© Lehman Associations, LLC 2013 Technology as Strategy™ Tom Lehman Lehman Associates, LLC Lehman Reports 2014 Technology Institute NYSAE April, 2014

© Lehman Associations, LLC 2013 Lehman Associates, LLC Associations, Nonprofits, and Supplier Companies Strategy consulting for technology and marketing Customer Satisfaction, Market & Member Research The Lehman Reports™ industry research series Founded 1992, Alexandria, VA

© Lehman Associations, LLC 2013 AMS Use and Satisfaction AMS International: CA, AU, UK 2010, 2013 Association Technology Study Donor Management Systems, NTEN, 2013 New Snapshot survey series

© Lehman Associations, LLC 2013 Evolving Role of Technology Technology Introduction Technology as Tools Technology as Strategy Investment Cost Center Linear Exponential ROI Potential

© Lehman Associations, LLC 2013 Content Website Communication Collaboration Social Interlocking Content Marketing Highest growth and most effective models are in the overlaps Both internal and external perspective Circle of Engagement

© Lehman Associations, LLC 2013 A Greater Focus on Outcomes Member Database CRM Toolset Engagement

© Lehman Associations, LLC 2013 Interest in Outcomes Lehman Reports Snapshot Survey 2013

© Lehman Associations, LLC 2013 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 Community and conversation

© Lehman Associations, LLC 2013 Limiting Factors Effective use of advanced capabilities and best practices Technology leadership Complexity of both technology and market landscapes Big data and analytics challenges to realizing true CRM

© Lehman Associations, LLC 2014 Advanced Capabilities Best Practices

© Lehman Associations, LLC 2013 Technology Presence Lehman Reports Technology Study, 2013

© Lehman Associations, LLC 2013 Technology Presence Lehman Reports Technology Study, 2013

© Lehman Associations, LLC 2013 Increasingly Complex Technology Environment

© Lehman Associations, LLC 2013 Technology Complexity Third-party Services Adoption Lehman Reports Technology Study, 2013 Driving deep, two-way AMS integration

© Lehman Associations, LLC 2013 Market / Segmentation Complexity The Multi-device Connected Market Situational Segmentation

© Lehman Associations, LLC 2013 CRM Big Data 360  view of constituents, participation, operations, marketing, advocacy Deep data, multi-stream A driver of integration to capture increasing levels of digital interactions Critical for CRM and other functions, but not actionable in its raw form Participation / purchase patterns, correlations

© Lehman Associations, LLC 2014 Big Data Strategies and Challenges Most Valuable Data Business Are Unable to Use Web behavior 34% Shopping / browsing behavior 25% Sentiment 23% Purchase history 20% Device Engagement 19%

© Lehman Associations, LLC 2013 Advanced Reporting / BI Lehman Reports AMS, Association Technology studies

© Lehman Associations, LLC 2013 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

© Lehman Associations, LLC 2013 Dashboards in Associations Use projected to double within 2 years Lehman Reports AMS

© Lehman Associations, LLC 2013 Cloud-based Services

© Lehman Associations, LLC 2013 Changing Role of IT More about –Being a strategic resource to help leverage technology to achieve organization mission and goals –Management of the technology 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

© Lehman Associations, LLC 2013 Changing Senior Management Role in Technology Decisions Technology as the key component in achieving organization goals Technology as Strategy for greater ROI Vision of the organization drives investments in technology, Bring the long view to decisions including patience and investment Include technology strategy at the senior leadership level – hire at a strategic level

© Lehman Associations, LLC 2013 Technology as Strategy

© Lehman Associations, LLC 2013 Technology-independent IT Strategy Planning The pace of change requires it 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 technology strategy plan, a vision and framework to guide technology investment

© Lehman Associations, LLC 2013 Alignment Organization goals driving technology Strategic investment vs. cost center Organization outcomes, not IT results –Tactical and strategic –Innovation and operational results Renewed emphasis on management reporting / BI decision information

© Lehman Associations, LLC 2013 Technology Strategy Plan Strategy aligned with organization goals Translate into technology strategy to achieve goals Technical assessment Core competency decisions Workflow, business process requirements Changing roles Tech – Org Alignment IT Decision Framework Tech Strategy Foundation Action Plan

© Lehman Associations, LLC 2013 Questions and Discussion Tom Lehman President Lehman Associates, LLC / Lehman Reports Alexandria, VA