2016 State of

The
DIGITAL
TRANSFORMATION

By Brian Solis with Jaimy Szymanski

Includes survey data from 528 digital transformation leaders and strategists
EXECUTIVE SUMMARY
Digital Darwinism continues to impact businesses as technology of customer-centricity and investing in front- and back-office
and societies evolve. As a result, organizations are moving away solutions without a clear understanding of customer expectations,
from “business as usual” as they pursue digital transformation preferences, or values. IT is the department most frequently
to compete. Today, companies are undergoing varying extents included in digital Centers of Excellence (CoEs), and updating
of modernization, with systems, models, processes, and information technology is currently the second-highest priority in
architectures advancing along the way. terms of digital transformation initiatives.

In the second edition of our “State of Digital transformation” But, focusing on customer experience (CX) through the lens of
research, we set out to learn how companies are changing and technology has its limitations. For example, in 2014 we found
the challenges and opportunities they face while doing so. The that 88% of companies were undergoing digital transformation
data and insights in this report are based on the input of more as a means to improve CX, but only 25% had mapped their
than 500 digital transformation strategists and executives who customer journeys.1 In 2016, companies are making progress,
are leading change within their organizations. This year, we are but customer-centricity still appears to be more about words
seeing companies evolve, with some changing faster and deeper than actions. Although CX remains a top driver of digital
than others. But, what’s most clear is, two years after our previous transformation, only half of the companies we studied have
industry overview, companies are still facing significant challenges mapped or are mapping the customer journey. While CX
to operate in a digital economy. mapping is becoming more prominent, it still must gain greater
traction to counterbalance (and give purpose to) investments in
We learned that efforts in customer experience often serve as technology roadmaps.
the heart and soul of digital transformation, as we also saw in
2014. At the same time, many organizations continue to wrestle In 2016, innovation has become a key priority in digital
with the balance of technology and organizational priorities to transformation efforts. This trend is rapidly gaining momentum as
define a collaborative and productive path toward change. In companies look to the startup ecosystem as a means to innovate
many ways, IT remains influential in driving digital transformation. and tap into the new expertise and talent often missing from more
As a result, companies are still prioritizing technology ahead traditional organizations.
2
REPORT
HIGHLIGHTS CX remains the top driver of digital transformation, but IT and
marketing still influence technology investments (even without fully understanding
customer behaviors and expectations).

Fifty-five percent of those responsible for digital transformation

cite “evolving customer behaviors and preferences” as their
primary catalyst.

Only half (54%) of survey respondents have completely mapped

out the customer journey within the last year or are in the process of doing so.

A mere 20% of digital transformation leaders are studying the

mobile customer journey and/or designing for real-time “micro moments” in
addition to customer journey work.

The top three digital transformation initiatives at organizations

today are accelerating innovation (81%); modernized IT infrastructure with
increased agility, flexibility, management, and security (80%); and improving
operational agility to more rapidly adapt to change (79%).

Digital transformation is largely led by the CMO (34%).

Just 29% of companies have a multi-year roadmap to guide digital

transformation evolution.

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 THE 2016 STATE OF
DIGITAL TRANSFORMATION
Executives are going “all in” on exploring the impact and potential of digital on their
companies and markets. To what extent these companies change, and how quickly, is
dependent on a variety of elements ranging from culture to expertise to insights, and
everything in between.

Digital transformation is working its way from the edges of the organization to the
middle. Disparate efforts throughout the company, whether it’s IT, marketing, or
innovation, are starting to unite around a common effort to organize work, align
executives and direction, and reframe business models. One of the driving factors
behind those cross-functional efforts is CX.

DEFINING DIGITAL TRANSFORMATION

Over our years of digital transformation research, we’ve learned that there are many
definitions for the topic depending on who you talk to in the ecosystem. And, when
rooted in the context of CX efforts, digital transformation carries even broader
implications and opportunities for companies. Based on interviews with digital and
innovation leaders over the past few years, we continually adapt our definition to reflect
its current state and direction. For this report, we define digital transformation as:

The realignment of or investment in new technology, business models,

and processes to drive value for customers and employees and more effectively compete
in an ever-changing digital economy.

4
4
CX CONTINUES TO DRIVE
DIGITAL TRANSFORMATION EFFORTS
Companies look to customer behavior FIGURE 1.
to inform and lead change, which puts
TOP DRIVERS OF DIGITAL

55 %
CX at the heart of accelerating digital
transformation initiatives. More than half TRANSFORMATION
(55%) of those responsible for digital Question: What are the key drivers
transformation cite “evolving customer of digital transformation within
your organization? Drivers are Evolving
behaviors and preferences” as their top customer
trends or factors that
driver of digital transformation (see Figure 1). catalyze change. behaviors and
But it’s not just about chasing digital
preferences
customers. As technology and customer
behavior evolve, businesses are
identifying new ways to increase reach, New
revenue, and impact. standards in
regulatory and
Fifty-three percent cite “growth
compliance
opportunities in new markets” as a driver
to not only reach existing customers in
better ways, but also to expand markets.
42 %
The better companies understand digital
customers, identify new markets, and
increase digital literacy, the more they
earn signi cant competitive advantages.
53 %
Growth
opportunities
This causes pressure for other companies
in new markets

49
to respond. Almost half of those surveyed
(49%) cited “increased competitive %
pressure” as driving their efforts.
Increased
competitive
pressure

5
DIGITAL TRANSFORMATION
BEST PRACTICES
In 2016, we introduced the digital transformation OPPOSITE framework based on three
years of interviews with executives who are gaining traction in driving mature digital
transformation initiatives.2 OPPOSITE (see Appendix) is an acronym that represents a
step-by-step approach companies can take to accelerate and unify efforts around digital
transformation. These steps are based on a series of people-centric best practices, which
represent Orientation, People, Processes, Objectives, Structure, Insights and Intent,
Technology, and xecution. peci cally, we learned those companies that invested in
better understanding the customer experience, as well as the digital and mobile journeys,
were able to identify actionable insights and purpose. We found parallel trends and best
practices emerged in our 2016 State of Digital Transformation survey data.

MORE COMPANIES ARE MAPPING

THE DIGITAL CUSTOMER JOURNEY
In 2014, only 25% of companies undergoing digital transformation had mapped the
customer journey and had a clear understanding of new or underperforming digital
touchpoints. Yet, 88% cited CX as the driver for change. Technology was widely viewed at
the time as the solution for change. But now, businesses are investing in a customer-centric
approach that offers insights, purpose, and direction.

Today, 54% of survey respondents have completely mapped out or are in the process
of mapping out the customer journey (within the last year). That’s more than double the
gure from only two years ago. These companies do so to nd the data to de ne and
prioritize their digital transformation roadmap.

Even though this is progress, to date only half (52%) of companies currently have a
customer research program in place to better understand digital customer behaviors.

6
 AN ELITE GROUP OF COMPANIES IS
EXPLORING “MOBILE-FIRST” MOMENTS
Mobile has given way to what Google refers to as “micro-moments,”3 and they are
completely upending traditional customer journeys. These mobile- rst moments play
out in common scenarios when someone is intent to do, buy, or learn something.
As consumers increasingly use their phones to complete everyday activities, they’re
fracturing the consumer journey into hundreds of new “micro” touchpoints where
they seek real-time, mobile-optimized content, reviews, shared experiences, and
direction online. Traditional touchpoints, such as websites, contact centers,
representatives, af liates, etc., don t meet heightened expectations.
In fact, they deter from what’s becoming an on-demand customer
experience. As such, micro-moments represent new, critical

20 % opportunities for brands to shape their decisions and preferences.

Despite all of this, just 20% of digital transformation leaders

of digital
are studying the mobile customer journey and/or designing for
transformation
real-time micro-moments in addition to customer journey work.
leaders are studying Clearly, for companies to mature through the six stages of digital
the mobile customer transformation, they must understand mobile’s impact on customer
journey decision-making, behaviors, and value.

Mobile is just the beginning of disruption in the customer journey.

With the runway for disruptive technologies still ahead (e.g., wearables,
Internet of Things (IoT), arti cial intelligence, virtual and augmented
reality), companies will need a resilient infrastructure that adapts to not
only mobile’s “micro-moments,” but also the impact of all these trends
and new devices over time. One way to do so is to evolve digital
transformation toward a state of innovation and adaptability. For
example, in our recent Six Stages of Digital Transformation research
(see Figure 2), we learned that mature companies were developing
“innovation” teams, departments, and of cial innovation centers
to study, partner with, invest in, acquire, and experiment with
emerging technologies.

7
FIGURE 2.
THE SIX STAGES OF DIGITAL TRANSFORMATION
From Altimeter Group’s 2016 report, The Six Stages of Digital Transformation, available for download from our website

8
LEADERS
FIGURE 3.
DIGITAL TRANSFORMATION CHALLENGES
STRUGGLE TO
Question: Each of the following describes different types of challenges surrounding digital transformation
initiatives. Please indicate the severity of each challenge as it relates to your digital transformation efforts.
ata reflects responses marked “challenging” and “very challenging.”

UNDERSTAND
NEW 69%
Lack of data or ROI to
71%
CONNECTED
Understanding
justify value of digital
behavior or impact of
transformations
a new customer

CUSTOMER
BEHAVIORS
Executives still don’t engage with the

64%
brand or business the way customers
do. By not prioritizing customer journey

67
work, companies face challenges in
understanding new consumer behaviors % Resources

and missing related datasets for decision-

Risk management,
making. Companies that don’t grasp compliance, and/or
or internalize the customer journey are legal complications
obstructed from seeing its potential for
optimization and innovation.

It’s not a surprise, therefore, that the top

63
Changing company
%
challenge faced by those leading digital culture to be agile
transformation is understanding behavior

62%
or impact of new connected customers
(71%) (see Figure 3). This trend has grown
since 2014, when 53% of respondents cited Lack of digital transformation
familiarity with this challenge. budget allocation

9
As more companies evolve, change
agents are asking leaders for more
funding and resources. In turn, they’re
being asked for results projections to
support their requests and roadmaps.
This lack of data or ROI to justify the
value of digital transformation (69%) is
still holding companies back from taking
steps toward digital relevance, a sizable
increase from our 2014 survey wherein
only 34% of respondents cited the lack of
data as a challenge. Although we’re in an
era of Big Data, companies still struggle
to capture, comprehend, and act on
insights available to them. This increasing
gap between the ability to gather data
and actually act on it (or position it in a
compelling way) is affecting the potential

69 %
for digital transformation advancement.

Another top challenge facing digital

transformation is the very thing that
governs the course of business: a culture of leaders are challenged
that is pervasively risk-averse (63%). by a lack of data or
Boards, shareholders, and stakeholders ROI to justify digital
want to make improvements and increase transformation
pro tability but are often unwilling to
examine and change the governance
in place today. According to our
survey respondents, risk management,
compliance, and/or legal implications now
represent the third greatest challenge
at 67%. Yet, together, these are the very
things that can facilitate change while
creating a modern governance framework.

10
DIGITAL TRANSFORMATION FIGURE 4.
LEADERSHIP AND GOVERNANCE DIGITAL
TRANSFORMATION
The path to digital transformation is forged by those who aim to, or by default, blaze new
trails. However, it isn’t always clear early on who should drive or own digital transformation. LEADERSHIP FROM THE
ver the years, s, s, I s, and even the newly appointed hief igital f cer C-SUITE
(CDO) have invested in initiatives that serve as the spark to move things forward. But, Question: Which executive is leading the digital
they often operate in isolation simply because of the nature of everyday business. That transformation initiative?
changes over time as champions of change realize they can make quantum leaps ahead by
partnering with those leading separate efforts.

THE CMO AND CEO CONTINUE TO LEAD

DIGITAL TRANSFORMATION
Who owns digital transformation? According to our survey, digital transformation is largely
34%
CMO
led by the CMO (34%). Not far behind, though, is a digitally savvy generation of CEOs

27%
who, at 27%, recognize that it’s time to lead their companies into the 21st century (see
Figure 4). This is a number that we expect to grow in the coming years.
Digital transformation originally gained traction with CIOs, when it was driven by CEO
technology adoption over CX. Today, however, only 19% of CIOs are leading digital
transformation efforts. It’s understandable, as we found in earlier research that digital
transformation is now about people rst and technology second4. 19%
CIO/CTO
Interestingly, the newly titled “chief experience of cer” only represents % of leadership
5%
initiatives, gaining no ground since our 2014 study (5%).

Either way, this is a role that will become prominent over time, title aside, as customers will
CXO 15%
CDO
only continue to evolve. CMOs, CEOs, and CIOs will all assume CX-related responsibilities,
which makes a chief CX role unnecessary.

11
 DIGITAL DEPARTMENTS
ARE MORE COMMON THAN
“CENTERS OF EXCELLENCE”
Steering committees, digital departments, and Centers of
Excellence (CoEs) –– what do they all mean, and how are they
shaping digital transformation? Each, in their own way, is attempting
to tackle the unknown by learning from, experimenting with, and
adapting to new market dynamics.

Cross-functional steering committees are tasked

speci cally with solving for digital transformation at
an enterprise level. Marketing, IT, CX, HR, legal, etc., mix
and unite to carry an impact beyond any one silo. More
than half (53%) of companies have an informal digital
transformation steering committee that includes 53%
of companies
representatives from one or more departments. And,
40% of these companies have formally sanctioned have informal
committees as of cial working groups. digital transformation
These formal workgroups, otherwise known as CoEs, steering comittees
serve as the executive-sponsored entity to lead digital
initiatives. They typically have four to seven members,
coming primarily from IT (63%), mobile (41%), e-commerce
(40%), the C-suite (38%), and CX teams (38%). Legal is only
included in digital o s % of the time, a gure which will need 40 %
to increase over time to help rewrite the balance between risk and have formalized
opportunity (see Figure 5). committees

12
FIGURE 5.
DIGITAL CENTERS OF EXCELLENCE,
DEPARTMENTAL CONTRIBUTIONS

81%
Question: What departments are represented in the digital center of excellence or digital hub?
Check all that apply.

of companies
have digital
departments

63% Digital departments are now very

IT
common, with 81% of companies citing
their existence. Yet, only 40% have a
41%
Mobile
formalized cross-functional workgroup.
These digitally focused groups tend to
employ four to ve full-time employees.
But, as of now, they’re mainly focused

40%
E-commerce
on emerging technologies and their
impact on one group rather than the
entire enterprise. This would imply that
companies are “doing digital” just to

38%CX
38%
C-suite
“do digital” without involving multiple
stakeholders and making it a cross-
functional effort. Once this work connects
to other stakeholder groups, digital
32% 30% 28%
Marketing/ Customer Social
transformation accelerates and its effect
becomes more profound in the process.
Advertising/Digital Service

13
MEASURING DIGITAL TRANSFORMATION SUCCESS
Digital transformation progresses as companies invest in new pilots and initiatives. Experience and maturity also develop
as companies build an infrastructure upon modernized governance, operations, and digital education/training to support
change across the organization. Companies that mature do so by measuring advancement while making the case for next
steps. This requires evolving beyond legacy metrics and KPIs to more effectively align with trailblazing business objectives.
long the way, de ning what success looks like in each step and in the long-term, tracking toward these goals, and ultimately
communicating headway and learnings become a best-practice of the most advanced companies.

COMPANIES TIE DIGITAL TRANSFORMATION TO LEGACY

METRICS VS. NEW OPERATIONAL KPIS
When approaching digital transformation, many companies turn to traditional metrics to help validate the success of new
investments. Although this helps frame them within existing business paradigms, strategists must still rethink metrics to
chart future development in new channels, experiences, content, and devices. In the early stages of digital transformation
maturity, survey respondents revealed the six most important metrics that organizations can actually measure around digital
transformation right now are (see Figure 6).

FIGURE 6. 28%
Customer
DIGITAL
27% 27%
Satisfaction
(NPS, CSAT)
TRANSFORMATION
SUCCESS TIED TO
MEASURING CUSTOMER
Web traffic Productivity
26% 25% 25%
Revenue
Customer Content
SATISFACTION Experience Analytics
(Paid, Ownerd, Earned)
Question: hat are the ve most
important metrics your organization can
actually measure today related to digital
transformation?

14
Existing KPIs help validate early work
in digital transformation. But often,

22%
measurement efforts are focused
on measuring isolated efforts
within each department/function.
For example, only 22% of those have a content strategy
surveyed cited having a content that addresses customer
strategy in place that addresses needs throughout
customer needs at all journey stages, their journey
but content analytics are in the top
ve most important metrics measured.
There is a disconnect between strategy
and measurement in digital transformation
efforts. In this instance, content is one of
the most important engagement tools in
every moment of truth, before, during, and
after transactions.

As companies mature, silos preventing an

integrated customer experience begin to
crumble as key stakeholder groups connect
across departments. This drives the development
of new measurement frameworks to align with digital
transformation roadmaps. We found in our Six Stages of
Digital Transformation research that over time, as the roadmap
becomes substantiated, gaps in measurement are identi ed
and an analytics inventory is audited. This clearly marks the
transition from maturity Stage 3 (Formalized) to Stage 4
(Strategic) when examining analytics as part of an overarching
digital transformation. During Stage 4 and beyond, new
outcomes and KPIs are generated to track inter-departmental
roadmap collaboration, integrated customer experiences, and
top-level business performance indicators. These may include
ustomer ifetime alue ( ), revenue creation, pro tability,
and increased market valuation, among others.

15
DIGITALLY TRANSFORMING FIGURE 7.
TOP BENEFITS WITNESSED FROM
COMPANIES EARN BUSINESS DIGITAL TRANSFORMATION EFFORTS
ROI AND INFLUENCE CULTURE Question: hat bene ts have you already witnessed from your digital
transformation work?
Digital Darwinism favors those companies that invest in change.
Every executive and senior leader we interviewed since 2013
vehemently believes that digital transformation has no nal
destination on its horizon. The point of the journey is driving
incremental change to help their company progress along the
41%
Increased
six stages.

37 %
market share
Digital transformation isn’t easy though. Its true evolution
takes time and resources, with bene ts delivered in the long-
term. This, to some, can represent deliberate moves away
37 %
Increased
Positively customer
from delivering against quarterly returns. That’s the paradox engagement
impacted
of investing in digital transformation; it gives returns to those in digital
employee
who treat it as a long-term investment versus those who expect channels
morale
immediate impact.

According to our research, returns earned directly as a result

of digital transformation efforts are more than validating and
promising (see Figure 7). Companies are realizing types of ROI Greater
volume of

32%
any C-suite and board can appreciate: increased market share

30 % web and/
(41%) and increased customer revenue (30%). Additionally,
or mobile
the I of digital transformation is reflected in employee Increased traffic
morale. As the saying goes, “Happy employees equal happy customer
customers.” In that regard, 37% of respondents stated that revenue
second to increased market share, employee engagement was
the next big return.

16
FUTURE TRENDS AND EVOLUTION
OF DIGITAL TRANSFORMATION
In our Six Stages of Digital Transformation maturity model, we note that the sixth stage
reflects a state of innovation and agility. ompanies that explore innovation do so at
varying extents, but they all share a common goal of expanding the company’s market
perspective by exploring what digital customers want, how new technologies change
behaviors and expectations, and what latest technologies need to be tracked. In their
own way, companies seek to track emerging technology and trends, as well as gain new
expertise and talent. More advanced companies also aim to partner with startups and
startup ecosystems to innovate outside of its day-to-day operational culture.

COMPANIES PRIORITIZE INNOVATION AS

DIGITAL TRANSFORMATION EFFORTS MATURE
While CX was initially the primary catalyst for digital transformation, innovation, agility, and
the pursuit of digital relevance are the new factors driving companies along the maturity
model. For executives and senior leadership, the need to accelerate innovation (81%) was
at the top of the digital transformation agenda. Right behind it was the need to modernize
the IT infrastructure with increased agility, flexibility, management, and security (80%). nd,
the third priority for enterprise transformation is improving operational agility to more
rapidly adapt to change (79%).

Through these priorities, businesses are developing a roadmap that helps them compete
for the present while building a next-generation business model to compete for the future.
This work is organized into six pillars that form the foundation for the six maturity stages
(see Figure 8).

17
FIGURE 8.
DIGITAL TRANSFORMATION REQUIRES MULTIDISCIPLINARY INVOLVEMENT

GOVERNANACE AND DATA AND

LEADERSHIP ANALYTICS
An infrastructure that is driven by How a company tracks data, measures
leadership philosophies that determine initiatives, extracts insights, and
the fate of business evolution introduces them into the organization

PEOPLE AND
OPERATIONS
Who is involved in TECHNOLOGY
DIgital Transformation, INTEGRATION
the roles they play, Implementing technology
the responsibilites and that unites groups,
accountabilities they carry, functions, and processes to
and how a company enacts support a holistic CX
change and manages
transformation, including its
roles, processes, systems,
and supporting models

CUSTOMER EXPERIENCE DIGITAL LITERACY

The processes and strategies aimed at Ways in which new expertise is
improving touchpoints along the entire introduced into the organizations
customer journey

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PROGRESSIVE COMPANIES INVEST IN
INNOVATION CENTERS AND TEAMS
Innovation is often limited when teams are not empowered to operate outside of their
day-to-day work. In our 2014 and 2016 surveys, we learned that 63% of leaders believed
changing company culture was a top challenge facing digital transformation. As a result,
more progressive companies are exploring innovation outside of the proverbial box.

To accelerate innovation, 46% of those surveyed stated that their company has launched
a formal “innovation center” to understand and test new technologies and develop new
solutions/services. Another 35% have formally tasked an innovation team to lead efforts.

e nd that more companies have digital departments than o s, but with innovation
departments and centers, it s flip-flopped. This is likely because digital is more formalized
within companies than innovation, which is why in our maturity framework we found very
few companies at stage 6, “Innovative and Adaptive.”

This work opens the door to “future proo ng.” ore advanced companies combat
disruption and expand innovation efforts by partnering with startups, investors,
entrepreneurs, and universities to learn, invest, and acquire new technologies and
expertise. In 2015 and 2016, Altimeter and CapGemini Consulting published two reports
on the rise of innovation centers.5 In the most recent edition, we found that the key
objectives for these new innovation centers are:

51 % 28% 13%
of companies focus of companies
of companies partner hope to enhance
on product innovation
with the startup and/or concept CX as a result of
ecosystem development their innovation
center

19
CONCLUSION
Digital transformation is as much a technology story as it is one about how people lead change inside and outside the company. The
human factor is pervasive in each of our reports on the subject. It’s really the driving force behind evolution and revolution in business.

In our 2014 report, pushing forward against existing “culture” was the top challenge facing digital transformation. In 2016,
understanding connected consumer behavior tops the list. oth reflect the human side of change. The same evolution in customer
behavior, expectations, and values are driving evolution among employees and their aspirations.

As a whole, digital transformation is young, and businesses are still learning where and how to change. But even in its early stages,
progressive companies are already seeing bene ts in how they compete and how they measure success.

The reality is that companies in every industry are facing similar challenges and looking at customer behavior and competitive pressure,
not just technology, as the source of drive and direction. Those making progress along the six stages of digital transformation are
investing in these best practices:

DCX: Study and map the digital customer experience.

MOBILE: Also, study and map the mobile customer journey.
RESEARCH: Invest in ongoing customer research to better understand digital/mobile behaviors.
ROADMAP: Develop a digital transformation roadmap.
TOUCHPOINTS: Update/Innovate customer-facing technology in digital AND mobile.
OMNI-CHANNEL: Drive strategies that engage and guide customers seamlessly through digital, mobile, and
real-world journeys.
PROCESSES: Improve processes/operations that expedite changes.
IT: Build an agile, integrated, and scalable technology infrastructure.
LEADERSHIP: Executives appoint someone to lead and pave the way for digital initiatives (budget, resources,
culture), as well as manage expectations among shareholders, stakeholders, and the board.
TASKFORCE: Form a working team to drive initiatives, coordinate activities/resources, and be accountable.
METRICS: Establish new metrics that measure progress and track new outcomes.

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ABOUT THE BRIAN SOLIS
Brian Solis (@briansolis) is a digital analyst, anthropologist, and also a futurist. Brian
AUTHORS studies the effects of disruptive technology on business and society. More so, he
humanizes these impacts to help people see people differently and understand
what to do about it. He is an award-winning author and avid keynote speaker who
is globally recognized as one of the most prominent thought leaders in digital
transformation and innovation.

Brian has authored several best-selling books, including What’s the Future of
Business (WTF), The End of Business as Usual, and Engage!. His latest book, X,
explores the intersection of where business mee ts design to create engaging and
meaningful experiences.

JAIMY SZYMANSKI
Jaimy Szymanski (@jaimy_marie) is an industry analyst, focusing on how
organizations adapt their digital strategies and core business models to serve
the new “connected customer.” She has authored multiple research reports and
artifacts on the topics of digital transformation, the collaborative economy, the
autonomous world, consumer mobile, customer experience, and the Internet of
Things. Jaimy provides independent research and advisory services to companies
in varied industries that are affected by emerging technologies.

21
ECOSYSTEM INPUT For this report, Altimeter, a Prophet Company worked with Phronesis Partners to conduct
a survey of 8 uali ed digital transformation strategists and executives leading change
within their companies. Respondents were from companies in varied industries, with more
than 250 employees, in the United States, Canada, United Kingdom, France, and Germany.

Over the past three years, Altimeter has also conducted a series of executive interviews
that informed this research, among other reports. We interviewed digital strategists and
executives at organizations undergoing digital transformation efforts about their journey in
adapting to the new digital customer experience.

OPEN RESEARCH This independent research report was 100% funded by Altimeter, a Prophet Company. This
report is published under the principle of Open Research and is intended to advance the
industry at no cost. This report is intended for you to read, utilize, and share with others; if
you do so, please provide attribution to Altimeter, a Prophet Company.

PERMISSIONS The Creative Commons License is Attribution-Noncommercial ShareAlike 3.0 United States,
which can be found at https://creativecommons.org/licenses/by-nc-sa/3.0/us/.

DISCLAIMER ALTHOUGH THE INFORMATION AND DATA USED IN THIS REPORT HAVE BEEN PRODUCED AND
PROCESSED FROM SOURCES BELIEVED TO BE RELIABLE, NO WARRANTY EXPRESSED OR IMPLIED
IS MADE REGARDING THE COMPLETENESS, ACCURACY, ADEQUACY, OR USE OF THE INFORMATION.
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THE OPINIONS EXPRESSED HEREIN ARE SUBJECT TO CHANGE WITHOUT NOTICE

22
 ltimeter, a rophet ompany, is a research and strategy consulting rm that helps companies
ABOUT understand and take advantage of digital disruption. In 2015, Prophet acquired Altimeter
ALTIMETER GROUP Group to bring forward-thinking digital research and strategy consulting together under one
umbrella and to help clients unlock the power of digital transformation. Altimeter, founded in
2008 by best-selling author Charlene Li, focuses on research in digital transformation, social
business and governance, customer experience, Big Data, and content strategy.

Altimeter, a Prophet Company

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of analysts and consultants work with global organizations on needs assessments, strategy
roadmaps, and pragmatic recommendations to address a range of strategic challenges and
opportunities.

Education and Workshops. Engage an Altimeter speaker to help make the business case to
executives or arm practitioners with new knowledge and skills.

Advisory. Retain Altimeter for ongoing research-based advisory: Conduct an ad-hoc session to
address an immediate challenge or gain deeper access to research and strategy counsel.
To learn more about Altimeter’s offerings, contact info@altimetergroup.com.

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APPENDIX: THE PATH TO DIGITAL TRANSFORMATION
TAKES AN O.P.P.O.S.I.T.E. APPROACH
While researching digital transformation over the past three years, we’ve uncovered many common characteristics that companies exhibit
while growing through the stages of digital transformation maturity. Many of these commonalities were apparent in the results of our 2016
State of Digital Transformation survey data as well, and overlapping themes emerged. Examining these best practices amongst innovative
leaders resulted in a new framework recently published by Altimeter: the Eight Success Factors of Digital Transformation: How Businesses
Are Taking an O.P.P.O.S.I.T.E. Approach to Business as Usual.

As mentioned earlier, OPPOSITE is an acronym that offers companies a step-by-step approach to digital transformation. It stands for:
Orientation, People, Processes, Objectives, Structure, Insights & Intent, Technology, Execution.

The framework offers insights and new understanding of technology, data and the digital customer. By following the OPPOSITE approach,
digital transformation becomes identi able, approachable, and attainable for organizations. The IT framework is available for
download here (http://bit.ly/the-opposite).

Here’s an overview of the eight best practices of emergent leaders and the work they’re doing to evolve businesses in a digital economy:

Orientation: Establish a new perspective to drive meaningful change.

People: Understand customer values, expectations, and behaviors.

Processes: Assess operational infrastructure and update (or revamp) technologies, processes, and policies to support change.

Objectives: e ne the purpose of digital transformation, aligning stakeholders (and shareholders) around the new vision
and roadmap.

Structure: orm a dedicated digital experience team with roles/responsibilities/objectives/accountability clearly de ned.

Insights & Intent: Gather data and apply insights toward strategy to guide digital evolution.

Technology: Re-evaluate front- and back-end systems for a seamless, integrated, and native customer (and, ultimately,
employee) experience.

Execution: Implement, learn, and adapt to steer ongoing digital transformation and customer experience work.

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 This framework serves as a guide for change agents, like
you, to drive digital transformation. When combined with
this report, OPPOSITE guides and informs the development
of your digital transformation roadmap. It metaphorically
visualizes your work as a stack, building upward toward
change one stage at a time. Use it to steer your work in
shaping the DCX and the supporting infrastructure. Through
your efforts, the organization becomes not only technology-
savvy but more so people-centric. The company will become
agile and sets the stage for innovation.

This is true transformation, not just about digital. It’s in the

ongoing pursuit that makes change less about stages and
more about vision, purpose, and resolve. It’s time for a new
paradigm for business leadership, relevance, and prosperity.

ENDNOTES Solis, Brian, Szymanski, Jaimy, and Lieb, Rebecca. The 2014 State of Digital
1

Transformation. Altimeter Group. 2014 (http://www.altimetergroup.com/2014/07/

the-2014-state-of-digital-transformation/).
2
Solis, Brian and Szymanski, Jaimy. The Six Stages of Digital Transformation Maturity. Altimeter, a
Prophet Company. 2016 (http://www2.prophet.com/l/69102/2016-02-08/3ksgvl).
3
Google, Think with Google. “Micro-Moments.” (https://www.thinkwithgoogle.com/collections/
micromoments.html).
4
Solis, Brian, Li, Charlene, and Szymanski, Jaimy. Digital Transformation: Why and How Companies
Are Investing in New Business Models to Lead Digital Customer Experiences. Altimeter Group.
2014 (http://www.altimetergroup.com/2014/04/new-research-understanding-the-digital-customer-
experience-drives-investment-in-digital-transformation/).
5
CapGemini and Altimeter Group. The Innovation Game and The Rise of Innovation Empires. 2015-
2016 (https://www.capgemini-consulting.com/the-innovation-game).

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