Seven lessons on driving digital transformation
Digital is one of the major disruptors within organisations, but are companies creating enough urgency around it? A new Economist report details the state of digital transformation
The pressure is on organisations to optimise the value of social media, cloud-based computing, mobile technology and big data analytics by embracing digital transformation from the top down.
Yet according to a new study, one third of companies still have businesses split between digital and traditional practices, and only one in 20 claim a seamless customer experience across channels throughout the purchase cycle.
So what can companies do better to embrace digital transformation, and which ones are doing it right?
A new study released by the Economist Intelligence Unit revealed companies ahead of the digital transformation curve have made greater progress in a fully digitally transformed business model and have seen greater results.
The Digital Evolution: Learning from the leaders in digital transformation report, sponsored by Accenture and Pegasystems, was based on a global survey of 444 executives from the healthcare, finance and telecommunications industries. It suggested that digital transformation aspirations are high, yet making progress can be complex.
One third of companies surveyed still have their business split evenly between digital and traditional practices, with most companies admitting their digital processes are only partially integrated. Meanwhile, only 5 per cent of executives surveyed globally were able to claim they had a seamless customer experience across channels throughout the purchase cycle.
The growing sophistication of digital consumer technologies such as smartphones and social media platforms means that customers now have high expectations for their digital interaction with businesses. This rapid shift in customer expectations is now seen as one of the biggest drivers for digital transformation, the report found.
Companies ahead of the game showed they are more likely to present a seamless, omni-channel customer experience, while more advanced companies showed success in integrating their digital processes seamlessly into other functions of the business.
“To be truly digital, you have to give your customers that end-to-end experience,” Pegasystems A/NZ managing director, Scott Leader, said. “It’s not good enough to have the front-end bit, like the website or the mobile app. You need to have that seamless experience moving through to back-end fulfilment. And I think the first step there is really a maturity assessment and look at what they need to do to become a truly digital organisation.”
At the same time, companies identified as being ahead of the curve are driven by a wider range of forces. They were more likely to cite the pace of technological chance in their industry and growing competitive pressure as drivers than those behind the curve.
“Meeting customer needs and expectations is the key driver behind digital transformation but really, companies ahead of the curve are keeping ahead both in terms of innovation and those competitive pressures,” Leader said.
Looking at the new age and millennial consumer, Leader said expectations around service have risen substantially higher.
“We’ve seen with Uber, for example, people expecting that level of service,” he said. “They want to know where their car is, when it’s arriving and how long it’s going to take. They want that seamless payment experience until the end, and to walk away a happy customer.
“Another example I could use is Domino’s Pizza, which is really selling technology and the experience of being able to track your driver and know exactly when your pizza is arriving and who your driver is. Customers are now demanding that type of experience.
