business metrics favored by CEOs?  
Beth: Innovation can’t just be about fun ideas or wonky theories.  Innovation means new methods that yield results.  The challenge is often that time, trial and error are required to get to scale.  I’m a big believer in pilot projects to create proof points and staged development to make sure you get results.  Innovation without process is chaos. Trendspotting without translation leaves you empty.

Drew: Besides your efforts on Pinterest and Instagram can you speak about another recent innovative program that you are particularly proud of?
Beth: I’m especially proud of the work we are doing to help define what the industrial internet can mean to business productivity. It’s a new category for business, not just GE. We’ve put a lot of science and analysis into connecting with our customers and new tech partners in this area.  We’re doing much more in open innovation – meaning using digital communities to drive new methods at GE.  A recent example is a data science challenge with Kaggle that is shaving off minutes and fuel from flight landings – something thought unattainable.  And we’re having fun with Vine, having had a successful #SixSecondScience effort this summer that shows how science can be fun and connects with tech enthusiasts.

Drew: How do you stay close to your customers with so many different types of customers in so many countries?  
Beth: You have to live with them, analyze them, listen and empathize with them.  This means putting good marketing people on the ground in  markets around the world and more importantly, helping engineers and other business teams understand that marketing skills can be added to their jobs too.

Drew: Finally, I’ve heard it said that marketing is everything and everything is marketing especially when it comes to the customer experience. Do you agree with that notion and if so how have you extended the boundaries of your job beyond the normal purview of the CMO?   
Beth: I’m a big believer in Peter Drucker’s view that without a customer there is no business.  That is a rallying cry for marketing if I’ve ever heard one. And I think business leaders who believe that marketing is just about advertising and go-to-market communications miss out on all the market-making skills we have to offer.  I do believe the new frontier for marketers is holistic customer experience.  We haven’t cracked it yet but I’m looking forward to seeing how we can – and I think digital technology is taking us there very fast.

Green in Green

Posted on by Drew Neisser

One of the nice things about being on vacation is that you actually have time to read a couple of newspapers cover to cover. That was particularly rewarding today as I devoured both the New York Times and the Wall St. Journal. If you get a chance, check out the Journal’s special section called Eco:nomics, that contains a series of interviews they gathered at conference by the same name. The interview’s with Jeffrey Immelt (CEO of GE) and H. Lee Scott, Jr. (CEO of Wal-Mart) were particularly instructive. While both of these companies were quick to get on the green bandwagon, neither are prepared to call it missionary work. Instead they see it simply as good business. Here are two telling quotes:

JEFFREY IMMELT: I don’t think that CEO hobbies have any role in running companies. I’m an investor, I’m a capitalist and I’m a businessman. So I believe that I could generate earnings for my investors through technology. There’s no percentage for any CEO in the world to run his or her business thinking that there are not going to be carbon caps someday. Because the day it becomes law, you’re five years late. And you either get out ahead of these things or you get stomped by them.

H. LEE SCOTT JR.: It’s consistent with what we say our purpose is, and that is saving people money so they can live better. We looked at what Sam Walton started and how he developed the company. It was by eliminating waste, bringing in efficiencies. And by thinking about sustainability from our standpoint, it really is about how do you take cost out, which is waste, whether it’s through recycling, through less energy use in the store, through the construction techniques we’re using, through the supply chain. All of those things are simply the creation of waste. We found it’s consistent with the entire model we’ve had since Sam opened the first store.

Neither of these CEO’s are seeking sainthood by going green. Instead, as Emmelt put it, they see “green in green.” This sort of honesty is refreshing and avoids the pretense so often found in green-related marketing. While there is room for altruism in this world, I’m suspicious of any public company with profit-driven shareholder obligations that claims it is going green for any reason other than it is simply good business. Businesses that do badly by doing good won’t stay in business. Businesses that do well by doing good, in this case by leading the green revolution, are to be commended with higher stock prices not Nobel Prizes.

 

Ethical Green Marketing?

Posted on by Drew Neisser

One of the SIG groups I belong to posed an interesting question, “How do you ethically include green in your marketing?” Having wrestled with this question quite a bit on this blog, I offered the following response:

No company can afford not to consider how they could be more green. Employees want to work for companies that are green. Consumers want to buy from companies that are green. There is money to made from selling green products (i.e. GE windmills) and dollars to be saved by making your operations greener (i.e. Wal-Mart). That said, beware the “green” backlash. Before spending any marketing dollars selling your greenness, make sure your story is solid and your efforts transparent. GE’s ecomagination pledge is a brilliant example of how to do it right. If you choose to tout your greenness, expect watchdog organizations to police all of your activities and uncover less than green activities. This was the case with BP (as I wrote about back in August) who wanted to dump some toxins in the Great Lakes and ended up finding a greener option after watchdogs complained.

Bottom line–before you talk about being green make sure you are really doing everything to be green. Track your progress every step of the way and let your employees and the public know what you are doing. Benchmark your consumables (electricity, oil, paper, etc.) and overall carbon footprint if you can and then set goals for reducing, reusing and recycling. It’s not easy being green and don’t make it sound like it is. Wal-Mart is practically a pioneer in green marketing, yet their CEO Lee Scott, Jr. admitted publicly last week that they “weren’t really green.” This is quite an amazing statement from a company that dramatically reduced its energy consumption (just by changing the lighting in every store) and is driving its entire supply chain to reduce packaging and overall shipping costs. The point is that those that are trying to be green realize how truly difficult it is to cover every base. Under-promising and over-delivering green is a good starting place for any ethically-minded company.

Addendum 3/18 3:45pm

As companies increasingly try to out-green each another, Greenwashingindex.com aims to keep marketers honest. Here’s a brief intro from their website:

Welcome to the Greenwashing Index — home of the world’s first online interactive forum that allows consumers to evaluate real advertisements making environmental claims. “Going green” has become mainstream for businesses large and small — and that’s a good thing. What’s not so great is when businesses make environmental marketing claims that can be misleading. The intent of this Web site is to:

  1. Help consumers become more savvy about evaluating environmental marketing claims of advertisers;
  2. Hold businesses accountable to their environmental marketing claims; and
  3. Stimulate the market and demand for sustainable business practices that truly reduce the impact on the environment.

GE WHIZ, MARKETING FOR GOOD WORKS

Posted on by Drew Neisser

In marked contrast to his more famous predecessor Jack Welch, about three years ago, Jeff Immelt set about to transform GE from a huge conglomerate into a huge conglomerate that did well by doing good. Here are the four “primary pledges” of his ecomagination plan that at the time seemed like pipe dreams:

  • In R&D, the company has pledged to more than double the $700 million it spent researching cleaner technologies in 2005, to $1.5 billion by 2010.
  • GE also seeks to generate at least $20 billion of revenue in 2010 from products and services that “provide significant and measurable environmental performance advantages to customers.”
  • The third “ecomagination” commitment calls on GE to improve its operations’ energy efficiency 30% from 2004 levels by 2012.
  • Finally, GE is planning to keep the public fully informed of these efforts through various means, including its website and advertising.

Three years later, GE is on track to deliver on all of its pledges, generating a reported $15 billion in revenue from “green” products in 2007 and decreasing internal energy consumption ahead of goal. This is a text book case of thinking big and executing bigger. The ecomagination program has way too many legs to cover here so let me just call your attention to two experiential components.

The first is an online game called GeoTerra that GE launched about two years ago that continues to draw a robust audience. Here’s what Future-Making Serious Gamer had to say about it:

Geoterra is an interactive GE-branded experience that presents game-like attractions that allow players to enhance the well being of an island’s inhabitants and environment through the diversity of GE’s ecomagination products and their ability to create a greener planet.

The challenge of the game revolves around the player’s ability to interact with three eco-challenges and not only score as high as possible, but recognize the best use for each of the GE products and effectively utilize them on the fictitious island. Optimal performance results in a higher Geoscore.

The second is the “imagination center” that is being built right now in Beijing for the Olympic Games. According to the New York Times report today, this two-story building in the middle of the Olympic Green is “half fun house, half museum.”

The exhibits are aimed at adults, with enough just-for-fun features so that a visiting executive need not feel guilty about dragging along the whole family. In the center’s wind energy room, children — or any adult whose inner child is clamoring for attention — can wave their arms to make digital projections of objects sway in the wind they create. In the water purification room, they will walk on a video projection of water, with each step creating ripples.

Meanwhile, GE is building windmills around the world faster than you can say Don Quixote. Here’s to dreaming big.