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An impatient marketing or finance manager would, on the sly, secure some extra budget money and hire a contractor to build a little database that tracked mailing addresses or top-line financials. Slowly but surely, as the little database grew bigger and bigger, the manager would wedge the cost into her operating budget.
We call these people CostCenter Consumers, and they come in two flavors. Divas: These are high maintenance consumers who drive costs up after purchase. They tie up your call centers, incur costly returns, and generate other costs that occur below the gross margin line, which is harder to see.
With the swipe of a credit card, the customer support team can move to Zendesk or Desk.com; the HR team lives on Workday; the business intelligence group moves to GoodData or Domo; the finance team logs into Netsuite; the marketing department orbits around Marketo and Salesforce''s marketing cloud. Why is this?
Who at your company will be put in charge of turning buildings operations from a costcenter to a revenue center? But what happens when every single light fixture in all of your company’s facilities becomes a networked mini-computer with an array of sensors? New Sources of Revenue.
Who at your company will be put in charge of turning buildings operations from a costcenter to a revenue center? But what happens when every single light fixture in all of your company’s facilities becomes a networked mini-computer with an array of sensors? New Sources of Revenue.
Likely outcomes of the move to cloud include changing how products are designed; closer collaboration between the corporate IT department and other business units, including sales, finance and forecasting; and more customer interaction, even to a point of jointly developing products with their consumers.
You’ll often find customer relationship management within marketing, budgeting within finance, supply-chain management within operations, outsourcing within procurement, training within HR, and new product development within R&D. Business units come and go, but finance, HR, marketing, IT, legal, and R&D seem to last forever.
This is a break from the traditional paths of finance, sales, and operations to the top spot. CMOs need to define a broader vision for marketing as the orchestrator of the customer experience and prove that marketing is not a costcenter but a revenue generator. Over: CMOs take over new responsibilities.
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