The 2014 State of

DIGITAL
TRANSFORMATION

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.

Based on a survey of
digital strategists

What is DIGITAL TRANSFORMATION?

ITS 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
DOESNT MEAN DIGITAL INVESTMENT ALONE.

IT DOES MEAN THINKING

DIGITAL FIRST.
THE DIGITAL TRANSFORMATION DIVIDE

A Notable Disconnect:

Digital strategists and executives are investing in digital transformation,

but without insight or purpose.

88

But, only

of companies
report undergoing
a digital
transformation

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

Improving processes that expedite changes to digital

properties, ie. website updates new mobile or social
platforms, etc

Somewhat
important

80

19

Updating our website and ecommerce programs for a

mobile world

71

25

Integrating all social, mobile, web, ecommerce, service

efforts and investments to deliver an integrated and
frictionless customer experience

70

24

Updating customer-facing technology systems

66

29

Further research into our customers digital touch points,

as theres more to learn

63

80

36

Technology is part
of the solution but
focusing on it is also
part of the problem.

of strategists surveyed report their

companies are investing in improving
processes that expedite change to digital
properties such as websites, mobile,
and social platforms.

only

46

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.

WHOS LEADING

DIGITAL TRANSFORMATION?
Change doesnt happen in silos. This is a partnership where all
groups should work together.

54

42

29

CIO/CTO

CEO

CMO

15

CXO

CDO

(Chief Experience Officer)

(Chief Digital Officer)

THE TOP CHALLENGES FACING

DIGITAL TRANSFORMATION
Very
important

Somewhat
important

Changing company culture

63

Thinking beyond a campaign mentality in digital

strategy efforts

59

32

Cooperation between departments and team silos

56

39

Resources (people, technologies, expertise) and

budget allocation

56

39

Understanding behavior or impact of new

connected customer

53

63

Culture eats
strategy for
breakfast

see changing
company culture
as a challenge

59

42

Stop confusing
customer
experience
with hit and
run campaigns

Think beyond
a campaign
mentality

56

51

find crossdepartment
collaboration
difficult

It takes a team
to change but
team dynamics
work against
working
together

34

Improving
customer
experiences
starts with
knowing the
customer

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

Purchase

Evaluation

2
PreCommerce

Consideration

find understanding
customer behavior an
extremely significant
challenge

3
Commerce
4
PostCommerce

Influence
Loop

Experience

Loyalty
Awareness

1
Formulation

Advocate

63

75

Lift in
engagement

TOP
BENEFITS OF

49

Improved
customer
satisfaction
(ie. NPS)

53

Higher
traffic

Increased
lead gen/
sales

46

Greater
conversions

DIGITAL

TRANSFORMATION

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 ITS 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