the cio & cmo – adversaries no more
DESCRIPTION
As marketing is getting more and more complex, data intensive and technology driven, it is important for CIOs to understand the new marketing era we live in. The pressure for CIOs to earn a seat at the strategic table was greatly enhanced by Gartner's report in 2012 that pointed to the CMO as the champion of the technology budget in the near future. Specifically, CIOs can partner with marketing leaders to optimize the use of technology to increase execution velocity and scale departmental efficiency. A collaborative relationship between the CIO and CMO is a must in today's evolving IT landscape, as they drive towards ensuring a customer-driven approach that benefits the entire business.TRANSCRIPT
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Vala Afshar Author – The Pursuit of Social Business Excellence
Blogger – Huffington Post, Information Week, Inc.
Social Media – Active on Twitter and Slideshare
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“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
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Top 10 people mentioned by marketing executives.
The #1 Retweeted and Mentioned Person by Marketers
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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
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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
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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
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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
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90% of Revenue Growth in the Next 10 Years Will Come From the Third Platform - IDC
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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
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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
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2014 CIO Priorities
“Measurement is fabulous. Unless you’re busy measuring what's easy to measure as opposed to what's important.” – Seth Godin
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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
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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
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CMOs – 2014 and Beyond How will CMOs and CIOs work together?
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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
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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
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IDC - 2014 Marketing Technology Map Digital Transformation of Marketing
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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
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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?
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Traditional Business Digital Business
Marketing IT Marketing IT
Add colors to bkgds.
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§ 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
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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
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CIO, FCC DAVID BRAY
Put culture first Create a culture of "intrepreneurs"
Opt for agile adoption in phases
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CIO, INTEL KIM STEVENSON
No IT projects, only business projects IT should help transform the business Connect to new sources & influential people
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CIO, HP RAMON BAEZ
Never deploy something the business isn't ready for Form close relationships with the business units
Extend innovation beyond IT
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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
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CIO, NETFLIX MIKE KAIL
Focus on cloud wherever possible IT's charter is to improve business efficiency
Partner with line-of-business
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CIO, US GSA CASEY COLEMAN
Go first and stay ahead Focus on user experience
Technology for business sake
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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
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CIO, COLORADO KRISTIN RUSSEL
Control is an illusion Collaborate to co-create value
Innovation is closest to the frontline
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CIO, UNH JOANNA YOUNG
Be open to innovation Take a 460 degree view
Social accelerates contribution
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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
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CIO of San Francisco MARC TOUITOU
Customer's business requirements are #1 Simplify. Accelerate.
Be the Chief Enthusiast Officer
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CIO, SETON HILL PHIL KOMARNY
Mobile-first is expected Social media is a learning thing You can’t be relevant without being social
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CIO, CELTICS JAY WESSEL
Maintain a winning attitude Teamwork across departments
Adore what you do. Passion drives excellence
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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
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CDO, HARVARD UNIVERSITY PERRY HEWITT
Digital should be everyone's job Think from the outside-in
Management needs to live digital
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VP CONTENT, NE PATRIOTS FRED KIRSCH
Know your customers IT infrastructure is a business asset Big Data rewards customer engagement
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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
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CEO, BOX AARON LEVIE
Collaborate with the business IT should be the information enabler Pay attention to where customers are going
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CMO, SAP JONATHAN BECHER
Be deliberately digital Democratize Business Intelligence
Build programs from the audience in
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GROUP VP, IDC MIKE FAUSCETTE
CMO owns the results of Big Data Customer communication platforms CMO chooses the tools, but CIO makes them work
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GROUP VP, GARTNER MARK P. McDONALD
The emerging CDO Technology is bigger than IT
14% of total economy now happens online
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FOUNDER, ALLTOP.COM GUY KAWASAKI
Trust the crowd Social amplifies voice and choice
CIOs empower CMOs to focus outwardly
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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
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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
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“The most powerful combination is the CMO and CIO working together with a shared goal to grow the business.”
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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
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Building a Community § Contextual intelligence: real-time web personalization § Understand customer’s needs § Engage during moment of research
The Social Web
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“Partner with the CIO organization so that the IT strategy and tactics for the marketing function become shared and unified.”
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§ 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
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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