Tag Archives: IBM

The CMO Dilemma continues: IBM’s 2011 Global CMO Study

IBM recently released “From Stretched to Strengthened: Insights from the Global Chief Marketing Officer Study”.

The executive summary is here. To obtain the full text, go to:  http://www935.ibm.com/services/us/cmo/cmostudy2011/cmo-registration.html .

The most compelling finding is the first: CMO Underpreparedness. Thematically, it fits a number of opinions expressed in the 4ScreensMedia online journal. Data, devices and social/digital media are three of the most challenging areas for a CMO to understand and leverage. This triad, if you will, is characterised by exponential growth, the shortest of product lifecycles and the problematic aspect of measurement.

 

I highly recommend you read the report especially as a marketing professional. Getting a perspective on what’s on the mind of the global CMO is extremely valuable when it comes from a large and respected firm such as IBM.

As much as technologists are shedding light on the marketing function, marketers ought to be doing some listening of their own and thinking like ‘marketing technologists’.

– Ted Morris, 4ScreensMedia

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Data: The New Capital of the Digital Age

Data: The New Green

The Economist recently ran a special report on managing information that prompted some thinking. First, some big numbers from the report: Wal-Mart handles over 1 million sales transactions per hour. Facebook houses some 40 billion photos (after only 4 years of operation). Cisco estimates that Internet traffic will reach 667 exabytes by 2013.

 With some 60 million people on Twitter, according to comScore data (November 2009), there are roughly 10 million tweets a day. This doesn’t account for the content – characters, photos, articles and video content. I also found that YouTube has generated more video content than all of the television networks combined have ever generated. The current upload rate is equivalent to about 100,000 Hollywood movies being made on a monthly basis. Finally, almost 100 trillion e-mails were sent in 2009.  

Bringing this a bit closer to home, consider the number of daily transactions that take place for banking, air travel, credit card processing, phone calls and e-commerce. You end up with some very large numbers indeed. This data also says a lot about how we behave. Most intriguing perhaps is what it can tell us, through the use of complex algorithms, how we might behave at some future point in time – and where new business opportunity may dwell.  

This growth in the information industry is not reflective of recessionary times. It points to a shift in investment, new business models, the laying of new infrastructure (servers, storage, cloud computing, software) and global workforce expansion in business information. It’s also transformational as the CIO’s role is increasingly one of contributing directly to business growth in contrast to the dogmatic notion of keeping the lights on in the boiler rooms of Enterprise Resource Planning and Supply Chain Management.  

It’s the effect of the peta, exa and yottabyte world that is most intriguing. Conventional ways to sense and understand consumer behaviour  will be challenged by the new wave of business analytics. Marketing research is but one example. If predictive analytics can do a better job of identifying which category of SKU’s is trending upward or which meal combo is gaining favour, what will marketing research be used for? Data analytics can also be used to generate new ideas for services, products and as importantly, help companies shed under-performing assets and balance inventories. By implication, there is a clear line of sight to the financial payback as firms like Amazon and Marriott have learned.  

This point from the Economist is worth noting:  

“…all these data are turning the social sciences upside down, he [Sinan Aral, NYU] explains. Researchers are now able to understand human behaviour at the population level rather than the individual level.”  

It’s no wonder Big Tech (IBM, Microsoft, Oracle, SAP etc.) is loading up on search, storage and processing capability. In exchange they will reap new profits from the digital age, largely unnoticed from behind the curtain of social networks and online store fronts.   

– Ted Morris, 4ScreensCRM  

Becoming Customer-Centric: The Social Enterprise

“Time discovers truth”, said the Roman philosopher Seneca 2000 years ago.

With this in mind, it’s been some time since I taught the course “Becoming Customer-Centric” at IBM‘s Advanced Business Institute in Palisades, NY. This was when the Internet was an enabler of e-business and  CRM was in its early days. Social networks did not exist.

So I recently thought of the “Social Enterprise”. Back in Y2K,  CRM was seen as the panacea for companies with a vision to become customer-centric. This is to say, enterprises lead with technology to drive CRM implementation. Other companies adopted the “Outside-In” view, with the customer as focal point, as their approach to delivering optimal business value across every customer touchpoint.

Things are much different now and for the better. Here’s why:

1. The Portable Brand: The web and the world of the customer has given rise to the Open Brand – On-demand, Personal, Engagement and Networking. This does not mean loss of brand control, but instead, new opportunity to deliver flawless customer experiences, across all touchpoints, according to the brand promise. Mobile applications now afford customers to interact with their favourite brands as they are on the move around the physical and virtual worlds, hence the “Portable Brand”.

2. Customer Outsourcing: New opportunties abound, especially in customer service at pennies per transaction. This is especially true for mobile apps at under $0.10 per contact but also of web-based transactions where customers provide instant feedback on the experience. Customers are saying “come into my process” as they exert their new found powers to influence the relationship agenda.

3. The Web as Data Warehouse: The Internet is a vast but unorganized data warehouse of customer experience stories waiting to be mined –  it’s like harvesting bottled water from a huge stream virtually for free; a new era of customer behavioural analytics will re-define the traditional purchase funnel;

4. “Outside-In” rediscovered: Companies can extend their boundaries deep into the customer’s world in a most personal way to the point where the company/customer boundary disappears. This effectively renders the product-led “Inside-out” approach to process design and technology selection obsolete especially for brands that evoke high emotional involvement on the part of the customer;

5.Sense & Respond” is redefined: The Social Web transcends geography therefore providing global brands with a unique opportunity to leverage their footprint in all markets, in real time, always on. Companies are taking on new ways of listening to customers via online monitoring of consumer-generated content, running viral advertising campaigns and engaging cusumers in on-line forums and communities.

Upon further reflection, those days at the Palisades might as well been in Seneca’s time.

– Ted Morris, 4ScreensCRM