By Geoff Clarke, COO, IPG Mediabrands
I often describe scaling a business as a high-wire act. Why?
Because it’s complex and demands a delicate balance driving both short-term wins and long-term innovation; attracting and retaining top talent; and maintaining profitability.
Our industry is a constant revolving door of technological advancements and changing consumer behaviours, and the realisation that we need to adapt or be left behind is very real.
So, if you want to scale your business, survive and lead a strategic approach is required.
Geoff Clarke
How?
The answer lies in strategic investment, but more importantly in courageous investment – the willingness to prioritise long-term gains over short-term pressures – even when shareholder and market pressures make it difficult.
The Internet of Things (IoT), culture changes and shifts in consumer behaviours places immense pressure on scaling businesses. While technologies like Robotic Process Automation, Artificial Intelligence (AI), Machine Learning (ML), Large Language Models (LLMs), and data analytics are transforming operational models, a clear technology investment strategy is critical. The right investments will be the key differentiator between achieving profitable scale and missing a significant opportunity.
Courageous investment in the right technology is paramount; I view it as the difference between leading the charge and being left behind.
Consider the following hypothetical: an agency invests heavily in building a new technology solution as it is the latest trend. They poured resources into creating virtual experiences, only to find that their investment yielded little to no ROI. In fact, the agency missed out on opportunities to strengthen its core data analytics capabilities while it poured its resources into the ‘fad’ technology solution.
While a hypothetical, it highlights the importance of focusing on investments that align with long-term strategic goals, rather than chasing fleeting trends.
A technology investment roadmap is the blueprint that guides a business’s investments and ensures they align with overall business objectives.
To build an effective roadmap, the first step is to define clear business goals. Ask yourself what you’re aiming to achieve—whether it’s improving campaign performance, enhancing client relationships, or expanding into new markets. Your technology investments should directly support these goals. For instance, if your objective is to improve campaign performance, your roadmap might prioritise AI-powered analytics tools and programmatic advertising platforms. Conversely, if your focus is on deepening client relationships, investment in CRM systems and collaboration platforms would take precedence.
Next, assess your current technology infrastructure and conduct a thorough evaluation of existing systems and capabilities. Identify what’s working well and what’s holding the business back. This analysis will help identify gaps and areas for improvement. Don’t shy away from streamlining or restructuring incumbent systems—while it may take time, doing so will enable more effective scaling in the long run.
Once you understand the business needs, it’s crucial to prioritise investments. Not all technologies offer the same value or feasibility, so develop a framework that evaluates potential investments based on criteria such as strategic alignment, potential ROI, risk, and ease of implementation. For example, use a weighted scoring system where strategic alignment and potential ROI each carry a weight of 30%, while risk and ease of implementation are weighted at 20% each. This helps ensure the technology investment delivers the most benefit with the least downside.
With priorities in place, create a phased implementation plan. Avoid trying to do everything at once. Break the roadmap into manageable phases, each with clear milestones and timelines. Start with the technologies that will have the most immediate and significant impact to gain early wins and build momentum.
Finally, allocate resources wisely. Make sure the necessary budget, personnel, and expertise is available to support each stage of the implementation. This could involve hiring new talent, upskilling current employees, or working with external partners to fill capability gaps. Strategic resource planning will ensure the technology investments deliver on their promise and drive real business value.
Implementing new technologies is not always smooth sailing. There are many potential pitfalls that can derail efforts. To help navigate the implementation minefield here are some clear recommendations:
• Do: Communicate clearly and often. Keep everyone in the loop. Clearly communicate the vision and benefits of new technologies to all stakeholders. Explain how the changes will impact individual roles and responsibilities.
• Don’t: Assume that employees will automatically know how to use new technologies. Provide adequate training to ensure that they can effectively use the new tools and systems.
• Do: Expect some resistance. Overcoming this requires a proactive approach: involve employees early, provide comprehensive training, and clearly demonstrate the benefits of new technologies.
• Don’t: Forget about integration. Ensure new technologies can be seamlessly integrated with existing systems. A fragmented technology eco-system is beneficial to no-one, the more integrated it is, the greater the future scaling opportunity will be.
• Do: Prioritise data security and privacy. Implement robust security measures to protect sensitive data and comply with relevant regulations.
• Do: Measure Success. How will you know if the technology investments are paying off? Track key metrics such as: Growth, Profit, Margin, along with Campaign performance, Client satisfaction, Employee productivity and Cost savings.
In the advertising industry investing in robust data governance and security measures to protect sensitive information and comply with regulations is always critical. This includes implementing data encryption, access controls, and regular security audits.
The path to scaling a business is not easy. It requires a delicate balance of innovation, talent, and profitability. But for those who have the courage to invest strategically, the rewards are significant: increased efficiency, improved client relationships, a more engaged workforce, and sustainable growth.
The future belongs to those who dare to think long-term and invest wisely.