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The CIO & CMO – Adversaries No More

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As marketing is getting more and more complex, data intensive and technology driven, it is important for CIOs to understand the new marketing era we live in. The pressure for CIOs to earn a seat at the strategic table was greatly enhanced by Gartner's report in 2012 that pointed to the CMO as the champion of the technology budget in the near future. Specifically, CIOs can partner with marketing leaders to optimize the use of technology to increase execution velocity and scale departmental efficiency. A collaborative relationship between the CIO and CMO is a must in today's evolving IT landscape, as they drive towards ensuring a customer-driven approach that benefits the entire business.

Published in: Marketing

The CIO & CMO – Adversaries No More

  1. ©2014 Extreme Networks, Inc. All rights reserved.
  2. ©2014 Extreme Networks, Inc. All rights reserved. Vala Afshar Author – The Pursuit of Social Business Excellence Blogger – Huffington Post, Information Week, Inc. Social Media – Active on Twitter and Slideshare
  3. ©2014 Extreme Networks, Inc. All rights reserved. All Businesses Will Be Digital Businesses
  4. ©2014 Extreme Networks, Inc. All rights reserved. “In search of social business excellence? ... plenty for other companies to learn from.” --InformationWeek “Get beyond Kumbaya and onto the task of using these technologies to bring autonomy, mastery and purpose into your business.” --Forbes “A brilliant book.” --Tom Peters
  5. ©2014 Extreme Networks, Inc. All rights reserved. Top 10 people mentioned by marketing executives. The #1 Retweeted and Mentioned Person by Marketers
  6. ©2014 Extreme Networks, Inc. All rights reserved. 125 Blog Posts in 2013
  7. ©2014 Extreme Networks, Inc. All rights reserved. 700,000 SLIDESHARE VIEWS
  8. ©2014 Extreme Networks, Inc. All rights reserved. Digital Economy Welcome to the New User experience is shaped by technology trends Digital economy is defined by mobile, social, cloud, big data and apps The network is a strategic business asset
  9. ©2014 Extreme Networks, Inc. All rights reserved. Mobile-first, always connected, highly secure Mobile 74% of viewers will leave a page if not loaded in 5 seconds 268B mobile apps will be downloaded in 2017 70% of mobile searches lead to action within 1 hour
  10. ©2014 Extreme Networks, Inc. All rights reserved. Collaborative, open and connected Social 65% of B2B companies have acquired a customer through social 94% of customers believe that c-level social involvement is important 82% of employees trust a company with social leaders
  11. ©2014 Extreme Networks, Inc. All rights reserved. Hybrid, flexible and secure Cloud 97% of workers are using cloud services 60% of all cloud deployments will be hybrid by 2016 77% of businesses saw rogue cloud deployments last year
  12. ©2014 Extreme Networks, Inc. All rights reserved. Right app, right person, right time Apps 70B apps will be downloaded by 2014 (286 billion by 2017) 84% of mobile traffic is related to apps 0% of businesses know what apps are running everywhere
  13. ©2014 Extreme Networks, Inc. All rights reserved. Data to insight to rapid decision/action Big Data 4300% increase in annual Big Data generation by 2020 0.5% of Big Data is being analyzed today 63% of businesses view analyzing Big Data as a competitive advantage
  14. ©2014 Extreme Networks, Inc. All rights reserved. 90% of Revenue Growth in the Next 10 Years Will Come From the Third Platform - IDC 14
  15. ©2014 Extreme Networks, Inc. All rights reserved. Application Landscape Report 2014 Too many web applications a stumbling block to digital transformation §  60% CIOs believe their most valuable contribution is introducing new technologies §  Cloud (56%), Mobility (54%), Social (41%%) and Big Data (34%) are seeing major adoption §  76% CIOs: modernization of the application landscape key to achieving business objectives *Survey of 1,000 global CIOs
  16. ©2014 Extreme Networks, Inc. All rights reserved. State of the CIO 2014 Digital strategist or traditional CIO? §  90% of CIO: role is increasingly challenging; 65% role is becoming more rewarding §  44% of CIOs report to the CEO. Tenure is six years, while average pay is holding at $219,500 §  CIOs spend significant time to focus with business leaders - up to 25% of week §  Game-changers CIOs average salary $249,000. (70% report to CEO) vs cost-center CIOs ($182,000 and 37% to CEO) §  48% of CIOs: IT groups is viewed as a cost center or service provider §  61% CIOs have part of their compensation tied to a specific corporate revenue or profit goal
  17. ©2014 Extreme Networks, Inc. All rights reserved. 2014 CIO Priorities “Measurement is fabulous. Unless you’re busy measuring what's easy to measure as opposed to what's important.” – Seth Godin
  18. ©2014 Extreme Networks, Inc. All rights reserved. 1.  Lead the business from the front 2.  Re-invent for next-generation digital 3.  Create highly engaging workplace, customer, and partner experiences 4.  Enable emergent, decentralized tech change in the organization 5.  Don’t constrain IT, empower it CIO Mandate: Lead Digital Transformation Authored by Dion Hinchcliffe, Dachis Group
  19. ©2014 Extreme Networks, Inc. All rights reserved. The Marketing Function Will Undergo the Greatest IT-Driven Business Transformation 0% 2% 4% 6% 8% 10% 12% IT Accounting / Finance / Billing Human Resources & Training Engineering, Architecture & Supply Chain Management Other Horizontal Sales Customer Service Risk and Security Industry Specific Operations Marketing 19 U.S. IT Spending by Line of Business 5 Year CAGR (2012-2017) Excludes Government and Education Source: IDC’s Line of Business Forecast. Preliminary Data. October, 2013
  20. ©2014 Extreme Networks, Inc. All rights reserved. CMOs – 2014 and Beyond How will CMOs and CIOs work together?
  21. ©2014 Extreme Networks, Inc. All rights reserved. The Evolved CMO in 2014 CMOs Must Ramp Up Business and Technology Acumen §  62% CMOs surveyed globally believe the CIO is a strategic partner in meeting corporate goals §  41% CMOs share common vision with CIO of how marketing and IT teams should work together §  Only 29% CMOs partner with their IT counterpart when buying marketing technology §  31% CMOs use technologies to analyze and respond to customer feedback §  40% CMOs claim they are hindered by the quality of customer data in their organization
  22. ©2014 Extreme Networks, Inc. All rights reserved. Digital Marketing Expertise is Now a ‘Must Have’ for B2B Marketing Organizations 22 13% 19% 26% 29% 34% 39% 44% 50%+ 0% 10% 20% 30% 40% 50% 60% 2009 2010 2011 2012 2013 2014 2015 2016 %ofTotalProgramSpend Digital Marketing Program Spend Source: IDC’s 2014 Tech Marketing Benchmarks Study
  23. ©2014 Extreme Networks, Inc. All rights reserved. IDC - 2014 Marketing Technology Map Digital Transformation of Marketing
  24. ©2014 Extreme Networks, Inc. All rights reserved. Gartner: 2014 Technology Transit Map
  25. ©2014 Extreme Networks, Inc. All rights reserved. 2014 Marketing Technology Landscape
  26. ©2014 Extreme Networks, Inc. All rights reserved. CIOs and CMOs: Power couple or strange bedfellows? Forced marriage of IT and marketing gets off to a rocky start §  Gartner, marketing’s budget 10.5% of revenue; IT budgets averaged 3.5% §  Marketing budget for “digital marketing” was 2.5% in 2012, 3.5% in 2013 §  Gartner IT spending by marketing will rise by an average 9% in 2015
  27. ©2014 Extreme Networks, Inc. All rights reserved. §  Is CDO the next step for the aspiring CIO-Plus? §  The CDO’s job is to turn the digital cacophony into a symphony §  Roughly 20% of CIO’s in a Gartner survey said they played the role of a CDO §  To build great digital capabilities you need to link to your existing IT capabilities/people §  2011 – 75 CDOs. 2013 – 500 CDOs. 2014 – 1,000 CDOs. Should Your CIO be the Chief Digital Officer?
  28. ©2014 Extreme Networks, Inc. All rights reserved. Traditional Business Digital Business Marketing IT Marketing IT
  29. ©2014 Extreme Networks, Inc. All rights reserved. §  100 CDOs serve in large global organizations in 2014, more than double that in 2012 §  By 2015, 25% of large global organizations will have appointed Chief Data Officers §  Over 25% of CDOs are women, almost twice as high as for CIOs (13%) §  By 2014, more than 20% of government organizations will have appointed a CDO Chief Digital Officers
  30. ©2014 Extreme Networks, Inc. All rights reserved. CMOs and CIOs Need to Get Along to Make Big Data Work §  Data-driven companies are 5% more productive and 6% more profitable §  Marketers spend $50 billion on Big Data and analytics capabilities §  Per Gartner, the CMO’s IT budget is expected to outstrip the CIO’s by 2018 §  CMO (customer data) and CIO (Big Data backbone) are natural partners
  31. ©2014 Extreme Networks, Inc. All rights reserved.
  32. ©2014 Extreme Networks, Inc. All rights reserved.
  33. ©2014 Extreme Networks, Inc. All rights reserved. CIO, FCC DAVID BRAY Put culture first Create a culture of "intrepreneurs" Opt for agile adoption in phases
  34. ©2014 Extreme Networks, Inc. All rights reserved. CIO, INTEL KIM STEVENSON No IT projects, only business projects IT should help transform the business Connect to new sources & influential people
  35. ©2014 Extreme Networks, Inc. All rights reserved. CIO, HP RAMON BAEZ Never deploy something the business isn't ready for Form close relationships with the business units Extend innovation beyond IT
  36. ©2014 Extreme Networks, Inc. All rights reserved. CIO, DELL ANDI KARABOUTIS IT must proactively welcome ideas from outside of IT CIOs must form an alliance with CMOs Embrace disruptive technologies, like cloud
  37. ©2014 Extreme Networks, Inc. All rights reserved. CIO, NETFLIX MIKE KAIL Focus on cloud wherever possible IT's charter is to improve business efficiency Partner with line-of-business
  38. ©2014 Extreme Networks, Inc. All rights reserved. CIO, US GSA CASEY COLEMAN Go first and stay ahead Focus on user experience Technology for business sake
  39. ©2014 Extreme Networks, Inc. All rights reserved. CIO University of Mississippi Medical Center DAVID CHOU Drive branding with social media Unify missions of edu, research, patient care Keep organization ahead of the megatrends
  40. ©2014 Extreme Networks, Inc. All rights reserved. CIO, COLORADO KRISTIN RUSSEL Control is an illusion Collaborate to co-create value Innovation is closest to the frontline
  41. ©2014 Extreme Networks, Inc. All rights reserved. CIO, UNH JOANNAYOUNG Be open to innovation Take a 460 degree view Social accelerates contribution
  42. ©2014 Extreme Networks, Inc. All rights reserved. CIO ofADP MIKE CAPONE Responsible for both IT and product dev Guide strategy with peer collaboration Work with CMO on analytics and big data
  43. ©2014 Extreme Networks, Inc. All rights reserved. CIO of San Francisco MARC TOUITOU Customer's business requirements are #1 Simplify. Accelerate. Be the Chief Enthusiast Officer
  44. ©2014 Extreme Networks, Inc. All rights reserved. CIO, SETON HILL PHIL KOMARNY Mobile-first is expected Social media is a learning thing You can’t be relevant without being social
  45. ©2014 Extreme Networks, Inc. All rights reserved. CIO, CELTICS JAY WESSEL Maintain a winning attitude Teamwork across departments Adore what you do. Passion drives excellence
  46. ©2014 Extreme Networks, Inc. All rights reserved. CO-CHAIR, DELOITTE JOHN HAGEL Drive change at the edge of an organization Accept vulnerability as path to earning trust Move to a model of scalable learning
  47. ©2014 Extreme Networks, Inc. All rights reserved. CDO, HARVARD UNIVERSITY PERRY HEWITT Digital should be everyone's job Think from the outside-in Management needs to live digital
  48. ©2014 Extreme Networks, Inc. All rights reserved. VP CONTENT, NE PATRIOTS FRED KIRSCH Know your customers IT infrastructure is a business asset Big Data rewards customer engagement
  49. ©2014 Extreme Networks, Inc. All rights reserved. CIOCaliforniaStateUniversityChannelIslands. MICHAEL BERMAN Marketing understands brand awareness IT helps with analytics, mobile, social media CIO can manage both IT and Marketing
  50. ©2014 Extreme Networks, Inc. All rights reserved. CEO, BOX AARON LEVIE Collaborate with the business IT should be the information enabler Pay attention to where customers are going
  51. ©2014 Extreme Networks, Inc. All rights reserved. CMO, SAP JONATHAN BECHER Be deliberately digital Democratize Business Intelligence Build programs from the audience in
  52. ©2014 Extreme Networks, Inc. All rights reserved. GROUP VP, IDC MIKE FAUSCETTE CMO owns the results of Big Data Customer communication platforms CMO chooses the tools, but CIO makes them work
  53. ©2014 Extreme Networks, Inc. All rights reserved. GROUP VP, GARTNER MARK P. McDONALD The emerging CDO Technology is bigger than IT 14% of total economy now happens online
  54. ©2014 Extreme Networks, Inc. All rights reserved. FOUNDER,ALLTOP.COM GUY KAWASAKI Trust the crowd Social amplifies voice and choice CIOs empower CMOs to focus outwardly
  55. ©2014 Extreme Networks, Inc. All rights reserved. Areas where CMOs become frustrated with CIOs CIO understands marketing requirements Marketing employees understand IT IT employees understand marketing programs Want to enable marketing employees to operate data/content, without IT intervention IT development process is slow and not aligned to the speed of digital marketing Strongly Disagree (%) Strongly Agree 38 38 13 13 38 36 10 18 32 34 11 13 36 33 12 14 38 28 11
  56. ©2014 Extreme Networks, Inc. All rights reserved. Areas where CIOs become frustrated with CMOs Software service needs careful planning CMO understands company’s IT infrastructure IT employees understand marketing programs Marketing pulls in technologies without consideration for IT standards Marketing understands technology Strongly Disagree (%) Strongly Agree 30 40 25 36 38 17 16 31 35 15 15 29 35 14 15 34 33 15
  57. ©2014 Extreme Networks, Inc. All rights reserved. Marketing Success Factors
  58. ©2014 Extreme Networks, Inc. All rights reserved. “The most powerful combination is the CMO and CIO working together with a shared goal to grow the business.”
  59. ©2014 Extreme Networks, Inc. All rights reserved. The new extremenetworks.com §  Responsive user interface §  Adjusts to desktop, mobile and tablets on the fly §  Extend your brand experience across the omni-channel Mobile First
  60. ©2014 Extreme Networks, Inc. All rights reserved. Building a Community §  Contextual intelligence: real-time web personalization §  Understand customer’s needs §  Engage during moment of research The Social Web
  61. ©2014 Extreme Networks, Inc. All rights reserved. “Partner with the CIO organization so that the IT strategy and tactics for the marketing function become shared and unified.”
  62. ©2014 Extreme Networks, Inc. All rights reserved. §  Understand the science behind marketing and sales §  Understand the markets your company servers §  Co-champion marketing and sales innovation §  Value design, emotion, and customer experience §  Connect with people outside of IT and company WHAT CAN CIOs DO TO HELP CMOs
  63. ©2014 Extreme Networks, Inc. All rights reserved. WHAT CAN CMOs DO TO HELP CIOs §  Trust IT expertise §  Promote IT innovation §  Increase your technology IQ §  Monitor emerging marketing tech trends §  Clearly communicate business objectives
  64. ©2014 Extreme Networks, Inc. All rights reserved. Thank You @ValaAfshar “The CIO & CMO: Adversaries No More” Register here: http://www.interop.com/lasvegas/schedule-builder/session-id/22

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