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.

25%have mapped the digital customer journey and have a clear understanding of new or underperforming digital touchpoints

But, only

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 2014 State of

DIGITAL TRANSFORMATIONBased 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 is DIGITAL TRANSFORMATION?IT’S BIG... ENTERPRISE-WIDE

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

THE TOP DIGITAL TRANSFORMATIONINITIATIVES Very

importantSomewhat important

Updating our website and ecommerce programs for a mobile world 71% 25%

Updating customer-facing technology systems 66% 29%

Further research into our customers’ digital touch points, as there’s more to learn 63% 36%

Integrating all social, mobile, web, ecommerce, service efforts and investments to deliver an integrated and frictionless customer experience 70% 24%

Improving processes that expedite changes to digital properties, ie. website updates new mobile or social platforms, etc 80% 19%

WHO’S LEADING

DIGITAL TRANSFORMATION?Change doesn’t happen in silos. This is a partnership where all groups should work together.

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.

DIGITAL TRANSFORMATION DOESN’T MEAN DIGITAL INVESTMENT ALONE.

IT DOES MEAN THINKING

“DIGITAL FIRST.”

THE DIGITAL TRANSFORMATION DIVIDE

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

46%

aim to overhaul customer service

to meet the expectations of digital

customers

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.

only

If this is about customer experience, many businesses

are missing the customer and the experience.

54%CMO

42%

CEO29% 5%15%

CIO/CTO

CDO(Chief Digital Officer)

CXO(Chief Experience Officer)

Very important

Somewhat important

Thinking beyond a “campaign mentality” in digital strategy efforts 59% 32%

Resources (people, technologies, expertise) and budget allocation 56% 39%

Understanding behavior or impact of new connected customer 53% 42%

Cooperation between departments and team silos 56% 39%

Changing company culture 63% 34%

THE TOP CHALLENGES FACING DIGITAL TRANSFORMATION

Culture eats strategy for

breakfast

56%

find cross-

department collaboration

difficult

It takes a team to change but

team dynamics work against

working together

63%

see changing company culture as a challenge

Stop confusing customer experience with hit and run campaigns

51%

somewhat feel lack of data represents a challenge

Improving customer experiences starts with knowing the customer

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

TOP 5 BENEFITS OF

DIGITAL TRANSFORMATION

63%

Improved customer

satisfaction(ie. NPS)

53%

Highertraffic

46%Greater

conversions

75%Lift in

engagement

49%

Increased lead gen/

sales

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

59%

Think beyond a “campaignmentality”

www.altimetergroup.com/digitaltransformation

1Formulation

2Pre-

Commerce

3Commerce

4Post-

Commerce

Evaluation Purchase

Experience

Loyalty

AdvocateAwareness

Consideration

Influence Loop