Bridging the Gap Between CIO and CMO

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Bridging the CIO/CMO Divide

Geoff CubittCo-CEO, Isobar [email protected]@IsobarUS


By 2017, CMOs will spend more on IT than CIOs.

– Gartner, 2012


• Digital has surpassed TV as the top media consumption channel

• Yes you know mobile is important but its skyrocketing rate of change means it’s much more important than you think− This year, mobile has overtaken desktop

internet as the leading digital media channel

− Mobile has grown more than 4X in the past two years yet was practically irrelevant a couple years prior

− It’s steep growth curve indicates it may be set to challenge TV’s long-held dominance within 3-4 years

Mobile is already a dominant media channel and its Pace of change requires you to rethink your offering

Share of Media consumption

Source: eMarketer July 2013


Forrester refers to “The Ultimate Customer Relationship” where the role of the brand relationship is superseded by a stickier Digital Customer Relationship


• Mobile is changing your business not just your digital business

• Creating a compelling and consistent customer experience across all customer interaction channels is critical and in many ways, this is the new marketing

− And there is digital component to every channel

− If your employees need to leverage poor and inconsistent tools to interact with customers, the customer experience is degraded

• Leveraging analytics to engage consumers in their “mobile moments” − According to Forrester only 49% of interactive marketing professionals use mobile analytics

• Leverage mobile data to better understand physical spaces based on actual people movement and behavior

• Need to understand the convergence of social and mobile (more than half of Facebook’s revenue comes from mobile)

Omni-Channel World

6. Property of Isobar. Privileged & Confidential. 6666666

• Over 15% of Derrick Rose mentions in social media also mention the brand (up from 0%), driving significant awareness of the link between Rose, adidas and the D Rose 3

• Over 15 million mentions in all social channels (both passively and actively supported by the campaign)

• 7 million+ views on YouTube (up 800%)

• Facebook application created 100 impressions for every piece of content generated, with a click-through rate to the site of 2%.

• When Derrick Rose—the NBA’s youngest MVP—suffered a devastating knee injury, adidas faced a challenge in releasing his new shoe, the D Rose 3. We worked with adidas to create an interactive social media campaign that shared Rose’s rehab journey with his fans, giving an authentic behind-the-scenes look at his recovery. Using a responsive website, Facebook application, episodic videos, texts, recorded phone messages from Rose and more, we kept Rose top-of-mind while increasing sales of the D Rose 3.

adidas | All In For D Rose

Energizing fan support for a top athlete’s recovery – Social and Mobile Convergence

http://thereturn.adidas.com/


The Digital Product Revolution


Consumerization of the Enterprise


• It is truly possible to understand what’s working and what isn’t

• It is now possible to really understand customer journey’s and optimize across channels considering geography, personas and context

Leverage Analytics and Big Data to Learn and Optimize


U.S. digital ad spending to reach $50.6 billion in 2014, up 14% over 2013.

– Winterberry Group


“The single biggest problem in communication is the illusion that it has taken place.”

– George Bernard Shaw


• IT thinks it understands Marketing way more than it does− Priority Alignment - IT is more confident that it understands marketing’s priorities (68%), whereas marketing is less confident

(49%) in its ability to communicate IT’s priorities− IT’s Marketing Expertise - Close to half of IT leaders (49%) believe that “the CIO hires staff with marketing expertise,” but only

19% of marketing leaders believe such

• Since 2011 there has been an 11% improvement between IT and Marketing on process alignment but it’s still bleak− Leadership Focus - Only 62% of IT and 45% of Marketers feel that that adequate leadership is in place to support marketing

technology investments− Ownership - 70% of IT and more than half (51%) of marketing agreeing that “marketing and IT have shared

ownership/responsibility for marketing technology projects”

• Lack of Marketing Technology Direction− Strategy – 61% of IT and 45% of Marketing believe their company has a strategy for Marketing Technology− View of the Customer - Businesses may be collecting data on all of the customer touchpoints, but only 50% of IT and 38% of

marketers leaders believe that their company has a single view of customer interactions across touchpoints and over time− Insights – 57% of IT and 42% of Marketing believe their company can create actionable insights from a customer data

• Misaligned incentives− Bonus Drivers - Only 48% of IT and 37% of marketers leaders agree that they share mutually dependent bonus drivers, this level

of agreement between marketers and IT has increased by 14% since the 2011 survey

According to a 2013 Forrester/Forbes survey of IT and Marketing leaders

The Disconnect


When it Works

• Companies such as Uber and Jawbone have transcended the gap between Marketing and Technology


When it Doesn’t

• Healthcare.gov is a fantastic example of how wrong things can go when technology and marketing are not aligned


• CMO’s are Risk Takers− Make their mark with big, well known, breakthrough campaigns − Not innovating enough can cost them their jobs− It’s about the ideas

• CIO’s are Risk Managers− Focused on critical systems not going down, sensitive data not getting compromised− Try to avoid failed projects or budget over-runs− Tend to be deliberate and plodding− Its about meeting commitments

Risk Taker versus Risk Manager

Differences in Mind Set are Part of the Equation


• If there is a business case for your initiative than getting it done faster, with a higher degree of confidence brings the value of that business case to bear sooner

• In the case of marketing initiatives, being 3 months late to support a product launch, just isn’t an option

• In some companies, IT procurement have become enamored with the cheapest “commodity” resources

• The problem is that good technology resources are not a commodity− Numerous studies have shown that most work on an technical project gets done by 20-30% of the team− If you’re not careful you’ll end up with a team full or people that can’t get anything done

• An IT project staffed with mediocre to poor resources will almost certainly suffer from delays, budget overruns, poor quality, and poor adherence to user experience design− The cumulative affect of all these can be devastating to a marketing initiative

Don’t Kid Yourself – Cheap Resources aren’t Necessarily Cheaper


• Marketing can have a tendency to under appreciate how long it takes to build a robust solution

• Time is required to design and build sophisticated and value added customer solutions

• There is a difference between what is in effect an animated brochure and a differentiating technical offering that is tied into CRM, ERP and other backend systems

• Marketing calendars don’t often focus out across multiple years and sometimes not beyond seasons

• Marketers need to engage their technology partners early in the process to provide more planning lead team

• Additionally marketers need to plan earlier for initiatives which are foreseeable, considering more than just the marketing focused tasks

Sophisticated Solutions Take Time – Plan Accordingly


Bridging the CIO – CMO Divide


1. Cloud computing is a game changer− It’s possible to move faster with no capital infrastructure investment− Environments can be ramped up and scale elastically to support a campaign spike then ramped down or shut down

going forward− IT needs to embrace this change and support Marketing’s use of the cloud

2. Separate out the core support functions from customer facing solutions and marketinga) Desk-top support, network, email, etc. are core support functions for the organization and deserve their own focus

b) Customer facing applications and marketing solutions require a different expertize and focus

Re-think Infrastructure Role


• Tie both CMO’s and CIO’s to tangible business results if input from both sides is necessary for success

• For example, If your goal is to increase the average size of purchase and the answer is heavily technology-enabled, then make this metric jointly owned

• If both sides have common incentives than both have motivation to move at the pace of customer opportunities and demands

Align Incentives


• Technology resources should be involved early on in Marketing initiatives and both sides should work collaboratively throughout the life cycle of an initiative− Getting everyone excited about something that’s never going to happen due to technical limitations is frustrating and

time consuming− Technology resources can be more than a wet blanket on great ideas the can help to open up a world of technology

enable capabilities that marketing might never have thought of− Likewise Marketing should continue to be engaged through delivery to help with resolving things that don’t go according

to plan and ensure that the solution delivered aligns with what was desired

• If it’s the CIO’s responsibility to support the CMO then it’s the CMO’s responsibility to involve them in their plans

Build Cross Functional Teams


• Too often CIOs and CMOs talk past each other

• Align objectives carefully so that each side has common goals and language

• Long term culture is key to ensuring a successful relationship− Both sides must truly respect and appreciate what the other does− This starts with spending time working together and trying to truly understand the value the other provides

Communicate and Empathize


• Its hard to get where you want to go if you don’t know where you’re going

• As noted, some things take longer than a campaign season to put in place so having a strategic plan to define those longer term investments is critical

• Develop a capability roadmap to guide you along the way and manage organizational expectations

• Stay agile− Keep major initiatives in manageable phases like 6-9 months versus 18-36 months; this helps to demonstrate progress

and validate further investment− No plan survives contact with the enemy so be prepared to adjust as changes in the marketplace require− Leverage agile development based approaches to align effort around the highest business priorities as things evolve and

ensure buy-in along the way

Define a Strategic Plan


• Understand the current client incentives and motivations and try to work in ways that don’t cut across the grain

• Influence them toward changes listed above

• Be the bridge

The Hack


Any questions?