In this issue:
- In Our Opinion: Who Is Really Capitalizing on Big Data?
- Blog Roundup:
- Blog – Highlights from MMA CEO/CMO Summit – July 14-15, 2014 – Hilton Head, SC
- Special Announcement:
- Harmony Outdoor Brands LLC – CEO, Jim Doyle
- Career Opportunities:
- Chief Lending Officer
- VP, Digital Marketing – Global Financial Services
- Article:
- Data-Driven Marketing Is The New Imperative – by Lorraine Barber-Miller
In Our Opinion by Jeff Gundersen & Lola White
Who Is Really Capitalizing on Big Data?
We had an abundance of replies to June’s article and we were offered a speaking engagement, so we decided to take this month and create a follow-on to the article in last month’s ezine, “Where is Big Data Heading?“
So much is being written about Big Data, the Cloud, and the need for top global advertisers to create a Chief Data Officer position to create new business, services and revenue/profit opportunities, and this is done by making data a key strategic business priority.
Making Data a Key Strategic Priority
If this is not on your agenda presently, it will swiftly become an even hotter C-suite agenda topic given this week’s Apple and IBM news. The announcement to form a joint venture to develop 100 new apps for iPhone and Tablet users leveraging IBM’s enterprise data analytics capabilities…brings big data into more actionable decision making by business leaders.
How many of the top 100 global advertisers/marketers are ready for this move?
Still, how many companies are ready to move forward with an enterprise-wide big data initiative? Where are you in the process?
We think Thomas C. Redman hit it straight on in his HBR Blog when he said, “A company only needs a Chief Data Officer when it’s ready to fully consider how it wishes to compete with data over the long term and start to build the organizational capabilities to do so. You need to charge the CDO with fully exploring what it means to compete with data. To gain some real end-to-end experience – perhaps make a concerted effort to try out advanced analytics in the hiring process, improve content in financial reporting, bring more data to decisions made by the senior team, and improve the quality of data used in marketing.”
Only approx. 25% of Fortune 100 companies have established a CDO role.
Following the recent MIT Chief Data Officer Forum, Randy Bean, CEO of consultancy NewVantage Partners, wrote the summary article entitled “Chief Data Officers Blaze Uncharted Corporate Frontier.” In this article, Professor Yang Lee of Northeastern indicates, “The roles of CDOs are diverse and evolving. Traditional data practices were led by middle managers lacking executive collaboration. The emerging CDO practices are executive-led, accountable, and sustainable.” However, this is only a trend emerging in the past 3-4 years, and only approx. 25% of Fortune 100 companies have established a CDO role at the executive level.
Cutting across the entire business and IT ecosystem
Derek Strauss, CDO at TD Ameritrade, says he “has peer relationships” with the CIO, CTO, Head of Applications Development, as well as various business functions and operating units. This enables him to implement an enterprise data and analytics program that cuts across the entire business and IT ecosystem.
Venkat Varadachary, CDO at American Express, echoed Strauss’ observations. “The CDO at American Express provides leadership and governance across the organization to continually nurture, enhance, and fully leverage our data assets in order to drive value for our customers. This role reports to the Chief Risk Officer and also has accountability to a broader set of senior leaders in the company.”
Data is an Enterprise Asset
As Randy Bean reports, terms used by CDOs to characterize their roles include “ambassador,” “reporter,” “experimenter,” and “coordinator.” The complexity of the CDO role is underscored by the recognition that data is an enterprise asset that crosses all lines of business and corporate functions. These terms underscore CDOs as “evangelists” helping business heads to think and approach data in fundamentally new ways. “I sometimes say CDO stands for Chief Diplomacy Officer,” says Jennifer Ippolitti, CDO for Raymond James Financial. “The CDO functions as a conduit among business, technology, and operations to ensure that the solutions we build are aligned with business strategies.”
The evolution and early stage of the CDO role are underscored by preliminary data gathered by Professor Lee which shows – 65% of CDO positions have only been established within the past 3 years; 64% of CDOs report to a business executive – CEO, COO, CRO or CMO; 36% of CDOs report to a technology executive – CIO or CTO.
“Democratization of Big Data involves ensuring transparency and access to data, but also a cultural transformation for our people to embed data in their daily thinking,” said Venkat Varadachary from American Express. And this is from a leading credit card organization with a rich history of database management, huge credit and purchase information on customers, and a heritage of direct and database marketing as part of their corporate culture.
What about consumer banks and other financial services organizations which are not already as committed to using data as a primary business asset? Who will bear the cost and be the executive sponsor for these initiatives and the corresponding investments?
Key challenges include:
- System limitations – Most large companies are still burdened by cumbersome, legacy information systems which are not integrated and do not speak to each other…sorting this out is a major technological challenge for any Chief Data Officer and it takes the ability to operate at the highest levels of the corporate ecosystem to define opportunities and changes.
- Organizational Boundaries – For the most part, each division of large companies operate independently, and corralling them to comply with an enterprise-wide Big Data initiative will be very challenging. Most divisional CEOs will resist making the investment unless this is mandated by the corporate CEO. That is why 65% of CDO positions report to a C-suite executive.
- Financial/Capital Investment – Who bears the cost of changing technology systems and priorities and building the new technology platforms for leveraging Big Data on a real-time basis? Most operating companies within a large holding company structure will not share in this investment since it adversely impacts the bottom line in the short-term. It is clear the mandate and executive sponsorship has to come from the CEO and financial resources need to be mandated by the CEO/CFO at the corporate level.
The MIT CDO Forum called the CDO a pioneer position. “Charting the uncharted corporate frontier, CDOs are 21st century ‘pathfinders’ forging the information and enterprise data frontier. Westward ho!”
Bottom Line: Clearly, with customers in control, it’s increasingly imperative for Fortune 100 companies to utilize data in increasingly smarter ways to offer exceptional customer engagement and experience at every touch point.
Where is your company on the uncharted corporate frontier? Have you created a CDO position or are you still considering this initiative?
We want to know
As always, we value and appreciate you feedback! Connect with us — we want to hear your experiences and opinions.
Lola and Jeff
BLOG Roundup: Did you catch our recent blog posts?
Highlights from MMA CEO/CMO Summit – July 14-15, 2014 – Hilton Head, SC
Lola and I attended the 2014 MMA CEO/CMO Summit this week in Hilton Head, SC which included a keynote address by John Costello, President – Marketing & Innovation, Dunkin’ Brands. John is also Global Chairman of MMA and his perspective included “We are seeing what will be the most profound change in marketing and e-commerce through mobile.” This is why approx. 150-200 people attended including senior marketers from American Express, Campbell’s, Chase, Coca-Cola, Cosi, GM, Heineken, Hilton, P&G, Perry Ellis, Reckitt Bensicker, and Sears.
Jeff Hasen was one of 60-70 CMOs in attendance and his conference highlights are below.
Special Announcement
Harmony Outdoor Brands LLC – CEO, Jim Doyle
Executive Connections LLC is now pleased to announce Jim Doyle has joined Harmony Outdoor Brands LLC as CEO effective June 30, 2014.
Prior to accepting this new CEO role, Jim was Chief Marketing Officer & GM, Garden at Central Garden & Pet where he led the transformation of the $800M+ Garden business with P&L responsibility. Central is the second largest Lawn & Garden business and Jim consolidated 10+ acquisitions moving from a siloed Sales & Operations approach to a centralized, integrated, consumer-centric CPG model.
Prior to Central, Jim was SVP, Marketing & GM at Evercare and earlier he was VP/GM of Remington Products which was sold successfully to Spectrum Brands. As part of the sale to Spectrum, Jim relocated the business successfully from Bridgeport, CT to Madison, WI rebuilding the organization in the process.
Jeff Gundersen and Lola White of Executive Connections LLC led this exclusive retained search for Harmony Outdoor Brands LLC. EC will continue to provide support to Jim Doyle in his transition into the Harmony CEO role by providing Jim our unique, Blended Solutions approach for one year of confidential career transition support.
Career Opportunities
Chief Lending Officer
VP, Digital Marketing – Global Financial Services
Guest Author
Data-Driven Marketing Is The New Imperative — by Lorraine Barber-Miller
Marketers have always had the mission for building brands, creating demand, advancing sales and helping their companies earn customers’ loyalty. In the past decade, how marketers engage customers and what they do to drive advocacy has changed almost beyond recognition. Strategies based on intuition and engagement techniques that were once cutting-edge are fast becoming obsolete, with new methods emerging every day.
Read Complete Article… Data-Driven Marketing Is The New Imperative
About the Author: Lorraine Barber-Miller is an accomplished international sales, marketing and communications leader. Passionate about the customer experience, advancing the art and science of marketing, and establishing new businesses in global growth markets, Lorraine spans the globe evangelizing on modern marketing practices. (See Lorraine’s complete bio at end of article.)
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