fcmo

Management in crisis - New planning and Future CMO Toni Keskinen, Marketing Architect [email protected] +358 50 5522276

© Toinen Helsinki 2012

The management is challenged by accelerating change, complexity and creativity demand


IBM CEO study, 1500 interviews in 2010

Key findings: 1.  The World’s private and public sector leaders believe that a rapid

escalation of “complexity” is the biggest challenge confronting them. They expect it to continue – indeed, to accelerate – in the coming years

2.  They are equally clear that their enterprises today are not equipped to cope effectively with this complexity in the global environment

3.  Finally, they identify “creativity” as the single most important leadership competency for enterprises seeking a path through this complexity.


“The threats and opportunities aren’t just coming at us faster or with less predictability; they are converging and influencing each other to cerate entirely unique situations. The first-of-their-kind developments require unprecedented degrees of creativity – which has become a more important leadership quality than attributes like management discipline, rigor or operational acumen.”

Mr. Samuel J. Palmisano, Chairman, President and CEO of IBM Corporation

Management has difficulties combining..


Topsight Insight with

Average management view:

DRIVING IN THE DARK



Marketing dept/CEO (future)

CFO/HR/Research (past)

Sales/customer services/analytics (now)

Average management view

DIFFERENT PERSPECTIVES


Fractured data use – Blindspots Weight

Time

On-line Analytics

Realtime: Automatic- optimization

Own/competitor Annual report

P’n’L

Tracking

Campaign analysis

Scoring RFM Modeling

CRM salesreport

Own/competitor Quarterly

P’n’L

SoMe

Co-creation/ Open innovation CSAT/

VOC

Mystery- shopping

Own/competitor Monthly

P’n’L

Diciplined and capsuled information result blind spots and do not offer optimal value. There is no story in the data

Own personnel

Monthly Quarterly Annual


Combined data = Story & insights

Weight

Time

On-line Analytics

Realtime: Automatic- optimization

Annual report P’n’L

Tracking, research

Campaign analysis

Scoring RFM Modeling

CRM salesreport

Quarterly P’n’L

SoMe

Co-creation/ Open innovation

CSAT/ VOC

Mystery- shopping

Monthly P’n’L

Combined data that is open for all decision makers, tell much richer and more valuable story and increase the value of information

REALITY CHECK: IN BUSINESS YOU ARE ALWAYS DRIVING IN THE DARK


YOU CAN GET BETTER LIGHT, BUT NEVER DAYLIGHT

WHAT’S HAPPENING IN THE BUSINESS ENVIRONMENT?


Customer relationships and insights are more important than ever due to..


PRIVACY & OTHER REGULATION

DATA EXPLOSION

UNPREDICTABILITY: LIKELIHOOD OF BLACK SWANS

TECHNOLOGY COSTS DOWN

GLOBAL INTERDEPENDABILITY

FROM MEDIOCRISTAN TO EXTREMISTAN

OPPORTUNITY DEMOCRACY

TRANSPARENCY

FOCUS SHOULD BE: CUSTOMER BEHAVIOR

CHANGE AND CHANGE SCENARIOS

REAL TIME REQUIREMENT

TRUST VS. OPPORTUNISM

SO, WHAT IS THE FUTURE ROLE OF MARKETING AND CMO?


Demand for accountability

– The key here is the corporate management acceptable marketing investment model = accountability and business cases

– Marketing has been a rogue spending area in corporations without direct accountability for financial results. Managing liquid investments worth several percentages of corporate turnover/year (P&G 9-11%) must be held accountable and responsible

– Every single business investment area is held liable for profitability and accountability apart from advertising and marketing.

– Because real accountability is becoming possible, it will be demanded. Period.


CMO has the best combination of customer and business understanding

– CMO has a role between corporate strategy, operations, and customer understanding

– CMO is responsible for constantly analyzing and tracking the brand’s success and perception in the market compared to other brands and players: how the market works from the customer point of view

– CMO should know how different strategies influence customer behavior, loyalty and consequently business

– CMO has resources to allocate and he can react in both brand related issues and tactical sales

– CMO’s job is to make the money work for the company and invest in any purpose resulting profits, growth and competitive advantage


Why do companies exist? - To serve their customers


CMO’s current order of priorities:

1.  Find, reach and feed new customers

2.  Convert them to buyers 3.  Keep and grow the value

of each customer 4.  Create such a great

experience and high value that customers are voluntarily spreading the brand with recommendations

Corporate interest = CMO’s focus


New order in priorities (bottom up):

1.  Most accountable growth from customers and their lifetime value including customer experience

2.  Strongest growth of customer base from increased conversion rate

3.  Other market – non customers, is least accountable. Real time marketing, result based business models and analytics increase ROI

FUTURE CMO – CATALYST FOR CHANGE


Futurecmo.org

Business and internal information

Marketing and sales Strategy, offering, operations Customer research and

behaviour analytics

CEO CFO CMO CSO HR etc.

Future CMO

Marketing profitability optimisation (Everything is

marketing: product, pricing, distribution, customer

experiences, organisation, promotions, reclamations…)

Translation of customer behavior to corporate strategy and operations management

Customer Market

and Business

view

Insights


CMO – Portfolio manager responsible for Allocation and Attribution

MARKETING PORTFOLIO

CUSTOMER PORTFOLIO

PRODUCTS AND

SERVICES PORTFOLIO

Sync

ECOSYSTEM VIEW? Convergence, re-structuring, new specialist diciplines.. Change in balance of power and influence


Integration of knowledge and diciplines will be inevitable = Co-creation and co-operation + completely new game changers (Black Swans)


Likelihood: the ecosystem players will create new coalition propositions and value creation methodologies in Symbiosis

IT CREATIVE AGENCIES

CONSUL-TING

MEDIA AGENCIES

RESEARCH &

ANALYTICS MEDIA

EDUCATION

CMO & BOARD OF

DIRECTORS BRAND = HOLISTIC ENTITY

Convergence of ecosystem and silos


•  Goals: Managing with knowledge and accountability •  CMO should be responsible creating a nervous system for corporate

portfolio management (customers – marketing – products and services): Limbic system = capability to react automatically to individual customer’s and

marketing opportunities and needs guiding and steering operations in any given customer interface

Cortex = Intelligence and analysis of the market, foresight and scenarios •  Components and partners supporting internal organisation:

IT infra: data capturing, warehousing and management, automatization Portfolio management: Marketing – customers - products and services Analytics and insights, scenarios and strategy Execution capabilities proactively and reactively Innovation and development: services, products, distribution, networks,

operations, partnering and communications Brand = Company as a holistic entity

CHANGE WILL BE AN ADVENTURE WE ARE ENTERING ALREADY = OPPORTUNITY and INSPIRATION


Check out futurecmo.org for more

THANK YOU [email protected] +358 50 55 22276


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dark toinen helsinki

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management discipline

corporate management

important leadership

creativity demand key