A PLATFORM FOR GROWTH STEPHAN PRETORIUS

Transcription

1 A PLATFORM FOR GROWTH STEPHAN PRETORIUS

2 OUR INDUSTRY IS UNDERGOING STRUCTURAL CHANGE, NOT STRUCTURAL DECLINE

3 WHAT HAS CHANGED? Data commoditised Technology accessible Self-service everywhere Smarter clients New business models Agency confidence

4 BUT THE KEY CLIENT NEEDS REMAIN CONSTANT Holistic perspectives on the market, consumers and brands Extraordinary creativity & original ideas Continuous improvements in efficiency & effectiveness

5 HOW WILL DATA & TECHNOLOGY HELP US ACHIEVE THIS?

6 A NEW DEFINITION OF SCALE SIZE Clout People Offices Brands PLATFORM Open Connected Collective intelligence Valuable to all participants

7 PLATFORM STRATEGIES ARE WINNING IN EVERY SECTOR Cloud Computing Content Development Social Navigation Commerce Mobility Hospitality Translation Search

8 PLATFORMS CREATE DATA FLYWHEELS Data Volume = Foundational to Tool / Product Improvement... Artificial Intelligence (AI) Predictive Capability MORE DATA PRICING More Uploads = Lower Average Price BETTER ANALYTICS ACCURACY Regular Improvements MORE CUSTOMERS CUSTOMERS Large / Small Enterprises + Public Agencies BETTER PRODUCTS FEATURES Regular Improvements

9 AUGMENTED CREATIVITY

10 CIRCA All teams will henceforth expose their data and functionality through service interfaces.. 2. Teams must communicate with each other through these interfaces. 3. There will be no other form of interprocess communication allowed: no direct linking, no direct reads of another team s data store, no shared-memory model, no back-doors whatsoever. The only communication allowed is via service interface calls over the network. 4. It doesn t matter what technology they use. HTTP, Corba, Pubsub, custom protocols doesn t matter. Bezos doesn t care. 5. All service interfaces, without exception, must be designed from the ground up to be externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions.

11 ORGANIZING WPP AS A PLATFORM BUSINESS DATA 1 An open data platform APPLICATIONS 2 Intelligent, connected applications INVESTMENTS 3 Strategic investment focus on AI SKILLS 4 A shared technical services capability PARTNERS 5 An optimized partner portfolio

12 1 AN OPEN DATA PLATFORM

13 AN OPEN DATA PLATFORM SUPPORTS COLLECTIVE INTELLIGENCE DATA MARKETS BRANDS & STRATEGY PEOPLE & AUDIENCES CONSUMER INSIGHTS CREATIVE & CONTENT OUTCOMES & NORMS Market simulation Investment optimization Trend mapping Augmented creativity Predictive modelling Dynamic segmentation The world s most powerful consumer insights platform

14 AN OPEN DATA PLATFORM SUPPORTS COLLECTIVE INTELLIGENCE DATA MARKETS BRANDS & STRATEGY PEOPLE & AUDIENCES CONSUMER INSIGHTS CREATIVE & CONTENT OUTCOMES & NORMS Market simulation Investment optimization Trend mapping Augmented creativity Predictive modelling Dynamic segmentation The world s most powerful consumer insights platform

15 DATA (YES... CONTENT IS DATA!)

16 DATA BUT WE DON T HAVE ALL THE DATA WPP.DATA OPEN DATA PLATFORM TO SUPPORT AN ECOSYSTEM OUR DATA CLIENT DATA (CUSTOMERS, SALES) OPEN DATA MEDIA & PUBLISHING PARTNERS RESEARCH VENDORS MEASUREMENT PARTNERS SOCIAL & CONTENT PLATFORMS TRANSACTION & LOYALTY PROCESSORS ECOMMERCE PLATFORMS and today our data is not consistently available as services.

17 DATA WHAT DOES RADICAL EVOLUTION LOOK LIKE? All data will be made accessible through service interfaces An open platform, not one database All service interfaces will be externalizable To allow for connectivity with clients and partners Data sampling, modelling and integration will be self-service Access, privacy and commercial controls assumed All major data partnerships will be done at WPP level Access to all, group leverage

18 2 INTELLIGENT, CONNECTED APPLICATIONS

19 APPLICATIONS ALL OUR APPLICATIONS WILL ACCESS WPP.DATA... BRAND PLANNING AUDIENCE INSIGHT CREATIVE TESTING MEDIA PLANNING SOCIAL ANALYTICS OPEN DATA PLATFORM TO SUPPORT AN ECOSYSTEM WPP.DATA

20 APPLICATIONS...BUT WE DON T HAVE ALL THE APPS EITHER WPP.AI AN APP STORE ACROSS THE GROUP & OUR PARTNERS OUR APPS DATA MANAGEMENT AD TECH DATA VIZ & REPORTING NLP & VISUAL ANALYTICS PREDICTIVE ANALYTICS SIMULATION CUSTOMER EXPERIENCE DYNAMIC CONTENT WPP.IO COMMON INTEGRATION LAYER FOR ALL APPS AND DATA WPP.DATA AN OPEN DATA PLATFORM TO SUPPORT AN ECOSYSTEM

21 APPLICATIONS WHAT DOES RADICAL EVOLUTION LOOK LIKE? Do not replicate established commoditised software solutions e.g. Ad servers, CRM s, DMP s, CMS s Focus development on areas that create true client value & differentiation e.g. Insights, planning, analytics, optimization (using algos, ML and AI), creative intelligence Simplify and consolidate overlapping initiatives e.g. Campaign reporting and dashboarding Implement a formal innovation stage gating process to fast-track development and adoption of internal innovations Make applications available to all WPP agencies on a self-serve basis

22 3 STRATEGIC INVESTMENT FOCUS ON AI

23 INVESTMENTS WHY IS THIS IMPORTANT? IMPROVES THE OLD Campaign optimization Predictive analytics Customer segmentation Dynamic creative Send-time optimization ENABLES THE NEW Voice interfaces Natural language understanding Machine translation Facial recognition Content and visual analytics The single largest driver of automation and efficiency gains in marketing

24 INVESTMENTS SIGNIFICANT AI PRODUCT INNOVATION INSIDE WPP OLIVE EXPERIENCE+ EVA PROJECT LOOM ESSENCE WUNDERMAN (Enhanced Visual Analytics) WUNDERMAN KANTAR CONSULTING Campaign Management Media Reporting Best Practice Auditing Self-driving Campaigns ML powered experience measurement & optimization Image analysis and clustering of Twitter and Instagram content Content Intelligence and Targeting

25 BUT THE VC INVESTMENT IN MARKETING AI IS A TSUNAMI INVESTMENTS $15.2B invested in AI startups in 2017 with over 1,100 new AI companies raising funding since Every stage of the marketing ecosystem is being targeted by AI powered marketing automation platforms seeking to disrupt existing players and talent. Strategy & Research $64M $49M $7M $4M Content Creation $67M $22M $20M $5M Media Management $30M $17M $1M $0.2M Experience Optimization Conversational Marketing Customer Service $174M $38M $25M $17M $107M $54M $2M $0.5M $38M $22M $8M $3M Insights and Reporting $64M $50M $45M $64M

26 INVESTMENTS AI TOP PRIORITY FOR THE TECH PLATFORMS CORE PLATFORMS MARKETING CLOUDS AI now core focus of strategy with a large number of supporting cloud service for AI businesses The major marketing clouds now embedding AI product features to power their products and enable marketing automation

27 INVESTMENTS WHAT DOES RADICAL EVOLUTION LOOK LIKE? Drive and manage WPP s investment in AI driven marketing technology through an advantaged view on the market and product stewardship process WPP.AI INVESTMENT STRATEGY TEAM + PRODUCT STEWARDSHIP BOARD DIRECT INVESTMENT STARTUP ACCELERATORS WPP.AI RESEARCH WPP PRODUCT INNOVATION

28 4 A SHARED TECHNICAL SERVICE CAPABILITY

29 SKILLS WPP S TECHNOLOGY CENTRES OF EXCELLENCE Our COEs covers a full lifecycle of services for all major adtech, martech and commerce platforms

30 ACCESS TO SPECIALIZED TECHNOLOGY EXPERTISE FOR ALL SKILLS Consolidate our significant but fragmented technical capabilities Integrated into both Operating Companies and Client Teams Largest global partners for Adobe, Salesforce, Google, Marketo & Oracle marketing clouds OPERATING COMPANY OPERATING COMPANY OPERATING COMPANY CLIENT TEAM CLIENT TEAM WPP TECHNICAL SERVICES

31 5 AN OPTIMIZED PARTNER PORTFOLIO

32 PARTNERS HOLISTIC PARTNER MANAGEMENT MEDIA & COMMERCE PLATFORMS Group-wide MSAs, negotiated and managed at WPP level MARKETING & AD TECH SOFTWARE & CLOUD 360 commercial terms Early access programs Joint innovation Training & certification programs Broad-based enablement Coordinated partner marketing Scaled Centres of Excellence

33 RECAP: ORGANIZING WPP AS A PLATFORM BUSINESS 1 An open data platform DATA 2 Intelligent, connected applications APPLICATIONS 3 Strategic investment focus on AI INVESTMENTS 4 A shared technical services capability SKILLS 5 An optimized partner portfolio PARTNERS

34 WHAT DOES SUCCESS LOOK LIKE? NEAR-TERM Process automation Augmented creativity Improved commercial terms Elimination of duplication and waste LONGER-TERM Accelerated growth Differentiated client solutions Talent attraction & retention Positive impact on valuation

35 WHAT NOW? New WPP CTO Organization TECHNOLOGY STRATEGY SOLUTION DEVELOPMENT INVESTMENTS PARTNERSHIPS Q ENGAGEMENT PLANNING ROADMAP DEVELOPMENT Go!