[Infographic] The 2014 State of Digital Transformation by Altimeter Group

1. The 2014 State of DIGITAL TRANSFORMATION Based on a survey of digital strategists Digital transformation represents the next stage of business development. It will improve how companies work inside and out. But, without knowing how the customer - or, employee - is evolving, digital transformation is just new technology operating under the guise of change. What isDIGITALTRANSFORMATION? IT’S BIG...ENTERPRISE-WIDE As Altimeter Group studied digital transformation related to the digital customer experience, we found that, when companies explore digital transformation as a means to optimize customer engagement, they reap results. The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle. DIGITAL TRANSFORMATION DOESN’T MEAN DIGITAL INVESTMENT ALONE. IT DOES MEAN THINKING “DIGITAL FIRST.” THEDIGITAL TRANSFORMATION DIVIDE A Notable Disconnect: Digital strategists and executives are investing in digital transformation, but without insight or purpose. 88% of companies report undergoing a digital transformation But, only 25% have mapped the digital customer journey and have a clear understanding of new or underperforming digital touchpoints THE TOP DIGITAL TRANSFORMATION INITIATIVES Very important 80% Somewhat important Improving processes that expedite changes to digital properties, ie. website updates new mobile or social platforms, etc 19% 71% 25% Updating our website and ecommerce programs for a mobile world Integrating all social, mobile, web, ecommerce, service efforts and investments to deliver an integrated and frictionless customer experience 70% 24% 66% 29% Updating customer-facing technology systems 63% 36% Further research into our customers’ digital touch points, as there’s more to learn 80% of strategists surveyed report their companies are investing in improving processes that expedite change to digital properties such as websites, mobile, and social platforms. Technology is part of the solution but focusing on it is also part of the problem. 46% only aim to overhaul customer service to meet the expectations of digital customers If this is about customer experience, many businesses are missing the customer and the experience. WHO’S LEADING DIGITAL TRANSFORMATION? Change doesn’t happen in silos. This is a partnership where all groups should work together. 54% CMO 42% CEO 29% CIO/CTO 15% 5% CDO (Chief Digital Officer) CXO (Chief Experience Officer) THE TOP CHALLENGES FACING DIGITAL TRANSFORMATION Very important 63% Somewhat important 34% Changing company culture 59% Thinking beyond a “campaign mentality” in digital strategy efforts 32% Cooperation between departments and team silos 56% 39% 56% Resources (people, technologies, expertise) and budget allocation 39% 53% 42% Understanding behavior or impact of new connected customer 63% 59% Culture eats strategy for breakfast Stop confusing customer experience with hit and run campaigns see changing company culture as a challenge Think beyond a “campaign mentality” 56% 51% It takes a team to change but team dynamics work against working together Improving customer experiences starts with knowing the customer find cross- department collaboration difficult somewhat feel lack of data represents a challenge CHANGE AGENTS MUST MAKE THE CASE TO EARN EXECUTIVE SUPPORT, AND THAT TAKES JOURNEY MAPPING AND DATA 53% find understanding customer behavior an extremely significant challenge Purchase Evaluation 3 Commerce 4 2 Post- Pre- Commerce Commerce Influence Loop Experience Consideration Loyalty 1 Awareness Formulation Advocate TOP5 DIGITAL TRANSFORMATION 63% Improved customer satisfaction (ie. NPS) 75% Lift in engagement 53% Higher traffic 49% Increased lead gen/ sales 46% Greater conversions BENEFITS OF DIGITAL TRANSFORMATION IS BIG AND OFTEN MISUNDERSTOOD. Understand how people use technology first to inform your strategy and give your work a sense of purpose. THE KEY TO DIGITAL TRANSFORMATION IS THAT IT’S NOT ALL ABOUT TECHNOLOGY DIGITAL TRANSFORMATION COMES DOWN TO PEOPLE NO MATTER HOW DIGITAL TRANSFORMATION IS PURSUED, BUSINESSES ARE CHANGING ALONG THE WAY CHANGE HAS TO START SOMEWHERE www.altimetergroup.com/digitaltransformation