This document discusses the roles of Chief Information Officers (CIOs) and Chief Marketing Officers (CMOs) in digital business transformation. It provides perspectives from various CIOs and CMOs on how the two roles need to work together more collaboratively given the growing importance of digital technologies. Specifically, it notes that CMOs will see the greatest IT-driven business transformation and that CIOs and CMOs need to partner to leverage big data and analytics effectively. The document advocates that CIOs understand marketing requirements and help enable marketing teams through technology.

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Vala Afshar
Author – The Pursuit of Social Business Excellence
Blogger – Huffington Post, Information Week, Inc.
Social Media – Active on Twitter and Slideshare

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All Businesses Will Be
Digital Businesses

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“In search of social business excellence? ... plenty for
other companies to learn from.” --InformationWeek
“Get beyond Kumbaya and onto the task of using these
technologies to bring autonomy, mastery and purpose
into your business.” --Forbes
“A brilliant book.” --Tom Peters

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Top 10 people mentioned by
marketing executives.
The #1 Retweeted and Mentioned Person by Marketers

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125 Blog Posts in 2013

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700,000 SLIDESHARE VIEWS

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Digital Economy
Welcome to the New
User experience is shaped by technology trends
Digital economy is defined by mobile, social, cloud, big data and apps
The network is a strategic business asset

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Mobile-first, always connected, highly secure
Mobile
74% of viewers will leave a page if not loaded in 5 seconds
268B mobile apps will be downloaded in 2017
70% of mobile searches lead to action within 1 hour

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Collaborative, open and connected
Social
65% of B2B companies have acquired a customer through social
94% of customers believe that c-level social involvement is important
82% of employees trust a company with social leaders

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Hybrid, flexible and secure
Cloud
97% of workers are using cloud services
60% of all cloud deployments will be hybrid by 2016
77% of businesses saw rogue cloud deployments last year

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Right app, right person, right time
Apps
70B apps will be downloaded by 2014 (286 billion by 2017)
84% of mobile traffic is related to apps
0% of businesses know what apps are running everywhere

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Data to insight to rapid decision/action
Big Data
4300% increase in annual Big Data generation by 2020
0.5% of Big Data is being analyzed today
63% of businesses view analyzing Big Data as a competitive advantage

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90% of Revenue Growth in the Next 10 Years
Will Come From the Third Platform - IDC
14

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Application Landscape Report 2014
Too many web applications a stumbling block to digital transformation
§ 60% CIOs believe their most valuable
contribution is introducing new technologies
§ Cloud (56%), Mobility (54%), Social (41%%)
and Big Data (34%) are seeing major adoption
§ 76% CIOs: modernization of the application
landscape key to achieving business objectives
*Survey of 1,000 global CIOs

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State of the CIO 2014
Digital strategist or traditional CIO?
§ 90% of CIO: role is increasingly challenging;
65% role is becoming more rewarding
§ 44% of CIOs report to the CEO. Tenure is six
years, while average pay is holding at $219,500
§ CIOs spend significant time to focus with
business leaders - up to 25% of week
§ Game-changers CIOs average salary $249,000.
(70% report to CEO) vs cost-center CIOs
($182,000 and 37% to CEO)
§ 48% of CIOs: IT groups is viewed as a cost
center or service provider
§ 61% CIOs have part of their compensation
tied to a specific corporate revenue or profit goal

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2014 CIO Priorities
“Measurement is
fabulous. Unless
you’re busy
measuring what's
easy to measure
as opposed to
what's important.”
– Seth Godin

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1. Lead the business from the front
2. Re-invent for next-generation digital
3. Create highly engaging workplace,
customer, and partner experiences
4. Enable emergent, decentralized
tech change in the organization
5. Don’t constrain IT, empower it
CIO Mandate: Lead Digital Transformation
Authored by Dion Hinchcliffe, Dachis Group

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The Marketing Function Will Undergo the
Greatest IT-Driven Business Transformation
0% 2% 4% 6% 8% 10% 12%
IT
Accounting / Finance / Billing
Human Resources & Training
Engineering, Architecture &
Supply Chain Management
Other Horizontal
Sales
Customer Service
Risk and Security
Industry Specific Operations
Marketing
19
U.S. IT Spending by Line of Business 5 Year CAGR (2012-2017)
Excludes Government and Education
Source: IDC’s Line of Business Forecast. Preliminary Data. October, 2013

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CMOs – 2014 and Beyond
How will CMOs and CIOs work together?

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The Evolved CMO in 2014
CMOs Must Ramp Up Business and Technology Acumen
§ 62% CMOs surveyed globally believe the CIO
is a strategic partner in meeting corporate goals
§ 41% CMOs share common vision with CIO of
how marketing and IT teams should work
together
§ Only 29% CMOs partner with their IT
counterpart when buying marketing technology
§ 31% CMOs use technologies to analyze and
respond to customer feedback
§ 40% CMOs claim they are hindered by the
quality of customer data in their organization

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Digital Marketing Expertise is Now a ‘Must
Have’ for B2B Marketing Organizations
22
13%
19%
26%
29%
34%
39%
44%
50%+
0%
10%
20%
30%
40%
50%
60%
2009 2010 2011 2012 2013 2014 2015 2016
%ofTotalProgramSpend
Digital Marketing Program Spend
Source: IDC’s 2014 Tech Marketing Benchmarks Study

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IDC - 2014 Marketing Technology Map
Digital Transformation of Marketing

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Gartner: 2014 Technology Transit Map

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2014 Marketing Technology Landscape

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CIOs and CMOs: Power couple or strange bedfellows?
Forced marriage of IT and marketing gets off to a rocky start
§ Gartner, marketing’s budget 10.5% of
revenue; IT budgets averaged 3.5%
§ Marketing budget for “digital marketing”
was 2.5% in 2012, 3.5% in 2013
§ Gartner IT spending by marketing will
rise by an average 9% in 2015

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§ Is CDO the next step for the aspiring
CIO-Plus?
§ The CDO’s job is to turn the digital
cacophony into a symphony
§ Roughly 20% of CIO’s in a Gartner survey
said they played the role of a CDO
§ To build great digital capabilities you need
to link to your existing IT capabilities/people
§ 2011 – 75 CDOs. 2013 – 500 CDOs.
2014 – 1,000 CDOs.
Should Your CIO be the Chief Digital Officer?

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Traditional Business Digital Business
Marketing IT Marketing IT

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§ 100 CDOs serve in large global organizations
in 2014, more than double that in 2012
§ By 2015, 25% of large global organizations
will have appointed Chief Data Officers
§ Over 25% of CDOs are women, almost twice
as high as for CIOs (13%)
§ By 2014, more than 20% of government
organizations will have appointed a CDO
Chief Digital Officers

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CMOs and CIOs Need to Get Along to Make
Big Data Work
§ Data-driven companies are 5% more
productive and 6% more profitable
§ Marketers spend $50 billion on Big
Data and analytics capabilities
§ Per Gartner, the CMO’s IT budget is
expected to outstrip the CIO’s by 2018
§ CMO (customer data) and CIO (Big
Data backbone) are natural partners

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CIO, FCC
DAVID BRAY
Put culture first
Create a culture of "intrepreneurs"
Opt for agile adoption in phases

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CIO, INTEL
KIM STEVENSON
No IT projects, only business projects
IT should help transform the business
Connect to new sources & influential people

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CIO, HP
RAMON BAEZ
Never deploy something the business isn't ready for
Form close relationships with the business units
Extend innovation beyond IT

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CIO, DELL
ANDI KARABOUTIS
IT must proactively welcome ideas from outside of IT
CIOs must form an alliance with CMOs
Embrace disruptive technologies, like cloud

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CIO, NETFLIX
MIKE KAIL
Focus on cloud wherever possible
IT's charter is to improve business efficiency
Partner with line-of-business

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CIO, US GSA
CASEY COLEMAN
Go first and stay ahead
Focus on user experience
Technology for business sake

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CIO University of Mississippi Medical Center
DAVID CHOU
Drive branding with social media
Unify missions of edu, research, patient care
Keep organization ahead of the megatrends

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CIO, COLORADO
KRISTIN RUSSEL
Control is an illusion
Collaborate to co-create value
Innovation is closest to the frontline

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CIO, UNH
JOANNAYOUNG
Be open to innovation
Take a 460 degree view
Social accelerates contribution

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CIO ofADP
MIKE CAPONE
Responsible for both IT and product dev
Guide strategy with peer collaboration
Work with CMO on analytics and big data

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CIO of San Francisco
MARC TOUITOU
Customer's business requirements are #1
Simplify. Accelerate.
Be the Chief Enthusiast Officer

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CIO, SETON HILL
PHIL KOMARNY
Mobile-first is expected
Social media is a learning thing
You can’t be relevant without being social

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CIO, CELTICS
JAY WESSEL
Maintain a winning attitude
Teamwork across departments
Adore what you do. Passion drives excellence

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CO-CHAIR, DELOITTE
JOHN HAGEL
Drive change at the edge of an organization
Accept vulnerability as path to earning trust
Move to a model of scalable learning

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CDO, HARVARD UNIVERSITY
PERRY HEWITT
Digital should be everyone's job
Think from the outside-in
Management needs to live digital

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VP CONTENT, NE PATRIOTS
FRED KIRSCH
Know your customers
IT infrastructure is a business asset
Big Data rewards customer engagement

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CIOCaliforniaStateUniversityChannelIslands.
MICHAEL BERMAN
Marketing understands brand awareness
IT helps with analytics, mobile, social media
CIO can manage both IT and Marketing

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CEO, BOX
AARON LEVIE
Collaborate with the business
IT should be the information enabler
Pay attention to where customers are going

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CMO, SAP
JONATHAN BECHER
Be deliberately digital
Democratize Business Intelligence
Build programs from the audience in

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GROUP VP, IDC
MIKE FAUSCETTE
CMO owns the results of Big Data
Customer communication platforms
CMO chooses the tools, but CIO makes them work

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GROUP VP, GARTNER
MARK P. McDONALD
The emerging CDO
Technology is bigger than IT
14% of total economy now happens online

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FOUNDER,ALLTOP.COM
GUY KAWASAKI
Trust the crowd
Social amplifies voice and choice
CIOs empower CMOs to focus outwardly

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Areas where CMOs become frustrated with CIOs
CIO understands marketing requirements
Marketing employees understand IT
IT employees understand marketing programs
Want to enable marketing employees to
operate data/content, without IT intervention
IT development process is slow and not
aligned to the speed of digital marketing
Strongly Disagree (%) Strongly Agree
38 38 13
13 38 36 10
18 32 34 11
13 36 33 12
14 38 28 11

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Areas where CIOs become frustrated with CMOs
Software service needs careful planning
CMO understands company’s IT infrastructure
IT employees understand marketing programs
Marketing pulls in technologies without
consideration for IT standards
Marketing understands technology
Strongly Disagree (%) Strongly Agree
30 40 25
36 38 17
16 31 35 15
15 29 35 14
15 34 33 15

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Marketing Success Factors

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“The most powerful combination
is the CMO and CIO working
together with a shared goal to
grow the business.”

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The new extremenetworks.com
§ Responsive user interface
§ Adjusts to desktop, mobile and tablets on the fly
§ Extend your brand experience across the omni-channel
Mobile First

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Building a Community
§ Contextual intelligence: real-time web personalization
§ Understand customer’s needs
§ Engage during moment of research
The Social Web

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“Partner with the CIO organization
so that the IT strategy and tactics
for the marketing function become
shared and unified.”

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§ Understand the science behind marketing and sales
§ Understand the markets your company servers
§ Co-champion marketing and sales innovation
§ Value design, emotion, and customer experience
§ Connect with people outside of IT and company
WHAT CAN CIOs DO TO HELP CMOs

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WHAT CAN CMOs DO TO HELP CIOs
§ Trust IT expertise
§ Promote IT innovation
§ Increase your technology IQ
§ Monitor emerging marketing tech trends
§ Clearly communicate business objectives

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Thank You
@ValaAfshar
“The CIO & CMO: Adversaries No More”
Register here: http://www.interop.com/lasvegas/schedule-builder/session-id/22