Daniel Reed - presentation at the CIO Event for more information click here http://bit.ly/oR262i

1. Daniel Reed
CIO/CMO Convergence

2. The convergence of the CIO & CMO
How can the CIO can best support Marketing & business
leadership and drive organisation value.
1.Introduction & Context Setting
2. CMO Challenges
3. CIO Challenges & Opportunities
4. Discussion Questions

3. 1. Introduction & Context setting....
• IT focus has traditionally been largely in areas of .....Infrastructure,
Hardware, networks, generic application development, maintenance and
support etc.
• More recently IT has been more heavily engaged in business critical
applications that have transformed processing efficiencies and
harmonisation in many companies around ERP,HR, CRM and logistics
platforms .
• Predominantly back office type functions supporting finance, Operations
and HR where creation of shared service centres for these business support
functions has been a priority in many large organisations driving efficiencies
and cost savings not to mention the benefits of standardisation and
increased agility.
• In recent years the digital explosion and resulting business imperatives
facing CMOs has driven an appetite and urgency to transform marketing
protocols at a pace that many organisations have struggled with

4. 1. Introduction & Context setting....continued
• The growing influence and priority of technology on key front office business
functions has lead some organisations to seek external partners to support
e-marketing and ecommerce rather then partnering with CIO offices...
• In many cases Marketing functions have taken on new teams of web
specialists around analytics, BI, reporting, web development of sites and
EDMs, etc.
• This leads to need for clarity between the CIO organisation and that of the
CMO around digital marketing and e-commerce....
• Often highlights gaps in existing CMO or CIO management team
capabilities and skill sets....
• Ultimately -This leads to potential remit/role conflict between the CIO and
CMO and their key management staff.

5. „The success of my role is far more about
analytics and technology than it is about
hanging out with my ad agency, coming up
with great creative campaigns. We must
increase campaign ROI.‟
Rob Colwell, Executive Manager - Commercial and Marketing, Qantas
Frequent Flyer

6. Increasing use of partnerships – In the immediate future CMOs plan to
increase their use of external resources to strengthen capabilities.

7. 2. CMO challenges....
• A recent extensive survey of CEOs and CMO's asked the question what are
the most influential impacts on business next year. The CMO responses
were very similar to the CEO's.
• CMO's stated Market and technology factors are the two most powerful
external forces affecting organisations today.
• They expect them to drive increasing levels of complexity over the next five
years in how businesses market not just products and services, but all
dimensions of our organisations.
• The four biggest challenges identified were 1.explosion of data, 2.social
media, 3.the proliferation of channels and devices and 4.shifting
consumer demographics.
• These factors are serving as catalysts for change in the marketing function
and the struggle we all face is how to turn those challenges into
opportunities.

8. The CMO role has changed......
• Traditional thinking saw the office of the CMO concerning its self with concepts such
as Brand, Promotion, Products, placements, pricing leading to revenue and profits....
channel?
• Many current CMOs are concerned by how to digitally transform their business, how
to leverage e-commerce, social media, create product and promotions appropriate for
multi-channel marketing...
• Many are struggling to determine how to improve their businesses ecommerce or
digital marketing capabilities, or indeed BI or web analytics, reporting and selection
strength........ Decisions often in the CMO office for investment paths for system and
solution implementations or service partners to take them forward with digital
capabilities.....
• Even the more digitally transformed CMOs are still focusing on wed analytics, BI
reporting, EDMs, digital content, digital subscriptions/memberships/orders, social
media marketing, brand perception by bloggers/reviews........
• Dealing with the "BIG" data that is now available and understanding what is needed,
what to do with it all... and how best to leverage information into actions and business
value.

9. Taking charge of the terabytes - Most CMOs plan to deploy new
technologies to grapple with the “BIG Data”

10. The CMO role has changed......
• Much of this is highly technology dependant and a real jump from traditional
marketing skills, knowledge, experience... and so often leaves a gap to be
filled to greater or lesser extents.....
• CMO should be focused on Brand, Product, Promotion, Pricing, Placements
etc. rather than being so distracted by the technology
• However, CMOs who need to make decisions about technology investments
may find themselves in unfamiliar territory.
• This would explain why worries about implementing new technologies loom
so large.
• Four of the remaining eight obstacles CMOs cite are related to IT and
marketing‟s relationship with the IT function.

11. Roadblocks - What‟s preventing CMOs from using new tools? Building
the business case, IT issues and lack of technology skills in the
marketing function.

12. • ‘It’s easy to see the potential of many new tools, but it’s rarely
simple to integrate them with the organisation’s existing systems,’
a food, beverage and tobacco CMO in the United Kingdom warned.
• ‘The complexity of integrating [a new system] with other systems
too often destroys the ROI of the new system,’ she added.
• Concerns about the level of skill and lack of technology ownership
within the marketing function also suggest CMOs will have to work
much more closely with CIOs in the future.
• An industrial products CMO in the United States spoke for many
when she said: ‘I don’t see how we can go forward without
embedding IT into marketing.’

13. 3. CIO Challenges
• Ever increasing speed of new technologies creating digital
marketing opportunities
• The business cannot always articulate their business requirements
(hence the partnering and/or going it alone….)
• Business Partnering - growing need to proactively propose solutions
and partner/lead ROI projections around technology centric
investments…
• Integration of new tools/solutions with existing system infrastructure

14. 3. CIO Opportunities.....
• There is a clear opportunity for the CIO to more effectively support the
mission critical digital transformation of organisation commerce and
customer interactions through partnering the CMO function.
• CIO's should be key collaborators in identifying the digital business
opportunities, defining the vision in terms of operating model and
technology requirements, solution selection and subsequent
implementation,
• CIO's can bring much to this table....Leveraging technology understanding
and in many cases existing organisation tech skills and expertise to design,
deliver and support effective e-MKT and ecommerce platforms and where
possible processing capabilities through BI...
• The digital marketing holistic technology platform has already become the
most mission critical tech stack and should therefore be a key pillar, if not
the primary tower in any organisation enterprise architecture

15. ‘Marketing people will need unique skills in
the near future. They’ll need to be capable
of integrating marketing and IT - like
footballers who can kick with both feet.’
Jeroen de Punder, Chief Marketing Officer, Ricoh Netherlands

16. 4. Discussion questions:
1. How can you integrate external partners/solutions best in
you IT organisation?
2. What components could and should be left with Marketing
and never be transitioned to IT?
3. How can you transform IT so that IT can be proactive in all
the digital changes, rather than be reactive ?
4. What new roles are critical in your IT organisation to
support the digital transformation ?
5. Do digital projects require new project methodology?

17. 4. Discussion questions:
6. What is the digital change/trend that has impacted you most in recent
years (or in the last year)?
7. Is the business organisation capable of participating in the required
projects to transform (business involvement)?
8. What is the solution to get business to articulate their requirements in
a better way, in this continuous changing environment?
9. What division of roles do you propose between the whole Web based
roles (now often Marketing) between Marketing and IT ?
10. „The complexity of integrating [a new system] with other systems
often destroys the ROI of the new system,‟ - Is it acceptable not to
integrate, to what degree ?