Digital transformation is not a buzzword. I repeat. Digital transformation is Not is a common word.
Digital transformation is much more than “the voice of the company”, and we should not devalue it Legality its. Yes, “digital transformation” has been abused and diluted by executives and consultants to represent all aspects of digitalisation in every aspect of a business. However, as you study it, without prejudice or agenda, an important trend in business modernization is taking shape.
In the latest Altimeter study, “ State of Digital Transformation ,” we find that the most progressive organizations are prioritizing customer experience invest in a short-term and long-term digital transformation roadmap. And, not only are customers directly benefiting from these efforts, but companies are accelerating the modernization of cross-functional operations and business models to better compete in emerging markets. develop rapidly.
Table of Contents
first. The The Battle Between CIOs and CMOs Digital Transformation Tuned Of Course
The ongoing tug-of-war between CIOs and CMOs over digital transformation is over, and in the end it’s the customer who wins.
To do better about 10 years, digital transformation is, not surprisingly, about “digital” and how and where CIOs and IT leaders invest in next-generation technologies. next. Cloud, mobile, social, apps, IoT, etc., represent significant updates and upgrades to technology infrastructure that scale and improve operations and performance . But the CIO is not the only driver. CMOs have recognized the rapid adoption of similar technologies among customers and how they dramatically reshape behavior, preferences, and outcomes.
This has led to a historic tug-of-war between the CIO and the CMO, the two first adopters and leaders of digital transformation, as to who “owns” digital transformation. While CIOs focus on infrastructure, CMOs aim to improve customer touch points and support back-end systems. Base on the research ours that purported war is finally over.
2. The 2018-2019 State of Digital Transformation
This year, we have seen a significant drop (-77%) in the marketing executive leadership of the enterprise-wide digital transformation effort (5%). While it may seem like the CIOs may have won the competition, the truth is that the competition is benefiting organizations and customers alike.
In the past, marketing was the logical starting place for digital transformation efforts, as CMOs aim to update how companies engage customers and modernize customer touchpoints. Now that task is even more important. New devices, apps, and on-demand services are driving new customer behaviors and expectations. At the same time, mobile, big data, AI, machine learning, and digital influence represent innovation drivers beyond marketing, expanding the CMO’s role to include guest engagement. row, experience , loyalty and lasting value.
3. Digital transformation drives business performance and growth on behalf of CX
After further research, we learned that an increase in CIO ownership by no means means that CMOs are losing stature in digital transformation leadership or influence.
In the past, marketing was the logical starting place for digital transformation efforts, as CMOs aim to update how companies engage customers and modernize customer touchpoints. Now that task is even more important. New devices, apps, and on-demand services are driving new customer behaviors and expectations. At the same time, mobile, big data, AI, machine learning, digital influence, etc represent innovation drivers beyond marketing, expanding the role of the CMO to now include the involvement of customers, experience, loyalty and lasting value.
As digital transformation matures, the goal is to complete business modernization to drive growth and performance. As a result, the customer experience becomes the catalyst in business consolidation. For example, CIOs are looking beyond infrastructure, becoming business partners for key functions within the organization. CMOs, in partnership with IT, are focusing on the digital transformation of the entire traditional marketing function, modernizing it for CX, for sales force collaboration, and for driving revenue direct.
4. Digital transformation to modernize touchpoints to enhance customer experience
Over the years, the leading drivers for advanced digital transformation efforts have consistently revolved around two things: 1) modernizing technology across the enterprise, and 2) investing in customer experience. modern. More than half of the companies (51%) we surveyed report that they are investing in growth opportunities in new markets, becoming the top drivers of digital transformation efforts. Research on evolving customer behaviors and preferences ranks second at 46%. The third leading driving force is increased competitive pressure (41%).
The reality is that customer touchpoints must be constantly updated if broken, dated, or non-sensitive touchpoints degrade customer experience and introduce cracks into the system. customer relationships and loyalty over time. As such, CX-focused efforts represent a significant set of short- and long-term digital transformation priorities for creating a more customer-centric and real-time infrastructure.
5. Prioritize CX in Short and Long Term
Integrate all social, mobile, web, commerce, services efforts and investments to deliver an integrated, frictionless, and omnichannel customer experience:
- 54% short time
- 57% long term
Invest in more intuitive, integrated e-commerce and mobile commerce platforms and processes in the long- and short-term respectively:
- 36% short time
- 37% long term
Customer service overhaul to meet the expectations of connected consumers:
- 54% short time
- 57% long term
Dig deeper into customer digital touchpoints and the customer journey:
- 54% short time
- 57% long term
6. With Meaningful Digital Transformation, Customers Win
Investments in CX represent immediate areas of opportunity, but also show that companies are focused on keeping customers in touch with the point of being up-to-date and relevant over the long term. As customers become more and more comfortable with mobile and emerging technologies, CMOs are working towards better understanding the changing expectations and preferences of these connected customers through real-time data and analytics. In addition, CMOs are using new programs and services that consistently meet the needs of their connected customers as times and trends evolve.
Customer experience will only continue to serve as a key catalyst for digital growth and acceleration. As a result, elite CMOs are transforming the role of marketing to create business growth engines that focus on CX, performance, and innovation. This can reduce the current need to participate in organization-wide efforts. However, in due time, this valuable experience and expertise will help bring marketing back to the forefront as organizations increasingly put the customer at the center of their initiatives. their digital transformation.
Please download Altimeter’s 2018 – 2019 State of Digital Transformation for a complete view of the growing business.