What Digital Business Key Performance Indicators (KPIs) are you using?

Digital business key performance indicators (KPIs) designed to assess the progress of digital transformation are still not widely used or universally understood — it’s a key critical success factor essential to continued investment. These metrics and analytics should stand alone initially but always tied to the overall corporate strategic initiatives.

what_is_chief_digital_officer-100340171-orig

How would you describe your transformation progress? What set of relevant KPIs specific to the digital business transformation effort are your guidance?

With most enterprises already using a robust set of enterprise KPIs to measure the performance of their business, it may seem superfluous to create yet another set of KPIs. However, as with any large transformation or project, it is helpful to temporarily create transitional KPIs for the duration of the digital business effort. In Digital Business KPIs: Defining and Measuring Success, research firm Gartner sets out to look at how enterprise CEOs, chief digital officers and CIOs must move beyond the transformation stage and set metrics and goals that lay out a true digital business journey. In fact, according to Gartner, CEOs, chief digital officers (CDOs) and CIOs must:

Move beyond the transformation stage and set metrics and goals that lay out the digital business journey.

My experience validates the need to work closely from the outset with each senior business unit executive to quantify the potential economic benefits of digitalization.

Use startup-style metrics for new ventures, acquisitions and business models.

Curated from http://www.consultparagon.com

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Are CMOs The New Owner Of The Data And Technology Around Which Companies Should Organize?

Are CMOs The New Owner Of The Data And Technology Around Which Companies Should Organize?

Thank you Steve Olenski!

5/25/2017

Let’s cut right to the chase here, kids. The answer to the question posed in the title is “largely yes” according to Alicia Hatch, CMO of Deloitte Digital. She cites the 2016 Gartner Spend Survey which found that CMOs had one of the highest technology spends of any C-suite member and is on track to overtake CIOs in 2017.

GML_CMO Tech Spend_Infographic Gartner Marketers 2017

To further support her belief one can point to Forrester’s report C-Suite Tech Purchasing Patterns which predicts that by 2018 about 36% of all marketing technology-related new project spending will be fully controlled by CMOs.

Andrew Bartels, Forrester Research analyst and lead author of the report is quick to point out, however, that while the “growing tech-saaviness of business leaders and the wider availability of cloud solutions does mean that business leaders are playing a bigger role in the front end of this process… the persistence of licensed software, the growing adoption of cloud as a replacement for licensed software, and challenges of implementing and optimizing solutions mean that CIOs and tech management teams still play a dominant role in overall tech purchases by businesses.”

Mix and Match With Hatch

When I spoke with Alicia, in addition to getting her thoughts on CMOs becoming the new owner of the data and technology around which companies should organize, I wanted to picked her brain on a few other topics including recent changes she’s witnessed, what the difference between data-driven and data-informed campaigns is and more.

Steve Olenski: What have been the biggest changes in marketing you’ve seen over the past 6 months?

Alicia Hatch: Marketing leaders across verticals and industries are intensely focused on marketing technology, attempting to build the most perfect stacks for gaining the most precise customer insights. There are higher expectations of CMOs than ever before, and increased pressure to do more with fewer resources.

These shifts have also happened against a backdrop of a bit of digital disillusionment, spurred by brand safety concerns. While marketers work around the clock to ensure their brands are well-regarded via the distribution of consistent, powerful messaging, there is an increased awareness to the fact that brands cannot control every piece of digital content that may influence how a consumer or company views a particular brand. Companies are becoming more cautious when selecting where to run advertisements, for example, knowing that their ad could run alongside an offensive message or one that simply does not align with the character of the brand they represent.

Olenski: I read that you believe the evolution of the CMO has driven the rise of martech. Can you elaborate on that? Why do you believe this is the case?

Hatch: Marketing technology originated from the need for marketers to better understand their customers and create more thoughtful, personalized and simultaneously automated campaigns that help build brand identity.

As the role of CMO has evolved from being a pure brand ambassador to a central growth driver of the business, modern CMOs have become intensely data-driven. We must demonstrate we can be predictable revenue drivers with highly optimized spend. In order to do this, we must architect our marketing technology around critical data flows and not just capabilities. We must create data-driven cultures by designing workflows around these data flows.

To effectively act on these imperatives, the martech industry had to rapidly advance to catch up with the needs of the sophisticated modern CMO. Innovation in predictive analytics is now being driven by the new marketing imperative to not only demonstrate business impact but to continuously optimize it.

Got Customer Experience Strategy? ….Got Right Team?

The Who, What, Where, And Why Of Marketing Technology Groups

Posted by Anjali Yakkundi on May 30, 2013
This post originally appeared on destinationCRM.

We’ve heard a lot in the past year about the future role of marketing technologists as solvers of the “IT/marketing clash of the titans” (as one Forrester client put it to me recently). These technologists are more than just your basic webmasters. Instead, they are professionals with deep knowledge of how technology can deliver on marketing strategies in order to bring about better digital customer experiences. At Forrester, we’ve started to see an emerging trend of shared services groups whose goal is to bridge the marketing technology divide. Our latest research found that organizations have turned to this model — which we call the marketing technology group — to foster tighter integration between IT and marketing and between strategy/design professionals and technologists. Defining characteristics include:

Who? These groups tend to be made up of a diverse lot of professionals, but in general are staffed by a combination of marketing strategists, creative design professionals, and technologists with design and business savvy. We found some of the most sought-after technologists were mobile- and data-literate developers and higher-ranking IT leaders, like enterprise architects, who can coordinate an ever-growing number of digital experience technologies (e.g. CRM, Web content management, commerce platforms, analytics, etc.). The key is to give these groups direct tie-in to C-level executives. As a vice president of strategy at a digital agency told us, “The problem with shared services is that too often it’s staffed by only powerless workers.”
What? A digital experience leader at a multinational organization using this model described it as a “digital innovation team.” Others we interviewed described these shared services groups as “internal digital agencies.” Much like an agency, these groups are responsible for providing various business units with a host of services to improve marketing and digital customer experience initiatives. This includes (among other things) strategic support, design and creative services, and technology support.
Where? These groups are still emerging, and most organizations we speak to prefer to play it safe with a central or decentralized IT approach. We’ve seen the most innovation coming from retail and consumer packaged goods organizations, but that doesn’t mean we haven’t seen it from others as well. We interviewed a few key decision makers from financial services and healthcare organizations who are looking to move to this shared services approach.
Why? This approach has many benefits, including the tight integration between creative professionals and technologists, allowing the gap to close between design and the delivery of that design. Firms also achieve agile processes more easily with marketing and IT professionals working under one umbrella. The downside? This approach can be slow. A vice president of digital marketing at a financial services organization said: “In my shared service model, someone ends up waiting.” Organizations with multiple brands also worry that a shared service approach limits the brand differences and makes each one look too similar; better governance and brand guidelines can mitigate this risk.

So what’s the future of marketing technology groups? We expect that this trend will continue to grow as more organizations see the appeal of the “internal digital agency.” This doesn’t mean it will take over central IT groups; instead, we expect many organizations to use shared services groups to supplement existing IT groups.

Our recent reports dive into roles and organizational structures, as well as data around this emerging group. Do you have a shared marketing technology group or have you begun to move to this model? Tell us about your case studies in the comments area below.