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THE EVOLVING
RELATIONSHIP
BETWEEN THE CIO AND
CMO
Matthieu Vermeulen – February 2015
Let’s start with this…
From their press release
At Lenovo, we make every effort to provide a great user
experience for our customers. We know that millions of
people rely on our devices every day, and it is our
responsibility to deliver quality, reliability, innovation and
security to each and every customer.
In our effort to enhance our user experience, we pre-
installed a piece of third-party software, Superfish
(based in Palo Alto, CA), on some of our consumer
notebooks. The goal was to improve the shopping
experience using their visual discovery techniques.
CMO
From their press release, part 2
We stopped the preloads beginning in January.
We shut down the server connections that
enable the software (also in January), and we
are providing online resources to help users
remove this software.
Finally, we are working directly with Superfish and
with other industry partners to ensure we address
any possible security issues now and in the future.
CIO
While strategy is the
differentiator for creating
competitive advantage,
operational efficiency is a
prerequisite
Michael Porter
Many marketers focus on marketing strategy
- branding, positioning, segmentation, tone of voice -
neglecting operational marketing efficiency
Marketing
efficiency =
up-to-date
IT environment
& tools
How businesses compete in 2016
The world according to Gartner
 Customer experience will be the battleground
marketers are fighting over
 Use customer data will determine marketing success
 Digital commerce will be inextricably linked with
marketing
 Marketing will set the strategy for not just marketing
technology, but for all customer-facing technology
 Marketing innovation will come out of the closet
Source: http://blogs.gartner.com/laura-mclellan/5-predictions-marketing-2016/
Marketing is changing because…
Now
Good companies
have the best customers
and deliver the most memorable experience.
Then
Good companies
have the best products
and show the most memorable advertising.
Now
Good marketers
are smart listeners.
Then
Good marketers
are smooth talkers.
© www.MarketingGovernance.com 200
Now
Marketers are process and data driven.
They create relevant dialogues
and guide customers to relevant content.
Then
Marketers are project driven.
They create campaigns
and target the potential audience.
© www.MarketingGovernance.com 2004-2015
Now
New technology
facilitates the sharing of information.
Then
New technology
facilitates the management of products.
© www.MarketingGovernance.com 2004-2015
Trends in marketing in topics
 Digitalization
 Automation
 1:1 targeting
 Mobile
 Data, data, data
 Capture revenue opportunity >
accountability
Now
IT solutions are leased as a service.
Then
IT infrastructure is owned by the company.
Then
Systems had a life time of a few years.
Now
Mash-ups, APIs, data-integration, mobile.
Now
Social media, BYOD, NSA, anonymous.
Then
Communication was controlled and secure.
Now
Big data in the cloud.
Then
Database.
Digital IQ by PwC
 According to PwC’s recent Digital IQ Survey of
almost 1,500 IT and business leaders, 70% of top-
performing organizations have strong relationships
between the CIO and the CMO.
 Yet overall, the CIO’s relationship with the CMO
was rated among the lowest in the entire C-Suite,
with only 51% of all respondents reporting it as
strong.
Organizational business
challenges
Marketing vs. Selling
Security vs. Agility
Data vs. Privacy
Cost Center vs. Profit Center
Change Management vs. System Customization
Service Quality vs. Tech Quality
Customer Experience vs. Systems Complexity
Social Media vs. Confidentiality
Disruptive Changes (Uber, Kickstarter, Airbnb, Apple Pay, etc.)
CMO
• Products and
Advertising
• Talkers
• Campaigns
• Products &
Features
CIO
• Systems and
hardware
• Guardians
• Developers
• Quality
assurance
Demand
Support
Then
CMO
• Experience
• Listeners
• Dialogue
• Sharing stories
• CIO
• Cloud &
Social
• Facilitators
• Coordination
• Integrators
The overlap between the CIO and CMO remit can best
be understood as the area where Customer Experience
is defined
 This implies a shared accountability requiring new
KPIs
 This means changes in reporting and cooperation
needs
 Most of this is driven and facilitated by digital
technologies
CX
Now
Addressing the organizational
challenges
 Define decision governance between CMO and CIO
 Embrace transparency
 Embrace data, use it to define actions
 Hire the right people, build the right teams
 Hire new ‘hybrid’ talent
 Pilot before you implement
 Plan, pivot, continue…
 Measure and report
dashboards is key to manage and
monitor this change
Where to start
It all has to start with a top-level agreement
between the CMO and the CIO to work together
and have a common view of the assets that are
needed for the company to succeed.
Branding & Marketing Solutions Expert - Innovation Strategist - Top 100 Social Seller in
Singapore - Speaker & Blogger
matthieu.vermeulen@gmail.com | @mattvermeulen |
sg.linkedin.com/in/matthieuvermeulen/
Matthieu Vermeulen
Sources
 http://www.mckinsey.com/insights/business_techn
ology/getting_the_cmo_and_cio_to_work_as_part
ners
 http://blogs.gartner.com/laura-mclellan/5-
predictions-marketing-2016/
 Interview with the Lenovo CTO:
http://bits.blogs.nytimes.com/2015/02/24/lenovos-
chief-technology-officer-discusses-the-superfish-
adware-fiasco/?_r=0

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Why a good Relationship between the CMO and CIO is so important

  • 1. THE EVOLVING RELATIONSHIP BETWEEN THE CIO AND CMO Matthieu Vermeulen – February 2015
  • 3. From their press release At Lenovo, we make every effort to provide a great user experience for our customers. We know that millions of people rely on our devices every day, and it is our responsibility to deliver quality, reliability, innovation and security to each and every customer. In our effort to enhance our user experience, we pre- installed a piece of third-party software, Superfish (based in Palo Alto, CA), on some of our consumer notebooks. The goal was to improve the shopping experience using their visual discovery techniques. CMO
  • 4. From their press release, part 2 We stopped the preloads beginning in January. We shut down the server connections that enable the software (also in January), and we are providing online resources to help users remove this software. Finally, we are working directly with Superfish and with other industry partners to ensure we address any possible security issues now and in the future. CIO
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. While strategy is the differentiator for creating competitive advantage, operational efficiency is a prerequisite Michael Porter Many marketers focus on marketing strategy - branding, positioning, segmentation, tone of voice - neglecting operational marketing efficiency Marketing efficiency = up-to-date IT environment & tools
  • 10. How businesses compete in 2016 The world according to Gartner  Customer experience will be the battleground marketers are fighting over  Use customer data will determine marketing success  Digital commerce will be inextricably linked with marketing  Marketing will set the strategy for not just marketing technology, but for all customer-facing technology  Marketing innovation will come out of the closet Source: http://blogs.gartner.com/laura-mclellan/5-predictions-marketing-2016/
  • 11. Marketing is changing because…
  • 12. Now Good companies have the best customers and deliver the most memorable experience. Then Good companies have the best products and show the most memorable advertising.
  • 13. Now Good marketers are smart listeners. Then Good marketers are smooth talkers. © www.MarketingGovernance.com 200
  • 14. Now Marketers are process and data driven. They create relevant dialogues and guide customers to relevant content. Then Marketers are project driven. They create campaigns and target the potential audience. © www.MarketingGovernance.com 2004-2015
  • 15. Now New technology facilitates the sharing of information. Then New technology facilitates the management of products. © www.MarketingGovernance.com 2004-2015
  • 16. Trends in marketing in topics  Digitalization  Automation  1:1 targeting  Mobile  Data, data, data  Capture revenue opportunity > accountability
  • 17. Now IT solutions are leased as a service. Then IT infrastructure is owned by the company.
  • 18. Then Systems had a life time of a few years. Now Mash-ups, APIs, data-integration, mobile.
  • 19. Now Social media, BYOD, NSA, anonymous. Then Communication was controlled and secure.
  • 20. Now Big data in the cloud. Then Database.
  • 21. Digital IQ by PwC  According to PwC’s recent Digital IQ Survey of almost 1,500 IT and business leaders, 70% of top- performing organizations have strong relationships between the CIO and the CMO.  Yet overall, the CIO’s relationship with the CMO was rated among the lowest in the entire C-Suite, with only 51% of all respondents reporting it as strong.
  • 22. Organizational business challenges Marketing vs. Selling Security vs. Agility Data vs. Privacy Cost Center vs. Profit Center Change Management vs. System Customization Service Quality vs. Tech Quality Customer Experience vs. Systems Complexity Social Media vs. Confidentiality Disruptive Changes (Uber, Kickstarter, Airbnb, Apple Pay, etc.)
  • 23. CMO • Products and Advertising • Talkers • Campaigns • Products & Features CIO • Systems and hardware • Guardians • Developers • Quality assurance Demand Support Then
  • 24. CMO • Experience • Listeners • Dialogue • Sharing stories • CIO • Cloud & Social • Facilitators • Coordination • Integrators The overlap between the CIO and CMO remit can best be understood as the area where Customer Experience is defined  This implies a shared accountability requiring new KPIs  This means changes in reporting and cooperation needs  Most of this is driven and facilitated by digital technologies CX Now
  • 25.
  • 26.
  • 27. Addressing the organizational challenges  Define decision governance between CMO and CIO  Embrace transparency  Embrace data, use it to define actions  Hire the right people, build the right teams  Hire new ‘hybrid’ talent  Pilot before you implement  Plan, pivot, continue…  Measure and report
  • 28. dashboards is key to manage and monitor this change
  • 29. Where to start It all has to start with a top-level agreement between the CMO and the CIO to work together and have a common view of the assets that are needed for the company to succeed.
  • 30. Branding & Marketing Solutions Expert - Innovation Strategist - Top 100 Social Seller in Singapore - Speaker & Blogger matthieu.vermeulen@gmail.com | @mattvermeulen | sg.linkedin.com/in/matthieuvermeulen/ Matthieu Vermeulen
  • 31. Sources  http://www.mckinsey.com/insights/business_techn ology/getting_the_cmo_and_cio_to_work_as_part ners  http://blogs.gartner.com/laura-mclellan/5- predictions-marketing-2016/  Interview with the Lenovo CTO: http://bits.blogs.nytimes.com/2015/02/24/lenovos- chief-technology-officer-discusses-the-superfish- adware-fiasco/?_r=0

Editor's Notes

  1. Whose idea was this? What is super fish. Manipulates ads. But also places a hackable SSL certificate on the machine. The VP for Windows Ecosystem at Lenovo Mark Cohen said they had screened Superfish in September last year and had demanded to remove features that would abuse the SSL vulnerability. CTO says; the product team was asked to enhance the user experience. Customers complained in January via the CS channel but nothing was done till February.
  2. This part of the press release must have been approved by the CMO
  3. And the CIO/CTO must have signed this off
  4. Just let this sink in. Think about what the data opportunity is and what the customer has access to. How to stand out as a brand?
  5. Using marketing tech maybe? Great idea and you’re not the only one thinking that. ERP is a 25B$ market in 2013 and has a 2.2% growth rate. Just for comparison… So this is going to be big and coming at you and the marketing departments soon.
  6. Here is a “comprehensive” overview of marketing tech TODAY (well 2012 that is). It is fairly complete, which is I think even scarier. Most of these solutions are less than 10 years on the market. More than half is truly cloud based.
  7. Now add just this in terms of Social Media Channels.
  8. Michael Porter has something very true to say about how to gain competitive advantage.
  9. Gartner as well and the statements here are VERY true. The last one is about this: For the second year in a row we found that marketers are setting aside more than 9% of their budget for innovation. Leading a culture of change and company-wide innovation was the third highest ranked increased CEO expectation of CMOs. More marketing executives have innovation in their title.  An increasing number of CMOs manage product development as well as product management. Digital business transformation is causing many industries to shift their business model and offerings to digital vs. physical; putting marketing squarely in the middle of such innovation.  GE’s CMO, Beth Comstock, explains in an HBR blog “Part of marketing’s mandate at GE is to find ways the company has not thought of before to promote ongoing innovation.”
  10. Millenials are the new “normal”, setting the stage for all the generations before and after them for both marketing and technology.
  11. This is a very fancy server room in Russia. But all is moving to the cloud
  12. But… the CMO – CIO relationship is still not strong, yet it is important.