Primedia Unlimited Malls Turning Malls into Smart Destinations - Is Technology saving Advertising? - Nex Media
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R55 ex VAT South Africa only • Human 2.0 – is it time for the Three Laws? • Is Technology saving Advertising? • Fake News is in the News • Can your business succeed without digital marketing? • Primedia Unlimited Malls Turning Malls into Smart Destinations
Ensure you get every copy VOLUME 5 ISSUE 2 Nex Media Magazine has grown and as a result the response from the industry has PUBLISHER: been unprecedented. With each year the Vikesh Roopchand, Cell: 082 576 7345 vikesh@sentientpublishing.co.za number of people wanting to receive the magazine increases. Until now Nex Media EDITOR: Mark Norris, Cell: 082 850 4929 has been available on a free mark@sentientpublishing.co.za subscription basis. CONTRIBUTORS: Mark Thomson Bryden Morton and James Bisset In order to ensure that our loyal readers Ivan Israelstam Chris Blair Pranesh Ramrethan Oscar Tshifure Dylan Kohlstädt Johan Walters continue to receive their copies we are Keith Solomon Olivia Colville Lauren Timmer-Somer introducing a paid subscription. SALES AND SUBSCRIPTIONS: Sentient Publishing Get your subscription to Tel: 011 475 5095 sales@sentientpublishing.co.za Nex Media today and receive: OPERATIONS: Sharvina Roopchand, Tel: 011 475 5095 Dineo Moilwa, Tel: 011 475 5095 • Free delivery • Award winning coverage of DESIGN & LAYOUT: Bert Johnstone – Sentient Publishing major industry trends. • All at a discounted rate PRINTING: Business Print Tel: 012 843 7600 Subscribe today and take advantage of this PAPER: Supplied by Papercor special offer and ensure you’re at the TEXT: Sappi GalerieArt Plus Gloss – 130gsm forefront of the headlines affecting COVER: Sappi GalerieArt Silk – 300gsm Tel: 011 613 7990 your industry. PUBLISHED BY SENTIENT PUBLISHING Tel: 0861 111 987, Fax: 0866 832 156 R149,50 Ex VAT. Email: sales@sentientpublishing.co.za (Three issues per year) Sentient House, 761 Tortoise Street Weltevreden Park 1709, Johannesburg P.O.Box 73410 Johannesburg 2030 @TweetSentient Nex Media Magazine Sentient Publishing Nex Media Certified by Audit Bureau of Circulation COPYRIGHT © 2017-2018 SENTIENTPUBLISHING. all rights reserved. No part of this publication may be reproduced in any material form or transmitted to any other person without the prior written permission of Sentient Publishing. The copyright in this publication and the material herein (including without limitation the text, artwork, photographs and images) is owned by Sentient Publishing and its licencors. While the information contained in this publication has been presented with all due care, Sentient Publishing does not warrant or represent that the information is free from errors or omission. Sentient Publishing takes no responsibility Email for the accuracy, currency, reliability and correctness of any information included in the information provided by third parties or for the accuracy, currency reliability and correctness of links or references to information sales@sentientpublishing.co.za sources (including Internet sites) out of Sentient Publishing. or call 1 011 475 5095
Nex Media • MARKETING IS POINTLESS! Make marketing relevant again A ll of us, irrespective of the industry we are in or the job we do, face difficulty in staring our challenges in the face and seeing them as opportunities in the making. I am referring to those challenges which actually present a stumbling block to our progress but which we are unable to think about or even consider due to their gravity. A personal observation, which has been confirmed by a few different players in recent weeks, is that the marketing industry as a whole, is struggling to retain or find its relevance in the modern world. This is clearly a generalisation, but as a generality, modern clients are more savvy about what they want and they are calling the shots. The days of marketing people dictating to the client are over. You can suggest, cajole or even strong-arm your clients but when it all comes down to it, the client has taken back the final say. This is not to say that you cannot charge for the genius of pure creativity, nor does it mean that your opinion is irrelevant. What it does mean is that you have to take your clients into account and consider them as a contributor to their own marketing campaigns. Measurability has never been more important. It is no longer acceptable to simply tell clients what you have done and achieved, you will have to prove it. To ensure that you continue to remain relevant in the modern world where clients know what they want, and more importantly what they don’t want, you may have to face those hard questions head on. Determine what it is that you are doing and whether that equates to what your clients want and expect of you. It is something we should all do periodically – even though it may be uncomfortable or even down-right painful. This way you can secure your future. This issue carries a wide spectrum of articles on a range of topics in the marketing and communications space. Some of it may be news to you while some will be seem to be nothing more than common sense. Either way, you will definitely find something of interest. Our cover feature looks at a new approach to malls where shoppers become the focal point of the marketing activities associated with shopping malls. It is this type of refocusing that will reap benefits for all parties. So till the next time, enjoy and keep re-inventing. Mark Norris Editor www.nexmedia.co.za 24
Human 2.0 – Is it time for the Three Laws? ........................................ 24 Without print how successful is your campaign? ............................... 26 Editorial ................................................................................................ 2 Can your business succeed without digital marketing? ..................... 28 Primedia Unlimited Malls turning Malls into Smart Destinations ..... 4 APEX awards 2017 The results of the ‘work that worked’.................. 32 Public relations has evolved ................................................................. 8 How to Comply with Equal Pay for Work of Equal Value? ................. 34 Zippy Labels – overcoming adversity to bring labels to your shelves ...... .............................................................................................................. 36 Will current marketing practices still be relevant in 2030? ............. 12 Six Sigma The quality standard ........................................................ 14 New employers fall prey to LRA provisions ....................................... 40 Is Technology saving Advertising? ................................................... 16 Increased visibility improves retail supply chain, enhances returns Fake News is in the News ................................................................. 18 policies ............................................................................................... 42 4 Ways to Use WhatsApp in your Business including Do’s and Don’ts .. ............................................................................................................. 22 Nex News ............................................................................................ 46 3 Nex Media • Vol 5 Issue 2
Nex Media • PRIMEDIA UNLIMITED MALLS TURNING MALLS INTO SMART DESTINATIONS Primedia Unlimited Malls turning Malls into Smart Destinations Think of your local mall… What comes to mind? Opportunity or panic? Excitement or dread? The answer may depend, to a certain extent, on the time of day or month that you consider visiting the mall. However, few people would actually consider visiting a shopping mall an experience. www.nexmedia.co.za 4
T his is where Primedia Unlimited Malls comes into its own. Its aim is source of data is the malls themselves. A critical element, especially if the malls to transform a visit to a mall into a unique and enhanced shopping can digitise the data they are collecting. This is based on the activity which is experience. With their service offering consisting of four main areas of taking place within the malls. The fourth source of data is the research expertise, including media, activations, shopper marketing and digital, PU commissioned from various sources but which is all centred around Malls are paving the way for smarter and more intuitive mall landscapes. the shopper. But what does this entail? In a word – data. And lots of it, most of it about you. Molefi explains, ‘As a business, we have built a portal which becomes our one Now consider malls from another perspective, that of the brand owners, retailers source of truth, called Smart Dashboard. The aim of this tool is to connect all four and agencies. You may think that the only consideration would be the need to sources of data into one environment which will give us easier access and be achieve maximum volumes of traffic through the malls. While this is important, able to overlay all the various forms of data, firstly to test the data and, secondly it is not the only consideration. Other factors include ensuring that you have your to give us better insights. This will allow us to do two things: to engage with the brand in the right mall for the shoppers you want to attract, that your advertising shopper better and; to assist us with decision optimisation. It will allow us to is ideally placed and that you are advertising the right items to attract customers, provide real-time information to the property owners.’ showing that you know everything possible about your customer base and what they want. The requirement for this knowledge is once again data. This plethora of data has given rise to the development of the 12 products which PU Malls will use to improve the shopping experience for customers and aid There is a third player in the success and enhancement of mall advertising. property owners, retailers and advertisers. The Smart Dashboard is the first of The mall owners and their tenants. The consideration here must be location. these new tools and will act as the central aspect of the service offering from The mall they are in, its location and the type of tenant, should meet the PU Malls. requirements of the shoppers visiting the mall. This is as much about demographics and psychographics as geography plays an important part. With its expertise and experience in the shopping mall environment PU Malls has Here, once again, the solution lies in data. developed a data segmentation tool designed to identify the ‘Best Fit’ for each advertiser and brand. Powered by the multi-layered Smart Dashboard, the Smart With all of these factors in mind and the understanding that data holds the Mall Matrix tool uses data variables and algorithms to generate an intensity capability to provide the solution, this link and investment in data from the index to identify shopping malls that will result in the best ROI for each brand company provides a ‘Common Purpose’ for all players according to Molefi campaign. In essence, this will allow brands to target their advertising Moloantoa, Chief Executive Officer of Primedia Unlimited Malls. and marketing campaigns to the malls which will produce the best results for their products. The task of determining how that common purpose is achieved is the focus of the recently re-structured PU Malls, this was one of the primary reasons that the Given the fact that the aim of these products is to improve the customer’s company underwent a year-long rebrand. Molefi comments, ‘As the leaders shopping experience, many of the products are directly aimed at the customer in the industry providing integrated mall media, shopper or at determining the activity of the customer. Mall TV is a ceiling mounted unit marketing, activation and digital solutions in South Africa, it with a screen on each side facing the direction of traffic in the mall. The units became evident that we needed to re-evaluate and enhance our are located in areas of convergence where foot traffic is high. The aim is to give offering to stay relevant in this ever-changing market to ensure shoppers short snippets of marketing material related to brands available within we continue to meet the needs of the shopper. This re-brand is the mall. part of our coming of age and is pivotal to our ability of creating memorable and impactful shopper experiences that deliver value to all stakeholders, more importantly, the shopper.’ The process of re-branding brought with it a complete change in the internal operations of the company, as well as a revision of the products offered. Essentially, it was a period of intense introspection to determine better methods to improve the overall experience of the shopper with a view to giving all players the specific results they desire and build on key partnerships. He added, ‘In order to keep ahead of the market and industry, our new branding has enabled the creation of a consistent and recognisable brand, without losing the prominence of our individual centres of excellence, led by experts. ‘To this end, we have transformed our business to include Product Managers. This new structure will focus on ensuring we provide bespoke and creative solutions for clients, in which we have seen a very strong uptake from brands and mall owners on providing solutions rather than services.’ In addition to the restructuring of its organisation, PU Malls have also created 12 dedicated products designed to improve the experience of the shopper, increase footfall to malls and to specific retailers within the mall. The basis of these new products is the very data which will be used to improve the shopper experience, retail sales, impactful advertising campaigns and assist mall owners in optimal decision making. PU Malls makes use of four different streams of data. The first is the general Mall TV works hand-in-hand with the next product, 3D standees which offer data which it is able to be purchased. This is syndicated data which is readily varying levels of interactivity and can be designed to further increase the impact available for sale. The second is PU Malls’ own data which has been generated of the snippets seen on the Mall TV displays. These life size standees can be as a process of doing business since 1996. PU Malls is now leveraging that data used to create anything which fits in with the theme of the campaign. to better understand malls, shopper demographics and landscapes. The third 5 Nex Media • Vol 5 Issue 2
Nex Media • PRIMEDIA UNLIMITED MALLS TURNING MALLS INTO SMART DESTINATIONS provided. This can be branded or linked to a specific tenant to create interaction between the brand and the customer. Measuring and recording customer activity is important not only for the tenants and property owners but also for the customer. While this may seem to be a bit of a strange statement to make, it is nonetheless true. By actively recording activity, trends and patterns can be established which will allow steps to be taken to give shoppers what they want. An often-under-utilised resource is the Digital Store Directory. Not only do these interactive units assist shoppers in finding their way around the mall, they can also offer an additional source of connectivity with shoppers for brands within the mall. This can be done through special offers or as simply as restaurants Cam Track measures foot traffic entries and exits through calibrated ‘virtual uploading their menus. gates’. This allows dwell time and point of access and egress to be measured giving dominant directions of movement. Cam Track uses points such as age, Smart Network is a mall media and activations solution targeted at supplying gender, mood, distance from the camera track customer activity. An important media solutions for tenants in shopping malls, independent retailers and local element is that the information gathered from this system is completely small and medium enterprises in the immediate catchment area of a mall. It anonymous ensuring that privacy is maintained and protected. bridges the gap between local businesses and shoppers, where a need was identified. In the mall environment, it allows for smarter and more All of these technologically advanced products are designed to improve targeted communication. engagement between the shopper and his or her environment within the mall. One element which is very important in this process is the human aspect. SkyFii, is a new digital system which provides powerful data analytics on shopper Taking this into account, Smart Lead was developed which entails a process of behaviour obtained from WiFi, foot counters, CCTV, web activity, social media promoters interacting with shoppers to obtain specific information and help activity and point of sale to unlock meaningful insights for venue performance create customer databases. In return, Smart Lead can send the shopper a reporting. It has the capability to engage with shoppers through various methods promotional voucher related to the topic of the survey. It can work with most including e-mail, sms and social media, among others. brands and creates customer loyalty, depending on their opt-in preference. SkyFii works with Smart Track which actively counts and measures dwell time The final product is Ideation which is a strategic approach to big-idea thinking of unique visitors to individual venues within the mall by tracking their devices’ for campaign executions within the mall environment. It brings together data-led mac addresses – a unique identifier on every digital device. It uses strategically insights and strategy with creative direction, copywriting and marketing skills positioned access points which are calibrated to map out the stand space. across a range of media to create shopper marketing and brand campaigns Any WiFi active device that comes into the mapped area is picked up and its which are unique and appealing. movement within the area mapped. This gives the tenant the ability to know which sectors of the mapped area attracted the most attention. Molefi commented, ‘These dedicated products which we have created, under the guidance and expertise of our Product Managers, work hand-in-hand to create experiences for shoppers which changes their perception of the mall and creates a relationship between them and the mall or specific tenants and brands within the mall environment. In return, the tenants and the property owners benefit. This is where the concept of common purpose comes to fruition as all parties in the chain perceive and receive a real and tangible benefit.’ ‘At the end of the process, it is all about data, measurability and analytics and this what we offer mall and mall tenants to assist them in moving closer to their shoppers. Only by having a customer-centric approach can they understand what it is that shoppers want and how they can go about giving it to them.’ Primedia Unlimited Malls has relationships with over 70 malls countrywide. The roll-out of its new product offering has already begun and will start making an impact at a mall near you. Be prepared to start spending a lot more time at malls PU Malls WiFi is a service whereby free WiFi in public access areas can be enjoying new and exciting advancements based on memorable experiences. www.nexmedia.co.za 6
Nex Media • PUBLIC RELATIONS HAS EVOLVED Public relations has evolved By Oscar Tshifure, CEO of HOSI PR & Government Relations Consultancy (Boutique agency) and Business Development & Client Liaison Director at Plus 94 Research Public Relations is not a new phenomenon. It’s been around for over two centuries, the industry has evolved at an unimaginable rate, driven primarily by the introduction of new technologies and innovations in communications. The question is how far can it still go? How can public relations professionals leverage technology to set themselves apart from the rest, and in turn meet the communication needs of the 21st century and demands of the Y Generation? www.nexmedia.co.za 8
A lthough the industry can be dated to as far back as the 1800s, the title endless opportunities to engage their audiences and grow their market base. of ‘father’ of public relations seems to be largely attributed to Edward Bernays and Ivy Lee. In 1906, Lee was influential in driving Traditional communication campaigns encompass event coordination, communications for industrialist John Rockefeller and changing crisis communication, reputation management, trade shows, sponsorship perceptions of his image with employees. But public relations has changed opportunities and press release distribution. Traditional platforms of considerably since then. communication in traditional public relations require long lead times compared to digital PR, which is driven through digital channels of Back then, press releases, company information and newsletters were distributed communication and is almost instantaneous. Channels include: online from companies to the media via the postman, and communications professionals publications, social media, Search Engine Optimisation, which presents had to build strategic relationships with postmen to make sure that they met the opportunities for link building across channels on the web to create deadline for mail collection. enough web traffic to build and enhance brand awareness. Today, public relations professionals have the luxury of ease of access to The focus of digital public relations is on tactical positioning that leverages digital communication channels that enable the effective distribution of information channels of communication to position brands online and increase their online through diverse sources. presence through online engagement with bloggers, online publications, online journalists, and identify the best possible digital channels to position brands. While PR has evolved, some basic principles of the trade have not. Back in 1906, Conversion rates on digital public relations are instantaneous, the Return on Ivy Lee stated that the ‘press and public should receive accurate and timely Investment can be measured almost immediately with GoogleAnalytics, and information regarding a company’s actions’. While there are criticisms of his social media tracking tools increasingly make it easier to track convergence work, this statement, along with many others that followed, set the tone in and traffic. This is now the future. defining public relations as we know it today. While there are those who have diverted PR to what we popularly know as ‘spin’, the principles are and should Digital communications channels and measurement tools are changing the be to provide the public with accurate information about companies and actions, game, and increasingly putting more pressure on public relations agencies and and to position brands in a relevant and credible manner. Spin is something professionals. The world in which we live is demanding that agencies innovate, else, certainly not public relations. or they will be left behind. Those that will survive are those that can integrate traditional and digital public relations into the way in which they work. While Image management is about building mutually beneficial relationships between there is still room for traditional PR, there is no promise of what the future may organisations or individuals and their target audiences or stakeholders, and hold for purely traditional public relations agencies. engaging them in a manner that enables them to better understand the organisation and its actions. According to the SA Social Media Landscape Research 2017 research done by World Wide Worx in collaboration with Ornico, in South Africa in 2016 ‘no single The first social media network site was launched in 1995 in the United States, social network has redefined the social landscape, in the way that Instagram and was called Classmates.com. Classmates.com was designed to keep learners and YouTube did in the previous two years’. Instagram grew by 32 per cent to 3.5 connected and enable them to share memories even after high school. In 2004, million users; YouTube has seen a massive increase in engagement with brands when Facebook was launched, also intended to keep students connected, no one with 8.47 million users in South Africa; Facebook is now used by 14 million South expected what was to come next, the age of social media and SEO. Today, over Africans; Twitter is used by 7.7 million people and LinkedIn by 5.5 million. 1000 social media networks exist, providing companies and individuals with 9 Nex Media • Vol 5 Issue 2
Nex Media • PUBLIC RELATIONS HAS EVOLVED With over 2.65 billion people using social media, the opportunities for what local relations professionals would be able to deliver what the industry is about, and global brands can do with digital public relations are endless. We cannot instead of the ‘spin’ that we often see today. dispute that the opportunities that it presents are unlimited and relevant for today’s audiences. To an extent, the digital revolution is forcing traditional public relations practitioners to adapt to digital communication. Social media networks Digital public relations presents the opportunity to self-publish information and have transcended time and space, giving those on board with digital public content without necessarily having to use traditional newspapers or broadcast relations the opportunity to engage audiences 24/7 from anywhere in the world. channels. YouTube presents self-broadcast opportunities, LinkedIn and Facebook present self-publishing tools for the distribution of content and positioning of About Oscar Tshifure people and brands, Twitter is enabling organisations and individuals to drive conversations about brands and issues of audience interest, Instagram and Oscar has over ten years’ experience in public relations, reputation Pinterest are providing eclectic and boundless brand positioning prospects for management, government relations and business development, which he consumer and lifestyle brands, while WhatsApp is pushing the boundaries in gained while working with a number of clients in sectors such as Mining, the viral spread of information. Waste Management, Financial Services, Education, Health, Power Utility, Media, Market Research, Construction and all three spheres of Government. While digital channels present limitless opportunities, we have seen the devastating effects of digital communications gone really bad, including the He holds a BTech in Public Relations Management from the Tshwane University recent surge of fake news and fake tweets, cat phishing and spam on digital of Technology, Pretoria and a diploma in Public Administration from Oxbridge channels, and its ability to ruin brands overnight. Academy, Cape Town. He serves as a Director at two non-profit organisations namely the South African Reading Foundation (trading as Read A Book SA) and Among some examples of digital communications gone really bad is the The Sifiso Falala Foundation. Oscar is also a member of the Academic Advisory Outsurance 2017 Father’s Day advert, which insinuated that black men are not Committee for the Department of Integrated Communication at the Tshwane good fathers. The resulting Twitter nightmare clearly shows consumers must University of Technology. He continues to impart knowledge as a guest lecturer never be taken for granted and demonstrates the viral impact of social media as for the Department of Marketing Management at the University of Johannesburg. a powerful consumer communications channel. The outrage on social media that followed the advert influenced the wide spread of negative publicity generated Oscar is currently completing across print, radio, TV and online media, and the viral impact of how quickly his MTech in Public Relations digital platforms can drive communication. While Outsurance has since taken Management with the chosen down the video, content from other digital channels cannot be wiped out, topic: ‘The agenda setting role therefore this is not just a dent in the company’s reputation, there may also be a of Facebook in the 2016 South dent in the company’s pocket. In the digital age, companies cannot afford to make African Local Elections’ and such mistakes, they ruin brands, which is very costly. We cannot overlook the plans to pursue his Doctoral fact that social media and digital communications expose brands and people to degree in 2018. critique, and demand brands to be more accountable for the promises they make and deliver. The power dynamics have changed, the consumer now has a voice Oscar is currently the CEO of – and a very strong one. The upside of this is that credible brands are listening HOSI PR & Government Relations to their customers or target audiences, and are engaging on issues raised, while Consultancy (Boutique agency) those that don’t either, chicken out of or shy away from social media to avoid and Business Development & the damage that can be caused to their brands. Client Liaison Director at Plus 94 Research. However, when we look back at what public relations was about in the 1900’s, and then refer to modern public relations (the provision of accurate information about a company and its actions), in following this formula the majority of public Oscar Tshifure www.nexmedia.co.za 10
Nex Media • WILL CURRENT MARKETING PRACTICES STILL BE RELEVANT IN 2030? Will current marketing practices still be relevant in 2030? As marketers it is essential for you to stay abreast of the current trends in order to assist your clients to remain relevant and current. However, every once in a while it is important to look a bit further down the road to see what is going to be coming and what is going to influence consumer behaviour in the longer term. www.nexmedia.co.za 12
E uromonitor International is a research organisation which looks closely at services and amenities in the densely populated urban areas than in rural or all aspects of business to determine what the future is likely to hold. In suburban areas. It is estimated that by 2030 as many as 5 billion people will be this synopsis of a Euromonitor white paper on ‘The future consumer – living in 1,7 billion urban households globally. It is also easier to measure the households in 2030’ we look at the factors that will influence consumers contribution made by a city to a country’s national wealth. in the coming decade or so. One of the side-effects of increased urbanisation is the popularity of apartments. The white paper looks at the nucleus of modern society, the household This provides a solution for housing large numbers of people in limited urban which it considers to be a small group of persons who share the same living spaces and they offer easy access to utilities and services – including digital. On accommodation. They need not be related, but pool their income – in part or the plus side this this will create a burgeoning market for mortgages and property whole – to purchase goods and services. Perhaps the biggest single factor of rental. One the downside, one of the results is the problem of over-crowding modern living is the growing trend towards single-person households. This is which carries with it the potential for disease. the largest growing type of household and will continue to grow at an increasing rate. Another trend which will have far-reaching implications is the expansion of internet access resulting in digitalisation of households. By 2030 the majority Factors contributing to this are numerous and include an ageing population. of households will have access to high-speed digital services including online Whilst the elderly do not necessarily choose to live alone. As the average life video, gaming, gambling, social media, e-education and e-health. This will result expectancy increases the number of elderly people also increases. We have in a phenomenon known as ‘cocooning’ in which the inhabitant is not required to now reached the position where a full quarter of the world’s population is in the leave their house. E-commerce will allow for delivery of all necessary products over 50 age group. The fact that so many of them are single is generally due to and services directly to the door. In addition, a growing volume of e-commerce the break down of the extended family unit through divorce, death and children will be conducted from mobile devices such as smartphones and tablets or via moving away. smart TVs rather than from PCs. On the other end of the scale, younger people are focusing on self-development While a higher level of education will result in more single-person households, with their priorities on academic and career pursuits rather than on families. expanding digitalisation will result in the pursuit of higher levels of education. More women are opting for careers and educational opportunities rather than Throughout the period of 2016 to 2030, the number of household heads with on the traditional activities of relationships and children. An extension of this is higher education globally will increase by around 100 million which will the fact that the world has become smaller through easy and cheap global travel. consequentially enable more knowledgeable consumption of online products. Added to this is the easy accessibility to technology and entertainment which means that people have greater freedom of choice of how they spend their What this means for marketing organisations is that it will be necessary to free time. effect a shift in the type and method of message transmission to a potential audience. It will also mean that audiences are more discerning which will This growing trend to single-person households is directly linked to the trend of require more fact-based marketing, rather than merely appealing to emotions. increased urbanisation. Urban areas offer features which are attractive to the The challenges and opportunities will be fairly evenly balanced but both will younger sectors of the population. In addition, they are more desirable from the require equal dedication. point of view of the state in that it is easier and more cost-effective to provide 13 Nex Media • Vol 5 Issue 2
Nex Media • SIX SIGMA THE QUALITY STANDARD Six Sigma The quality standard by Pranesh Ramrethan (A. CRQP) (SS BB) (Dip. Operations/ Production/ Quality) (Bsc Hons) Six Sigma – An Introduction Six Sigma was developed in the eighties (1980s) by Motorola and indeed has its roots in Statistical Process Control (SPC) first appearing in the twenties (1920s). Bill Smith (Father of Six Sigma), a Motorola employee garnered numerous awards and recognition of his vital work in improving America’s manufacturing sector profitability, was proud of his role leading to Motorola winning the coveted Malcolm Balbridge National Quality Award in 1988, after Motorola implemented his Six Sigma principles, and only two years later. The evolution of Six Sigma as we know it today would have thrilled the late Bill Smith, who sadly passed away of a heart attack while at work. S tatistically the Six Sigma purpose is to reduce process variation in data analysis to reduce or eliminate defects, with a defect being anything that order that virtually all products and services meet or exceed cust causes customer dissatisfaction such as the following: omer expectations, defined as being only 3.4 defects per million a. A light bulb that fails after a few days occurrences (3.4 DPMO). b. A customer service call that results in excessive hold time c. An underwriter making a typographical error resulting in delayed approval Effectively Six Sigma is a process improvement methodology using statistical www.nexmedia.co.za 14
The various levels of training in Six Sigma can be summarised on the poorly operating process various levels as follows: e. Control – New and improved controls and monitoring of process a. Master Black Belt implementation in ensuring process gains are maintained to prevent original b. Black Belt problem from re-appearing. c. Green Belt d. Yellow Belt 2. Process design/ re-design e. White Belt In instances, merely improving an existing process may not be sufficient, requiring design of new processes or re-design of existing processes, several reasons A true Six Sigma process yields 3.4 defects per million opportunities. In other being as follows: words, there is a 99.99966% probability that the process will not produce a. Replacement of one or more core processes rather than repair of the process a defect. by an organisation b. Simply improving existing processes will never meet customer expectations Why strive for Six Sigma when 99 per cent (3.8 Sigma) is acceptable? quality level Some of the reasons can be summarised as follows: c. Opportunity identified by organisation offering entirely new product/ service a. At 3.8 Sigma, we’ll have unsafe drinking water 15 minutes per day, while at 6 Sigma, we’ll have 1 minute of unsafe drinking water every 7 months Similar to process improvement where a five-step approach is utilised, but this b. At 3.8 Sigma, we’ll have 5000 incorrect surgical operations every week, time for design/ re-design of a process while at 6 Sigma, we’ll have 1.7 incorrect surgical operations every week a. Define – New process goals considering customer requirements c. At 3.8 Sigma, we’ll have seven hours without electricity every month, while b. Match – Performance requirements for new process matching goals at 6 Sigma we’ll only have 1 hour without electricity every 34 years from above c. Analyse – New process outline design based on performance requirements The Airline Example analysis for new process Airlines operate above the 6 Sigma level, they have a less than 0.5 failure per d. Design and Implement – New process detailed design from outline design million flights. While passengers may take comfort at the safety record, the and implementation thereof baggage operation is another story. Typical baggage operation is another story e. Verify – ensure conformance of new process and introduction of controls for with baggage operations less than 3.5 Sigma level (greater than 22 000 defects maintaining such process per million opportunities). 3. Process Management Given a choice to improve baggage handling performance or flight safety, Fundamental change constraints are based on how the organisation is intuitively one would rather opt for improving flight safety over baggage managed and structured, often Six Sigma becomes time-consuming and handling because lives are more important. challenging considering change management and its associated factors. Six Sigma Conversion Table While Process Management utilises the same DMAIC process as discussed above, it is more comprehensive in application thereof and includes the 1 691.462 69% 31% following steps: 2 308.538 31% 69% 1. Define – Customer expectations of the problem 2. Measure – What is the frequency of defects? 3 66.807 6.7% 93.3% 3. Analyse – Why, when and where do defects occur? 4. Improve – How can we fix the process? 5. Control – How can we make the process stay fixed? 4 6.210 .62% 99.38% The tools available to a Six Sigma practitioner is large, it is presented only 5 233 .023% 99.977% briefly here, and from a practical perspective. In South Africa Six Sigma has not necessarily taken off as for instance in the US. In South Africa Six Sigma is driven 6 3.4 .00034% 99.99966% by international/ global companies operating here, such as GE, while the average organisation has not taken to it. The potential for organisations in South Africa to benefit is huge and a great void on the route to improved customer service levels and associated benefits. The three basic elements of Six Sigma can be summarised as Bibliography 1. Process improvement Pranesh Ramrethan is an expert in 2. Process design/re-design and Quality Management Systems along 3. Process management of existing processes. ISO 9001/ 14001/ 18001 QMS, Lead Assessor/ Auditor for Integrated 1. Process Improvement QMS and a Six Sigma Black Belt In Process improvement, root causes elimination of performance deficiencies with a range of experience in a being the purpose, which is the real cause of problems for organisations, may variety of industries. Pranesh prevent operational excellence as we know it. As a result a five-step (DMAIC) Ramrethan volunteered and was approach is utilised as follows: party to a number of international a. Define – problem identification and project team formation with resources agreements including the initial DRC and responsibilities Ceasefire Agreement, SA-Algeria b. Measure – current situation based on pre-improvement data gathering and Bi-National Commission (BNC), analysis and preliminary prognosis G24 World Nations Progressive c. Analyse – Root cause identification based on hypothesis and testing of other Governance, to mention the least. theories around the problem d. Improve – Re-design and process changes through change management to Pranesh Ramrethan 15 Nex Media • Vol 5 Issue 2
Nex Media • IS TECHNOLOGY SAVING ADVERTISING? Is Technology saving Advertising? By James Bisset Executive Creative Director of Lima Bean Advertising as we know it is about to die. www.nexmedia.co.za 16
T his is great news, because it deserves an abrupt death. If you’ll excuse obvious regardless of technological advancements. But, better late than never. the sweeping generalisation and world-weary cynicism, it’s long been a soulless space that preys on the weak; a race to the bottom where Oh, also make sure your product is everything you say it is. marketers shamelessly and lazily try to trick consumers out of their cash. Finally, some accountability Of course, there are many exceptions, but advertisers have traditionally gone for Yes. Well, kind of. We’re moving from advertising-en-masse to a more niche the low-hanging fruit. They pick an insipid message, make some lofty promises model. Where you can reach precisely the audience you’re looking for. We’re and spray it tastelessly across whichever channels they deem appropriate. entering an exciting new era, where good people are more demanding, more discerning, more powerful, and can hold advertisers to task. Expectations are Unfortunately it’s proven to be a winning formula. But this is changing. higher and advertisers need to be on their game. Technology Brings Choice But, before we throw a party, let’s temper all this excitement with some realism. In a great irony, consumers (hereafter referred to as ‘good people’) are blessed There are still some obvious concerns: with more choice than ever. So, forget those six delicious new flavours, if the delivery of that message isn’t compelling, nobody’s going to listen to it. There will continue to be chancers, and channels prepared to give them a voice. There will continue to be spam and empty vessels in a sea of noise. Privacy is an If I don’t like what I’m watching, that’s ok, it’s invariably on DVR. Think you’ll get issue, as is disinformation. Also: Russian Hackers. me with that newspaper ad? I stopped reading those in 2013. And your irritating pop-up on my browser, I’m about to tweet my discontent. Sorry, but you lost me. We’re a long way from Utopia. But we’re getting to a place where legitimate And now you’re losing my followers. brands are going to have to up their game considerably. They have to stop faking it and start actively demonstrating humanity. Effectively, they have to stop In the past, we were forced into a degree of engagement with advertising. Our advertising and start actualising. If that means being more real, honest ability to block it out – or publically shame it – is more sophisticated now than and interesting. ever. Technology will be the death of advertising as we know it. And this is great news Advertisers have to be better for anyone who has the interests of consumers good people at heart. So, the traditional channels aren’t performing like they used to. It turns out that good people aren’t idiots. How are we going to get their attention and tell them About James Bisset about this product that’s going to improve their lives? James Bisset is the Creative Director at Lima Bean Agency in Cape Town. He You’re going to have to do a few things. spends a lot of time convincing clients to tell real stories and celebrate their Firstly, choose effective channels. The phone and computer are a good place to humanity. He loves cricket, hates start. Now, be more specific. Identify the good people that might be interested T20 and doesn’t understand in what you’re selling. The internet is great like that. But your job is still far from marketing buzzwords. done. You’ve got a ticket to the party, better make sure you wear something pretty. http://limabean.agency If you want good people to pay attention, you need to entertain them, give them something of value or make a real difference. Admittedly, this should have been James Bisset 17 Nex Media • Vol 5 Issue 2
Nex Media • FAKE NEWS IS IN THE NEWS Fake News is in the News By Keith Solomon Apple CEO Tim Cook says fake news is ‘Killing people’s minds and tech needs to launch a counter attack’. There has to be a massive campaign, added Cook. The EU’s digital chief has warned Facebook and other social media companies they must take a stronger stance against fake news or face action from Brussels. www.nexmedia.co.za 18
But newspapers have not always been so trustworthy. Let’s take a look at the birth of the newspaper as we know it today. Fleet Street in London, like Main Street or Sauer Street in Johannesburg, is synonymous with the printing and publishing of Newspapers. I watched Carte Blanche some time ago and they had a survey asking: ‘Do you believe all the news you read’ – An overwhelming 96 per cent of respondents claimed that they didn’t. Remember when the only tall stories that you saw or read were in the printed newspaper on 1 April? Mark Twain said, ‘If you don’t read the newspaper, you’re uninformed. If you read Fake News victims – some examples the newspaper, you’re misinformed.’ "Pope Francis shocks world, endorses Donald Trump for president" "Donald Trump sent his own plane to transport 200 stranded marines" Dr Mathew Green, wrote in The Telegraph, about the origins of the modern "Ireland is now officially accepting Trump refugees from America" newspaper and the ‘News Frenzy’ that surrounded the Fourth Estate. Like fake "WikiLeaks confirms Hillary sold weapons to ISIS … Then drops News, much was unsubstantiated. another bombshell" "FBI agent suspected in Hillary email leaks found dead in apartment ‘The birth of the modern newspaper can be traced to a house that once stood on murder-suicide" the eastern bank of the fetid River Fleet in London. From 1702, overlooking the "FBI director received millions from Clinton Foundation, his brother’s law sewage, dead dogs, and suicide victims that clogged up the waterway, England’s firm does Clinton’s taxes" first daily newspaper, the Daily Courant, thumped, clanged and squelched out the "ISIS leader calls for American Muslim voters to support Hillary Clinton" news to the city’s eager citizens.’ "Hillary Clinton in 2013: ‘I would like to see people like Donald Trump run for office; they’re honest and can’t be bought’" It was just one product of a media revolution at the dawn of the 18th century. For "RuPaul claims Trump touched him inappropriately in the 90s" reasons that will become clear, England’s strict pre-publication censorship laws melted away in 1695 and within months a prolific newspaper press had burst Who Can we trust? Who can’t we Trust? into life. By the mid-1730s, 31 papers – six dailies, 12 tri-weeklies and 13 weeklies – were being hawked on the streets of London, with an average According to Africa Check, these are some of the Fake News combined weekly circulation of 100 000. Contemporaries assumed that each sites in South Africa: issue was read or heard by 20 people in taverns, coffeehouses, barber shops and elsewhere, suggesting that by the mid-1740s, some 42 per cent of London’s Africa Check has compiled a list of fake news sites to watch out for: 650 000-strong population consumed news daily. • Live Monitor • iMzansi • Mzansi LIVE • African News Updates • Mzansi Stories • News24-TV • CitySun • Gossip Mill Mzansi • Pretorialive • South Africa Latest News So can we trust the mainstream media? An unequivocal “Maybe”. Perhaps this is an opportunity for the major media houses in South Africa, to regain readers who don’t want to be hoodwinked and bombarded with Fake News on Social Media and the Internet. 19 Nex Media • Vol 5 Issue 2
Nex Media • FAKE NEWS IS IN THE NEWS The press boom triggered a new addiction, something the journalist Joseph Journalists capitalised upon this and would mingle and eavesdrop in local Addison defined in 1712 as a ‘news frenzy’. This gripped the middle classes, who establishments, returning to their offices with fresh gossip. Here, editors sifted spent three half-pennies to buy newspapers outright, but also those further down through what their reporters had gathered looking for good copy for their four to the social pyramid. Foreign visitors thought it remarkable. In the 1720’s Swiss six pages, each containing two columns of tightly packed news with no headlines tourist César de Saussure observed how London workmen ‘habitually begin the or illustrations. Stories were carefully selected not just to sell papers but to day by going to coffee-rooms in order to read the latest news’; a Prussian visitor ensure people read the classified sections, which usually generated at least 50 found it surreal that even fish-mongers read and discussed papers assiduously. per cent of a paper’s revenue. If advertisers pulled out, papers went bust. In London, literacy rates were unusually high – around 55 per cent for men and 30 per cent for women in 1700 – but illiteracy was no barrier for news junkies. For Fleet Street editors, the best way of building up and sustaining a loyal They’d simply huddle around people who could read and beg them to read a readership was to make their coverage as partisan as possible. By the time the paper aloud. tri-weekly or even daily newspapers were published, most people were already familiar with big stories – like the strange death of the lions in the Tower (Post The Victorians liked to hail ‘the fourth estate’ as a pillar of British liberty but Boy, January 1712), the appearance of a glowing comet above Lincoln’s Inn Fields England’s censorship laws expired almost by accident. The rival Tory and Whig (Robin’s Last Shift, March 1716), or the mutilation of British merchants by Spanish parties simply didn’t trust one another to censor the press in a non-partisan pirates in the Atlantic (London Evening Post, October 1737) – via word-of-mouth. fashion; press freedom became a necessary evil. Proposals to re-introduce curbs To stay relevant, editors had to give their readers something new: spin. Londoners on the freedom of the press were considered in 1712 but came to nothing. By dismissed ‘balanced’ papers as phony and bland, slants needed to be bold then, the idea of refuting rather than repressing critical or controversial views and vivid. was woven into the fabric of political culture. Even the fearsome government censor Sir Roger l’Estrange eventually conceded, ‘Tis the press that has made Partisan approaches were rarely adopted out of genuine political conviction. ‘em mad, and the press must set ‘em right again’ – quite an admission for a man In spite of posthumous attempts to glorify newspapers as vessels of truth and once known as ‘the bloodhound of the press’ for the way he had persecuted enlightenment (the titles Sun, Star, Mirror, Guardian capture something of this), ‘seditious’ authors with zest and glee. 18th-century Fleet Street was unprincipled, devious and corrupt. Plagiarism was rife, taking bribes from ministers was common and early hacks like Daniel Defoe After 1695, journalists were free to criticise government policy or satirise the sold their pen to the highest bidder. Church without ending up pilloried, goaled, or having various body parts chopped off (as was the case before, and still was the case in France). That’s not to say Editors cared little for the moral consequences of their campaigns. In outraged Britain enjoyed a universal freedom of the press, but in the early 18th century weekly doses in 1757, the Monitor bayed for the blood of Admiral Byng, a London boasted the biggest, freest and most profitable press in the world. competent naval commander who had retreated from a vastly stronger and better-equipped French fleet in 1756, losing British Minorca as a result. He It was along a muddy, traffic-choked thoroughfare between Temple Bar and was unequivocally not to blame yet the Monitor relentlessly portrayed him as Fleet Bridge, amidst the whirl of crowds and commerce, that newspaper printing a despicable coward and traitor who ought to be executed immediately. houses set up shop after 1695. Many remained there until the late 20th century. The melodic cries of newspaper hawkers – Flying Post! Post Boy! Daily Courant! One Londoner was so horrified by this media witch hunt that he was compelled Post Man! Gazette! Examiner – mingled with the bell-chimes of St Bride’s (still to write a poem in his diary castigating the Monitor as a ‘merciless moulder of known as the journalists’ church), the rattling of coaches and the shopkeeper’s judgement and death’. He wrote, ‘Byng must be dispatched; and it does mighty cry of ‘What do ye lack?’. The main street was lined with high-end shops and well, for the mob to be pleased and the paper to sell’. The media got their scalp: Fleet Bridge was cluttered with grotty shacks where one-eyed men hawked nuts, Byng was executed by firing squad two days after the Monitor’s latest tirade; a gingerbreads, oranges and oysters, as The London Spy observed in 1699. ‘lullaby’, as another reader put it, to quell the wrath of the news media and its frenzied readers. It was an ideal location for the London press. Fleet Street and Ludgate Hill had a long tradition of publishing – London’s first printing house had opened in With its nakedly partisan character, the press mainly preached to the converted Stationer’s Court in the 15th century – and St Paul’s churchyard was a thriving and rarely tried to win people around to new political world-views. Rather it marketplace for booksellers. Ever since Tudor times, ‘that tippling street, reinforced what people already believed, fanning the flames of their political distinguished by the name of Fleet’ was renowned for its profusion of ale-houses beliefs, assimilating events into rival political world-views and crystallising and taverns and by 1700 there were 26 coffeehouses too, due to the fact that pre-existing prejudices. Politicians miscalculated the relationship between the Fleet Street was one of London’s main arteries transporting people and mail press and political beliefs. Robert Walpole spent the colossal sum of R750 000 between Westminster and the City, these became lightning rods for political, funding pro-government rags but it didn’t win him many new supporters. financial, and overseas news. Today, Fleet Street is a pale imitation of its former self. The printing offices have been replaced by blue plaques (including one for the Courant), many newspaper circulations are in decline and, at the Leveson Inquiry, press freedoms are under serious review for the first time in centuries. But it is testament to the impact of the 18th-century media boom that ‘Fleet Street’ endures as a metonym for the newspaper industry – even though no newspaper is printed there.” Conclusion: ‘Don’t believe everything that you read in the newspapers,’ said US Politician Andrew Card. Even Abraham Lincoln said, ‘Don’t believe everything you read on the Internet just because there’s a picture with a quote next to it’. (This is fake News –Ed) Fake news will surely be a major topic of debate and legislation during 2017, but according to one esteemed editor, Mark Norris of The GAPP and Nex Media, ‘Keith, you won’t be seeing fake news in any of my publications!’ www.nexmedia.co.za 20
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