'Functional Integration' - Advertising's Hot New Buzzword. Plus: Why No TV Nets at Cannes Lions?

Functional integration the cohesive organization of people with diverse functional skills products resources and tools who collaborate to accomplish highly focused tasks The Cannes Lions International Festival of Creativity last week attracted more than double the number of American attendees 1400 compared to 700 in 2010 Missing again this year were executives from the major legacy TV and print media While Google Yahoo AOL Facebook Microsoft Twitter Apple Vevo and most digital media were well represented onstage and at hosted events US television networks and leading magazine companies sent a message to the thousands of agency and client executives they simply do not consider the international gathering worthy of their time or attention Most of the agency holding company executives CEOs including Michael Roth Martin Sorrell John Wren Miles Nidal and Maria Louisa Francoli who chaired this year39s event were actively involved in the Cannes Lions gatherings that often lasted well into the wee morning hours Nick Brian Alan Cohen Laura Lang Irwin Gotlieb Daryl Simm Page Thompson Mainardo de Nardis John Partilla Tim Spengler Andrew Maclean Jackie Kelley Charles Coutier Dominic Proctor were just a handful of the hundreds of influential agency leaders who interacted morning noon and night with representatives from media companies amp8211 usually accompanied by senior client executives Many major advertiser clients of the national TV and magazine media are represented at Cannes yet their leading traditional media partners leave the territory to digital competitors While the nets could argue that the Cannes Lions fall right into what could be a key Upfront negotiating period even the digital execs of the networks fail to appear And magazine companies have no excuse Paul Caine of Time Magazines was there as was Phil Kent CEO of Turner Broadcasting CBS Radio39s Last FM represented by CBS Radio executive David Goodman and Vevo hosted a late night party and concert so even radio has entered the frayAt the Vevo panel session among the best attended during the weeklong conference producer and rap artist Pharrell Williams reinforced the importance of marketers to the future of the music and entertainment business and vice versa sharing insights with Vevo president Rio Caraeff Digitas CEO Laura Lang and Universal Music president Rob Wells moderated by Jack Myers AOL39s Kristin Kovner shared her observations as AOL39s unofficial conference blogger here accompanied by an excellent video outlining the state of the music industry produced by DigitasFor me the most valuable among many main stage talks and panels was the explanation by RGA chief Bob Greenberg and RGA39s chief growth officer Barry Wacksman of their vision for the future of their agency a member of the Interpublic Group of Companies IPG quotBrands will be defined by their missionquot said Greenberg identifying Nike as an example quotAll companies will pursue this model through 39functional integration39 instead of the typical vertical or horizontal integrationquot Functional integration has many definitions including a handson form of tactile kinesthetic communication a collection of results in mathematics and physics an outdated Microsoft practice for predicting results and quota tool useful to study general diffusion processes quantum mechanics and quantum field theoryquot Greenberg believes organizations will shift from a productcentric focus to an emphasis on services integrated with products and centered around functionality including experiences events and causesI interpret functional integration asthe cohesive organization of people with diverse functional skills products resources and tools who collaborate to accomplish highly focused tasks As they gain experience they educate their functional colleagues and pollinate the organization with enhanced knowledge capabilities and best practices for future initiatives Confusing perhaps but consider breaking down the traditional silos within your organization Instead create small highly energized groups with functional skills and the tools required to support them Individuals from these teams spread throughout the organization providing their services as required relevant and valued As these team members return from each engagement they bring added knowledge and experience with them to share with their colleagues thereby spreading best practices in every functional area throughout the organization If a media sales organization is targeting a specific client bring together the resources required to develop and implement a program and constantly update and upgrade the group as appropriate to the client39s needs An agency developing a new client strategy might pull from more than 100 functional areas during the development process and other groups for implementationquotThis will require complete organizational remodelingquot Greenberg believes quotIn 2000 our emphasis was on relationship marketing digital and ecommerce In 2006 it became about analytics social media mobile and retail In 2011 it39s brand development data visualization product innovation and live eventsquot For 2013 Greenberg believes his organization will require global consulting capabilities built around functional resources in hundreds of major and micro marketing related categories And he adds quotin a time of procurement we need a new pricing modelquotGreenberg and Wacksman are engaged in a large scale organizational remodeling that assures global scale for clients and builds on the quotimportance of context in creating teams for functional integrationquot Their goal they commented quotis to utilize enabling technologies for management tracking collaboration diversification integration and communicationsquot The organizational future Greenberg added depends on video for live conferencing streaming and meetingsAn overview of RGA39s global expansion model was outlined by Joe Mandese of Mediapostamp160quotThere is no really global digitally centered agency out therequot Greenberg asserted He says to get there will quotrequire a different organizational structurequot than any major digital shop has today including RGAamp8230 Wacksman wrapped up the session concluding that the new global organization may change the way RGA defines itself quotWe really have no idea of what to call ourselves anymore just like it is impossible to describe what Apple is anymorequot he said You are receiving this email as a corporate subscriber to Jack Myers Media Business Report Redistribution in any form except among approved individuals within your company is prohibited As a subscriber you have full access to all archives and reports at wwwjackmyerscom If you require your ID and password contact maryannjackmyerscom

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'Functional Integration' - Advertising's Hot New Buzzword. Plus: Why No TV Nets at Cannes Lions?

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'Functional Integration' - Advertising's Hot New Buzzword. Plus: Why No TV Nets at Cannes Lions?

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