Driving the soft changes that unlock martech potential

Driving the Soft Changes
That Unlock Martech
Potential
CEB Marketing Leadership Council™
1
Patrick Spenner
Managing Director CEB
pspenner@executiveboard.com

© 2015 CEB. All rights reserved. MLC1631015SYN
LOSING GROUND
Digital Savvy, Consumers Versus Marketing
Illustrative
DigitalSavvy
Time
Consumers
Marketing
System
Source: CEB analysis.
2

© 2015 CEB. All rights reserved. MLC1631015SYN 2
AGGRESSIVE STEPS
Hire digital-savvy talent (specialists and leaders)
Boost investment in marketing technologies
Establish a digital Center of Excellence
Partner with specialist digital agencies
Train existing marketers on digital
Create a digital “lab”
Start
Common Steps Taken to Close the Digital Gap

FLEETING SPIKES OF RELEVANCEDigitalSavviness
Time
Consumers
Marketing
System
4
How can Marketing break
the compromise between
relevance and scale?

“We recently came off a campaign with a big social component.
Good news: we demonstrated that social can
drive incremental foot traffic.
Bad news: the team is completely
exhausted. This is not sustainable.”
CMO
Fortune 1000 Retailer
5

DigitalSavvy
Time
Consumers
Marketing
System
CLUES FROM THE UPSTARTS
Upstarts
6

STRANGE FISH
Xiomi’s Marketing Operating System
Xiaomi
Product
Teams
Advocates/
Co-Tinkerers
General
Marketplace
Source: Reuters; CEB analysis.
7

XIAOMI SHOCK
Source: Reuters; CEB analysis.
$0
$3
$6
$0
$3
$6
$0
$5
0.0
13.7M
0.0 0.0
2010 2010 20102013 2013 2013
20
10
0
1
0
0 0
$5.2B
0
Units Sold
(in Millions)
Full Time MarketersRevenue
(in $$US Billions)
8

DigitalSavvy
Time
Consumers
Marketing
System
GAINING GROUND
“System Trailblazer” Brands
9

COULD THIS…
Coca-Cola’s Content 2020 Video
...DRIVE THIS?
Marcomm Campaign Impact
Time
ConsumerReachxImpact
10

SYSTEM CHANGE
Planning Structure
Comms planning designed for share
worthiness and conversation extendability
Shared value orientation unlocks greater
consumer engagement Potential.
Focal Point Ways of Working
New content and conversation
management structures enable extension
of consumer conversations.
Iterative, co-creative posture among brand
marketers, central marketers, agencies and
third parties drives conversation agility.
11

FROM SYMPHONIES PLAYED BY ORCHESTRAS…
By Ritter Alexa (saját készítésű) [Public domain], via Wikimedia Commons
12

TO JAZZ PLAYED BY JAZZ BANDS
By imatik (http://www.flickr.com/photos/muokis/327908119/)
[CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
13

BREAK DOWN THE “ME”, BUILD UP THE “WE”
Immersion Program Agenda: Marketer Change Path
Start Finish
I’m not very
comfortable with
digital.
I’m screwed!
At least I’m
not alone.
I want to
change and
improve.
We can only do
this together.
Dial up
awareness
Demonstrate
commonality
of fears
Spark a feeling of
need and
empowerment
Build
appreciation for
necessity of
effective teams
Source: General Mills; CEB analysis.
14

INCUBATE MARKETING SYSTEMS, NOT DIGITAL EXECUTIONS
Spectrum of Marketing Innovation Incubators
Mondelez’s Fly Garage
Nestle’s Digital
Acceleration Team
“Create unmatched,
digitally enabled consumer
connections for Mondelez
brands.”
“Develop and strengthen
relationships with consumers
online.”
“Work differently, accelerate
learning, find new paths to
growth in a digital world.”
General Mills’
Brand Lab
Execution
“Hot Houses”
System
Incubators
Digital
Acceleration
Team
Objective
15

AGENCY
Source: General Mills; CEB analysis.
BRAND LAB DESIGN PRINCIPLES
Resource Constraints
Marketing deliberately caps the
team’s budget right below the
threshold that enables paid media,
forcing the team to be creative in
discovering new paths of growth.
Speed Pass
Marketing suspends traditional
operational constraints (e.g., limited
agency choice set, annual brand
planning, IMC campaign planning)
to enable a new, agile way of work.
Agency Co-Location
Partner with a local agency to
facilitate collaboration and
dramatically reduce turnaround
times.
1 2
5
3
4
Low-Risk Brand/Product
Marketing chooses to
experiment on a brand that is a
small part of its portfolio with
historically low investment.
Core Innovation Team
Marketing over-invests in
talent, bringing together high-
performers capable of both strategy
and execution to increase efficiencies
and shared learning.
16

Start IMC planning with
narrative backbones to
enable scale through
conversation intensity and
duration.
Anticipate multiple
conversation paths and pre-
plan responses to enable
rapid reaction to steer
conversations as they unfold.
Create a real-time
content capability to
enable conversation
amplification and
extension as
narratives unfold.
Modern IMC Planning
OLD PROCESS, RE-IMAGINED
Classic IMC Planning Process
Big Idea
Touchpoint
Channel
Planning
Touchpoint
Channel
Planning
Dialogue
Scenario
Planning
Liquid
Ideas
Launch
Launch
Real-Time
Conversation
Extension
17

Product/
Brand A
Product/
Brand B
Central
Functions
Consumer
Affairs
Legal
Central
Marketing
PR/Comms
Customer
Care
Digital CoE
Geo A
Geo B
Geo C
STRUCTURE CHANGE INTERTWINED WITH PROCESS CHANGE
Realtime Content Studio Components
In-House Content
Production
Capability
Content
Repository and
Playbooks
Legal Fast Lane
In-the-Moment
Content Studio
©
Agency BAgency A
Conversation Nerve Center
18

PROOF POINT PERMAFROST BUSTERS
Catalyst Project: Analytics Workbench
Marketing Technology Capability Roadmap
Illustrative
Capability 2013 2014 2015 2016 2017
Fast-Cycle
Predictive Analytics
Content
Management
Unique Customer
Data Integration
Source: Dell, Inc.; CEB analysis.
Catalyst Project Charter: Analytics Workbench
Objective: Enable marketing self-service on customer data structure
management and modeling
Opportunity: Estimated at near term $50M; long term $500M
Funding: Marketing and IT split funding 50/50
Staffing: Co-staffed, with Marketing contributing 2-3 personnel and IT contributing 2-3
personnel
Scope: Small, defined set of initial analytics use cases (to be expanded later)
Timeline: 3 months (run according to agile methodology) 19

PROOF IN THE PUDDING
Pre-
Workbench
Post-
Workbench
5–10 days
16 min
Source: Dell, Inc.; CEB analysis.Source: Dell, Inc.; CEB analysis.
3–6
Months
Instantaneous
Pre-
Workbench
Post-
Workbench
Months
Days
6
3
0
10
5
0
Average Model Updating Time,
Pre Versus Post- Workbench
“Through this partnership, we have created an approach that is more agile, responsive, and at the end of
the day, that delivers better solutions for the business and enables a better experience for our
customers.”
Brian Hovey
Executive Director, Global Commercial Marketing Operations Dell
Data Latency,
Pre Versus Post-Workbench
20

SELF-TEST:
ARE YOU TRYING TO PLAY JAZZ WITH AN ORCHESTRA?
…teaching marketers how to use new
technology in hopes of behavioral change?
21
Marketer
Behavior
Change
…surfacing mental/attitudinal hangups
preventing behavioral change?
…training individuals to play their part in a
symphony?
…training teams to play jazz?Marketer
Training
…“hot-housing” innovative digital executions? …incubating new marketing systems?
Digital
Incubation
…bolting on new digital silos with their own
new processes?
…creating structure/process tentacles that bust
old silos and replace old process?
Structure/
Process
…investing in martech projects that unwittingly
create more Marketing-IT handoffs?
…investing in martech projects designed to
remove Marketing-IT handoffs?
Martech
Projects
Are you… OR Are you…
…trying to play jazz with a symphony
orchestra?
…re-imagining the marketing system as a jazz
band?
Overall
Approach

Driving the soft changes that unlock martech potential

Driving the soft changes that unlock martech potential

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