This document discusses organizational structures for digital, customer-centric companies. It outlines seven characteristics of a digital culture, including being customer-centric, data-driven, collaborative, and agile. Traditional structures are organized around control and reporting rather than capabilities and outcomes. The roles of Chief Digital Officer and Chief Customer Officer are rising to help lead digital transformations and ensure a customer focus across channels. Companies are evolving through five stages from digital teams to full business transformations under a CCO. Case studies demonstrate how some organizations have successfully implemented digital and customer-centric strategies.

1. Copyright © Econsultancy
@AshleyFriedlein
A Blank Sheet For Organisational
Structure In A Digital, Customer-
Centric World
October 2015
Ashley Friedlein
President, Centaur Marketing & Founder, Econsultancy

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Digital Transformation
• The journey towards being a
digital organisation
• “Digital” means:
– Focusing on the customer
experience irrespective of channel
– Having a digital culture

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The 7 defining characteristics of a digital culture
1. Customer-centric
2. Data-driven
3. Makers & Doers
4. Transparent
5. Collaborative
6. Learning
7. Agile

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“Organizations are structured
around control mechanisms
and reporting, not around
capabilities and outcomes."
“Organizing Marketing in the Digital Age”, Econsultancy, 2015

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How to organise?

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How to organise?

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How to organise?

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The rise of the Chief Digital Officer (CDO)…
Now 1,000+ CDOs globally and the number has
doubled every year for the last few years.
Gartner predicted 25% of businesses would have
a CDO by the end of this year.
According to the
CDO Club salaries
for a Chief Digital
Officer range from
$89,000 to
$600,000, with the
median falling
between $250,000
and $300,000.

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…and the Chief Customer Officer (CCO)
Source: The CCO Council 2014 CCO Study

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What I learned about CDOs
• ‘Ambassador’ CDO vs ‘Transformer’ CDO
• CDO + CMO not a great idea
• CDO runs marketing, digital/tech, product
• CDOs next job? CEO.

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What I learned about CCOs
• Strategic driver = competitive advantage through
customer-centricity and integrated channels
• Big teams and P&L responsibility
• CCO combines CDO and CMO roles
• CCOs have significant, if not complete, control of
technology, data, digital, insight, innovation. In some
cases customer service and, depending on company size,
all the physical (store, branch, call centre etc) operations.
• CCOs next job? CEO.

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The five stage of evolution towards true multi-
channel customer-centricity
5
Job done
CEO
(and CMO,
CTO, CFO etc)
4
Business
Transformation
Chief Customer
Officer
3
Digital Leader
‘Transformer’
Chief Digital
Officer
1
Digital Team
Head of Digital
2
Digital
Figurehead
‘Ambassador’
Chief Digital
Officer

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UK Government Digital Service
3.4

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Tate
3.7• Published in 2013
• Third iteration of
digital strategy
• Published under
Creative
Commons
• “Digital as a
Dimension of
Everything”

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Capital One
3.9• A bank creating
differentiated experience
through digital
• “Digital is who we are
and how we do
business.” Richard
Fairbank, CEO
• 100% agile adoption

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House of Fraser
4.1• CCO with digital and
multichannel chops
• Head of “Find it”
• Head of “Research it”
• Head of “Buy it”

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Burberry
4.3
• A vision from 2006
• Financial and customer
success
• From the CEO throughout
the business
• Continual innovation

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“I will focus on … the
convergence and
integration of our retail
and e-commerce, digital,
card and mobile assets
around the world …
develop "next-generation
retailing"
Starbucks
4.6

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Future competitive (martech) advantage?
1. Join up data and systems, then…
2. Deliver experiences that are consistent, synced
and responsive across devices/channels, then…
3. Make them personalised, proactive and
contextual
“The era of living services”
FJORD

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