Dentsu's MarTech Future

In 2021, Dentsu Group's Indian division was hit with a series of departures of senior-level executives, sparking rumours and uncertainty about the fate of agencies and talent within the group. Narayan Devanathan, who had assumed leadership following the departure of several familiar figures, eventually moved on from the organisation.

In May 2023, the agency named Harsha Razdan as the Chief Executive Officer for its South Asia office, filling a position that had remained vacant since September 2021. Moreover, Devanathan also returned to the company in a consulting capacity as the group's Chief Strategic Advisor.

With these strategic changes, Dentsu South Asia is now seeking to transform itself a marketing and tech-focused consultancy. Through a client-centric approach, focus on collaboration and commitment to technological innovation, Dentsu is aiming to redefine its role in the advertising industry, setting the stage for a transformative future.

BW Businessworld recently caught up Harsha Razdan, CEO of Dentsu South Asia, who discussed, among other things, the strategic vision behind the company's ‘East Meets East’ strategy, the shift from a traditional advertising agency to a marketing and tech-focused consultancy and the role of marketing and technology in their vision for 2024 and beyond.

The Homecoming
Talking about his journey, Razdan, who started his career at PepsiCo and later moved into consulting, described his return to Dentsu as a homecoming. Reflecting on his earlier days when he was a client of creative agencies, Razdan emphasised the people-oriented approach and the importance of understanding the client's perspective. “Having come on this side, the big message I would say for me would be that we look at Denstu as not only an advertising agency or a creative agency, it's a marketing and tech-focused company,” he said.

Razdan stated that the company's evolution was in line with the global vision set by Dentsu's CEO and President Hiroshi Igarashi. In this regard, he mentioned the shift towards the ‘One Dentsu’ operating model, focusing on client-centric solutions within specific clusters. “The Japanese philosophy of working within clusters enables better client focus, talent optimisation, and collaboration across geographies,” he said. He also explained how this model aims to break down internal structures and prioritise client needs over organisational practices.

East Meets East Strategy

Discussing the uniqueness of Dentsu in the global market, Razdan unveiled the ‘East Meets East’ strategy, where the focus is on clustering operations in South Asia. He explained how over the last five to six years, the company had moved

away from a multitude of service lines to a more focused approach on media, creative, and customer experience with India, Sri Lanka, and Bangladesh forming a cohesive unit.

He also explained the philosophy of working within the Gemba, a Japanese concept, meaning ‘the market’ and the positive impact it has on collaborations. “We have India, Sri Lanka, Bangladesh, all markets together as one and we optimise the cluster,” he said.

He discussed the role of Japan in this strategy, emphasising collaboration and the exchange of talent across clusters. He said that Japan acts as an enabler, providing ideas and expertise without imposing them on the South Asian clusters. He commented, “In India if we adopt the best of the philosophies and adapt it to the country, that's the best combination. Access is 100 per cent there.” The goal is to let each cluster, including India, Sri Lanka, and Bangladesh, optimise for its clients within the broader vision set by Japan.

Razdan emphasised the need to solve clients' problems irrespective of the service line, with a focus on marketing and tech. He shared Dentsu's plan to reposition and strengthen its presence in these domains, aiming for 50 per cent of global revenue from customer experience (CX) by 2030.

The Rise of Tech

Razdan underlined the integral role of technology in Dentsu's strategy. “It has to be around tech, so it is heavy duty tech, but it will be tech with a very strong flavour of marketing,” he said, adding, “From data analytics and CRM platforms to 100 per cent augmented reality and artificial intelligence, tech will play a crucial part in shaping Dentsu's future offerings.” He informed that Dentsu had established a lab, with inputs from the company's next-generation leaders, which will bring marketing and tech together.

The Year Ahead

Looking ahead at 2024, Razdan said the focus would be on client-centricity, intense collaboration, and catapulting talent. He stressed the importance of offering solutions that solve clients’ problems. “There are newer offerings that we are bringing in from other quality customer sides of offering. That's going to be about 50 per cent of our overall revenue in the next three to four years,” he said.

Collaboration, according to him, is akin to brokering. It involves facilitating connections and encouraging parties to secure their own agreements. He likens it to being a relationship manager, where two parties consistently interact with each other during both favourable and challenging times, ultimately focusing on resolving issues and fostering a sense of comfort in engagement.

Referring to the next-gen and nurturing talent, Razdan said, “This is the time where you can't force anyone to do anything. Get the next generation excited about the future of Dentsu and the careers they can have.”

Nonetheless, he also shared that the strategy also involves a balance between current and new offerings, with a focus on data, commerce, and technology which will be witnessed in 2024