Martec’s Law: the greatest management challenge of the 21st century – Chief Marketing Technologist – marketingIO

The majority of marketers (72%) feel that the marketing technology landscape is changing either “rapidly” or at “light speed” — which is evident from the explosive growth we’ve seen in that landscape graphic over the past 5 years.In contrast, the majority of marketers (67%) say that their company’s own use of marketing technology is evolving only “slightly” or “steadily” — or “not at all.”

This is Martec’s Law: technology is changing faster than organizations.And while you might predict that the marketing technology landscape is bound to settle down soon, keep in mind that we’re now on the cusp on an explosion of new innovations in virtual reality, augmented reality, the Internet of Things, conversational interfaces, robotics, artificial intelligence, and so on. The next three years are likely to see more technological change than the last three. (Sorry.)

Source: chiefmartec.comWith apologizes to Moore’s Law. Curated for you by marketingIO: One Source for All Marketing Technology Challenges.

Source: Martec’s Law: the greatest management challenge of the 21st century – Chief Marketing Technologist – marketingIO


CEOs, CMOs, And Executive Recruiters Make Predictions For Marketing Leaders in 2016 – Forbes

What are the top predictions for marketing leaders heading into 2016? To find out, I turned to some of the leading experts, including CEOs, Presidents/GMs, CMOs, authors and executive recruiters.

Source: CEOs, CMOs, And Executive Recruiters Make Predictions For Marketing Leaders in 2016 – Forbes

Prediction #1: The CMO will Have the Seat Right Next to the CEO

From Kirk Borne, Principal Data Scientist, Booz Allen Hamilton

As digital marketing becomes the central hub for business offerings, technology applications, customer experience management, social media engagement, and financial risk management, the CMO role will grow into one of the most sought-after and trusted advisors in the C-suite and the executive boardroom. The core CMO responsibility is still marketing, but the universe of people, products, and processes that marketing now entails is expanding both physically and virtually in every direction that digital business is moving. Buckle up, it’s going to be a fast and forceful ride!

Prediction #2: CMOs will be Picked for More Non-Profit Executive Leadership (CEO) Roles in 2016

From Matthew Boyle, CMO, AAFCPA
There are many executive directors in nonprofit organizations throughout the country that are past or approaching retirement age. CMOs are ideally suited to fill these positions because of their ability to articulate the mission and generate excitement around the brand, which is critical for long-term success. These CMOs will make ideal candidates to lead nonprofit brands hungry for leaders who are naturally relationship savvy.

Prediction #3: CMOs will Build C-Suite Capability to Leverage Social Media and Drive Total Business Results

From Penny Wilson, CMO, Hootsuite

2016 will be the year CMOs at organizations big and small embrace social media as a way to improve the bottom line through their marketing campaigns. This year, we will see the CMO influence the rest of the C-Suite to implement social media strategies both internally and externally to further business initiatives beyond marketing, to sales, customer service and employee advocacy. Next year we will see the acceleration of social media and the solutions to participate in relevant customer conversations will be the next powerhouse in marketing.

Prediction #4: Marketing Leaders who Excel at Meeting Customers on the Go Will Win

From Juliet Daum, Executive Director, Communication & Marketing, University of Virginia Darden School of Business

Our digitally connected, always-on world is increasingly dominated by mobile technology. We use smartphones, tablets and wearable gadgets to get things done, to seek and share information, and to explore new ideas and places — often while on the go. Google coined our shorts bursts of online activity ‘micro-moments.’ The brands that thrive in 2016 will be those that excel at capturing customers’ attention and trust by delivering the right content, in the right dose, at the right moment, informed by the right data. Customers today seek engagement on their terms, which means marketers must ‘pull’ them in (by offering valuable, searchable content; dynamic social media engagement; and top-notch visuals, including video and infographics), ‘push’ out their messages (through tasteful, personalized communications), and create opportunities to shake hands (though we’re on the go, we are human).

Prediction #5: CMOs Driving Customer-Centric Change Agendas Will Be Better Positioned for CEO Roles

From Caren Fleit, Senior Client Partner and Leader of the Global Marketing Center of Expertise at Korn Ferry

Since customer-centric companies have customers who are more loyal and better brand promoters, as well as earn a greater share of wallet, they typically have higher revenue growth, stock price and market share.  So it would seem obvious that customer centricity would be every company’s focus, but not really―only 7% of companies earned an excellent customer experience rating according to their customers. As companies wake up to this huge disconnect and make improved customer centricity a priority, it often falls to the marketing leader to drive this transformation agenda across the customer journey and the enterprise. In order to help guide their organization on the journey to becoming more customer-centric, marketing leaders must drive organizational alignment and break down functional silos like never before. This implies very different leadership skills and an ability to think about the business much more holistically, beyond the classic marketing roles. CMOs who are successful at driving this change are well positioned to take on additional responsibilities and, ultimately, even a CEO role.

Why the Chief Data Officer is the Hottest Job of the 21st Century | SmartData Collective

Why the Chief Data Officer is the Hottest Job of the 21st Century | SmartData Collective.

ImageIn 2012, Harvard Business Review boldly named the Data Scientist “The Sexiest Job of the 21st Century.”

In 2013, reporters at CNBC gave the same nod to data analysts, saying it was one of the most sought-after positions.

Even U.S. Secretary of Commerce Penny Pritzker came out praising the Chief Data Officer (CDO), saying, “There is so much more potential to tap – and more data to be unleashed – that will strengthen industry and expand economic opportunity for millions of Americans. … Put simply, our Chief Data Officer will hold the key to unlocking more of our government data.”

So it’s no surprise that in 2015, reporters and analysts alike are still wild over the CDO, praising everything from their usefulness to marketplace demand. Citing an Experian survey of 250 Chief Information Officers (CIOs), InformationAge reports that 90% of IT leaders see data transforming the way they do business.

What’s more is that 61% of CIOs wanted to see a CDO hired within a year and put incharge of leading business initiatives that assist CIOs in interpreting overwhelming quantities of information.In fact, 47% of those CIOs said their key barrier to success is the sheer volume of data they must manage. The continuously growing trend has been on Gartner’s radar for some time. In early 2014, the Gartner stated that 25% of large global organizations would have appointed CDOs by 2015.

“Organizations are creating, accessing and using more sources and types of information than ever before,” the announcement said. “This trend, combined with the increasing need to understand how data is being used within a company, is driving the need for Chief Data Officers.”

With data growing at an exponential rate, the CDO has become an imperative leader in large organizations. From mobile to consumer data, businesses’ success now hinges on harnessing data, understanding advanced analytics and making informed business decisions.

Adding a Chief Data Officer to your C-Suite helps define your company’s commitment to better data and better results by assigning ownership to the process of translating information into insights, and insights into action. Without it, you could have access to the best technology and richest data, yet lack the capacity or capabilities to successfully and consistently manage it.

With a leader available to wrap his or her head around the maelstrom of information whizzing through your enterprise, your company will be better equipped to incorporate big data in a meaningful way.

And your CDO can put the initiatives and process in place to ensure that data is used to its fullest competitive advantage, assessing information in all its forms across your enterprise. Further,the right data management technology can help support the CDO in this end-to-end process.

The emergence of the Chief Data Officer is another piece of the big data puzzle shaping how organizations run and grow their business. Now, good luck finding one.

How Chief Digital Officers Transform Businesses 

How Chief Digital Officers Transform Businesses | Vala Afshar.


Richie Etwaru, chief digital officer IMS Health

As a Chief Digital Officer, one of the fastest-growing C-Suite roles in the enterprise, and the author of a new book, Corporate Awesome Sauce: Success Rules for Generation Y, Etwaru offers guidance for executives to be able to adapt and deal with this digital transformation that will impact every business of every size.

Gartner reported that by the end of 2015 one-fourth of all enterprises will have appointed a CDO. According to e-Marketer, the number of chief digital officers will double in 2015 to 2,000 worldwide. In his book, Etwaru explores the necessary leadership traits that are required to drive meaningful change, by staying adaptable, intellectually curious and collaborative. These leadership attributes will ultimately shape a successful business transformation journey that for many companies will be led by the chief digital office.

Etwaru shares his advice on how the CDO can help guide digital business transformation:

1. Find the operating corridor – When it comes to undertaking a digital transformation, Etwaru says you need to find the operating corridor and it starts with the CEO who has the foresight that the business model that you have today is not going to withstand the test of time. These CEO’s will be able to push back on a board or stakeholder and are okay with delivering less than amazing results for a few quarters to ensure their company is around for the next 30-60 years.

“I think when you can find that operating corridor; you’re going to be a CDO that’s going to have fun. If you don’t have that operating corridor you’re going to have a difficult time with the balancing act of achieving quarterly performance from existing revenue streams while putting in place a 20-year strategy,” says Etwaru.

2. Prevent ‘Kodak Moments’ – The point when you realize that your P&L has completely evaporated because someone has replaced your products or services with something that is coming up from an entirely new set of forces in the marketplace is what Etwaru calls a “Kodak Moment”. He is referring to the fact that Kodak could have figured out digital photography if they weren’t so worried about the revenues that would come from the film business – this was their Kodak Moment says Etwaru.

Etwaru feels it is the CDOs responsibility to keep companies from having their Kodak Moments. He says that the CDO needs to act as an evangelist in the P&L to ensure that companies are not mistakenly leaving opportunities on the ground within the new economies that are being created by digital opportunities. The second piece is to act as an advisor to customers that are going through their own transformations by helping them figure out how to avoid their own Kodak Moments.

“The marketplace is changing for our customers and as a result we have to understand how our customers are experiencing that change so that we can build products and services to help them through that change,” says Etwaru.

3. Obsess about next generation P&L – Etwaru says that the core or the primary goal of a Chief Digital Officer is to think about the next generation P&L, where more of the revenues will be coming from new market opportunities as opposed to market opportunities that would have funded value creation historically. Etwaru thinks that the fundamental difference of a Chief Digital Officer, compared to other C-Suite roles, is that 49% of what you do is the work of a general manager. Because you are essentially starting a new company that has more digitally-influenced products and services that run the P&L, a lot of time goes into looking at bringing new products and services to the marketplace and building profitability. Of the remaining 51%, he thinks 26% of that is somewhere around CIO/CTO responsibilities, and then the remaining 25% is just outright innovating.

“You have to out-think, outsmart, out-innovate, outplay and out-maneuver the competition to the new marketplace before they can even figure it out,” said Etwaru.

4. Bring on the coolness factor – Thinking of coolness as an asset that can move through an organization, Etwaru says that part of a CDO’s job is to make companies cool. According to Etwaru, “The bane of my existence is to make sure that we don’t go out of business, so my role as a Chief Digital Officer is to supply these assets – coolness, innovativeness and forward thinking capability – to a set of distributors – product people, marketers, go to market, financial, reengineering of a P&L – to amplify them.”

5. Think horizontally – “Cool is not the only currency,” admits Etwaru. There is of course other currency that distinguishes the CDO role, one of which is thinking horizontally vs. vertical. While other roles, such as CIO and CMO are sort of horizontal, they are still mostly vertical. Etwaru says the CDO role is really horizontal. With zero staff, he takes staff from various verticals to create new opportunities and fill the operation corridor to make transformation happen. Having an ‘a-ha!’ moment during our interview, Etwaru describes the transformation that has to happen: “It’s really like starting a new company to cannibalize the one that you have.”

When looking for candidates for the role of CDO, Etwaru recommends looking for people that have done different things, performed different functions and have worked across different industries. He says, “This is not the type of job that has a vertical trajectory. On any given day I am meeting with product, marketing, communications, operations, compliance and legal. It is a very horizontal looking job.”

6. Eat, breathe, sleep innovation – One of the most important questions within the context of the CDO is ‘can you transform digitally without being innovative?’ In order to find digital revenue streams on top of the analog type streams that you’ve had in the past; Etwaru says you need to be innovating all the time. Can you haphazardly land on some and not necessarily innovate? It’s possible, he says, but innovation is a big part of what he does as well as reflective thinking of the customer’s journey: “I need to be able to study what we sell, why people buy it, what they are buying from our competitors and what would they want to buy tomorrow. Then, based on a set of inventions that are there – mobile, social, Internet of Things, wearables – how can we create the next generation of products for our customers before our competitors.”

In summary, Etwaru’s final recommendation was that all Chief Digital Officers readRay Wang’s new book Disrupting Digital Business: Create an Authentic Experience in the Peer-to-Peer Economy, for help with figuring out how to actually do all the things described in this article.

You can watch the full interview with Richie Etwaru here. Please join me and Michael Krigsman every Friday at 3PM EST as we host CXOTalk – connecting with thought leaders and innovative executives who are pushing the boundaries within their companies and their fields.

54% of CMOs Supplement TV Ads with Digital Video

54% of CMOs Supplement TV Ads with Digital Video.

The CMO Club and Simulmedia have released the report “The Future of TV and Digital Video.” It’s the result of a survey of more than 80 senior marketers. Over half (54 percent) said they use digital video to supplement TV as a holistic strategy, but only 31%align their budgets for TV and digital advertising spend. This separation leads to a disconnect between the value of each medium, as just over half (52%) claim that they have different expectations across the two platforms. In addition, 75% of CMOs say that they measure reach the same way for both TV and digital video and but only one-third see Nielsen as the ongoing foundation of their reach metrics.

“CMOs say they want a holistic strategy, but neither plan, measure or budget for it as one thing,” says David Cooperstein, CMO at Simulmedia and author of the report.

Other findings:
* In the past three years, digital spend has gone from 10%of advertising budgets to 24% and is forecast to rise to 36%in the next three years.

“For over a decade, marketers have attempted to find the most efficient balance between TV and digital video spend,” says Pete Krainik, Founder of The CMO Club. “Our report shows that it’s not TV vs. digital video, it’s about TV and digital video, both today and for the foreseeable future.”

*In the US, digital video advertising expenditures are exploding. Figures from eMarketer show that digital video ad spending is estimated at $6 billion this year, growing around 42% annually. However, the actual dollars spent in TV still greatly trumps digital video. TV advertising dollars in the US were approximately $76 billion in 2014 and still growing by a smidgen more than 3% annually. While both will continue to grow, TV will continue to add more raw dollars of advertising than digital video will, particularly during pivotal political and Olympics years.

“Digital depth cannot match TV’s breadth. Nor should it. Conversely, TV has not historically been as measurable or personalized, so it cannot perform the magic that digital delivers. In that very unique way, TV and digital do not compete, they complement. The winning combination is the joint approach. TV’s reach and digital’s depth make them amazing partners in the marketing mix,” says Cooperstein.

Digital diaspora in the enterprise: Arrival of the CDO and CCO | ZDNet

Digital diaspora in the enterprise: Arrival of the CDO and CCO | ZDNet.

When they write the history of the early days of the networked era, it will be noted that the centralization of technology services in most enterprises largely ended within a few decades of the arrival of the Internet. Networked technology became so profoundly widespread, pervasive, and inexpensive, that the sheer variety and richness of the cloud first swamped and then disintermediated the old methods of providing a few approved apps and devices. What’s more, as all forms of digital became more and more central to the core business models of organizations, the traditional IT department began to lose a growing portion of the strategic discussion around technology.

There have been suggestions that organizations now need C-level officers focused on everything from corporate data and customer experience to digital strategy and social media.

Or at least that’s what they’re likely to write, based on current trends today. For instance, bring-your-own-device (BYOD) programs — and now bring-your-own-apps (BYOA) — are the proverbial canaries in the coal mine for these trends. They have empowered vast new digital armies of workers in the trenches, with a large majority (80%+) of organizations adopting BYOD, and many now exploring BYOA, in just the last two years alone. At the same time, other purviews within our organizations have become core investors in high technology, with CMO budgets reported to eclipse IT itself in 3 years due to this factor. Perhaps most significantly, sober voices are now saying that shadow IT (meaning technology not under the control of the CIO) is expected to reach 90% of all enterprise IT spend by the end of this decade, up from just 10-20% a decade ago.

Clearly big changes are afoot, but where they’ll finally end up is a bit harder to surmise. As indicated above, the root causes are many and varied. However, the overall digitization of 1) market/customer engagement and 2) corporate sources of revenue — along with the digital transition/integration of our companys’ products and services themselves — are the most significant and impactful factors driving change.

As this has played out so far, everyone’s budget is rapidly becoming the “real” IT budget. Thisdemocratization of IT has had significant organizational implications as digital transformation fundamentally remakes our organizations. Or at least the ones that manage to adapt to the current uber-connected, deeply integrated, data-fueled, app-centric, highly mobile, customer-focused, and socially engaged state of the global marketplace.

The new impact of digital strategy on CIO, CMO, CDO, CFO, CCO and BYOD, BYOA, CoIT

Thus, most companies have become increasingly misaligned with today’s fast-moving new market conditions and they generally know it.

One of the ramifications of this is that the C-suite is consciously attempting to evolve in reaction to the growing digitization of business. There have been many discussions of late about what this should entail, including suggestions that organizations now need C-level officers focused on everything from corporate data and customer experience to digital strategy and social media.  Probably the two new roles most frequently discussed at the moment are a Chief Digital Officer (CDO) and a Chief Customer Officer (CCO) , both of whom would impact the CIOs and CMOs of most organizations in a non-trivial partitioning of roles, resources, and responsibilities.

But just as companies generally don’t have a Chief Marketplace Officer or Chief Channel Officer, the strategic concern here really isn’t about the general business landscape or digital plumbing, but about the people in it and the data that concerns them. And this is where companies are moving slower, even if they just maintain their current pace of adoption. That’s because digital innovation in-the-large has only continued to accelerate. The rate of change is increasing and companies response to it isn’t: On a daily basis, several thousand new mobile apps become available, while on a broader horizon the amount of data our businesses must respond to doubles at least every 1-2 years. So too are the methods through which we have to engage with and respond to our customers. The deltas on every front look similar.

The key qualities challenging our management of technology today are therefore fragmentation,velocityvarietyvolume. These are the obstacles our organizations currently face in scale across our delivery channels, products/services, constituents, revenue sources, and management time, thoughthere are certainly viable strategies to address some of them.

RelatedA new reality between the CMO and CIO .

More digital leadership or more digital decentralization?

So what are organizations going to do about the rise of digital and challenes it brings? What then is the best route to adapt the structure of our organizations, from the management team on down, to better define, adapt to, and seize the generational opportunity of realizing a successful digital strategy in a highly social, mobile, etc. world?

There seem to be two broad approaches, one top down and other bottom-up:

  • New C-level digital leadership will be adopted. Strategic digital leadership will move to a new Chief Digital Officer in many organizations. Up to 25% of large enterprises will have a CDO by 2015. Between them, the digital experience for the customer will be split between a new Chief Customer Officer and the CMO.  This will essentially double the number of senior executives focusing on digital transition and channels, though it will still likely not make a dent in the actual adoption of new digital technology across the organization as social media and mobility in particular reinvent what it means to be connected to and engaged with the market. The data boom caused by the increasing domination of these new channels will be the second immediate issue that the CDO and CCO will have to address.
  • Digital adoption will be enabled broadly across the organization. BYOD and BYOA programs are just the first wave, as organizations realize that to keep up with technology change they need to restructure everything from enterprise architecture to business strategy for near-constant evolution. This means flattening and greatly expanding who is empowered to apply new technology to the business, while providing ground rules to make it safe and secure. That this will happen is now largely a forgone conclusion given the growth in shadow IT in just the last couple of years, brought to forefront via empowering self-service sources like app stores, which have become the IT department of choice for a growing number of workers.

The reality is that organizations will do both of these things: Add more C-level executive oversight to digital while they also attempt to broaden their technology adoption base internally on the ground (making everyone part of the IT department, essentially, just like everyone is part of the social media team.) While this might have been somewhat controversial even a year or two ago, it’s now clear that this is the likely route for most companies, even as they have to vigorously compete with many digital startups trying to displace them with a purer and more savvy approach not hindered by their legacy constraints.

The next half-decade will be very interesting indeed as digital strategy steadily moves from the 2nd tier to the top tier of management concern.

IDC Predicts Turmoil For CMOs In 2015: 25% of CMOs will be replaced every year through 2018.

IDC Predicts Turmoil For CMOs In 2015.


Late last year IDC’s CMO Advisory Service released its 10 predictions for the next three years. Kathleen Schaub, vice president of the practice, summarized the findings this way, “Our theme for the coming year is turmoil versus transformation. There’s a lot of activity going on and some people are actually moving forward, but there’s also a lot of spinning and a lot of trial and error.

“We see that marking transformation is at a point where marketing people get that they’ve got to take [new] roads and these roads need new and different kinds of content. They need to start engaging with buyers earlier. They need to use data to personalize. They need technology in order to be able to accomplish that. These fundamental facts about modern marketing everyone get now. [Marketers] pretty much all tried to do this and now realize how difficult it is, how interrelated it is and how much has to change in such a fundamental way in order to be able to make this happen. There are a few places here and there that are starting to put things together, but the scary stories are coming back as often as the winning stories.”

IDC CMO FutureScape 2015 (2)

Here are IDC’s 10 predictions with my editorial comments:

  1. 25% of CMOs will be replaced every year through 2018. The big issue to me that contributes to this turnover is the redefinition of the CMO role. No longer can a CMO simply be the “brand champion” who primarily uses advertising to accomplish her goals. In the era of modern marketing, customer experiences will trump advertising campaigns. CMOs must become champions of great experiences at every step of their customers’ decision journeys. Those who rise to this new standard with thrive. Those who don’t will be in jeopardy of losing their jobs.
  2. By 2017, 25% of marketing organizations will solve critical skill gaps by deploying centers of excellence. Very similar to how CMOs dealt with the explosion of digital and social media over the past decade, scarce talent will be a centralized resource used to shore up business units’ gaps. The emergence of the chief marketing technology officer (CMTO) is one response to centralizing the competencies needed to build the data and technology infrastructure required for modern marketing.
  3. By 2017 15% of B2B companies will use more than 20 data sources to personalize a high-value customer journey. Having personalized experiences at each touch point is the holy grail of modern marketing. Creating a unified view of an individual customer requires connecting that customer’s data from every interaction system, most of which are siloed today. Having a data integration plan should be at the top of every CMO’s 2015 agenda.
  4. By 2015 one in three marketing organizations will deliver compelling content at all stages of the buyer journey. Congratulations to the third who will get there this year. But for the rest of you, what’s holding you back?
  5. In 2015 only one in five companies will retool to reach line of business buyers and outperform those selling exclusively to IT. Ouch! With more and more applications being delivered via a SaaS model, business users can procure the tools they need directly for suppliers more easily. Look at what has happened in marketing with marketing cloud applications, and in sales with products like The 80% of companies slow to adjust to this new reality will be in trouble soon.
  6. By 2017 50% of larger high-tech marketing organizations will create in-house creative services. Retailers did this long ago to produce Sunday circulars more cost-effectively. Manufacturers are trying to create efficient content production teams now. This model can work for production content, but most firms will realize hiring and keeping top creative talent will be a challenge. I expect to see a hybrid model that uses both internal production teams and outside agencies to develop the most effective portfolio of content.
  7. By 2018 20% of B2B sales teams will go “virtual,” resulting in improved pipeline conversion rates. Let’s face it, highly paid sales people don’t want to mess with prospects who aren’t ready to buy. But as customers discover and explore solutions online, they may have questions that they can’t answer independently. I’m seeing more marketing organizations create lead nurturing call centers to fill this gap. When done well, customers have better experiences and sales get a higher percentage of highly qualified buyers.
  8. By 2017 70% of B2B mobile customer apps will fail to achieve ROI because they lack customer value-add. I believe this failure happens for two reasons. First, companies believe they must have a mobile app so they rush something to market that helps them push their agendas instead of taking time to understand what the customer actually needs. Second, most companies don’t need an app. What customers really want is a mobile-optimized website (which is already connected to your back-end systems) to get the information they need whenever and wherever they want it. In 2015 I’d suggest you resist being “app happy” and instead become truly “mobile friendly.”
  9. By 2017 25% of CMOs and CIOs will have a shared roadmap for marketing technology. Why isn’t this 100% in 2015? It should be! No excuses for waiting until 2017.
  10. By 2018 20% of B2B CMOs will drive budget increases by attributing campaign results to revenue performance. Yikes! Only 20%. Sure building measurement systems isn’t easy, but the tools do exist to help you learn what works and doesn’t. For the CMOs who don’t make progress on multi-channel program attribution in 2015, re-read prediction #1. Your job will be in jeopardy.