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Divide Between CMOs and CIOs Narrows, but Companies Still Struggle To Deliver Integrated Digital Marketing Solutions, New Accenture Research Shows

July 22, 2014
Divide Between CMOs and CIOs Narrows, but Companies Still Struggle
To Deliver Integrated Digital Marketing Solutions, New Accenture Research Shows
 
NEW YORK; July 22, 2014 – Chief marketing officers (CMOs) and chief information officers (CIOs) say they are working more collaboratively than in the past to take advantage of digital opportunities, but they remain at odds on a number of issues involving how to drive integrated digital marketing solutions for their customers, according to a new study by Accenture (NYSE: ACN). 
 
The study, Cutting Across the CMO-CIO Divide, which was conducted by Accenture Interactive, is based on a survey of more than 1,100 senior marketing and IT executives around the globe. A key report finding indicates a growing collaboration between CMOs and CIOs – 43 percent of marketers and 50 percent of IT leaders think their relationship with the other has improved over the past year. Also, nearly one-quarter (23 percent) of respondents believe collaboration between the two teams is currently at the right level, up substantially from last year’s CMO-CIO Insights survey that stated only one in 10 respondents felt collaboration was at the right level.
 
Even though the marketing and information technology teams appear to be working more closely together, the survey highlights many challenges still facing the two groups that can impact a positive experience for customers and the company’s bottom line. 
 
“All members of the C-suite, particularly CMOs and CIOs, understand the need to collaborate as they transform their businesses into digital businesses,” said Mike Sutcliff, group chief executive, Accenture Digital. “But in order to ensure the success of digital marketing campaigns, and the company’s overall digital strategy, the marketing and IT functions must realize that digital is driving a new wave of collaboration as marketing becomes increasingly enabled by technology.” 
 
Agreement on marketing IT, while other conflicts increase
According to the report, marketing and IT departments are aligned on the importance of marketing IT as more than half of respondents rank it at or near the top of their priority lists (52 percent and 53 percent respectively). Both parties also agree on the top five marketing IT priorities: customer experience, customer analytics, social media, corporate website, and other web development. 
 
While this alignment exists, other challenges persist. For example, 40 percent of CMOs believe their company’s IT team does not understand the urgency of integrating new data sources into campaigns to address market conditions – an increase of six percentage points from last year’s survey. Additionally, 43 percent of CMOs now say that the technology development process is too slow for the speed required for digital marketing, compared to 36 percent who held that view a year ago.
 
For their part, CIOs are increasingly frustrated by shifting goals and a perceived lack of vision from their marketing counterparts. More than four out of 10 (43 percent) of IT executives said that marketing requirements and priorities change too often for them to keep up, an increase of three percentage points from last year’s survey. Also, one out of four CIOs (25 percent) now believe that CMOs lack the vision to anticipate new digital channels, compared to just 11 percent who expressed that view last year.
 
“Getting this relationship right is critical for delivering seamless, omni-channel experiences for customers,” said Brian Whipple, senior managing director of Accenture Interactive. “The CMO needs to develop a vision and strategy for how customers experience the brand while the CIO needs to deliver the tools and technology to bring those experiences and campaigns to life. Together, they need combined processes and perhaps even organizations to make this happen. If one works without the other in a silo, customers will feel the impact and switch brands.”
 
Execution and multi-channel obstacles
More than half (54 percent) of CMOs and nearly two-thirds (64 percent) of CIOs report they are prepared to pursue digital marketing opportunities, but they also believe they face significant challenges in executing on their strategies. More than two out of five of all respondents (44 percent) said they have encountered problems in implementing marketing solutions or IT projects that further marketing effectiveness, up from 36 percent who reported problems a year ago. For CIOs, that figure rises to 45 percent (an increase of nine percentage points from last year), and for CMOs, it jumps to 42 percent (an increase of six percentage points from last year).
 
In addition, senior marketers and IT leaders alike are struggling to get the multi-channel experience right, as they follow their customers who are using mobile devices more often. More than four out of 10 (42 percent) of CIOs and CMOs say that technology is siloed and too cumbersome, which makes it difficult for them to craft cross-channel experiences for their customers, and this figure represents an increase of eight percentage points from last year. Although 43 percent of CIOs believe it is important to develop a consistent and relevant cross-channel experience, 45 percent say the complexity of channel-specific experiences precludes them from being able to provide one platform to manage it.
 
CMOs and CIOs seek talent to drive digital initiatives
 
More and more, top executives in IT and marketing are seeking employees who are cross-trained in marketing and IT. Specifically, they are looking for people with the following backgrounds:
  • Marketing knowledge in IT (43 percent)
  • Customer experience skills (42 percent)
  • Broad business understanding (42 percent)
  • Customer insight skills (40 percent)
Steps to improve digital effectiveness
 
The study suggests four actions CMOs and CIOs should take to strengthen their alignment, pursue customer relevance at scale, and improve business performance:
  • Investing time in establishing a digital vision and collaborating with each other to bring the vision to life
  • Unifying around the customer experience to create a truly digital business
  • Rethinking the operating model to integrate customer-focused skills throughout the company
  • Orienting a marketing model and budget that aligns with a new ecosystem of marketing services
To learn more about Accenture Interactive’s new report and explore the findings through an interactive data visualization workbook, please visit:  Cutting Across the CMO-CIO Divide,
 
Methodology
The 2013/14 CMO-CIO Alignment survey is the fourth in a series of studies sponsored by Accenture and aimed at understanding the options, challenges and points of view on senior marketing and IT executives on the impact of digital strategies and capabilities on their business. Results are based on online surveys with 581 senior marketing executives and 566 senior IT executives. The survey was in the field in December 2013 and January 2014. Respondents were from 11 countries -- United States, Canada, France, Germany, Italy, United Kingdom, Brazil, Australia, China, Japan and Singapore – and 10 industries -- Banking, Insurance (life and property & casualty), Life Sciences (medical products and pharma/biotech), Consumer Goods & Services, Retail, Telecom, Automotive, Electronics & High Tech, Media & Entertainment, and Travel & Tourism. Most companies (90 percent) have at least US$1 billion in annual revenues, and the remaining 10 percent have annual revenues of less than US$1 billion.
 
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 293,000 people serving clients in more than 120 countries.  Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments.  The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013.  Its home page is www.accenture.com.
 
About Accenture Interactive
Accenture Interactive, which is part of Accenture Digital, helps the world’s leading brands delight their customers and drive superior marketing performance across the full multichannel customer experience. As part of Accenture Digital, Accenture Interactive works with over 23,000 Accenture professionals dedicated to serving marketing and digital clients to offer integrated, industrialized and industry-driven digital transformation and marketing services. Follow @AccentureSocial or visit accenture.com/interactive.
 
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Contacts:
Cam Granstra
Accenture
+ 312 693 5992
cameria.l.granstra@accenture.com
 
Kathryn Zbikowski
Accenture
+ 917 452 0127
kathryn.zbikowski@accenture.com
 
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