HfS Research Blueprint Report. Digital Marketing Operations 2016

Thriving In The As-a-Service Economy

MelissaO’BrienDirector,DigitalMarketingOperationsandOneOffice [email protected]@melissajaneob

HfS Research Blueprint ReportDigital Marketing Operations 2016Excerpt for Accenture December 2016

©2016HfSResearchLtd. ConfidentialandProprietary│Page2ExcerptforAccenture

Table of Contents

TOPIC PAGE

ExecutiveSummary 3

UnderstandingtheDigitalMarketing OperationsLandscape 9

DigitalMarketingOperationsforOneOffice CustomerExperiences 16

ResearchMethodology 29

ServiceProviderGrid 34

ServiceProviderProfile 37

MarketDirectionandRecommendations 40

About theAuthor 45

Executive Summary


Introducing the Digital Marketing Operations Blueprint

• This is HfS Research’s first Blueprint dedicated solely to Digital Marketing Operations1, presenting a comparative analysis of the innovation and execution capabilities of service providers in this market. This research will take a look at the evolution of the Digital Marketing Operations market to a more agile, consumer-centric As-a-Service Economy that includes increasingly diverse talent, analytics, and platform-based services.

• In this Blueprint we will also use the 8 Ideals of The As-a-Service Economy as a significant element of our service provider assessment methodology.

• The scope of the Blueprint includes marketing content development and management, campaign management, and analytics and reporting.

• This market landscape is broad and includes BPO/ITO providers, marketing technology companies, traditional agencies as well as a vast array of digital and niche agencies. We cast a wide net for this Blueprint, sending RFIs to organizations spanning the varied organizations, but ended up focusing on the BPO/ITO service organization value proposition.

1. This Blueprint Report focuses on Digital Marketing Operations. In 2014, HfS Research published the Marketing Operations and Digital Customer Experience Management Blueprint Report. HfS covered Customer Experience Management services in 2016’s Contact Center Operations and Digitally Enabled Contact Center Operations Blueprint Reports.


DigitalMarketingOperationsValueChainMarketingContentDevelopment&

Management

• Contentcreationanddevelopment– originaladandfollow-oncollateralcreationandmanagement

• Contentmanagement

• Webdevelopment,ecommercesupport

HfSValueChainDefinition:Valuechainreferstothebusinessunitsthatcarryoutvalue-creatingactivitiestodesign,produce,market,deliver,andsupportacompany’sproductorservice.Inthisusage,werefertotherangeofprimaryprocessesandsupportservicesthatprovidersoffertotheirclients.

ENABLINGTECHNOLOGIES

DigitizationandRoboticAutomation •Analytics •Mobility •SocialMedia •CognitiveComputing •ArtificialIntelligence

OPERATINGMODELS,METHODOLOGIESANDPLATFORMS

Outsourcing •SharedServices •GBS •COEs •BPaaS/SaaS/IaaS •DesignThinking

CampaignManagement

• Marketingconsulting– campaigndesignandmanagement,productdevelopment,etc.

• Campaignexecution,loyaltyprogrammanagement,andcouponandgiftcardmanagement

• Search engineandsocialmediamarketing

AnalyticsandReporting

• Datacleansing andconsolidation

• Datagovernance

• Marketingand campaignanalytics/measurement

• Customeranalytics


Key Highlights: State of the Marketn Changing customer demands are driving investment in digital marketing: It is no surprise that the way

customers consume information and prefer to communicate is at the heart of the changes to marketingoperations today. Whether it’s advertising on social platforms, understanding customer segments on the webor mobile apps, or putting out relevant content for greater personalization and sales conversion, the need forspeed and efficiency is top-of-mind for marketers. Because these expectations and preferences are constantlychanging, enterprises are tasked with becoming more nimble and efficient organizations in order to beincreasingly competitive. This is equally important to B2C- and B2B-focused organizations.

n Rapid changes to the competitive ecosystem: Digital marketing is a fast-evolving space that requires multipleplayers to come together and create an ecosystem for business changing solutions. Digital production is oftende-coupled from strategy and creative, which are typically handled by agencies. But many companies (e.g.,Pepsi Co) have been very vocal about their dissatisfaction with the traditional agency model and are takingmarketing work back in house, or instead of consolidating providers they’re distributing work to severalspecialty providers. The opportunity for BPO providers to disrupt in this space is increasing; while it is criticalfor BPO service providers to partner with agencies, which still have and will continue to have a prominentplace in the ecosystem, there is much more opportunity for BPOs to provide strategic level work than in thepast. In addition, technology has disrupted the way companies go to market. “Martech” has grownexponentially in the last few years, and managing an increasingly complex stack is the norm while companiesstruggle with the pace of change to manage these varied systems.

n Talent wars are a lynchpin of competition: This market is not just defined by platforms and technologydisruption, but by a savvy approach to talent. All types of service providers are looking for the right approachand balance for in-demand talent: creative talent, data scientists, subject matter experts, and verticalexpertise. Underlying all of this is a need to foster a nimble talent strategy and culture that embraces changeand disruption, but maintains a human-centric and problem solving-oriented outlook.


Key Service Provider Highlightsn As-a-ServiceWinnersinthisBlueprintare

distinguishedbyinnovationandexecutioncapabilities:

• Accenturehasacompletevisionfordigitalmarketingoperationsbolsteredbysmartacquisitionsandcomplementedbyautomation.

• Cognizant’s “digitalfactory”andtalentstrategyapproachconveyastrongmessagefordigitalmarketing.

• Infosys hasautomationandanalyticsleadingadigitalfactoryapproach.

• TCShasabroaddigitalmarketingportfolioacrossverticalindustrieswithstrengthinoperations,servicedeliveryandtalentstrategy.

• Wipro hasservicedeliveryexcellencecombinedwithasmartautomationandacquisitionstrategy.

AS-A-SERVICEECONOMY

ProvidersincludedintheAs-a-Service Winner’sCircleutilizeoperatingmodels,enablingtechnologiesandtalenttodrivebusinessoutcomesthroughoutsourcing.Thefocusoftheseprovidersisonwhatmatterstotheendconsumer.

HfSusestheword“economy”todescribethenextphaseofoutsourcingasanewwayofengagingandmanagingresourcestodeliverservices.

The8IdealsoftheAs-a-ServiceEconomy:

1. Write OffLegacy2. DesignThinking3. CollaborativeEngagement4. BrokersofCapability5. IntelligentAutomation6. AccessibleandActionableData7. Holistic Security8. Plug-and-PlayDigitalServices

Source:BewareoftheSmoke:YourPlatformIsBurningbyHfSResearch,2015


Service Provider Highlightsn TheHighPerformershaveinnovativeapproachestodigitalmarketingoperationsservices:

• Aegisbringscustomerexperiencefocuswithsocialmediaexpertise.• Concentrix isdevelopingdigitalmarketingcapabilitiesleveragingstrongcustomerexperience

focusedrelationships.• EXL iscombininginsuranceexpertisewithstrongclientrelationshipsandanalyticscapabilities.• HCL isaflexibleserviceproviderdevelopingafreshapproachtodigitalmarketing.• HGS’customerexperienceexpertisecomplementsatalent+technologydigitalmarketing

strategy.• NTTDATAServiceshasastrongdesignthinkingapproachwithhealthcareexpertise.• TechMahindrahasasuiteofproprietarytechnologycomplementedbypartnerships• Revana Digitalhasanichesearchcapabilitywithinarobustcustomerexperienceportfolio.

n TheExecutionPowerhousesstandoutfortheirstrongexecutioncapabilities,inparticular:• GenpactisapplyingLeanDigitalandacustomerexperienceforwardvisiontodigitalmarketing

operations.

Understanding the Digital Marketing OperationsServices Landscape


Digital Marketing Operations Buyer Needs and Challenges• Maturingdigitalmarketingoperationsaredrivinginvestment:Thematurityofdigital

marketingservicesbuyersfallsonabroadspectrum.Someareattheverybeginningoftheirjourneys,convertingpaper-basedmaterialstodigitalformats.Othersalreadyhaveasoliddigitalmarketingstrategyinplace,andarelookingtofurtheroptimizeandcreateefficienciesintheiroperations.Asbuyersmature,theburgeoningvolumeofdigitalassetsbecomesagreaterchallengetomanage.

• “Better,faster,cheaper”istablestakes:Notsurprisingly,costreductionstillranksasatopdriverfordigitalmarketingoperationsservices.Buyershaveever-increasingexpectationsforspeedandefficiencywithreducedbudgets.Theneedtoreduceturnaroundtimeandtime-to-marketforcampaignsiscommon.Manyclientsviewtheirserviceprovidersasanextensionoftheirteamsthattheycanoftenuseinoffhourswhentimelinesaretight.Ontopoftheseincreasingpressures,mostbuyersarealsolookingtotheirserviceproviderstodelivermarketinsight,thoughtleadershipandinnovation.

• Customerexperienceisimpactinggovernancemodels:Whilethefrontofficetraditionallyoperatedinsiloes,digitalisdrivingaconvergenceoftraditionallydisparatedepartments.Oftenunderthepurviewofan“engagementorexperienceofficer,”enterprisesarelearningtoreachacrossfunctionalsiloes,betweenITandlinesofbusiness,todeliveronamoreholisticexperiencefortheirendcustomer.This,inturn,increasesthecomplexitythatserviceprovidersdealwithwhensettingexpectationsanddeliveringonservicestotheirclientstakeholders.


Key Trends Impacting the Digital Marketing Operations Landscape

• Ever-increasingchannels formarketingandengagement

• Traditional/analogtouchpointscombinedwithdigital

CustomerChannels/TouchPoints

• Goingmuchdeeper thantraditionalcustomersegmentation

• Impactonloyalty,returnsalesandadvocacyPersonalization

• Experiencesarenotlimitedtothecustomer:Employee, enterprise,ecosystemareallapartofre-imaginingexperienceswithinacustomer-centricparadigm

MarketDisruption:TheExperience

Economy


Digital Marketing Operations: Carving out a value proposition

UXDesign

CustomerJourneyMapping

Strategy/Design Copywriting

WebDesign SEO/SEM

Social/Mobile

Engagement

Design Production Deployment

AnalyticsandSegmentation

ContentCreationandPersonali-zation


Increasingly Complex Marketing Ecosystem and Competitive Landscape• ThismarketlandscapeincludesBPO/ITOproviders,marketingtechnologycompanies,traditionalagenciesaswell

asavastarrayofdigitalandnicheagencies.WecastawidenetforthisBlueprint,sendingRFIstoorganizationsspanningthevariedorganizationsportrayedhere,butonlyreceivedmaterialinformationfromthoseorganizationshighlightedontherightbelow.

• Traditionaladagencieshavenotkeptpacewithmarketchanges,andhaveopenedupopportunitiesforconsultanciesandBPO/ITPorganizationstoenterthemarketinsomeunexpectedways.

CreditforMarketingTechInfographic:chiefmartec.com,2016

3,874logos

CoveredinthisBlueprint:


Sample Content Production Engagement Model

LocalizationComplianceand

regulatory

Re-imagingTranslation

Agenciessetthebigpicturetoneforthecampaignbutcan’tmeettheneedsforreducedcostandspeedthatBPOserviceproviderscan

BPOServices

AgencyCampaign

Oftenreferredtoasa“de-coupling”strategy:separatingthecreative

fromtheproduction


Unlikely Disruptors: Moving from Tactical to Strategic• Despitetheprevalenceofthede-couplingmodelillustratedonthelastpage,buyersareincreasinglylookingtoBPO

serviceproviderstomoveupthevaluechain.Manybuyerreferencessaidtheirproviders“dowhatIaskthemtodowell.”Butthesesamereferencesadmittedthereismuchpotentialinthefutureforhandlingmorestrategicservices.Buyersseepotentialinmovingawayfromthearrogantandset-in-its-waysagencymodelandembracingserviceswithafresher-thinking,hungrierprovider.Asonebuyercommented:“Whenyougowithabigagency,you’regoingtogettheirBteam.”Playerswithsmallerpracticeshavesomeinterestingofferings(i.e.,Revana Digital,HGS,EXL)andhavetheadvantageofbeingabletogiveclientslotsofattentionandthoughtleadership.Customerexperiencemanagement-focusedcompanies(i.e.,HGS,Concentrix,Aegis,Concentrix,Revana Digital)havetheadvantageofknowingtheirendcustomer’srequirementsbest.Whiletheyaren’tknownasamarketingbrandfornewlogos,withtheconvergenceofserviceandmarketingcanoftensellbespokeorsmallercampaignswithaninterestingvaluepropositiontocustomerexperiencefocusedstakeholders.ThesamegoesforITOfocusedproviders(i.e.,HCL,NTTDATAServices),wheretheseprovidershavesolidoperationsengagementselsewhereintheorganization,canleveragethestrengthofthoserelationshipsinthegrowingdigitalmarketingspace.

• ClientsseekingalternativestothetraditionalagencymodelhaveenabledWinnersCircleproviderslikeCognizant andAccenturetoexcelatanoverallvisionfordigitalmarketingoperations– theseprovidersareacquiringandintegratingdigitalexpertise– unlikethetraditionalagencieswhobuyupdigitalagenciesandrunthemasseparateentitieswithoutasmuchthoughttoleveragingtheassetsofeachpieceacrosstheorganization.

StrategicTactical

BPOs Agencies

Growingopportunities/potentialforagencydisruption

Digital Marketing Operationsfor OneOffice Customer

Experiences


2020 HfS Vision: The Intelligent OneOffice will emerge from Digital + Automation In an Intelligent OneOffice, operations work smoothly across the traditionally siloed front, middle, and back office in seamless processesthat provide a digitally enabled customer experience. The customer experience that Digital Marketing Operations drives exists in thefront office, but requires intelligent processes and systems behind it to deliver effectively. It’s impossible to completely separate digitalmarketing operations from other front-office processes because much of these services overlap under the umbrella of customerexperience. As data on the next slide shows, moving toward intelligent operations is being driven by a customer-first strategy. Enterprisebuyers and service providers will need to embrace the 8 Ideals of the As-a-Service Economy to journey toward being the people-firstdigital organization, as we describe in the following slides.

Serviceprovidersmustfocusonenablingcapabilitieshere

Digitalmarketingoperationssupportsexperienceshere


Senior Management Driving Customer First ThinkingPleaseindicatewhetheryouagreeordisagreewiththefollowingstatementsaboutYOURIntelligentOperationsmind-settoday

Source: “Intelligent Operations" Study, HfS Research 2016Sample: Buyers = 371

31%

34%

38%

42%

47%

48%

53%

55%

53%

50%

46%

45%

16%

11%

9%

9%

7%

7%

Sourcingofexternalas-a-ServicemodelswillbedeliveredbytheexistinglandscapeoftraditionalIT

Serviceproviders

Sourcingofexternalas-a-Servicemodelswilllargelybedeliveredbyaconstellationofnewbreedproviders

Sourcingofexternalas-a-Servicemodelswillbedrivenbyanoperations-first,or“processfirst”strategy

MovingtoIntelligentOperationswillallowourprocessinteractioncoststodecreasedramatically

MovingtoIntelligentOperationswillallowustobettersegmentandorganizeworkandworkprocesses

Sourcingofexternalas-a-Servicemodelswillbedrivenbya“customerfirst”strategy

Agree Neutral Disagree


The Eight Ideals of the As-a-Service Economy

LEGACYOUTSOURCING AS-A-SERVICEECONOMYSimplification

Legacytechnologyinvestments whichlimitagilityandcreate massesofexceptionsaddressedthroughaddinginternalandexternalFTEs

1.WriteOff Legacy

Usingplatformbasedsolutions,DevOps,andAPIecosystemsformoreagile,lessexceptionorientedsystems

Resolving problemsbylookingfirstattheprocessasthesourceofthesolution

2.Design Thinking

Understandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds

Focusinggovernancestaffonmanaging totheletterofthecontractandthedecimalpointsof

servicelevels

3.Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps

Evaluating relationshipsonbaselines ofcost,effort,andlabor

4.Collaborative Engagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes

Operatingfragmented processesacrossmultipletechnologieswithsignificantmanual

interventions

5.Intelligent Automation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology

Performing ad-hocanalysisonunstructureddatawithlittleintegrationorbusinesscontext

6.Actionable &AccessibleData

Applyinganalyticsmodels,techniquesandinsightsfrombigdata,real-time

Respondingwith post-event fixes.Littlefocusonend-to-endprocessvaluechains.

7.Holistic Security

Proactivelymanagingdigitaldataacrossservicechainofpeople,systems&processes

Undertakingcomplex,painfultechnologytransitionstoreachsteadystate

8.Plug&PlayDigital BusinessServices

Plugginginto“readytogo”business-outcomefocused, people/process/technologysolutionswithsecuritymeasures


8 Ideals for Digital Marketing Operations in 2016Impact refers to level of impact each ideal has on the digital marketing operations market

IDEAL AS-A-SERVICEIDEALDEFINITION IMPACT NON

EXISTENT INITIAL EXPANSIVE EXTENSIVE ALLPERVASIVE

WriteOffLegacy

Usingplatformbasedsolutions,DevOps,andAPIecosystemsformoreagile,lessexceptionorientedsystemsandprocesses

HIGH 2016

DesignThinking


HIGH 2016

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps

HIGH 2016

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes

HIGH 2016

IntelligentAutomation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology

MODERATE 2016

Accessible&ActionableData

Applyinganalyticsmodels,techniquesandinsightsfrombigdata,real-time HIGH 2016

HolisticSecurity

Proactivelymanagingdigitaldataacrossservicechainofpeople,systems&processes

HIGH 2016

Plug andPlayDigitalBusinessServices

Plugginginto“readytogo”business-outcomefocused, people/process/technologysolutionswithsecuritymeasures

MODERATE 2016


How As-a-Service Is Taking Shape in Digital Marketing Operations: Writing Off Legacy

Legacytechnologyinvestments thatlimitagilityandcreate exceptionsaddressedby

addinginternalandexternalFTEs

Usingplatform-basedsolutions,DevOps,andAPIecosystemsformoreagile,less-exception-orientedsystems

§ The entire concept of digital marketing operations is aimed at helping enterprises write off and transform their legacytraditional advertising model. Successful service providers will look to really help clients write off legacy, not just to liftand shift what the agency does at a lower cost. Writing off legacy for Digital Marketing Operations entails enablinggreater flexibility to put ads on new channels as well as access to customer data by retiring or modernizing, or evenconnecting to older systems. This change ideal encompasses not just writing off legacy technology, but also the way ofdoing things—this includes moving metrics away from legacy practices and metrics pertaining to paper/TV basedadvertising, toward digital “brochures” or interactive media optimized for the web and mobile devices. Most serviceproviders are keenly aware of the need and opportunity to help clients write off legacy, but as of 2016 the ideal is still inthe “Initial” stage for the Digital Marketing Operations market.

Example:• Accenture provided an example of true “writing off legacy”, not just from a thinking standpoint but to actually help the

client do away with a legacy system. For a large financial services partner, Accenture completed an overall assessmentof the end-to-end marketing operation, developed a consolidated operating model across multiple vendors, thencreated a transition plan to ultimately hand over the keys to the operation. This wrote off their legacy operations fromdesign, development, testing to hand off. In the service provider’s words, Accenture left this client’s legacy system “inthe recycling bin on the curb.”

HIGHIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Design Thinking

Resolvingproblemsbylookingfirstattheprocessasthesourceofthesolution


§ Design Thinking provides a real potential for high impact and engagement between buyers and service providers fordigital marketing operations, ushering in a fresh approach to think and engage as partners. With the convergence ofsales, marketing and service to understand the customer journey across previously (or currently) siloed departments,design thinking can help facilitate the discussions around reimagining and transforming business models. This ties inclosely to “brokers of capability” to align stakeholders more effective, personalized marketing in a digitally focusedconsumer engagement model. The challenge is in the nebulous approach to not really defining deliverables with adesign thinking project—this is a challenge for all service providers and buyers in this market. Clients who are used tobuying into a deliverable may be reluctant to engage in a design approach that was once considered academic or “fluff.”There is much discussion about design thinking in this market, and consider this ideal within the “Initial” phase forDigital Marketing Operations.

Example:• NTT Data Services stood out with the strength of its design thinking approach. As part of NTT Data Services’ patient

engagement program that is underway for a leading healthcare client, its scope of work included creating a journeymap for the patient discharge process. The process involved a six week engagement that span across focus groupinterviews with chief medical officer/teams and chief nursing officer/teams to understand the where there were areasof friction in the process. Various pain points were determined and a the service provider formulated a transformationroadmap incorporating digital platforms. As a result, the client was able to reduce hospital readmission rates, improvesatisfaction scores, decrease patient discharge cost, and reduce discharge and post discharge processing efforts.

HIGHIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Brokers of Capability

Focusinggovernanceandoperationsstaffonmanagingtotheletterofthecontractandthedecimalpointsofservicelevels

Orientinggovernancetosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps

§ Many clients of digital marketing operations are huge organizations struggling to get capabilities aligned arounda OneOffice customer experience. The stakeholders involved range from IT to important leaders of other linesof business not directly within the marketing per view that might have a marketing aspect related to theirbusiness function. Service providers need to develop talent that will drive innovation for business outcomes inleadership positions, where they can “broker” across organizational silos to champion the customer experience.Being a broker of capability is about articulating a business problem or opportunity, the desired outcomes, andthen coordinating and facilitating across internal and external entities to reach those results. Brokers ofCapability in Digital Marketing Operations organizations will become more important in the future as the scopeof engagements pivots to focus on more customer experience transformation and outcomes focused work. Weconsider Brokers of Capability in the “Initial” stages for Digital Marketing Operations.

Example:

§ Wipro is using a governance layer of its “Digital Marketing Council” to align services and provide a single visionof capabilities and advisory for clients. Within Wipro’s organization, senior practice leaders gather monthly tobrainstorm on how to best align capabilities relating to its customers’ digital transformation to present a fullview of its capabilities.

HIGHIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Collaborative Engagement

§ Closely related to the brokers of capability ideal, Digital Marketing Operations buyers and providers are workingtoward Collaborative Engagement are enabling the kind of cross-organizational thinking that is needed in orderbreak down internal silos, reaching across products/lines of business as well as navigate the third partyecosystem to connect various elements of the customer experience. This is particularly important in the rapidlychanging, confused landscape of the digital marketing ecosystem. HfS is seeing a move over time to morecollaboration where trust and experience are in place, often through shared outcomes and results. Theadoption of practices of collaborative engagement is in the “Initial” phase in Digital Marketing Operationstoday, but relationships are definitely moving in the direction of being more collaborative, in particular as itrelates to the larger marketing competitive landscape.

Example:

• Wipro worked with a global Consumer Goods organization to pilot a proof of concept to drive innovationthrough design-thinking, from ideation through to marketing prototype to develop a campaign for a specificlocal market. The highlight of this engagement was the comprehensive collaboration across various clientstakeholders (product owner, marketing managers, compliance manager, marketing operations) and Wiprostaff (marketing strategists, creative technologists, mobile developer) to work through a series of design sprintsto create several ready-to-test marketing solutions.

Evaluatingrelationshipsonbaselinesofcost,effort,andlabor

Ensuringrelationshipsarecontractedtodrivesustainedexpertiseandoutcomes

HIGHIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Intelligent Automation

Operatingfragmentedprocessesacrossmultipletechnologieswithsignificant

manualinterventions

Usingautomationandcognitivecomputingtoblendanalytics,talent,andtechnology

§ While RPA is table stakes in this digital marketing operations market to optimize workflows and basic processes,intelligent automation is very nascent. Many clients say they are not yet ready to use intelligent automation. DigitalMarketing Operations services are in the very early “Initial” stages of using what we call Intelligent Automation—usingsoftware and technology to do routine tasks, and enhancing it through machine learning and natural languageprocessing, and moving up the curve with artificial intelligence.

Examples:

• Wipro is one of the early movers for intelligent automation, aspiring to use its Holmes platform to apply intelligentautomation to digital marketing automation. In one example in proof of concept, Holmes attacks the issue of “fakenews”—using Holmes to scroll through social media and interpret the posts to understand whether the news is likely tobe inappropriate. This goes above and beyond typical social monitoring tools (i.e., Radian6, Lithium, Attensity) for itscognitive capability—the ability to compare and understand information, consistently learning from it. While this is stillin pilot stage, it holds opportunity for the future of marketing operations to increase the intelligence of operations.

• TCS’ Smart Content Management Backbone (SCMB) stands out as one of the platforms enabling efficiencies in digitalmarketing operations for maximizing reuse of digital assets. Also, TCS’ investment in Ignio is one of the other fewexamples of automation aspiring to get more intelligent in the realm of digital marketing operations.

MODERATEIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Accessible and Actionable Data

Performingad-hocanalysisofunstructureddatawithlittleintegrationor

businesscontext

Applyinganalyticsmodels,techniques,andinsightsfrombigdata in real-time

§ Accessible and Actionable Data is arguably the highest impact ideal for digital marketing operations. The holy grail for marketers isto collect, analyze and use customer data in a way that improves personalization, increases sales conversions and fosters customerloyalty. The goal for Accessible and Actionable Data for customer experience is to integrate Digital Marketing Operations and CRMsystems, making various sources of data available for analysis and insight with the goal of creating effortless and personalizedinteractions for the customer. Most Digital Marketing Operations providers have analytics expertise embedded in Digital MarketingOperations operations, and so we consider the industry to be at the “Expansive” stage in 2016.

Examples:

• Revana Digital’s approach to accessible and actionable data connects to its contact center operations in a unique way. A proprietaryplatform acquired through WebMetro, Revana Digital’s AQ360 tool, enables a connection of online interaction to phone agentexperience. For example, if an end customer was searching on a branded keyword, when the user submits a web form or calls thenumber on the website, the contextual information is passed to the agents on the other end, which is managed by TeleTech agents(Revana Digital’s CEM expert parent company). This tool also routes the interaction to the agent best equipped to handle theinformation. This is an example of connecting marketing operations to other elements of the front office, like customer service.

• One of the biggest areas for using accessible and actionable data in marketing is for social media. Infosys developed acomprehensive social media monitoring and analytics program for a high tech company, listening to all social channels, identifyingissues and categorizing them per product line, and then providing customized reports to internal stakeholders on issues andsentiments to mitigate risk to the lowest level for new product launch.

HIGHIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Holistic Security

Respondingreactivelywithpost-eventfixes; little focusonend-to-endprocess

valuechains

Proactivelymanagingdigitaldataacrossaservicechainofpeople,systems, andprocesses

§ Holistic Security involves managing a culture of security that addresses people, systems, and processes. Serviceproviders need to be constantly evaluating new standards and approaches on account of risks to customer andclient data. In the case of managing customer data on digital platforms, service providers need to be on top ofsecurity and mitigating risk for clients. This ideal is in the “Expansive” phase for digital marketing operations.

Examples:§ TherewereseveralclientcasestudiesinthehealthcareverticalforthisBlueprint,whichisanespeciallysensitive

marketforsecurityduetoHIPAAregulations.NTTDATAServicesprovidedanexamplewherewhileincreasingcustomerpersonalizationontheweb,theserviceproviderwasnotabletoaccessanyindividualdatasuchasname,SSN,ormedicalillnessanddataisonlyaccessedbypeoplewhoareauthorizedtodosousingproperapprovalmechanisms.

§ AnotherNTTDATAServiceshealthcareclientreferencedescribedthechallengetoimplementproactivemarketingonchatorsocialmediaduetoaconcernaboutsecurityonthoseplatforms.Whileanendcustomermaynotthinktwiceaboutofferingconfidentialinformationonthoseplatformswhenengagingwithahealthcarepayerorprovider,theneedtohandlethatinformationconfidentiallyiscrucial.Serviceprovidersneedtohelptheirclientsmitigateriskanddesignastrategythatdiscouragessharingofconfidentialinformationondigitalplatforms.

HIGHIMPACT


How As-a-Service Is Taking Shape in Digital Marketing Operations: Plug-and-Play Business Services

Undertakingcomplexandoftenpainfultechnologytransitionstoreachasteady

state

Plugginginto“readytogo”businessoutcome–focused,people,process, andtechnologywithsecuritymeasures

§ Plug and Play is a challenge for this market: there are no two marketers are alike, and service providers need to be alittle different for each unique client and marketing model they encounter. Buyers say they often see vendorscommitting to services they don’t yet have—stuff that isn’t “fully baked”—however, that’s what service providersneed to do in order to innovate, so it’s a bit of a catch 22 in presenting services that are aimed at being ready to go.Plug-and-Play Business Services focus on business outcome oriented solutions that blend talent and technologywith all the other ideals baked in. This currently has moderate impact, and we consider this ideal in the “Initial”phases.

Example:

§ Accentureworkedwithanautomotiveclientonanengagementwhichwastheclosesttoanexampleofplugandplayservicewefound.Theengagementbeganwithacustomerjourneystudytoevaluatewheredigitalfitintoitsmarketingoperations.Accenturebuiltamodelalignedtooutcomebasedservices(theserviceproviderwasonlypaidwhenpeoplecameintotheshowroomaswellasoncarssold.)Throughthisvalue-baseddeal,Accenturewasabledrivethemarketingpricepercardownandmodernizetheclient’sdigitalmarketingintheprocess.Throughthis“living,breathing”engagement,Accentureappliedtalent,technologyandprocesstocontinuetoevolvetheengagement.Theserviceproviderisnowworkingonaloyaltyprogramforthiscomplexecosystemwhichdemandsconnectingmanufacturerswithdealersacrossanintricatecustomerjourney,andhelpingtorebuildtheclient’smarketingmodelintheprocess.

MODERATEIMPACT

Research Methodology


Research MethodologyDataSummaryn DatawascollectedinQ42016,frombuyersand

serviceprovidersofdigitalmarketingoperationsservices

ParticipatingServiceProviders

§ TalesfromtheTrenches:Interviewswithbuyerswhohaveevaluatedserviceprovidersandexperiencedtheirservices.Somecontactswereprovidedbyserviceproviders,andotherswereinterviewsconductedwithHfSExecutiveCouncilmembersandparticipantsinourextensivemarketresearch.

§ Sell-SideExecutiveBriefings:Structureddiscussionswithserviceprovidersregardingtheirvision,strategy,capability,andexamplesofinnovationandexecution.

§ PubliclyAvailableInformation:Thoughtleadership,investoranalystmaterials,websiteinformation,presentationsgivenbyseniorexecutives,industryevents,etc.

ThisReportisBasedOn:


HfS Blueprint Scoring: Digital Marketing Operations

EXECUTION 100%

30%

30%

25%

15%

INNOVATION 100%

TalentStrategy 25%

VisionforDigitalMarketingOperationsEvolution 30%

ApproachToHelpingClientsWriteOffLegacy 15%

RoadmapForUseOfTechnology ToSupportBusinessProcesses 15%

RoadmapForAccessibleandActionable Data&Analytics 15%

QualityofCustomerRelationships• AccountManagement,IncorporatingCustomerFeedback

ServiceDeliveryExecution• Completenessof Offerings,ExecutionofProcess,Geographic

FootprintAbilitytoAttractand RetainTalentProgressonEmbeddingAutomation


Execution DefinitionsEXECUTION Howwelldoestheproviderexecuteonitscontractualagreementand

howwelldoestheprovidermanagetheclient/providerrelationship?

QualityofCustomerRelationships Howdoclients rateaccountmanagement?Howwelldoestheserviceproviderincorporateclientfeedbackintooperations?

ServiceDeliveryExecution

Howwelldoesthe serviceproviderperformitsservices(e.g.,deliveryconsistency,stability,meetingtargetedSLAsandimpactingbusinessoutcomesthatmattertoyou)?Howcompleteistheserviceprovidersbreadthofofferings,executionofprocessandgeographicfootprint?

AbilitytoAttractand RetainTalent Howwelldoestheserviceproviderattractandretainthebest talenttoenableongoingservicedeliveryofdigitalmarketingoperations?

ProgressonEmbeddingAutomationDoestheserviceprovideruseautomationtoimprovetheefficiencyandeffectivenessof digitalmarketingoperationsservices?Istheserviceproviderlookingatwaystoincreasetheintelligenceofautomation?


Innovation DefinitionsINNOVATION Innovationisthecombinationofimprovingbothservicesandbusiness

outcomes.

TalentStrategyDoestheserviceprovider’stalentstrategytakeintoaccountthechangingtalentneedsasaresultofdigitaltechnology?Doestheserviceproviderthinkaboutwaysitcanprepareitsworkforceforitsclients’futureneeds?

VisionforDigitalMarketingOperationsEvolution

Doestheserviceproviderhaveideastoinvestinchangeonitsclients’behalf?Howcomplete istheserviceprovider’svisionfordigitalmarketingoperations,anddoesitcomplementtheoverallcompanystrategyfordigitaltransformation?

ApproachToHelpingClientsWriteOffLegacy

Istheserviceproviderhelping clientspivottheirtraditionalmarketingtodigitalmarketingbyusingagilemethodology,designthinking,anddevelopingastrongpartnerecosystem?

RoadmapForUseOfTechnology ToSupportBusinessProcesses

Howistheserviceprovider usingplatforms,whetherproprietaryorpartnershipfocused,tosupportdigitalmarketingoperations?Istheserviceproviderlookingatwaystoincreasetheintelligenceofautomation?

Service Provider Grid


TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome–oriented,on-demandtalentandtechnologyservices,HfSawardstheseprovidersthe“As-a-ServiceWinner’sCircle”designation.

EXECUTION INNOVATION

As-a-ServiceWinner’s Circleshowexcellencerecognizedbyclientsinthe8Idealsin executionandinnovation

Collaborativerelationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements.

Articulatevisionanda“newwayofthinking,”haverecognizableinvestmentsinfuturecapabilities,strongclientfeedback,and aredrivingnewinsights andmodels.

HighPerformersdemonstratestrongcapabilitiesbutlackaninnovativevisionormomentuminexecutionofthevision

Executesomeofthefollowingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwith“greenlights,”andflexibilitywhenmeetingclients’needs.

Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnershipsforAs-a-Service,andillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.

High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentuminexecutionofit

Earlyresultsandproof pointsfromexamplesinnewserviceareasorinnovativeservicemodels,butlackscale,broadimpact,andmomentuminthecapabilityunderreview.

Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmap,andtalentdevelopmentplans.

ExecutionPowerhousesdemonstratesolid,reliableexecutionbuthaveyettoshowsignificantinnovationorvision

Evidence ofoperationalexcellence;however,stillmoreofadirectiveengagementbetweenaserviceprovideranditsclients.

Lack ofevidentvisionandinvestmentinfuture-orientedcapability,suchasskillsdevelopment,“intelligentoperations,”ordigitaltechnologies.

Guide to the Blueprint Grid


INNOVA

TION

EXECUTION

ExcellentatInnovationandExecutionInvestinginInnovationtoChange

BuildingAllCapabilities ExecutionIsAheadofInnovation

AS-A-SERVICEWINNER’SCIRCLE

EXECUTIONPOWERHOUSES

HIGHPOTENTIALS

HIGHPERFORMERS

HfS Blueprint Grid: Digital Marketing Operations

Concentrix

HCL

Revana Digital

Cognizant

Infosys

HGS Genpact

TechMahindra

Accenture

EXL

TCSNTTDataServices

Wipro

Aegis

Service Provider Profile


Major Service Provider Dynamics: HighlightsEXECUTION

• QualityofCustomerRelationships (AccountManagement,IncorporatingCustomerFeedback):ManyoftheBlueprintparticipantsstoodoutforclients’verypositiveimpressionsofaccountmanagementandthegeneralhealthoftherelationship,includingTCS,HGS,HCL,Wipro,Concentrix,EXLandGenpact.Thesequalityrelationshipsareexceptionallyhelpfulinwinningdigitalmarketingoperationsdeals,especiallywhenderivedfromother,moredevelopedlinesofbusiness.

• ServiceDeliveryExecution (CompletenessofOfferings,ExecutionofProcess,GeographicFootprint):Cognizant’s impressivesuiteofproprietarytechnologiesseekstocommoditizeandreproducelikeafactorymodel,enablingsuperiorservicedeliveryexecution.OtherWinner’sCircleprovidersAccenture,Infosys,Wipro,andTCShaveanexpansivebreadthofofferingsandsolidservicedelivery.Genpact’s LeanDigitalapproachlendstheexpertise,processcentricanddesignthinkingfocustodigitalmarketingoperations.BesuretowatchserviceproviderswhohavehonedexpertiseinspecificverticalsEXL(Insurance),Dell(Healthcare),Concentrix(Automotive)toreplicatethosecapabilitieselsewhere.

• AbilitytoAttractandRetainTalent:ClientsofNTTDataServicesandHCLcomplementedtheserviceproviderfor applyingtherighttalenttodeliverthebestexpertiseandvaluetotheengagement.

• ProgressonEmbeddingAutomation:Accenturehasastrongstoryforembeddingautomation,includingbotslikeDaikiri,whichautomates contenttestingprocesses.Wipro isexperimentingwithusingtheHolmesplatformtodeliverintelligentautomationfordigitalmarketingoperations,asisTCSwithitsignio platform.

INNOVATION

• TalentStrategy:Cognizant istakingastrongapproachtoitstalentstrategy,includingpartnershipswithuniversitiesanditsacquisitionofReD Associates,bringinghumanandbehavioralscientists.TCScitedrecenttargetedhires foritsDigitalReimagination™studiowhichindicatedadedicationtoforwardthinkingtalent.

• VisionforDigitalMarketingOperationsEvolution:Accenture’simpressivetrackrecordofprovocativeacquisitionsdemonstratetheserviceprovider’scommitmenttoitsvisionfortheevolution ofdigitalmarketingservices.Similarly,Cognizant’srecentacquisitionshavedemonstratedacommitmenttostrategicdigitaldevelopmentinasomewhat“outsidethebox”way.RevanaDigital,Aegis,Concentrix,andHGS,arealltakinga“customerexperience”focusedapproach,leveragingtheircustomercontactportfolios,todevelopauniquevaluepropositioninthisspace.

• ApproachToHelpingClientsWriteOffLegacy:Concentrix’s ALTCRMtooltosupportclients’desiretogetaholisticviewofthecustomerbypluggingintomanydisparatesourcesofdataandbeingconfigurabletoclients’needs.

• RoadmapForUseOfTechnologyToSupportBusinessProcesses:TechMahindra’sexpansivesuiteofproprietary technologyhasthepotentialforalotofimpactonclients’digitalmarketingoperations.

• RoadmapForAccessibleandActionableData&Analytics:EXL’sanalyticsexpertiseareespeciallyrelevanttothisareaofdigitalmarketingautomation,wherebuyersareconstantlyseekingtolearnmoreabouttheirendcustomersandpersonalizemessages.


Accenture

RelevantAcquisitionsandPartnerships KeyClients GlobalOperationsCenters ProprietaryTechnologies

Acquisitions:• IMJCorporation,2016• dgroup, 2016• MOBGEN,2016• Tecnilogica,2016• Cimation,2015• Brightstep,2015• PacificLink Group, 2015• ChaoticMoon,2015• AD.Dialeto,2015• BoomerangPharmaceuticalCommunications, 2015• CloudSherpas,2015

Keypartnerships:• Adobe• GoogleAdWords• Salesforce

Totaldigitalmarketingoperationsclients:100+

Keyclientsinclude:• Global consumerproductsandgoods• BMW• UBS• U.S.Pharmacompany• SouthAfricandivision ofaglobaltelco• MajorU.S.retailer• LeadingU.S.telco• Globalfinancialservicescompany• LeadingU.S.B2Bhightechreseller• U.S.basedgroceryretailer• Europeanarmofaglobalauto

manufacturer

Headcount:8,300

DeliveryCenters:10+

• LATAM:7.5%(Argentina-BuenosAires,CostaRica-SanJose)

• U.K.:1%(London)• EMEA:13.5%(Poland-Warsaw,

Ireland-Dublin,Spain-Malaga,Madrid,Italy-Milan)

• India:67%(Bangalore,Chennai,Mumbai,Delhi,Hyderabad)

• Philippines:8%(Philippines-Manila)

• OtherAPAC:1%(China-Dalian,Shanghai)

• NorthAmerica:2%(U.S.A.)

• EstimationTool• Daikiri• Jira• HeroFramework• AccentureDigitalDiagnostics(ADD)• PrecisionMarketing• CustomerProfiler• Accenture ClusteringEngine• AssetUtilization• EmailMarketer• CampaignManager• SocialWall• AccentureMarketingAnalyticsPlatform(AMAP)• AccentureCustomerInsight(ACI)• AccentureDigitalOptimization(ADO)• AccentureInsightsPlatform(AIP)• AccentureCustomerAnalyticsRecord(ACAR)

Strengths Challenges

• Industrydiversificationandbusinessoutcomefocus:Accenturehasdigitalmarketingoperationsclientsandsolidcasestudiesspanningmanyindustries,whereasmanycompetitorstakeanindustryfocusedapproach.Theserviceprovider’sabilitytoreplicateservicesacrossindustryverticalsanddrivebusinessoutcomesisatestamenttoitstalentandprocesses.

• Talentstrategy:MuchofAccenture’sonshorestaffareex-agencytalent,bringinganexpertiseandunderstandingofthetraditionalagencyworldwithaneyetowardthefuture.Theonshore/offshorebalancewithindigitalmarketingoperationsisasmartapproachtotalent,andclientsnotedthatAccentureflexeswellinresponsetodemand.

• Approachtoautomation:Accenturemaintainsafocusedapproachontheend-to-endprocess,embeddingautomationandanalyticstodeliverbusinessinsightsandoutcomes.ToolslikeDaikiri,whichautomatescontenttestingprocesses,andJira,whichautomatesmarketingworkflow,createefficienciesforAccentureclients.

• Provocativeacquisitions:Accenture’sacquisitionsoverthelastfewyearsareillustrativeoftheserviceprovider’sforwardthinkingvisionfortheevolutionofthismarket.Theseacquisitionsspanacrossvariouscorepiecesofdigitaltransformation,suchasaVVenta forcontent,CimationforIoTconsultingandChaoticMoonfordigitaltechnologydesignandprototyping.Theseacquisitionscomplementmarketingoperationsandcustomerexperienceservices,helpingtodoubletheserviceprovider’sdigitalmarketingoperationsbusinessoverthelasttwoyears.

• Culturalintegrationofacquisitions:Accenturehasmadesomeboldmovesintermsofacquisitionsandisworkingtoensurethattheskillstheyhaveacquiredarenotdiluted.Goingforward,Accentureshouldcontinuetoworktoensurethattheacquiredorganizationsareintegratedculturallyandthattheycandrawoutthefullvalueandbenefitfromtheseacquisitions.

• Improvingcustomerrelationships:Feedbackfromclientsonaccountmanagementismixed,wheresomeareverypleasedandothersseekingmoreattentionandthoughtleadershipfromtherelationship.GiventhegrowthofthisbusinessforAccentureinthepasttwoyears,thiscouldbeattributedtothepaceofchange,withagreaterfocusonvisionandinnovationwhichcouldhaveresultedinAccenturetakingforgrantedsomeofthebasics.

BlueprintLeadingHighlights

• AbilitytoAttractandRetainTalent• ProgressonEmbedding

Automation• TalentStrategy• VisionforDigitalMarketing

OperationsEvolution

AcompletevisionfordigitalmarketingoperationsbolsteredbysmartacquisitionsandcomplementedbyautomationWinner’s Circle

ValueChainServicesCoverage:MarketingContentDevelopment

&Management

Campaign Management

AnalyticsandReporting

Market Direction and Recommendations


Digital Marketing Operations Services: What’s Next?

• Anevolutionbeyondisolatedengagementstomorecomprehensivemarketingoperationsservices:Whileservicesinthismarketareoftenconsumedinamorepiecemealfashioncurrently,servicesbuyerswillstarttoadoptmoredigitalmarketingoperationsservicesfromproviderswheretheyhavetrustedrelationships.Themajorityofbuyersinterviewedforthisreportwereinterestedinexpandingthescopeoftherelationshipswiththeircurrentserviceprovidersandexperimentonnewplatforms(i.e.socialmediaplatformsastheyarise).Serviceproviderswhicharefocusedonthoughtleadershipwillwintheseexpansions.

• Continuedconvergenceofsales,marketingandcustomerservicefordigitalcustomerexperience:Theedgesoffrontofficeserviceswillcontinuetoblur,furtherblurringthelinesbetweentheservicesthatprovidersoffer.Manyprovidersnotincludedinthisreportwereontheperipheryofdigitalmarketingoperationsbecauseoftheirapproachtocustomerexperience;thecomingyearwillseegreaterdevelopmentoftheirvaluepropositionsandemergenceintothiscompetitivelandscapeinabigway.


Digital Marketing Operations: The 8 Ideals in 2020

IDEAL AS-A-SERVICEIDEALDEFINITION

NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALL

PERVASIVE

WriteOffLegacyUsingplatformbasedsolutions,DevOps,andAPIecosystemsformoreagile,lessexceptionorientedsystemsandprocesses 2016 2020

DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016 2020

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps 2016 2020

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016 2020

IntelligentAutomation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology 2016 2020

Accessible&ActionableData

Applyinganalyticsmodels,techniquesandinsightsfrombigdata,real-time 2016 2020

HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systems&processes 2016 2020

Plug andPlayDigitalBusinessServices

Plugginginto“readytogo”business-outcomefocused, people/process/technologysolutionswithsecuritymeasures 2016 2020


2017 Recommendations: Enterprise Buyers

Enterprisebuyersneedto:

• Encouragebrokersofcapabilitywithinorganizationforcustomerexperience:Inordertocreatenimble,intelligentoperationsthatsupportOneOffice,buyersneedtotakeadeeplookinwardtoconnectkeystakeholdersacrosstheorganization.

• Leverageserviceproviders’expertisetoassessmaturity:Manyserviceprovidershavedevelopedframeworkstohelptheirclientsassessdigitalmarketingandcustomerexperiencematurity,andwilloftentakeaconsultativeapproachtohelpingclientsunderstandwheretheyareandwheretheyneedtobe.

• Embracedesignthinking:Inadditiontoreachingacrossorganizationalsiloes,servicesbuyersalsoneedtogetoutoftheircomfortzoneswhenitcomestoahuman-centricdesignthinkingapproachinternallyandwithserviceproviders.

• Looktoserviceprovidersbeyondcostandefficiency:Almosteveryservicesbuyerwespoketoexpressedaninterestinmorestrategic,highervalueservicesfromtheirproviders.Thisisofteneasilyexpressedbutnotaseasilyadoptedbyvariousstakeholderswithinclientorganizations.Thecombinationofembracingtheidealsofdesignthinkingandbrokersofcapabilitywithinclientorganizationswillhelptoenablebetterreceptionofnewideasandstrategicthinkingwithdigitalmarketingoperationsserviceproviders.


2017 Recommendations: Service ProvidersInordertobecompetitive,serviceprovidersneedto:

• Fosterthepartnerecosystem:Thepartnerecosystemmightbethemostimportantandsensitiveelementofsucceedinginthismarket.Aswehavedescribed,BPOsareworkingdownstreamfromtheagencyandthuspartnershipswithagenciesareacriticalpartofservicedelivery.

• Investinaconsultativeapproachforhelpingclientsevolvetheirmaturity:Themorethatserviceproviderscanhelptheirclientsalongthematuritycurve,thegreaterstickinessandstrategicvaluetheywillprovidetotheirclients.Digitalmarketinglookstotallydifferenttoeveryorganization,andthusaconsultativeapproachisoftenneeded.

• Constantlyevaluatenicheplayersforacquisition:Areastotargetwillbevertical-specificexpertise,nicheandemergingplatformexpertise.

• Furtherdevelopmarketinganalytics: Effectiveuseofdataisattheheartofdigitalmarketingoperations.Segmentationneedstotranscenditscurrentcapacitytomuchgreaterpersonalization– andbalancethatwithastrategythat’snotintrusivetoendcustomers.

• Providemorethoughtleadership:Continuetobringcompelling,costeffectivesolutionstoclientsinadditiontomarketinsights.

• Provideflexibilityinservicesandcontracts:Helpbuyerstostreamlinetheselectionprocess.Buyersareoftenoverwhelmedwiththeselectionprocessformarketingservices;havingcrispmessagesaroundtechnology,peopleandcreativephilosophycombinedwithaflexible,well-incentivizedapproachtodealsisthekeytowinningnewcustomersanddisruptingagencybusiness.

• Thebottomline:ifserviceprovidersdon’tcontinuetomoveintotherealmofstrategic,digitalmarketingoperationswillmatureintoanothercommoditized,race-to-thebottomcosttakeoutBPOservice.Thebestwaytocombatthisisthroughawellplannedtalentstrategyandincreasinglyintelligentautomation.

About the Author


[email protected]

Overview§ Melissa O'Brien is Research Director, Contact Center and OneOffice Customer Experiences at HfS

Research. Her research coverage includes customer experience management services, exploring ties withmarketing operations and developing thought leadership around intelligent automation for DigitalMarketing Operations and vertical specific customer engagement business processes.

Previous Experience§ Prior to HfS, Melissa spent four and a half years at IDC as Research Analyst managing the Worldwide

Customer Experience Management Services program. Her role at IDC included analysis of evolvingcontact center business process and consumer communication trends and delivering reports,presentations and custom consulting projects including market forecasts and in depth competitiveassessments.

§ Melissa previously worked within the BPO industry as Client Services Manager at PSG Global Solutions, anoutsourced recruiting services business. Melissa held various roles at PSG Global, including new clientimplementation, program design, and training, including development and delivery of the original trainingprogram in their Manila and Cebu, Philippines offices.

Education§ Melissa graduated with honors from the University of New Hampshire with a BA in English and

Communication, and is a member of the Phi Beta Kappa honor society.

Melissa O’Brien• ResearchDirector,ContactCenterandOneOffice CustomerExperiences,

HfSResearch– Boston,MA


About HfS ResearchHfSResearch isTheServicesResearchCompany™—theleadinganalystauthorityandglobalcommunityforbusinessoperationsandITservices.Thefirmhelpsenterprisesvalidatetheirglobaloperatingmodelswithworld-classresearchandpeernetworking.

HfSResearchcoinedthetermTheAs-a-ServiceEconomy toillustratethechallengesandopportunitiesfacingenterprisestore-architecttheiroperationsandthriveinthiserawhereemergingdisruptivecompetitorsareusingdigitalplatformsandcognitivecomputingthatcanwipeouttraditionalenterprisesovernight.HfS’OneOfficeTM Paradigm iscenteredoncreatingthedigital customerexperienceandanintelligent,singleofficetoenableandsupportit.HfS’visionisabouthelpingclientsachieveanintegratedsupportoperationhasthedigitalprowesstoenableitsenterprisetomeetcustomerdemand- asandwhenthatdemand happens.

WithspecificpracticeareasfocusedontheDigitizationofbusinessprocessesandDesignThinking,IntelligentAutomationandOutsourcing,HfSanalystsapplyindustryknowledgeinhealthcare,lifesciences,retail,manufacturing,energy, utilities,telecommunications andfinancialservicestoformarealviewpointofthefutureofbusinessoperations.

HfSfacilitatesathrivinganddynamicglobalcommunitywhichcontributestoitsresearchandstagesHfSholdsseveralOneOfficeTM Summits eachyear,bringingtogetherseniorservicebuyers,advisors,providersandtechnologysuppliersinanintimateforumtodevelopcollectiverecommendationsfortheindustryandadddepthtothefirm’sresearchpublicationsandanalystofferings.

Nowinits tenthyearofpublication,HfSResearch’sacclaimedblogHorsesforSources isthemostwidelyreadandtrusteddestinationforunfetteredcollectiveinsight,researchandopendebateaboutsourcingindustryissuesanddevelopments.HorsesforSourcesandtheHfSnetworkofsitesreceivemorethanamillionwebvisitsayear.

HfSwasnamed AnalystFirmoftheYearfor2016,alongsideGartnerandForrester,byleadinganalystobserverInfluencerRelations.

Documents

HfS Research Blueprint Report. Digital Marketing Operations 2016