New study by Kellogg School of Management and Sapient sheds light on how marketing and IT partnerships improve results and speed innovation; offers best practices
4/3/2007 - CAMBRIDGE, Mass., and EVANSTON, Ill., -- A new study by Northwestern University’s Kellogg School of Management and Sapient (NASDAQ: SAPE), titled “The New Marketing – IT Power Partnership,” explains why it’s more important than ever that marketing and IT partner in their strategies. The report pinpoints new collaboration opportunities, best practices and common obstacles based on in-depth interviews with senior executives from Nissan, Celebrity Cruises, Hyundai Motor America and Vodafone.
According to the study, strong marketing-IT collaboration is required far beyond building Web sites and deploying interactive advertising: top companies use technology to ensure exceptional customer experiences across interaction points. The paper adds that tight alignment between marketing and IT strategies is required to speed innovation and measure value. However, most companies lag in this area.
“Kellogg School of Management research shows that 70 percent of organizations do not use advanced technological tools to guide their marketing campaigns,” said Mark Jeffery, clinical associate professor of technology at the Kellogg School and co-author of the study. “The most innovative companies have not only leveraged such tools, but have an ingrained commitment to collaboration between marketing and IT.”
These innovative and successful companies, according to the study, have three major characteristics in common:
- A primary focus on the business and marketing vision, supported by technology
- A fluid, agile approach to marketing-related technology: “think big, start small, scale fast”
- Integrated teams from marketing and technology: “work together, not just meet together”
“Executives today recognize that marketing runs on technology, but many are frustrated with differences in priorities and measures of success across marketing and IT,” explained David Bond, director of business and IT strategy for Sapient, and co-author of the study. “We found that when these functions within organizations have a common understanding of value, rapid innovation happens. New products and campaigns will evolve faster, customer experiences will complement the brand and relevant analytics will be available for planning and measurement.”
On the other hand, the study found three primary obstacles that deter IT and marketing alignment:
- The vision for enterprise-wide customer strategy is poorly defined
- Marketing and IT justify their investments differently
- CIOs and CMOs are experiencing a culture clash
The paper likens the relationship between marketing and IT to that of a power boater and sailor: while their destination may be the same, they don’t enter the water with the same language, background or equipment, and also have a different definition of “fast.” They need to understand the other’s perspective and challenges to reach the collective goal.
Sapient Marketing-IT Partnership Microsite
The white paper co-authors explain more via podcast interviews at Sapient’s Marketing-IT Innovation microsite http://www.sapient.com/powerpartnership, where the white paper is also available.
A recording of an American Marketing Association Webcast, with the co-authors and Sapient’s Chief Creative Officer, Gaston Legorburu, is available at http://www.marketingpower.com/webcast341.php.
About the Kellogg School of Management
The Kellogg School of Management at Northwestern University was founded in 1908 and is widely recognized as a global leader in graduate business education, drawing MBA students from more than 50 countries on six continents. In 2006, Business Week magazine ranked the Kellogg School the number one graduate school of business for marketing and the number three school overall in the United States. Since the biennial survey began in 1988, the Kellogg School has been ranked number one overall, five times.