A primer on the changing role of the CIO in large organizations, with the intersection of what the new CMO is and will continue to face as challenges

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CONFIDENTIAL
ARTHUR TISI
ArthurTisi@gmail.com
January , 2013

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4. CMOs spend will grow year over year spending from
5% of Gross Revenue to close to 7% by 2014
GARTNER 2012
CIO spending will Shrink year over year spending from
3.5% of Gross Revenue to about 3% by 2014
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GARTNER 2012

5. Doesn’t care which vendor’s name is on hardware
Wants solutions that solve problems & is willing to Pilot
Hates long “ERP-like” projects
™
The balance between tradition and innovation brings on
The rise of
The Chief Marketing Technology Officer 5

6. CIO/CMO Crossroads
Both recognize need to invest in and integrate technology and
analytics to deal with growing complexity
Global
Underpreparedness
Percent of CMOs selecting as “Top 5 Factors” Need for change to deal with data explosion
Percent of CMOs indicating high/significant need
Data explosion 71%
Social media 68% Invest in
73%
technology
Channel & device choices 65%
Integrate
Shifting demographics 63% 69%
insights
Financial constraints 59%
Understand
65%
Decreasing brand loyalty 57% analytics
Emerging markets 56% Rethink
64%
skill mix
ROI accountability 56%
Collaborate
Customer collaboration 56% 52%
with peers
Privacy considerations 55%
Validate
49%
Global outsourcing 54% ROI
Regulatory considerations 50% Address
28%
privacy
Corporate transparency 47%
This slide is courtesy of the IBM Institute for Business Value
©2012
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673 6
IBM Institute for Business Value

7. ROI will be the number one method for
determining marketing success by 2015
Seven most important measures to gauge marketing success
Percent of CMOs selecting success measurements
Marketing ROI 63%
Customer experience 58%
Conversion rate/new customers 48%
Overall sales 45%
Marketing-influenced sales 42%
Revenue per customer 42%
Social media metrics 38%
This slide is courtesy of the IBM Institute for Business Value ©2012
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8. Digital Marketing Current State
Customer Sales Segmentation Promotions
Macro-Segmentation
Customer Item level Delivered to all
(up to 10 segments
Demographics purchase history customers
Customer IDs: Statistical basket All segments are
Phone, Email, analysis Results are hard
targeted
Twitter, to measure
Facebook Competition
analysis
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9. Marketing Needs To Control Data
and the User Experience
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10. New Marketing Playing Field
CMO Consumer Group
Vendor Group
Loyalty All Customers
Program
POS Customer
Social Segment A
(Sales)
Media data Customer
Segment AB
Vendor
Systems
Customer
Segment ABC
3rd Party Market Merchandising
Analytics Data
Social
Media
Internal
Analytical data
Products
and
Services
3rd Party Market Analysis Manufacturer Data
Product Group 10

11. Our Vision of Advanced Marketing
Prescriptive
actions
Anonymous Stochastic Competitors
Segmentation
Customer Customer product offering Social media
optimization
Profile model analysis competitors
analysis
Social Media Anonymous New product
Iterative micro-
Customer basket analysis ideas generated Targeted micro-
segmentation
Profile by customers segments
Customer Sales Competition Segmentation Promotions
Macro-Segmentation
Customer Item level Delivered to all
(up to 10 segments
Demographics purchase history customers
Customer IDs: Statistical basket All segments are
Phone, Email, analysis targeted Results are hard
Twitter, to measure
Facebook Competition
analysis
Result Analysis
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12. Build a transformational model, that will
create an abstract of a customer, including
micro‐segmentation, by analyzing the
similarity of the buying and behavioral
habits, social media data, and other
integrated dataINTRODUCTION
sources.
CMOs are now in Charge!!
™
PRAESCRIPTO LABS INC. 12

13. Arthur Tisi
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