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The changing role of the cio and cmo..v1r

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A primer on the changing role of the CIO in large organizations, with the intersection of what the new CMO is and will continue to face as challenges

A primer on the changing role of the CIO in large organizations, with the intersection of what the new CMO is and will continue to face as challenges

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  • 1. ™ CONFIDENTIAL ARTHUR TISIArthurTisi@gmail.com January , 2013
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  • 4. CMOs spend will grow year over year spending from5% of Gross Revenue to close to 7% by 2014 GARTNER 2012CIO spending will Shrink year over year spending from3.5% of Gross Revenue to about 3% by 2014 4 GARTNER 2012
  • 5. Doesn’t care which vendor’s name is on hardwareWants solutions that solve problems & is willing to PilotHates long “ERP-like” projects ™The balance between tradition and innovation brings on The rise of The Chief Marketing Technology Officer 5
  • 6. CIO/CMO Crossroads Both recognize need to invest in and integrate technology and analytics to deal with growing complexity Global Underpreparedness Percent of CMOs selecting as “Top 5 Factors” Need for change to deal with data explosion Percent of CMOs indicating high/significant need Data explosion 71% Social media 68% Invest in 73% technology Channel & device choices 65% Integrate Shifting demographics 63% 69% insights Financial constraints 59% Understand 65% Decreasing brand loyalty 57% analytics Emerging markets 56% Rethink 64% skill mix ROI accountability 56% Collaborate Customer collaboration 56% 52% with peers Privacy considerations 55% Validate 49% Global outsourcing 54% ROI Regulatory considerations 50% Address 28% privacy Corporate transparency 47% This slide is courtesy of the IBM Institute for Business Value ©2012Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673 6 IBM Institute for Business Value
  • 7. ROI will be the number one method for determining marketing success by 2015Seven most important measures to gauge marketing successPercent of CMOs selecting success measurements Marketing ROI 63% Customer experience 58% Conversion rate/new customers 48% Overall sales 45% Marketing-influenced sales 42% Revenue per customer 42% Social media metrics 38% This slide is courtesy of the IBM Institute for Business Value ©2012 7
  • 8. Digital Marketing Current StateCustomer Sales Segmentation Promotions Macro-SegmentationCustomer Item level Delivered to all (up to 10 segmentsDemographics purchase history customersCustomer IDs: Statistical basket All segments arePhone, Email, analysis Results are hard targetedTwitter, to measureFacebook Competition analysis 8
  • 9. Marketing Needs To Control Data and the User Experience 9
  • 10. New Marketing Playing Field CMO Consumer Group Vendor Group Loyalty All Customers Program POS Customer Social Segment A (Sales) Media data Customer Segment AB Vendor Systems Customer Segment ABC3rd Party Market Merchandising Analytics Data Social Media Internal Analytical data Products and Services 3rd Party Market Analysis Manufacturer Data Product Group 10
  • 11. Our Vision of Advanced Marketing Prescriptive actionsAnonymous Stochastic Competitors SegmentationCustomer Customer product offering Social media optimizationProfile model analysis competitors analysisSocial Media Anonymous New product Iterative micro-Customer basket analysis ideas generated Targeted micro- segmentationProfile by customers segments Customer Sales Competition Segmentation Promotions Macro-SegmentationCustomer Item level Delivered to all (up to 10 segmentsDemographics purchase history customersCustomer IDs: Statistical basket All segments arePhone, Email, analysis targeted Results are hardTwitter, to measureFacebook Competition analysis Result Analysis 11
  • 12. Build a transformational model, that willcreate an abstract of a customer, includingmicro‐segmentation, by analyzing thesimilarity of the buying and behavioralhabits, social media data, and otherintegrated dataINTRODUCTION sources.CMOs are now in Charge!!™ PRAESCRIPTO LABS INC. 12
  • 13. Arthur Tisi 13