Digital Marketing Transit Map: CMOs will spend more on IT than CIOs by 2017
Digital Marketing Battlefield Map: CMO Vs. CIO And Gartner Vs. Forrester
It’s an interactive “transit map” (see the original version here) which connects the major categories of digital marketing (practice areas or “neighborhoods” such as marketing operations, mobility, and design) through sub-categories (applications services or “tracks” such as advertising technology, analytics, commerce, marketing management and real-time data), and sub-sub categories (“stations” representing products or platforms/solutions or off-line connections). The intersection points on this map, Gartner says, represent “transfer points where solutions may serve more than one business area.”
Phew. This embarrassment of digital riches also represents the numerous vendors trying to establish a beachhead or expanding an existing relationships with marketing departments and their chiefs—CMOs—that Gartner predicted last year will spend more on IT than CIOs by 2017. Laura McLellan, the Gartner analyst responsible for the forecast heralding the war of the CXOs, still insists that marketing departments will outspend technology departments on IT within five years, noting that 65% of CMOs have their own capital budgets. Marketing departments, she tells CIO Journal, are “not getting what they want” from IT and, as a result, “they spend their own money to buy the applications and services they need to run their operations.” Given the different types of personalities and cultures of the combatants, IT is doomed to be “disintermediated,” McLellan concludes.
Forrester Research analyst Peter Burris begs to differ, however, no doubt to the relief of many CIOs. By his calculations—“simple math on existing IT systems” as reported by CIO Journal— “70% of IT spending is on maintaining and upgrading existing systems. That leaves only 30% for new systems; even if the entire balance of that were allocated to marketing, it would be a very long time before spending on new systems would overtake spending on legacy systems.”
But isn’t the Gartner forecast about spending outside “existing IT systems,” not about IT spending on “new systems”?
A more convincing air cover to the supposedly embattled CIOs comes from another Forrester analyst, Sheryl Pattek (she “serves CMOs” as opposed to Burris who “serves CIOs,” according to Forrester). She still sees the need to convince CMOs that they “must accept that it’s no longer possible to run the business of marketing without technology.” Referring to a previous attempt tochart the digital marketing landscape by blogger Scott Brinker, Pattek says: “With this much complexity, it’s no surprise that many CMOs are ill-equipped to provide the vision and strategic direction required to make sound and effective marketing technology purchase decisions.” And She warns CMOs: “You and your CIO need to have alignment on a joint vision for customers and a focus on them. Those CMOs who choose to ignore this and go it alone do so at their own peril.”
Brinker offers similar advice: “Collaborate with the CIO to leverage the company’s existing capabilities to the fullest degree, to coordinate integration with other technology initiatives in the company, and to find that right sweet spot of division of responsibilities between marketing and IT (which will vary from one organization to the next).”
I think the looming war is all a made-up tempest in the digital deluge. All corners of the organization, not just marketing, are impacted by the data avalanche and all activities, from engineering to manufacturing to sales and will continue to be re-shaped by digitization. The CIO, unlike the CMO and most other senior executives, has a comprehensive view of the entire organization. In organizations where the CIO is expected only to cut costs and “keep the trains running on time,” the responsibility—and purchasing authority—for the tools enabling the digital transformation will reside with other senior executives. In organizations where the CIO is expected to play a key role or even lead this digital transformation, he or she will no doubt help the CMO—and other senior executives—navigate the complex and rapidly-changing landscape of all emerging digital technologies and tools.
~ Curated by TME, World of Marketing, July 11, 2013