5 Disruptions to Marketing, Part 1: Digital Transformation
Five disruptions have been identified which will transform the world of marketing. They are – digital transformation, artificial intelligence, vertical competition, micro-services and a suite of terms collectively titled as digital everything comprising wearables, augmented reality, virtual reality, internet of things and conversational interfaces. The transformation is mist apparent in digital marketing which now rules the roost. There are digital natives such as Uber, Amazon, Spotify, Facebook and Netflix which due to their savvy have established hegemonies in their respective line of business. They are the digital discoverers, or companies that set trends in digitization. Then there are digital laggards who have lost market share due to their lack of similar savvy. Over the next few years, several possibilities exist with regards to product and marketing. Either the two can continue their convergence by totally merging or they may split completely. Marketers here will be either in competition or collaborate with product managers to own the customer experience.
Who owns Digital Transformation? According to a new Survey, it’s not the CIO
It is commonly assumed that in order to foster digital transformation, the CIO or CTO needs to be at the centre, mapping all changes. However, a recent report cites that the CIO/CTO falls well below the CMO in owning digital transformation. This is because, this transformation is not solely a technological one, but the one of attitude. Here the mindset of the organization needs to be changed accordingly so changes need to be afoot at the HR level. Marketing is the one field at the forefront of maximum change from capturing intimate details of customers to innovative methods of digital marketing. Best results are attained when CMOs work in tandem with CIOs. Several organizations are struggling to break past this silo and thus not being able to attain the ultimate transformation sought. They are instead seeing disjointed efforts which aren’t working towards the common goal.
Digital Business Transformation Framework
Several changes are already afoot due to the ongoing digital transformation. There will soon be more than a billion smart phones globally, impacting organizations’ value chains and customers’ purchase patterns. This is leading to heaps of data being crafted. Technologies such as sensors, RFIDs, NFC, scanners, Bluetooth, beamers, smart watches, drones, robots and GPS have further contributed to the digitization of daily lives. This is creating a network effect, and this older jobs will not be completely lost, instead they will be reworked to modern needs. Digital intellectual assets are now being created with the vast data warehousing being done so that information can be processed at any time needed. Such automation is also causing cost-effective measures to flourish. New monetization opportunities are emerging such as what digital marketing has created. Customers are now experiencing a more holistic experience.
Four Trends in Digital Transformation
Some new trends have been observed in the world of digital transformations. One of them is the concept of borderless platforms that facilitate collaboration between various business units within a single organization or even between the firm itself with its multiple vendors. Information is now viewed as power, thus organizations are indulging in large scale data warehousing operations. Data is being stored before being processed to provide valuable business insights. The mass market advertising or promotion strategies are giving way to personalized marketing campaigns. Content is being curated keeping buyer personas in mind. A healthy competition is taking place for the best of talent recruitment. This is because all organizations have realized that there is limited amount of top brain power, but that needs to be engaged.