1. © 2013 IBM Corporation CMO and CIO: Friends with digital benefits iStrategy – May 15, 2013 Surjit Chana CMO, IBM Europe @SurjitChana

2. © 2013 IBM Corporation2 In February of 2012, The New York Times published an article that gave us a glimpse of the future practice of marketing.

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4. 4 We have spoken to thousands of CIOs and CMOs and found that they have a number of common goals and challenges IBM Institute for Business Value Extend IT inside and outside the organization while minimizing risks Ensure infrastructure works flawlessly while adopting new tools & technologies Understand the business deeply to match the right tools and technologies to the needs of the business Do more than ever, inside and outside the organization Be more accountable for return on investment Use tools and technologies their children understand better than them 3,200+ CIOs1,700+ CMOs

5. © 2013 IBM Corporation 5 CIOs are already focusing on solutions required to manage the explosion of data and capture value – a top concern for CMOs CIO focus over the next 5 years Insight and intelligence People skills Internal collaboration & communications Risk management Revenue model changes 79% 66% 64% 50% 35% CMO focus over the next 5 years Rethink skill mix 64% Collaborate with peers Validate ROI Address privacy Integrate insights 51% 49% 28% 69% 64% "Importantly, the role of CIO is not being looked on as 'Chief IT Mechanic.' It is recognized as a means to extract value from technology and gain insight from complex systems.” Mark Hale, Director of IS for Food Retail, The Co-operative Group “The biggest challenge isn’t the amount of data that’s available, but interpreting the data and making business decisions based on the insights it provides.” Telecommunications CMO, Poland

6. 6 Defining a new profession, and a shared agenda for the CMO and the CIO Marketers have always been responsible for knowing the customer Marketers have always been responsible for defining what to market, and how to market it Marketers have always protected the brand promise

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9. 9 Goal: Gain Customer insight What: CMO and CIO developed a Social Media listening solution Digital benefits: Get customer feedbacks from public forum, as these comments complement the ones shared with Sales Reps

10. ING Netherlands delivers a relevant dialog with its customers offering products and services that respond to customers’ life events Embed ING Netherlands success story video – 2:11 (Intelligence Director talking about building a system of engagement with clients to detect life events and cater products / services accordingly) https://www.youtube.com/watch?v=p7tesEdpWNo Hans Hagenaars CMO of ING Ron van Kemenade CIO of ING

11. 11 ING Netherlands delivers a relevant dialog with its customers offering products and services that respond to customers’ life events Embed ING Netherlands success story video – 2:11 (Intelligence Director talking about building a system of engagement with clients to detect life events and cater products / services accordingly) https://www.youtube.com/watch?v=p7tesEdpWNo Hans Hagenaars CMO of ING Ron van Kemenade CIO of ING Goal: Grow revenue and customer loyalty What: CMO and CIO rebuilt the marketing technology infrastructure and processes to become more automated, coordinated and personalized Digital benefits: 3x higher response rate Direct Marketing costs reduced by 35% Campaign cycle times reduced from 21 weeks to four weeks

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14. 14 Goal: Shift to Customer centricity What: CMO and CIO agreed on the roadmap for the future and which infrastructure will be needed Digital benefits: Become a community leveraging Social platforms

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16. 16 Embed PETCO success story video – 1:22 (Ecommerce & Web Analytics Director talking about customizing marketing and listening to online customer sentiment to monitor brand and cater messaging accordingly – TRIMMED REFERENCES TO COREMETRICS) https://ibm.biz/BdxJqe Goal: Strengthen Trust & Transparency What: CMO and CIO defined a solution based on Mobile and Social to track comments (positive and negative) Digital benefits: Able to respond to customers with the right answer

17. 17 Future Challenges and Opportunities Systems will understand complex natural languages and perform deep sentiment analysis Moving from analyzing the PAST, to near REAL-TIME, to predicting the FUTURE Systems and people will learn from each other Customers will know as much about you (vs. your competition) as you know about them Conclusion: Competitive advantage will come from marketing seeing more clearly – and further into – the FUTURE

18. 18 Let’s continue the conversation @SurjitChana