Insights from the Global Chief Marketing Officer Study ~ A North America Perspective
Nanci Knight IBM Academic Initiative Relationship Manager | West Region email:
[email protected]
The 2011 Global CMO Study is part of our C-suite Study series encompassing interviews with more than 15,000 C-suite executives
’04-’05
’06-’07
’08-’09
’10-’11
CEO
CIO
CFO
CHRO
CSCO
CMO
2
© 2012 IBM Corporation
In this largest sample of face-to-face CMO interviews, we spoke with more than 1,700 CMOs worldwide, 300 in North America The study represents organizations in 64 countries and 19 industries 3% Public
Sectors 21% Industrial
Regions 16% Communications
17% North America 44% Growth markets
24% Financial Services
10% BU CMOs
36% Distribution
4% Japan
North America
Rest of the World 8% BU CMOs
14% Country CMOs 11% Regional CMOs
35% Europe
33% Global CMOs 46% Country CMOs 65% Global CMOs
Growth Markets include Latin America, Central and Eastern Europe, Middle East and Africa and Asia Pacific (excluding Japan); n=1734 North America sample size n = 300, Rest of World n = 1333 3
14% Regional CMOs
© 2012 IBM Corporation
North America CMOs: swimming, treading water or drowning?
In this digital era...
CMOs have to...
Globalization has brought the world to everyone’s backyard
Do more than ever, inside and outside the organization
Everyone is a broadcaster, publisher and a critic: there is nowhere to hide
Be more accountable for return on investment (ROI)
Transparency is the new price of entry
Use tools and technologies that their children understand better than they do
And... more data, more sources, more devices, less clarity
And... CMOs have just two to three years to make their mark
“The role went from marketing, to marketing and client experience, to marketing and client experience and channel. And now I am also doing technology prioritization and all of our service model structure. It really has turned into a revenue officer role, versus a marketing officer role.” Banking EVP & CMO USA 4
© 2012 IBM Corporation
“None of the changes in Marketing today are evolutionary, they are all revolutionary and transformational.” Insurance SVP of Marketing, USA
“Really good marketing has always been about creating a brand promise and delivering on it. It
“I'd like to get less data and more information.”
is just that with today's tools and technology, more people are watching.” Industrial Products SVP Marketing, USA
Telco VP, Canada
“I think the biggest marketing challenge will be the analysis and diffusion of data. I firmly believe CMOs and marketers need to become ‘analytic athletes’ to do their jobs.” Maureen Schumacher, Southeast Regional Director, Google
“Traditionally, corporate culture and character have been managed by HR, but it can't remain there in a digital environment. The world of separate internal and external messages is gone, and internal actions, memos and decisions can impact your brand just as much as an advertising campaign.” Financial Markets EVP, Head of Global Marketing, USA
5
© 2012 IBM Corporation
The key areas of under-preparedness are the same areas CMOs identify as most critical to enabling the marketing agenda Marketing Priority Matrix
1
Data explosion
2
Social media
3
Growth of channel and device choices
4
Shifting consumer demographics
5
Financial constraints
6
Decreasing brand loyalty
7
Growth market opportunities
8
ROI accountability
9
Customer collaboration and influence
10
Privacy considerations
11
Global outsourcing
Factors impacting marketing
12
Regulatory considerations
Percent of CMOs selecting as “Top five factors”
13
Corporate transparency
Under-preparedness Percent of CMOs reporting under preparedness
1
70
2
3 4
60
5 6 10
7
11
50
9
8
12 13
40 0
20
40
60
Mean
Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7) 6 © 2012 IBM Corporation
Being a CMO in North America is 1.6 times more complex than the global average Expected level of complexity and preparedness to handle Percent of North America CMOs responding
North America
Global
79%
84%
Expect high/very high level of complexity over 5 years
Expect high/very high level of complexity over 5 years
35% Feel prepared for expected complexity
49% complexity gap
31% complexity gap
48% Feel prepared for expected complexity
1.6x more complex
Key Drivers
Simultaneous investment in traditional and emerging capabilities Marketing and technology alignment more challenging Managing the skills mix
Source: Q4 How much complexity will your organization have to master over the next 3 to 5 years compared to today? n=1709; Q6 How prepared do you feel for the expected complexity ahead? n=1712 7 © 2012 IBM Corporation
North America CMOs are simultaneously investing in emerging and foundational capabilities; well beyond the global averages North America
Plans to increase the use of technology Percent of CMOs selecting technologies
Emerging Capabilities 9%
Foundational Capabilities 3%
87%
Global
11%
2% 87%
87% 80%
82%
75%
82% 75%
73% 68%
66%
72%
73% 67%
81%
77% 70%
63%
61%
56%
Predictive Analytics
Mobile Apps
Social Media
Collaboration Tools
Tablet Apps
Scorecards Dashboards
Content Mgmt.
Single view of customer
Customer Analytics
Campaign Mgmt.
Source: Q22 Do you plan to decrease or increase the use of the following technologies over the next 3 to 5 years? n=259 to 264 8
© 2012 IBM Corporation
Within North America, CMO alignment with their technology organizations varies with the geographic scope of their role After cost, the top barriers preventing technology adoption North America
Lack of marketing and IT alignment
Lack of IT integration with rest of company
10% BU CMOs
1.6x
14% Country CMOs
2.1x
11% Regional CMOs 65% Global CMOs
“The biggest issue is prioritization and funding. IT funds most technology projects but if the technology is only marketing specific then it may need to be funded by Marketing.” Source: Q23 What are the top 5 barriers to using technology? n=268 9
Insurance Marketing VP, Canada © 2012 IBM Corporation
North America CMOs have a strong desire to drive the required changes in order to activate their corporate character North America Top 5 initiatives driven by transparency
Global
Percent of CMOs selecting initiatives
50% Enhance engagement with customers and citizens
80%
Manage brand reputation within and beyond the company
78%
75% 74%
Expand data collection, analysis and insights capabilities
72%
67%
Strengthen collaboration across the enterprise
72%
64%
Orchestrate a single view of the brand
64%
61%
Pink – out performing organizations, Blue - underperformers. 10
Source: Q9 To what extent does transparency create a need for you to: n=293 to 297
© 2012 IBM Corporation
Globally, to deal with the broad level of under-preparedness, CMOs signaled three key domains of improvement
Deliver value to empowered customers
Capture value, measure results
Foster lasting connections
“Marketing must become more adept at managing the magnitude of change now taking place. Otherwise, it will be like going into battle with a Swiss Army knife.” Financial Services Vice President, Marketing, USA 11
© 2012 IBM Corporation
North America CMOs have a unique opportunity to lead by addressing under-preparedness and closing the complexity gap
Addressing Under-preparedness
Closing the Complexity Gap
12
• Requires a balance of external customer feedback and experience based insights to drive decisions
• Utilizes customer analytics is a way to get better prepared • Engages with customers as a critical driver to better articulate corporate character
• Rethinking the skill mix as the primary driver to close gap supported next by investment in technology and integrating insights • Investing simultaneously in both emerging tools and technologies and traditional campaign management, scorecards and dashboards
© 2012 IBM Corporation
Rethinking the skills mix, not technology alone, will help North America CMOs address the challenges 77% of North American CMOs put the “Data Explosion” at the top in terms of under-preparedness. Here is how they plan to be better prepared as compared to Global CMOs: Global CMOs:
North America Regional CMOs:
Invest in technology
73%
Integrate insights
69%
Rethink skill mix Invest in technology
Understand analytics
65%
Integrate insights
Rethink skill mix
64%
Understand analytics
Collaborate with peers
52%
Validate ROI Address privacy
49% 28%
Collaborate with peers Validate ROI Address privacy
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673 13 © 2012 IBM Corporation
IBM Academic Initiative Our mission: Partner with faculty to develop the skills needed to build a more competitive IT workforce
IBM agenda: align university partnerships to build and sustain high growth markets.
University goals: build differentiating competencies and prepare students for the jobs of tomorrow.
IBM, its customers and its partners need Smarter Planet skills – and that means careers for students in high growth markets.
What we offer: • Extensive expertise, assets, and community resources to develop world-class curricula • Access to IBM software & courseware at no charge • Repeatable skill building programs, from ecosystem events to student competitions 14
© 2012 IBM Corporation
BAO Teaching Portal for Faculty
15
© 2012 IBM Corporation
Example Analytics Degree Programs with University Partners
16
© 2012 IBM Corporation
How To Engage
Connect with your regional IBM Academic Initiative Relationship Manager Explore how AI & Smarter Planet nocharge faculty resources can be leveraged to enhance current - or jumpstart new - curriculum at your university Join the IBM Academic Initiative at: www.ibm.com/academicinitiative Browse the IBM Smarter Planet portal at: www.ibm.com/smarterplanet
17
© 2012 IBM Corporation
IBM Academic Initiative ~ Relationship Managers North Central 2 Mary Lyons 312-529-3841
[email protected]
North Central 1 Valinda Kennedy
Central Jerry Haan
630-747-8807
[email protected]
WA
North East 2 Rick McKean 914-766-1741
[email protected]
317-249-9544
[email protected]
ME
MT
VT
ND
NH
NY
MA
OR MN
West Nanci Knight
ID
WI
CT
SD
MI
WY
PA
707-529-9603
[email protected] m
IA
IL
OH
NE
MD
IN WV
NV UT
NJ
VA
DC
North East 1 Bob Bry 617-693-3939 robert_bry@u s.ibm.com
MO
CO
KS
KY NC
CA TN OK AZ
SC AR
NM MS
AL
GA
Mid-Atlantic Penelope Gardner
TX
720- 396-4902
[email protected]
LA
South Central/East Dennis Bly
FL
512-286-9181
[email protected]
18
© 2012 IBM Corporation
Through these in-depth discussions, we are better able to understand the evolving role and function of the CMO in the C-suite Scope
Approach
Sample consists of private sector CMOs (97%) and public sector leaders (3%) Representative sample across 64 nations and 19 industries Private sector organizations with revenue more than US$500 million in mature markets and more than US$250 million in growth markets; public sector organizations with more than 1,000 employees
Face-to-face one hour interviews with 1,734 CMOs Facilitated using structured questionnaire Wide coverage: from highly profiled organizations (48 of the 100 top Interbrand organizations) to lower profile local organizations
Analysis Statistical analysis of 35 questions and the related 236 discrete factors In-depth analysis based on self-reported performance characteristics for differences between “outperformers” and “underperformers” Comprehensive review and analysis of more than 10,000 interview quotes
Marketing in the Digital Era Deliver value to empowered customers Foster lasting connections Capture value, measure results
Note: 19
Outperformers and underperformers were identified by answers to questions about their organization’s competitive position. Those who selected “significantly outperform industry peers” were identified as outperformers; those who selected “somewhat or significantly underperform industry peers” were grouped as underperformers. © 2012 IBM Corporation
