The IBM Institute for Business Value is comprised of more than 50 consultants who conduct research and analysis across multiple industries and functional disciplines. The institute has a worldwide presence, drawing on consultants in eleven countries to identify issues of global interest and to develop practical recommendations with local relevance.
According to Adweek, IBM’s researchers believe consumers are far ahead of ad agencies when it comes to digital media.
Saul Berman, IBM global leader, strategy and change consulting services, said agencies need to understand the value shift — and the parallels with what has happened in the music industry.
“It’s very hard to accelerate analog dollars into digital pennies,” Berman said. “Where will the money come from? The answer may be, ‘You’re going to make less money.’ The money may be going somewhere else in the value chain. The music industry didn’t lose money, the music companies lost money. Companies like Apple, which manufactures devices, make money, as [does] ring tone providers, retailers like Best Buy and concert promoters.”
The lessons to be learned, per IBM: Traditional industry players need to identify ways to monetize new consumer experiences before new entrants do; and there are significant new consumer opportunities-beyond just the value of content through value-added services, hardware and software offerings.
Hardware and software offerings that deliver brand value…hmmm, very interesting. I wonder what we will think of next.