By James Swanson

Track: Innovation

Date / Time: 15 April 15 2009, 3:45 - 4:45 PM

Panel:

• Ash ElDifrawi - CMO, NetShops
• Robb Nansel - President and Co-Founder of Saddle Creek Records and Partner, Slowdown
• Chris Petersen - CEO, Integrated Marketing Solutions

Joe Olsen of Phenomblue moderated a lively panel discussion looking at innovation as a business driver.  Each of the panel members related their experience with taking a passion or innovative idea and making a profitable business out of it.

The relationship between consumer and producer has fundamentally changed.  The retailer is much less important in the distribution channel these days as consumers take greater advantage of the product information available to them through the World Wide Web. Disintermediation has also affected advertising. The panel noted some examples of companies encouraging users of their product to make their own commercials.

From his experience leading brand advertising efforts for Google, YouTube, and Netshops, Ash ElDifrawi had much to say about online marketing and working with innovative people. Chris Peterson, with 25 years of experience consulting for Fortune 500 companies, talked about the increasing consolidation of retailing and the expansion of warehouse club stores like Costco. He related what he believes has made his company successful: asking customers what information they want, and then figuring out how to get it for them.

Robb Nansel points often differed from the other two panelists in that his business decisions are not usually driven by a need to innovate. Mr. Nansel and his friends started the Saddle Creek label because they enjoyed the same music and artists. While major labels struggle, their increasing use of technology hasn’t affected their relationship with the bands and consumers. In fact, digitally distributed music is actually proving more profitable for them because it negates the costs of manufacturing and shipping.

When the panel was opened up for questions, discussion initially revolved around recommendations for finding an audience. It takes more than a good product to be profitable. Sometimes you have to also be innovative in targeting your consumer. Another topic of discussion was prompted by a question asking how to protect intellectual property when the digital domain makes it simple to pirate your creations. The consensus was that the best way to protect your ideas is to build your brand.