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What’s App. giving some previously unknown dudes in co-op workspace a valuation beyond their wildest dreams.000 downloads. the opposite has been true. the enterprise has yet to really crack the code on mobile development. For brands trying to ﬁgure out the mobile space. but because. Back in 2011. Words With Friends. big companies have had a diﬃcult time getting consumers to welcome them on to their Android and iOS devices. It seems like a new app goes viral every week. Draw Something. That was a grim headline for 1 . Deloitte found that 80 percent of branded apps struggled to get even 1. Despite entering the mobile game with massive consumer awareness and trust. Snapchat. ﬁve years after the launch of the Apple App Store. the watershed moment that gave business entrée to the deﬁning gadget of the 21St century. Instagram.Where is the branded equivalent of Snapchat? Where is the enterprise version of the vanishing-photo app with which iPhone users sent over one billion vanishing photos in just one year? We ask this not because brands should be in the business of sexting.
the diaper brand doohickey that doesn’t do. and enormous amounts of customer data all have done little to make a dent in the consumer apathy. A case in point is lingering ambiguity around a central organizational question: Who should own mobile app strategy? The CMO. and generally keep the enterprise rolling. ﬂashy agencies and development shops.023. make sales. It naturally takes enterprises some time to ﬁgure out the realm of the possible and then make it happen. Big budgets. mobile app strategy remains a work in progress. the airline app that won’t allow you to book a ﬂight. What’s to blame? Well. The app stores are littered with poorly-reviewed and little-used apps that were meant to help out folks who take orders. well. Breakout branded apps—and we’re excluding those created by media companies that have an unfair leg up over marketers of dog food and insurance policies—are still few and far between. anything. over time. Can you name ﬁve branded apps you use regularly? 127 Downloads How about three—and we’ll spot 1. served by an increasingly left-brained marketing department 2 . you have to remember the mobile revolution is only ﬁve years in the making.068 you Nike and Starbucks? The Downloads Downloads same goes for apps developed for employees. there’s not much to suggest things have changed. How many do you download only to delete them a day later when it comes up short on form or functionality? You know. 286 The point is this: For even the most sophisticated companies. It’s fair to say that too many have tripped over their own feet as they’ve struggled to organize around mobile. the rental car app that’s just a link to the company website that—curses!—isn’t optimized for mobile and won’t remember your 23-digit user number.mobile marketing operations and. But let’s not let enterprises totally oﬀ the hook.
If either side is to win the mobile game they’ll have to change and become more like the other. and CIO before concluding with some ways that eschew those legacy power struggles. The case study there is a company you might have heard of—Walmart. We begin our study with the C-suite denizen who at this moment time—and if you blink. CIO Cm O Our book’s structure is simple. 3 . The answer matters in no small part because marketing and IT come with two very diﬀerent sets of baggage.and an ever growing array of agencies? Or should the CIO. First we’ll discuss the respective cases for the CMO. rule the roost? That’s the question we’ve asked a number of leading thinkers to ponder in this eBook. the traditional buyer of technology and maintainer of servers and intranet. it might change—seems to be sitting in the catbird seat.
which oﬀers a fairly basic app with store locator and gift 4 . “Agile is our middle name.When we caught up with Amy Kavanaugh in early March. It’s already yielded the Doritos Locos taco. the VP-public aﬀairs and engagement at Taco Bell was still in the whirlwind of a new product launch.” said Kavanaugh. The lustily-awaited Cool Ranch Doritos Locos Taco had arrived in stores a day later than expected and the fast food equivalent of a riot erupted around the internet. an historic product launch that sold at a rate of almost one million per day in 2012. The new menu item is the next beefy/cheesy chapter in what’s turning out to be a storybook marriage between Taco Bell and Frito Lay.000 new restaurants over the next decade. Things are moving <em> muy rapido</em> at Taco Bell and the mobile experience is no exception. Riding its spicy shell. Taco Bell. referring to the project development methodology preferred by many top software companies and. increasingly. on corporate campuses far from Silicon Valley. the Yum Brands brand has become the fast feeder to watch as it plans to open 2.
Marketters. has made the shift from an advertisingled company to an insights-led one. That shift means one thing for mobile app strategy. “We did the logos. then this is a function that should sit in marketing. search. the branding. But bearing this responsibility augurs a new reality for marketing departments. “When I started in marketing. and therefore should oversee the increasingly important mobile app channel. the mobile merchant platform. is now in preliminary testing of a mobile ordering experience and has just signed an agreement with Cardfree. own the consumer insights and the brand experience. Now it’s all left brain.” “Suddenly they’re making software—a long way from the days when marketing was all about outsourcing ad campaigns to Madison Ave agencies.” 5 . the colors of the website. according to Kavanaugh. CMO of Lattice Engines. Increasingly in bigger companies you have marketing technologists embedded. it was the arts and crafts department. Why? Mobile ordering is what the consumer wants and Taco Bell. which oﬀers big data analytics for sales and marketing departments. Suddenly they’re making software—a long way from the days when marketing was all about outsourcing ad campaigns to Madison Ave agencies. the argument goes. They know about HTML. how to build an app.card functionality as well as menu and nutritional informational. ” Kavanaugh is part of a growing chorus that favors a marketingled mobile app strategy. Everyone on my team is a digital native.” said Brian Kardon. They have to become more tech-savvy and comfortable with building and maintaining a rigorous development roadmap. “If you’re driving an insights brand and responding to and co-creating experience with consumers and identifying their needs.
CTO at Ion Interactive and proprietor of the ChiefMarTech blog. The association could help CMOs gain tech credibility. skillsets. Forrester analyst Michael Facemire observed that the digital agencies once best known for design acumen are getting better at working with backend technology. but this comes with a caveat that echoes throughout many of the other conversations we had.The rise of the marketing technologist—or creative technologist in many an agency’s lingo—shows just how far we’ve come in blurring the lines between what used to be two very distinct departments. The marketing department needs people who get tech—and vice versa. You need someone on the team who speaks both languages. helping apps with sharply-designed front ends add more functionality and value through connections with the vast amounts of data present in the enterprise. and worldviews. He believes that “marketing has to own the experience and to do that they have to take responsiblility for the technology. “I don’t think it works when marketing sketches out the experience and throws it over the fence for IT or some third party to build. “The CMO is trying to branch out and not just be about pretty pictures 6 .” It’s logical that marketing is responsible for mobile app strategy. has been studying this dynamic for years. “Marketing folks don’t even know what’s possible with the technology just as tech folks might not understand how it impacts experience.” he said.” Who marketers partner with is another important factor in how successful they’ll be in owning mobile. Scott Brinker. Marketers have to earn it by really immersing their organizations in technology.
we’re more eﬀective because we all speak the same language. marketers shouldn’t be automatically handed responsibility for mobile.” To his mind.” said Mindjet CMO Jascha Kaykas-Wolﬀ. Agile is about fast sprints.. testing and learning.. the San Franciscobased creator of work manageement software. iterating and reiterating. “Adopting Agile is part and parcel of the changes that have washed over the marketing business. “When we sit down with an engineering team. “The idea of having a big campaign. Said Kaykas-Wolﬀ.” Another common ground can be Agile development. They have to earn it by educating themselves and 7 . only. You have to operate diﬀerently and one of the models to pull from is software deployment. people actually use it.anymore. unlike Espeeranto. pumping a bunch of media against and then pulling it down six months later doesn’t really work. the project management philosophy that may end up being the Esperanto of a properly integrated marketingtech world. who are not just pretty-picture guys but can work with back-end systems as well.” Facemire said. At Mindjet. the marketing department has adopted a version of Agile that has them operating in three-week sprints.” Adopting Agile is part and parcel of the changes that have washed over the marketing business that as for decades acclimated to long planning cycles and communications strategies that were hatched behind closed doors and shoved out into the world with little if any room adapting to customer feedback. This can become a common ground. “I can reach out and work with folks who have technical chops.
there are things that IT just does better. Kaykas-Wolﬀ said marketing may end up owning app strategy. then you're in a horrible position to raise your hand to take over mobile strategy. Now it’s organized by a steering committee for mobile comprised of a number of senior executives including the head of product and Kaykas-Wolﬀ. ownership doesn’t preclude collaboration with other parts of the enterprise.” Until about eight months ago. That is driven by the back-end. least of all IT.showing that they get how software is made rather than try important ways of thinking and doing from old marketing models. “They are important for brand and consumer protection. a really strong IT team and partnership.” Kavanaugh said. In any event.” 8 . If you're not. Mindjet’s mobile operations was led by the product team. Injecting marketing and other functions into the mobile development process ensured that Mindjet began to better focus on its paying customers and even led to a new product. Or it may not. You have to be empathetic to how you develop and deploy software. And. “There are requirements in terms of privacy protection and securitythings that I would have no business being involved in. no matter the organization. “If you approach mobile strategy like it's a bunch of campaigns you’re destined for failure. Over time.
of Forrester. has lingered. Most people we talked to don’t think that your average CIO is cut out for the job. a number that includes some of their own. CIOs and the IT organizations they oversee are historical symbols of corporate slowness.There’s good news and bad news for the CIO who wants to own mobile strategy. “The oﬃce of the CIO was never thought of as an innovation center. you’re constantly issuing updates. You look to IT to keep things up and running.” This is a perception that. With mobile. perfecting and innovating. “It’s been perceived as a cost center hoping to get stuﬀ done at a containable cost. rightly or wrongly. Unfortunately. Mobile success requires speed and openness to a more iterative way of doing things. Let’s get the bad news out of the way.” said Facemire. 9 . You don’t look to IT for innovation. optimizing.
“CIOs are caught up. now ranks a paltry sixth on a list of priorities that’s topped by analytics and business intelligence and mobile technologies. We’re just entering a third phase that’s a result of dissatisfaction of those solutions. The legacy power struggles need to go away. “IT is there to help the business. compared to just 50 percent four years before. IT should help with the buildout or with sourcing the engineering development. until recently the be-all and end-all of the job. virtualization. CIO of HubSpot. In the ﬁrst. but they’re increasingly tasked with building new channels and markets. Here’s the good news. A 2012 survey from Gartner captured the change roiling this geeky corner of the C-suite. that they are no longer mere shepherds of a just-say-slow IT department.” said Jim O’Neill. an analyst at Altimeter Group. a marketing SaaS company based in Cambridge.“I'm heavily biased that the marketer should own it. This was followed by a period of disintermediation during which enterprises went with line of business-led initiatives that often ended up with purchases oﬀ-the-shelf solutions. And we’re playing catch up to consumers.” Silva told us. but only at the direction of the CMO. IT management. “I haven't been able to quantify this in data points. There are indications that CIOs are taking on a broader role within their organizations. Mass. CRM and legacy modernization. They know what’s needed: building platforms 10 . breaks the recent history of the CIO role into three phases. but over the past six months or so the tide is shifting back toward the CIO. the CIO intensely focused on his own backlog and lost track of what consumers were doing tech-wise. Chris Silva. Sure. Seventy-seven percent of CIOs interviewed said they have responsibilities beyond IT. CIOs are still called upon to oversee security.
they need devices that combine the friendly interace of a consumer product with the back-end functionality that allows them to dip into enterprise systems where necessary. But how can he or she put an elbow to the ribs of the CMO humblebragging about how he owns consumer insights and user experience? The CIO does hold one card here: the employee.” Facemire said this is changing how CIOs think of their jobs. “With the number of mobile devices set to exceed the world’s population. we’re not going out on a limb in saying that understanding mobile is a key part of the CIO’s future. “The CIO. means what technology an employee uses in the workplace will be informed by the choices he makes as a consumer.” he said. “is trying to pivot and become the chief digital oﬃcer and become the center of not only information but of digital interaction. we’re not going out on a limb in saying that understanding mobile is a key part of the CIO’s future” 11 . As workers of all kinds—from salespeople to community managers to waitersget more mobile.across the organization so that everyone can beneﬁt from mobile in a way that’s consistent and fully funded and resourced. put simply. Although you might issue staﬀ a Blackberry. It’s important to not forget that an important user base for apps is to be found in the workforce and the CIO has. Dell Inspiron and an Outlook account.” And of course there’s no way to think of digital interaction without thinking of mobile. With the number of mobile devices set to exceed the world’s population. which. Happily. been charged with designing a technology experience just for that audience. for a long time now. the CIO has already been trying to make this marriage happen as he confronts the consumerization of IT.
according to one information chief who prefers to remain anonymous.” Among the keys to success for the CIO. “IT shouldn’t give up on metrics like security or process support simply to serve marketers’ metrics” “IT shouldn't give up on metrics like security or process support simply to serve marketers' metrics. Another advantage that CIOs also bring is a diﬀerent mindset to bear when it comes to metrics.” said Altimeter’s Silva. you're wasting your time and your money. Are you solving a user problem? If you're not or you're not focused on that. marketers can get snagged on soft but sexy metrics—say the number of reviews and stars in the App Store—and lose sight of bigger questions. It’s a trend that has any number of implications for HR. is not leading with technology and speaking the language of business objectives. but serving customers is probably going to be diﬀerent from serving folks internally. IT and legal departments. “You can take great expertise from serving customers and use 90 percent of that. Even an empowered CIO is faced with an unfortunate reality: no matter how expansively you view your role. an iPad and Gmail. In the worst cases. It’s given topics like good design and usability a higher proﬁle. One eﬀect of the Bring Your Own Device phenomenon is that it’s forced CIOs to better understand how workforces use technology and that’s a good ﬁrst step to understanding what consumers are doing. a good chunk of the job is 12 .employees are actually using an Android. Hiring IT people with broad technology stack knowledge who can sit comfortably next to marketing and design people on cross-functional teams also helps—as does a mindset that allows innovation to ﬂourish throughout the organization.
Innovation is often far down the list unless there’s a budget set aside for it. But that doesn’t mean innovation isn’t going on elsewhere in the organization—in other corporate functions or at the business units.” said our anonymous CIO. “Fighting this sort of shadow IT is not a prescription for success. I nurture it and advocate for it. I’m better served in leading from behind. this CIO remains a service provider who doesn’t wholly control her own agenda. I don’t blow the whistle. what’s a CIO to do? Snuﬀ it out and stay true to a command-and-control notion of IT or let so-called shadow IT bloom? The answer to some degree is a barometer of how well this CIO is cut out to run mobile app strategy and other operations that are inherently forward-thinking. It will come under my ownership. To a degree. “I allow it to thrive and allow seedlings to hatch out in the business units.about keeping the operation running and managing an endless project list. When that happens. or stomp my feet. It’s an eﬀective backdoor way for me to fund and create innovation. Ultimately that's going to come back to me.” 13 .
which in the company’s own words “combines the small structure and nimble nature of a startup with the resources of the world’s largest retailer. Galbraith was kind enough to walk through the logic with us.” After dismantling our entire thesis.” In short. It kind of felt like making a guy used to driving a Porsche take your pre-owned Hyundai out for a test spin.” said the VP-global products at Walmart. “I struggle to see why giving a marketing guy control over a software product makes any sense at all. the incubator 14 . “I'm an engineer by background. A company that began in the ﬁnal year of the Second World War has made itself into a tech player. Global eCommerce supplies the ginormous retailer’s business units with software solutions. Walmart does things diﬀerently than most Fortune 100 whose roots aren’t in technology.Ben Galbraith laughed lightly as he states his position on our CMO-CIO question. so my response is predictable. You’ve probably read about Walmart Labs. You see.com. establishing Walmart Global eCommerce.
” So the CMO or CIO question is no longer really a relevant one. We need someone who's focused on end-to-end customer experience.” Galbraith said. “the notion of marketing people owning the software is ridiculous but it's as ridiculous as the IT people owning the software. One who's focused on it from a business perspective and one who's focused on it from a product perspective. This is what is really behind those calls for more a technologically-savvy marketing department. rather than worry about old organizational silos. though as recently as two years ago it might have been because Walmart. remember that there are still lessons here that are universally applicable. Before you sniﬀ that what’s good for Bentonville can’t help your own 25-person shop.behind innovations like Polaris. the company’s own search engine. “the answer to the question on both sides is no. Acme C BEFORE AFTER “For us. For us it's actually two people.com had fewer product people in its ranks. It also means that discussion around how legacy roles can be updated doesn’t much apply. The second is putting software people in charge of software development.” Galbraith said. he said.” Asked whether this sort of thing is feasible for companies smaller than Walmart–which is to say almost every company in the world–Galbraith acknowledged the eﬃciencies that Walmart gets from its global girth. It’s easier to amortize the R&D when you’re a global player. making a crucial observation. you’re keeping the consumer at the center of things. The ﬁrst is that laser focus on the customer and her needs and desires. 15 . Now. “We’re very much a software technology operation. Fashioning yourself a software company means you’re relentlessly focused on innovation and.
asking how do we make sure we're doing it right and how are we cross-pollinating what we're doing on the inside? They've realized building the wheel ﬁve times doesn't help anybody. “Nothing works in isolation anymore. It is not preordained. “You’ve got to take the versus out. “They’re doing the work and acting as a tiger team. HR and other functions where need be. that is leading mobile throughout the organization.” Perhaps the CIO vs. And a lot of companies are talking about cross-functional constructions that include not only the marketing and tech but also legal. In the end.” 16 .” said Altimeter’s Chris Silva. neither marketing nor tech has to end up owning mobile. That’s not to say your small or medium enterprise is going to ﬁnd a pot of gold that will allow you to plow untold millions into proprietary software development.In the ﬁnal analysis. it may end up that Walmart’s experience is more widely applicable than you might think. CMO smackdown shouldn’t be a smackdown at all. ideally. “The CIO and the CMO are in the best case ceding their power in equal amounts to a center of excellence that is comprised of resources from both shops. Even if you’re still buying oﬀ-the-shelf—something Galbraith said Walmart would do more of if only oﬀ-the-shelf was better—there’s a point to be made here. speaking like a true purveyor of Doritos-Taco Bell mash-ups.” said Taco Bell’s Kavanaugh.
and custom business logic on a platform where it's free to get started and you only pay when your app is successful. He tweets at @matt_creamer. multi-platform support. The Atlantic.Written by: Matt Creamer is a writer and editor based in New York City. Build your backend today . push notiﬁcations. oﬀering 3rd party data integrations. the New York Daily News. where he is editor at large. The Awl. The New York Observer and other publications. Designed by: Jake McKibben & Miguel Gaydosh What is Kinvey? Kinvey makes a fully-featured Backend as a Service solution. He has written for Ad Age.
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