Forrester on Marketing Imperatives
Just how important is highly efficient and effective digital production to the future success of marketing organizations? A recent Forrester report, CMO Mandate: Adapt or Perish, (membership required) suggests that it’s extremely important. Specifically, as marketing leaders face up to macro industry trends, it’s clear that they must globalize their production capabilities.
- “Almost a third of marketing leaders are working with tighter budgets,” according to the report. Digital production best practices and offshoring are proven means to reduce costs while also enhancing quality. That means greater ROI for clients.
- Budgets are tighter because of lingering economic turmoil and uncertainty. And with marketing dollars increasingly allocated to digital, smaller budgets are here to stay for most companies. For marketing groups, it’s a matter of cutting costs and rethinking how they operate. As the report says, “Unproductive activity is always unpopular in business, but especially so during tough economic times … Marketers need to eliminate redundant activities from their global processes.” One way to do that is to centralize and offshore selected activities, like website development, email campaign management and digital asset creation, which some agencies have done. “Facing continued budgetary pressure, 32% of marketing leaders say that cost cutting will be a driver of their next restructure.” Again, we think digital production is particularly well suited to offshoring. Through efficient, standardized and repeatable processes, costs can be reduced, while quality and brand consistency are easily enhanced.
- Global restructuring is not just about costs, however. The need for increased agility and to become more adaptive are also part of the story, says Forrester. “Companies are restructuring marketing operations to … make global decisions more quickly… 75% of marketing leaders expect to reorganize their operations by the end of 2011.” This is a natural evolution for global enterprises and brand families. One could even say that marketing organizations have been late adopters of full globalization, when compared with, for example, IT, customer service and manufacturing. What is often overlooked is the huge opportunity globalization – and offshoring, in particular –presents for marketing organizations. It’s not just that resources cost less than they do in the U.S. or Europe. With the right resources in the right locations globally, organizations can respond to opportunities more quickly and flexibly. Intensifying cost pressure. The need for agility and flexibility. The imperative to execute globally. These are among the most powerful megatrends shaping the digital marketing landscape today – and offshoring digital production based on proven best practices is an excellent way to navigate them.