Connected by Design Seven Principles for 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 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.

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

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.