Driving innovation through collaboration is no longer a unique differentiator, but a customer-mandated business requirement, as Liz Miller, VP of programs and operations at the CMO Council, tells IMT.

Establishing collaborative networks is fast becoming a necessity for remaining competitive in today’s business environment. But what does collaboration specifically entail, and where do business owners begin in their attempt to boost their connectivity?

Liz Miller, vice president of programs and operations at the Chief Marketing Officer Council and the Business Performance Innovation Network, talks to IMT about these and other collaboration issues in this Expert’s Corner.

IMT: The definition of “collaboration” continues to elude many business leaders. What does it mean to collaborate, and why must companies collaborate to innovate?

LM: If you look up the meaning of the word “collaborate,” the most amusing definition when translated into business terms is “to cooperate, usually willingly, with an enemy nation.” The concept of “working together” gets thrown out the window as critical stakeholders in the collaboration network often view their partners with a sense of rivalry or outright hostility.

What may be easier to comprehend is what collaboration is not, versus what it is. For example, collaboration is not decision by committee: it is not meant to slow or stymie the process, but rather aggregate the expertise and insights from across an organization, partner network and customer base to develop impactful, immediate and targeted customer experiences and go-to-market strategies. Collaboration is also not a workflow monitoring system or supply chain dashboard. It does not mean developing a strategy and then gaining stakeholder buy-in: it is leveraging insights and feedback from all points of business engagement to better develop actionable strategies.

In today’s fast-moving, fully connected and always-on digital world, consumers are no longer willing to accept breakdowns in their experience. They simply do not care, and will not understand, the excuse of warring internal factions or lack of connectivity between vendors as a reason they can’t purchase the exact product the moment that they want it. Without collaboration driving innovative services, products and experiences that meet or exceed a customer’s shifting expectations, businesses will see that customers will migrate to organizations who do offer that optimized experience. Collaboration to drive innovation is no longer a unique differentiator, but rather a business requirement, mandated by the customer.

IMT: The BPI Network and CMO Council’s Collaborate to Innovate program focuses on increasing connectivity between business processes, decision-making and customer relations. How much of these integration efforts depends on networking technology?

LM: Connectivity between internal and external organizations will depend on the availability of technologies and networking capabilities and the on-boarding of new technologies and solutions like mobile integration to best service the needs of the business, partners and customers. But, according to a Collaborate to Innovate survey, executives are aware that there is a breakdown in the technology infrastructure that is critical to bind a business collaboration network together:

• Only five percent of respondents say they currently have end-to-end data and process integration across their partner networks, although 51 percent report at least some level of integration with select partners; and
• Only 30 percent of respondents say they are effective in sharing customer data and insights with partners to enable innovation.

IMT: Establishing a collaborative business network is becoming crucial in today’s complex and widespread supply chain, but some business owners may not know where to begin. What do you consider the top priorities when moving toward a collaborative model?

LM: Honestly, one of the first requirements is to identify the key stakeholders who will contribute to the collaboration network. Understanding who will contribute actionable insights to enhance the development of an end-to-end customer experience is critical. To start, gather answers to the following:

• What Business Collaboration Network (BCN) exists today for your organization and how is it leveraged to create specific customer solutions?
• Which companies are filling the roles in your BCN?
• Does your company serve as the hub and orchestrator of your BCN?
• Are you engaged as an orchestrated partner of another company’s BCN?
• Who in your BCN is also in your competitors’, and do you understand how your own network compares to theirs?

IMT: Are there best practices in collaboration that small to medium-sized companies should consider?

LM: Collaboration requires data and the open exchange of insights…anyone, from small company to large enterprise can facilitate this process regardless of budget. For a small business, the determination may be that rather than being at the center of a BCN, they may be a critical spoke in the network, allowing the business to focus on the needs and requirements of working with the hub of the network.

IMT: Why are so many companies struggling to collaborate with partners, particularly in the way they share and integrate information across their supply chain networks?

LM: Technology is often the greatest barrier. Consider that some 64 percent of respondents say they have either no ability or an unsatisfactory ability to extend and leverage their internal systems to selling and service partners. Often, the challenge is integrating numerous technology solutions into a single backbone that connects and integrates data across the entire BCN.

IMT: You recently co-authored a report explaining that many marketers fail to fully appreciate supply chain costs, such as warehousing and transportation expenses. What are some important details about the supply chain you believe every marketer should know?

LM: The marketing supply chain has emerged as both Achilles’ heel and opportunity for some marketers. The first and most critical step is to audit and fully map the entire scope of the marketing supply chain operations. This will likely require gathering information well beyond the scope of marketing and across procurement, finance, operations, etc. Second, understand that the marketing supply chain does not just impact budget or operations, but has a direct impact on channel performance, field sales and marketing effectiveness and customer experience. By positioning the marketing supply chain conversations above an operational or commodity management dialogue, optimization of the marketing supply chain becomes a strategic imperative versus an operational convenience.

At Global Fluency, Liz Miller oversees the daily operations of the Business Performance Innovation Network and the Chief Marketing Officer Council, a global affinity network of top brand marketers. Miller’s varied career spans sports entertainment, retail, health and personal care spaces. Miller has extensive experience in brand building, marketing program strategy and implementation, event planning and live entertainment event production. Miller is also a sought-after speaker who regularly presents at conferences and events around the world.