Technology as Strategy

Tom LehmanLehman Associates, LLC

Lehman Reports

thedatabank Users Conference

September, 2013

Lehman Associates, LLC

• Strategy Consulting and Research Firm

• Technology strategy

• Web / Internet / Social Media Strategy

• Customer Satisfaction, Market & Member Research

• The Lehman Reports™ industry research series

• Nonprofit and Supplier Companies

• Founded 1992, Alexandria, VA

• AMS Use and Satisfaction 2006-2013

• AMS International: CA, AU, UK 2010, 2013

• Association Technology Study 2011-2013

• Donor Management Systems, NTEN, 2013

• New Snapshot survey series

Technology Landscape Map

Trends: At a broad level

• Interactivity, not just information access

• Engagement, not just communications

• Community, not just networking

• Mobile, going beyond remote access

• Configurability replacing customization

• Cloud-based, online rather than in-house

• Technology as Strategy, innovation, success

Impact of Enhanced Technology

Customization Example

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Time

CustomCoding

ConfigurationApp

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Evolving Role of Technology

Technology Introductio

n

Technology as Tools

Technology as

Strategy

Investment

Investment

Cost CenterLinear

Exponential

ROI Potential

Innovation Scale

Short Term Fixes

Process Improvement

Transformational

Obama: Technology as Strategy

• Huge investments in big data and analytics, data-driven messaging and targeting

• Predictive analysis, likelihood to vote for Obama, trends in voter preferences, identify at risk voters, continually updated

• Cross-channel integrated marketing• Extensive online presence for key message delivery and

positioning• Social media, mobile campaigns to engage through

experience, convey campaign themes through experience• Highly targeted marketing, campaigns for specific, narrow

segments• Micro-fundraising, adds up, reinforces connections and

engagement

One Indicator

Online Display Ad Impressions (MM)

ContentWebsite

Communication

Email

Collaboration

Social

Interlocking Content Marketing

Highest growth and most effective models are in the overlaps

Both internal and external perspective

Circle of Engagement

Realizing One-to-One Marketing

• Interest driven-marketing, content• Micro-segmentation• Predictive analysis, marketing tools• Dynamic content, deep personalization• Inclusion of behavior-based indicators• Role of crowd sourcing, Kickstarter as

a planning / engagement model • Mass customization < Link >

The Promise of CRM

• Greater knowledge / insight about donors• Alignment between organization goals and

messaging and donor interests / expectations• In-depth understanding of trends, patterns,

and variable interactions• Market segmentation and targeted services• Prediction and forecasting, anticipate needs

and interests• Deeper engagement with constituents

The Promise of Engagement

• Greater understanding of the dynamics of participation and giving

• Increased visibility and awareness

• Retention, loyalty, increased contribution

• Word of mouth, personal fundraising

• Advocacy, show up

• Relevance in the large mix

Limiting FactorsCRM and Engagement

• Data• Analytics• Expertise and Culture

• Engagement Measurement

• CRM Capabilities

CRM Big Data• 360 view of constituents, operations,

marketing, advocacy • Deep data, multi-stream• A driver of integration to capture

increasing levels of digital interactions• Giving / purchase patterns, correlations• Critical for CRM and other functions,

but not actionable in its raw form

Data ChallengeAssociation Example

Exhibits Management

Advanced Reporting / BI

Social Media / Community

e-Learning

Online voting tools

Job boards

Email marketing

Enhanced meeting registration

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Projected adoption within 12 months Currently evaluating

Lehman Reports Association Technology, 2012

Driving deep, two-way integration requirements

Internal Systems Integration

• Donor Management Systems• CRM and data appends /

overlays• Online and Offline Fundraising• Advocacy • Email• Analytics Tools• Website

Analytics

• Turn data into actionable intelligence• Multivariate, longitudinal • Underlying drivers, trends, patterns• Decision information• Advanced reporting, dashboards,

decision systems• Increasingly provided by third-party

services

Advanced Reporting / BI Challenge

Lehman Reports AMS, Association Technology, 2011-2013

Analysis Levels

• Operational – looking back– Counting, one variable over time or other single

measure, basic segmentation– Benchmark current against past, limited straight

line projection• Analytical – looking forward

– Multivariate– Influence of multiple variables, identification of

key levers or inhibitors, advanced segmentation– Predictive analytics, useful for strategy and

planning

Dashboards

Operational Dashboards

Analytical Dashboards

0% 20% 40% 60% 80% 100%

Current use Plans to use Evaluating

Use projected to double within 2 years

Lehman Reports AMS, 2012

Measuring EngagementA form of segmentation

• Scores from CRM, social media, other applications

• In-house scoring / measurement scales• Separating meaningful indicators from a

multitude of activities is challenging• Weighting activities• Frequent topic of conversation, subset have

begun the process• Fewer understand the commitment involved• Potential payoff is high, however

Status: Measuring Engagement

26%

48%

26%

Engagement Measurement Status

Using some type of scoring

Taking about this, no action as yet

Not a topic for us

Lehman Reports Snapshot 2013

Challenging, Early Stage

Big Data in Commercial Firms

Only one quarter collecting the data required

While fewer than half of those say they have sufficient resources to make use of it

Expertise

Culture

Commitment

Mobile

Another channel of access …

…. Or something more?

Mobile Internet

Tablet as Primary Computer

Business Insider Survey, 2012

The Multi-device Connected Segment

More than another Internet device

• Significant differences in access models, User scenarios• More transactional, bursts rather than sessions

• More immediate with more explicit triggers

• Overlay of location and time

• Takes place in the midst of multi-tasking

• Tablets and phones offer different access models

• iOS vs Android – different segments for online use

• Marketing / promotion models change

• Apps as browser replacements. apps versus HTML5

• Mobile First strategy worth considering

Technology as Strategy• Alignment – goals driving technology• Forward focus, what is possible• 360 donor view, in-depth knowledge• Greater personalization, one-to-one marketing• Integrated content, high value in the overlaps• Strategic investment vs. cost center• Organization outcomes, not IT results• Advanced management reporting / BI• Changing role for the CIO and IT

Technology-independent IT Strategy Planning

• Resilient to rapid tech changes

• Flexibility to adopt new models / tech

• Importance of adoption cycles in technology decisions

• Investment in platform, direction, capacity – positions for future needs

SpecificTechnology

All organizations should have a strategic IT plan, a vision and framework to guide technology

investment

Changing Role of ITMore about

– Being a strategic resource to help leverage technology to achieve organization mission and goals

– Management of the tech environment and providers– Big data, analytics, application integration– Technology education of possibilities, opportunities– A focus on outcomes, contributions

Less about– Operating technology– Purely reactive support function– Application training– Focus on input and activities

New opportunities for IT to be involved at a strategy level

Questions and Discussion

Tom Lehman

President

Lehman Associates, LLC / Lehman Reports

Alexandria, VA

703-373-7550

Tom@LehmanConsulting.com

www.LehmanConsulting.comwww.lehmanreports.com