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Driving the soft changes that unlock martech potential

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From the MarTech Conference in San Francisco, California, March 31-April 1, 2015. SESSION: Driving The Soft Changes That Unlock Martech Potential. PRESENTATION: Driving the Soft Changes That Unlock Martech Potential - Given by Patrick Spenner - CEB, Managing Director

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Driving the soft changes that unlock martech potential

  1. 1. Driving the Soft Changes That Unlock Martech Potential CEB Marketing Leadership Council™ 1 Patrick Spenner Managing Director CEB pspenner@executiveboard.com
  2. 2. © 2015 CEB. All rights reserved. MLC1631015SYN LOSING GROUND Digital Savvy, Consumers Versus Marketing Illustrative DigitalSavvy Time Consumers Marketing System Source: CEB analysis. 2
  3. 3. © 2015 CEB. All rights reserved. MLC1631015SYN 2 AGGRESSIVE STEPS Hire digital-savvy talent (specialists and leaders) Boost investment in marketing technologies Establish a digital Center of Excellence Partner with specialist digital agencies Train existing marketers on digital Create a digital “lab” Start Source: CEB analysis. Common Steps Taken to Close the Digital Gap
  4. 4. © 2015 CEB. All rights reserved. MLC1631015SYN FLEETING SPIKES OF RELEVANCEDigitalSavviness Time Consumers Marketing System Source: CEB analysis. 4 How can Marketing break the compromise between relevance and scale?
  5. 5. © 2015 CEB. All rights reserved. MLC1631015SYN “We recently came off a campaign with a big social component. Good news: we demonstrated that social can drive incremental foot traffic. Bad news: the team is completely exhausted. This is not sustainable.” CMO Fortune 1000 Retailer 5
  6. 6. © 2015 CEB. All rights reserved. MLC1631015SYN DigitalSavvy Time Consumers Marketing System Source: CEB analysis. CLUES FROM THE UPSTARTS Upstarts 6
  7. 7. © 2015 CEB. All rights reserved. MLC1631015SYN STRANGE FISH Xiomi’s Marketing Operating System Xiaomi Product Teams Advocates/ Co-Tinkerers General Marketplace Source: Reuters; CEB analysis. 7
  8. 8. © 2015 CEB. All rights reserved. MLC1631015SYN XIAOMI SHOCK Source: Reuters; CEB analysis. $0 $3 $6 $0 $3 $6 $0 $5 0.0 13.7M 0.0 0.0 2010 2010 20102013 2013 2013 20 10 0 1 0 0 0 $5.2B 0 Units Sold (in Millions) Full Time MarketersRevenue (in $$US Billions) 8
  9. 9. © 2015 CEB. All rights reserved. MLC1631015SYN DigitalSavvy Time Consumers Marketing System Source: CEB analysis. GAINING GROUND “System Trailblazer” Brands 9
  10. 10. © 2015 CEB. All rights reserved. MLC1631015SYN COULD THIS… Coca-Cola’s Content 2020 Video ...DRIVE THIS? Marcomm Campaign Impact Time ConsumerReachxImpact Source: CEB analysis. Source: CEB analysis. 10
  11. 11. © 2015 CEB. All rights reserved. MLC1631015SYN SYSTEM CHANGE Planning Structure Comms planning designed for share worthiness and conversation extendability Shared value orientation unlocks greater consumer engagement Potential. Focal Point Ways of Working New content and conversation management structures enable extension of consumer conversations. Iterative, co-creative posture among brand marketers, central marketers, agencies and third parties drives conversation agility. Source: CEB analysis. 11
  12. 12. © 2015 CEB. All rights reserved. MLC1631015SYN FROM SYMPHONIES PLAYED BY ORCHESTRAS… By Ritter Alexa (saját készítésű) [Public domain], via Wikimedia Commons 12
  13. 13. © 2015 CEB. All rights reserved. MLC1631015SYN TO JAZZ PLAYED BY JAZZ BANDS By imatik (http://www.flickr.com/photos/muokis/327908119/) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons 13
  14. 14. © 2015 CEB. All rights reserved. MLC1631015SYN BREAK DOWN THE “ME”, BUILD UP THE “WE” Immersion Program Agenda: Marketer Change Path Start Finish I’m not very comfortable with digital. I’m screwed! At least I’m not alone. I want to change and improve. We can only do this together. Dial up awareness Demonstrate commonality of fears Spark a feeling of need and empowerment Build appreciation for necessity of effective teams Source: General Mills; CEB analysis. 14
  15. 15. © 2015 CEB. All rights reserved. MLC1631015SYN INCUBATE MARKETING SYSTEMS, NOT DIGITAL EXECUTIONS Spectrum of Marketing Innovation Incubators Mondelez’s Fly Garage Nestle’s Digital Acceleration Team “Create unmatched, digitally enabled consumer connections for Mondelez brands.” “Develop and strengthen relationships with consumers online.” “Work differently, accelerate learning, find new paths to growth in a digital world.” General Mills’ Brand Lab Execution “Hot Houses” System Incubators Digital Acceleration Team Source: CEB analysis. Objective 15
  16. 16. © 2015 CEB. All rights reserved. MLC1631015SYN AGENCY Source: General Mills; CEB analysis. BRAND LAB DESIGN PRINCIPLES Resource Constraints Marketing deliberately caps the team’s budget right below the threshold that enables paid media, forcing the team to be creative in discovering new paths of growth. Speed Pass Marketing suspends traditional operational constraints (e.g., limited agency choice set, annual brand planning, IMC campaign planning) to enable a new, agile way of work. Agency Co-Location Partner with a local agency to facilitate collaboration and dramatically reduce turnaround times. 1 2 5 3 4 Low-Risk Brand/Product Marketing chooses to experiment on a brand that is a small part of its portfolio with historically low investment. Core Innovation Team Marketing over-invests in talent, bringing together high- performers capable of both strategy and execution to increase efficiencies and shared learning. 16
  17. 17. © 2015 CEB. All rights reserved. MLC1631015SYN Source: CEB analysis. Start IMC planning with narrative backbones to enable scale through conversation intensity and duration. Anticipate multiple conversation paths and pre- plan responses to enable rapid reaction to steer conversations as they unfold. Create a real-time content capability to enable conversation amplification and extension as narratives unfold. Modern IMC Planning OLD PROCESS, RE-IMAGINED Classic IMC Planning Process Big Idea Touchpoint Channel Planning Touchpoint Channel Planning Dialogue Scenario Planning Liquid Ideas Launch Launch Real-Time Conversation Extension 17
  18. 18. © 2015 CEB. All rights reserved. MLC1631015SYN Product/ Brand A Product/ Brand B Central Functions Consumer Affairs Legal Central Marketing PR/Comms Customer Care Digital CoE Geo A Geo B Geo C STRUCTURE CHANGE INTERTWINED WITH PROCESS CHANGE Realtime Content Studio Components In-House Content Production Capability Content Repository and Playbooks Legal Fast Lane In-the-Moment Content Studio Source: CEB analysis. © Agency BAgency A Conversation Nerve Center 18
  19. 19. © 2015 CEB. All rights reserved. MLC1631015SYN PROOF POINT PERMAFROST BUSTERS Catalyst Project: Analytics Workbench Marketing Technology Capability Roadmap Illustrative Capability 2013 2014 2015 2016 2017 Fast-Cycle Predictive Analytics Content Management Unique Customer Data Integration Source: Dell, Inc.; CEB analysis. Catalyst Project Charter: Analytics Workbench Objective: Enable marketing self-service on customer data structure management and modeling Opportunity: Estimated at near term $50M; long term $500M Funding: Marketing and IT split funding 50/50 Staffing: Co-staffed, with Marketing contributing 2-3 personnel and IT contributing 2-3 personnel Scope: Small, defined set of initial analytics use cases (to be expanded later) Timeline: 3 months (run according to agile methodology) 19
  20. 20. © 2015 CEB. All rights reserved. MLC1631015SYN PROOF IN THE PUDDING Pre- Workbench Post- Workbench 5–10 days 16 min Source: Dell, Inc.; CEB analysis.Source: Dell, Inc.; CEB analysis. 3–6 Months Instantaneous Pre- Workbench Post- Workbench Months Days 6 3 0 10 5 0 Average Model Updating Time, Pre Versus Post- Workbench “Through this partnership, we have created an approach that is more agile, responsive, and at the end of the day, that delivers better solutions for the business and enables a better experience for our customers.” Brian Hovey Executive Director, Global Commercial Marketing Operations Dell Data Latency, Pre Versus Post-Workbench 20
  21. 21. © 2015 CEB. All rights reserved. MLC1631015SYN SELF-TEST: ARE YOU TRYING TO PLAY JAZZ WITH AN ORCHESTRA? …teaching marketers how to use new technology in hopes of behavioral change? 21 Marketer Behavior Change …surfacing mental/attitudinal hangups preventing behavioral change? …training individuals to play their part in a symphony? …training teams to play jazz?Marketer Training …“hot-housing” innovative digital executions? …incubating new marketing systems? Digital Incubation …bolting on new digital silos with their own new processes? …creating structure/process tentacles that bust old silos and replace old process? Structure/ Process …investing in martech projects that unwittingly create more Marketing-IT handoffs? …investing in martech projects designed to remove Marketing-IT handoffs? Martech Projects Are you… OR Are you… …trying to play jazz with a symphony orchestra? …re-imagining the marketing system as a jazz band? Overall Approach

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