fred isbell "hot topic" september fuqua marketing conference: navigating digitalization...

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Navigating Digital Transformation –Meeting the Challenges of the Modern MarketerFred Isbell

SAP SE


Why I am a Marketer

https://www.youtube.com/watch?v=11WDX0fzDa0&list=UUJ-J9ws028X7ASicv0-r8dQ&index=51

https://www.youtube.com/watch?v=11WDX0fzDa0&list=UUJ-J9ws028X7ASicv0-r8dQ&index=51


It’s a Great Time to Be a Fuqua MBA!

Duke/Fuqua MBA Program reaches #1 in the

Bloomberg BusinessWeek survey

“There is a new top dog in American business education:

Duke University’s Fuqua School of Business. The Durham

(N.C.)-based school has claimed the No. 1 spot in Bloomberg

Businessweek‘s 14th biennial ranking of full-time MBA

programs, part of a shakeup that dethroned University of

Chicago’s Booth School of Business and also knocked elite

rival Harvard Business School out of the top five for the first

time in the history of the ranking. Fuqua, which was ranked

No. 6 in the most recent Businessweek ranking, rose to the

top spot, thanks in large part to employers’ esteem for its

graduates”.

http://www.businessweek.com/articles/2014-11-11/best-business-schools-2014-duke-is-top-full-time-mba-harvard-slips

http://www.businessweek.com/articles/2014-11-11/best-business-schools-2014-duke-is-top-full-time-mba-harvard-slips


Agenda

Modern Marketing

Innovation Adoption 101 and Digital Transformation

Navigating Innovation Technologies:

Third Platform and Digital Transformation

Cloud, Mobile, Social, and Big Data

The Internet of Things (IoT)

Marketing Technology

More Information & Q&A


Modern Marketing is Happening NOW


Introduction:

Enter the Era of the “Modern Marketer”


Key Changes are Driving the Shift in Marketing

Source: ITSMA 2015


5 Mandates for the Future of Marketing

Marketing must providing the glue

that binds the different parts of

the company together around the

brand promise – and must

embrace five key responsibilities:

Represent the voice of the market

Synchronize the customer experience

across all channels

Be the brand steward

Capitalize on insights

Be an integrator and force multiplier

across the company

Source: SAP CEC 2014

Source: Scott Brinker @chiefmartec

http://www.chiefmartec.com

http://www.chiefmartec.com/


Marketing’s Priorities are Shifting

Source: ITSMA 2015


Key Elements of “Modern Marketing”

Source: Sirius Decisions 2014


Embrace The Future: The Buyer’s Journey Unites and

Aligns Sales and Marketing

How this is different:

No implicit hand-offs

between sales and

marketing

Majority of exploration

done on-line before

talking to a sales rep

Introduces new content

requirements –

importance of mobile-

ready content

Departure from traditional

“Marketing funnel”

Source: IDC 2013

Innovation 101 & Digital

Transformation


Business Context: The Pace of Change is Accelerating

0% 10% 20% 30% 40% 50% 60% 70%

Pace of Change (%)

Q: Has the pace of change increased for your organization?

No, Not at All Yes, I Think So Absolutely

33%

61%

6%

Source: Incite Marketing Customer Study, 2015


Innovation Adoption 101:

The Model & Segmentation

Innovation Adoption:

A model that classifies

adopters of innovations

based on their level of

readiness to accept

new ideas

Innovative adoption

characteristics are

assigned to groups --

all innovations go

through a predictable

process before

becoming widely

adopted.

The groups consist of

early adopters, early

majority, late majority,

and laggards

Source: dictionary.com

Source: Rogers, G. Moore, MIT Sloan/CAP Gemini

“Crossing the chasm”

Early adopters achieve:

+9% revenue creation

+26% impact to profitability,

+12% market valuation


Innovation Adoption 101:

Time to Innovation Adoption

Source: Rogers, Moore, McKinsey

Inflection point

(curve begins to

slow) = point of

“critical mass”

Key -- get there

quickly, whether

users or product

volume, etc

Failure to “cross the

chasm” (Geoffrey

Moore) or reach

critical mass =

doomed to a

smaller, sub-optimal

market and much

smaller market

share

Source: “No ordinary disruption”, McKinsey, May 2015


Digital Transformation – a Definition


Three stages of Digital Transformation

Navigating Innovation

Technologies


My Information Technology (IT) Journey & Navigation

IBM 3270

Terminal

c.1982

Compaq

“Portable”

c. 1983

Tech

Stack

c.2015

Desktop,

Laptop &

iPAQ PDA

c. 1998


Navigating The Third Platform

1st -Mainframe and

terminals

2nd - LAN/Internet and

Client/Server and PCs

and fueled last 25

years of growth

3rd - Mobile, Social,

Big Data and Cloud

New solutions will be

built on this platform

which is the source of

new growth

Source: IDC

Users

Devices

Applications

Data &

Content

The Third Platform is all about Scale:

From thousands to millions to trillions!


Cloud

Abundance of cost-

effective computational

power and storage

Mobile

The new de facto

standard in business

interaction

Social

Connected business

and social networks

Big

Data

Real-time analytics

for behavioral and

predictive insights

More than 60% of CEOs expect 15-50% of their

earnings growth in the next 5 years to come from

technology-enabled business innovations.

– McKinsey study, 2013 ”“

Innovation Technologies Will Drive

Digital Transformation


Innovation Technologies:

Cloud Computing

Software as a Service (SaaS)

Platform as a Service (Paas)

Infrastructure as a Service (IaaS)

Business Process as a Service

(BaaS)

Public Cloud and Private Clouds

Collaboration & Business

Networks

http://www.ariba.com/

http://www.ariba.com/



Mobile Solutions

Where’s the growth?

Not in Laptops and PCs

-- in Tablets and Mobile

Devices

Major trends include the

“Consumerization of IT”

and “Humanization of

IT”

“Bring Your Own

Device” (BYOD)

A growth engine of the

Internet of Things (IoT)

and Big Data &

Analytics

50,000+ SAP employees equipped with internal apps

Mobile for Everyone



Social Media and Digital Transformation

Metcalfe’s Law: the value of a

network is proportional to the square

of the number of connected users (a

network’s value grows exponentially)

A variation Reed’s Law speaks

specifically to the utility obtained

from scaling social networks

Pull versus Push

Best Practices: Learn, Observe,

Listen, Jump in and Actively

Participate

Blurs the line between work and

private life, get used to it, it’s not

going away!

“Social media spending is currently 11% of

marketing budgets and is expected to grow

to 14% in the next 12 months and 24% in

the next five years”

Source: Duke CMO Study 2015



Big Data and Analytics

Navigating the Data and

Information Explosion

Business Intelligence

Rise of the Information

Worker

Real-Time Information

Access

Big Data on top of Next-

Generation In-memory

Database Technology is the

new “Killer App”

Dashboards & Predictive

Analytics

“Brave New World” of Sports

Mr. Data

Brent Spiner

“Father of BI”

Howard Dresner


The Internet of Things (IoT)

Massive amounts of data

from peoples, sensors &

devices – and growing

rapidly

Gartner projects IoT will

increase nearly 30-fold from

about 900 million connected

devices in 2009 to more than

26 billion by 2020

IDC projects IoT spending in

2015 is expected to exceed

$1.7 trillion and 15 billion

devices and grow to $3

trillion and nearly 30 billion

devices by 2020

Source: IDC, Gartner, SAP 2015


Marketing Technology: A Definition

Source: ITSMA 2015


Current Usage and Objectives of Marketing Technology

Source:

Email marketing technology is used by 82% of

companies surveyed. In addition to dedicated

email applications, email functionality is

integrated into many other technologies such

as marketing automation and CRM systems.

With nearly every form of marketing now

technology driven, a clear understanding of

desired outcomes is critical. The most

important objectives of an effective

marketing strategy are highly measureable

including increases in sales revenue, lead

generation and conversion rates.


Top Marketing Technology Challenges

Source: ITSMA 2015


The Shifting Landscape of Marketing Technology

Source: ITSMA 2015


Navigating the Marketing Technology Landscape

Focus your Learning

upon:

Customer Relationship

Management (CRM)

Marketing Automation

Marketing Dashboards

Digital Media

Big Data, Analytics &

Visualization

Predictive Analytics

Source: Scott Brinker @chiefmartec

http://www.chiefmartec.com and Lumascape

http://www.chiefmartec.com/


The Geeks Won:

Data Science and Data Scientists

Data Science definition:

In general terms, data science is the

extraction of knowledge from data

It employs techniques and theories

drawn from many fields within the broad

areas of mathematics, statistics,

information theory and information

technology

Data Scientists definition:

Data scientists investigate complex

problems through expertise in disciplines

within the fields of mathematics,

statistics, and computer science

A data scientist will most likely be expert

in only one or at most two of these areas

and merely proficient in the other(s).

Edward Tufte is a

statistician and artist,

and Professor Emeritus

of Political Science,

Statistics, and

Computer Science at

Yale University

Source: Wikipedia, Google searches Napoleon's March – Visual display Of Quantitative Information


SAP: Navigating Innovation Technologies

for over 40 Years

Simplifying Decisions

Enable 3M rows of shopping data per

minute; 1000+ users; 94% responses in

less than 2 sec. each on “Black Friday”

Retailer with 245M customers

per week across 11K stores

Simplifying Technology

Converted 38TB of data to 8TB in-memory with

SAP HANA to unlock the power

of real-time

Consumer goods firm serving

2B customers worldwide

Simplifying Processes

Coordinate a supply chain of 4 million parts from

1500 suppliers across 30 countries to build one

airplane

Aerospace Manufacturer serving

billions of passengers per year

By solving the worlds most complex business problems

1972 Data Processing 1979 Globalization 1991 Internet 2015 Digital

SAP R/1

SAP R/3

SAP S/4HANA

SAP R/2

SAP is Uniquely Qualified to Master Complexity

For Over 40 Years, SAP Has Led at Every Major Economic Inflection Point


Source: SAP Corporate Fact Sheet 1/2015

SAP is the World’s Largest Provider of Enterprise Application

Software & Runs the World’s Largest Business Network


More Information

SAP.com – www.sap.com and

www.sap.com/services

SAP Services Hub --

www.sapserviceshub.com/h/

SAP Digitalist Magazine --

www.digitalistmag.com

http://www.sap.com/

http://www.sap.com/services

http://www.sapserviceshub.com/h/

http://www.digitalistmag.com/

Wrap-Up and Q&A

© 2014 SAP SE or an SAP affiliate company. All rights reserved.

Thank You!Fred IsbellSenior Director,

SAP Service & Support Marketing

[email protected]

www.sap.com/services

Twitter: Fmisbell

Facebook: Fred M Isbell

Linked In: www.linkedin.com/pub/fred-

isbell/0/827/903Edit

mailto:[email protected]

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