The Digital Business revolution & therise of the Chief Digital Officer

From CDO to CEO:What’s Driving the Chief Digital

Officer to CEO Career Path?

For fast-growing companies,the Chief Digital Officer isemerging as the new “it”

position. Gartner predicts that25% of businesses will have a

CDO by 2015. Gartner

For fast-growing companies,the Chief Digital Officer isemerging as the new “it”

position. Gartner predicts that25% of businesses will have a

CDO by 2015. Gartner

Here’s why

70% of all U.S. car buyers research new and used carpurchases online, an average of 18 hours per person

(source: Polk).

90% of people trust recommendations over advertisingin deciding what to purchase (source: Nielsen).

2,010,000 – the number of sites that result from aGoogle search on “toothbrush prices.”

The business world has changed

70% of all U.S. car buyers research new and used carpurchases online, an average of 18 hours per person

(source: Polk).

90% of people trust recommendations over advertisingin deciding what to purchase (source: Nielsen).

2,010,000 – the number of sites that result from aGoogle search on “toothbrush prices.”

Digital marketing has created a survival of the fittest & fastest businessmodel change across all industries.

Professional services firms are losing clients to competitors who out-networkthem via LinkedIn.

Traditional manufacturers who used to rely upon distributors to handlecustomer communication, now have to deal directly with online customercomplaints and with their competitors talking directly to consumers.

Retail businesses have to fight for new visits every single day, every singleminute on search engines and in social media.

B2B, B2C industries alike have to fundamentally change how they interactwith customers because of digital marketing.

Your Industry’s Business Model is Changing

Digital marketing has created a survival of the fittest & fastest businessmodel change across all industries.

Professional services firms are losing clients to competitors who out-networkthem via LinkedIn.

Traditional manufacturers who used to rely upon distributors to handlecustomer communication, now have to deal directly with online customercomplaints and with their competitors talking directly to consumers.

Retail businesses have to fight for new visits every single day, every singleminute on search engines and in social media.

B2B, B2C industries alike have to fundamentally change how they interactwith customers because of digital marketing.

Example Digital Marketing Case study:R1million in sales.

Product: Forex trading CDsCompany: Fleet Street

Online purchase via credit cardTime period: Nov-Jan.

No labour costs.

How?: expert digital marketing infrastructure(IT & Marketing collaborating perfectly)

Example Digital Marketing Case study:R1million in sales.

Product: Forex trading CDsCompany: Fleet Street

Online purchase via credit cardTime period: Nov-Jan.

No labour costs.

How?: expert digital marketing infrastructure(IT & Marketing collaborating perfectly)

Companies who reach potential customers faster,offer a better digital customer experience, whocommunicate more quickly with customers, are

winning the sales race.

And that is driving a business model change globally.

More than ever before, the CMO and CIO have towork together – but they have no historical

precedent for this.

Companies who reach potential customers faster,offer a better digital customer experience, whocommunicate more quickly with customers, are

winning the sales race.

And that is driving a business model change globally.

More than ever before, the CMO and CIO have towork together – but they have no historical

precedent for this.

Organizational experts saygrowing tensions are drivingthe trend, as CMOs and CIOsclash more frequently aboutquestions of turf, innovationand accountability. Gartner

Organizational experts saygrowing tensions are drivingthe trend, as CMOs and CIOsclash more frequently aboutquestions of turf, innovationand accountability. Gartner

38% of CMOs say IT keeps them out of the loop35% say Marketing isn’t given enough priority.

31% of CIOs say their Marketing peers are ill-informed about tech. 36% say marketingroutinely bypasses them for solutions, going tooutside vendors & ad agencies without firstchecking for internal solutions. Accenture

Accenture reports:

38% of CMOs say IT keeps them out of the loop35% say Marketing isn’t given enough priority.

31% of CIOs say their Marketing peers are ill-informed about tech. 36% say marketingroutinely bypasses them for solutions, going tooutside vendors & ad agencies without firstchecking for internal solutions. Accenture

“The CMO will increasingly havethe upper hand in these tensions.According to Gartner, CMOs arepredicted to outspend CIOs on

tech by 2017.”Wired Magazine 2014

CMOs vs CIOs

“The CMO will increasingly havethe upper hand in these tensions.According to Gartner, CMOs arepredicted to outspend CIOs on

tech by 2017.”Wired Magazine 2014

“With customers expecting seamless (&satisfying) digital experiences across moreplatforms, CMOs & CIOs are recognizing

that they need help with skills & strategiesthat can bridge either the smallestInstagram campaign or the biggestinvestments in mobile commerce.”

Wired Magazine 2014

Solution: CDO

“With customers expecting seamless (&satisfying) digital experiences across moreplatforms, CMOs & CIOs are recognizing

that they need help with skills & strategiesthat can bridge either the smallestInstagram campaign or the biggestinvestments in mobile commerce.”

Wired Magazine 2014

“Unlike CIOs, CDOs aren’t concerned withequipment or how data is moved, but rather where

that data is going and how it’s used.

And unlike CMOs, who are immersed in advertising,CDOs can see every digital touchpoint includingpurchase, delivery and service. As a result, they

have a much more complete picture of thecustomer’s experience.”Wired Magazine 2014

“Unlike CIOs, CDOs aren’t concerned withequipment or how data is moved, but rather where

that data is going and how it’s used.

And unlike CMOs, who are immersed in advertising,CDOs can see every digital touchpoint includingpurchase, delivery and service. As a result, they

have a much more complete picture of thecustomer’s experience.”Wired Magazine 2014

“For now, CDOs are seen as the people who canstep in to fill gaps while simultaneously bridging

conflicts between marketing & technology. That is, ifyou can find a good one.

“Right now, there aren’t enough people with the“Right now, there aren’t enough people with theright mix of technical knowledge, businessright mix of technical knowledge, business

experience & consumerexperience & consumer--orientation in the marketorientation in the market.”Wired Magazine 2014

The CDO bridges the gap

“For now, CDOs are seen as the people who canstep in to fill gaps while simultaneously bridging

conflicts between marketing & technology. That is, ifyou can find a good one.

“Right now, there aren’t enough people with the“Right now, there aren’t enough people with theright mix of technical knowledge, businessright mix of technical knowledge, business

experience & consumerexperience & consumer--orientation in the marketorientation in the market.”Wired Magazine 2014

“There aren’t enough IT people whounderstand Digital Marketing

or Marketing people whounderstand Digital Marketing (&

thus tech issues) fully”

“There aren’t enough IT people whounderstand Digital Marketing

or Marketing people whounderstand Digital Marketing (&

thus tech issues) fully”

The CDO Club forecasts that thenumber of global CDOs will doubleagain in 2014, to 1,000 CDOs by the

end of the year.

Number of Chief Digital OfficersDoubled in 2013

Seven CDOs Became CEO and FourCDOs Became Board Directors

Reuters May 12, 2014

Number of Chief Digital OfficersDoubled in 2013

Seven CDOs Became CEO and FourCDOs Became Board Directors

Reuters May 12, 2014

Salaries for CDOs ranged from $250,000 to $750,000

98% of CDOs are between the ages of 30 and 59

Globally, 68% of CDOs are located in North America,followed by 23% in Europe, 6% in Asia; 2% in MEA;and 1% in South America

Global Stats on Chief DigitalOfficer Appointments

Salaries for CDOs ranged from $250,000 to $750,000

98% of CDOs are between the ages of 30 and 59

Globally, 68% of CDOs are located in North America,followed by 23% in Europe, 6% in Asia; 2% in MEA;and 1% in South America

“The Chief Digital Officer will be the most excitingstrategic role in the decade ahead and IT leadershave the opportunity to be the leaders who will

define it.“The Chief Digital Officer plays in the place where

the enterprise meets the customer, where therevenue is generated... They’re in charge of thedigital business strategy. That’s a long way from

running back office IT, and it’s full of opportunity.”Gartner

“The Chief Digital Officer will be the most excitingstrategic role in the decade ahead and IT leadershave the opportunity to be the leaders who will

define it.“The Chief Digital Officer plays in the place where

the enterprise meets the customer, where therevenue is generated... They’re in charge of thedigital business strategy. That’s a long way from

running back office IT, and it’s full of opportunity.”Gartner

Examples of CDOs who became CEO, include:

Michael Bloom: Former CDO at Wenner Media, now CEO atthe Guardian News & Media, North America

Paul Gunning: Former CDO at Tribal DDB and global CDO forDDB, now CEO at DDB Chicago

Jean-Philippe Maheu: Former CDO at Oglivy & Mather,became CEO at Bluefin Labs, currently Managing Director forGlobal Brand Strategy at Twitter

Charlie Redmayne: Former EVP and CDO at HarperCollinsPublishers, now CEO at HarperCollins UK

Examples of CDOs who became CEO, include:

Michael Bloom: Former CDO at Wenner Media, now CEO atthe Guardian News & Media, North America

Paul Gunning: Former CDO at Tribal DDB and global CDO forDDB, now CEO at DDB Chicago

Jean-Philippe Maheu: Former CDO at Oglivy & Mather,became CEO at Bluefin Labs, currently Managing Director forGlobal Brand Strategy at Twitter

Charlie Redmayne: Former EVP and CDO at HarperCollinsPublishers, now CEO at HarperCollins UK

Chief Digital Officers’ knowledge is so highlyregarded in the USA that in 2013, Starbucks CDOAdam Brotman joined the Board of Neiman Marcus.

Chief Digital Officers’ knowledge is so highlyregarded in the USA that in 2013, Starbucks CDOAdam Brotman joined the Board of Neiman Marcus.

“Over the next 5 years, mining executivesbelieve digital will improve companyproductivity (73%),reorganize operations (65%)& optimize the supply chain (58%).”

Accenture survey 2014

“Over the next 5 years, mining executivesbelieve digital will improve companyproductivity (73%),reorganize operations (65%)& optimize the supply chain (58%).”

Accenture survey 2014

“4 out of 5 executives are usingdigital technologies across IT,business operations, financeand HR.”Accenture survey 2014

“4 out of 5 executives are usingdigital technologies across IT,business operations, financeand HR.”Accenture survey 2014

“Companies that do notembrace digital will lose theircompetitive position and mayface extinction, according to88% of respondents.”Accenture survey 2014

“Companies that do notembrace digital will lose theircompetitive position and mayface extinction, according to88% of respondents.”Accenture survey 2014

What does it take to become a CDO?•Online marketing and social media expertise. Here the emphasis is ondriving brand awareness, brand activation and consumer engagement.These CDOs are sought after by consumer-branded goods and servicescompanies.

•E-commerce & transactional expertise. The focus here is on drivingtraffic, conversion and revenue. These CDOs are sought after bycompanies involved in e-commerce, such as e-tailers and manufacturersthat move to direct sales. These CDOs require change managementcapabilities & the ability to manage channel conflicts.

•Transformative product & technology capabilities (i.e., analog todigital). These CDOs are sought after by traditional media companies andrequire change management capabilities that can impact the wholecompany. - Source: RussellReynolds

What does it take to become a CDO?•Online marketing and social media expertise. Here the emphasis is ondriving brand awareness, brand activation and consumer engagement.These CDOs are sought after by consumer-branded goods and servicescompanies.

•E-commerce & transactional expertise. The focus here is on drivingtraffic, conversion and revenue. These CDOs are sought after bycompanies involved in e-commerce, such as e-tailers and manufacturersthat move to direct sales. These CDOs require change managementcapabilities & the ability to manage channel conflicts.

•Transformative product & technology capabilities (i.e., analog todigital). These CDOs are sought after by traditional media companies andrequire change management capabilities that can impact the wholecompany. - Source: RussellReynolds

“CDO candidates should be familiar with web,mobile and social media. They should be able toplan and execute long-term strategy arounddriving customer awareness, engagement,experience and monetization... They should haveexperience developing new channels & businessmodels, as well as innovative products andservices. The CDO also must be tech savvy;though knowing how to code may or may not berequired, the ability to manage developers & askthe right questions is a minimum requirement.”

“CDO candidates should be familiar with web,mobile and social media. They should be able toplan and execute long-term strategy arounddriving customer awareness, engagement,experience and monetization... They should haveexperience developing new channels & businessmodels, as well as innovative products andservices. The CDO also must be tech savvy;though knowing how to code may or may not berequired, the ability to manage developers & askthe right questions is a minimum requirement.”

“74% of business executivessay their company has adigital strategy.But only 15% feel they havethe skills & capabilities toexecute it.” – Forresterresearch 2014

“74% of business executivessay their company has adigital strategy.But only 15% feel they havethe skills & capabilities toexecute it.” – Forresterresearch 2014

“9 out of 10 executives said that abusiness strategy that incorporatesdigital technology will revolutionize theway they do business to a degreesimilar to the advent of the Internet inthe 90s”

Accenture survey 2014

“9 out of 10 executives said that abusiness strategy that incorporatesdigital technology will revolutionize theway they do business to a degreesimilar to the advent of the Internet inthe 90s”

Accenture survey 2014

Knowledge of Digital Marketing is vital forcompanies seeking to stay relevant. ITand Marketing departments both needthis skill set in order to collaborate forgreater company prosperity in today’sdigital world.The Chief Digital Officer comes from an ITor Marketing background. All they need isa solid grasp of Digital Marketing.

Knowledge of Digital Marketing is vital forcompanies seeking to stay relevant. ITand Marketing departments both needthis skill set in order to collaborate forgreater company prosperity in today’sdigital world.The Chief Digital Officer comes from an ITor Marketing background. All they need isa solid grasp of Digital Marketing.

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