The CIO & CMO – Adversaries No More

Vala Afshar
Author – The Pursuit of Social Business Excellence
Blogger – Huffington Post, Information Week, Inc.
Social Media – Active on Twitter and Slideshare

All Businesses Will Be
Digital Businesses

“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

Top 10 people mentioned by
marketing executives.
The #1 Retweeted and Mentioned Person by Marketers

125 Blog Posts in 2013

700,000 SLIDESHARE VIEWS

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

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

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

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

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

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

90% of Revenue Growth in the Next 10 Years
Will Come From the Third Platform - IDC
14

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

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

2014 CIO Priorities
“Measurement is
fabulous. Unless
you’re busy
measuring what's
easy to measure
as opposed to
what's important.”
– Seth Godin

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

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

CMOs – 2014 and Beyond
How will CMOs and CIOs work together?

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

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

IDC - 2014 Marketing Technology Map
Digital Transformation of Marketing

Gartner: 2014 Technology Transit Map

2014 Marketing Technology Landscape

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

§  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?

Traditional Business Digital Business
Marketing IT Marketing IT

§  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

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

CIO, FCC
DAVID BRAY
Put culture first
Create a culture of "intrepreneurs"
Opt for agile adoption in phases

CIO, INTEL
KIM STEVENSON
No IT projects, only business projects
IT should help transform the business
Connect to new sources & influential people

CIO, HP
RAMON BAEZ
Never deploy something the business isn't ready for
Form close relationships with the business units
Extend innovation beyond IT

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

CIO, NETFLIX
MIKE KAIL
Focus on cloud wherever possible
IT's charter is to improve business efficiency
Partner with line-of-business

CIO, US GSA
CASEY COLEMAN
Go first and stay ahead
Focus on user experience
Technology for business sake

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

CIO, COLORADO
KRISTIN RUSSEL
Control is an illusion
Collaborate to co-create value
Innovation is closest to the frontline

CIO, UNH
JOANNAYOUNG
Be open to innovation
Take a 460 degree view
Social accelerates contribution

CIO ofADP
MIKE CAPONE
Responsible for both IT and product dev
Guide strategy with peer collaboration
Work with CMO on analytics and big data

CIO of San Francisco
MARC TOUITOU
Customer's business requirements are #1
Simplify. Accelerate.
Be the Chief Enthusiast Officer

CIO, SETON HILL
PHIL KOMARNY
Mobile-first is expected
Social media is a learning thing
You can’t be relevant without being social

CIO, CELTICS
JAY WESSEL
Maintain a winning attitude
Teamwork across departments
Adore what you do. Passion drives excellence

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

CDO, HARVARD UNIVERSITY
PERRY HEWITT
Digital should be everyone's job
Think from the outside-in
Management needs to live digital

VP CONTENT, NE PATRIOTS
FRED KIRSCH
Know your customers
IT infrastructure is a business asset
Big Data rewards customer engagement

CIOCaliforniaStateUniversityChannelIslands.
MICHAEL BERMAN
Marketing understands brand awareness
IT helps with analytics, mobile, social media
CIO can manage both IT and Marketing

CEO, BOX
AARON LEVIE
Collaborate with the business
IT should be the information enabler
Pay attention to where customers are going

CMO, SAP
JONATHAN BECHER
Be deliberately digital
Democratize Business Intelligence
Build programs from the audience in

GROUP VP, IDC
MIKE FAUSCETTE
CMO owns the results of Big Data
Customer communication platforms
CMO chooses the tools, but CIO makes them work

GROUP VP, GARTNER
MARK P. McDONALD
The emerging CDO
Technology is bigger than IT
14% of total economy now happens online

FOUNDER,ALLTOP.COM
GUY KAWASAKI
Trust the crowd
Social amplifies voice and choice
CIOs empower CMOs to focus outwardly

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

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

Marketing Success Factors

“The most powerful combination
is the CMO and CIO working
together with a shared goal to
grow the business.”

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

Building a Community
§  Contextual intelligence: real-time web personalization
§  Understand customer’s needs
§  Engage during moment of research
The Social Web

“Partner with the CIO organization
so that the IT strategy and tactics
for the marketing function become
shared and unified.”

§  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

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

Thank You
@ValaAfshar
“The CIO & CMO: Adversaries No More”
Register here: http://www.interop.com/lasvegas/schedule-builder/session-id/22

The CIO & CMO – Adversaries No More

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