"In a 2015 McKinsey survey, though, only 17 percent of directors said their boards were sponsoring digital initiatives, and in earlier McKinsey research, just 16 percent said they fully understood how the industry dynamics of their companies were changing.1 In our experience, common responses from boards to the shifting environment include hiring a digital director or chief digital officer, making pilgrimages to Silicon Valley, and launching subcommittees on digital.
among the directors we work with, roughly one in three say that their business model will be disrupted in the next five years.
boards must view themselves as the ultimate catalysts for digital transformation efforts. Otherwise, CEOs may be tempted to pass on to their successors the tackling of digital challenges.
Only 116 directors on the boards of the Global 300 are “digital directors.”22.See Rhys Grossman, Tuck Rickards, and Nora Viskin, 2014 Digital board director study, January 2015, russellreynolds.com. Digital directors were defined as nonexecutive board members who play a significant operating role within a digital company, play a primarily digital operating role within a traditional company, or have two or more nonexecutive board roles at digital companies. T
At one global consumer company, for instance, some board members put beta versions of new digital products and apps through the paces to gauge whether their features are compelling and the interface is smooth. Those board members gain hands-on insights and management gets well-informed feedback.
Digitization, meanwhile, is changing business models by removing cost and waste and by stepping up the organization’s pace. Cheap, scalable automation and new, lightweight IT architectures provide digital attackers the means to strip overhead expenses and operate at a fraction of incumbents’ costs.
Engage more frequently and deeply on strategy and risk
Today’s strategic discussions with executives require a different rhythm, one that matches the quickening pace of disruption. A major cyberattack can erase a third of a company’s share value in a day, and a digital foe can pull the rug out from a thriving product category in six months. In this environment, meeting once or twice a year to review strategy no longer works. Regular check-ins are necessary to help senior company leaders negotiate the tension between short-term pressures from the financial markets and the longer-term imperative to launch sometimes costly digital initiatives.
One company fashioned what the board called a “tight–loose” structure, blending its normal sequence of formal meetings and management reporting with new, informal methods.
Fine-tune the onboarding and fit of digital directors
In their push to enrich their ranks with tech talent, boards inevitably find that many digital directors are younger, have grown up in quite different organizational cultures, and may not have had much or even any board experience prior to their appointment. To ensure a good fit, searches must go beyond background and skills to encompass candidates’ temperament and ability to commit time. The latter is critical when board members are increasingly devoting two to three days a month of work, plus extra hours for conference calls, retreats, and other check-ins.
What's a tech company, anyway?
6 of 17
Share Like Download
701 3 59
Published on May 17, 2016
Just over 80% of marketing is reaching the wrong customers according to an Accenture global survey
Published in: Marketing
Be the first to comment
1. Waste or Win? The Case for Just-in-Time Marketing
2. CMOs estimate that fewer than 20% of the people they reach are potential customers for the product or service being offered, according to an Accenture global survey of CMOs across industries. On a cost-per-consumer-reached basis, this represents an estimated hundreds of billions of dollars being misspent annually. It’s no coincidence that the companies most focused on reining in this waste are, consequently, also boosting the quality of their marketing—and enjoying stronger growth as a result. Waste. It’s a big problem for marketers… Wrong customers Right customers 80% 20%
3. Broad awareness campaigns are losing their luster, and contributing to waste. Fail to convert sales Target the wrong customers Become irrelevant fast
4. Done wrong, the pivot to personalized marketing experiences creates waste. Marketers attempt to leapfrog the necessary foundation building that is necessary to master personalized marketing at scale, and they are disappointed with the results. They cannot move beyond pilots and provide personalized experiences at scale without the right operating model and operational capabilities. Personalized Marketing @ ScaleScale Pilots Current Mature PERSONALIZED EXPERIENCES MARKETING OPERATIONS CAPABILITIES
5. -$11.6 billion Digital tools and technologies can be both a cause of and a cure for marketing waste. * Joshua Bellin and Paul F. Nunes, “Lean, Targeted, Digital: How to Gear Up for Just-in-Time Marketing,” 2015 Accenture.com/justintimemarketing More opportunities = More chances for missteps Some marketing organizations are wasting billions marketing to Internet bots posing as real consumers. One study puts the 2014 loss figure at $11.6 billion.*
6. Digital tools and technologies can be both a cause of and a cure for marketing waste. More channels = More silos within marketing organizations Digital marketing evolved as an isolated specialty area. Separation of talent, tools and work streams across digital and traditional marketing activities created unnecessary waste.
7. CMOS recognize the consequences of all this marketing waste. Less than half of CMOs are “very satisfied” with the value for money they receive from marketing efforts.
8. CMOS recognize the consequences of all this marketing waste. Don’t consider what is being advertised Do consider what is being advertised 80% 20% Fewer than 20% of the individuals will consider the product or services for what’s being advertised.
9. How can marketing organizations produce quality content that reaches the right customers? It is a practice rooted in lean manufacturing approaches that reduce unnecessary inventory by producing only what customers want, when they want it, always to precise specifications and superior quality. Just-in-Time Marketing can help marketers drive personalized marketing at scale and enable better operational effectiveness to focus only on marketing initiatives that can convert sales.
10. Just-in-Time Marketing can impact the bottom line. Accenture research shows that companies that excel at Just-in- Time Marketing are three times more likely than peers to report the strongest growth rates over one and three-year periods. Just-in-Time Marketers Everybody else Source: Just-in-Time Marketing CMO survey, Accenture 2015 1-year growth than peers % reporting greater than 25% 3-year growth than peers 40% 20% 30% 10% 30% 10% 38% 12%
11. Just-in-Time Marketers share important capabilities. Customer knowledge Channel capability Messaging agility
12. How can your marketing organization develop Just-in-Time Marketing capabilities?
13. A foundation for change. Start making these three things happen. 1. Transform the operating model 2. Support continuous planning 3. Measure results, and measure again Sponsorship and governance Processes and capabilities Technology and data management Organizational design and talent management
14. Companies around the world spent $600 billion on advertising in 2015. All of them have a choice to make for the future. What choice will you make? • Risk investments • Throw away resources • Wrong consumers • Miss opportunities • Reinvent marketing quality • Target resources • Right consumers • Convert sales Waste Win vs.
15. Rob Davis Managing Director Accenture Interactive firstname.lastname@example.org Joshua Bellin Research Fellow Accenture Institute for High Performance email@example.com Accenture.com/justintimemarketing Waste or Win? The Case for Just-in-Time Marketing Contact us For more information visit:
16. About Accenture Interactive Accenture Interactive, part of Accenture Digital, helps the world’s leading brands drive superior marketing performance across the full multichannel customer experience. Accenture Interactive offers integrated, industrialized and industry- driven digital transformation and marketing solutions. To learn more follow us @AccentureSocial and visit www.accenture.com/interactive. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. Copyright © 2016 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
How can manufacturers and retailers resolve the digital collaboration conundrum?
Expectations vs Experience: The Good, The Bad, The Opportunity