Embracing Systems of Engagement—and integrating them with your traditional Systems of Record—will prepare your company for the competitive future of Enterprise IT . That’s the message that I took away from this interview of Geoffrey Moore, world-renowned author and business consultant. Moore characterizes Systems of Record as what IT has built over the last few decades. These systems have delivered 80 percent of the functionality, whereas IT has barely scratched the surface of Systems of Engagement. CIOs are being asked to fast-track the implementation of Systems of Engagement. What options does the CIO have?
Moore explains that the demand for Systems of Engagement is driven by the need to collaborate in the disaggregated ecosystem we find ourselves in today. Compelling technologies are easily accessible in the social media that control our personal lives. We get so used to (and spoiled by) these technologies that we expect the same experience at work.
Consumers (read employees) drive the requirements for IT. Like other IT projects, CIOs would prefer to do the due diligence, make the business case, define the architectural blueprint, train their resources with a supporting infrastructure, define their Key Performance Indicators (KPIs), etc. But market forces require CIOs to bet on the supporting infrastructure even before knowing the KPIs!
What’s the CIO to do?
Just as I began wondering about the CIO's dilemma, I watched a presentation by Rich Vancil, Group VP of the Executive Advisory Group and Kathleen Schaub Research VP and CMO Advisory Service from IDC where they explain why Today's CMO becomes the Master of Data and share their perspective on 2013 IT predictions. Here’s what they have to say (paraphrased of course) with some of with my own thoughts in italics:
- The CMO and CIO begin the year as functional peers. They will end the year as either friends … or frenemies
- Marketing’s outlay for Automation (which drives IT) could approach 10 percent of marketing’s discretionary budget
- 50 percent of new marketing hires will have technical backgrounds
- 5 percent of CMOs will shift to a “mobile first” strategy
- CMOs will be pragmatic, shifting focus from big platform projects (System of Record) to linking access to audience needs (System of Engagement)
- Demand for greater insight into the revenue impact of marketing and sales will require older CRM systems (System of Record) to be replaced (with System of Engagement)
In a brave new (social) world of mobile interactions, enterprises need to be as social as their customers. The Systems of Engagement customers use (data) that can be informationalized by the CMO for the CIO to glean valuable intelligence that drives the implementation of the requisite infrastructure. There is no better validation than the voice of the customer to drive the implementation of the Systems of Engagement. No wonder Big Data has graduated to accepting The CMO as its new Master.
CIOs proactively engaging with their CMOs will effectively combat the forces of consumerization and position their Enterprise for 2020. Others will remain a System of Record – just like the systems they maintain.
Thus, CIOs must have a System of Engagement with their CMOs.
What forces drive IT in your enterprise? Is your enterprise as social as your customers? I’m interested in hearing your thoughts.