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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
Turbulence for the CMO: Charting a path for the seamless customer experience, Accenture, April 2013. http://my.gartner.com/portal/server.pt?open=512& objID=202&mode=2&PageID=5553&ref=webinarrss&resId=1871515
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
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Identify the CMO as the chief experience officer (CXO). Accept IT as a strategic partner with marketing, not just as a platform provider. Agree on key business levers for marketing and IT alignment, such as access to customer data vs. privacy and security. Change the skill mix to ensure that both organizations are more marketing- and tech-savvy. Develop trust by doing just thattrusting. As consumers head full speed into a world where brand and technological experiences are indistinguishable, revamped marketing and IT organizations need to be jointly responsible for owning the design of the customer experience. Data insights, technology and creative strategy must unite to orchestrate experiences across channels and business units. With a platform of trust and transparency, powered by analytics and technology, CMOs and CIOs will be able to seize the digital opportunity and provide the relevant and seamless experiences their customers demand.
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
CMO+CIO
36
64
CMO
44
56
CIO
23
77
Yes
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
CMO Frustrations
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 Marketing makes promises without agreement from IT IT department prefers to build but not integrate best-in-class technologies Dont have control of the technology choices made by IT counterparts IT deliverables fall short of expectations IT team does not understand urgency of data integration Prefer to buy technology as a service and not rely as much on IT The technology is siloed and too difficult to use to craft cross-channel experience Strongly disagree Strongly agree 2 9 3 5 6 9 9 10 9 10 12 16 10 18 13 18 13 14 18 17 17 16 19 17 38 38 32 36 38 35 35 36 38 34 32 36 38 36 34 33 28 29 28 31 28 26 25 25 13 10 11 12 11 10 11 7 8 9 10 10
Top 2 51 46 45 45 39 39 39 38 36 35 35 35
CIO Frustrations
Software service needs careful planning CMO understands companys IT infrastructure IT employees understand marketing programs Marketing pulls in technologies without consideration for IT standards Marketing understands technology Marketing makes promises without agreement from IT Marketing team lacks understanding of data integration Marketing does not provide adequate level of business requirements Due to complexity there are multiple platforms to manage cross-channel experiences Marketing teams dont have IT skills Marketing requirements and priorities change too often Strongly disagree Strongly agree 14 3 6 3 6 3 7 6 6 5 10 6 16 15 15 14 16 17 13 15 18 30 36 31 29 34 31 32 31 39 33 37 40 38 35 35 33 31 32 33 33 32 28 25 17 15 14 15 16 15 13 9 10 12
Top 2 65 55 50 49 48 48 47 46 42 42 40
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
I think we could better integrate or unify by understanding the strategies, goals and needs of the other and then collaborating to align our objectives.
Director of Marketing, Fortune 500 US insurance company
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
CMO With CSO/Sales organization With CIO/IT organization With business units/geographies With CEO/Board of directors With CFO/Finance organization With CCS/Service organization With COO/Manufacturing-production With CPO/Procurement organization Not important 8 12 9 13 14 15 19 19 27 31 34 32 32 35 36 37 40 34 38 33 37 35 31 30 25 23 19 21 17 16 15 14
Extremely important
CIO
With CFO/Finance organization With business units/geographies With CSO/Sales organization With CMO/Marketing organization With CEO/Board of directors With CCS/Service organization With COO/Manufacturing-production With CPO/Procurement organization Not important 6 6 8 7 7 10 14 12 16 20 19 21 25 23 21 25 44 45 38 39 35 37 35 36 33 29 35 33 34 31 30 27
Extremely important
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
CMO
With CIO With business units/geographies With CEO With CSO With CCS With CPO With COO With CFO 13 11 19 13 14 14 12 15 17 17 19 19 18 17 19 16 28 33 29 34 34 32 36 35 29 27 26 23 26 25 24 25 12 10 11 13 9 10 9 7
Top 2 41 37 37 36 35 35 33 32
41% of CMOs feel more collaboration is required with each other Amount of collaboration at the right level Much more collaboration is needed
CIO
With business units/geographies With CSO With CFO With CMO With CCS With CEO With COO With CPO 12 14 16 11 15 16 14 16 15 17 16 20 15 18 16 17 27 26 26 28 31 26 32 30 33 28 30 31 27 27 25 25 14 15 12 11 13 12 13 12
Top 2 47 43 42 42 40 39 38 37
42% of CIOs feel more collaboration is required with each other Amount of collaboration at the right level Much more collaboration is needed
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
Clashing on collaboration
With collaboration in short supply, its little wonder that CMOs and CIOs disagree on why marketing and IT should be aligned. In particular there are fundamental disagreements over accessing, using and securing customer data as a competitive advantage. Marketing strategy is increasingly focused on how to leverage Big Data. Turning this data into relevant customer experiences at scale is a far cry from past capabilities focused on creative and brand strategies. These new services require a new kind of rigor and a deep technology backbone to enable them. Not surprisingly, then, marketings #1 driver (out of 15) for aligning and interacting with IT is access to customer insight and intelligence, but that driver ranks #10 for CIOs. A typical IT concernfor privacy and security around customer data and brand protectionranks #4 for CIOs but #11 for CMOs. CIOs rank ITs strategic capability as the #5 reason for alignment, while CMOs see IT as more of a platform provider, which they rank as the #9 driver.
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
Disagreeing on priorities
CMOs and CIOs have an obvious trust issue. Nearly half (45%) of CIOs report that they put marketing IT near or at the top of their priorities (Figure 5), whereas 64% of CMOs think marketing IT is placed at the bottom of the CIOs priority list.
Unsurprisingly, CIOs are not aligned with CMOs on marketing priorities (Figure 6). This makes it difficult to collaborate on common goalsmuch less achieve themwhen the partners dont know each others priorities. Marketing and IT executives agree that gaining better customer insight and reaching the market more efficiently must be at the top of the CMOs agenda as it relates to technology adoption and usage. But IT executives see tying analytics to business outcomes as more important (45% of CIOs vs. 33% of CMOs), while marketers value lead generation more highly (43% of CMOs vs. 35% of CIOs). More CMOs than CIOs also think its more important to improve marketing productivity and performance (44% vs. 36%). Nor are CMOs aligned with CIOs on IT priorities (Figure 7). Large differences exist in appreciating marketing platforms, social media and campaign management as priorities. CIOs typically want to measure results to optimize campaigns. CMOs want to generate leads and sales. Because they are not marching to a common purpose, collaboration cannot occur. Some other examples of misaligned IT priorities: The CIOs #1 priority is advancing platforms to aid in marketing measurement and campaign optimization. That ranks #8 out of 16 priorities for CMOs. The CMOs #1 priority is deploying better marketing execution and operational systems and platforms. That ranks #6 for CIOs. Some 30% of CIOs want to further the use of social media and online listening and contact systems; only 24% of CMOs do. Some 26% of CIOs want to introduce closed-loop campaign measurement and tracking capabilities; only 19% of CMOs do. Though they agree on how technology can improve access to and leveraging of customer data, there is a surprising lack of integration across online and offline channels. A comprehensive view of the customer requires understanding all aspects of their purchasing journey to serve them with the right messages and offers in the right channels at the right time. This integrated view needs strong analytics, insights and feedback loops so that customer data can be continually refined and results improved. This is the holy grail for marketers, yet only one quarter of CMOs and CIOs have completely integrated customer data, while four in 10 are struggling.
CMO+CIO
16
39
32 36
CMO
18
41
29 45
CIO
12
37
37
At the bottom
At the top
12
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
Figure 6: CIOs are not aligned with CMOs on marketing priorities (%)
CMO Priorities
Gaining better customer insight, competitive intelligence and market knowledge Reaching and engaging with the market more efficiently and effectively Improving marketing group productivity, performance and compliance Getting smarter about using social media and digital marketing systems Delivering more qualified leads and opportunities to the sales organization Integrating and extracting more value out of disparate and siloed customer databases Improving the yield and return of marketing campaigns through digital channels Ensuring brand assets are more accessible and better managed globally Adding more engaging and interactive features to company and brand websites Reducing selling cycles and generating higher value deals Knowing more about website utilization and visitor behavior Tying website and digital engagement analytics to business outcomes and transactions 5 7 7 7 8 8 7 7 6 7 16 15 44 44 43 41 40 40 39 37 34 33 54 51
CMO - Top 1
CIO Priorities
Gaining better customer insight, competitive intelligence and market knowledge Reaching and engaging with the market more efficiently and effectively Improving marketing group productivity, performance and compliance Getting smarter about using social media and digital marketing systems Delivering more qualified leads and opportunities to the sales organization Integrating and extracting more value out of disparate and siloed customer databases Improving the yield and return of marketing campaigns through digital channels Ensuring brand assets are more accessible and better managed globally Adding more engaging and interactive features to company and brand websites Reducing selling cycles and generating higher value deals Knowing more about website utilization and visitor behavior Tying website and digital engagement analytics to business outcomes and transactions 6 5 10 5 9 8 36 34 45 7 8 7 9 42 42 40 35 42 14 12 36 43 51 53
CIO - Top 1
13
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
CIO
Advancing platforms to aid in marketing measurement and campaign optimization Reducing technology costs Automating customer interactions and improving customer care and handling Safeguarding and protecting customer data, brand assets and trademarks Improving the links and interactions between Marketing, Sales and channel groups Deploying better marketing execution and operational systems and platforms Delivering more timely and relevant transactional, behavioral and customer profile data Managing Big Data Increasing the use and value of CRM systems by both Marketing and Sales Making key websites more valuable and useful at capturing and converting customers Assuring the integrity and availability of back-end infrastructures and interfaces Furthering the use of social media and online listening and contact systems Piloting new ways to engage the market using mobile, Internet and P-O-S technologies Introducing closed-loop campaign measurement and tracking capabilities Scaling and safeguarding business websites and customer data repositories Advancing email deliverability, list quality and recipient response CIO - Top 1 CIO - Within top 5 2 3 4 20 5 26 25 7 7 7 6 6 9 31 30 30 30 4 9 8 10 32 32 32 3 8 37 34 33 32 38 37
CMO
Advancing platforms to aid in marketing measurement and campaign optimization Reducing technology costs Automating customer interactions and improving customer care and handling Safeguarding and protecting customer data, brand assets and trademarks Improving the links and interactions between Marketing, Sales and channel groups Deploying better marketing execution and operational systems and platforms Delivering more timely and relevant transactional, behavioral and customer profile data Managing Big Data Increasing the use and value of CRM systems by both Marketing and Sales Making key websites more valuable and useful at capturing and converting customers Assuring the integrity and availability of back-end infrastructures and interfaces Furthering the use of social media and online listening and contact systems Piloting new ways to engage the market using mobile, Internet and P-O-S technologies Introducing closed-loop campaign measurement and tracking capabilities Scaling and safeguarding business websites and customer data repositories Advancing email deliverability, list quality and recipient response CMO - Top 1
14
7 9 6 8 7 7 6 9 7 8 5 5 5 2 4 4 21 19 26 24 31
32 37 37 35 36 38 35 32 32 32
33
The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
Internal obstacles faced by CMOs in implementing solutions to further marketing effectiveness Solution complexity and integration difficulties IT keeping Marketing out of the loop Marketing function not a priority for IT department Time and technical resources not available to help Lack of expertise and knowledge in IT organization Insufficient budget and funding for the project Marketing resources taking control and isolating IT Marketing bypassing IT and working directly with the vendor No management mandate to push the project forward IT resistance and opposition to solution sourcing Wrong solution that was not embraced by users 9 21 20 19 38 35 31 28 28 27 47
Internal obstacles faced by CIOs in implementing IT projects to further marketing effectiveness Solution complexity and integration difficulties Marketing bypassing IT and working directly with the vendor Time and technical resources not available to help IT keeping Marketing out of the loop Lack of expertise and knowledge in IT organization Insufficient budget and funding for the project Marketing resources taking control and isolating IT Marketing function not a priority for IT department No management mandate to push the project forward IT resistance and opposition to solution sourcing Wrong solution that was not embraced by users 15 13 20 36 35 33 31 30 29 25 42
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
1
Identify the CMO as the chief experience officer (CXO). CMOs must take responsibility for the consumer experience and drive consumer-centric measures. By understanding the drivers of a connected customer experience across channels, including strategic requirements (such as flexible user interfaces and a unified view of consumer data) and critical enablers (such as technology platforms and operating models), the CXO plays an important role in making the multichannel strategy an integral part of a companys business strategy. CIOs and other members of the C-suite should be jointly responsible for driving business outcomes from effective experiences and for building closer relationships with CMOs in the process.
2
Accept IT as a strategic partner with marketing. When planning new marketing investments, marketers should not view IT as just a delivery platform. Both functions should work together to understand what systemic changes in their operating model need to occur to allow them to take advantage of new technologies rapidly while reducing cost and complexity.
3
Agree on key business levers for marketing and IT integration, such as access to customer data vs. privacy and security. Alignment should be prominent in the agendas and investment plans for each function. Already more than one-third of CMOs and CIOs spend over 30% of their budgets on technology-enabled marketing, so its clearly important to both functions. Moreover, budgets are sizeable. About one in three marketers globally and two in five IT executives say their budgets are more than $500 million. To harness the power of technology and analytics, CIOs and CMOs and their C-suite colleagues need to be laser-focused on crafting the most relevant consumer experiences. They should embrace tools, processes and platforms to unlock consumer intentwhile maintaining privacy and securityas the key to delivering consistent and relevant customer experiences across channels. Together they should manage, measure and optimize marketing investments, resources and campaigns. Sitting within their own silos with independent perspectives will only continue the downward trend in business success.
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
4
Change the skill mix to ensure that the marketing organization becomes more tech savvy and the IT organization becomes more agile and responsive to market demands. CMOs should empower their teams to drive technology decisions and become savvy about digital technology architecture, collaborating with their technology counterparts to serve the demands of the digital age. The vice president of IT for a US telecom company suggested more crosstraining to better understand the needs of both functions. The IT vice president at a US retailer recommended blended skills, not marketing and separate IT but rather a team where each person has a combination of both.
5
Develop trust by doing just thattrusting. The only way to build trust is just to do it. Successful marketing depends on it. Consumers dont have the time or interest for the inefficiencies and mishaps that arise when marketing and IT work at cross purposes. Consumers can take their business elsewhereand they will. CMOs and CIOs must open the floodgates of communication, pollinate cross-disciplinary teams of marketing and IT pros and welcome each other in the C-suite.
This requires a top-down setting of priorities starting with CEO expectations and calibrating with all verticals. For example, including key IT employees in marketing meetings, sales conventions, etc., would give them more context to their work and better appreciation for timelines. There could be some reciprocity here with key marketing employees appropriately involved with IT work.
VP of IT, US retail company
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
A cohesive approach to digital requires 100% platform engagement across all LOBs to deliver a unified experience.
Vice President of IT, US high-tech firm
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The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity
Authors
Brian Whipple Brian Whipple is Managing Director of Accenture Interactive, a business of Accenture that helps companies develop industry-leading digital marketing capabilities, including the development and management of websites and interactive marketing, as well as the optimization of online and offline marketing and merchandising investments. Brian leads all of Accenture Interactives global consulting domains including Digital, Marketing Analytics, Media Management, Marketing Data Management and Marketing Transformation. Prior to Accenture, Brian was Chief Operating Officer of Hill Holliday, an advertising and marketing services firm headquartered in Boston. brian.whipple@accenture.com Baiju Shah Baiju Shah is Managing Director for Strategy & Innovation in Accenture Interactive. In this role, he oversees Accenture Interactives business strategy and manages a portfolio of emerging business services. He is responsible for identifying and catalyzing new waves of growth by creating new business services that address unmet needs in the everevolving marketing landscape. He has worked closely with clients across industries including Verizon, Chrysler and P&G on strategies that take advantage of emerging technology and analytics as a competitive advantage in Digital. Baijus expertise lies in digital marketing, advanced analytics, and technology market adoption. baiju.shah@accenture.com
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About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with approximately 266,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the worlds most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.
Copyright 2013 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
The views and opinions in this article should not be viewed as professional advice with respect to your business. Disclaimer: Accentures CMO Insights survey uses the generic term partner to refer to entities such as digital agencies, specialized agencies, marketing service providers, advertising agencies, management consultants, systems integrators and public relations firms. The use of the term partner in the survey, the survey results, and in this edition of CMO Insights is not intended to, and does not, imply the existence of a legal partnership.