Friday | 9 January, 2009
CIO
A New Focus: The Innovation Imperative
When asked: What impact do you expect IT to have in 2006? CIOs ranked improved external customer satisfaction second, after reduced business costs through efficiency and increased productivity
Sue Bushell 08 March, 2006 11:55:00

That Peter gets things done as the CIO and is meeting the VP marketing's needs is good news, Spanyi says. The not so good news is the VP marketing often has no idea what Peter is talking about. That is an issue of culture and language. And it is an area where CIOs, while paying lip-service to the notion of talking the language of the business, are still badly falling down, he says.

CIOs should be aligning their IT projects with a list of priorities that are most important to the business, he says.

"As opposed to the IT shop coming up with their own so-called strategy, which may or may not coincide with what's important to the business in a given quarter or half year or year, there should be a more tight linkage between the IT project list and what's important to the business. I don't know how many times I've heard from the people I've interviewed that one of the frustrations they have is that they do an improvement project of some kind and they involve IT and then halfway through the project, people come to them and say: 'We're really sorry, but the technology part of this project didn't make our top 10, so it will be next year'. If I had a buck for every time I heard that I would be a rich man," Spanyi says.

Weigh-In

SIDEBAR: Why CIOs and CMOs Need Each Other

The proliferation of service channels demands that the heads of IT and marketing work together.

By Jeffrey Rayport

We all know the story: You see an item in a chain store catalogue but decide to buy it from the retail store to avoid delivery charges. The retail store assistant, however, cannot find the item and, after consulting the store's product database, tells you it's no longer available. At home you turn on your PC, find the store's Web site, and miraculously locate the product. You order it, but now must wait for delivery. You get the result, but not in the way or the time frame you wanted.

Similarly, you dial your credit card issuer, an automated voice-response system answers, and asks that you enter your card number. You dutifully punch in the 15 digits. After a lengthy wait during which you listen to a repetitive recording about how much the company values your business, a live customer service representative finally comes on the line and asks for your 15-digit account number. You tell her you already entered it. She tells you the system did not forward the information. You get the result, but again, not in the way or the time frame you wanted.

So where does the problem lie? Is this a marketing issue for the CMO or a technology issue for the CIO? Of course the answer is: both.

Indeed, every time you see significant dysfunction in the way a company or brand interacts with its customers, it is not the fault of one corporate function but two - both marketing and technology. The combination of people and technology deployed across multiple service channels fails to provide the basic services you sought, let alone the worldclass services you expected.

So when will CIOs and CMOs join forces to address these challenges, not from their well-defended functional silos but together? The answer: when both parties take time to fully understand and account for the impact their solutions will have on the consumer.

Slumping Satisfaction, Rising Costs

The pressure is mounting for action. The irony is that companies have gone to heroic lengths and considerable expense to build multiple service channels to meet customers' needs. These range from retail stores to catalogues, Web sites, call centres, interactive voice-response units, handheld PDAs and touchscreen kiosks, to name a few. In response, however, customers have grown increasingly frustrated by the lack of coordination and consistency of experience across these touch points.

Every Web site is, in theory, one part marketing and one part technology; or one part CMO and one part CIO. The breakdown occurs in an uneven execution of IT-enhanced sales and service functions which, upon deeper examination, often reveals unresolved issues between the marketing and IT disciplines.

For example, when Motorola introduced its sexy new camera phone in 2004 (the V710), it stitched glossy bind-in brochures into upscale magazines such as Vanity Fair and The New Yorker to lure readers online to access a special microsite for the handset within Motorola.com. Marketing e-mail campaigns to drive traffic to the same special URL revealed nothing more than a general information page on the company's mobile phone line. A search on the site for the V710 yielded absolutely no results. The new model was actually listed on the site, but not under its retail model number. No one from marketing or IT had configured the site to receive the campaign's traffic - or to mention the new product by name at all.

This is one of an infinite number of examples of the CIO and CMO speaking different languages in the design of the "presentation layer", the interface that makes a software application visually appealing and user-friendly (Windows vs DOS) or accessible to the non-tech-savvy self-taught consumer (World Wide Web or AOL vs BITNET and USENET). Effective corporate presentation layers are the work of a solid partnership between CIO and CMO; the outcome is a customer-friendly gateway that is experientially compelling. Large corporations cannot expect their customers to navigate the arcane backwaters of a corporation's systems and sub-systems, any more than a software maker can expect customers to learn machine language to use its products.

This is not a problem that CIOs can solve without CMOs, or that CMOs can solve without CIOs. It's time for the two to act together. Yet, in most corporations, they don't. And that's when customers jump ship, stock values slump, and corporate reputations are battered.

The strategic dialogue between CIO and CMO must begin with consensus as to the desired customer experience and brand. Often these conversations are best guided by an outside facilitator with objective hearing and broad industry context. This probing can highlight impediments of the company's organizational structure and governance, management incentives, and enterprise economics. Together, the CIO and CMO must know the customer perspective on these issues:

• Have we deployed the right touch points (human and technology) in the right places in the right ways - and do we have too many or too few?

• Have we optimized each of our touch points according to customers' preferences and needs, by customer segment and usage occasion?

• Have we understood the processes or pathways our customers select to interact with our company in each and every purchase or re-purchase cycle?

• Have we aligned and integrated those touch points (along with the people, processes and systems that enable them) into consistent and coordinated expressions of brand and offerings to deliver coherent customer experiences?

The orchestration of the presentation layer cannot be left to chance. It calls for expert practitioners of marketing and technology, who know what their customers want in order to create the interfaces and measurements to guide their organizations to delivering on these expectations and preferences. CIOs and CMOs who together lead and integrate their workforces in innovative ways will reinvent how brands are defined, how services are delivered, and how companies will compete. Marketing and IT must come together, and the CIO-CMO teams who can pull it off will each hold the keys to their company's competitive future.

Jeffrey Rayport is co-founder and chairman of Marketspace LLC, a strategic advisory, executive development, and software unit of Monitor Group. He is co-author of Best Face Forward: Why Companies Must Improve Their Service Interfaces with Customers

Featured Whitepaper Sponsors
Market Place
 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
  • +

    CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00

    Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00

    Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05

    Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    TJX Maxx hacker banged up for 30 years 09 January, 2009 11:26:00

    Key figure in the infamous TJX Maxx Wi-Fi hack of 2005 has been sentenced to 30-years in prison by a Turkish court.
    Maksym Yastremskiy, the Ukrainian accused of being a key figure in the infamous TJX Maxx Wi-Fi hack of 2005, has been sentenced to 30-years in prison by a Turkish court.
  • +

    Data breaches rose sharply in 2008, says study 08 January, 2009 08:27:00

    More than 35 million data records were breached in 2008, according to the Identity Theft Resource Center.
    More than 35 million data records were breached in 2008 in the U.S., a figure that underscores continuing difficulties in securing information, according to the Identity Theft Resource Center (ITRC).
  • +

    Rogue SSL certificate exploit puts VeriSign on the spot 07 January, 2009 11:04:00

    Wishes "white hat" researchers had notified VeriSign before public demo.
    Following the success of researchers last week in creating a false SSL certificate based on VeriSign's RapidSSL brand, the company is scrambling to explain how it happened, how it's preventing it from reoccurring, and whether its other SSL certificate-generation services are at risk.
  • +

    With Gaza conflict, cyberattacks come too 05 January, 2009 08:03:00

    Pro-Palestinian hackers have defaced thousands of sites following attacks in Gaza.
    The conflict raging in Gaza between Israel and Palestine has spilled over to the Internet.
  • +

    5 ways to secure your Blackberry 18 December, 2008 12:58:00

    What do Tom Cruise and the McCain campaign have in common? They have both been bitten by the loss of a Blackberry. Mobile expert Dan Hoffman gives advice on how to keep your cherished mobile device safe, even if it's out of your hands
    What do Tom Cruise and the McCain campaign have in common? They have both been bitten by the loss of a Blackberry. Mobile expert Dan Hoffman gives advice on how to keep your cherished mobile device safe, even if it's out of your hands.
CIO Webcast Innovation #8 - What are the biggest roadblocks to IT's involvement in innovation at your company?
Watch the latest latest edition of CIO Innovation which is now available for download.
Watch the webcast
Sign up to the CIO Innovation update email


CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II
Listen to the latest edition of CIO Live which is now available for download.
Listen to the podcast
Sign up to the CIO Live email
Whitepaper

Email Archiving 101—Customer Case Study

Join Lee Benjamin, a Microsoft Exchange MVP and Ryan Shipkowski, network administrator for Matthews, to discuss the process and ROI of implementing an email archiving solution, with emphasis on a case study from Matthews International.