CMO vs CIO: Paths Forward to Collaboration on Collaboration - Ray Wang, Esteban Kolsky
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CMO vs CIO: Paths Forward to Collaboration on Collaboration - Ray Wang (Constellation Research), Esteban Kolsky (ThinkJar), Keynote Speakers @ Social Business Forum 2013
ANNOUNCER: Formed in 2001 as a startup digital lifestyle and fashion company the Digital Super Watch Company is a global player in connected devices for consumer consumption based in Moderna. The company IPO’d on EuroNext in 2008 right before the global financial crisis.The fast pace of change in the digital lifestyle business means new products are released every 45 days, customers purchase 2 to 3 devices a year, customers can switch preferences on a dime.The CIO and CMO of the companies have been engaged in a fierce debate on their roles as the shift in business trends has impacted relationship between the CMO and CIO.Please welcome Digital Lifestyles CMO – Esteban Kolsky and CIO Ray Wang
Ray: It’s budget time and my budgets are down 5% again this year. We can’t support your new initiatives. You have so many. Your budgets are up 30%.Esteban:You have a lot more; I end up paying twiceRay: we’re running all the things you asked us toEsteban: Yeah, but these were in our budget in 2000Ray: It’s expensive supporting all your legacy requirementsEsteban: An no, these were the ones you gave us. I don’t even use half the stuff you give me.
Access to data and resources on my timelineNot when you can, when I needData warehouses take time to build. Now you want me to take your twitter feed, the facebook wall, and make all that work.
BudgetYou have a lot more; I end up paying twiceAccess to data and resources on my timelineNot when you can, when I needSpeed to market for new productsKnockoffs are killing me, but I cannot competeCompetitive advantageHow can I be a better competitor without resourcesAgility of operationsI need to compete with China, Taiwan, Bangladesh… not locallyI want, I need, I cannot have This is the perennial conversation between us, how to solve it?
Competitive advantageHow can I be a better competitor without resources
Agility of operationsI need to compete with China, Taiwan, Bangladesh… not locally
Agility of operationsI need to compete with China, Taiwan, Bangladesh… not locally
I want, I need, I cannot have This is the perennial conversation between us, how to solve it?
Will you be ready to think big? And what does this mean?
"The Goal of Big Data is Better Decisions" - but Decisions aren't part of the flow. Also, as my .sig says ;-) Insight is only one of four possible steps with Prediction, Performance and Inference being the other three paths to better decisions. Data SourcesStructuredSemi-structuredUnstructuredInformation & OrchestrationPhysicalVirtualMachineContextualInsightPerformanceDeductionInferencePredictionDecisions & ActionsNext best actionPreventionSuggestionNo action
1. Simple. Solutions should embody design thinking at the outset. Technology should not require a manual. Solutions should be easy to use and self-service. 2. Scalable. Solutions should flex up and flex down as demand changes. Technology must work in a wide range of environments.3. Safe. Organizations expect these solutions to not only integrate with ease but also not to harm existing systems or jeopardize how users perform daily work and operations. New technology must not adversely impact another proven system. 4. Secure. These solutions should pass encryption requirements, prevent data intrusion, and protect key intellectual property assets. Resources must be invested to fend off internal and external digital threats. 5. Sustainable. Consumer technologies must meet requirements for flexibility and adaptability over longer periods of time (e.g. 7 to 10 years). Platforms must allow users to extend and expand their functionality. Solutions should be extensible. 6. Sexy. Solutions must draw passion among users. Users must enjoy using the software.
1. Simple. Solutions should embody design thinking at the outset. Technology should not require a manual. Solutions should be easy to use and self-service. 2. Scalable. Solutions should flex up and flex down as demand changes. Technology must work in a wide range of environments.3. Safe. Organizations expect these solutions to not only integrate with ease but also not to harm existing systems or jeopardize how users perform daily work and operations. New technology must not adversely impact another proven system. 4. Secure. These solutions should pass encryption requirements, prevent data intrusion, and protect key intellectual property assets. Resources must be invested to fend off internal and external digital threats. 5. Sustainable. Consumer technologies must meet requirements for flexibility and adaptability over longer periods of time (e.g. 7 to 10 years). Platforms must allow users to extend and expand their functionality. Solutions should be extensible. 6. Sexy. Solutions must draw passion among users. Users must enjoy using the software.
Expect Seven Strategies To Emerge In The Shift To CDOConsequently, many marketing leaders are making the shift from CMO type roles to Chief Digital Officers as marketing leaders align technology closer with strategy. This shift from analog marketer to a Chief Digital Officer role will result in seven trends for 2013 (see Figure 1.)Figure 1. 2013 Trends Signal Shift From Classical CMO to Digital CMOs or Chief Digital OfficersDrive relevancy with context not content. Context trumps content as relevancy required to break channel fatigue. Relevancy will improves engagement metrics.Move mobile strategies from campaign to commerce. With engagement moving to mobile first around the world, campaigns without commerce will result in wasted marketing efforts. Point of sale must be part of the strategy as we shift to a world of matrix commerce.Focus on conversion rate optimization. Conversion rate optimization takes center stage. How catalysts are built to create the right offer should be tested, measured, and optimized. This is the 8th C in the 9C’s of engagement.Design for people to people interaction models. B2B and B2C are dead. With context, individuals play different roles. This move to engagement and experience will require design thinking in crafting the P2P models of the future.Use marketing automation to gain efficiencies. Repetitive processes should be rapidly automated and even given to the CIO for maintenance. Scaling up with marketing automation is a key requirement for success. Address big and small data. Social and mobile provide great signals that can be used to make the shift from data to information. Finding patterns in the information helps marketers identify insights and then make the appropriate decisions. Marketers should focus on the business outcomes not the data.Expect more accountability in marketing budgets. With so much money flowing into marketing and digital efforts, expect a higher degree of scrutiny. Marketers must be prepared to talk financial speak. Moving to digital will improve accountability and lead to data driven marketing that many have sought in the past.
Expect Seven Strategies To Emerge In The Shift To CDOConsequently, many marketing leaders are making the shift from CMO type roles to Chief Digital Officers as marketing leaders align technology closer with strategy. This shift from analog marketer to a Chief Digital Officer role will result in seven trends for 2013 (see Figure 1.)Figure 1. 2013 Trends Signal Shift From Classical CMO to Digital CMOs or Chief Digital OfficersDrive relevancy with context not content. Context trumps content as relevancy required to break channel fatigue. Relevancy will improves engagement metrics.Move mobile strategies from campaign to commerce. With engagement moving to mobile first around the world, campaigns without commerce will result in wasted marketing efforts. Point of sale must be part of the strategy as we shift to a world of matrix commerce.Focus on conversion rate optimization. Conversion rate optimization takes center stage. How catalysts are built to create the right offer should be tested, measured, and optimized. This is the 8th C in the 9C’s of engagement.Design for people to people interaction models. B2B and B2C are dead. With context, individuals play different roles. This move to engagement and experience will require design thinking in crafting the P2P models of the future.Use marketing automation to gain efficiencies. Repetitive processes should be rapidly automated and even given to the CIO for maintenance. Scaling up with marketing automation is a key requirement for success. Address big and small data. Social and mobile provide great signals that can be used to make the shift from data to information. Finding patterns in the information helps marketers identify insights and then make the appropriate decisions. Marketers should focus on the business outcomes not the data.Expect more accountability in marketing budgets. With so much money flowing into marketing and digital efforts, expect a higher degree of scrutiny. Marketers must be prepared to talk financial speak. Moving to digital will improve accountability and lead to data driven marketing that many have sought in the past.
1. Simple. Solutions should embody design thinking at the outset. Technology should not require a manual. Solutions should be easy to use and self-service. 2. Scalable. Solutions should flex up and flex down as demand changes. Technology must work in a wide range of environments.3. Safe. Organizations expect these solutions to not only integrate with ease but also not to harm existing systems or jeopardize how users perform daily work and operations. New technology must not adversely impact another proven system. 4. Secure. These solutions should pass encryption requirements, prevent data intrusion, and protect key intellectual property assets. Resources must be invested to fend off internal and external digital threats. 5. Sustainable. Consumer technologies must meet requirements for flexibility and adaptability over longer periods of time (e.g. 7 to 10 years). Platforms must allow users to extend and expand their functionality. Solutions should be extensible. 6. Sexy. Solutions must draw passion among users. Users must enjoy using the software.
BEGIN WITH THE END IN MIND…What behaviors do you want to influence.Rewards much match desired outcomes and behaviorsTHE BIG SHIFTWe’ve shifted from selling software products, to selling service and support, to selling experiences. Now we’re really selling business models.WHY POOR ADOPTION IS COSTLYPoor adoption is painful and leads to significant loss of revenue and future growth opportunity to penetrate the market and modelENGAGEMENT JOURNEY MAPS ARE KEY TO SUCCESSSuccess requires us to rethink the engagement journey of adoption from the views of a:ProspectAdminManagerPower userCasual userJOURNEY MAPS PROVIDE THE STRATEGYThe adoption journey can be improved through gamification and game mechanics9C’S OF ENGAGEMENT PROVIDES THE INTELLIGENCEBefore we being, we need to think about how we plan to engage. We can apply the 9C’s of engagement to making this workSTART WITH THE END IN MIND…What behaviors do you want to influence.Rewards much match desired outcomes and behaviorsUNDERSTAND YOUR ORGANIZATION PERSONA BEFORE YOU PROCEEDAPPLY DEEPR TO SUCCEEDMAKING THE BUILD VS BUY DECISIONTraditional software providers, SaaS providers, business service providers 1. Business Service Provider (eg. ADP, Kaplan, Jillian Michaels) 2. Cloud Application provider (SFDC) 3. On-premise provider (SharePoint, IBM)State of software adoption (hopefully poor)Why engagement/adoption mattersHow gamification can helpShould they build or buy
Innovation – Internal ideationPr/Marketing – Campaign creationService/Support – Support escalation and resolutionProjects - WorkspacesSales – Prospect augmentation
Innovation – Internal ideationPr/Marketing – Campaign creationService/Support – Support escalation and resolutionProjects - WorkspacesSales – Prospect augmentation
Customer Experience Metrics Company CultureDoes company support a culture of putting customer satisfaction ahead of profits?Does culture promote creativity and cross functional employee collaboration?Does culture accept different views of multi-generational workforce?Does culture promote employee training and skills developmentDoes culture support upward mobility and long term retention?Does culture support work-life balance?Does the culture provide rewards for employee for outstanding customer support?ChannelsWhat are the current primary channels for customer communications?What do you think will be the primary channels in two years?Is company developing support model for emerging channels?Do all channels consistently deliver the same level of customer support?Do you know the cost per transaction across all channels?Do you engage customers proactively across multiple channels?Do all channels have access to the same customer information?CommunityDoes company extend customer support into virtual communities of interest?Does company facilitate educating users through its virtual communities?Does company mine its customer’s experience into useful data?Does company increase the value for customers through using data to deliver new products and services?Does company support two way interactions with its customers through communities of interest?Does company actively support social CRM, online communities and social media markets?CredibilityDoes company market its trustworthiness through external certificates such as business licenses, BBB certificates or other validations?Does company promote trust through customer testimonials and case studies on ethical business practices?Does company promote truthful market campaignsDoes company make it easy for customers to complain?Does company build its reputation for standing behind its products with guarantees for satisfaction?Does company protect its customer data with high security measures>ContentWhat sources do you use to create customer content?Does company mine social media and blogs for customer content?How does your company sort, store and retain its customer content?How frequently does content get updated?What external sources do you use for customer content?How many responses are typically received from a knowledge management system inquiry?Does your company use customer content to design and develop new product and services?ContextDoes your company market to customers in clusters or individually?Does your company customize its messages and personalize them to specific needs of each individual customer?Does your company store customer data based on their past behaviors, purchases, sentiment analysis and current activities?Does your company manage customer context according to channels used? For example identify personal use channels versus business channels?What is your frequency of collecting customer activities across various touch points?How is your customer data stored and analyzed?Is contextual data used for future customer outreach?CadenceWhich channels does your company measure-web site visits, phone calls, IVR, store visits, face to face, social media?Does company make effective use of cross channel marketing to promote more frequent customer engagement?Does your company rate the patterns relevant for your product or service and monitor usage against this pattern?Does your company measure the frequency of both online and offline channels?Does your company apply metrics to the frequency of customer engagements with product or services revenues?Does your company consolidate data for customer engagement across various channels for a complete view of its customer?CatalystDoes company offer coupon discountsDoes company have a customer loyalty program or a VIP membership program?Does company mine customer data to target specific groups of buyers?Do internal employees serve as ambassadors for customer programs?Does company drive loyalty through social media loyalty programs?Does company build rewards based on using loyalty data?Does company offer an employee incentive program to drive customer loyalty?Currencies (I find it hard to differentiate this element from catalyst-they seem too closely connected)
THE BIG SHIFTWe’ve shifted from selling software products, to selling service and support, to selling experiences. Now we’re really selling business models.WHY POOR ADOPTION IS COSTLYPoor adoption is painful and leads to significant loss of revenue and future growth opportunity to penetrate the market and modelENGAGEMENT JOURNEY MAPS ARE KEY TO SUCCESSSuccess requires us to rethink the engagement journey of adoption from the views of a:ProspectAdminManagerPower userCasual userJOURNEY MAPS PROVIDE THE STRATEGYThe adoption journey can be improved through gamification and game mechanics9C’S OF ENGAGEMENT PROVIDES THE INTELLIGENCEBefore we being, we need to think about how we plan to engage. We can apply the 9C’s of engagement to making this workSTART WITH THE END IN MIND…What behaviors do you want to influence.Rewards much match desired outcomes and behaviorsUNDERSTAND YOUR ORGANIZATION PERSONA BEFORE YOU PROCEEDAPPLY DEEPR TO SUCCEEDMAKING THE BUILD VS BUY DECISIONTraditional software providers, SaaS providers, business service providers 1. Business Service Provider (eg. ADP, Kaplan, Jillian Michaels) 2. Cloud Application provider (SFDC) 3. On-premise provider (SharePoint, IBM)State of software adoption (hopefully poor)Why engagement/adoption mattersHow gamification can helpShould they build or buy
wait for commoditizationWill my competition do it first?Will it transform my business model?Can we beat our competition to it?Will it be commoditized soon?Can we wait?