I have recently published a report and series of blog posts highlighting CMO tech spending trends in India and what these trends mean to CIOs in the country. In this post, I will touch upon the emerging marketing technology landscape as a result of rising CMO tech budgets that both provide opportunities for and pose threats to CIOs.
Our research shows that nearly 50% of Indian CMOs are in search of new suppliers with specialized technologies and processes to build new digital engagement systems, such as mobile apps, social media applications, or customer loyalty management solutions. The marketing technology landscape is rapidly increasing in complexity, which is having multiple effects (figure below):
Software players are now targeting CMOs’ tech budgets with marketing-savvy offerings. For instance, Adobe, IBM, Oracle, and salesforce.com have invested a total of more than $20 billion in marketing technology M&A over the past three years.
I’ve just published a report on CMO tech spending trends in India and what these trends mean for CIOs in the country. We found that Indian CMOs’ top two business priorities are addressing the rising expectations of customers and acquiring and retaining customers; 87% and 85%, respectively, of those we surveyed indicated that these are a critical or high priority. Interestingly, Indian CMOs’ business priorities echo those of Indian CIOs: 87% of Indian CIOs previously surveyed by Forrester cited addressing rising customer expectations as their organization’s top business priority (figure below).
Despite these common goals, our findings reveal that Indian CMOs are driving their own tech agendas by:
Accelerating the growth of their tech budgets. 62% of the Indian CMOs we surveyed plan to increase their technology budget in 2014, whereas just 41% of them actually managed to do so in 2013.
Establishing their own technology departments. Forrester estimates that 30% to 40% of CMOs in India have no working relationship with their CIOs. About 40% of marketing leaders are gravitating toward establishing a technology department within marketing.
Getting more involved in planning sourcing strategy and selecting marketing technology vendors. About half of the surveyed CMOs get involved in setting the overall sourcing strategy, aggregating demand for technology products or services, and selecting vendors to meet their requirements.
I just published a report on CMO tech spending trends in India and what these trends mean for CIOs in the country. For this report, we surveyed 101 CMOs in India to understand business and marketing priorities, marketing spending on technology, key tech management challenges, and how digital engagement is shaping marketing technology trends in the country. Key highlights from the report:
The age of the customer demands that CMOs become customer-obsessed leaders. Indian CMOs’ top two business priorities are addressing the rising expectations of customers and acquiring and retaining customers; 87% and 85%, respectively, of those we surveyed indicated that these are a critical or high priority. Focusing on customers is not new for CMOs; what has changed is the pace at which customer expectations are rising.
CMOs are responding by driving their own tech agendas. Today’s customers want faster and better service — and CMOs are looking to technology to make that possible. Sixty-two percent of the Indian CMOs we surveyed plan to increase their technology budget in 2014, whereas just 41% of them actually managed to do so in 2013. About 30% of marketing leaders are gravitating toward establishing a technology department within marketing in order to become self-sufficient. They’re investing in mobile apps, customer analytics, and are looking for new suppliers in winning digital engagement strategy.
Forrester just published its “India Tech Market Outlook: 2014” report; here’s a summary. We expect the Indian economy to start recovering from the tough situation it faced in 2013. It will start picking up (albeit at a slower rate) in 2014 thanks to good monsoons, an uptick in exports due to the weakening of the rupee, and huge infrastructure projects in public transportation, housing, agriculture, and farming that we expect to take off once a new central government is in place. As a result, we’ve marginally increased our 2014 forecast from 7.4% to 8% in local currency. But the biggest threat to India’s economic outlook is political instability after the national elections, which could have a long-term economic impact.
The three most important highlights from the report:
Customer obsession will take center stage for technology spending. The increasing demands of digital customers are redefining business. Recent Forrsights data indicates that Indian CIOs’ top business priority is to address the rising expectations of customers and improve customer satisfaction; 87% consider it a high or critical priority. Business leaders want to leverage technology to better engage digitally enabled constituents, fundamentally shifting how firms interact with customers.