Digital Transformation is still Technology-First, People-Second
The Altimeter report about the state of digital transformation by Brian Solis is always packed with valuable insights. This has also happened this time.
For the latest report, more than 500 executives around the world were surveyed to understand where companies are in the digital transformation, what challenges they are facing, how they can measure the ROI of their initiatives, and more.
The results in 2016 show again, that the digital transformation is still a technology-first intention. „But, unless digital transformation takes a technology-second and a customer/employee first approach, investments will be unaligned with market evolution and more importantly, human behaviors, preferences and expectations.“, says Solis. He thinks, that technology can only get part of the job done. You need people. „And, like technology, people are changing“.
Here are some key findings of the report. You can download the full report at: http://www2.prophet.com/The–2016-State-of-Digital-Transformation
Customer Experience (CX) continues to drive Digital Transformation efforts
The top driver of digital transformation:
Evolving customer behaviors and preferences (55%)
Growth opportunities in new markets (53%)
Increased competitive pressure (49%)
More and more companies are mapping the digital customer journey. In 2014, only 25% of companies undergoing digital transformation had mapped the customer journey and had a clear understanding of new or underperforming digital touchpoints. Yet, 88% cited CX as the driver for change.
Today, 54% of the survey respondents have completely mapped out or are in the process of mapping out the customer journey (within the last year).
The top 3 digital transformation challenges
Understanding behavior or impact of a new customer (71%)
Lack of data or ROI to justify value of digital transformations (69%)
Risk management, compliance, and/or legal complications (67%)
How do companies measure the success of digital transformation?
Many companies turn to traditional metrics to help validate the success of new investments.
Customer Satisfaction (NPS, CSAT) (28%)
Web traffic (27%)
Who Owns Digital Transformation?
Digital transformation is largely led by the CMO (34%) and not the CIO/CTO (19%)
What´s the Long-Term Vision of Digital Transformation?
Most companies are focusing on the immediate horizon. Digital transformation seems to be driven by short-term plans, as most companies don´t have a multi-year roadmap. Just 29% though about the long-term evolution of their digital transformation.
In 2016, innovation has become a key priority in digital transformation efforts. This trend is rapidly gaining momentum as companies look to the startup ecosystem as a means to innovate and tap into the new expertise and talent often missing from more traditional organizations.