CIO / CMO Convergence


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Daniel Reed - presentation at the CIO Event for more information click here

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CIO / CMO Convergence

  1. 1. Daniel ReedCIO/CMO Convergence
  2. 2. The convergence of the CIO & CMO How can the CIO can best support Marketing & business leadership and drive organisation value.1.Introduction & Context Setting2. CMO Challenges3. CIO Challenges & Opportunities4. Discussion Questions
  3. 3. 1. Introduction & Context setting....• IT focus has traditionally been largely in areas of .....Infrastructure, Hardware, networks, generic application development, maintenance and support etc.• More recently IT has been more heavily engaged in business critical applications that have transformed processing efficiencies and harmonisation in many companies around ERP,HR, CRM and logistics platforms .• Predominantly back office type functions supporting finance, Operations and HR where creation of shared service centres for these business support functions has been a priority in many large organisations driving efficiencies and cost savings not to mention the benefits of standardisation and increased agility.• In recent years the digital explosion and resulting business imperatives facing CMOs has driven an appetite and urgency to transform marketing protocols at a pace that many organisations have struggled with
  4. 4. 1. Introduction & Context setting....continued• The growing influence and priority of technology on key front office business functions has lead some organisations to seek external partners to support e-marketing and ecommerce rather then partnering with CIO offices...• In many cases Marketing functions have taken on new teams of web specialists around analytics, BI, reporting, web development of sites and EDMs, etc.• This leads to need for clarity between the CIO organisation and that of the CMO around digital marketing and e-commerce....• Often highlights gaps in existing CMO or CIO management team capabilities and skill sets....• Ultimately -This leads to potential remit/role conflict between the CIO and CMO and their key management staff.
  5. 5. „The success of my role is far more aboutanalytics and technology than it is abouthanging out with my ad agency, coming upwith great creative campaigns. We mustincrease campaign ROI.‟Rob Colwell, Executive Manager - Commercial and Marketing, QantasFrequent Flyer
  6. 6. Increasing use of partnerships – In the immediate future CMOs plan toincrease their use of external resources to strengthen capabilities.
  7. 7. 2. CMO challenges....• A recent extensive survey of CEOs and CMOs asked the question what are the most influential impacts on business next year. The CMO responses were very similar to the CEOs.• CMOs stated Market and technology factors are the two most powerful external forces affecting organisations today.• They expect them to drive increasing levels of complexity over the next five years in how businesses market not just products and services, but all dimensions of our organisations.• The four biggest challenges identified were 1.explosion of data, media, 3.the proliferation of channels and devices and 4.shifting consumer demographics.• These factors are serving as catalysts for change in the marketing function and the struggle we all face is how to turn those challenges into opportunities.
  8. 8. The CMO role has changed......• Traditional thinking saw the office of the CMO concerning its self with concepts such as Brand, Promotion, Products, placements, pricing leading to revenue and profits.... channel?• Many current CMOs are concerned by how to digitally transform their business, how to leverage e-commerce, social media, create product and promotions appropriate for multi-channel marketing...• Many are struggling to determine how to improve their businesses ecommerce or digital marketing capabilities, or indeed BI or web analytics, reporting and selection strength........ Decisions often in the CMO office for investment paths for system and solution implementations or service partners to take them forward with digital capabilities.....• Even the more digitally transformed CMOs are still focusing on wed analytics, BI reporting, EDMs, digital content, digital subscriptions/memberships/orders, social media marketing, brand perception by bloggers/reviews........• Dealing with the "BIG" data that is now available and understanding what is needed, what to do with it all... and how best to leverage information into actions and business value.
  9. 9. Taking charge of the terabytes - Most CMOs plan to deploy newtechnologies to grapple with the “BIG Data”
  10. 10. The CMO role has changed......• Much of this is highly technology dependant and a real jump from traditional marketing skills, knowledge, experience... and so often leaves a gap to be filled to greater or lesser extents.....• CMO should be focused on Brand, Product, Promotion, Pricing, Placements etc. rather than being so distracted by the technology• However, CMOs who need to make decisions about technology investments may find themselves in unfamiliar territory.• This would explain why worries about implementing new technologies loom so large.• Four of the remaining eight obstacles CMOs cite are related to IT and marketing‟s relationship with the IT function.
  11. 11. Roadblocks - What‟s preventing CMOs from using new tools? Buildingthe business case, IT issues and lack of technology skills in themarketing function.
  12. 12. • ‘It’s easy to see the potential of many new tools, but it’s rarely simple to integrate them with the organisation’s existing systems,’ a food, beverage and tobacco CMO in the United Kingdom warned.• ‘The complexity of integrating [a new system] with other systems too often destroys the ROI of the new system,’ she added.• Concerns about the level of skill and lack of technology ownership within the marketing function also suggest CMOs will have to work much more closely with CIOs in the future.• An industrial products CMO in the United States spoke for many when she said: ‘I don’t see how we can go forward without embedding IT into marketing.’
  13. 13. 3. CIO Challenges• Ever increasing speed of new technologies creating digital marketing opportunities• The business cannot always articulate their business requirements (hence the partnering and/or going it alone….)• Business Partnering - growing need to proactively propose solutions and partner/lead ROI projections around technology centric investments…• Integration of new tools/solutions with existing system infrastructure
  14. 14. 3. CIO Opportunities.....• There is a clear opportunity for the CIO to more effectively support the mission critical digital transformation of organisation commerce and customer interactions through partnering the CMO function.• CIOs should be key collaborators in identifying the digital business opportunities, defining the vision in terms of operating model and technology requirements, solution selection and subsequent implementation,• CIOs can bring much to this table....Leveraging technology understanding and in many cases existing organisation tech skills and expertise to design, deliver and support effective e-MKT and ecommerce platforms and where possible processing capabilities through BI...• The digital marketing holistic technology platform has already become the most mission critical tech stack and should therefore be a key pillar, if not the primary tower in any organisation enterprise architecture
  15. 15. ‘Marketing people will need unique skills inthe near future. They’ll need to be capableof integrating marketing and IT - likefootballers who can kick with both feet.’Jeroen de Punder, Chief Marketing Officer, Ricoh Netherlands
  16. 16. 4. Discussion questions:1. How can you integrate external partners/solutions best in you IT organisation?2. What components could and should be left with Marketing and never be transitioned to IT?3. How can you transform IT so that IT can be proactive in all the digital changes, rather than be reactive ?4. What new roles are critical in your IT organisation to support the digital transformation ?5. Do digital projects require new project methodology?
  17. 17. 4. Discussion questions:6. What is the digital change/trend that has impacted you most in recent years (or in the last year)?7. Is the business organisation capable of participating in the required projects to transform (business involvement)?8. What is the solution to get business to articulate their requirements in a better way, in this continuous changing environment?9. What division of roles do you propose between the whole Web based roles (now often Marketing) between Marketing and IT ?10. „The complexity of integrating [a new system] with other systems often destroys the ROI of the new system,‟ - Is it acceptable not to integrate, to what degree ?