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Chief Marketing Technologists
Symbolize Marketing’s Changing Role
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended
audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected,
and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Laura McLellan
laura.mclellan@gartner.com
@lauramclellan
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Talk about making a big splash …
1
“By 2017, the CMO will spend more on IT* than the CIO”
* Technology and technology-enabled services from external marketing service
providers
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Preview
2
• It's no secret that companies increasingly rely on marketing to
achieve key business objectives. Nor that marketing relies on
technology and data to accomplish this. As a result, demand for
dedicated marketing technology expertise is high.
• Organizational solutions to meet the need go far beyond adding
skills and capabilities – they need to simultaneously
accommodate profound changes in the role marketing plays.
• The best chief marketing technologists accelerate the shift from
traditional governance, sourcing, and risk management to agile
processes, a results mindset and culture of innovation. This
presentation distills the most critical trends and ramifications.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Storyline
3
• What’s happening
• What’s the impact
• What are the implications
• Where chief marketing technologists fit in
• What’s next
What’s happening is digital disruption ...
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
4
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Disruption at the business level …
5
Disruption at the technology level …
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
6
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Disruption at the people level …
7
8
Major impacts to marketing
The customer is now in charge
The sales funnel is blown to bits
The economy is all about the experience
Data is the driver of decisions
Innovative technology underlies it all
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: the customer is now in charge
9
Very brand
loyal
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: the sales funnel is blown to bits
10
Web or e-
commerce
50.4
Mobile
commerce
22.3
Social
commerce
18.3
Other
8.9
Q: What percentage of your revenue
realized from digital commerce this
year is attributed to the following
channels?
Percentage of Revenue
n= 211
Excludes Don’t know
46
37
9
8
0 10 20 30 40 50
Yes, marketing has its
own P&L today
Yes, but marketing shares
the P&L with one or more
business units
No, but we plan to have a
P&L in the next 24 months
No, we have no plans for
marketing to have its own
or a shared P&L
Percentage of Respondents
Q: Does your marketing organization have
its own P&L to capture revenue from
sales that are made through digital
channels?
n=274.
Excludes DK.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: the economy is all about the experience
11
1
2
7
8
43
63
91
55
30
0 10 20 30 40 50 60 70 80 90 100
2 years from now
Today
2 years ago
Percentage of Respondents
Bottom Two Middle Three Top Two
4.8
5.6
6.4
Mean
Score
1 - Does Not
Compete On
7 - Entirely
Competes On
Q: Please rate to what degree your organization competes on the basis of the customer experience over the
following timescales on a scale of 1 to 7 where 1 = does not compete on and 7 = entirely competes on
Two years from now 90% of marketers say they will compete
almost entirely on the basis of the customer experience
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact – data is the driver of decisions
(also shared and sold)
12
Yes
54%
No
46%
Yes
75%
No
25%
Yes
87%
No
13%
Sell or share data?
n = 226
21
58
62
21
36
57
18
20
35
12
25
29
7
16
32
Embryonic
Intermediate
Progressive
Share data with sales
channel partners to
improve sales
Share data with mktg
agency partners to
improve advertising
effectiveness &
accountability
Share data with top
customers to improve
loyalty
Sell data to our best
customers
Sell data to big data
collection companies
Q: To what degree is your organization currently monetizing its aggregated data to customers or sales channel partners?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Impact: innovative technology underlies it all
13
Percentage of Respondents
22% 23% 18% 22%
39%
44%
32%
43%
30% 23%
40%
27%
6% 9% 8% 5%
3% 1% 2% 3%
Capital
expenditures for
technology
Technology
expenses
Cross-charged
expenses from
Internal IT
Expenses for Mktg
Svc Providers
Expect significant
decrease
Expect slight
decrease
No change
Expect slight
increase
Expect significant
increase
Q: Over the next 2 years, do you expect your organization to increase or decrease investments in these areas?
61% 50%67% 65%
n = 244
14
Major implications
Marketing’s role is expanding
IT moves to a bimodal organization
CEO’s shift investment priorities
Marketers are equally technologists
Budget (& complexity) rises
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – marketing’s role is expanding
15
The Digital CMO and their organizations
are responsible for mastering technology
and digital techniques to improve all
marketing customer-related processes
and grow the business by:
• defining markets
• developing & managing offerings
• attracting, acquiring and retaining
customers.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – IT moves to a bimodal organization
16
Reliability Goal Agility
Price for
performance
Value
Revenue, brand,
customer experience
Waterfall, V-Model,
high-ceremony IID
Approach
Agile, kanban, low
ceremony IID
Plan-driven,
approval-based
Governance
Empirical, continuous,
process-based
Enterprise
suppliers, long-term
deals
Sourcing
Small, new vendors,
short-term deals
Good at
conventional
process, projects
Talent
Good at new and
uncertain projects
IT-centric, removed
from customer
Culture
Business-centric, close
to customer
Long (months) Cycle Times Short (days, weeks)
Think
Marathon
Runner
.
Think
Sprinter
Mode 1 Mode 2
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – CEOs shift investment priorities
17 n = 410 CEO’s & Sr. Bus. Executives
Q: Which five technology enabled capabilities will be the most important areas of investment to improve
your business over the next 5 years?
20
20
22
23
24
27
32
34
34
38
0 10 20 30 40
Product cost analytics
M-commerce
Supply chain optimisation and traceability
Enterprise mobility
Big Data / Data science
Cloud business
Business analytics
Customer experience management
E-commerce
Digital Marketing
Percentage of Respondents
Multiple choices allowed
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication - organization adds new roles
VP Marketing
Digital Marketing
Manager
Mgr. Social
Marketing
Mgr. Mobile
Marketing
Mgr. Content
Marketing
Marketing
Analytics Mgr
DM Center of
Excellence
Marketing
Business Analyst
Dig Mktg.
Measurement
Branding
Digital
Commerce
Dig Mktg
Sourcing
DM Systems
Integration
Multichannel
Marketing
Partner
Marketing
Chief marketing
technologist
Data Executive
Digital Marketing
Bus. Strategist
CMOChief Digital
Officer
Chief Customer
Officer
Innovation
Executive
DM
Operations
Traditional
Marketing
Field Marketing
Corporate
Communications
Digital Offering
Development
Internal IT
Liaison
18
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – marketers are equally technologists
19
Creative
marketing
skills
Technology
marketing
skills
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Implication – budget (+ complexity) rises
20
10.4%
2.5%
10.7%
3.1%
Total Marketing Digital Marketing
2012 2013
Budget as % of Revenue
+ 20%
n = 285 (2013) & 203 (2012) Share background
* Companies with revenue > $500M
21
Chief marketing technologists
CMTs come of age
CMTs become ubiquitous
CMT responsibilities continuum
CMTs improve marketing/IT dynamic
CMTs help push adoption of adaptive
sourcing
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
The chief marketing technologist comes of age
22
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
81% of large companies now have the
equivalent of a chief marketing technologist
23
Chief Marketing Technologist: The equivalent of a CTO and CIO dedicated to marketing, familiar with all kinds of
marketing software, data and analytics, social and mobile platforms, content marketing, Web mechanics, and
digital advertising networks, among other topics.
81%
do
2012
83%
Have a
marketing
innovation
budget
80%
Have a
marketing
capital
budget
n = 285 Q: Specify whether your organization presently has the equivalent of a Chief Marketing Technologist
in 2013
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CMT responsibilities continuum
24
50
59
63
65
67
0 50 100
Craft technology-enabled digital business models
Prioritize funding for marketing technologies
Select, evaluate and choose marketing technology providers
Facilitate projects and communications between marketing and
internal IT
Align marketing technology with business goals
Percentage of Respondents
Set mktg. tech. strategy
Mktg. tech. roadmap
Mktg. tech. budgets
“ Provider selection
Training/change mgmt.
CMO advisor
De facto CDO
Cross-functional customer focus
Digital transformation
Innovation leader
Incubator leader
C-suite advisor
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CMTs are helping shift the marketing/IT dynamic
25
Independence:
"We're going to
keep on doing our
own thing with our
own budget."
Secession:
"We'll appoint a CDO
or Marketing CTO to
manage all things
digital.
Collaboration:
"We have to figure
out how to work
together with
marketing."
Innovation:
"We'll work together on this
and break away from the
competition with new and
better practices and use of
technology."
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
… to CIO or Shared-service COO
CMTs play a key role in adoption of adaptive sourcing
… to Business Units, Supply Chain,
Process Owners
… to R&D, Chief Digital Officer, Chief
Marketing Officer
Decision
Owner From the CIO, CFO or
the Board …
Innovate
Differentiate
Run
The move from rigid outsourcing & project contracts … to partnering,
crowdsourcing, CSI, BPaaS, JVs, Spin-off, M&A, agile development
27
What’s next
CMTs expand their role in innovation
More consolidation of sales & marketing
Marketing technology integration
Gartner for Marketing Leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
3 upcoming “flash points”
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CMTs expand their role in innovation
Does the innovation team
aim to drive specific
innovations forward, or
enable others to innovate?
Does the team aim to
leverage existing
pockets of innovation,
or unleash new
innovators?
Everyone
Responder
Helps business units deploy
new technologies through a
tactical and pragmatic
"SWAT" team approach.
Respond
Will the team invent
fundamentally new
approaches, or apply
and adapt existing
and emerging ideas
and capabilities?
Lead
Scholar
Investigates technologies
ahead of business need
through primary research
and development.
Invent
Navigator
Determines the strategic
business impact of
emerging technologies,
through tracking,
evaluation, and piloting.
Adapt
Pollinator
Encourages and mentors
distributed innovation
activities throughout the
organization.
Unleash
Will the team
primarily respond to
business
suggestions, or lead
and inspire the
business leaders?
Drive
Will the team work
primarily with
executive decision
makers, or a broad
base of managers
and teams?
Enable
Conductor
Coordinates and
leverages emerging
technology activities
performed in other parts
of the organization.
Leverage
$
Suitable for part-time or resource-constrained teams$
Counselor
Educates senior
management on emerging
technology issues
and potential.
Executives
$
29
Percentage of
Respondents
Q: In order to fund digital marketing, which of the following statements are true?
40 41
28 27 28
Not
asked
44 43
35
31 32
22
74 73
54
60 59
51
0
10
20
30
40
50
60
70
80
We are funding digital
marketing from within
the existing marketing
budget and squeezing
spending on multiple
other marketing
activities
We are saving money
with digital marketing as
opposed to traditional
marketing and the
savings is funding
continued investments
We reduced our
traditional advertising
budget
We obtained
incremental funding for
digital marketing from
other functions or
business units
We justified a net
addition to the
marketing budget for
digital marketing
activities without cutting
elsewhere
We obtained funding for
digital mktg from
reductions in sales
budget because buyers
have changed their
purchase journey and
digital mktg activities
replace some activities
previously performed by
sales
2012 (n=253) 2013 (n=285) 2014 (n=199)*
- - Marketing reinvestment - -
- - Incremental - -
- - Sales - -
Gartner for Marketing Leaders
More consolidation of sales & marketing
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
CSP = communication service provider;
DM = digital marketing;
DMP = data management platform;
DOOH = digital out-of-home;
NFC = near-field communication;
OTT= over-the-top;
PM = program management;
RT = real time;
SEM = search engine marketing;
SEO = search engine optimization;
UX = user experience;
UXP = user experience platform
Product Station
Vendor Station
Offline Connection
AD OPS
DATA OPS
MOBILITY
WEB OPS
SOCIAL OPS
DESIGN
MARKETING OPS
CREATIVE
Connection
to CMO
Connections to
Sales and Service
Connection to
General Advertising
Connection
to IT Connection to
Business Intelligence
Web Content Mgmt.
Web Analytics
Virtual
Actors
Video Ad
Networks
Video Ad Mgmt.
Venues
User Groups
UXP
UX Design
Tag
Mgmt.
Social TV
Social
Networks
Social Mktg.
Mgmt.
Social Commerce
Social Apps
Social
Analytics
Social Ads
Smart Kiosks
Site Retargeting
Search Retargeting
Search
Engines
SEO Tools
SEM Platforms
Rich Media
Search
Real-Time
DecisioningQR Codes
Programmatic Media
Program
Guide
Promo
Reviews & Recs
Embedded
Merch
Product Design
Compliance
Predictive
Campaign
Analytics
OTT
Video Online Video Publishing
Online
Retailers
Data Exchanges
NFC
Natural
Language
Questioning
Native
Ads
Campaign
Mgmt.
Mobile Search
Mobile Messaging
& Commerce
Mobile Media
& Targeting
Mobile App &
Content Svs Mobile App
Marketplace
Mobile
Analytics
Mobile Ad
Networks
Microsensors
Media
Labs
Media
Companies
Media Agencies
Marketing
Service
Providers
Mktg.
Resource
Mgmt.
Management
Consultants
Marketing
Analytics
Lead
Mgmt.
In-Game
Ads
Idea Mgmt.
IT Service
Providers
Geotargeting
Geofencing
Gamification
Tools
Finger-
printing
Experience Targeting
Emotion
Detection
Email Mktg.
E-Commerce
Enablers
Dynamic Creative
DOOH Media
Svcs
Digital Offers
Media Metrics
Digital Asset Mgmt.
Digital
Agencies
Data
Warehouses
DMP
Customer Analytics
Crowdsourcing
Content Marketing
Data Providers
Communities
CSPs
Census and
Panel Data
Business
Process
Outsourcers
Blogs
Automatic Content
Recognition
Augmented
Reality
Attribution
Agile Mktg. PM
Agency Holding
Companies
Advocacy
Mktg.
Addressable
TV
Ad Verification
Online Ad
Networks
Ad Exchanges
A/B Testing
MOBILE
STRATEGY
EMERGING TECH
ANALYTICS
AD TECH
UX
SOCIAL
COMMERCE
Mktg. Mgmt.
SEARCH
CREATIVE
RT DATA
Marketing technology integration –
via software as well as service integrators
DM HUB
Analy-
tics
Ad
Tech
User
Exp.
Digital
Comm
Mktg
Ops
Search
MARKETING
HUB
Social
Mobile
30
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Three upcoming “flash points”
31
Modifying processes and updating underlying
technologies to create a holistic customer
experience - between Marketing, Customer Service
and Sales, if not more broadly
Replacing your e-commerce platform with
a customer-centric digital commerce
ecosystem, including elements run by
marketing
Developing new “internet of
things”-influenced digital
products and services
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Storyline revisited
32
• Digital disruption on a broadening scale
• Main impacts on marketing:
* Customer in charge * Sales funnel blown up
* Experience economy * Data & analytics = driver
* Innovative technology underlies it all
• Major implications:
* Mktg. role expanding * IT moves to bimodal org.
* Marketers as technologists * CEO investment priorities
* Budget & complexity rises
• Chief marketing technologists:
* Come of age & are ubiquitous * Continuum of responsibilities
* Improving Mktg./IT dynamic * Promote adaptive sourcing
• What’s next
* Expanded role in innovation * Mktg/sales consolidation
* Mktg technology integration * 3 “flash points”
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
Gartner for Marketing Leaders
Recommended reading
33
• Strategic Pressures Expand the Chief Marketing
Technologist Mandate G00266856
• Find a Chief Marketing Technologist to Seize Business
Advantage G00262061
• What the Chief Marketing Technologist Needs to Know
About the Digital Marketing Hype Cycle G00266857
• How the Presence of a Chief Marketing Technologist
Impacts Marketing G00259204
• HBR article “The Rise of the Chief Marketing
Technolgist” available free at
http://www.gartner.com/marketing/digital/
Chief Marketing Technologists
Symbolize Marketing’s Changing Role
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended
audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected,
and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Laura McLellan
laura.mclellan@gartner.com
@lauramclellan

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Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan

  • 1. Chief Marketing Technologists Symbolize Marketing’s Changing Role This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Laura McLellan laura.mclellan@gartner.com @lauramclellan
  • 2. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Talk about making a big splash … 1 “By 2017, the CMO will spend more on IT* than the CIO” * Technology and technology-enabled services from external marketing service providers
  • 3. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Preview 2 • It's no secret that companies increasingly rely on marketing to achieve key business objectives. Nor that marketing relies on technology and data to accomplish this. As a result, demand for dedicated marketing technology expertise is high. • Organizational solutions to meet the need go far beyond adding skills and capabilities – they need to simultaneously accommodate profound changes in the role marketing plays. • The best chief marketing technologists accelerate the shift from traditional governance, sourcing, and risk management to agile processes, a results mindset and culture of innovation. This presentation distills the most critical trends and ramifications.
  • 4. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Storyline 3 • What’s happening • What’s the impact • What are the implications • Where chief marketing technologists fit in • What’s next
  • 5. What’s happening is digital disruption ... Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved 4
  • 6. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Disruption at the business level … 5
  • 7. Disruption at the technology level … Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved 6
  • 8. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Disruption at the people level … 7
  • 9. 8 Major impacts to marketing The customer is now in charge The sales funnel is blown to bits The economy is all about the experience Data is the driver of decisions Innovative technology underlies it all Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved
  • 10. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: the customer is now in charge 9 Very brand loyal
  • 11. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: the sales funnel is blown to bits 10 Web or e- commerce 50.4 Mobile commerce 22.3 Social commerce 18.3 Other 8.9 Q: What percentage of your revenue realized from digital commerce this year is attributed to the following channels? Percentage of Revenue n= 211 Excludes Don’t know 46 37 9 8 0 10 20 30 40 50 Yes, marketing has its own P&L today Yes, but marketing shares the P&L with one or more business units No, but we plan to have a P&L in the next 24 months No, we have no plans for marketing to have its own or a shared P&L Percentage of Respondents Q: Does your marketing organization have its own P&L to capture revenue from sales that are made through digital channels? n=274. Excludes DK.
  • 12. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: the economy is all about the experience 11 1 2 7 8 43 63 91 55 30 0 10 20 30 40 50 60 70 80 90 100 2 years from now Today 2 years ago Percentage of Respondents Bottom Two Middle Three Top Two 4.8 5.6 6.4 Mean Score 1 - Does Not Compete On 7 - Entirely Competes On Q: Please rate to what degree your organization competes on the basis of the customer experience over the following timescales on a scale of 1 to 7 where 1 = does not compete on and 7 = entirely competes on Two years from now 90% of marketers say they will compete almost entirely on the basis of the customer experience
  • 13. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact – data is the driver of decisions (also shared and sold) 12 Yes 54% No 46% Yes 75% No 25% Yes 87% No 13% Sell or share data? n = 226 21 58 62 21 36 57 18 20 35 12 25 29 7 16 32 Embryonic Intermediate Progressive Share data with sales channel partners to improve sales Share data with mktg agency partners to improve advertising effectiveness & accountability Share data with top customers to improve loyalty Sell data to our best customers Sell data to big data collection companies Q: To what degree is your organization currently monetizing its aggregated data to customers or sales channel partners?
  • 14. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Impact: innovative technology underlies it all 13 Percentage of Respondents 22% 23% 18% 22% 39% 44% 32% 43% 30% 23% 40% 27% 6% 9% 8% 5% 3% 1% 2% 3% Capital expenditures for technology Technology expenses Cross-charged expenses from Internal IT Expenses for Mktg Svc Providers Expect significant decrease Expect slight decrease No change Expect slight increase Expect significant increase Q: Over the next 2 years, do you expect your organization to increase or decrease investments in these areas? 61% 50%67% 65% n = 244
  • 15. 14 Major implications Marketing’s role is expanding IT moves to a bimodal organization CEO’s shift investment priorities Marketers are equally technologists Budget (& complexity) rises Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved
  • 16. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – marketing’s role is expanding 15 The Digital CMO and their organizations are responsible for mastering technology and digital techniques to improve all marketing customer-related processes and grow the business by: • defining markets • developing & managing offerings • attracting, acquiring and retaining customers.
  • 17. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – IT moves to a bimodal organization 16 Reliability Goal Agility Price for performance Value Revenue, brand, customer experience Waterfall, V-Model, high-ceremony IID Approach Agile, kanban, low ceremony IID Plan-driven, approval-based Governance Empirical, continuous, process-based Enterprise suppliers, long-term deals Sourcing Small, new vendors, short-term deals Good at conventional process, projects Talent Good at new and uncertain projects IT-centric, removed from customer Culture Business-centric, close to customer Long (months) Cycle Times Short (days, weeks) Think Marathon Runner . Think Sprinter Mode 1 Mode 2
  • 18. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – CEOs shift investment priorities 17 n = 410 CEO’s & Sr. Bus. Executives Q: Which five technology enabled capabilities will be the most important areas of investment to improve your business over the next 5 years? 20 20 22 23 24 27 32 34 34 38 0 10 20 30 40 Product cost analytics M-commerce Supply chain optimisation and traceability Enterprise mobility Big Data / Data science Cloud business Business analytics Customer experience management E-commerce Digital Marketing Percentage of Respondents Multiple choices allowed
  • 19. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication - organization adds new roles VP Marketing Digital Marketing Manager Mgr. Social Marketing Mgr. Mobile Marketing Mgr. Content Marketing Marketing Analytics Mgr DM Center of Excellence Marketing Business Analyst Dig Mktg. Measurement Branding Digital Commerce Dig Mktg Sourcing DM Systems Integration Multichannel Marketing Partner Marketing Chief marketing technologist Data Executive Digital Marketing Bus. Strategist CMOChief Digital Officer Chief Customer Officer Innovation Executive DM Operations Traditional Marketing Field Marketing Corporate Communications Digital Offering Development Internal IT Liaison 18
  • 20. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – marketers are equally technologists 19 Creative marketing skills Technology marketing skills
  • 21. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Implication – budget (+ complexity) rises 20 10.4% 2.5% 10.7% 3.1% Total Marketing Digital Marketing 2012 2013 Budget as % of Revenue + 20% n = 285 (2013) & 203 (2012) Share background * Companies with revenue > $500M
  • 22. 21 Chief marketing technologists CMTs come of age CMTs become ubiquitous CMT responsibilities continuum CMTs improve marketing/IT dynamic CMTs help push adoption of adaptive sourcing Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved
  • 23. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders The chief marketing technologist comes of age 22
  • 24. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders 81% of large companies now have the equivalent of a chief marketing technologist 23 Chief Marketing Technologist: The equivalent of a CTO and CIO dedicated to marketing, familiar with all kinds of marketing software, data and analytics, social and mobile platforms, content marketing, Web mechanics, and digital advertising networks, among other topics. 81% do 2012 83% Have a marketing innovation budget 80% Have a marketing capital budget n = 285 Q: Specify whether your organization presently has the equivalent of a Chief Marketing Technologist in 2013
  • 25. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CMT responsibilities continuum 24 50 59 63 65 67 0 50 100 Craft technology-enabled digital business models Prioritize funding for marketing technologies Select, evaluate and choose marketing technology providers Facilitate projects and communications between marketing and internal IT Align marketing technology with business goals Percentage of Respondents Set mktg. tech. strategy Mktg. tech. roadmap Mktg. tech. budgets “ Provider selection Training/change mgmt. CMO advisor De facto CDO Cross-functional customer focus Digital transformation Innovation leader Incubator leader C-suite advisor
  • 26. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CMTs are helping shift the marketing/IT dynamic 25 Independence: "We're going to keep on doing our own thing with our own budget." Secession: "We'll appoint a CDO or Marketing CTO to manage all things digital. Collaboration: "We have to figure out how to work together with marketing." Innovation: "We'll work together on this and break away from the competition with new and better practices and use of technology."
  • 27. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders … to CIO or Shared-service COO CMTs play a key role in adoption of adaptive sourcing … to Business Units, Supply Chain, Process Owners … to R&D, Chief Digital Officer, Chief Marketing Officer Decision Owner From the CIO, CFO or the Board … Innovate Differentiate Run The move from rigid outsourcing & project contracts … to partnering, crowdsourcing, CSI, BPaaS, JVs, Spin-off, M&A, agile development
  • 28. 27 What’s next CMTs expand their role in innovation More consolidation of sales & marketing Marketing technology integration Gartner for Marketing Leaders © 2014 Gartner, Inc. and/or its affiliates. All rights reserved 3 upcoming “flash points”
  • 29. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CMTs expand their role in innovation Does the innovation team aim to drive specific innovations forward, or enable others to innovate? Does the team aim to leverage existing pockets of innovation, or unleash new innovators? Everyone Responder Helps business units deploy new technologies through a tactical and pragmatic "SWAT" team approach. Respond Will the team invent fundamentally new approaches, or apply and adapt existing and emerging ideas and capabilities? Lead Scholar Investigates technologies ahead of business need through primary research and development. Invent Navigator Determines the strategic business impact of emerging technologies, through tracking, evaluation, and piloting. Adapt Pollinator Encourages and mentors distributed innovation activities throughout the organization. Unleash Will the team primarily respond to business suggestions, or lead and inspire the business leaders? Drive Will the team work primarily with executive decision makers, or a broad base of managers and teams? Enable Conductor Coordinates and leverages emerging technology activities performed in other parts of the organization. Leverage $ Suitable for part-time or resource-constrained teams$ Counselor Educates senior management on emerging technology issues and potential. Executives $
  • 30. 29 Percentage of Respondents Q: In order to fund digital marketing, which of the following statements are true? 40 41 28 27 28 Not asked 44 43 35 31 32 22 74 73 54 60 59 51 0 10 20 30 40 50 60 70 80 We are funding digital marketing from within the existing marketing budget and squeezing spending on multiple other marketing activities We are saving money with digital marketing as opposed to traditional marketing and the savings is funding continued investments We reduced our traditional advertising budget We obtained incremental funding for digital marketing from other functions or business units We justified a net addition to the marketing budget for digital marketing activities without cutting elsewhere We obtained funding for digital mktg from reductions in sales budget because buyers have changed their purchase journey and digital mktg activities replace some activities previously performed by sales 2012 (n=253) 2013 (n=285) 2014 (n=199)* - - Marketing reinvestment - - - - Incremental - - - - Sales - - Gartner for Marketing Leaders More consolidation of sales & marketing
  • 31. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders CSP = communication service provider; DM = digital marketing; DMP = data management platform; DOOH = digital out-of-home; NFC = near-field communication; OTT= over-the-top; PM = program management; RT = real time; SEM = search engine marketing; SEO = search engine optimization; UX = user experience; UXP = user experience platform Product Station Vendor Station Offline Connection AD OPS DATA OPS MOBILITY WEB OPS SOCIAL OPS DESIGN MARKETING OPS CREATIVE Connection to CMO Connections to Sales and Service Connection to General Advertising Connection to IT Connection to Business Intelligence Web Content Mgmt. Web Analytics Virtual Actors Video Ad Networks Video Ad Mgmt. Venues User Groups UXP UX Design Tag Mgmt. Social TV Social Networks Social Mktg. Mgmt. Social Commerce Social Apps Social Analytics Social Ads Smart Kiosks Site Retargeting Search Retargeting Search Engines SEO Tools SEM Platforms Rich Media Search Real-Time DecisioningQR Codes Programmatic Media Program Guide Promo Reviews & Recs Embedded Merch Product Design Compliance Predictive Campaign Analytics OTT Video Online Video Publishing Online Retailers Data Exchanges NFC Natural Language Questioning Native Ads Campaign Mgmt. Mobile Search Mobile Messaging & Commerce Mobile Media & Targeting Mobile App & Content Svs Mobile App Marketplace Mobile Analytics Mobile Ad Networks Microsensors Media Labs Media Companies Media Agencies Marketing Service Providers Mktg. Resource Mgmt. Management Consultants Marketing Analytics Lead Mgmt. In-Game Ads Idea Mgmt. IT Service Providers Geotargeting Geofencing Gamification Tools Finger- printing Experience Targeting Emotion Detection Email Mktg. E-Commerce Enablers Dynamic Creative DOOH Media Svcs Digital Offers Media Metrics Digital Asset Mgmt. Digital Agencies Data Warehouses DMP Customer Analytics Crowdsourcing Content Marketing Data Providers Communities CSPs Census and Panel Data Business Process Outsourcers Blogs Automatic Content Recognition Augmented Reality Attribution Agile Mktg. PM Agency Holding Companies Advocacy Mktg. Addressable TV Ad Verification Online Ad Networks Ad Exchanges A/B Testing MOBILE STRATEGY EMERGING TECH ANALYTICS AD TECH UX SOCIAL COMMERCE Mktg. Mgmt. SEARCH CREATIVE RT DATA Marketing technology integration – via software as well as service integrators DM HUB Analy- tics Ad Tech User Exp. Digital Comm Mktg Ops Search MARKETING HUB Social Mobile 30
  • 32. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Three upcoming “flash points” 31 Modifying processes and updating underlying technologies to create a holistic customer experience - between Marketing, Customer Service and Sales, if not more broadly Replacing your e-commerce platform with a customer-centric digital commerce ecosystem, including elements run by marketing Developing new “internet of things”-influenced digital products and services
  • 33. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Storyline revisited 32 • Digital disruption on a broadening scale • Main impacts on marketing: * Customer in charge * Sales funnel blown up * Experience economy * Data & analytics = driver * Innovative technology underlies it all • Major implications: * Mktg. role expanding * IT moves to bimodal org. * Marketers as technologists * CEO investment priorities * Budget & complexity rises • Chief marketing technologists: * Come of age & are ubiquitous * Continuum of responsibilities * Improving Mktg./IT dynamic * Promote adaptive sourcing • What’s next * Expanded role in innovation * Mktg/sales consolidation * Mktg technology integration * 3 “flash points”
  • 34. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved Gartner for Marketing Leaders Recommended reading 33 • Strategic Pressures Expand the Chief Marketing Technologist Mandate G00266856 • Find a Chief Marketing Technologist to Seize Business Advantage G00262061 • What the Chief Marketing Technologist Needs to Know About the Digital Marketing Hype Cycle G00266857 • How the Presence of a Chief Marketing Technologist Impacts Marketing G00259204 • HBR article “The Rise of the Chief Marketing Technolgist” available free at http://www.gartner.com/marketing/digital/
  • 35. Chief Marketing Technologists Symbolize Marketing’s Changing Role This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Laura McLellan laura.mclellan@gartner.com @lauramclellan