Technology as Strategy

1. Technology as Strategy thedatabank Users Conference September, 2013 Tom Lehman Lehman Associates, LLC Lehman Reports

2. Lehman Associates, LLC • Strategy Consulting and Research Firm • Technology strategy • Web / Internet / Social Media Strategy • Customer Satisfaction, Market & Member Research • The Lehman Reports™ industry research series • Nonprofit and Supplier Companies • Founded 1992, Alexandria, VA

3. AMS Use and Satisfaction 2006-2013 • AMS International: CA, AU, UK 2010, 2013 • Association Technology Study 2011-2013 • Donor Management Systems, NTEN, 2013 • New Snapshot survey series

4. Technology Landscape Map

5. Trends: At a broad level • Interactivity, not just information access • Engagement, not just communications • Community, not just networking • Mobile, going beyond remote access • Configurability replacing customization • Cloud-based, online rather than in-house • Technology as Strategy, innovation, success

6. Impact of Enhanced TechnologyCustomization Example Custom Coding Application Technology Complexity of Customization Configuration Time

7. Evolving Role of Technology ROI Potential Technology as Strategy Exponential Investment Technology as Tools Linear Cost Center Technology Introduction Investment

8. Innovation Scale Transformational Process Improvement Short Term Fixes

10. Obama: Technology as Strategy • Huge investments in big data and analytics, data-driven messaging and targeting • Predictive analysis, likelihood to vote for Obama, trends in voter preferences, identify at risk voters, continually updated • Cross-channel integrated marketing • Extensive online presence for key message delivery and positioning • Social media, mobile campaigns to engage through experience, convey campaign themes through experience • Highly targeted marketing, campaigns for specific, narrow segments • Micro-fundraising, adds up, reinforces connections and engagement

11. One Indicator Online Display Ad Impressions (MM)

12. Interlocking Content Marketing Highest growth and most effective models are in the overlaps Both internal and external perspective Circle of Engagement

13. Realizing One-to-One Marketing • Interest driven-marketing, content • Micro-segmentation • Predictive analysis, marketing tools • Dynamic content, deep personalization • Inclusion of behavior-based indicators • Role of crowd sourcing, Kickstarter as a planning / engagement model • Mass customization <Link >

14. The Promise of CRM • Greater knowledge / insight about donors • Alignment between organization goals and messaging and donor interests / expectations • In-depth understanding of trends, patterns, and variable interactions • Market segmentation and targeted services • Prediction and forecasting, anticipate needs and interests • Deeper engagement with constituents

15. The Promise of Engagement • Greater understanding of the dynamics of participation and giving • Increased visibility and awareness • Retention, loyalty, increased contribution • Word of mouth, personal fundraising • Advocacy, show up • Relevance in the large mix

16. Limiting FactorsCRM and Engagement • Data • Analytics • Expertise and Culture • Engagement Measurement • CRM Capabilities

17. CRM Big Data • 360 view of constituents, operations, marketing, advocacy • Deep data, multi-stream • A driver of integration to capture increasing levels of digital interactions • Giving / purchase patterns, correlations • Critical for CRM and other functions, but not actionable in its raw form

18. Data ChallengeAssociation Example Driving deep, two-way integration requirements Lehman Reports Association Technology, 2012

19. Internal Systems Integration • Donor Management Systems • CRM and data appends / overlays • Online and Offline Fundraising • Advocacy • Email • Analytics Tools • Website

20. Analytics • Turn data into actionable intelligence • Multivariate, longitudinal • Underlying drivers, trends, patterns • Decision information • Advanced reporting, dashboards, decision systems • Increasingly provided by third-party services

21. Advanced Reporting / BIChallenge Lehman Reports AMS, Association Technology, 2011-2013

22. Analysis Levels • Operational – looking back • Counting, one variable over time or other single measure, basic segmentation • Benchmark current against past, limited straight line projection • Analytical – looking forward • Multivariate • Influence of multiple variables, identification of key levers or inhibitors, advanced segmentation • Predictive analytics, useful for strategy and planning

23. Dashboards Use projected to double within 2 years Lehman Reports AMS, 2012

24. Measuring EngagementA form of segmentation • Scores from CRM, social media, other applications • In-house scoring / measurement scales • Separating meaningful indicators from a multitude of activities is challenging • Weighting activities • Frequent topic of conversation, subset have begun the process • Fewer understand the commitment involved • Potential payoff is high, however

25. Status: Measuring Engagement

26. Challenging, Early Stage Big Data in Commercial Firms While fewer than half of those say they have sufficient resources to make use of it Only one quarter collecting the data required

27. ExpertiseCultureCommitment

28. Mobile Another channel of access … …. Or something more?

29. Mobile Internet

30. Tablet as Primary Computer Business Insider Survey, 2012

31. The Multi-device Connected Segment

32. More than another Internet device • Significant differences in access models, User scenarios • More transactional, bursts rather than sessions • More immediate with more explicit triggers • Overlay of location and time • Takes place in the midst of multi-tasking • Tablets and phones offer different access models • iOS vs Android – different segments for online use • Marketing / promotion models change • Apps as browser replacements. apps versus HTML5 • Mobile First strategy worth considering

33. Technology as Strategy • Alignment – goals driving technology • Forward focus, what is possible • 360 donor view, in-depth knowledge • Greater personalization, one-to-one marketing • Integrated content, high value in the overlaps • Strategic investment vs. cost center • Organization outcomes, not IT results • Advanced management reporting / BI • Changing role for the CIO and IT

34. Technology-independent IT Strategy Planning • Resilient to rapid tech changes • Flexibility to adopt new models / tech • Importance of adoption cycles in technology decisions • Investment in platform, direction, capacity – positions for future needs Specific Technology All organizations should have a strategic IT plan, a vision and framework to guide technology investment

35. Changing Role of IT More about • Being a strategic resource to help leverage technology to achieve organization mission and goals • Management of the tech environment and providers • Big data, analytics, application integration • Technology education of possibilities, opportunities • A focus on outcomes, contributions Less about • Operating technology • Purely reactive support function • Application training • Focus on input and activities New opportunities for IT to be involved at a strategy level

36. Questions and Discussion Tom Lehman President Lehman Associates, LLC / Lehman Reports Alexandria, VA 703-373-7550 Tom@LehmanConsulting.com www.LehmanConsulting.com www.lehmanreports.com