1. Technology as Strategy Tom Lehman Lehman Associates, LLC Lehman Reports thedatabank Users Conference September, 2013

2. Lehman Associates, LLC Strategy Consulting and Research Firm Technology strategy Web / Internet / Social Media Strategy Customer Satisfaction, Market & Member Research The Lehman Reports industry research series Nonprofit and Supplier Companies Founded 1992, Alexandria, VA

3. AMS Use and Satisfaction 2006-2013 AMS International: CA, AU, UK 2010, 2013 Association Technology Study 2011-2013 Donor Management Systems, NTEN, 2013 New Snapshot survey series

4. Technology Landscape Map

5. Trends: At a broad level Interactivity, not just information access Engagement, not just communications Community, not just networking Mobile, going beyond remote access Configurability replacing customization Cloud-based, online rather than in-house Technology as Strategy, innovation, success

6. Impact of Enhanced Technology Customization Example Complexity of Customization Time Custom Coding Configuration Application Technology

7. Evolving Role of Technology Technology Introduction Technology as Tools Technology as Strategy Investment Cost Center Linear Exponential ROI Potential

8. Innovation Scale Short Term Fixes Process Improvement Transformational

10. Obama: Technology as Strategy Huge investments in big data and analytics, data-driven messaging and targeting Predictive analysis, likelihood to vote for Obama, trends in voter preferences, identify at risk voters, continually updated Cross-channel integrated marketing Extensive online presence for key message delivery and positioning Social media, mobile campaigns to engage through experience, convey campaign themes through experience Highly targeted marketing, campaigns for specific, narrow segments Micro-fundraising, adds up, reinforces connections and engagement

11. One Indicator Online Display Ad Impressions (MM)

12. Content Website Communication Email Collaboration Social Interlocking Content Marketing Highest growth and most effective models are in the overlaps Both internal and external perspective Circle of Engagement

13. Realizing One-to-One Marketing Interest driven-marketing, content Micro-segmentation Predictive analysis, marketing tools Dynamic content, deep personalization Inclusion of behavior-based indicators Role of crowd sourcing, Kickstarter as a planning / engagement model Mass customization Link

14. The Promise of CRM Greater knowledge / insight about donors Alignment between organization goals and messaging and donor interests / expectations In-depth understanding of trends, patterns, and variable interactions Market segmentation and targeted services Prediction and forecasting, anticipate needs and interests Deeper engagement with constituents

15. The Promise of Engagement Greater understanding of the dynamics of participation and giving Increased visibility and awareness Retention, loyalty, increased contribution Word of mouth, personal fundraising Advocacy, show up Relevance in the large mix

16. Limiting Factors CRM and Engagement Data Analytics Expertise and Culture Engagement Measurement CRM Capabilities

17. CRM Big Data 360 view of constituents, operations, marketing, advocacy Deep data, multi-stream A driver of integration to capture increasing levels of digital interactions Giving / purchase patterns, correlations Critical for CRM and other functions, but not actionable in its raw form

18. Data Challenge Association Example Lehman Reports Association Technology, 2012 Driving deep, two-way integration requirements

19. Internal Systems Integration Donor Management Systems CRM and data appends / overlays Online and Offline Fundraising Advocacy Email Analytics Tools Website

20. Analytics Turn data into actionable intelligence Multivariate, longitudinal Underlying drivers, trends, patterns Decision information Advanced reporting, dashboards, decision systems Increasingly provided by third-party services

21. Advanced Reporting / BI Challenge Lehman Reports AMS, Association Technology, 2011-2013

22. Analysis Levels Operational – looking back –Counting, one variable over time or other single measure, basic segmentation –Benchmark current against past, limited straight line projection Analytical – looking forward –Multivariate –Influence of multiple variables, identification of key levers or inhibitors, advanced segmentation –Predictive analytics, useful for strategy and planning

23. Dashboards Use projected to double within 2 years Lehman Reports AMS, 2012

24. Measuring Engagement A form of segmentation Scores from CRM, social media, other applications In-house scoring / measurement scales Separating meaningful indicators from a multitude of activities is challenging Weighting activities Frequent topic of conversation, subset have begun the process Fewer understand the commitment involved Potential payoff is high, however

25. Status: Measuring Engagement

26. Challenging, Early Stage Big Data in Commercial Firms Only one quarter collecting the data required While fewer than half of those say they have sufficient resources to make use of it

27. Expertise Culture Commitment

28. Mobile Another channel of access … …. Or something more?

29. Mobile Internet

30. Tablet as Primary Computer Business Insider Survey, 2012

31. The Multi-device Connected Segment

32. More than another Internet device Significant differences in access models, User scenarios More transactional, bursts rather than sessions More immediate with more explicit triggers Overlay of location and time Takes place in the midst of multi-tasking Tablets and phones offer different access models iOS vs Android – different segments for online use Marketing / promotion models change Apps as browser replacements. apps versus HTML5 Mobile First strategy worth considering

33. Technology as Strategy Alignment – goals driving technology Forward focus, what is possible 360 donor view, in-depth knowledge Greater personalization, one-to-one marketing Integrated content, high value in the overlaps Strategic investment vs. cost center Organization outcomes, not IT results Advanced management reporting / BI Changing role for the CIO and IT

34. Technology-independent IT Strategy Planning Resilient to rapid tech changes Flexibility to adopt new models / tech Importance of adoption cycles in technology decisions Investment in platform, direction, capacity – positions for future needs Specific Technology All organizations should have a strategic IT plan, a vision and framework to guide technology investment

35. Changing Role of IT More about –Being a strategic resource to help leverage technology to achieve organization mission and goals –Management of the tech environment and providers –Big data, analytics, application integration –Technology education of possibilities, opportunities –A focus on outcomes, contributions Less about –Operating technology –Purely reactive support function –Application training –Focus on input and activities New opportunities for IT to be involved at a strategy level

36. Questions and Discussion Tom Lehman President Lehman Associates, LLC / Lehman Reports Alexandria, VA 703-373-7550 Tom@LehmanConsulting.com www.LehmanConsulting.com www.lehmanreports.com