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How CIOs Become Invaluable In The Age Of SaaS

Daniel Newman

With SaaS picking up speed, you may have heard whispers about the future of the CIO. Will the role remain necessary? Will it still serve a critical function in the running of a business, especially when you factor in the emergence of “Everything” as a Service (XaaS)?

The answers are yes, yes, and yes. CIOs are still the glue that holds together incumbent business technology, especially if you factor in external influences like Shadow IT, SaaS, and BYOD. What is it precisely that makes CIOs invaluable in this ever-changing environment? Let’s break it down.

Are CIOs on shaky ground?

SaaS and cloud—basically XaaS—surround how we work and how we consume in today’s world. All you have to do is swipe a credit card to use the latest and greatest application. That’s handy for consumers, but what about for those tasked with procuring IT for companies? Making tech purchasing decisions is no longer a highly centralized process; rather, it’s moving into the spokes of organizations. In fact, many are still feeling the sting of that 2012 Gartner prediction that CMOs will spend more on IT than CIOs by the year 2017. If you haven’t heard of that one, I’d be surprised. It’s been highly discussed, and even CIO Magazine has reported on a proposed “CIO-to-CMO transition of power” as the reverberations from Gartner’s report still rattle some industry leaders.

Whether you agree with the Gartner prediction or not, it’s fair to say it’s stirred up a debate about the viability of the CIO in the age of SaaS and XaaS. There just might be a plus side here: Maybe all this back and forth has started what is actually a healthy discussion about the role of CIOs in this evolving tech space. Longevity is possible, though, if CIOs can re-hone their focus on leveraging their skills to developing robust infrastructure to support company scale, securing complex networks and creating a tech environment where company employees can thrive in productivity; hardly an easy task.

Keys to CIO longevity

It is critical that CIOs are masters of the domain of security, compliance, and—perhaps—a new role: education.

Security. We talk a lot about internal and external security, and for good reason. All that Big Data rolling in and out of IT departments can mean big risks for CIOs, so their security efforts must be on-point at all times. Are data scientists getting to the right information quickly and safely? Is proprietary information gated appropriately? What’s the disaster recovery plan for on-premise data center failures? All these questions and more are important to ask, and there’s no room for error.

Compliance. While using a variety of cloud services for day-to-day company operations can bring versatility to overall operations, it can also bring more compliance issues. CIOs can benefit from reinventing their roles to focus on staying ahead of compliance requirements from a big-picture perspective. That way, there will be no aggravating (and costly) downtime due to noncompliance, and everyone in the C-Suite can breathe easily knowing all those compliance boxes remain checked at all times.

Education. With tools and technology changing at breakneck pace, it is nearly impossible for CIOs to keep up with every new tool out there. No matter how big their team, CIO’s can’t validate every application. On top of that, it isn’t exactly in their best interests to become a bottleneck of productivity. Teaching employees about security and compliance risks is a great way to get them to see the difference between innocently downloading the latest consumer-level app, and inadvertently putting company data at risk.

Plus, focusing on inter-company IT education provides job security for CIOs—the tech landscape is evolving into a more do-it-yourself, BYOD space, but there will always be a need for experts to provide guidance, advice, policy, and oversight.

A role revised

If CIOs can lock down internal and external security risks, help the company stay ahead of compliance requirements that can bog down a company, and become a center of excellence for helping employees maximize the adoption of resources, they will put themselves on a much stronger footing. This is especially important in a world where many have tried to provocatively stir the pot, inferring that CIOs are a fleeting trend.

How do you see the role of the CIO evolving as SaaS and “XaaS” continue to dominate boardrooms and budgets? What’s the C-Suite of the future look like for your company? It’s certainly not a black and white issue—there’s lots of gray area and many components to discuss. I’d love to hear your thoughts.

This post was brought to you by IBM Global Technology Services. For more content like this, visit Point B and Beyond 

The post How CIOs Become Invaluable In the Age of SaaS appeared first on Millennial CEO.

Image credit: StockSnap.io

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About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

More Resources, More Problems

Danielle Beurteaux

This is the second of a two-part series on resource volatility. As noted in the first post, globalization has created an environment of resource volatility. This post, with numbers 11 through 20 on the list, describes resources that are more stable than the previous 10. However, that doesn’t mean there isn’t turmoil, whether that’s environmental concerns in Indonesia’s palm oil production industry, or community organization for water rights in Chile. And, of course, whatever China does, the markets follow.

Top resources and trends

11. Natural Gas

According to the International Energy Agency, most natural gas comes from Russia, the United States, Canada, Qatar, and Iran, and the countries that use the most are the U.S., Russia, China, and Iran. There are sufficient reserves of natural gas, again according to the IEA’s projections, that should last past the year 2040. Liquefied natural gas, which is produced mostly by Qatar, with Australia set to overtake Malaysia for second place, has had a flat market recently. There isn’t the demand to keep up with increased production, so liquefied natural gas producers are looking for new markets, like cruise lines, to grow demand.

12. Tin

Most of the world’s tin comes from China and Indonesia. The tin market tanked last year because of less demand and lots of tin, although it did rally in July and then improve earlier this year, mostly because Indonesia is exporting less and easing the flood of tin on the market.

13. Gold

It seems like everyone’s crazy for gold right now. The precious metal is often perceived as a safer investment than other asset classes, and it’s up 20% this year. Famed investor George Soros just bought $264 million worth of shares in Barrick Gold. The Toronto-based gold-mining company is the world’s largest. Gold prices bumped down a bit while the market waited on the Federal Reserve’s meeting minutes, but some are saying gold will soon recover – and then some.

14. Nickel

Russia, Canada, and New Caledonia are the largest producers of nickel. Most is used to make stainless steel. Like several other commodities we’ve examined, there is more production than demand of nickel at the moment, which has led to depressed prices. China is a big consumer of nickel for stainless steel, and the country is using less because of a slowing real estate market.

15. Beef

The global demand for beef is up, but production is down due to a variety of factors. One is Australia’s decreased production due to drought conditions, which will mean 300,000 tons less beef for export this year. As Australia is a favored trading partner of the U.S., that will affect the American beef market. A recent study from Radobank predicts that China will increase live cattle imports for domestic processing, and Brazil will enter the U.S. market as well.

16. Wheat

It’s a good year for wheat. North American wheat production is doing well, although levels are down from the previous year, with five percent less planted in the U.S. and six percent less in Canada. According to the most recent USDA World Agricultural Supply and Demand Estimates report, total U.S. wheat supplies and use are up six percent and seven percent, respectively. Globally, the report projects a two percent increase in wheat supplies, and consumption will increase, too.

17. Iron Ore

Earlier this year, the iron ore market jumped, reportedly because of the Chinese government’s moves to help along the country’s economy. Things have settled down since then, with recent trading sending the per ton price downwards 22.9% from its high in April, which seems to be due to China’s increased crude steel production and also the government’s stopping speculative trading. They’ve also committed to transportation infrastructure projects, but there is still too much iron ore compared to demand.

18. Copper

As with iron ore, China’s announcement that it would be investing in transportation infrastructure affected the price of copper recently. This is likely a welcome piece of news, as copper had been trading at the lowest levels since March 2009. Output and demand are both projected for small increases this year. Chile has the largest open pit mine and the largest global reserves of copper, but it’s been facing difficulties in recent years including lack of water, which is essential for mining, and local community resistance.

19. Palm oil

Palm oil is a global big business to the tune of $50 billion, which is projected to increase to $88 billion by 2020. It’s in almost everything these days because it’s inexpensive, stable, and can be used for many applications. (It’s not always listed on ingredient labels as palm oil).  Most is produced in Malaysia. It’s also a bête noire of environmentalists – it’s linked to deforestation, the recent massive forest fires in Indonesia which were set, it’s thought, to clear land for plantations, and lost habitat for orangutans and increased worries about their extinction.

20. Aluminum

Aluminum rose overall in 2015, but took a dive in the last few months of the year. Market-watchers are hoping that China’s announcement that it will reduce aluminum output will help energize the market once oversupply is balanced. But one of the world’s biggest producers, Alcoa, is reorganizing, which could be an indication that the company is preparing for an era of depressed prices, despite continued healthy demand.

Digital transformation is affecting different industries at different speeds and on different scales. IDC reveals how in The Internet of Things and Digital Transformation: A Tale of Four Industries.

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How Does Globalization Affect Resources?

Danielle Beurteaux

How do our global and very interconnected markets effect resource volatility?

The evidence points to increasing resource volatility as globalization grows, including in agricultural products. “The globalized world increases the pressure on resources, making even basic food volatile, and especially increasing the pressure on energy and metals,” says Kai Goerlich, SAP’s Idea Director, who led the research.

This research is based on World Bank data and converted into 2010 U.S. dollars for consistency. This is part one of a two-part series.

Top 10 resources and trends

1. Cotton

The top cotton-producing countries are India, China, and the U.S.

The cotton world had a bit of a shock last year when news came out that China was about to unload its massive cotton reserves, which sent prices down. But China didn’t actually flood the cotton market, and cotton production has also decreased somewhat, both of which reversed the price decrease.

The USDA also reports that production levels have recently decreased, particularly in West Africa. Demand from Pakistan increased because its own crop was damaged by pests – good news for India, which increased exports to Pakistan to make up the shortfall.

2. Maize

Maize, aka corn, makes up about a third of global cereal production, according to the World Bank. Maize production has increased over the past 20-odd years, mostly due to its increase as a crop in Asia. The Asian, Canadian, and Australian markets have had an effect on the U.S. Notwithstanding that areas of America’s Midwest are still known as the “breadbasket,” U.S. maize production is actually on a downward trend. It will be interesting to see if the Trans-Pacific Partnership, once (or if) signed will change that development.

3. Platinum

Platinum might be known to consumers mostly for jewelry, but the primary market for this metal is automotive. The majority of platinum comes from South Africa; Russia is the second largest producer. The World Platinum Investment Council is predicting that the metal’s market deficit will decrease this year because of the increased availability of recycled metals and less demand. However, others think the deficit is permanent and predict that platinum will return to its historical price above gold. Much of this depends on demand from global industry, particularly in China.

Here’s an example of the global nature of resources: South African mine workers’ union contracts expire in June. Labor disruptions would, obviously, affect the availability and price of platinum worldwide.

4. Crude oil

It was only recently that the price for crude oil fell yet again due to high inventories, global output, and less demand. What a difference a raging fire can make. The fire in Fort McMurray, Alberta, which began on May 1, has forced the evacuation of the town and the major oil producers have halted or shut down production. This sent crude oil prices back up to almost $50 a barrel, from $26 earlier in the year. Canada is the U.S.’s major supplier of oil.

5. Sawnwood

As with other wood products, there has been an increase in sawnwood production and demand recently, the biggest since the economic downturn post-2008, according to the UN’s Food and Agriculture Organization. There has been an increase in production in some European countries, in part because of recent wind storms that knocked down trees. Also, Europe is slowly reforesting, most dramatically in Ireland with a 52% increase in forested lands.

6. Lead

Lead is a valuable ore that is relatively simple to mine and has a high value, with a global market of approximately $15 billion. While production has slowed somewhat, it’s interesting to note that what’s referred to as the “secondary production,” which includes recyclables, is now almost at par with mined lead. In the U.S., most lead production comes from secondary production, and most of it is used for lead-acid batteries. And even though global stocks and production are decreasing, the price per ton is, too. One reason for that is the search and adoption of alternatives that are more environmentally friendly.

7. Sorghum

Sorghum is grain used mostly for livestock feed and ethanol products. The U.S. is the biggest sorghum producer, followed by Mexico and Nigeria.  Its benefits are that it’s relatively drought- and disease-resistant. But that hasn’t stopped the global sorghum market from experiencing a downturn in demand, driven mostly by China for animal feed. China was responsible for almost 80% of U.S. sorghum exports in 2014-2015. But now it looks like China’s government wants to import less and is using up some of its own stockpiles instead.

8. Sugar

A sweet tooth is about to get more expensive. There’s more sugar demand than supply for the first time in five years. This is good news for sugar producers; the price of sugar recently fell to below production cost. Weather conditions, particularly El Niño, have been a problem in decreasing sugar supply. The EU recently surveyed member states’ opinions on raising sugar supplies because the stockpile is heading to dangerous lows, with potential shortages as soon as this summer.

9. Meat and chicken

The world’s appetite for meat continues to grow. Again, China is driving consumption of chicken, sheep, and pigs, and Brazil takes the top slot for beef. Here’s some interesting data from the OECD about global meat consumption: yet again, China’s economic outlook and tastes are shaping global markets. A Chinese company recently purchased Brazil’s largest soybean producer – soybean is used as animal feed. The Australian government recently blocked the sale of a cattle station conglomerate to Dahang Australia, which is mostly controlled by the Shanghai Pengxin Group. The sale was for 2.5% of Australia’s agriculture land and 185,000 cattle.

10. Tea

It’s been a tough year for some tea producers. Assam, the state in India famed for its teas, has been affected by heavy rains and cool temperatures, which will have an negative effect on the “second flush” (second growth) teas. India is the world’s second largest tea producer (China is the largest; Kenya is third), and most of it is grown on Assam’s tea plantations. Heavy rainfalls, dry periods, and pests are all making tea growing a challenge. Tea is actually the second most popular drink worldwide – the first is water. As noted in this U.N. Food and Agriculture Organization report, tea is pretty picky about growing conditions, and there are only a few areas in the world where it grows well. Overall, tea production, exports, and consumption all grew, and the FAO predicts this trend will continue. However, climate change is a top concern of tea producers and could be the biggest challenge to established producing regions.

Industries are realizing the advantages of the Internet of Things and digital transformation at different speeds and on different scales. IDC reveals how in The Internet of Things and Digital Transformation: A Tale of Four Industries.

For more insight on digital transformation, join us at SAPPHIRE NOW and attend the session “Build Resilience into Digital Supply Networks by Using Live Business.”

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Live Businesses Deliver a Personal Customer Experience Without Losing Trust

Lori Mitchell-Keller, Brian Walker, Johann Wrede, Polly Traylor, and Stephanie Overby

Trust is the foundation of customer relationships. People who don’t trust your business are not likely to become or remain customers.

The trust relationship has taken some big hits lately. Beloved brands like Chipotle and Toyota have seen customer trust ebb due to public perception of their roles in safety issues. Consumers continue to experience occasional data breaches from large brands.

Yet these traditional threats have short half-lives. The latest threat could last forever.

Most customers claim they want personalization across all the channels in which they interact with companies. Such personalization should create long-term loyalty by creating a new level of intimacy in the relationship.

sap_Q216_digital_double_feature3_images2But that intimacy comes at a high price. For personalization to work, brands need to gather unprecedented amounts of personal information about customers and continue to do so over the course of the relationship. Customers are already wary: 80% of consumers have updated their privacy settings recently, according to an article in VentureBeat.

Companies must get personalization right. If they do, customers are more likely to purchase again and less likely to switch to a competitor. Personalization is also an important step toward the holy grail of digital transformation: becoming a Live Business, capable of meeting customers with relevant and customized offers, products, and services in real time or in the moments of customers’ choosing.

When done wrong, personalization can cause customers to feel that they’ve been deceived and that their privacy has been violated. It can also turn into an uncomfortable headline. When Target used its database of customer purchases to send coupons for diapers to the home of an expectant teen before her father knew about the pregnancy, its action backfired. The incident became the centerpiece of a New York Times story on Target’s consumer intelligence gathering practices and privacy.

Straddling the Line of Trust

Customers can’t define the line between helpful and creepy, but they know it when they see it.

Research conducted by RichRelevance in 2015 made something abundantly clear: what marketers think is cool may be seen as creepy by consumers. For example, facial-recognition technology that identifies age and gender to target advertisements on digital screens is considered creepy by 73% of people surveyed. Yet consumers were happy about scanning a product on their mobile device to see product reviews and recommendations for other items they might like, the survey revealed. Here’s what else resonates as creepy or cool when it comes to digital engagement with consumers, courtesy of RichRelevance and Edelman Berland (now called Edelman).

Creepy

  • Shoppers are put off when salespeople greet them by name because of mobile phone signals or know their spending habits because of facial-recognition software.
  • Dynamic pricing, such as a digital display showing a lower price “just for you,” also puts shoppers off.
  • When brands collect data on consumers without their knowledge, 83% of people consider it an invasion of privacy, according to RichRelevance’s research, and 65% feel the same way about ads that follow them from Web site to Web site (retargeting).

Cool

  • Shoppers like mobile apps with interactive maps that efficiently guide them to products in the store.
  • They also like when their in-store location triggers a coupon or other promotion for a product nearby.
  • When a Web site reminds the consumer of past purchases, a majority of shoppers like it.

There are no hard-and-fast rules about which personalization tactics are creepy and which are cool, but trust is particularly threatened in face-to-face interactions. Nobody minds much if Amazon sends product recommendations through a computer, but when salespeople approach customers like a long-lost friend based on information collected without the customer’s knowledge or permission, the violation of trust feels much more personal and emotional. The stage is set for an angry, embarrassed customer to walk out  the door, forever.

sap_Q216_digital_double_feature3_images3It doesn’t help that the limits of trust shift constantly as social media tempts us to reveal more and more about ourselves and as companies’ data collection techniques continue to improve. It’s easy to cross the line from helpful to creepy or annoying (see Straddling the Line of Trust).

Online, customers are similarly choosy about personalization. For example, when online shoppers are simply looking at a product category, ads that matched their prior Web-browsing interests are ineffective, an MIT study reports. Yet after consumers have visited a review site to seek out information and are closer to a purchase, personalized content is more effective than generic ads.

Personalization Requires a Live Business

Yet the limits of trust are definitely shifting toward more personalization, not less. Customers already enjoy frictionless personalized experiences with digital-native companies like Uber, and they are applying those heightened expectations to all companies. For example, 91% of customers want to pick up where they left off when they switch between channels, according to Aspect research. And personalization is helpful when you receive recommendations for products that you would like based on previous in-store or online purchases.

sap_Q216_digital_double_feature3_images-0004Customers also want their interactions to be live—or in the moment they choose. Fulfilling that need means that companies must become Live Businesses, capable of creating a technological infrastructure that allows real-time interactions and that allows the entire organization—its structure, people, and processes—to respond to customers in all the moments that matter.

Coordinating across channels and meeting customers in the right moments with personalized interactions will become critical as the digital economy matures and customer expectations rise. For instance, when customers air complaints about a brand on social media, 72% expect a response within an hour, according to consulting firm Bain & Company. Meanwhile, an Accenture survey found that nearly 60% of consumers want real-time promotions; 48% like online reminders to order items that they might have run out of; and 51% like the idea of a one-click checkout, where they can skip payment method or shipping forms because the retailer has saved their preferences. Those types of services build trust, showing that companies care enough to understand their customers and send offers or information that save them time, money, or both.

So while trust is difficult to earn, once you’ve earned it and figured out how to maintain it, you can have customers for life—as long as you respect the shifting boundaries.

“Do customers think the company is truly acting with their best interests at heart, or is it just trying to feed the quarterly earnings beast?” asks Donna Peeples, a customer experience expert and the former chief customer experience officer at AIG. “Customer data should be accurate and timely, the company should be transparent about how the data is being used, and it should give customers control over data collection.”

sap_Q216_digital_double_feature3_images-0005How to Earn Trust for a Live Business

Despite spending US$600 billion on online purchases, U.S. consumers are concerned with transaction privacy, the 2015 Consumer Trust Survey from CA Security Council reveals. These concerns will become acute as Live Businesses make personalization across channels a reality.

Here are some ways to improve trust while moving forward with omnichannel personalization.

  • Determine the value of trust. Customers want to know what value they are getting in exchange for their data. An Accenture study found that the majority of consumers in the United States and the United Kingdom are willing to have trusted retailers use some of their personal data in order to present personalized and targeted products, services, recommendations, and offers.
    “If customers get substantial discounts or offers that are appealing to them, they are often more than willing to make that trade-off,” says Tom Davenport, author of Big Data at Work: Dispelling the Myths, Uncovering the Opportunities. “But a lot of companies are cheap. They use the information but don’t give anything back. They make offers that aren’t particularly relevant or useful. They don’t give discounts for loyalty. They’re just trying to sell more.”
  • Let customers make the first move. Customers who voluntarily give up data are more likely to trust personalization across the channels where they do business. Mobile apps are a great way to invite customers to share more data in a more intimate relationship that they control. By entering the data they choose into the app, customers won’t be annoyed by personalization that’s built around it.
    For example, a leading luxury retailer’s sales associates may offer customers their favorite beverages based on information they entered into the app about their interests and preferences.
  • Simplify data collection and usage policies. Slapping a dense data- use policy written in legalese on the corporate website does little to earn customers’ trust. Instead, companies should think about the customer data transaction, such as what information the customer is giving them, how they’re using it, and what the result will be, and describe it as simply as possible.
    “Try to describe it in words so simple that your grandmother can understand it. And then ask your grandmother if it’s reasonable,” suggests Elea McDonnell Feit, assistant professor of marketing at Drexel University’s LeBow College of Business. “If your grandmother can’t understand what’s happening, you’ve got a problem.”
    The use of data should be totally transparent in the interaction itself, adds Feit. “When a company uses data to customize a service or offering to a customer, the customer should be able to figure out where the company got the data and immediately see how the company is providing added value to the customers by using the data,” Feit says.
  • Create trust through education. Yes, bombarding customers with generic offers and pushing those offers across the different Web sites they visit may boost profits over the short term, but customers will eventually become weary and mistrustful. To create trust that lasts and that supports personalization, educate the customers.

Procter & Gamble’s (P&G’s) Mean Stinks campaign for Secret deodorant encourages girl-to-girl anti-bullying posts on Twitter, Facebook, and Instagram. The pages let participants send apologies to those they have bullied; view videos; and share tips, tools, and challenges with their peers.

P&G has said that participation in Mean Stinks has helped drive market share increases for the core Secret brand as well as the specific line of deodorant promoted by the effort. Offering education without pushing products or services creates a sense that companies are putting customers’ interests before their own, which is one of the bedrock elements of trust. Opting in to personalization seems less risky to customers if they perceive that companies have built up a reserve of value and trust.

“Companies that do personalization well demonstrate that they care, respect customers’ time, know and understand their customers and their needs and interests,” says Peeples. “It also reinforces that interactions are not merely transactions but opportunities to build a long-term relationship with that customer.”

Laying the Foundation for Live, Personalized Omnichannel Processes

sap_Q216_digital_double_feature3_images-0006Creating a personalized omnichannel strategy that balances trust and business goals starts with knowing the customer. This can happen only when multiple aspects of your business are coordinated in a live fashion. But marketers today struggle to collect the kind of data that could drive more meaningful connections with customers. In an Infogroup survey of more than 500 marketers, only 21% said they are “very confident in the accuracy and completeness of their customer profiles.” A little over half of respondents said they aren’t collecting enough data overall.

Collecting enough of the right types of data requires more holistic data-collection techniques:

  • Take advantage of the lower costs for processing and storing terabytes of data, and develop a data strategy that combines and crunches all the customer data points needed to drive relevant interactions. This includes transactional, mobile, sensor, and  Web data.
  • Social media analytics is also a central tactic. Social profiles and activity are rich sources of data about behavior and character, merging what people buy or look for with their interests, for instance. Such data can feed predictive analytics and personalization campaigns.
  • Experiment with commercial tools that can filter and mine the data of customers and prospects in real time. This is a significant step beyond basic demographic data collections of the past.

sap_Q216_digital_double_feature3_images-0007Once the necessary data is available, companies need the technology, processes, and people to make sensible use of it in an omnichannel personalization strategy. Only when a company is organized as a Live Business can that happen. Here’s how your company can move toward being a Live Business:
Be live across channels. Having a consistent customer journey map across channels is core to omnichannel personalization. It requires integration across multiple systems and organizational silos to enable core capabilities, such as inventory visibility and purchase/pickup/return across channels. This integration also constitutes a major chunk of the transition to becoming a company that can act in the moments that matter most to customers. If all channels can sync in real time, customers can get what they want in the moment they want it.

Free the data scientists. Marketing rarely has full control over the omnichannel experience, but it is the undisputed leader in understanding customer behavior. While data science is part of that understanding, it has traditionally played a background role. Marketers need to bring the data scientists into efforts to sort through the different options for digitizing the omnichannel experience. The right data scientists understand not only how to use the tools but also how to apply the data to make accurate decisions and follow customers from channel to channel with personalized offers.

Walgreens’ Technology Approach to Personalization

Walgreens is a leader in building the kind of technology base that can enable real-time, omnichannel personalization. Its digital transformation is 16 years in the making, according to Jason Fei, senior director of architecture for digital engineering at Walgreens. At the heart of its infrastructure is a Big Data engine that feeds many customer interaction and omnichannel processes, including customer segmentation. The company adds third-party systems in areas such as predictive analytics and marketing software. Walgreens has a cloud-first strategy for all new applications, such as its image-processing and print-ordering applications. Other elements of the drugstore chain’s technology platform include:

  • Application programming interface (API)-driven architecture. Walgreens’ APIs enable more than 50 partners to connect with its apps and systems to drive customer-facing processes, including integrations with consumer wearables to drive reward points for healthy habits, as well as content partnerships with companies such as WebMD. “With APIs we can be an extensible business, allowing other companies to connect to us easily and help in the digital enablement of our physical stores,” Fei says.
  • Responsive Web sites. The company’s Web site is built using responsive and adaptive design practices so that the site automatically adapts to the consumer’s device, whether that is a mobile phone, tablet, or desktop computer. “We have a single code base that runs anywhere and delivers a consistent, optimized experience to all of our customers,” Fei says.

Making the Most of the Technology Base

This technology foundation has allowed Walgreens to push forward in personalization. For example, according to Fei the company uses sophisticated segmentation and personalization engines to drive outbound e-mail and text campaigns to customers based on their purchase history and profile. “We don’t blast out messages to customers; we use our personalization recommendations to be relevant,” says Fei.

The next phase of this strategy is to develop live inbound personalization tactics, such as recognizing customers when they come back to the Web site and tailoring their experience accordingly. These highly automated, self-learning systems improve over time, becoming more relevant at the moment a customer logs back in.

“When you search for a product, the Web site will take a good guess of what you might actually want. If you always print greeting cards at the same time of year, for example, the system would automatically deliver content around that,” Fei explains. “Everyone comes to Walgreens with a mission, so we can be very targeted with our communications.”

Walgreens’ mobile app combines real-time personalization with convenience. You can scan a pill bottle to refill a prescription, access coupons, send photos from your phone to print in the store, track rewards, and find the exact location of a product on the shelf.

Walgreens also recently deployed a new integrated interactive voice-response system that includes a personalization engine that recognizes the individual, says Troy Mills, vice president of customer care at Walgreens. The system can then predict the most probable reason for the customer’s call and quickly get them to the right individual for further help.

How to Get Started with Live Customer Experiences

sap_Q216_digital_double_feature3_images-0008As Fei can attest, getting Walgreens’ omnichannel and personalization infrastructure to this point has involved a lot of work, with much more to come. For companies just now embarking on this journey, especially midsize and large companies, getting started will mean overhauling an outdated and ineffective technology infrastructure where duplicate systems and processes for managing customer data, marketing programs, and transactions are common.

A bad internal user experience often transcends into a bad customer-facing experience, says Peeples. “We can’t afford the distractions of the latest app or social ‘shiny penny’ without addressing the root causes of our systems’ issues.”

Live Business Requires Striking the Right Balance

The boundaries of trust are a moving target. Sales tactics that used to be acceptable decades ago, such as the door-to-door salesperson, are unwelcome today to most homeowners. And consumers’ expectations are unpredictable. At the dawn of social media, many people were anxious about their photos unexpectedly showing up online. Now our identities are tagged and our posts and photos distributed and commented on regularly.

But while consumers are getting more comfortable with online technology and its trade-offs, they won’t put up with personalization efforts that make use of their data without their knowledge or permission. That data has value, and customers want to decide for themselves when it’s worth giving it away. Marketers need to strike the right balance between personalization and a healthy respect for the unique needs and concerns of individuals. D!

 

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Lori Mitchell-Keller

About Lori Mitchell-Keller

Lori Mitchell-Keller is the Executive Vice President and Global General Manager Consumer Industries at SAP. She leads the Retail, Wholesale Distribution, Consumer Products, and Life Sciences Industries with a strong focus on helping our customers transform their business and derive value while getting closer to their customers.

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100 Top Digital Marketing Influencers And Brands

Michael Brenner

New technologies and social media in the last two decades have fundamentally changed the way consumers think, behave, and engage with brands. While traditional marketing models are still applicable, marketers today are learning a whole new set of digital marketing skills and strategies to better connect with consumers.

It’s no surprise then that digital marketing spending is forecasted to account for at least 35% of total marketing budget this year, and is predicted to grow another 12% next year. This increase in digital marketing investment has created a surge in demand for digital marketers. These digital marketers are marketing nerds who are obsessed with analytics and Big Data, but are also highly creative and skilled in everything from copywriting to graphic design, photography, and videography.

If you are a digital marketer or aspire to become one, what are some of the top digital marketing trends or ideas you’ll need to know this year? Onalytica asked seven of the influencers identified in its Top 100 Influencers And Brands research to share their views; check out what they have to say! In full disclosure, I was identified as one of the influencers and was asked to share my opinion on the topic. You can find last year’s list here and 2014’s list here.

What the experts are saying about digital marketing

Jeff-BullasJeff Bullas – CEO at Jeffbullas.com Pty Ltd

“There is an elephant in the room for many digital marketers. They love the vanity metrics of traffic, social media sharing, and follower growth. They are hooked on the engagement and feedback that cool content provides to the brand. But they often don’t work on the last few hard yards. It isn’t seen as sexy and it can be boring. It’s converting that traffic and engagement into leads and sales. It’s is time for many social media and content marketers to grow up”

sam-hurleySam Hurley, Founder of OPTIM-EYEZ

“This saturated, fast-paced digital world in which we live can seem overwhelming for business owners and marketers alike. Aside from the sheer amount of information and data we force ourselves to consume each and every day, there’s one precious unit of measurement which we most commonly neglect: Time. To become a successful business owner, brand, solopreneur, marketer… you have to become a master of time. Digital marketing is evolving at incredible rates, which only feeds our fixation with shiny new objects such as virtual reality and the newest social media platforms. My advice for this year onward? Focus your time and energy into three key revenue generators which suit your business model (and you!). Become exceptional at nurturing these generators and don’t veer off course. Take heed of the new digital trends and adapt, but don’t divert. For these three revenue generators, funnel effort into three primary traffic channels (paid, owned, and earned) that will gain qualified exposure for your business — exposure that converts into sales. That’s all! Test what works and stick with it. Don’t waste your time being a jack of all trades. Finally; build relationships, be yourself, and push your name through social media. I cannot express enough how important this is. Personal branding is absolutely critical for trust, credibility, and inbound leads. Spend time on yourself and everything else will follow. Seriously, I’m living proof of this methodology. I’ve never had to advertise to attract my own clients. My website isn’t even live yet! If this seems crazy to you, it’s time to alter your approach to business. Concepts of marketing will always remain unchanged. It’s only the tools, buzzwords, and technologies that form and shift around us…don’t be dazzled by them. Digital marketing is fun. Profit as a result (and your continued sanity) is better.”

Larry-KimLarry Kim – Founder of WordStream

“We’ve reached peak social – a point at which the signal to noise ratio of social updates is unsustainable – companies, individuals, and automated tools are cranking out so many social updates that post engagement rate is getting crushed. At the same time, the social platforms are obviously looking to monetize their platforms with an increasing number of ads, which further diminishes organic visibility. As more content and ads floods social networks, the slice of engagement for the average brand must shrink because there’s only a finite amount of content consumption and engagement to be had. Social platforms are responding by creating and refining curated user timelines, and only the top brands with the most engaging content will survive.”

Rand-FishkinRand Fishkin – Founder of Moz

“Adblocking was part of a huge conversation in 2015, and my guess is that the reaction to this growing technology is going to mimic how entrenched players have reacted to technology leaps in the past — by trying to legislate it away. I anticipate that in either the U.S. or the EU, some form of government action will arise (in the U.S., most likely due to lobbying, a.k.a. our legalized system of bribery) to “protect the interests of publishers and journalists who serve the public good.”

Evan-DunnEvan Dunn – Digital Marketing Practice Lead at Transform

“The digital media landscape is complex. With new channels, media and technology popping up every month, it’s only getting more complex. The most critical component of success in today’s marketing universe is a cohesive strategy – a theoretical framework that makes sense of every marketing activity executed by your brand, and provides an architecture for measurement and optimization of every activity. After all, if you’re not sure whether an activity is driving ROI, is it really worth doing? Today’s marketing, whether online or off, must be a scientific art (or an artistic science, either one). It can no longer be gut-driven, dominated by creative, and powered by trendy jargon. Measurement, analytics, statistics, quantification, optimization – these are the stuff of proven strategies. Don’t be distracted by flashy ad-tech, although it is sometimes useful. If your digital marketing objective is growing numbers (customers, sales), then your means of accomplishing it must be by analyzing the numbers. Quantitative Marketing is the future of all forms of marketing, including digital.”

Michael-BrennerMichael Brenner CEO of Marketing Insider Group

“Ten years ago, you would have found it difficult to find anything labeled “digital marketing” on the job boards or even listed in the descriptions for openings companies were trying to fill. Now, digital marketing is the hottest job title in all of marketing. Digital marketing skills are in such high demand because we understand how to market to today’s always-connected, multi-device consumer. The top digital marketers today combine right and left-brain talents. We are one part content marketers, editors, and writers, who understand how to create the kind of content that people actually want to read and share. On the other hand, we are also one part data nerds, who understand how to analyze all the information available to us as we continuously create and promote content across email, search, social, and even offline platforms. Today’s digital marketer knows how to reach, engage, and convert new customers for our businesses. We defy the old notion that marketing can’t be measured. Because we’re doing it every day.”

Michael-J.-SchiemerMichael J. Schiemer – Founder at Schiemer Consulting

“In today’s ultra-competitive digital marketing landscape, differentiating your company from the competition is paramount. There are too many generic or mediocre digital marketers and digital marketing agencies out there that won’t stand the test of time. Other more established marketers will rest on their laurels, fail to adapt, and become obsolete in a short period of time. I think all digital marketers and agencies should ask themselves three questions: How are you going above and beyond for your clients? What value do you bring to the table that they can’t get anywhere else? What prevents your services from being outsourced or replaced by a few inexpensive software programs? If you can’t answer those questions quickly and confidently, then you need to step up your efforts or find a new industry.”

Top 100 individuals

RANK TWITTER HANDLE NAME COMPANY INFLUENCER SCORE
1 @jeffbullas Jeff Bullas Jeffbullas.com 44.13
2 @Sam___Hurley Sam Hurley OPTIM-EYEZ 38.2
3 @MarketingProfs Ann Handley MarketingProfs 31.99
4 @AshleyFriedlein Ashley Friedlein Econsultancy 28.46
5 @Rocco_Zebra_Adv Rocco Baldassarre Zebra Advertisement 27.97
6 @iMariaJohnsen Maria Johnsen Golden Way Media 26.57
7 @larrykim Larry Kim Wordstream 21.45
8 @randfish Rand Fishkin Moz 21.07
9 @PamMktgNut Pam Moore Marketing Nutz 18.67
10 @leeodden Lee Odden Top Rank Marketing 16.82
11 @acfrank Andrew Frank Gartner for Marketing 15.73
12 @dknowlton1 Daniel Knowlton KPS DigitalMarketing 13.62
13 @DioFavatas Dio Favatas Truth Initiative 13.08
14 @evanpdunn Evan Dunn Transform 12.53
15 @BrennerMichael Michael Brenner Marketing Insider Group 12.43
16 @adamwoodsaus Adam Woods Reed Exhibitions 12.37
17 @WBB_13 Brent Bouldin Bank of America 11.47
18 @jaybaer Jay Baer Convince & Convert 10.41
19 @davidbnz David Bell University of Pennsylvania 10.32
20 @DaveChaffey Dr Dave Chaffey Smart Insights 10.24
21 @chuckaikens Chuck Aikens Volume Nine 10.18
22 @JenPolk1 Jennifer Polk Gartner 9.92
23 @AlexTachalova Alexandra Tachalova alextachalova.com 9.76
24 @ajalumnify AJ Agrawal Alumnify 9.6
25 @MikeSchiemer Michael J. Schiemer Colbea 9.23
26 @jeremywaite Jeremy ☁️ Colbea Enterprises 9.18
27 @azeckman Ashley Zeckman Top Rank Marketing 8.4
28 @MariSmith Mari Smith marismith.com 8.18
29 @MelonieDodaro Melonie Dodaro Top Dog Social Media 8.11
30 @augieray Augie Ray Gartner for Marketers 8
31 @krbenedict Kevin R Benedict Cognizant 7.93
32 @SimonYates Simon Yates Gartner for Marketers 7.82
33 @NealSchaffer Neal Schaffer Maximize Your Social 7.58
34 @Matt_Umbro Matthew Umbro PPCChat 7.35
35 @markwschaefer Mark Schaefer Schaefer Marketing Solutions 7.21
36 @FeldmanCreative Barry Feldman Feldman Creative 7.1
37 @BrianHughes116 Brian Hughes Integrity Marketing 6.76
38 @ItsDUHnise Jenise Henrikson Search Engine Journal 6.64
39 @DanScalco Dan Scalco digitalux 6.62
40 @neilpatel Neil Patel Crazy Egg 6.59
41 @martykihn Martin Kihn Gartner 6.47
42 @MarketingLetter Dr. Angela Hausman Hausman and Associates 6.41
43 @lacostejonathan Jonathan Lacoste Jebbit 6.37
44 @crestodina Andy Crestodina Orbit Media 6.29
45 @markfidelman Mark Fidelman Evolve! 6.2
46 @marktraphagen Mark Traphagen Stone Temple Consulting 6.06
47 @jacobvar Jacob Varghese jacobv.com 6.01
48 @marcusbowlerhat Marcus Miller Bowler Hat 5.89
49 @CynthiaLIVE Cynthia Johnson American Addiction Centers 5.87
50 @BrettRelander Brett Relander Launch & Hustle 5.65

Top marketing topics

Onalytica was interested in seeing which topics were most popular among their identified top influencers, so they analyzed their tweets and blogs from January 1st to April 19th this year, counting the number of mentions each marketing topic received.

Social Media dominated the list with 27% share of voice, with Content Marketing coming in at second with 12%, and Branding at 9%. Facebook, Twitter, and SEO were tied for fourth place at 8%, followed by Strategy and Advertising both at 5% and Analytics at 4%. Email Marketing, PPC, LinkedIn, and Planning all received 3%, with Growth Hacking rounding out the list at 2%.

Topic-Share-of-Voice-Among-the-Top-100-Digital-Marketing-Influencers-and-Brands

Mapping the digital marketing community

Onalytica also looked at which marketers and brands were leading the conversation on Twitter, so they analyzed over 1.5 million tweets from December 4th, 2015, to April 29th, 2016, mentioning the keyword “digital marketing,” and identified the top 100 most influential individuals and brands who were leading the online discussion.

Onalytica discovered that there was a very engaged community of high-profile marketers, business professionals, and brands. Below you can see the network map of the online conversation Onalytica created with its Influencer Relationship Management software (IRM), showing the No. 1 Influencer, Jeff Bullas, at the center and the conversations to and from the influencers in his field.

Network-Map-5-Jeff-Bullas

Here’s another network map with the No. 1 brand, Econsultancy, at the center, and the conversations to and from the influencers in its field.

Network-Map-6-Econsultancy

Disclaimer: As ever with these lists, it must be stressed that the ranking is by no means a definitive measurement of influence, as there is no such thing. The brands and individuals listed are undoubtedly influential when it comes to driving discussion in Digital Marketing.

The PageRank based methodology we use to extract influencers on a particular topic takes into account the number and quality of contextual references that a user receives. These calculations are independent of a user’s number of followers, but we do filter our lists based on how much a user is engaged in the conversation and the influence they drive through their networks.

Stop confining social media to marketing. To boost returns, it must be embedded into how companies do business. Learn more about this topic in our research inquiry In a Live Business, Social Gets Its MBA.

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About Michael Brenner

Michael Brenner is the CEO of Marketing Insider Group, former Head of Strategy at NewsCred, and the former VP of Global Content Marketing here at SAP. Michael is also the co-author of the book The Content Formula, a contributor to leading publications like The Economist, Inc Magazine, The Guardian, and Forbes and a frequent speaker at industry events covering topics such as marketing strategy, social business, content marketing, digital marketing, social media and personal branding.  Follow Michael on Twitter (@BrennerMichael)LinkedInFacebook and Google+ and Subscribe to the Marketing Insider.