Welcome to the first newsletter after the summer break! The second half of the year is looking very promising with a healthy pipeline worldwide, booming markets outside Europe and strong demand for our core products: AI Factory, E-commerce and Precision Marketing.
Some thoughts, we are witnessing a double edged market situation:
On the one hand we need to be cautious: automotive industries are not performing as well as they have done in the past in Europe, Financial services need to overcome low interest rates and we are seeing the demise of 100+ year-old companies like Thomas Cook. Some experts are expecting a progressive economic slowdown. On the other hand media markets are recovering (MAGNA/IPG Mediabrands forecasts +5,4% in advertising investments worldwide in 2020) with booming music, video and entertainment. Luxury is stronger than ever with a solid double digit growth in the Asian market (+18-20% this year according to Bain & Company’s Luxury Goods Worldwide Markets Study ).
In these conditions, Artefact is perfectly positioned: our lean DNA and vision of automation in offers such as “Precision Marketing” enable cautious companies to continue spending media budgets to acquire clients at the best price possible. AI Factory is the greatest way to reduce the operating costs of a business, unifying the best in-house expertise and all our capabilities in data and AI. For expanding businesses, we see a stronger appetite for our E-commerce platform, progressively going mainstream, with more B2C and B2B2C companies relying on it. We also listen to specific industry needs with offers such as Travel Retail for example, perfect for luxury brands.
Going forwards our top challenges for the rest of the year and onwards:
In a mixed environment, where we can expect more competition we need to fight for differentiation. It should come from 3 angles: end to end expertise, scalability and capability building.
- Provide End to End Expertise: we are the only player on the market able to address a complex digital project end to end, from idea creation to project management and operation. Maintaining an outstanding level of expertise in the data & digital field is a prerequisite to convince clients we are best placed to help them develop. For example, we have seen fantastic results from our latest business development push in Media coming from farming initiatives.
- A packaged scalable offer: This is important because we serve big international clients who want to see tangible results (thus our motto: value by data), they expect solutions already available, supported by proof of concepts. To meet this need, we put a lot of effort into creating packageable, scalable offers, especially in consulting where we traditionally work in an open environment. “Data Governance”, “AI Factory”, “Precision Marketing”, “Demand Sensing”, “Augmented Agent”, “GMP roll out”, “IOT offer” are all examples of our initiatives to provide standardised offers for our clients.
- Capability building: In media, digital, and data we are seeing a rising trend for in-housing. Don’t be afraid! We see this as an opportunity to grow our clients even bigger. For example we help some clients to internalise programmatic or others to recruit Data Scientists. On the tech side, we will push more and more partnerships with big platforms such as GCP, or Azur in Europe to encourage our clients to increase their internal capabilities.
To conclude, I would like to share some compelling news:
I’m very excited to reveal our new company vision as a complement to our Brand Fundamentals (mission and values). Feel inspiration and pride in being Artefacters, with these unique double genes we have for paving the way to a bright future!
“We believe that by combining innovation (art) and data science (fact), we create a unique way of transforming data into value for enterprises: we are Art-e-fact.”
I also would like to wish all our new hires the best possible welcome, and to send a special good luck to Pascal now he has moved to the UK! I would also like to thank Ashish for his fantastic job developing the data and consulting teams so far, and wish him great success in his new entrepreneurial journey!
The ongoing focus will be to continue rolling out our HR initiatives with lots of exciting stuff happening: the Learning Management System for everyone, an Intranet, the launch of Values Week….We will be focusing on measuring and tracking employee satisfaction worldwide, as an indicator of how to offer the best possible work experience for everyone in the company.
From an external point of view, you can expect a new website to be released from October. We will continue our communication on E-commerce, and AI-Factory with the strongest emphasis on Precision Marketing and Augmented Agent until the end of the year. In the coming months we will release a new global study we carried out among one hundred CD2O (digital and data) officers, this research will be used to organise local events and generate new leads.
I wish you all a great second part of S2, with lots of learning, joy and success!
Co founder & Global COO