Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan

Chief Marketing Technologists Symbolize Marketing’s Changing Role

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Laura McLellan

[email protected]

@lauramclellan

mailto:[email protected]

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved

Gartner for Marketing Leaders

Talk about making a big splash …

1

“By 2017, the CMO will spend more on IT* than the CIO”

* Technology and technology-enabled services from external marketing service providers



Preview

2

• It's no secret that companies increasingly rely on marketing to

achieve key business objectives. Nor that marketing relies on

technology and data to accomplish this. As a result, demand for

dedicated marketing technology expertise is high.

• Organizational solutions to meet the need go far beyond adding

skills and capabilities – they need to simultaneously

accommodate profound changes in the role marketing plays.

• The best chief marketing technologists accelerate the shift from

traditional governance, sourcing, and risk management to agile

processes, a results mindset and culture of innovation. This

presentation distills the most critical trends and ramifications.



Storyline

3

• What’s happening

• What’s the impact

• What are the implications

• Where chief marketing technologists fit in

• What’s next

What’s happening is digital disruption ...



4



Disruption at the business level …

5

Disruption at the technology level …



6



Disruption at the people level …

7

8

Major impacts to marketing

The customer is now in charge

The sales funnel is blown to bits

The economy is all about the experience

Data is the driver of decisions

Innovative technology underlies it all





Impact: the customer is now in charge

9

9

Very brand loyal



Impact: the sales funnel is blown to bits

10

Web or e-commerce

50.4

Mobile commerce

22.3

Social commerce

18.3

Other 8.9

Q: What percentage of your revenue realized from digital commerce this year is attributed to the following channels?

Percentage of Revenue

n= 211

Excludes Don’t know

46

37

9

8

0 10 20 30 40 50

Yes, marketing has itsown P&L today

Yes, but marketing sharesthe P&L with one or more

business units

No, but we plan to have aP&L in the next 24 months

No, we have no plans formarketing to have its own

or a shared P&L

Percentage of Respondents

Q: Does your marketing organization have its own P&L to capture revenue from sales that are made through digital channels?

n=274.

Excludes DK.



Impact: the economy is all about the experience

11

1

2

7

8

43

63

91

55

30

0 10 20 30 40 50 60 70 80 90 100

2 years from now

Today

2 years ago


Bottom Two Middle Three Top Two

4.8

5.6

6.4

Mean Score

1 - Does Not Compete On

7 - Entirely Competes On

Q: Please rate to what degree your organization competes on the basis of the customer experience over the following timescales on a scale of 1 to 7 where 1 = does not compete on and 7 = entirely competes on

Two years from now 90% of marketers say they will compete almost entirely on the basis of the customer experience



Impact – data is the driver of decisions (also shared and sold)

12

Yes 54%

No 46%

Yes 75%

No 25%

Yes 87%

No 13%

Sell or share data?

n = 226

21

58

62

21

36

57

18

20

35

12

25

29

7

16

32

Embryonic

Intermediate

Progressive

Share data with saleschannel partners toimprove sales

Share data with mktgagency partners toimprove advertisingeffectiveness &accountabilityShare data with topcustomers to improveloyalty

Sell data to our bestcustomers

Sell data to big datacollection companies

Q: To what degree is your organization currently monetizing its aggregated data to customers or sales channel partners?



Impact: innovative technology underlies it all

13


22% 23% 18% 22%

39% 44%

32%

43%

30% 23%

40%

27%

6% 9% 8% 5% 3% 1% 2% 3%

Capitalexpenditures for

technology

Technologyexpenses

Cross-chargedexpenses from

Internal IT

Expenses for MktgSvc Providers

Expect significantdecrease

Expect slightdecrease

No change

Expect slightincrease

Expect significantincrease

Q: Over the next 2 years, do you expect your organization to increase or decrease investments in these areas?

61% 50% 67% 65%

n = 244

14

Major implications

Marketing’s role is expanding

IT moves to a bimodal organization

CEO’s shift investment priorities

Marketers are equally technologists

Budget (& complexity) rises





Implication – marketing’s role is expanding

15

The Digital CMO and their organizations

are responsible for mastering technology

and digital techniques to improve all

marketing customer-related processes

and grow the business by:

• defining markets

• developing & managing offerings

• attracting, acquiring and retaining

customers.



Implication – IT moves to a bimodal organization

16

Reliability Goal Agility

Price for

performance Value

Revenue, brand,

customer experience

Waterfall, V-Model,

high-ceremony IID Approach

Agile, kanban, low

ceremony IID

Plan-driven,

approval-based Governance

Empirical, continuous,

process-based

Enterprise

suppliers, long-term

deals

Sourcing Small, new vendors,

short-term deals

Good at

conventional

process, projects

Talent Good at new and

uncertain projects

IT-centric, removed

from customer Culture

Business-centric, close

to customer

Long (months) Cycle Times Short (days, weeks)

Think Marathon Runner

.

Think Sprinter

Mode 1 Mode 2



Implication – CEOs shift investment priorities

17 n = 410 CEO’s & Sr. Bus. Executives

Q: Which five technology enabled capabilities will be the most important areas of investment to improve your business over the next 5 years?

20

20

22

23

24

27

32

34

34

38

0 10 20 30 40

Product cost analytics

M-commerce

Supply chain optimisation and traceability

Enterprise mobility

Big Data / Data science

Cloud business

Business analytics

Customer experience management

E-commerce

Digital Marketing


Multiple choices allowed



Implication - organization adds new roles

VP Marketing

Digital Marketing

Manager

Mgr. Social

Marketing

Mgr. Mobile

Marketing

Mgr. Content

Marketing

Marketing

Analytics Mgr

DM Center of

Excellence

Marketing

Business Analyst

Dig Mktg.

Measurement

Branding

Digital

Commerce

Dig Mktg

Sourcing

DM Systems

Integration

Multichannel

Marketing

Partner

Marketing

Chief marketing

technologist

Data Executive Digital Marketing

Bus. Strategist

CMO Chief Digital

Officer

Chief Customer

Officer

Innovation

Executive

DM

Operations

Traditional

Marketing

Field Marketing

Corporate

Communications

Digital Offering

Development

Internal IT

Liaison

18



Implication – marketers are equally technologists

19

Creative marketing

skills

Technology marketing

skills



Implication – budget (+ complexity) rises

20

10.4%

2.5%

10.7%

3.1%

Total Marketing Digital Marketing

2012 2013

Budget as % of Revenue

+ 20%

n = 285 (2013) & 203 (2012) Share background * Companies with revenue > $500M

21

Chief marketing technologists

CMTs come of age

CMTs become ubiquitous

CMT responsibilities continuum

CMTs improve marketing/IT dynamic

CMTs help push adoption of adaptive sourcing





The chief marketing technologist comes of age

22



81% of large companies now have the equivalent of a chief marketing technologist

23

Chief Marketing Technologist: The equivalent of a CTO and CIO dedicated to marketing, familiar with all kinds of marketing software, data and analytics, social and mobile platforms, content marketing, Web mechanics, and digital advertising networks, among other topics.

81%

do

2012

83% Have a

marketing innovation

budget

80% Have a

marketing capital budget

n = 285 Q: Specify whether your organization presently has the equivalent of a Chief Marketing Technologist

in 2013



CMT responsibilities continuum

24

50

59

63

65

67

0 50 100

Craft technology-enabled digital business models

Prioritize funding for marketing technologies

Select, evaluate and choose marketing technology providers

Facilitate projects and communications between marketing andinternal IT

Align marketing technology with business goals


Set mktg. tech. strategy

Mktg. tech. roadmap

Mktg. tech. budgets

“ Provider selection

Training/change mgmt.

CMO advisor

De facto CDO

Cross-functional customer focus

Digital transformation

Innovation leader

Incubator leader

C-suite advisor



CMTs are helping shift the marketing/IT dynamic

25

Independence: "We're going to keep on doing our own thing with our own budget."

Secession: "We'll appoint a CDO or Marketing CTO to manage all things digital.

Collaboration: "We have to figure out how to work together with marketing."

Innovation: "We'll work together on this and break away from the competition with new and better practices and use of technology."



… to CIO or Shared-service COO

CMTs play a key role in adoption of adaptive sourcing

… to Business Units, Supply Chain,

Process Owners

… to R&D, Chief Digital Officer, Chief

Marketing Officer

Decision Owner From the CIO, CFO or

the Board …

Innovate

Differentiate

Run

The move from rigid outsourcing & project contracts … to partnering, crowdsourcing, CSI, BPaaS, JVs, Spin-off, M&A, agile development

27

What’s next

CMTs expand their role in innovation

More consolidation of sales & marketing

Marketing technology integration



3 upcoming “flash points”



CMTs expand their role in innovation

Does the innovation team aim to drive specific

innovations forward, or enable others to innovate?

Does the team aim to leverage existing

pockets of innovation, or unleash new

innovators?

Everyone

Responder

Helps business units deploy new technologies through a

tactical and pragmatic "SWAT" team approach.

Respond

Will the team invent fundamentally new

approaches, or apply and adapt existing

and emerging ideas and capabilities?

Lead

Scholar

Investigates technologies ahead of business need

through primary research and development.

Invent

Navigator Determines the strategic

business impact of emerging technologies,

through tracking, evaluation, and piloting.

Adapt

Pollinator

Encourages and mentors distributed innovation

activities throughout the organization.

Unleash

Will the team primarily respond to

business suggestions, or lead

and inspire the business leaders?

Drive

Will the team work primarily with

executive decision makers, or a broad base of managers

and teams?

Enable

Conductor Coordinates and

leverages emerging technology activities

performed in other parts of the organization.

Leverage

$

Suitable for part-time or resource-constrained teams $

Counselor

Educates senior management on emerging

technology issues and potential.

Executives

$

29


Q: In order to fund digital marketing, which of the following statements are true?

40 41

28 27 28

Not asked

44 43

35 31 32

22

74 73

54 60 59

51

0

10

20

30

40

50

60

70

80

We are funding digitalmarketing from withinthe existing marketingbudget and squeezingspending on multiple

other marketingactivities

We are saving moneywith digital marketing asopposed to traditional

marketing and thesavings is funding

continued investments

We reduced ourtraditional advertising

budget

We obtainedincremental funding fordigital marketing from

other functions orbusiness units

We justified a netaddition to the

marketing budget fordigital marketing

activities without cuttingelsewhere

We obtained funding fordigital mktg from

reductions in salesbudget because buyers

have changed theirpurchase journey anddigital mktg activities

replace some activitiespreviously performed by

sales

2012 (n=253) 2013 (n=285) 2014 (n=199)*

- - Marketing reinvestment - -

- - Incremental - -

- - Sales - -


More consolidation of sales & marketing



CSP = communication service provider;

DM = digital marketing;

DMP = data management platform;

DOOH = digital out-of-home;

NFC = near-field communication;

OTT= over-the-top;

PM = program management;

RT = real time;

SEM = search engine marketing;

SEO = search engine optimization;

UX = user experience;

UXP = user experience platform

Product Station

Vendor Station

Offline Connection

AD OPS

DATA OPS

MOBILITY

WEB OPS

SOCIAL OPS

DESIGN

MARKETING OPS

CREATIVE

Connection to CMO

Connections to Sales and Service

Connection to General Advertising

Connection to IT Connection to

Business Intelligence

Web Content Mgmt. Web Analytics

Virtual Actors

Video Ad Networks

Video Ad Mgmt.

Venues

User Groups

UXP

UX Design

Tag Mgmt.

Social TV Social Networks

Social Mktg. Mgmt.

Social Commerce

Social Apps

Social Analytics

Social Ads

Smart Kiosks

Site Retargeting

Search Retargeting

Search Engines

SEO Tools

SEM Platforms

Rich Media Search

Real-Time Decisioning QR Codes

Programmatic Media

Program Guide

Promo

Reviews & Recs

Embedded Merch

Product Design

Compliance

Predictive Campaign Analytics

OTT Video Online Video Publishing

Online Retailers

Data Exchanges

NFC

Natural Language

Questioning

Native Ads

Campaign Mgmt.

Mobile Search

Mobile Messaging & Commerce

Mobile Media & Targeting

Mobile App & Content Svs Mobile App

Marketplace

Mobile Analytics

Mobile Ad Networks

Microsensors

Media Labs

Media Companies

Media Agencies

Marketing Service

Providers

Mktg. Resource

Mgmt.

Management Consultants

Marketing Analytics

Lead Mgmt.

In-Game Ads

Idea Mgmt.

IT Service Providers

Geotargeting

Geofencing

Gamification Tools

Finger- printing

Experience Targeting

Emotion Detection

Email Mktg.

E-Commerce Enablers

Dynamic Creative

DOOH Media Svcs

Digital Offers

Media Metrics

Digital Asset Mgmt.

Digital Agencies

Data Warehouses

DMP

Customer Analytics Crowdsourcing

Content Marketing

Data Providers

Communities

CSPs Census and Panel Data

Business Process

Outsourcers

Blogs

Automatic Content Recognition

Augmented Reality

Attribution

Agile Mktg. PM Agency Holding

Companies

Advocacy Mktg.

Addressable TV

Ad Verification

Online Ad Networks

Ad Exchanges

A/B Testing

MOBILE

STRATEGY

EMERGING TECH

ANALYTICS

AD TECH

UX

SOCIAL

COMMERCE

Mktg. Mgmt.

SEARCH

CREATIVE

RT DATA

Marketing technology integration – via software as well as service integrators

DM HUB

Analy-

tics

Ad

Tech

User

Exp.

Digital

Comm

Mktg

Ops

Search

MARKETING HUB

Social

Mobile

30



Three upcoming “flash points”

31

Modifying processes and updating underlying technologies to create a holistic customer experience - between Marketing, Customer Service and Sales, if not more broadly

Replacing your e-commerce platform with a customer-centric digital commerce ecosystem, including elements run by marketing

Developing new “internet of things”-influenced digital products and services



Storyline revisited

32

• Digital disruption on a broadening scale

• Main impacts on marketing:

* Customer in charge * Sales funnel blown up

* Experience economy * Data & analytics = driver

* Innovative technology underlies it all

• Major implications:

* Mktg. role expanding * IT moves to bimodal org.

* Marketers as technologists * CEO investment priorities

* Budget & complexity rises

• Chief marketing technologists: * Come of age & are ubiquitous * Continuum of responsibilities

* Improving Mktg./IT dynamic * Promote adaptive sourcing

• What’s next * Expanded role in innovation * Mktg/sales consolidation

* Mktg technology integration * 3 “flash points”



Recommended reading

33

• Strategic Pressures Expand the Chief Marketing Technologist Mandate G00266856

• Find a Chief Marketing Technologist to Seize Business Advantage G00262061

• What the Chief Marketing Technologist Needs to Know About the Digital Marketing Hype Cycle G00266857

• How the Presence of a Chief Marketing Technologist Impacts Marketing G00259204

• HBR article “The Rise of the Chief Marketing Technolgist” available free at http://www.gartner.com/marketing/digital/

http://www.gartner.com/marketing/digital/




Chief Marketing Technologists Symbolize Marketing’s Changing Role

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates, and is for the sole use of Gartner’s intended audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and may not be further copied, distributed, or publicly displayed without the express written permission of Gartner, Inc. and/or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Laura McLellan

[email protected]

@lauramclellan

mailto:[email protected]

Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan

Marketing

Transcript of Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan