Avaya is a leading provider of solutions that enable customer and team engagement across multiple channels and devices for better customer experience, increased productivity and enhanced financial performance. Its world-class contact center and unified communications technologies and services are available in a wide variety of flexible on-premise and cloud deployment options that seamlessly integrate with non-Avaya applications. The Avaya Engagement Environment enables third parties to create and customize business applications for competitive advantage. Avaya’s fabric-based networking solutions help simplify and accelerate the deployment of business critical applications and services. For more information, please visit www.avaya.com.
At Enterprise Connect 2014 last week, a mock Request for Proposal (RFP) was held. This is a simulation of the large contracts that companies and governmental agencies will put out for bidding by vendors, who compete on providing the best technology architecture, features and total cost of ownership (TCO, typically over a 3-5 year period).
I called it ‘The Game of CIOs,’ in homage to a favorite TV show, when I wrote about the RFP competition last year. Avaya did well then, winning one of the three RFPs, deploying an all-new on-premises UC system for 2,000 employees, and scoring among the top in the other two competitions, including beating Cisco in the crucial RFP for deploying UC on top of an existing PBX.
Rob McMaher, chief architect and consultant in the Office of the CTO at Avaya, oversaw Avaya’s entry last year and this year. This year, Avaya placed second in the competition overseen by UC consultant David Stein for the on-premises UC RFP, again, beating out Cisco, he said. More impressively, Avaya took first in the RFP for cloud-based UC for 2,000 employees, beating out Alcatel-Lucent, Shoretel and Thinking Phone Networks.
McMaher said Avaya won on technical grounds because of its reliability (better than five 9s uptime), elegant design and all-inclusive stack of products down to the networking gear and session border controllers, while our suite licensing helped us win on TCO.
As a cloud solution, it was assumed that some portions such as the telephones would be purchased, while most of the external data center-based services would be leased.
If you’d like to learn more about our cloud offerings, download the entire deck here from SlideShare. And look for the Cloud guidebook to be published by Avaya next month.
In a 2011 webinar, Gartner Research Vice President Laura McLellan boldly said that by 2017, the CMO would spend more on IT than the CIO. Now that we’re just shy of 2017 (how time flies!) the question is: will this statement become reality, or yet another castaway on the island of false predictions? I believe this fast rise of the CMO as a major influencer of IT spending is in fact a reality.
If you think back (even as recently as 10 years ago), organizations didn’t use much marketing technology in order to achieve their objectives. Just 10 years ago, marketing technology platforms like Marketo and HubSpot had just been founded and were in their primal stages. Facebook was a novel concept that was still only offered to college students. The first iPhone wouldn’t be introduced to the world for another year.
Back in the day, marketing teams didn’t have organizational transparency or seamless access to customer data like they do today. Instead they’d put an ad in the newspaper, or they might pay to rent billboard space and display their toll-free number. Barely any systems were connected and, more importantly, there were virtually no platforms that enabled customer data to be seamlessly collected or shared for marketing purposes. It makes sense, then, why the CMO had little insight into technology processes or control over spending.
But then we saw the rise of technologies like cloud, mobility, social media and big data … and everything changed.
Suddenly, the end-to-end marketing experience was tied together through technology. We began seeing new tools specifically designed to enhance digital media, social media marketing, and mobile marketing, for example. Most importantly, this new state of marketing technology was fueled by big data. How much data? Just consider that last year, Facebook users were liking nearly 4.2 million posts per minute. On Twitter, users were creating almost 350,000 new posts per minute. Customers were downloading an average 51,000 apps through the Apple App Store per minute.
That’s a lot of data, and it all drives the customer communications experience that the CMO is responsible for. Think about it: among these millions of daily interactions are customers engaging and communicating with their favorite brands. Every action, reaction, interaction, transaction … it all builds customers’ digital footprints. It’s vital that marketing teams have necessary technology that enables them to strategically leverage this data in order to deliver meaningful and contextual customer communications experiences.
The rise of these technologies has transformed the traditional face of marketing and, subsequently, the role of the CMO. Research firm Deloitte puts it perfectly: “Once the leader responsible for creativity and brand, today’s CMO has vast and complex responsibilities reaching far beyond traditional marketing—now spanning technology, analytics, growth and, above all, measurable impact.”
Among the greatest of these “vast and complex responsibilities” is enhancing the customer communications experience as the major buyer of marketing technology. To keep up with today’s rapid pace of innovation, companies must invest in technologies that enable customer communications experiences enterprise-wide, and they should entrust their CMOs to lead this spending initiative.
CMO vs. CIO: Not So Much
Do a quick Google search for “CMO vs. CIO” and you’ll see all sorts of results that discuss the apparent power struggle between these two key players. While it can’t be denied that the CIO does in some ways hold a unique position of power, I don’t think the answer is a battle between these executives to see who comes out on top.
Rather, I believe these changes mark a new and very significant partnership between the CMO and CIO. In today’s smart, digital world, marketing and IT have become interdependent. The CMO may now be the major influencer of technology purchasing decisions, but the CIO is needed to ensure all underlying infrastructure is efficiently running to support these technology investments. CIOs may not wake up every morning wondering how they can better nurture customer relationships, but they still play an integral role in supporting the CMO.
Just consider the drastic importance of security. One of the greatest responsibilities of the CIO involves implementing the highest security measures and taking every security precaution possible. As cloud, mobile and social continue to drive digital consumerism, security has become more top of mind than ever before. Customers must be able to trust that their sensitive data is being securely processed and safeguarded by the brands they love to engage with.
This is why we’re now seeing more forward-thinking companies innovating the role of CMO to work alongside the CIO and other collaborative players. Just consider that 80% of companies now employ a chief marketing technologist—a culmination between the CMO and CIO—according to a recent CMO spending report from Gartner.
Does this mean that some CIOs will need to shift from a position of power to one that serves the needs of their company through different lines of business? You bet it does. But this doesn’t mean there has to be a classic power struggle. It simply means CIOs need to embrace change and perhaps wear some new hats in order to drive better business outcomes.
For example, last week I had a meeting with the Vice President of IT at Kroenke Sports and Entertainment, Rick Schoenhals. During my visit, he walked me into a room where I saw eight data analysts sitting at a table, each mining data. He explained to me that these data analysts were members of his IT team who work closely with their marketing department to make data accessible and drive the customer experience using that information. The team still has traditional IT responsibilities but, as the department with the most access to customer data, the company realized that the role of IT needed to evolve and work hand-in-hand with marketing.
In the end, it seems there are more implications for today’s CIOs than there are for CMOs. CMOs should be major buyers of marketing technology, and CIOs need to work alongside them to drive the heart of business—the customer communications experience.
2017, we’re ready for you.
5 Things CIOs Must Do Immediately to Stay Relevant in Today's Environment
In most organizations today, CIOs are being asked to define in plain terms disruptive trends like IoT, Cloud, Big Data, analytics and others. CIOs are also expected to figure out what these trends mean to their organizations and go the last mile of transforming these inevitabilities into real business opportunities.
This is a new role for CIOs, who had previously just been in charge of managing IT and day-to-day operations. The CIO and his or her team are no longer the “back office.” Businesses assume a lot more from IT today, and the CIO is expected to add commercial value to their organization. In fact, the CIO is at the heart of this digital transformation.
When a CMO is being pressured by technology-empowered customers–whose knowledge of the company’s products might exceed their own–digital business engagement becomes the CMO’s main strategic imperative. If the company doesn’t adopt appropriate digital tools, chances are customers will leave. In this scenario, the CMO has a choice: turn to the CIO, or get external help.
Let’s look at the top 5 things today’s CIO must start doing immediately to continue being relevant to the modern organization:
#5: Accept and Own
The debate over whether today’s successful organization needs to have a solid digital strategy is gone, so accept it, own it, and drive it.
Who better than the CIO knows how to bridge the silos in their organization’s functional departments, create seamless digital touchpoints, and eventually, build an omnichannel experience that delivers a consistent, world-class customer engagement platform?
If you have a solid information and communication technology strategy that details how to efficiently use current technologies, go ahead and own the digital strategy. It starts and ends with the customer–how else can the enterprise experience top-line growth?
#4: Have an Open Mind
CIOs must take a hard look at how effective their business unit is. What is the CMO’s objectives? How do those objectives line up with Finance? It’s not all about cutting costs! The CFO will be convinced if sustainable growth and profitability patterns are proven.
The CIO’s job is more than pushing EDM campaigns, or requesting discounts for IT projects. The CIO must understand, align and drive the realization of the big picture in every strategic function of the organization. In a recent report, the Economist found just 37 percent of CIOs consider incorporating new technologies in their business a “high priority.” While being risk-adverse is not always bad, it can severely impact innovation.
#3: Create “Business Engineers”
CIOs must find advocates for change inside their organizations. That process begins inside the IT department, but if the CIO looks hard enough, they’ll no doubt find additional change agents across the business. For transformation to happen, the CIO must engage constituents across the company, changing the mindsets of not only their direct reports, but regional offices overseas. It’s time to create “business engineers,” who can help make that transformation a reality.
#2: Consider an Advisory Board
Gary Wimberly, the CIO of Express Scripts (the 20th-largest company on the Fortune 500) is a strong advocate for having trusted advisors who are capable of enhancing throughput and helping the CIO improve the rate of innovation. Wimberly believes his advisory board helped Express Scripts lower the cost of IT across the board.
CIOs must choose their trusted advisors carefully, and evaluate those relationships regularly. In research done by CIO magazine, 46 percent of CIOs said they considered their vendors truly strategic partners–defined as “an important vendor that has gone beyond effective delivery of systems and services to become a consistently transparent, responsive and trusted collaborator.” It’s important for CIOs to build an advisory board who they can rely on to support them in realizing their vision, while also re-electing when necessary.
So go ahead and elect your “advisory board” who you can always rely on to support you in realizing your vision, but re-elect when necessary.
#1: Believe in Yourself
Change is inevitable, and if not managed well, the results could be catastrophic. Who can understand and create value from a company’s IT investments if not the CIO? The company can talk about the digital transformation, and draw their customers’ digital journey all they want, but the only person capable of acting on the digital business and driving disruptive change is the CIO.
In a white paper released by Earnst & Young, researchers say they believe CIOs are the most capable to handle digital change–and why not? IT sits at the heart of many business units, from marketing and HR to supply chain management, and is uniquely positioned to lead change inside the organization.
At the 2015 Gartner Symposium/ITxpo Middle East on May 19-21 in Dubai, CIOs will learn how to transform and adapt to the changing world around them and how to remain not only relevant, but an essential asset to their organization. I and a number of my peers have built a track record in helping CIOs and organizations transform. Drop by and have a chat with the Avaya team.
Avaya CEO Kevin Kennedy at Enterprise Connect 2014: How Fabric Connect Eliminates Network Suffering
The demands have never been higher, as an explosion of applications over a multitude of devices call for ever-growing bandwidth. People want voice, video and apps, and they want them now.
That was certainly evident at the 2014 Winter Olympic Games in Sochi, where Avaya provided a 54-Terabit infrastructure upon which the crucial Olympic Family network rested—delivering 36 channels of live TV and Internet connectivity to athletes, officials and journalists.
“Sochi was a success in simplicity,” said Avaya President and CEO Kevin Kennedy, during his keynote address this week at Enterprise Connect. “We handled the equivalent of three Super Bowls-worth of traffic for 17 days.”
Analyst Zeus Zerravala agreed: “This is where the industry needs to put more focus.”
Each Olympics brings fresh networking challenges. At Sochi, tens of thousands of devices connected to the Olympic Family network each day. This time around, roughly 70 percent of all traffic was wireless. Just four years ago, at the Winter Olympics in Vancouver, the ratio was flipped, with roughly 70 percent of network connections being fixed.
“Sochi was a bold set of choices, to cap the status quo and to move to an aggressive and application-friendly future,” Kennedy said. “Applications are what it’s about. That’s what people use, that’s where the velocity is, and that’s where the money is. That’s our user experience.”
Networking has traditionally been monolithic, with legacy companies building the entire technology stack. That rigid networking design may have worked in the past—in a world with strict client-server computing—but they struggle to handle today’s dynamic, application-driven demands.
“From the communications layers, to the applications layers, today, we are be-riddled with a constellation of applications, each with their own administrative domains,” Kennedy said. As a result,“many of us find ourselves in an unsustainable operational IT cul-de-sac…one that stalls our ability to roll out applications. Our complexity, after three decades of client-server computing and walking into a world of publish-and-subscribe applications – is hitting an unsustainable moment in time.”
The monoliths of the past are being broken down, particularly as various slices of the networking stack become commoditized, making technology more affordable.
“It costs money to do these things and when you do an Olympics, you don’t have an unlimited amount of time,” Kennedy pointed out. “If you don’t meet the schedule or it doesn’t work, everybody knows. The choice was: Do we continue the status quo? And the status quo is one that we in the enterprise world are familiar with.”
The solution was Avaya Fabric Connect, which uses network virtualization and cloud computing to create an easily-scalable networking solution.
“It’s an edge-only configuration,” he explained. “Define your service. It’s built on a protocol called Shortest-Path Bridging, which starts with the belief that you have ubiquitous Ethernet; you have ubiquitous mobility. You have V-LANs that scale from 4,000 to over 16 million, and now I can establish a service layer, administer it once, and have that service roll out across my network. You remove the number of steps; you remove the number of errors.”
The result was a “a great and stunning performance: 100 percent uptime. Six 9s availability,
one 9 improvement over the prior Olympics. 3-to-1 peak average.”
So is there still room for innovation and growth?
“I think the industry is ready for yet one more wave of productivity,” Kennedy said. “That tends to be an infrastructure today not even managed by many of our CIO infrastructures. Every software piece of infrastructure today has to enable itself, as well as applications in multimode environments, whether it be cloud, hosted, or just virtualized.”
The IT infrastructure must be application-friendly to enable all of these.
“Our job is to make sure we create more oxygen, so that those applications have a friendly IT environment, so they can prosper and grow,” Kennedy said. “You should expect from Avaya that we will continue to give you the opportunity for simplification.
“Whether it’s acquisition costs, operating costs or total cost of ownership, the impact to you can be very, very significant in terms of savings over the status quo,” he continued. “These are the opportunities Avaya is trying to deliver to you each and every day.”