Chief Marketing Technologists Symbolize Marketing's Changing Role By Laura Mclellan
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Transcript of 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
@lauramclellan
© 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
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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.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
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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 ...
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4
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved
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Disruption at the business level …
5
Disruption at the technology level …
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6
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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
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Impact: the customer is now in charge
9
9
Very brand loyal
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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.
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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
Percentage of Respondents
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
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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?
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Impact: innovative technology underlies it all
13
Percentage of Respondents
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
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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.
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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
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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
Percentage of Respondents
Multiple choices allowed
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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
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Implication – marketers are equally technologists
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Creative marketing
skills
Technology marketing
skills
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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
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The chief marketing technologist comes of age
22
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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
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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
Percentage of Respondents
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
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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."
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… 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
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3 upcoming “flash points”
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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
Percentage of Respondents
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 - -
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More consolidation of sales & marketing
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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
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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
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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”
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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/
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
@lauramclellan