Customer is king. Yet, in an era of “Digital Darwinism” where technology, society, and business models rapidly evolve, customer experience is often elusive. Businesses are beginning to realize that, throughout their evolution, they must invest in change to keep up with and ultimately lead a new era of connected markets. As a result, businesses are now entering an era of “digital transformation” to integrate and improve the customer experience.
To do so begins with noting the considerable differences between traditional customer strategies and those required to engage and nurture relationships with digital customers. We found that understanding the digital customer experience is one of the primary catalysts for businesses placing substantial investment in digital transformation.
Our research details what digital transformation is, how companies are embracing change, and the challenges and opportunities that emerge throughout the process. Through a series of interviews with digital strategists and executives at some of the world’s leading brands, Altimeter explores the role of new customer behavior and disruptive technology in influencing how organizations evolve. Our findings represent important trends and goals in digital transformation that benefit all businesses seeking to adapt to digital markets in meaningful ways.
- Social, mobile, real-time, and other disruptive technologies are aligning to necessitate bigger changes than initially anticipated.
- Digital transformation is quickly becoming a priority for many leading organizations.
- Mapping and understanding the customer experience is becoming critical in guiding transformation efforts.
- While gaining momentum, digital transformation as a formal process is still in its infancy.
- Digital transformation is driven partly by technology and also by the evolution of customer behavior.
- Three key elements form the compound upon which digital transformation efforts are built:
- It is most effective with pointed vision and supportive leadership.
- Optimizing the digital customer experience becomes the initial objective.
- Change materializes through the formation of a digital transformation team.
- A list of best practices will serve as a checklist to help strategists take the next steps to beginning digital transformation or optimizing current efforts.
The 2014 State of Digital Transformation Report by Altimeter Group