In my last post I outlined the research we just finished on digital transformation. Today I'd like to highlight the key takeaways for CIOs.
CIOs are destined to play a pivotal leadership role in the transformation of business to a digital business. The nature of business is changing and, in turn, the technology investment priorities of the past must change. The report - Unleash Your Digital Business - describes the dynamic ecosystems of value that drive customer behaviors and transform the linear value chain into a dynamic network supported by open APIs. CIOs must partner with CMOs to drive the business transformation needed to become a digital business. To survive, your business will need to embrace digital customer experiences within ecosystems of value, and digital operational excellence to drive the agility and innovation required to survive and thrive in the age of the customer.
Digital Is More Than A Bolt-on Strategy
Bolt-on digital is like painting go-fast stripes on a car; it doesn’t change the underlying business. To become a digital business requires fundamental enterprise transformation; something CIOs are accustomed to leading and shaping. The partnership with the CMO must be extended to create operational excellence through digital technology, augmenting customer value with digital products and services and driving rapid innovation across the business.
Dynamic Ecosystems Of Value Drive The Ability To Win Serve and Retain Customers
Your company is likely to face an extinction event in the next 10 years. And while you may see it coming, you may not have enough time to save your company.
Business leaders don't think of digital as central to their business because in the past, it hasn't been. But now your customers, your products, your business operations, and your competitors are fundamentally digital. While 74% of business executives say their company has a digital strategy, only 15% believe that their company has the skills and capabilities to execute on that strategy (see figure). These are just some of the findings from our latest research (Forrester clients click here).
For the past few years, companies have been bolting “digital” onto their existing business like teens paint go-fast stripes onto their cars. “Look, we’re digital” is the message CEOs want to send to investors. But the piecemeal strategy of bolting digital channels or methods onto the business is no longer sufficient. Instead, you must think of your company as part of a dynamic ecosystem of value that connects digital resources inside and outside the company to create value for customers. To do this, you must fully harness digital technologies, both to deliver a superior customer experience and to drive the agility and operational efficiency you need to stay competitive.
The agency world is going through a teething stage, as agencies mature from the cooing softness of being social or mobile specialists, nurtured by large adoptive holding-company parents, and develop into more complex and thoughtful entities. I recently wrote a report (see the blog post about it here) that lays out the ways in which digital agencies, creative and media agencies, and large technology developers will align. Now I am on the hunt for an insightful, analytical, and objective opinion leader to take on the role of establishing, analyzing, and evangelizing the role of agencies as they evolve in this new era.
The role, like other Forrester analyst roles, is one-part analysis, one-part writing, and one-part speaking. The person who fills this slot at Forrester will be able to engage the CMO of a large CPG firm, the CEO of a large agency, and the leadership team of large integration firms, without skipping a beat. You’ll need to be a great writer to get your story clear and distributable and be able to assess the core elements of what makes an agency and a client work well together.
If you like to think deeply, write clearly, and then roll up your story into an executive discussion, send me your resume, or apply here.
Next month will mark the (gulp) 20th year of my tenure in "digital strategy." I started working on projects back in 1994 using Mozilla, Usenet, and WebCrawler as my guides. The World (its 2006 website is still live at www.std.com) was my ISP. We were still more attentive to CD-ROMs than graphical websites. Hair was still on my head, my dogs were not yet born, and my career was still developing. It was also 20 years ago, in 1994, that the first web design agencies — what became USWeb, Agency.com, and others — started to emerge.
I mention this anniversary, because, like other industries that evolve quickly, the concept of a "digital agency" has become somewhat of an anachronism, if not categorized properly. Specialized agencies that deliver digital capabilities are common, as are the digital or interactive practices within tradition creative, media, and consulting firms. Because of this new and more complicated mix of participants, marketers have shifted their agency relationships to more project based work, at more types of agencies, and with less long term commitment to any one firm.
Update: The following post was written prior to today's shocking events at the Boston Marathon. All of Forrester sends out thoughts, prayers, and well-wishes to the runners, spectators, and their families affected by this senseless violence. — Cory
Today is just tax day to most of the US, but here in Boston, it's much more likely to be referred to as marathon Monday. Indeed, thousands of runners and wheelchair athletes are currently moving toward the finish line in the 117th running of one of the world's most famous and popular races: the Boston Marathon. For some, the goal is just to finish, while others are out to set personal records. And all have been training with a regimented, well-planned routine for months in anticipation of the big day. Marketers should take a page out of the marathoner's playbook when it comes to making the switch to the customer life cycle, a customer-driven marketing approach that will help your organization succeed in the age of the customer. CMOs in particular have the responsibility of transitioning marketing to a customer-first philosophy, and my latest report, "Evaluate The Completeness Of Your Marketing Effort," will help you get there (subscription required).
If you’ve turned on reality television lately (and I’m sorry if you have), you have seen a lot of overconfident folks who think highly of their ability to cook, sing, model, dance -- whatever -- when in actual fact most of them stink. The spectacle of these shows comes from watching to see if these people ever accept the painful gap between their perceived and actual abilities.
From data we have just published today in a new Forrester report, Assess Your Digital Disruption Readiness Now (client access required), it turns out that digital disruption is like reality TV in at least this one way: There is a significant, even painful, gap between how ready some executives think they are to engage in digital disruption and the actual readiness of the enterprise.
This disparity rears its ugly head at a crucial time. As Forrester principal analyst James McQuivey has recently written in his book Digital Disruption, digital disruption is about to completely change how companies do business. Digital tools and digital platforms are driving the cost of innovation down to nearly zero, causing at least 10 times as many innovators to rush into your market while operating at one-tenth the cost that you do. Multiply that together and you face 100 times the innovation power you did just a few years ago under old-fashioned disruption (see figure).
"Hello, I'm Laura Ramos, and I write for chief marketing officers."
That's the standard line around here. It'll take a little gettting used to saying it. Heck, I still find myself saying "Xerox" instead of "Forrester" from time to time, but I hope to get out of that habit soon.
Luckily, I won't have to break my habit of thinking and writing about the issues that face large companies that sell highly-considered products and services to other businesses through a direct sales force or channel partners. I've always been a business-to-business (B2B) girl, and I'll stick to that focus here at Forrester.
When you put the word “sales” and “enablement” together – it sure can mean a lot of different things – to a lot of different people.
As the Research Director on Forrester’s Sales Enablement team – it’s a problem I see every day.
What’s entertaining about this (or aggravating, if you are a sales enablement professional inside a large company) is that not only do many people view those two combined words differently – many of those people are extremely confident their own perspective is the right one. Given what we publish, the number of presentations we give, all of the cross-functional group settings we run into – you might imagine we’ve heard our fair share of strong opinions.
Here are a few highlights of my favorite “certainties:”
· Sales enablement is just lipstick on a knowledge management pig.
· Sales enablement is the new label for sales training.
· Product marketers have been enabling sellers for years, what’s the big deal?
· Sales people should be enabling themselves with all of the resources we provide them.
· Marketing should own sales enablement, because it is clearly a content issue, and the sales force doesn’t have access to good content.