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Chief Marketing Technologists
Symbolize Marketing’s Changing Role
This presentation, including any supporting materials, i...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Talk about making a big spla...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Preview
2
• It's no secret t...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Storyline
3
• What’s happeni...
What’s happening is digital disruption ...
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All r...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Disruption at the business l...
Disruption at the technology level …
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Disruption at the people lev...
8
Major impacts to marketing
The customer is now in charge
The sales funnel is blown to bits
The economy is all about the ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: the customer is now ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: the sales funnel is ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: the economy is all a...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact – data is the driver ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: innovative technolog...
14
Major implications
Marketing’s role is expanding
IT moves to a bimodal organization
CEO’s shift investment priorities
M...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – marketing’s ro...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – IT moves to a ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – CEOs shift inv...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication - organization a...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – marketers are ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – budget (+ comp...
21
Chief marketing technologists
CMTs come of age
CMTs become ubiquitous
CMT responsibilities continuum
CMTs improve marke...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
The chief marketing technolo...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
81% of large companies now h...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CMT responsibilities continu...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CMTs are helping shift the m...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
… to CIO or Shared-service C...
27
What’s next
CMTs expand their role in innovation
More consolidation of sales & marketing
Marketing technology integrati...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CMTs expand their role in in...
29
Percentage of
Respondents
Q: In order to fund digital marketing, which of the following statements are true?
40 41
28 2...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CSP = communication service ...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Three upcoming “flash points...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Storyline revisited
32
• Dig...
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Recommended reading
33
• Str...
Chief Marketing Technologists
Symbolize Marketing’s Changing Role
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Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan

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From the MarTech Conference in Boston, Massachusetts, August 19-20, 2014. SESSION: Chief Marketing Technologists Symbolize Marketing's Changing Role. PRESENTATION: Chief Marketing Technologists Symbolize Marketing's Changing Role - Given by Laura McLellan, @lauramclellan - VP Marketing Strategies, Gartner Research. #MARTECH

Published in: Marketing

Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan

  1. 1. Chief Marketing Technologists Symbolize Marketing’s Changing Role This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Laura McLellan laura.mclellan@gartner.com @lauramclellan
  2. 2. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Talk about making a big splash … 1 “By 2017, the CMO will spend more on IT* than the CIO” * Technology and technology-enabled services from external marketing service providers
  3. 3. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Preview 2 • It's no secret that companies increasingly rely on marketing to achieve key business objectives. Nor that marketing relies on technology and data to accomplish this. As a result, demand for dedicated marketing technology expertise is high. • Organizational solutions to meet the need go far beyond adding skills and capabilities – they need to simultaneously accommodate profound changes in the role marketing plays. • The best chief marketing technologists accelerate the shift from traditional governance, sourcing, and risk management to agile processes, a results mindset and culture of innovation. This presentation distills the most critical trends and ramifications.
  4. 4. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Storyline 3 • What’s happening • What’s the impact • What are the implications • Where chief marketing technologists fit in • What’s next
  5. 5. What’s happening is digital disruption ... Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved 4
  6. 6. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Disruption at the business level … 5
  7. 7. Disruption at the technology level … Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved 6
  8. 8. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Disruption at the people level … 7
  9. 9. 8 Major impacts to marketing The customer is now in charge The sales funnel is blown to bits The economy is all about the experience Data is the driver of decisions Innovative technology underlies it all Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved
  10. 10. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: the customer is now in charge 9 Very brand loyal
  11. 11. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: the sales funnel is blown to bits 10 Web or e- commerce 50.4 Mobile commerce 22.3 Social commerce 18.3 Other 8.9 Q: What percentage of your revenue realized from digital commerce this year is attributed to the following channels? Percentage of Revenue n= 211 Excludes Don’t know 46 37 9 8 0 10 20 30 40 50 Yes, marketing has its own P&L today Yes, but marketing shares the P&L with one or more business units No, but we plan to have a P&L in the next 24 months No, we have no plans for marketing to have its own or a shared P&L Percentage of Respondents Q: Does your marketing organization have its own P&L to capture revenue from sales that are made through digital channels? n=274. Excludes DK.
  12. 12. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: the economy is all about the experience 11 1 2 7 8 43 63 91 55 30 0 10 20 30 40 50 60 70 80 90 100 2 years from now Today 2 years ago Percentage of Respondents Bottom Two Middle Three Top Two 4.8 5.6 6.4 Mean Score 1 - Does Not Compete On 7 - Entirely Competes On Q: Please rate to what degree your organization competes on the basis of the customer experience over the following timescales on a scale of 1 to 7 where 1 = does not compete on and 7 = entirely competes on Two years from now 90% of marketers say they will compete almost entirely on the basis of the customer experience
  13. 13. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact – data is the driver of decisions (also shared and sold) 12 Yes 54% No 46% Yes 75% No 25% Yes 87% No 13% Sell or share data? n = 226 21 58 62 21 36 57 18 20 35 12 25 29 7 16 32 Embryonic Intermediate Progressive Share data with sales channel partners to improve sales Share data with mktg agency partners to improve advertising effectiveness & accountability Share data with top customers to improve loyalty Sell data to our best customers Sell data to big data collection companies Q: To what degree is your organization currently monetizing its aggregated data to customers or sales channel partners?
  14. 14. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: innovative technology underlies it all 13 Percentage of Respondents 22% 23% 18% 22% 39% 44% 32% 43% 30% 23% 40% 27% 6% 9% 8% 5% 3% 1% 2% 3% Capital expenditures for technology Technology expenses Cross-charged expenses from Internal IT Expenses for Mktg Svc Providers Expect significant decrease Expect slight decrease No change Expect slight increase Expect significant increase Q: Over the next 2 years, do you expect your organization to increase or decrease investments in these areas? 61% 50%67% 65% n = 244
  15. 15. 14 Major implications Marketing’s role is expanding IT moves to a bimodal organization CEO’s shift investment priorities Marketers are equally technologists Budget (& complexity) rises Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved
  16. 16. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – marketing’s role is expanding 15 The Digital CMO and their organizations are responsible for mastering technology and digital techniques to improve all marketing customer-related processes and grow the business by: • defining markets • developing & managing offerings • attracting, acquiring and retaining customers.
  17. 17. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – IT moves to a bimodal organization 16 Reliability Goal Agility Price for performance Value Revenue, brand, customer experience Waterfall, V-Model, high-ceremony IID Approach Agile, kanban, low ceremony IID Plan-driven, approval-based Governance Empirical, continuous, process-based Enterprise suppliers, long-term deals Sourcing Small, new vendors, short-term deals Good at conventional process, projects Talent Good at new and uncertain projects IT-centric, removed from customer Culture Business-centric, close to customer Long (months) Cycle Times Short (days, weeks) Think Marathon Runner . Think Sprinter Mode 1 Mode 2
  18. 18. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – CEOs shift investment priorities 17 n = 410 CEO’s & Sr. Bus. Executives Q: Which five technology enabled capabilities will be the most important areas of investment to improve your business over the next 5 years? 20 20 22 23 24 27 32 34 34 38 0 10 20 30 40 Product cost analytics M-commerce Supply chain optimisation and traceability Enterprise mobility Big Data / Data science Cloud business Business analytics Customer experience management E-commerce Digital Marketing Percentage of Respondents Multiple choices allowed
  19. 19. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication - organization adds new roles VP Marketing Digital Marketing Manager Mgr. Social Marketing Mgr. Mobile Marketing Mgr. Content Marketing Marketing Analytics Mgr DM Center of Excellence Marketing Business Analyst Dig Mktg. Measurement Branding Digital Commerce Dig Mktg Sourcing DM Systems Integration Multichannel Marketing Partner Marketing Chief marketing technologist Data Executive Digital Marketing Bus. Strategist CMOChief Digital Officer Chief Customer Officer Innovation Executive DM Operations Traditional Marketing Field Marketing Corporate Communications Digital Offering Development Internal IT Liaison 18
  20. 20. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – marketers are equally technologists 19 Creative marketing skills Technology marketing skills
  21. 21. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – budget (+ complexity) rises 20 10.4% 2.5% 10.7% 3.1% Total Marketing Digital Marketing 2012 2013 Budget as % of Revenue + 20% n = 285 (2013) & 203 (2012) Share background * Companies with revenue > $500M
  22. 22. 21 Chief marketing technologists CMTs come of age CMTs become ubiquitous CMT responsibilities continuum CMTs improve marketing/IT dynamic CMTs help push adoption of adaptive sourcing Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved
  23. 23. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders The chief marketing technologist comes of age 22
  24. 24. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders 81% of large companies now have the equivalent of a chief marketing technologist 23 Chief Marketing Technologist: The equivalent of a CTO and CIO dedicated to marketing, familiar with all kinds of marketing software, data and analytics, social and mobile platforms, content marketing, Web mechanics, and digital advertising networks, among other topics. 81% do 2012 83% Have a marketing innovation budget 80% Have a marketing capital budget n = 285 Q: Specify whether your organization presently has the equivalent of a Chief Marketing Technologist in 2013
  25. 25. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CMT responsibilities continuum 24 50 59 63 65 67 0 50 100 Craft technology-enabled digital business models Prioritize funding for marketing technologies Select, evaluate and choose marketing technology providers Facilitate projects and communications between marketing and internal IT Align marketing technology with business goals Percentage of Respondents Set mktg. tech. strategy Mktg. tech. roadmap Mktg. tech. budgets “ Provider selection Training/change mgmt. CMO advisor De facto CDO Cross-functional customer focus Digital transformation Innovation leader Incubator leader C-suite advisor
  26. 26. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CMTs are helping shift the marketing/IT dynamic 25 Independence: "We're going to keep on doing our own thing with our own budget." Secession: "We'll appoint a CDO or Marketing CTO to manage all things digital. Collaboration: "We have to figure out how to work together with marketing." Innovation: "We'll work together on this and break away from the competition with new and better practices and use of technology."
  27. 27. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders … to CIO or Shared-service COO CMTs play a key role in adoption of adaptive sourcing … to Business Units, Supply Chain, Process Owners … to R&D, Chief Digital Officer, Chief Marketing Officer Decision Owner From the CIO, CFO or the Board … Innovate Differentiate Run The move from rigid outsourcing & project contracts … to partnering, crowdsourcing, CSI, BPaaS, JVs, Spin-off, M&A, agile development
  28. 28. 27 What’s next CMTs expand their role in innovation More consolidation of sales & marketing Marketing technology integration Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved 3 upcoming “flash points”
  29. 29. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CMTs expand their role in innovation Does the innovation team aim to drive specific innovations forward, or enable others to innovate? Does the team aim to leverage existing pockets of innovation, or unleash new innovators? Everyone Responder Helps business units deploy new technologies through a tactical and pragmatic "SWAT" team approach. Respond Will the team invent fundamentally new approaches, or apply and adapt existing and emerging ideas and capabilities? Lead Scholar Investigates technologies ahead of business need through primary research and development. Invent Navigator Determines the strategic business impact of emerging technologies, through tracking, evaluation, and piloting. Adapt Pollinator Encourages and mentors distributed innovation activities throughout the organization. Unleash Will the team primarily respond to business suggestions, or lead and inspire the business leaders? Drive Will the team work primarily with executive decision makers, or a broad base of managers and teams? Enable Conductor Coordinates and leverages emerging technology activities performed in other parts of the organization. Leverage $ Suitable for part-time or resource-constrained teams$ Counselor Educates senior management on emerging technology issues and potential. Executives $
  30. 30. 29 Percentage of Respondents Q: In order to fund digital marketing, which of the following statements are true? 40 41 28 27 28 Not asked 44 43 35 31 32 22 74 73 54 60 59 51 0 10 20 30 40 50 60 70 80 We are funding digital marketing from within the existing marketing budget and squeezing spending on multiple other marketing activities We are saving money with digital marketing as opposed to traditional marketing and the savings is funding continued investments We reduced our traditional advertising budget We obtained incremental funding for digital marketing from other functions or business units We justified a net addition to the marketing budget for digital marketing activities without cutting elsewhere We obtained funding for digital mktg from reductions in sales budget because buyers have changed their purchase journey and digital mktg activities replace some activities previously performed by sales 2012 (n=253) 2013 (n=285) 2014 (n=199)* - - Marketing reinvestment - - - - Incremental - - - - Sales - - Gartner for Marketing Leaders More consolidation of sales & marketing
  31. 31. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CSP = communication service provider; DM = digital marketing; DMP = data management platform; DOOH = digital out-of-home; NFC = near-field communication; OTT= over-the-top; PM = program management; RT = real time; SEM = search engine marketing; SEO = search engine optimization; UX = user experience; UXP = user experience platform Product Station Vendor Station Offline Connection AD OPS DATA OPS MOBILITY WEB OPS SOCIAL OPS DESIGN MARKETING OPS CREATIVE Connection to CMO Connections to Sales and Service Connection to General Advertising Connection to IT Connection to Business Intelligence Web Content Mgmt. Web Analytics Virtual Actors Video Ad Networks Video Ad Mgmt. Venues User Groups UXP UX Design Tag Mgmt. Social TV Social Networks Social Mktg. Mgmt. Social Commerce Social Apps Social Analytics Social Ads Smart Kiosks Site Retargeting Search Retargeting Search Engines SEO Tools SEM Platforms Rich Media Search Real-Time DecisioningQR Codes Programmatic Media Program Guide Promo Reviews & Recs Embedded Merch Product Design Compliance Predictive Campaign Analytics OTT Video Online Video Publishing Online Retailers Data Exchanges NFC Natural Language Questioning Native Ads Campaign Mgmt. Mobile Search Mobile Messaging & Commerce Mobile Media & Targeting Mobile App & Content Svs Mobile App Marketplace Mobile Analytics Mobile Ad Networks Microsensors Media Labs Media Companies Media Agencies Marketing Service Providers Mktg. Resource Mgmt. Management Consultants Marketing Analytics Lead Mgmt. In-Game Ads Idea Mgmt. IT Service Providers Geotargeting Geofencing Gamification Tools Finger- printing Experience Targeting Emotion Detection Email Mktg. E-Commerce Enablers Dynamic Creative DOOH Media Svcs Digital Offers Media Metrics Digital Asset Mgmt. Digital Agencies Data Warehouses DMP Customer Analytics Crowdsourcing Content Marketing Data Providers Communities CSPs Census and Panel Data Business Process Outsourcers Blogs Automatic Content Recognition Augmented Reality Attribution Agile Mktg. PM Agency Holding Companies Advocacy Mktg. Addressable TV Ad Verification Online Ad Networks Ad Exchanges A/B Testing MOBILE STRATEGY EMERGING TECH ANALYTICS AD TECH UX SOCIAL COMMERCE Mktg. Mgmt. SEARCH CREATIVE RT DATA Marketing technology integration – via software as well as service integrators DM HUB Analy- tics Ad Tech User Exp. Digital Comm Mktg Ops Search MARKETING HUB Social Mobile 30
  32. 32. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Three upcoming “flash points” 31 Modifying processes and updating underlying technologies to create a holistic customer experience - between Marketing, Customer Service and Sales, if not more broadly Replacing your e-commerce platform with a customer-centric digital commerce ecosystem, including elements run by marketing Developing new “internet of things”-influenced digital products and services
  33. 33. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Storyline revisited 32 • Digital disruption on a broadening scale • Main impacts on marketing: * Customer in charge * Sales funnel blown up * Experience economy * Data & analytics = driver * Innovative technology underlies it all • Major implications: * Mktg. role expanding * IT moves to bimodal org. * Marketers as technologists * CEO investment priorities * Budget & complexity rises • Chief marketing technologists: * Come of age & are ubiquitous * Continuum of responsibilities * Improving Mktg./IT dynamic * Promote adaptive sourcing • What’s next * Expanded role in innovation * Mktg/sales consolidation * Mktg technology integration * 3 “flash points”
  34. 34. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Recommended reading 33 • Strategic Pressures Expand the Chief Marketing Technologist Mandate G00266856 • Find a Chief Marketing Technologist to Seize Business Advantage G00262061 • What the Chief Marketing Technologist Needs to Know About the Digital Marketing Hype Cycle G00266857 • How the Presence of a Chief Marketing Technologist Impacts Marketing G00259204 • HBR article “The Rise of the Chief Marketing Technolgist” available free at http://www.gartner.com/marketing/digital/
  35. 35. Chief Marketing Technologists Symbolize Marketing’s Changing Role This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Laura McLellan laura.mclellan@gartner.com @lauramclellan

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