Making Leaders Successful Every Day
Break Down The Silos: How To Organize For The Digital Future TRACY STOKES, Principal Analyst July 11, 2013
“To reflect the evolution of brand communications to encompass marketing
across all media platforms”
Digital is changing everything
© 2013 Forrester Research, Inc. Reproduction Prohibited 5
Agenda
›The marketing environment has radically changed
›Marketers are not prepared for digital disruption
›Marketers need an organization reboot
© 2013 Forrester Research, Inc. Reproduction Prohibited 6
Agenda
›The marketing environment has radically changed
›Marketers are not prepared for digital disruption
›Marketers need an organization reboot
© 2013 Forrester Research, Inc. Reproduction Prohibited 7
Four significant changes
• Customer Change 1. • Relationship Change 2. • Media Change 3. • Brand Change 4.
© 2013 Forrester Research, Inc. Reproduction Prohibited 8
Source: North American Technographics® Online Benchmark Survey (Part 1), Q2 2012 (US, Canada) US Online adults
1. Customer change: Today’s consumers are perpetually connected
2 in 3 US adults own 2+ internet
connected devices
… they connect on multiple devices
Forrester forecasts 167 million
consumer owned tablets by 2017
56% of US adults own a smartphone
US online adults spend an
average of 20 hours/week
online
Source: North American Technographics® Online Benchmark Survey (Part 1), Q3 2012 (US, Canada) ; Forrester Research Smartphone Adoption Forecast, 2012 To 2017 (US); Forrester Research Tablet And eReader Forecast, 2012 To 2017 (US); Source: Forrester Research Connected Devices Forecast, 2012 To 2017 (US)
38% of US households have a connectable TV
… their online and offline worlds are merging
Source: North American Technographics Online Benchmark Survey (Part 1), Q3 2012 (US, Canada)
42%
42%
38%
55%
93%
87%
74%
66%
Watch TV
Listen to the radio
Read Magazines
Read NewspapersOnlineOffline
Base: 57,499 US Online Adults
Media Consumed At Least Weekly
Three-quarters of US online adults consume some sort of media online weekly
They chose where, when and how they want to engage with you
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2. Relationship change: from funnel to life cycle
Source: January 2013 “Embed The Customer Life Cycle Across Marketing”
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3. Media change: From channel to eco system
Depth
Engagement
Reach
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133 billion
1 billion
>39 million 1 billion
New “media” are mass media
517 million
48.7 million
200 million
4. Brand Change: Consumers expect more of brands
© 2012 Forrester Research, Inc. Reproduction Prohibited
Brand Pride Societal Contributions
Special Experiences
Indispensable Value
Consumers’ Higher
Standards
CREDIBILITY LEADERSHIP UNIQUENESS RELEVANCE
REFERRAL PREFERENCE PRICING POWER
Four Pillars Of Brand Equity
Desired Brand Building
Outcomes
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From image to experience
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Agenda
›The marketing environment has radically changed
›Marketers are not prepared for digital disruption
›Marketers need an organization reboot
© 2013 Forrester Research, Inc. Reproduction Prohibited 18
Most can see it coming, but few are prepared for digital disruption
86%
67%
46%
36%
There is significant opportunity for digitaltools and experiences to change the
industry we serve
People in our company are excited aboutthe changes that digital will bring to our
company
People in our company have the skillsneeded to adapt to the changes that digital
will bring to our company
Our company has policies and businesspractices that will enable us to adapt to the
changes that digital will bring to ourcompany
Percent that agree with each statement (top-2 box) Source: Forrester Research, Digital Disruption Readiness Assessment Preview, Nov 2011
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For years, digital has been additive, not integrated into the organization
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Digital marketing is disconnected from strategy
Shared Service
Center of Excellence
Distributed
Other Digital Marketing Organizational Structures
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Skills don’t match priorities and responsibilities
Responsibilities Priorities Skill level Web analytics Search optimization Web site development Social media Web site development Web site maintenance Email marketing Web analytics Email marketing Search optimization Conversion tracking Web analytics Web site development Email marketing Paid search Web site maintenance Paid search Search optimization Paid search Social media Social media Conversion tracking Web site maintenance Conversion tracking
Miss opportunities to innovate
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Agenda
›The marketing environment has radically changed
›Marketers are not prepared for digital disruption
›Marketers need an organization reboot
Marketing leaders must ADAPT their organization to keep pace with the perpetually connected consumer
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A flexible structure and culture of working with marketing staff, partners, and systems that enables brands to respond quickly to their environment to
align customer and brand goals.
Create a federation not an org model Adaptive Marketing Confederation
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The confederation includes three main elements
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Constitute marketing operations as a strategic – not just executional - partner
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Technology skills are critical to success
0 1 2 3 4 5 6 7 8 9 10
Project management
Product management
Usability
Market research
Customer service
Speak/write
Operations
Collaboration
IT/Infrastructure
Analytics
Please rank the critical skill sets needed for a team like yours to be successful
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In fact, digital staff today are more ops than marketing
30
Source: Q1, 2012 Digital Marketing And eBusiness Panel Survey
“Please mark each function that your interactive marketing team is responsible for.” (Multiple responses accepted).
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Recognize that technology is essential to marketing strategy
› Dedicate a team to marketing operations › Adopt an agile approach to marketing innovation › Use the team to support multiple marketing roles › Empower engineers to be business innovators
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Create a collaborative marketing services provider roster
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Focus on your core marketing challenge, not channels
transforming a business
building experiential
brands generating demand
engaging audiences
Adopt new agency orchestration models
Acculturate agency partners into the business
© 2013 Forrester Research, Inc. Reproduction Prohibited 36
Create a digital culture
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Develop digital business leaders
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Hire for attitude, not just for tactical experience
• Bring people together to nimbly adapt to change Collaborative
• Develop new concepts and strategies Creative
• Explore what is new and different Curious
• Care passionately about understanding customers
Customer-Centric
Publicize your digital efforts-loudly
© 2013 Forrester Research, Inc. Reproduction Prohibited 40
Recommendations
› Tackle organization as a process, not an end state
› Lead with a digital mindset to foster innovation
› Prioritize ownership over organization
Questions
Thank you Tracy Stokes +1 617.613.6193 [email protected] Twitter: @tstokes_Forr
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