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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 
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 
The 2014 State of 
DIGITAL 
TRANSFORMATION 
Based on a survey of 
digital strategists 
investment in, technology 
and business models to more 
effectively engage digital 
customers at every 
touchpoint in the 
customer experience 
lifecycle. 
DIGITAL TRANSFORMATION 
DOESN’T 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 
25% 
have mapped the digital customer journey 
and have a clear understanding of new or 
underperforming digital touchpoints 
of companies 
report undergoing 
a digital 
transformation 
THE TOP 
DIGITAL TRANSFORMATION 
INITIATIVES Very 
important 
Somewhat 
important 
Improving processes that expedite changes to digital 
properties, ie. website updates new mobile or social 
platforms, etc 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 there’s more to learn 63% 36% 
Technology is part 
of the solution but 
focusing on it is also 
part of the problem. 
46% 
only 
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. 
If this is about customer 
experience, many businesses 
are missing the customer 
and the experience. 
WHO’S LEADING 
DIGITAL TRANSFORMATION? 
Change doesn’t happen in silos. This is a partnership where all 
groups should work together. 
54% 
CMO 
42% 
CEO 
29% 15% 5% 
CIO/CTO 
CDO 
(Chief Digital Officer) 
CXO 
(Chief Experience Officer) 
THE TOP CHALLENGES FACING 
DIGITAL TRANSFORMATION 
Very 
important 
Somewhat 
important 
Changing company culture 63% 34% 
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% 42% 
Culture eats 
strategy for 
breakfast 
63% 
see changing 
company culture 
as a challenge 
56% 
find cross-department 
collaboration 
difficult 
It takes a team 
to change but 
team dynamics 
work against 
working 
together 
Stop confusing 
customer 
experience 
with hit and 
run campaigns 
59% 
Think beyond 
a “campaign 
mentality” 
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 
Commerce 
1 
3 
Formulation 
2 
Pre- 
Commerce 
TOP 5 
BENEFITS OF 
DIGITAL 
TRANSFORMATION 
63% 
Improved 
customer 
satisfaction 
(ie. NPS) 
53% 
Higher 
traffic 
46% 
Greater 
conversions 
75% 
Lift in 
engagement 
49% 
Increased 
lead gen/ 
sales 
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 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 
www.altimetergroup.com/digitaltransformation 
4 
Post- 
Commerce 
Evaluation Purchase 
Experience 
Loyalty 
Advocate 
Awareness 
Consideration 
Influence 
Loop

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[Infographic] The 2014 State of Digital Transformation

  • 1. 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 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 The 2014 State of DIGITAL TRANSFORMATION Based on a survey of digital strategists investment in, technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle. DIGITAL TRANSFORMATION DOESN’T 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 25% have mapped the digital customer journey and have a clear understanding of new or underperforming digital touchpoints of companies report undergoing a digital transformation THE TOP DIGITAL TRANSFORMATION INITIATIVES Very important Somewhat important Improving processes that expedite changes to digital properties, ie. website updates new mobile or social platforms, etc 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 there’s more to learn 63% 36% Technology is part of the solution but focusing on it is also part of the problem. 46% only 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. If this is about customer experience, many businesses are missing the customer and the experience. WHO’S LEADING DIGITAL TRANSFORMATION? Change doesn’t happen in silos. This is a partnership where all groups should work together. 54% CMO 42% CEO 29% 15% 5% CIO/CTO CDO (Chief Digital Officer) CXO (Chief Experience Officer) THE TOP CHALLENGES FACING DIGITAL TRANSFORMATION Very important Somewhat important Changing company culture 63% 34% 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% 42% Culture eats strategy for breakfast 63% see changing company culture as a challenge 56% find cross-department collaboration difficult It takes a team to change but team dynamics work against working together Stop confusing customer experience with hit and run campaigns 59% Think beyond a “campaign mentality” 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 Commerce 1 3 Formulation 2 Pre- Commerce TOP 5 BENEFITS OF DIGITAL TRANSFORMATION 63% Improved customer satisfaction (ie. NPS) 53% Higher traffic 46% Greater conversions 75% Lift in engagement 49% Increased lead gen/ sales 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 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 www.altimetergroup.com/digitaltransformation 4 Post- Commerce Evaluation Purchase Experience Loyalty Advocate Awareness Consideration Influence Loop