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Advanced Operating Models Research Insights: Marketing
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Transcript of Advanced Operating Models Research Insights: Marketing
Marketing
Advanced Operating Models
Research Insights
PROCESS • ANALYTICS • TECHNOLOGY 2© 2014 Copyright Genpact. All Rights Reserved.
Contents
Survey insight goals 3
Survey parameters 4
Key challenges by function 5
Marketing function impact: CPG, High Tech, Manufacturing 6
Marketing maturity: BFSI vs. CPG, High Tech, Manufacturing 7
Marketing preparedness by maturity 8
Impact of advanced organizational structures 9
Conclusion 10
PROCESS • ANALYTICS • TECHNOLOGY 3© 2014 Copyright Genpact. All Rights Reserved.
INSIGHTS NARRATIVE
What are the most pressing company challenges?
How can functions and related operations address them? Which functions are most
effective at it?
Are those functions mature?
Are those functions ready to transform further?
Can new operating models of those functions help them transform? Which ones?
What can the impact of that transformation be?
PROCESS • ANALYTICS • TECHNOLOGY 4© 2014 Copyright Genpact. All Rights Reserved.
10%25%
65%
Risk15%
Operations
40%
Marketing15% Procurement
13%
Finance17%
84%
16%
52% of marketing respondents are from the high tech industry
Sample of 912 senior executives, 120 from Marketing
METHODOLOGY
53% of marketing respondents are from North America
85% of marketing respondents are from larger companies
84%
16%
10,000+
5,001-10,000
Regions Size* Functions
Source: Survey commissioned by Genpact to an independent research firm. The respondents were selected on the basis of their ability to make or materially influence operating model decisions, and likely range from senior executives to top management.
*Company size defined by number of employees n=912
PROCESS • ANALYTICS • TECHNOLOGY 5© 2014 Copyright Genpact. All Rights Reserved.
CHALLENGES ► BY FUNCTION
Overall
Finance
Procurement
Marketing
Operations
0 10 20 30 40 50 60 70
Marketing sees growth and customer satisfaction as key enterprise challenges
Ensure compliance to regulations
Increase customer satisfaction
Reduce capital and asset intensity
Manage risk
Increase growth and scalability
Enable company’s innovation
Enable agility and adaptability
Reduce costs
n=912 executives from a survey commissioned by Genpact with an independent research firm
% of respondents from various functions stating challenge as among the ‘Top 3’ for their company
PROCESS • ANALYTICS • TECHNOLOGY 6© 2014 Copyright Genpact. All Rights Reserved.
MARKETING ► CHALLENGES ► BANKING, CAPITAL MARKETS, INSURANCE vs. CPG, HIGH TECH, MANUFACTURING
Financial sector concerned with compliance and risk; CPG, high tech, and manufacturing with growthImportance of the challenge (% of marketing respondents across industry segments stating that the challenge is among the ‘Top 3‘ for their company)
n=111 marketing executives from CPG, high tech and manufacturing, 18 from banking, capital markets and insurance, from a survey commissioned by Genpact with an independent research firm
DIRECTIONAL
64
56
67
10
13
20
35
51
48
59
17
61
6
22
44
28CPG, HIGH TECH, MANUFACTURING
BANKING, INSURANCE, CAPITAL MARKETS
Ensure compliance to regulations
Reduce cost
Increase customer satisfaction
Manage risk
Increase growth and scalability
Enable company’s innovation
Enable agility and adaptability
Reduce capital and asset intensity
PROCESS • ANALYTICS • TECHNOLOGY 7© 2014 Copyright Genpact. All Rights Reserved.
n=111 CPG, high tech and manufacturing marketing executives from a survey commissioned by Genpact with an independent research firm
MARKETING ► FUNCTION IMPACT ► CPG, HIGH TECH, MANUFACTURING
44 28
66 46
31 54
39 51
56
4951 49 45 25
4 5869 6042Marketing analytics
962 4376 33Marketing automation and
campaign management
1324 7274 33Multi-channel marketing and
customer management
5255 5159 60
Ens
ure
com
plia
nce
to r
egul
atio
ns
Red
uce
cost
s
Incr
ease
cu
stom
er
satis
fact
ion
Incr
ease
gro
wth
an
d s
cala
bilit
y
Man
age
risk
Ena
ble
com
pany
in
nova
tion
Ena
ble
agili
ty
and
ad
apta
bilit
y
37Master data management
Advanced, data-intensive marketing functions solve numerous enterprise challenges
% o
f re
spo
nd
en
ts s
tatin
g
fun
ctio
n c
an
ha
ve m
ate
rial
imp
act
on
ad
dre
ssin
g c
ha
llen
ge
Magnitude of challenge1
DIRECTIONAL
1 % of respondents stating it is one of the top 3 challenges in their company
PROCESS • ANALYTICS • TECHNOLOGY 8© 2014 Copyright Genpact. All Rights Reserved.
Multi-channel marketing and customer engagement
Master data management 11 21 68
Marketing automation and campaign management
16 22 62
6 20 74
Marketing analytics 14 24 62
MARKETING ► MATURITY ► CPG, HIGH TECH, MANUFACTURING
Somewhat mature/ImmatureMatureVery mature
% respondents stating the maturity of the marketing functions in their organizations
Most marketers see their advanced functions as relatively immature
n=111 CPG, high tech and manufacturing executives from a survey commissioned by Genpact with an independent research firm
DIRECTIONAL
PROCESS • ANALYTICS • TECHNOLOGY 9© 2014 Copyright Genpact. All Rights Reserved.
MARKETING ► OPERATING MODEL INITIATIVES ► CPG, HIGH TECH, MANUFACTURING
Advanced organizational structures (BPO/SSC) seen as more impactful than other operating model initiatives
47
34
45
45
41
56 6027
Business process reengineering
Radically improved use of technology
60
45 58
56
Impact Index*
Marketing analytics
Marketing automation and campaign management
Multi-channel marketing and customer management
Master data management
140
130
127
152
% of respondents stating the initiative can have a material impact on the function
n=111 CPG, high tech and manufacturing marketing executives from a survey commissioned by Genpact with an independent research firm
BPO or SSC or hybrid1
* Function Impact Index combining stated importance of challenges and stated ability of a function to address them
1 BPO: Business Process Outsourcing; SSC: Shared Services; Tech = “radically improved use of technology”
DIRECTIONAL
PROCESS • ANALYTICS • TECHNOLOGY 10© 2014 Copyright Genpact. All Rights Reserved.
$163M
$144M
$105M
SSC, BPO, Hybrid1BPRTech
MARKETING ► OPERATING MODEL IMPACT ► CPG, HIGH TECH AND MANUFACTURING
Technology has higher estimated impact but SSC/BPO1 are considered more often
Annual $ impact is the impact of operating model initiatives in US$ per annum including reduction of cost, capital required, improvement of cash and revenue growth
Average $ impact
DIRECTIONALAverage $ impact, bar width proportional to percent of respondents stating that the initiative will have a material impact
1 BPO: Business Process Outsourcing; SSC: Shared Services, BPR: Business Process Reengineering; Tech: radically improved use of technology
n=111 marketing executives from CPG, high-tech and manufacturing from a survey commissioned by Genpact with an independent research firm
PROCESS • ANALYTICS • TECHNOLOGY 11© 2014 Copyright Genpact. All Rights Reserved.
In conclusion
CMOs and other senior marketing executives believe that the marketing function plays a strategic role in addressing the daunting challenges presented by a slow economic recovery, demanding customers and continued uncertainty.
This research examined how those challenges can be tackled by three levers of operating model transformation: technology, process re-engineering, and advanced organizational structures. The related transformation of operations is an untapped strategic lever for the CMO as well as the CEO.
However, it is sometimes seen as a formidable undertaking. Few understand the “IT + analytics + process operations” nexus sufficiently. Technological excesses of the past (such as ERP or data warehouses) are well documented. Some technologies are unproven, some uses of analytics are unclear, and older technologies are rigid and expensive to evolve. Finally, it is frequently a struggle to scale deep analytics throughout the enterprise.
Our experience of advanced operating models, accumulated over 15 years, clearly indicates that there are agile and practical ways to transform.
The key is to design, transform, and run the processes that power advanced operating models so that they closely align with measurable business goals, thereby avoiding saddling the company with unnecessary and often unmanageable complexity.
This approach focuses more rigorously on the sources of impact and deliberately disregards any practice that does not yield material outcomes. It also takes a more objective and holistic look at technology, analytics and organizational practices. It leverages now-mature “system of engagement” technologies that complement “system of record” technologies. It treats analytics (the arc of data-to-insight-to-action) as a process and determines how to embed insight at scale into the fabric of other enterprise processes; it does not take the typical approach of viewing analytics as a task and a set of technologies. Finally, it harnesses the process and organizational levers available from established disciplines, such as reengineering, shared services, outsourcing, and global delivery.
We think that there is a smarter way to transform operating models and address the most complex strategic challenges. This is a way for CMOs to make their enterprises more intelligent and generate material impact.
PROCESS • ANALYTICS • TECHNOLOGY 12© 2014 Copyright Genpact. All Rights Reserved.
About Genpact
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run business operations including those that are complex and industry-specific. We believe that our approach, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, is more focused, unbiased and agile than that of our competitors. Our solutions integrate technology, data and processes into advanced and adaptable operating models that foster growth and facilitate better management of cost and regulations in uncertain times. The result is intelligent operations of a range of functions such as finance, supply chain, origination and client servicing, compliance, and risk. We have hundreds of long-term clients including more than one-fourth of the Fortune Global 500. We have rapidly grown to over 66,000 people in 25 countries with key management and corporate offices in New York City. Our global critical mass doesn’t dilute our flexible and collaborative approach, and our management team drives client partnerships personally. We attribute much of our success to our unique history – behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years.
For more information, visit www.genpact.com.
Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.
© 2014 Copyright Genpact. All Rights Reserved.
Genpact Research Institute
The Genpact Research Institute is a specialized think tank harnessing the collective intelligence of Genpact – as the leading business process service provider worldwide - its ecosystem of clients and partners, and thousands of process operations experts. Its mission is to advance the “art of the possible” in our clients’ journey of business transformation and adoption of advanced operating models.
www.genpact.com/research-institute