the cio & cmo – adversaries no more


Vala Afshar Author – The Pursuit of Social Business Excellence

Blogger – Huffington Post, Information Week, Inc.

Social Media – Active on Twitter and Slideshare


All Businesses Will Be Digital Businesses


“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


Top 10 people mentioned by marketing executives.

The #1 Retweeted and Mentioned Person by Marketers


125 Blog Posts in 2013


700,000 SLIDESHARE VIEWS


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

©2014 Extreme Networks, Inc. All rights reserved. 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

©2014 Extreme Networks, Inc. All rights reserved. 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

©2014 Extreme Networks, Inc. All rights reserved. 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

©2014 Extreme Networks, Inc. All rights reserved. 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

©2014 Extreme Networks, Inc. All rights reserved. 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


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

14


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


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


2014 CIO Priorities

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


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


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


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


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


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

% o

f Tot

al P

rogr

am S

pend

Digital Marketing Program Spend

Source: IDC’s 2014 Tech Marketing Benchmarks Study


IDC - 2014 Marketing Technology Map Digital Transformation of Marketing


Gartner: 2014 Technology Transit Map


2014 Marketing Technology Landscape


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


Should Your CIO be the Chief Digital Officer?

§  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.

Author: George Westerman, MIT Center for Digital Business

Should Your CIO be the Chief Digital Officer?


Traditional Business Digital Business

Marketing IT Marketing IT

Add colors to bkgds.


§  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


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


CIO, FCC DAVID BRAY

Put culture first Create a culture of "intrepreneurs"

Opt for agile adoption in phases


CIO, INTEL KIM STEVENSON

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


CIO, HP RAMON BAEZ

Never deploy something the business isn't ready for Form close relationships with the business units

Extend innovation beyond IT


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


CIO, NETFLIX MIKE KAIL

Focus on cloud wherever possible IT's charter is to improve business efficiency

Partner with line-of-business


CIO, US GSA CASEY COLEMAN

Go first and stay ahead Focus on user experience

Technology for business sake


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


CIO, COLORADO KRISTIN RUSSEL

Control is an illusion Collaborate to co-create value

Innovation is closest to the frontline


CIO, UNH JOANNA YOUNG

Be open to innovation Take a 460 degree view

Social accelerates contribution


CIO of ADP MIKE CAPONE

Responsible for both IT and product dev Guide strategy with peer collaboration

Work with CMO on analytics and big data


CIO of San Francisco MARC TOUITOU

Customer's business requirements are #1 Simplify. Accelerate.

Be the Chief Enthusiast Officer


CIO, SETON HILL PHIL KOMARNY

Mobile-first is expected Social media is a learning thing You can’t be relevant without being social


CIO, CELTICS JAY WESSEL

Maintain a winning attitude Teamwork across departments

Adore what you do. Passion drives excellence


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


CDO, HARVARD UNIVERSITY PERRY HEWITT

Digital should be everyone's job Think from the outside-in

Management needs to live digital


VP CONTENT, NE PATRIOTS FRED KIRSCH

Know your customers IT infrastructure is a business asset Big Data rewards customer engagement


CIO California State University Channel Islands. MICHAEL BERMAN

Marketing understands brand awareness IT helps with analytics, mobile, social media

CIO can manage both IT and Marketing


CEO, BOX AARON LEVIE

Collaborate with the business IT should be the information enabler Pay attention to where customers are going


CMO, SAP JONATHAN BECHER

Be deliberately digital Democratize Business Intelligence

Build programs from the audience in


GROUP VP, IDC MIKE FAUSCETTE

CMO owns the results of Big Data Customer communication platforms CMO chooses the tools, but CIO makes them work


GROUP VP, GARTNER MARK P. McDONALD

The emerging CDO Technology is bigger than IT

14% of total economy now happens online


FOUNDER, ALLTOP.COM GUY KAWASAKI

Trust the crowd Social amplifies voice and choice

CIOs empower CMOs to focus outwardly


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

2 9 38 38 13

3 13 38 36 10

5 18 32 34 11

6 13 36 33 12

9 14 38 28 11


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

1 4 30 40 25

3 6 36 38 17

3 16 31 35 15

15 29 35 14

15 34 33 15 3

7


Marketing Success Factors


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


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


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

The Social Web


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


§  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


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


Thank You

@ValaAfshar

“The CIO & CMO: Adversaries No More”

Register here: http://www.interop.com/lasvegas/schedule-builder/session-id/22

the cio & cmo – adversaries no more

Marketing

large global organizations

big data

group vp

2014 extreme networks

rights reserved

customer data

marketing function

social