CIO & CMO Omnichannel Crossroads

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CIO-CMO

Omnichannel Crossroads

By EPAM Systems in partnership with CIO Magazine

and The CMO Club

APRIL 30th, 2015

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NEW AGE REQUIRES NEW RULES

*Forrester Research

AGE OF

MANUFACTURING

AGE OF

DISTRIBUTION

AGE OF

INFORMATION

AGE OF

CUSTOMER BEYOND

MUST DO’S:

• Re-orient business and processes around CUSTOMER EXPERIENCE

• Offer the RIGHT CONTENT at the RIGHT TIME at the RIGHT PLACE and in the RIGHT CONTEXT

• Leverage multiple data sources and apply intelligent business rules to ANTICIPATE customer need

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SOFTWARE IS THE BRAND*

*Forrester Research

CIO CMO

SOFTWARE IS THE BRAND*

SOFTWARE IS THE BRAND*

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414

Respondents

210

CIOs

204

CMOs

STUDY OBJECTIVE

1. Understand how top IT and Marketing executives perceive each other’s role, divide their

responsibilities and collaborate on key initiatives

2. Identify opportunities and best practices to strengthen their relationship and team’s performance.

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HOW DO THEY GET ALONG?

CIO CMO

VS

TECHNOLOGY

PROGRAMS

STABILITY

RISK AVOIDANCE

MARKETING

CAMPAIGNS

GROWTH

RISK TAKING

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82% of CIOs and 77% of CMOs

felt their relationship with

each other was excellent or

good.

The CIO/CMO Partnership Survey by CIO

Magazine

Only 1 out of 112 CMO

respondents referenced a

positive relationship with

their CIOs

The CMO Solution Guide presented by

The CMO Club and Oracle Marketing

Cloud

26% of CIOs view their CMO as

a rogue players.

The CIO/CMO Partnership Survey by CIO

Magazine

14% of CMOs view their CIO as

a road blocks.

The CIO/CMO Partnership Survey by CIO

Magazine

Less than 40% of marketing

heads believe their

technology and marketing

teams work well together.

Forrester, 2015: The Year of the Big

Digital Shift

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HOW HAS YOUR RELATIONSHIP CHANGED IN PAST 3 YEARS?

MUCH CLOSER

SOMEWHAT CLOSER

ABOUT THE SAME

SOMEWHAT FURTHER APART

MUCH FURTHER APART

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WHAT’S GETTING IN THE WAY?

CIO CMO

VS

1. LANGUAGE

2. FUNDING

3. OWNERSHIP

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THE LANGUAGE

BARRIER

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WHAT IS A “DIGITAL PRODUCT”?

CIO CMO

Custom software built and managed

as a core business capability

Boxed software or purchased

SAAS solution used for an

Acute business need

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WHAT IS A “PLATFORM”?

CIO CMO

Preconfigured software tools used to

quickly build a digital product. Must

interface with enterprise.

A complete system for supporting a

particular need. Might interface with

enterprise.

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WHAT IS “AGILE”?

CIO CMO

Highly flexible software

development methodology that

requires deliberately ambiguous

timelines and deliverables

A desired state of operations in

which the company can change

direction rapidly as market

conditions change.

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WHAT IS “OMNICHANNEL”?

CIO CMO

Systems that are fully integrated

with real-time data flow to and from

all end-points, regardless of location.

A customer experience that is

consistent and appropriate across

every touchpoint in every location.

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WHO CONTROLS SPEND?

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By 2017 the CMO will spend

more on IT than the CIO.

Gartner Research

By 2016, line of business will

control 40% of IT spending.

Frank Gens, Chief Analyst for IDC

75% of CMO’s budget will be

devoted to digital and digital

technology.

Accenture 2014 CMO Insights Survey

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HOW WILL CIO’S CONTROL OF TECHNOLGY SPEND CHANGE?

INCREASE

STAY THE SAME

DECREASE

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HOW OFTEN DO PROJECTS OUTSIDE OF IT CONTROL RUN AMUCK?

CONSTANTLY

OFTEN

SOMETIMES

RARELY

NEVER

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OWNERSHIP

ISSUES

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WHAT AREAS OF DIGITAL SHOULD YOU OWN?

ADVERTISING PLATFORMS

CONTENT MANAGEMENT

ONLINE VIDEO PLATFORMS

eCOMMERCE PROGRAM

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WHAT AREAS OF DIGITAL SHOULD YOU OWN?

MOBILE APPLICATIONS

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OWNERSHIP CONFLICT:

WHY MOBILE?

1. EXTREMELY HOT

3. UNCLEAR DELINEATION BETWEEN EXPERIENCE

& TECHNOLOGY

4. SHORT-HAND FOR OMNICHANNEL

2. TRADITIONALLY IN IT’S CONTROL

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EPAM PREDICTION:

BIG DATA WILL BE NEXT AREA

OF CIO / CMO CONFLICT

1. HEATING UP

3. ABILITY TO EXTRACT VALUE IS IN

MARKETING’S CONTROL

4. REQUIRED FOR OMNICHANNEL

2. ACTUAL DATA IS IN IT’S CONTROL

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We must, indeed, all

hang together, or most

assuredly we shall all

hang separately.

Ben Franklin , 1776

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PARTY CRASHERS

CIO CMO

CCO

CXO

CMTO

CDO

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Less than 50% of marketers

believe they are effective at

digital marketing.

Forrester Research, 2015: The Year of

the Big Digital Shift

Less than 40% of marketers

believe they have adequate

processes in place for digital.

Forrester Research, 2015: The Year of

the Big Digital Shift

Confidence among CMOs in

their own team’s capabilities

is lowest in eCommerce,

Personalization & Targeting

and Analytics.

Adobe, Digital Distress: What Keeps

Marketer’s Up at Night?

WHY CMOS NEED CIOS

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HOW TO ENSURE A

SHARED JOURNEY?

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7 STEPS TO FORGING

A STRONG CIO / CMO

PARTNERSHIP

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STEP 1. ESTABLISH A COMMON TONGUE

• Dig beneath the jargon and find a shared

understanding of key terminology

• Identify translators” in each department

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STEP 2. CROSS-TRAIN IN EACH OTHERS’ DISCIPLINES

• Commit to learning and develop a unique

perspective

• Swap reading list and join each other at

industry conferences

• Invest time teaching each other the

fundamentals of your respective areas

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STEP 3. ALIGN ON THE CUSTOMER EXPERIENCE VISION

• Get on the same page as to who your

customers are

• Chart the journey together

• Agree on the ideal, differentiated

experience

• Deconstruct into strategy and tactics

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STEP 4. CO-AUTHOR A DIGITAL ROADMAP THAT MAPS

TECHNOLOGY AND PROCESS TO THE VISION

• Get a handle on the ecosystem required to

power the vision

• Understand how the pieces will work together

and ensuring data flow

• Jointly define the MVP and agree on a realistic

phased evolution of the program

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STEP 5. POOL RESOURCES TO SUPPORT THE PLAN

• Cost out the total solution together and virtually

combine your budgets to ensure underwriting

• Identify talent gaps hidden where the lines

between marketing and technology get blurry

• Make joint-case to executive committee for

headcount or funding increases required

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STEP 6. CREATE A CULTURE OF COLLABORATION BETWEEN

IT AND MARKETING UNITS

• Extend the partnership mandate through both

divisions, make the second and third layers of

management “own” it

• Create cross-functional teams, make them

virtual if you are not ready to change

reporting lines.

• Consider pair marketing analysts and IT data

scientists to form the core connection

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STEP 7. USE MOBILE AND BIG DATA AS IMMEDIATE,

HIGH IMPACT OPPORTUNITIES TO COLLABORATE

• Uncover where you currently have redundant efforts and

eliminate the inefficiency

• Assign your new cross-functional team to crafting a clear

plan on how mobile and data will achieve the vision

• Build confidence and competency by perfecting their

“blocking and tackling” before setting out on more

sophisticated initiatives

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THEY GET IT,

BUT WILL THEY DO IT?

CIO CMO

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Q&A Kevin Labick

Co-Head, Digital Engagement, EPAM

[email protected]

Please visit WWW.EPAM.COM/CIO-CMO for more information

Maryfran Johnson

Editor in Chief, CIO Magazine and Events

Pete Krainik

Founder and CEO, The CMO Club

Elaina Shekhter

Head of Travel and Consumer Industry Business Unit, EPAM

Martin T. Focazio

Managing Director, Strategic Services, EPAM

ADDITIONAL CONTRIBUTORS