Advanced Operating Models Research Insights: Marketing

Marketing

Advanced Operating Models

Research Insights

PROCESS • ANALYTICS • TECHNOLOGY 2© 2014 Copyright Genpact. All Rights Reserved.

Contents

Survey insight goals 3

Survey parameters 4

Key challenges by function 5

Marketing function impact: CPG, High Tech, Manufacturing 6

Marketing maturity: BFSI vs. CPG, High Tech, Manufacturing 7

Marketing preparedness by maturity 8

Impact of advanced organizational structures 9

Conclusion 10


INSIGHTS NARRATIVE

What are the most pressing company challenges?

How can functions and related operations address them? Which functions are most

effective at it?

Are those functions mature?

Are those functions ready to transform further?

Can new operating models of those functions help them transform? Which ones?

What can the impact of that transformation be?


10%25%

65%

Risk15%

Operations

40%

Marketing15% Procurement

13%

Finance17%

84%

16%

52% of marketing respondents are from the high tech industry

Sample of 912 senior executives, 120 from Marketing

METHODOLOGY

53% of marketing respondents are from North America

85% of marketing respondents are from larger companies

84%

16%

10,000+

5,001-10,000

Regions Size* Functions

Source: Survey commissioned by Genpact to an independent research firm. The respondents were selected on the basis of their ability to make or materially influence operating model decisions, and likely range from senior executives to top management.

*Company size defined by number of employees n=912


CHALLENGES ► BY FUNCTION

Overall

Finance

Procurement

Marketing

Operations

0 10 20 30 40 50 60 70

Marketing sees growth and customer satisfaction as key enterprise challenges

Ensure compliance to regulations

Increase customer satisfaction

Reduce capital and asset intensity

Manage risk

Increase growth and scalability

Enable company’s innovation

Enable agility and adaptability

Reduce costs

n=912 executives from a survey commissioned by Genpact with an independent research firm

% of respondents from various functions stating challenge as among the ‘Top 3’ for their company


MARKETING ► CHALLENGES ► BANKING, CAPITAL MARKETS, INSURANCE vs. CPG, HIGH TECH, MANUFACTURING

Financial sector concerned with compliance and risk; CPG, high tech, and manufacturing with growthImportance of the challenge (% of marketing respondents across industry segments stating that the challenge is among the ‘Top 3‘ for their company)

n=111 marketing executives from CPG, high tech and manufacturing, 18 from banking, capital markets and insurance, from a survey commissioned by Genpact with an independent research firm

DIRECTIONAL

64

56

67

10

13

20

35

51

48

59

17

61

6

22

44

28CPG, HIGH TECH, MANUFACTURING

BANKING, INSURANCE, CAPITAL MARKETS

Ensure compliance to regulations

Reduce cost

Increase customer satisfaction

Manage risk

Increase growth and scalability

Enable company’s innovation

Enable agility and adaptability

Reduce capital and asset intensity


n=111 CPG, high tech and manufacturing marketing executives from a survey commissioned by Genpact with an independent research firm

MARKETING ► FUNCTION IMPACT ► CPG, HIGH TECH, MANUFACTURING

44 28

66 46

31 54

39 51

56

4951 49 45 25

4 5869 6042Marketing analytics

962 4376 33Marketing automation and

campaign management

1324 7274 33Multi-channel marketing and

customer management

5255 5159 60

Ens

ure

com

plia

nce

to r

egul

atio

ns

Red

uce

cost

s

Incr

ease

cu

stom

er

satis

fact

ion

Incr

ease

gro

wth

an

d s

cala

bilit

y

Man

age

risk

Ena

ble

com

pany

in

nova

tion

Ena

ble

agili

ty

and

ad

apta

bilit

y

37Master data management

Advanced, data-intensive marketing functions solve numerous enterprise challenges

% o

f re

spo

nd

en

ts s

tatin

g

fun

ctio

n c

an

ha

ve m

ate

rial

imp

act

on

ad

dre

ssin

g c

ha

llen

ge

Magnitude of challenge1

DIRECTIONAL

1 % of respondents stating it is one of the top 3 challenges in their company


Multi-channel marketing and customer engagement

Master data management 11 21 68

Marketing automation and campaign management

16 22 62

6 20 74

Marketing analytics 14 24 62

MARKETING ► MATURITY ► CPG, HIGH TECH, MANUFACTURING

Somewhat mature/ImmatureMatureVery mature

% respondents stating the maturity of the marketing functions in their organizations

Most marketers see their advanced functions as relatively immature

n=111 CPG, high tech and manufacturing executives from a survey commissioned by Genpact with an independent research firm

DIRECTIONAL


MARKETING ► OPERATING MODEL INITIATIVES ► CPG, HIGH TECH, MANUFACTURING

Advanced organizational structures (BPO/SSC) seen as more impactful than other operating model initiatives

47

34

45

45

41

56 6027

Business process reengineering

Radically improved use of technology

60

45 58

56

Impact Index*

Marketing analytics

Marketing automation and campaign management

Multi-channel marketing and customer management

Master data management

140

130

127

152

% of respondents stating the initiative can have a material impact on the function

n=111 CPG, high tech and manufacturing marketing executives from a survey commissioned by Genpact with an independent research firm

BPO or SSC or hybrid1

* Function Impact Index combining stated importance of challenges and stated ability of a function to address them

1 BPO: Business Process Outsourcing; SSC: Shared Services; Tech = “radically improved use of technology”

DIRECTIONAL


$163M

$144M

$105M

SSC, BPO, Hybrid1BPRTech

MARKETING ► OPERATING MODEL IMPACT ► CPG, HIGH TECH AND MANUFACTURING

Technology has higher estimated impact but SSC/BPO1 are considered more often

Annual $ impact is the impact of operating model initiatives in US$ per annum including reduction of cost, capital required, improvement of cash and revenue growth

Average $ impact

DIRECTIONALAverage $ impact, bar width proportional to percent of respondents stating that the initiative will have a material impact

1 BPO: Business Process Outsourcing; SSC: Shared Services, BPR: Business Process Reengineering; Tech: radically improved use of technology

n=111 marketing executives from CPG, high-tech and manufacturing from a survey commissioned by Genpact with an independent research firm


In conclusion

CMOs and other senior marketing executives believe that the marketing function plays a strategic role in addressing the daunting challenges presented by a slow economic recovery, demanding customers and continued uncertainty.

This research examined how those challenges can be tackled by three levers of operating model transformation: technology, process re-engineering, and advanced organizational structures. The related transformation of operations is an untapped strategic lever for the CMO as well as the CEO.

However, it is sometimes seen as a formidable undertaking. Few understand the “IT + analytics + process operations” nexus sufficiently. Technological excesses of the past (such as ERP or data warehouses) are well documented. Some technologies are unproven, some uses of analytics are unclear, and older technologies are rigid and expensive to evolve. Finally, it is frequently a struggle to scale deep analytics throughout the enterprise.

Our experience of advanced operating models, accumulated over 15 years, clearly indicates that there are agile and practical ways to transform.

The key is to design, transform, and run the processes that power advanced operating models so that they closely align with measurable business goals, thereby avoiding saddling the company with unnecessary and often unmanageable complexity.

This approach focuses more rigorously on the sources of impact and deliberately disregards any practice that does not yield material outcomes. It also takes a more objective and holistic look at technology, analytics and organizational practices. It leverages now-mature “system of engagement” technologies that complement “system of record” technologies. It treats analytics (the arc of data-to-insight-to-action) as a process and determines how to embed insight at scale into the fabric of other enterprise processes; it does not take the typical approach of viewing analytics as a task and a set of technologies. Finally, it harnesses the process and organizational levers available from established disciplines, such as reengineering, shared services, outsourcing, and global delivery.

We think that there is a smarter way to transform operating models and address the most complex strategic challenges. This is a way for CMOs to make their enterprises more intelligent and generate material impact.


About Genpact

Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run business operations including those that are complex and industry-specific. We believe that our approach, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, is more focused, unbiased and agile than that of our competitors. Our solutions integrate technology, data and processes into advanced and adaptable operating models that foster growth and facilitate better management of cost and regulations in uncertain times. The result is intelligent operations of a range of functions such as finance, supply chain, origination and client servicing, compliance, and risk. We have hundreds of long-term clients including more than one-fourth of the Fortune Global 500. We have rapidly grown to over 66,000 people in 25 countries with key management and corporate offices in New York City. Our global critical mass doesn’t dilute our flexible and collaborative approach, and our management team drives client partnerships personally. We attribute much of our success to our unique history – behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years.

For more information, visit www.genpact.com.

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© 2014 Copyright Genpact. All Rights Reserved.

Genpact Research Institute

The Genpact Research Institute is a specialized think tank harnessing the collective intelligence of Genpact – as the leading business process service provider worldwide - its ecosystem of clients and partners, and thousands of process operations experts. Its mission is to advance the “art of the possible” in our clients’ journey of business transformation and adoption of advanced operating models.

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