The digital strategy execution crisis
The bolt-on approach to digital strategy within certain companies reflects their failure in uniting marketing and technology management on a common path.
(via CEOs favour ‘bolt-on’ digital strategies over digital ‘transformation’, says Forrester study | The Drum)

The digital strategy execution crisis

The bolt-on approach to digital strategy within certain companies reflects their failure in uniting marketing and technology management on a common path.

(via CEOs favour ‘bolt-on’ digital strategies over digital ‘transformation’, says Forrester study | The Drum)

Much of the apprehension that businesses are experiencing today is a direct result of a lack of focus on innovation. For many CIOs, too much of the past decade has been spent on industrializing IT to drive down its cost. That industrialization process, however, has stifled innovation. The focus on industrialization has led to a lot of stagnation. A lot of CIOs are now discovering that polishing the ERP system is no longer enough.

Dave Aron, a vice president and fellow with Gartner, says

To address the innovation issue, leading-edge IT organizations are starting to bifurcate their operations, Aron says. Traditional IT executives are continuing to focus on making systems of record more efficient, but a new class of entrepreneurially minded executives is being put in charge of what is collectively being referred to as “systems of engagement.” “One symptom of that is the emergence of the title of chief digital officer within a lot of organizations,” says Aron. It’s often not clear whether the chief digital officer is an IT or marketing person, but what is clear is that they usually trying to drive some form of business innovation.

Digital Fear and Loathing in the CIO Ranks


CEOs rank technology factors above all other external forces in shaping their organization’s future. CMOs and CIOs rank market factors first. Who’s right? Well, customer-obsession says that you are all right. Customers come first. So CMOs and CIOs are right. And only business technology — which we define as “technology, systems, and processes to win, serve, and retain customers” can help you acknowledge your customers’ power and surpass their expectations. So CEOs are right, too. Maybe more right ;-).

IBM’s Global CxO Study Shows That You Irrefutably Live In The Age Of The Customer
(via  Gartner VP and Senior Analyst Ted Schadler- Forbes)

CEOs rank technology factors above all other external forces in shaping their organization’s future. CMOs and CIOs rank market factors first. Who’s right? Well, customer-obsession says that you are all right. Customers come first. So CMOs and CIOs are right. And only business technology — which we define as “technology, systems, and processes to win, serve, and retain customers” can help you acknowledge your customers’ power and surpass their expectations. So CEOs are right, too. Maybe more right ;-).

IBM’s Global CxO Study Shows That You Irrefutably Live In The Age Of The Customer

(via  Gartner VP and Senior Analyst Ted Schadler- Forbes)

Customers expect more from company leaders.
It is time for leaders in organizations to extend their trust to business units beyond their own. When relationships between top marketers and IT leaders are dysfunctional, the consequences are severe. Here’s what the two leaders should do:

Identify the CMO as the “Chief Experience Officer.” And since customer experience  involves every touch point, the CIO is heavily involved too.
Signal that IT is the strategic partner to marketing. That means more than platform selection and execution.
Agree to work from the same playbook. Agree on access to customer data and speed to market along with security, privacy, and standardization.
Change the skill mixes. Upgrade skills and cross-train.
(via The Dangerous Tension Between CMOs and CIOs - Julia Kirby - Harvard Business Review)

Customers expect more from company leaders.

It is time for leaders in organizations to extend their trust to business units beyond their own. When relationships between top marketers and IT leaders are dysfunctional, the consequences are severe. Here’s what the two leaders should do:

Identify the CMO as the “Chief Experience Officer.” And since customer experience  involves every touch point, the CIO is heavily involved too.

Signal that IT is the strategic partner to marketing. That means more than platform selection and execution.

Agree to work from the same playbook. Agree on access to customer data and speed to market along with security, privacy, and standardization.

Change the skill mixes. Upgrade skills and cross-train.

(via The Dangerous Tension Between CMOs and CIOs - Julia Kirby - Harvard Business Review)

Cloud services are creating a distinct sense of overlap and a blur of corporate 
responsibility as CMOs evaluate, acquire, and field extensive new IT 
capabilities for digital advertising, customer experience management, 
CRM, and other related functions across a growing set of touchpoints, 
which now include at a bare minimum traditional media, online media, 
social media, and mobile devices.  A decade ago, much of the service 
delivery for these functions would be delegated under the CIO, who would
 support the marketing department and other groups in their IT endeavors
 as needed (although largely on IT’s schedule.)
        (via A new reality between the CMO and CIO | ZDNet)
Cloud services are creating a distinct sense of overlap and a blur of corporate responsibility as CMOs evaluate, acquire, and field extensive new IT capabilities for digital advertising, customer experience management, CRM, and other related functions across a growing set of touchpoints, which now include at a bare minimum traditional media, online media, social media, and mobile devices.  A decade ago, much of the service delivery for these functions would be delegated under the CIO, who would support the marketing department and other groups in their IT endeavors as needed (although largely on IT’s schedule.)

(via A new reality between the CMO and CIO | ZDNet)

A system of engagement

Excerpts from Yuchun Lee blog:

According to a recent IBM study, marketing organizations that engage customers effectively and make better technology investments havea three-year revenue compound annual growth rate (CAGR) that is more than 40 percent higher than that of other companies.

Behind the numbers is what we like to call a “system of engagement” — an integrated and innovative set of technologies and processes that are born out of marketing and IT collaboration. By working closely with the CIO’s team, the CMO can build this system that allows marketers to communicate with a wide array of customers in a personal way, across all channels.

A system of engagement goes beyond tying in new channels, such as mobile and social. It involves pushing the boundaries of each by extending efforts beyond rudimentary tactics. 

For example, when it comes to mobile, the marketing leaders are working with IT to move beyond traditional web-based efforts, with 36 percent using location-specific mobile messaging campaigns and ads. When it comes to the rest of their peers, the percentage drops to 20 percent. For social, 48 percent of the top performers are using or plan to use, social/local group buying in the next 12 months. As for the rest of the group, that number drops significantly to 31 percent.

For many, embarking on a system of engagement means internal discussions about budgets and how to get senior management to green light the plan. One approach to making it happen is to highlight measurement. Leading marketers place greater emphasis on measurement, tracking results and then linking them to individual efforts.

Via Building a Smarter Planet