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The role of the CMO is more invested in technology than ever before, and the CMO has no choice but to engage with the CIO and align business and technology objectives. The key to success between a CMO and a CIO is how the two roles can collaborate around the data.
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Related reading: How CMOs can leverage the data of retail networks to drive better results for their organizations.
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On the surface, there is a perceived tension between the CMO, the CIO, the rest of the executive team, and Data. CMOs need to look for ways to leverage customer data to deliver a better and highly tailored experience to customers. CIOs need to ensure that business use of data is compliant, secure and in accordance with best practices. They need to assure the board that the risk from the data is minimal.
“Understanding that global data policies and regulation are ever-evolving, CIOs must plan around regulation effective today, and what may be adopted in the future,” said Melanie Hoptman, APAC chief operating officer at LiveRamp. “By adopting a forward-looking approach to privacy and security, CIOs will establish a sustainable and sustainable foundation for data ethics practices across their organization.”
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In Europe, for example – often considered a leader in global trends when it comes to compliance law – GDPR alone has cost an average of over US$1 million, and in terms of penalties, fined companies more than € goes. 1 billion in 2021 alone.
However, as noted by LiveRamp, a data-enabled platform, CIOs exceed these requirements, and are now increasingly in a position where they can begin to focus on enablement for people like CMOs. “The good news for many CIOs is that they have already laid the groundwork through investments in data governance and migration to the cloud,” LiveRamp said in a recent report.
“While the passage and enforcement of GDPR, CCPA and other data regulations in California may once have been seen as seismic events affecting brands and publishers, they are actually more difficult for companies to organize their data, in data silos. They have been a compelling act to remove, and clearly document what they have access to and how they can be used.”
obtaining executive buy-in
Successfully capitalizing on a data opportunity requires a whole-business approach. However, LiveRamp notes that there are three particular executives with whom the CIO and CMO should collaborate most closely in order to ensure buy-in throughout the organization.
CEO and CFO – “Bring your stakeholders along your journey, proving the value of your strategy by being transparent on the metrics you’re tracking and how you’re moving forward. Inside you will find partners who are ready to step forward and help.” Chief Data Ethics Officer or General Counsel – “Working directly with these executives will also give you a sense of the types of leading-edge. The technologies they are ready to explore.” Chief Analytics Officer – “The right technical data management tools can significantly reduce the time it takes for marketing, data and analytics teams to accelerate insights that can drive innovation.”
The goal – at least in the initial example – would be to reduce the silencing effect in organizations. As explained on Tech Target, data silos cause many headaches for organizations and often make compliance more difficult:
Incomplete data sets, which hinder efforts to build data warehouses and data lakes for business intelligence and analytics applications.
Inconsistent data, which may result in inaccuracy in interacting with customers, and may affect internal operational use of data.
Less collaboration, when different teams have access to different data sets, there are fewer opportunities to work together and share data between departments.
Data security, the decentralized nature where data is stored when it is silent, can lead to increased security and privacy risks to the organization.
In this context, there is a natural alignment in the organization to address the challenges of siloing. The CMO seeks to free up data for better collaboration and customer interactions, while recognizing the need for CIOs and others to ensure that the organization adheres to best practices for an increasingly strict compliance environment.
The challenge, however, is that one line of business may not always want to transmit data to another line of business — and in fact this can become a compliance risk in itself. For example, the marketing financial team should not have access to elements of the data. CIOs should work with their counterparts such as CMOs and others to ensure that teams only have access to the data needed to drive their specific business results.
“Businesses should think of the CIO and CMO as equal champions whose partnerships make innovation possible,” Houptmann said. “When CIOs integrate customer service data with CRM data, marketers can create new opportunities for upsell, data monetization and better personalization, or buy data to send targeted offers to customers in-store or at the register. Increasing ROI for technology investments shifts marketing perception from cost-center to revenue-driver in either use case. This is a win-win for CIOs and CMOs.”
Rather than allow cross-business collaboration and de-silencing efforts to embrace de-silencing, LiveRamp recommends privacy-enhancing technologies (PETs) instead. “PETs represent an ever-growing group of cryptographic and encryption protocols—math, basically—that enable businesses to accelerate secure data collaboration, build customer intelligence, and maximize the value of data without relinquishing control or compromising consumer privacy. provide potential,” Hopptman said. ,
The LiveRamp platform provides organizations with the ability to collect first-party data as a single source, securely leverage third-party data in conjunction with first- and second-party data, and secure Collaborates both internally and externally by creating data. Partnerships with sources (silos) that would have been otherwise inaccessible.
In providing this capability to their organizations, CIOs can put themselves at the center of competence, giving CMOs access to the critical data they need for marketing efforts, and retaining the data at greater risk. Explaining the value of doing so for executives. best practices.
“With additional data regulation undoubtedly in our future, customer intelligence will only become more challenging, requiring enterprises to unify their internal data and build the infrastructure to support safe, secure collaboration with trusted external partners. growing,” Hopman said. “CIOs who are planning for this future now will be prepared to get a higher return on their current investment.”
Read the full report here.
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