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Bridging the technology and marketing
         divide for ecommerce success

                                 Presented by Smart Destinations’ CTO
                                 Matt Higgins and CMO Rob Schmults


          Listen to audio using your computer’s microphone & speakers (VoIP) or dial in:
          United Kingdom: +44 (0) 203 318 4024
          United States: +1 323 417 4600
          Access Code: 468-965-365



Elastic Path™
Introducing
  Elastic Path Software

      • Provides an enterprise ecommerce platform, hosting,
        full outsourcing, and consulting
      • Giving enterprises the flexibility to move between
        these models at any time
      • #1 ecommerce blog www.getelastic.com
      • For more on-demand ecommerce resources:
        www.elasticpath.com/resources




Elastic Path™
Agenda


  •   A Modern Fairytale
  •   Marketing Needs to Step Up
  •   IT Can Do More
  •   Good News For Everyone




Elastic Path™                      3
Once Upon a Time…

                                      IT only had to work
                                      with logical, process
                                      driven folks who
                                      understood the value of
                                      fault tolerant systems
         Marketing lived in a happy
         place where 50% of its
         efforts were wasted (but     Their two worlds were
         no one knew or cared         buffered by a handy
         which 50%)                   layer of finance and
                                      operations




Elastic Path™                                     4
Things Changed in a Hurry

  • The arrival of the web created the need for
    new organizational dynamics
  • Skunk works operations to….
        spin-outs to….
              an integrated sub-department to….
                    a free-standing business unit
  • Very quickly relationships between IT and
    marketing changed forcing a high degree of
    collaboration

Elastic Path™                          5
Collaboration or When Worlds Collide?

  View from “IT”                View from “Marketing”
  – Rolling 90 day plan         – Short term focus
  – Change = Risk               – “Do it/Fix it”
  – Enterprise systems          – Enterprise systems are
  rightly get top priority      utilities
  – IT a cost (and blame)       –IT a gate keeper (almost
  center                        as bad as legal)
  – See Marketing as fickle,    –IT is slow, a source of
  prone to overpromising,       unnecessary complexity
  and not held accountable



Elastic Path™                           6
The Challenge for Both Marketing and IT

  • Web raised expectations of executives and
    customers to new heights
  • Growing source of profits dependent on a
    whole new set of systems that move at an
    unprecedented pace
  • While legacy systems and channels still need
    to be supported
        – increasingly integrated with online



Elastic Path™                                   7
Agenda


  •   A Modern Fairytale
  •   Marketing Needs to Step Up
  •   IT Can Do More
  •   Good News For Everyone




Elastic Path™                      8
Marketing Needs to Sharpen its Game

  Not easy to beat reality into submission
  • Cannot afford to be ignorant of how
    development and delivery works
  • Building is ceasing to be equated with running
    a web store
  • It is now possible to understand which 50% is
    wasted – so focus on what matters



Elastic Path™                         9
Why Are Projects Always Late?
  • Andersen study showed that 50% of projects
    are OVER 50% late and over-budget
  • Easy to point fingers at IT
  • Two main areas projects get derailed:
        – Up-front requirements ill-defined
        – Scope change during project

  Spend the time to get clear on what you want,
  and get clarity on the impact of changes to
  scope (ask if they are worth it)

Elastic Path™                                 10
Building vs. Running: Shiny Objects

  • Arms Race Mentality

          "Gap's new sites leapfrog every other retail site out
           there today," said Carrie Johnson, a retail analyst
           with Forrester Research, an online consulting firm.
           "They're providing a customer experience that
           other retailers will quickly try to figure out how to
           copy." – NYT 9/12/2005

        – …this leads to “mini-cart mania”

Elastic Path™                                     11
Building vs. Running: Missing What Matters
  • Pixels or Inventory?
        – A leading apparel brand’s web team focused obsessively
          on image pixel counts – a commendable focus on brand
          integrity
        – Meanwhile no one worked on restocking core sizes of best
          sellers
                         • A dirty store can hurt sales, but
                           stock-outs eliminate them
                             • Physical store managers obsess
                               about inventory and merchandising,
                               not about upgrading window glass or
                               installing talking price tags

Elastic Path™                                      12
The Great Cop-out is Over

  • World of budget based marketing ending with
    marketers increasingly stapled to a bottom
    line
  • Dev efforts increasingly given the level of
    scrutiny marketing campaigns have started to
    receive – what is the ROI?
  • News used to be just about ecommerce
    leaders rising – now they are falling too


Elastic Path™                        13
Agenda


  •   A Modern Fairytale
  •   Marketing Needs to Step Up
  •   IT Can Do More
  •   Good News For Everyone




Elastic Path™                      14
Avoid Us vs. Them

  • Marketing not actually the enemy
        – If they are, then what does that
          make the customer?
  • Easier for an engineer to become a marketer
    than vice versa, so meet them more than
    halfway
  • Wear a company hat rather than a silo hat
        – Help drive the trade-offs vs. use them as an anchor
        – Managing risk still important, but put it onto the
          scales or risk/reward rather than blindly guard
Elastic Path™                                  15
IT Cannot Simply Be Order Takers
• Doing exactly is what asked gives a passive
  aggressive thrill…but it’s better to be a thought
  partner
      – What are the goals?
      – Force rank priorities
• Proactively help craft achievable requirements
      – Clearly articulate the long poles
      – Offer alternative paths vs. accepting uninformed
        designs
      – Change orders are about saying “yes” rather than
        “no”
Elastic Path™                                16
Agenda


  •   A Modern Fairytale
  •   Marketing Needs to Step Up
  •   IT Can Do More
  •   Good News For Everyone




Elastic Path™                      17
Landscape Changes
  • ASP phenomena: minimize IT involvement
        – Lighter weight skill requirements to integrate and
          manage
        – Support and upgrades someone else’s responsibility
  • “Marketing interfaces”
        – Technology not just for technologists
        – Let marketing serve itself
  • Fading of the “shiny object?”
        – Recession may have been at least a partial cure for
          marketing’s confusion of could with should

Elastic Path™                                     18
Personnel Changes

  • Increasingly have people with varied
    backgrounds in key roles, lessens myopia
  • Contact has breed an understanding, with IT
    understanding marketing and (increasingly)
    marketing understanding IT
  • Elapsed time since Al Gore’s invention allows
    for more specialization, expertise, and lessons
    learned


Elastic Path™                          19
How it Works in Practice

  • Marketing put product reviews on priority list
  • Didn’t micro manage beyond requirements
    definition
  • IT able to present recommendation that
    balance implementation effort and cost with
    capability
  • Reviews successfully launched within 2 weeks



Elastic Path™
Q&A

                www.elasticpath.com/resources



Elastic Path™

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Bridging the Technology and Marketing Divide for Ecommerce Success

  • 1. Bridging the technology and marketing divide for ecommerce success Presented by Smart Destinations’ CTO Matt Higgins and CMO Rob Schmults Listen to audio using your computer’s microphone & speakers (VoIP) or dial in: United Kingdom: +44 (0) 203 318 4024 United States: +1 323 417 4600 Access Code: 468-965-365 Elastic Path™
  • 2. Introducing Elastic Path Software • Provides an enterprise ecommerce platform, hosting, full outsourcing, and consulting • Giving enterprises the flexibility to move between these models at any time • #1 ecommerce blog www.getelastic.com • For more on-demand ecommerce resources: www.elasticpath.com/resources Elastic Path™
  • 3. Agenda • A Modern Fairytale • Marketing Needs to Step Up • IT Can Do More • Good News For Everyone Elastic Path™ 3
  • 4. Once Upon a Time… IT only had to work with logical, process driven folks who understood the value of fault tolerant systems Marketing lived in a happy place where 50% of its efforts were wasted (but Their two worlds were no one knew or cared buffered by a handy which 50%) layer of finance and operations Elastic Path™ 4
  • 5. Things Changed in a Hurry • The arrival of the web created the need for new organizational dynamics • Skunk works operations to…. spin-outs to…. an integrated sub-department to…. a free-standing business unit • Very quickly relationships between IT and marketing changed forcing a high degree of collaboration Elastic Path™ 5
  • 6. Collaboration or When Worlds Collide? View from “IT” View from “Marketing” – Rolling 90 day plan – Short term focus – Change = Risk – “Do it/Fix it” – Enterprise systems – Enterprise systems are rightly get top priority utilities – IT a cost (and blame) –IT a gate keeper (almost center as bad as legal) – See Marketing as fickle, –IT is slow, a source of prone to overpromising, unnecessary complexity and not held accountable Elastic Path™ 6
  • 7. The Challenge for Both Marketing and IT • Web raised expectations of executives and customers to new heights • Growing source of profits dependent on a whole new set of systems that move at an unprecedented pace • While legacy systems and channels still need to be supported – increasingly integrated with online Elastic Path™ 7
  • 8. Agenda • A Modern Fairytale • Marketing Needs to Step Up • IT Can Do More • Good News For Everyone Elastic Path™ 8
  • 9. Marketing Needs to Sharpen its Game Not easy to beat reality into submission • Cannot afford to be ignorant of how development and delivery works • Building is ceasing to be equated with running a web store • It is now possible to understand which 50% is wasted – so focus on what matters Elastic Path™ 9
  • 10. Why Are Projects Always Late? • Andersen study showed that 50% of projects are OVER 50% late and over-budget • Easy to point fingers at IT • Two main areas projects get derailed: – Up-front requirements ill-defined – Scope change during project Spend the time to get clear on what you want, and get clarity on the impact of changes to scope (ask if they are worth it) Elastic Path™ 10
  • 11. Building vs. Running: Shiny Objects • Arms Race Mentality "Gap's new sites leapfrog every other retail site out there today," said Carrie Johnson, a retail analyst with Forrester Research, an online consulting firm. "They're providing a customer experience that other retailers will quickly try to figure out how to copy." – NYT 9/12/2005 – …this leads to “mini-cart mania” Elastic Path™ 11
  • 12. Building vs. Running: Missing What Matters • Pixels or Inventory? – A leading apparel brand’s web team focused obsessively on image pixel counts – a commendable focus on brand integrity – Meanwhile no one worked on restocking core sizes of best sellers • A dirty store can hurt sales, but stock-outs eliminate them • Physical store managers obsess about inventory and merchandising, not about upgrading window glass or installing talking price tags Elastic Path™ 12
  • 13. The Great Cop-out is Over • World of budget based marketing ending with marketers increasingly stapled to a bottom line • Dev efforts increasingly given the level of scrutiny marketing campaigns have started to receive – what is the ROI? • News used to be just about ecommerce leaders rising – now they are falling too Elastic Path™ 13
  • 14. Agenda • A Modern Fairytale • Marketing Needs to Step Up • IT Can Do More • Good News For Everyone Elastic Path™ 14
  • 15. Avoid Us vs. Them • Marketing not actually the enemy – If they are, then what does that make the customer? • Easier for an engineer to become a marketer than vice versa, so meet them more than halfway • Wear a company hat rather than a silo hat – Help drive the trade-offs vs. use them as an anchor – Managing risk still important, but put it onto the scales or risk/reward rather than blindly guard Elastic Path™ 15
  • 16. IT Cannot Simply Be Order Takers • Doing exactly is what asked gives a passive aggressive thrill…but it’s better to be a thought partner – What are the goals? – Force rank priorities • Proactively help craft achievable requirements – Clearly articulate the long poles – Offer alternative paths vs. accepting uninformed designs – Change orders are about saying “yes” rather than “no” Elastic Path™ 16
  • 17. Agenda • A Modern Fairytale • Marketing Needs to Step Up • IT Can Do More • Good News For Everyone Elastic Path™ 17
  • 18. Landscape Changes • ASP phenomena: minimize IT involvement – Lighter weight skill requirements to integrate and manage – Support and upgrades someone else’s responsibility • “Marketing interfaces” – Technology not just for technologists – Let marketing serve itself • Fading of the “shiny object?” – Recession may have been at least a partial cure for marketing’s confusion of could with should Elastic Path™ 18
  • 19. Personnel Changes • Increasingly have people with varied backgrounds in key roles, lessens myopia • Contact has breed an understanding, with IT understanding marketing and (increasingly) marketing understanding IT • Elapsed time since Al Gore’s invention allows for more specialization, expertise, and lessons learned Elastic Path™ 19
  • 20. How it Works in Practice • Marketing put product reviews on priority list • Didn’t micro manage beyond requirements definition • IT able to present recommendation that balance implementation effort and cost with capability • Reviews successfully launched within 2 weeks Elastic Path™
  • 21. Q&A www.elasticpath.com/resources Elastic Path™

Editor's Notes

  1. Over simplifying, but probably not excessively so…
  2. Friction between IT and marketing really a problem Web has been declared central to the strategic plans of retailers such as Wal-Mart, JC Penny, staples; has completely taken over travel; is at the center of financial firms relationships with the customers, etc.But unlike the POS, WMS, and financial systems, marketing own this one.Makes it tough for IT
  3. Problem with the conflict is that for much of it both sides are right. Marketing does need the ability to move faster online but IT does still have to do its day job and keep the POS, WMS, financial, and other systems that the enterprise depends on runningIndustry has been responding:ASP in areas like reporting, testing, imaging, user generated contentSoftware providers increasingly got message that they needed to not just design for an IT crowdMarketing got away with murder by being focused on building instead of selling