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Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. The CIO + CMO Relationship: “Fast-Forward” on a New Dialog !

The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

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Page 1: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

The CIO + CMO Relationship: “Fast-Forward” on a New Dialog !

Page 2: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

The New CIO + CMO Dialog….

2

“We’re going to

throw away the old

rules, when it comes to

IT’s support of

the Marketing area”

Page 3: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Business Process Automation: by Function

SFA / CRM

1990 2000 2010 2020

Human Resources

Marketing

1980

Supply-chain

E-Commerce

Marketing is just

beginning its

Automation Journey We are here

3

Finance/Manufacturing

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Page 4: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

The Crush of Marketing Transformation (Marketing of Old)

Buyer

“Let me tell

you about

my product.”

Sales Person

“I’ve got a

problem.”

4 © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Page 5: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Today’s Dialog with our Customers

“I know how to

buy!”

45% of the buying

decision is made

before the buyer

has even said hello

to your sales rep. - IDC Buyer Experience Study

5 © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Page 6: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

6

Engine = Interaction

Management

Fuel = Data and Analytics

Body = Content

Driver = Mgmt and Admin

To Succeed, the CMO Desperately Needs Technology

Page 7: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

2014 IDC Strategic Framework for Marketing Technology V 1.0 = 78 categories

Moni-

toring

Pub-

lishing

Mobile

Apps

Ad Buy

Optimization

Off Line

Ad Mgmt

Display

Ad Mgmt

Location

Based

Mobile

Ads Other

Mobile

Retargeting

Search

Ad Mgmt

Web Content

Mgmt (WCM) Mobile Web SEO

Chat Social Login/

Sharing

Community

Mgmt

On Line

Video

Platforms

Customer

Portals

Search

Content

Mktg

Platforms

Recom-

mendation

Engines

Tag

Mgmt

Personal-

ization

Web

Retar-

geting

Web

Ads

Other

Social

Ad Mgmt

Search Ad

Mgmt

On Line

Video

Ads

Web

Display Ad

Mgmt

Integrated

Mktg

Mgmt

Mobile

Apps

Email

Mktg

Tele-

marketing Direct Mail

SMS/

Text

Online

On Site

AR/PR

Mgmt

Loyalty/

Gamifi-

cation

Monitoring

Publishing

Digital

Publishing

Graphic &

Web Design

A/V

Authoring

Tools

Diagram-

ming

Office

Apps Surveys

Cat/

Cluster

Engines

Lang

Analysis

Q&A

Engines

Digital Asset

Mgmt (DAM)

Doc Mgmt Market Intell

Mktg

Dataware-

house

Data

Mgmt

Web

Analytics

Social

Media

Analytics

Predictive

Analytics

Segment-

ation

Reporting/

BI MRM

Budget/

Plan/

Track

Web

Confer-

encing

Team

Collabor-

ation

Project

Mgmt

Instant

Commun-

ications

Ent

Social

Networks

Email

Apps

Rich Media Search Text Analytics

Competitive Intell

Customer Intell

Social Mktg Other Events Direct Mktg

Portals CMS

Content Search and Analytics

Authoring and Publishing Website Mgmt

Web Ads

Mobile Ads Other Ads

Mktg Data Mgmt Analytics MRM Collaborative Apps

Interaction Management Content Prod & Mgmt

Data and Analytics Mgmt and Admin

Clientelling Mobile POS Merchan-

dising

Social

Commerce

Real Time

Offers

On Line

Catalogs

eCommerce

Platforms

Digital Commerce

Direct

Sales

Tools &

Portals

Partner

Relation-

ship

Mgmt

Enblmnt

Advertising

Page 8: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

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 & Research

Supply Chain Management

Other Horizontal

Sales

Customer Service

Risk and Security

Industry Specific Operations

Marketing

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

8 © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Page 9: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

IT’s Demise ? Nonsense!

9

Page 10: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Critical Questions for The CIO to Ask the CMO…

Who is our “New Buyer” and what

is the impact on the Marketing

Function?

What should be our Marketing

Technology Road-Map?

What Technology and Operational

Skill-Sets are we lacking for the

support of Marketing Technology?

10

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Page 11: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Start a New Dialog with your CMO…

11

Page 12: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Moni-

toring

Pub-

lishing

Mobile

Apps

Ad Buy

Optimization

Off Line

Ad Mgmt

Display

Ad Mgmt

Location

Based

Mobile

Ads Other

Mobile

Retargeting

Search

Ad Mgmt

Web Content

Mgmt (WCM) Mobile Web SEO

Chat Social Login/

Sharing

Community

Mgmt

On Line

Video

Platforms

Customer

Portals

Search

Content

Mktg

Platforms

Recom-

mendation

Engines

Tag

Mgmt

Personal-

ization

Web

Retar-

geting

Web

Ads

Other

Social

Ad Mgmt

Search Ad

Mgmt

On Line

Video

Ads

Web

Display Ad

Mgmt

Integrated

Mktg

Mgmt

Mobile

Apps

Email

Mktg

Tele-

marketing Direct Mail

SMS/

Text

Online

On Site

AR/PR

Mgmt

Loyalty/

Gamifi-

cation

Monitoring

Publishing

Digital

Publishing

Graphic &

Web Design

A/V

Authoring

Tools

Diagram-

ming

Office

Apps Surveys

Cat/

Cluster

Engines

Lang

Analysis

Q&A

Engines

Digital Asset

Mgmt (DAM)

Doc Mgmt Market Intell

Mktg

Dataware-

house

Data

Mgmt

Web

Analytics

Social

Media

Analytics

Predictive

Analytics

Segment-

ation

Reporting/

BI MRM

Budget/

Plan/

Track

Web

Confer-

encing

Team

Collabor-

ation

Project

Mgmt

Instant

Commun-

ications

Ent

Social

Networks

Email

Apps

Rich Media Search Text Analytics

Competitive Intell

Customer Intell

Social Mktg Other Events Direct Mktg

Portals CMS

Content Search and Analytics

Authoring and Publishing Website Mgmt

Web Ads

Mobile Ads Other Ads

Mktg Data Mgmt Analytics MRM Collaborative Apps

Interaction Management Content Prod & Mgmt

Data and Analytics Mgmt and Admin

Clientelling Mobile POS Merchan-

dising

Social

Commerce

Real Time

Offers

On Line

Catalogs

eCommerce

Platforms

Digital Commerce

Direct

Sales

Tools &

Portals

Partner

Relation-

ship

Mgmt

Enblmnt

Advertising

Job # 1 for the CMO + CIO Dialog: Take Inventory of Your

Current Marketing Technology Deployments

Page 13: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Taking Inventory: Small Enterprise

Sm

all

Com

pany

Web Analytics Social Media Analytics Web Conferencing Email

Data and Analytics A Mgmt and Admin A

Page 14: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Taking Inventory: Medium Enterprise

Me

diu

m C

om

pany

Web

Analytics

Social

Media

Analytics

Reporting/

BI

Web

Confer-

encing

Instant

Commun-

ications

Email

Page 15: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Taking Inventory: Large Enterprise

Larg

e E

nte

rpri

se

Mktg

Data

Warehouse

Data

Mgmt

Web Analytics

Social Media

Analytics Predictive

Analytics

Segment-

ation Reporting/BI

MRM Budget/ Plan/

Track

Web

Conferencing

Team

Collaboration

Project Mgmt Instant

Communications

Enterprise

Social

Networks

Email

Apps

Mktg Resource Mgmt (MRM) Mktg Data Mgmt

Content Analytics

Page 16: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Job # 2. Examine Budgets and Staff between CIO + CMO

Breakdown of staff that supports Marketing

Automation and Technologies

Marketing 44.1%

Corporate IT 45.0%

External Consultant

10.9%

Breakdown of funding between Marketing

and IT for Marketing Automation projects

Marketing 62.7%

Corporate IT

33.9%

Other 3.4%

Source: IDC’s 2013 Tech Marketing Benchmarks Study

Page 17: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Job # 3: Think Less About Marketing versus the IT Budget

$? Marketing Budget

$? IT Budget

Who Pays?

(Marketing or IT)

Does it Matter?

(Not at this point..)

Look at the activities that

need to be performed….then

look where they should be

performed.

Page 18: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Job # 4: Assess the “Technical Marketing” Skill Sets between CIO and CMO areas.

2.5%

2.0%

0.0% 0.0% 0.0%

6.4%

3.2%

0.9% 0.9% 0.7%

0%

1%

2%

3%

4%

5%

6%

7%

MarketingOperations

MarketIntelligence

Social Marketing Analytics & BI MarketingAutomation

Job categories as a percentage of total marketing staff

2005

2013

Source: IDC Tech Marketing Benchmark Studies 2005

and 2013

Page 19: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Essential Guidance: Talking to the CMO

Start NOW, and work fast

This is not a “Bet the

Marketing Department”

Issue…

It’s a “Bet the Company” Issue!

Throw out the “old rules” for IT

departmental support

19 © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Page 20: The CIO + CMO Relationship: “Fast Forward” on a New Dialog › cio › summit2014 › sydney... · 2014-07-29 · The Crush of Marketing Transformation (Marketing of Old) Buyer

Thank You !

Richard Vancil Group Vice President,

Executive Advisory Strategies

[email protected]

@richvancil

20 © IDC Visit us at IDC.com and follow us on Twitter: @IDC