© 2013 IBM Corporation

CMO and CIO: Friends with digital benefits

iStrategy – May 15, 2013

Surjit ChanaCMO, IBM Europe @SurjitChana

© 2013 IBM Corporation2

In February of 2012, The New York Times published an article that gave us a glimpse of the future practice of marketing.

© 2013 IBM Corporation3

© 2013 IBM Corporation4

We have spoken to thousands of CIOs and CMOs and found that they have a number of common goals and challenges

IBM Institute for Business Value

Extend IT inside and outside the organization while minimizing risks

Ensure infrastructure works flawlessly while adopting new tools & technologies

Understand the business deeply to match the right tools and technologies to the needs of the business

Do more than ever, inside and outside the organization

Be more accountable for return on investment

Use tools and technologies their children understand better than them

3,200+ CIOs1,700+ CMOs

© 2013 IBM Corporation5

CIOs are already focusing on solutions required to manage the explosion of data and capture value – a top concern for CMOs

CIO focus over the next 5 years

Insight and intelligence

People skills

Internal collaboration & communications

Risk management

Revenue model changes

79%79%

66%66%

64%64%

50%50%

35%35%

CMO focus over the next 5 years

Rethink skill mix

64%Collaborate with peers

Validate ROI

Address privacy

Integrate insights

51%

49%

28%

69%

64%

"Importantly, the role of CIO is not being looked on as 'Chief IT Mechanic.' It is recognized as a means to extract value from technology and gain insight from complex systems.”

Mark Hale, Director of IS for Food Retail, The Co-operative Group

“The biggest challenge isn’t the amount of data that’s available, but interpreting the data and making business decisions based on the insights it provides.”

Telecommunications CMO, Poland

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Defining a new profession, and a shared agenda for the CMO and the CIO

Marketers have always been responsible

for knowing the customer

Marketers have always been responsible

for defining what to market, and how to

market it

Marketers have always protected

the brand promise

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Goal: Gain Customer insight

What: CMO and CIO developed a Social Media listening solution

Digital benefits: Get customer feedbacks from public forum, as these comments complement the ones shared with Sales Reps

ING Netherlands delivers a relevant dialog with its customers offering products and services that respond to customers’ life events

Embed ING Netherlands success story video – 2:11(Intelligence Director talking about building a system of engagement with clients to detect life events and cater products / services accordingly)

https://www.youtube.com/watch?v=p7tesEdpWNo

Hans HagenaarsCMO of ING

Ron van KemenadeCIO of ING

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ING Netherlands delivers a relevant dialog with its customers offering products and services that respond to customers’ life events

Embed ING Netherlands success story video – 2:11(Intelligence Director talking about building a system of engagement with clients to detect life events and cater products / services accordingly)

https://www.youtube.com/watch?v=p7tesEdpWNo

Hans HagenaarsCMO of ING

Ron van KemenadeCIO of ING

Goal: Grow revenue and customer loyalty

What: CMO and CIO rebuilt the marketing technology infrastructure and processes to become more automated, coordinated and personalized

Digital benefits: • 3x higher response rate• Direct Marketing costs reduced by 35%• Campaign cycle times reduced from 21 weeks to four weeks

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Goal: Shift to Customer centricity

What: CMO and CIO agreed on the roadmap for the future and which infrastructure will be needed

Digital benefits: Become a community leveraging Social platforms

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Embed PETCO success story video – 1:22(Ecommerce & Web Analytics Director talking about customizing marketing and listening to online customer sentiment to monitor brand and cater messaging accordingly – TRIMMED REFERENCES TO COREMETRICS)

https://ibm.biz/BdxJqe

Goal: Strengthen Trust & Transparency

What: CMO and CIO defined a solution based on Mobile and Social to track comments (positive and negative)

Digital benefits: Able to respond to customers with the right answer

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Future Challenges and Opportunities

Systems will understand complex natural languages and perform deep sentiment analysis

Moving from analyzing the PAST, to near REAL-TIME, to predicting the FUTURE

Systems and people will learn from each other

Customers will know as much about you (vs. your competition) as you know about them

Conclusion: Competitive advantage will come from marketing seeing more clearly – and further into – the FUTURE

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Let’s continue the conversation

@SurjitChana