10/20/14   1  

Achieving CIO and CMO Alignment

Scott Strickland

Ø Company  Background    

Ø Original  Situa5on    

Ø Aligning  the  Roles    

Ø Ques5ons  and  Answer    

 

Agenda

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Company Background

About D+M Group

Ø  A  Leading  audio/video  company    

Ø  Three  large  brands    Ø  2,000  employees  worldwide      Ø  Products  and  services  marketed  in  more  than  45  countries  

Ø  Acquired  by  Bain  Capital  in  2008  

Over  100  Years  of  delivering  great  sound  have  added  up  to  hundreds  of  innova6ons,  thousands  of  awards,  and  products  in  millions  of  

homes  

D+M Group Products

Consumer  AV  

AV  Receivers  

CD/DVD/Blu-­‐ray  players  Speakers  

Mini  Systems  

2  channel  HiFi  

Headphones  

Wireless  and  MulF-­‐Room    

Ø  Dedicated  to  enhancing  life  through  inspired  sound  solu5ons  delivered  any5me,  anywhere  

 Ø  Focused  on  innova5on  to  meet  

the  needs  of  customers  in  an  increasingly  digital  world  

 Ø  Sold  through  major  retailers  

and  independents    

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The Original Situation

The Organizations

Marke5ng  

§  Regionally  /  local  geography  reporFng  relaFonships  

§  Organized  by  brand  §  FuncFonally  broad  §  DiscreFonary  budgets  §  Flexible

RESULTS  

Different  objec6ves  Different  measurements  

Informa5on  Services  

§  Global  reporFng  relaFonships  

§  Organized  by  funcFon  §  FuncFonally  narrow    §  Fixed  budgets  §  Structured

Different  approaches  Different  6melines  

Example: Shadow IT

Marke6ng  is  typically  the  largest  source  of  shadow  IT  –  accoun6ng  for  up  to  35%  of    what  should  be  IT  spend  in  an  organiza6on  

Ø Marke5ng  accounted  for  18%  of  IT  spend  at  the  D+M  Group  

 Ø  Shadow  IT  included  

Ø  3rd  party  hos5ng  Ø  Servers  Ø  Development  (website,  mobile,  and  

applica5on)  Ø  Support  contracts  Ø  Cloud  soYware  contracts    

Example: Disconnects and Duplicate Work United  States   United  Kingdom  

Impact

Ability  to  measure  Ability  to  execute  campaigns  Sustainable,  scalable,  secure    

Bang  for  the  buck    Resource  efficiency  

These Behaviors Align with Studies Why  can’t  we  just  get  along?  

Source:    CMO  Council  (CEB  Study  2012)  

These Behaviors Align with Studies (II) Why  can’t  we  just  get  along?  

Source:    CMO  Council  (CEB  Study  2012)  

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Aligning the Roles

Can We Address It?

Who? What?

When?

Where?

How?

Why?

Who? Why? Build Relationships

Do  we  ag ree   tha t :  Ø The   cus tomer  exper ience   i s   oYen  d r i ven  by  techno logy?  

Ø Our   company  needs   in s i gh t   i n to   cus tomers?  Ø We  have  a   j o in t  fi s ca l   r e spons ib i l i t y?  

Establish Common Ground

What? – Provide the “Art of the Possible” Ø  Describe  how  technology  could  apply  to  the  organiza5on  Ø  Build  sample  scenarios  

Ø  Jointly  select  the  most  promising  

Ø  Incorporate  into  the  standard  project  roadmap  

When and Where? – Build a Roadmap Ø  Priori5ze  projects  together  Ø  Provide  regular  updates  

Ø  Flex  or  replace  as  needed  Ø  Break  projects  into  phases  

Who? - Define Roles C l e a r l y d i f f e r e n t i a t e r o l e s b e t w e e n M a r k e t i n g , t h e

c r e a t i v e a g e n c y , a n d I S

Integration Platform

Data Platform

Common Feature Platform

Messaging and Content

Message  Defini5on  Brand    PosiFoning,  CreaFve,  Content  

CreaFon,  Pricing,  Campaigns,  VOC  Programs,  Microsites  Design,  

Channel  DefiniFon  

Shared  Services  Content  Management  System,  Call  Center  Systems,    Customer  Chat,  eCommerce,  Mobility  PlaSorm,  

eMail  Campaign  Features,  Forums,  QR  Code  Delivery  

Master  Data  Customer  Master  Database,  Digital  

Asset  Management  System  

“Experiences”

“Capabilities”

Marketing & Agency IS

“Experiences”

“Capabilities”

Marketing & Agency IS

Applica5on  and  Data  Integra5on    Legacy  Systems  External  Data  Providers    

How? - Build a Platform

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2015        2013      2012      2011    

Foundational

Differentiating

Leverage  user  generated  content  Establish  the  brand  as  a  desFnaFon  site  

 Leverage  social  channels  

Conduct  focused  consumer  markeFng  Improve  eCommerce  capabiliFes  Provide  digital  asset  management  

   

Create  common  plaSorm  

E s t a b l i s h a s e t o f f o u n d a t i o n a l g l o b a l s y s t e m s t h a t c a n b e l e v e r a g e d t o b u i l d d i f f e r e n t i a t i n g c a p a b i l i t i e s w h i l e

r e d u c i n g o r m i n i m i z i n g c o s t s

Example: Digital Brand Platforms

How? - Create “Bimodal” IT

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D e v e l o p a s e t o f m e t h o d o l o g i e s a n d a p p r o a c h e s t o a l l o w I T t o d e l i v e r i t e r a t i v e l y a n d q u i c k l y a l o n g s i d e t h e

t r a d i t i o n a l I T o r g a n i z a t i o n

Marke5ng  IT  Group  

Ø  Develops  iteraFvely  Ø  Co-­‐located    Ø  Draws  from  a  budget  “pool”  

Ø  Flexes  staffing  as  needed  

Ø Uses  hybrid  resources  Ø  Sells  dreams,  not  fear    

Ø  Responds  “yes,  if”…

How? - Stand Your Ground S t o p a n i m p l e m e n t a t i o n , d e f e r a c a m p a i g n , o r m a n d a t e

a p r o j e c t r e s t a r t i f s h a d o w I T c o n t i n u e s t o o c c u r

Ø  Shut  down  a  site  and  corresponding  headphone  campaign  in  Japan

Ø  Demonstrated  importance  of  IS  engagement  and  approval

What About The Chief Digital Officer?

 Ø  Forrester:    A  C-­‐level  execu5ve  charged  with  helping  a  company  

transform  their  IT  policies…evolves  IT  

Ø  Russell  Reynolds:    Oversees  the  full  range  of  digital  strategies  and  drives  change  across  the  organiza5on.  

 

Ø  Gartner:    Plays  in  the  place  where  the  enterprise  meets  the  customer,  where  the  revenue  is  generated  and  the  mission  accomplished  

Is a CDO Needed?

If  the  CIO  understands  the  new  “digital  reality”  and  is  doing  his/her  job,  a  CDO  is  not  necessary    

T h o s e s a m e t h r e e f i r m s a l s o s u g g e s t a C I O ’ s t i m e s h o u l d b e s p e n t f o c u s e d a s f o l l o w s…

Ques5ons?