Innovation as an operating model

"Creativity has never been in higher demand, yet agency margins are collapsing. An industry built on the promise of differentiation risks drifting into a sea of sameness, squeezed by automation, technology, and efficiencies. The paradox is clear: As creative agencies are becoming commodities, they are falling victim to the very market forces clients pay them to escape. From my vantage point, the only way out is innovation."

"Brands that made innovation an operating model Chewy began as a pet-supply e-commerce site. But margins in retail are razor-thin. So they moved into care, not just commerce-launching televets, pet insurance, and vet clinics. By owning the pet lifecycle, Chewy expanded beyond boxes of kibble into services. A24 could have remained "just" an indie studio. Instead it built a direct-to-consumer engine. AAA24 turns films into membership, merch, and magazines. Content fuels commerce, commerce fuels community, and the flywheel spins."

Creativity demand is rising while agency margins collapse as agencies become commoditized by automation, technology, and efficiency. Competitive advantages have become transient, often lasting months rather than decades. Success depends on spotting emerging opportunities early, scaling them rapidly, and having the discipline to abandon initiatives that no longer serve. Cost-cutting stabilizes finances but does not create future relevance. Leading examples expand beyond core products into adjacent services and community-driven business models, turning content and commerce into integrated flywheels that capture more of the customer lifecycle and sustain growth through continuous reinvention.

Read at Fast Company