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Altimeter: The 2014 state of digital transformation June 2014
EXECUTIVE SUMMARY 
Digital transformation isn’t a trend owned by a 
particular role, nor a discipline that belongs to 
one department alone. It is, however, a significant 
movement where daring business leaders venture 
into tomorrow’s markets, today. In 2013, Altimeter 
Group researched how businesses explore digital 
transformation1. One finding revealed that while the 
word “digital” is part of “digital transformation,” the 
essence of digital transformation comes down to 
people and how their digital behaviors differ from that 
of the traditional customers before them. 
It’s also more than that. 
In our initial report on the topic, Digital 
Transformation: Why and How Companies Are 
Investing in New Business Models to Lead Digital 
Customer Experiences, we set out to determine 
how digital transformation unified disparate digital 
efforts under a common vision. In the process, we 
uncovered a more human story. We followed up 
our initial research with a 2014 survey, aimed at 
digital strategists, to further understand the state of 
digital transformation. This report shares its results 
and is designed to complement Altimeter Group’s 
annual State of Social Business report . Combined, 
this research helps strategists drive social business 
evolution and digital transformation based on insight 
from peers and market leaders. 
2
` 
DIGITAL TRANSFORMATION 
MEANS DIFFERENT THINGS TO DIFFERENT 
PEOPLE, AND THAT’S OKAY; WE’RE ALL LEARNING 
We still have a lot to learn about digital transformation: 
what it is, what it isn’t, and what it offers businesses that 
explore its permutations. 
In our initial research, we observed that digital transformation 
is most effective when it is tied to an end goal or series of 
milestones related to a future state. For example, some 
organizations invest in digital transformation from a technology 
standpoint as a way to improve efficiencies and scale around 
a specific area of business focus (i.e., manufacturing, customer 
service, marketing, or human resources). Others look at digital 
transformation as a series of channel investments to modernize 
and enhance customer and employee engagement. 
To focus our initial research, we defined digital transformation 
as a movement under a customer-centric lens: 
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. 
By focusing our research under this lens, we can better learn 
how and why companies explore digital transformation in 
a particular business area. This makes the idea of change 
approachable rather than overwhelming. As each initiative 
expands, digital convergence becomes a byproduct, eventually 
resulting in the modernization of holistic business practices. 
CHANGE HAS TO START 
SOMEWHERE. 
3
Digital transformation 
is vast and often 
misunderstood as a 
formal effort to renovate 
business vision, models, 
and investments for a new 
digital economy. 
4
THE STATE OF DIGITAL TRANSFORMATION: 
2014 SURVEY 
From the onset, Altimeter Group learned that definitions 
of and formalized methodologies toward digital 
transformation are indeed vast. As a category, it’s 
therefore difficult to surface a series of best practices 
outlining how businesses are changing and can grow. 
When we asked executives and digital 
strategists if their organization 
was undergoing a formal digital 
transformation effort in 2014, 88% 
answered “yes” (see Figure 1). Yet, 
this directly conflicts with both our 
previous qualitative research, as well 
as more detailed survey responses 
around components that prove digital 
transformation efforts are indeed occurring (i.e., journey 
mapping and a focus on customer experience, as seen 
in Figure 2). For example, when we asked digital leaders 
about their investments in identifying digital touchpoints 
and behaviors, 25% had mapped out the digital customer 
journey (see Figure 2). In other words: only one-quarter of 
the companies we surveyed have a clear understanding 
of new and underperforming digital touchpoints, yet 88% 
of the same cohort reports that they are 
undergoing digital transformation efforts. 
THIS LEADS US TO THE 
CONCLUSION THAT EVEN WHEN 
EXPLICITLY DEFINED, THE TERM 
“DIGITAL TRANSFORMATION” IS 
STILL MISUNDERSTOOD. 
Executives and strategists indicate that their organizations 
are undergoing digital transformation, yet the details of 
their efforts report the contrary. Altimeter Group found 
that digital transformation as an integrated and official 
endeavor is something many strategists are truly just 
beginning to understand and pursue. 
5 
25% 
mapped 
the journey 
88% 
are undergoing 
digital 
transformation
Which of the above best describes your company’s efforts around 
the customer journey/experience? 
The need to do 
so hasn’t come 
up or been made 
a priority. 3% 
42% 
FIGURE 1. 
ORGANIZATIONS 
UNDERGOING DIGITAL 
TRANSFORMATION 
EFFORTS 
` 
Is your organization undergoing a formal digital transformation effort in 
2014? Altimeter defines digital transformation as: the re-alignment of, or 
new investment in, technology and business models to more effectively 
engage digital consumers at every touchpoint in the customer experience 
lifecycle. 
No 10% 
I don’t know. 2% 
FIGURE 2. 
COMPANIES MUST FOCUS 
ON JOURNEY MAPPING TO 
IMPROVE CUSTOMER 
EXPERIENCE 
We’ve talked about 
the need to do so 
but no one has 
taken the lead yet. 
We are researching 
customer behavior now 
and waiting for results 
to inform our digital 
transformation strategy. 
We have completely 
mapped out the customer 
journey within the last year 
and have a clear 
understanding of new 
digital touch-points. 
12% 
We have not officially researched the digital 
customer journey but we have updated digital 
touch points with new social and mobile 
technologies and investments. 
Yes 88% 
25% 
12% 
Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 
6
Our research uncovered that investing in new digital technologies, such as social, mobile, big 
data, cloud, etc., doesn’t equate to uniting those efforts around a common vision supported 
by an updated, integrated infrastructure to effectively compete as a unified business in 
connected markets. This is where the discrepancy of digital transformation lies: 
STRATEGISTS OFTEN EQUATE THE TERM 
“DIGITAL TRANSFORMATION” WITH A SHIFT 
IN TECHNOLOGY INVESTMENT, WHEN ITS TRUE 
IMPLICATIONS SPAN FAR BEYOND TECHNOLOGY 
AND INTO THE REALMS OF INFRASTRUCTURE, 
ORGANIZATION, LEADERSHIP, AND A RENEWED 
FOCUS ON THE ENTIRE CUSTOMER EXPERIENCE. 
7
DIGITAL TRANSFORMATION DOESN’T MEAN 
DIGITAL INVESTMENT ALONE. IT DOES MEAN 
THINKING “DIGITAL FIRST.” 
Ford was an early adopter of social media, thanks in large 
part to its former head of global digital communications, 
Scott Monty. Over time, Ford recognized that their core 
customer group was changing. Under the direction of 
CEO Alan Mulally, the company hired its first CMO, 
Jim Farley. In an interview with Altimeter Group, Monty 
explained, “Farley earned the budget, attention, and 
trust of the executive team to push through a pilot digital 
initiative in marketing.” The idea was to prove 
out ideas before introducing radical shifts in strategy 
and investment. 
As a result, the company adopted a “Digital-First” 
approach as a replacement to the existing “One 
Social” work that was rising out of the social media 
team. This shift was made in an effort to integrate 
marketing across all channels around the premise of the 
crucial question, “What would my digital customer do?” 
Part of thinking “digital first” involves a renewed focus on 
the digital consumer and the evolving customer journey. 
Unfortunately, many companies don’t 
currently invest in journey mapping, 
which leads to challenges in proving 
the validity of and making the case 
for digital transformation. We found 
that only 17% of digital leaders are now 
in the process of studying the digital 
customer journey. 
There is hope: 42% of strategists report 
that while they have not yet researched 
the customer journey, they are 
investing in new digital channels. 
Our earlier research uncovered that 
an investment in new digital channels 
can be a catalyst both for digital 
transformation and an eventual deeper 
focus on digital customer experience 
(DCX). Only once an organization has begun to study 
the customer journey as it exists today, can it reach a 
8 
42% 
investing 
in digital 
channels 
17% 
of digital leaders 
studying the 
journey
deeper level of understanding around digital touchpoints. 
Through completing journey mapping exercises, 
Discover’s Head of Digital Mike Boush recognized the 
company’s digital transformation needs spanned 
much further than technology investments 
alone. Boush commented, “The customer 
journey online is the heart, and we need 
to understand how that flows and 
is mapped out. But after we went 
through that journey, we wanted to 
change some of our products.” 
Discover did evolve its products. As 
a result of its journey research, the 
company introduced the Discover it® 
card, designed with digital customers in 
mind. According to Boush, the Discover it® 
card was met with much success. Additionally, 
Discover’s journey mapping helped pinpoint areas 
of prioritization in strategy development and technology 
investments. “We put together a strategy on how to be 
digital based on journey mapping findings,” he explained. 
Understanding that the customer journey isn’t just for 
B2C, B2B organizations can also benefit from journey 
mapping research. Looking into digital behaviors and 
touchpoints of the direct business customer market (B2B) 
and also the ultimate customer markets (B2B2C) helps 
business customers succeed by learning where and how to 
introduce value into the entire customer chain. 
Sydney-based Westfield Shopping Centres 
is doing just that. According to Director 
of Shopping Centre Management 
and Marketing Andy Hedges, 
Westfield has opened its digital 
innovation center in San 
Francisco, Westfield Labs. “A 
lot of work Labs is doing is 
focused on understanding the 
shopper, the actual consumer, 
relationship with the brand, 
which is something that we’ve 
had very little engagement with 
at this point,” Hedges shared. He 
continued, “In Westfield’s context, it’s 
about how we facilitate the ability for any 
kind of engagement, anywhere, anytime, any way. 
‘Shop my way.’ The role that digital transformation 
plays in that is, how do facilities enhance the ‘shop my 
way’ capability?” 
Again, it comes down to answering, “What would my 
digital customer do?” 
9 
“The customer 
journey online is the 
heart, and we need to 
understand how that flows 
and is mapped out. But after 
we went through that journey, 
we wanted to change some 
of our products.” 
Mike Boush 
Head of Digital, Discover
DIGITAL 
TRANSFORMATION 
EFFORTS REFLECT 
A MORE HOLISTIC 
APPROACH TO 
ENHANCING THE 
DIGITAL CUSTMER 
EXPERIENCE (DCX). 
Of those companies that are formally 
undergoing digital transformation 
efforts, the consensus is clear: 
everything is focused on ultimately 
enhancing the digital customer 
experience (see Figure 3). 
10
FIGURE 3. 
THE MOST IMPORTANT DIGITAL TRANSFORMATION INITIATIVES RANKED 
Each of the following describes different types of digital transformation initiatives. Please indicate how important 
each type of initiative is to your digital transformation efforts. 
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 
25% 
a mobile world 71% Integrating all social, mobile, web, ecommerce, service efforts and 
investments to deliver an integrated and frictionless 
70% 36% 
customer experience 
Updating customer-facing technology systems 66% 29% 
Further research into our customers’ digital touch points, 
as there’s more to learn 63% 36% 
Building a social media program that is more competitive 
against our peers 58% 36% 
Creating a sense of urgency to show executives that our digital 
transformation effort does not align with current plans 54% 27% 
Overhauling customer service to meet expectations of connected 
customers 
46% 49% 
Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 
11
Of utmost importance, 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. Seventy-one percent are 
also prioritizing mobile sites and e-commerce, 
capitalizing on a world where the small screen is 
often the first screen. 
It’s important to note that customer experience, 
whether traditional or digital, cannot be meaningfully 
enhanced without looking at the whole picture. This makes 
channel strategy a means to a greater vision. Seventy percent of those surveyed 
are integrating channel strategies to relieve friction from the customer experience. 
Sixty-three percent are researching the customer journey to learn where to prioritize 
investments. Altimeter expects that number to rise in the near future. 
Bridget Dolan, vice president of digital at Sephora, explained the importance of 
open mindedness in customer experience, “Sephora is all about being unbiased 
from the start.” Dolan also shared the importance of customer centricity for driving 
digital transformation in meaningful ways: “As we started to build our social and 
mobile preferences, we were able to learn what was working because we have 100% 
customer feedback at all times. We’re really listening to that feedback.” 
There are also two standout line items from our survey that we see as 
an indicator of massive customer experience work to come. Fifty-four 
percent of companies we surveyed are studying digital customers 
to create a sense of urgency among senior leadership. The goal is 
paramount: to illustrate that digital transformation efforts may not align 
with current investments. Additionally, a promising 46% aim to overhaul 
customer service to meet the expectations of digital customers. 
12 
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. 
46% 
aim to overhaul 
customer service 
to meet the 
expectations 
of digital 
customers.
DIGITAL “CENTERS OF EXCELLENCE” UNITE 
DEDICATED TECHNOLOGY CIRCLES FOR A MORE 
HOLISTIC APPROACH. 
Digital transformation is bigger than any 
one function or discipline. Our initial 
report illustrated that often, individual 
efforts focused on innovation — in 
mobile or social, for example — rolled 
up into larger digital initiatives. 
Our current survey highlights various 
programs are coming together for 
a more unified approach to digital 
transformation. Digital Centers of 
Excellence (CoE), innovation teams, 
digital circles, and other cross-functional 
groups were banding together to apply 
insights, findings, and consistence 
across all digital touchpoints. 
These specialized task forces or steering 
committees are most often responsible 
for a combination of social, mobile, 
search, and online display advertising 
(see Figure 4). While our survey data puts 
e-commerce low in the mix, at 30%, 
our previous qualitative research with 
FIGURE 4. 
COMPANIES WITH A DIGITAL CENTER OF EXCELLENCE 
(COE) ARE FOCUSING ON THESE CHANNELS 
Each of the following describes different types of digital transformation initiatives. Please 
indicate how important each type of initiative is to your digital transformation efforts. 
71% 
Social 
63% 
Mobile 
59% 
Search 
56% 
Online 
display 
48% 
Email 
marketing 
37% 
Comms/ 
PR 
31% 
eCommerce 
Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 
13
more than 20 
enterprise 
brands over 
the last 
year put 
e-commerce, 
CX, and 
customer 
service among 
the top pillars of all centralized digital 
transformation efforts. 
Some organizations we studied are 
going “all-in” on digital transformation, 
with Sephora among those leading 
the way. Sephora’s executive team, 
according to Bridget Dolan, is its 
biggest opportunity to break the most 
ground. “It’s where we need all key 
stakeholders like the heads of stores, IT, 
Julie Bornstein our CMDO. Having all 
these people together ensures that any 
time we’re crossing chasms, 
we’re aligned.” 
Dolan also recognizes the importance 
of continued expansion once digital 
transformation begins. “Store digital 
is probably our newest area where 
we’ve formed something more official 
to ensure we’re on the same page to 
create integrated experiences,” 
she noted. 
A deeper dive into the CoE: Cross-functional 
digital hubs thrive when roles 
and responsibilities are formally defined, 
empowered, and managed. 
From our qualitative interviews and quantitative survey results, Altimeter 
learned alignment is key in digital transformation. As time progresses, digital 
hubs will further integrate strategies to optimize the DCX. Our survey data 
reflects, to varying extents, the consolidation of independent digital efforts. 
Without cooperation, individual channels will operate without the benefit of 
concentrated innovation explored in other areas. Ultimately, customers are 
the losers when the experience becomes or remains disconnected. Their 
journey is rife with friction and inconsistent experiences. 
Digital transformation requires more than the intention to invest in the 
relevant digital channels connected customers are using. It also requires 
more than the camaraderie or collaboration between distributed marketing 
teams. Digital hubs with cross-functional members also include resource-focused, 
decision-making departments, such as HR, legal, and compliance. 
One company we interviewed, but cannot identify due to its request 
for anonymity, is pushing the boundaries in a regulated industry widely 
known for risk-averse approaches to sales, marketing, and support. In 
our conversations, we learned this progressive pharmaceutical company 
consolidated disparate circles: social, mobile, and web, to form a more 
influential and cohesive digital center of excellence. “Our digital CoE is 
inclusive of many other parts it touches, which includes social and mobile,” 
the leader of the company’s digital transformation initiative explained. “This 
is our first effort that has been so integrated, but it’s more than just digital 
functions. Those involved in the process are corporate communications, 
legal, and compliance. We’re all in this circle together.” 
14 
30% 
of companies 
focus on 
e-commerce
To ensure a unified, well-organized, and methodical system to prioritize and fund 
digital transformation efforts, leaders of the digital hub must assign and accept roles 
and responsibilities to divide and conquer against the many competing priorities that 
will naturally emerge in the quest to improve the digital customer experience. 
An interviewee from a national financial institution highlighted a traditional 
measure to ensure the right people in orderly fashion do the right jobs. “Seven key 
leaders have been meeting weekly for the last year to help figure out our digital 
infrastructure,” the representative disclosed in our interview. 
We also heard the need to formally organize resources around these 
important efforts. “We use a RACI model [responsibility assignment 
matrix] around marketing processes. … All digital groups [gather] 
together in one digital CoE. So far, this work shows quantifiable 
proof that these individual centers of excellence that are 
working together are creating a better digital experience.” 
Although these digital steering committees are cross-functional, 
they don’t interact at the functional level. They’re sanctioned by 
the C-Suite to explore opportunities and challenges and to take 
action. In fact, our research shows that these special groups report 
directly to the C-Suite to continue to earn buy-in, but more so to 
educate leadership in new ways to engage customers so that they 
become company-wide priorities. 
Discover disclosed a routine around digital transformation. “Every Monday 
morning, we report as part of an executive meeting that includes the president 
of the company, CIO, other key executives, and presidents of business lines,” 
explained Boush. The C-suite takes digital customers seriously. “This [DCX and digital 
transformation] is discussed on an ongoing basis rather than just being a strategic 
plan that you do once and then put it in a corner,” he said. “This is moving faster, so 
we revisit on a weekly basis.” 
15 
“This is our first effort 
that has been so integrated, 
but it’s more than just 
digital functions. Those involved 
in the process are corporate 
communications, legal, and 
compliance. We’re all in this 
circle together.” 
Pharmaceutial Executive
THE MANDATE TO LEAD DIGITAL 
TRANSFORMATION IS OFTEN DRIVEN BY THE 
CMO, CEO, OR CIO. 
designs, strategizes, and product manages the scope, internal 
IT teams take those designs and develops against them. 
Through development, engineering, quality assurance, 
and infrastructure deployment, it’s important to 
know it’s a partnership.” 
The survey also reveals 
that chief digital officers 
account for 15% of digital 
transformation champions. 
Five percent are CXO, or 
Chief Experience Officer. 
In our interviews, we learned several 
champions were appointed to the 
position of Chief Digital Officer 
specifically to lead digital transformation, 
including Sephora’s Bornstein and Starbucks’ 
Brotman. Examining our qualitative and 
quantitative research, Altimeter Group expects 
the rise of chief digital officers to continue. Titles aside, 
balance between the CMO and CIO to address the needs and 
expectations of digital customers is required for true digital 
transformation. Companies must continually return to design 
around the scenarios of “what our digital customers will do.” 
Prior to conducting the survey, our qualitative research 
revealed the imperative to pursue digital transformation to 
align with digital customers usually did not come from 
the CEO. In our conversations with 20 leading 
brands, the only two CEOs leading the charge 
were Howard Schultz, CEO of Starbucks, and 
Jørgen Vig Knudstor, CEO of LEGO. 
Usually the CMO leads 
digital transformation at 
54%, followed by the CEO 
at 42% (see Figure 5). 
Interestingly, the CIO/CTO is cited as 
the third most likely source for digital 
adaptation, at almost 30%. This doesn’t 
mean IT’s involvement isn’t necessary to 
the success of digital transformation efforts. 
At Starbucks, CDO Adam Brotman understands 
a symbiotic relationship with IT is critical to getting 
digital projects off the ground and running smoothly. 
“My team, with IT’s input and partnership, drives the vision for 
the consumer-facing digital roadmap,” he explains. “We’re not 
in a vacuum, we have to have IT at the table collaborating on 
architecture, design, and some strategy. Then, once my team 
16 
“My team, with IT’s input 
and partnership, drives the 
vision for the consumer-facing 
digital roadmap... 
it’s important to know 
it’s a partnership.” 
Adam Brotman, CDO, Starbucks 
54% 
CMO 
15% 
CDO
FIGURE 5. 
EXECUTIVES CHAMPIONING 
DIGITAL TRANSFORMATION EFFORTS 
What executive roles champion and support digital transformation within your company? 
Select all that apply. 
CMO 54% 
CEO 42% 
CIO/CTO 29% 
CDO 
15% 
(Chief Digital Officer) CXO 
5% 
(Chief Experience Officer) Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 
17
DIGITAL TRANSFORMATION IS NOT WITHOUT 
ITS CHALLENGES. COMPANY CULTURE IS THE 
ROOT OF CHANGE. 
Company culture is the basis of digital transformation, a 
fact supported by both our qualitative and quantitative 
research from 2013-2014. Without openness to 
change, either naturally or as a specific initiative, digital 
transformation stalls. We find cultures are open to change 
but are stuck in directional ambiguity or risk aversion. 
As part of our survey, Altimeter Group set out to surface 
digital transformation challenges. 
We asked survey respondents to share the different 
types of challenges they face, ranked as extremely 
significant, somewhat significant, or not a significant 
challenge (see Figure 6). 
18
FIGURE 6. 
THE TOP CHALLENGES FACING DIGITAL TRANSFORMATION 
Each of the following describes different types of digital transformation initiatives. Please indicate how important 
each type of initiative is to your digital transformation efforts. 
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% 
Securing executive support of leadership 42% 39% 
Lack of data to justify value of digital transformation 34% 51% 
Risk management, compliance, and/or legal implications 31% 37% 
Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 
19
Culture is key. 
At the top of the 
list, changing 
company culture 
leads with 63% 
stating that it 
is an extremely 
significant 
challenge. On the 
flipside, only 3% felt 
changing culture is not a 
significant issue. 
Culture is a derivative of leadership 
and represents the company’s 
personality, value system, purpose, 
and people. What’s clear in every 
Altimeter Group research program is 
that the need to change is constant 
and pervasive. This is the effect of 
disruptive technology on business and 
society. Culture, too, must adapt to 
symbolize resilience and communicate 
a renewed vision to employees and 
the market overall. 
20 
63% 
see changing 
company culture 
as a challenge
Executive support is critical 
for digital transformation to 
start and succeed. 
The businesses we independently surveyed and 
interviewed recognize that executive support 
is key to sanctioning change and investing in 
it. Earning it is referenced as a challenge at 
42% (extremely) and 39% (somewhat). 
Andy Hedges at Westfield believes change 
agents must help executives envision new 
opportunities and possibilities. “We’ve got a 
lot of traditional, successful business leaders in 
our business. The consequence of that is that they’re very much 
keeping things in the digital space at a bit of an arm’s length. I 
don’t want it to be dismissed as a fringe conversation, because 
it’s real, and it’s happening.” 
To affect culture, Hedges believes executives must not only ‘get 
it’ but also become part of digital transformation. That starts with 
education and answering two key questions, “how do we help 
them come on this journey?” and “how do we help enough of the 
general c-suite leadership to fully un derstand the implications of 
the structural shift happening around us right now?” 
21 
42% 
recognize 
executive 
support 
is key
Cross-functional collaboration ties 
the experience together. 
Throughout the interviews Altimeter Group has conducted on digital transformation as 
well as this survey, we’ve learned cross-functional and departmental collaboration is a key 
inhibitor to change. 
Nestlé’s Global Head of Digital and Social Pete Blackshaw believes that digital customers 
necessitate the threading of heterogeneous groups and business units. “The potential of 
digital is its ability to bridge functions, soften silos, and make informal connections that you 
typically don’t have through reporting lines,” he said. 
In an era where every business must compete for digital customers, 
disparate groups must work together. Yet 56% of companies we 
surveyed find it difficult to work with the right people to create a 
consistent experience and journey that stiches together seamlessly. 
Ford’s Monty shared that the company is currently facing this issue. 
“Part of the challenge is that, at the same time, external-facing 
teams are thinking about how the governance works and who owns 
what.” Monty continued, “In parallel, we have to figure out internally 
what infrastructure looks like, the people and processes (HR), tools, and 
tech (IT). We have a need for an internal transformation with infrastructure going on at 
same time that were trying to steer on the outside.” 
This is tied to culture and leadership. Before there can be a digital CoE, functional 
leaders must know and feel empowered that their work lies beyond their domain as it 
is currently defined. 
22 
56% 
find cross-department 
collaboration 
difficult
Journey mapping starts 
with data, but data also 
requires a champion and a 
system to bring disparate 
teams to the table. 
This is why journey mapping is the epicenter 
of Altimeter Group’s definition of digital 
transformation. Change always begins with 
a stimulus. The lack of data to justify the 
value of digital transformation represents 
a challenge (somewhat, 51%, and extremely, 
34%). With GM, the case to collaborate was 
motivated by journey mapping, but getting relevant 
data in the hands of everyone responsible for engagement 
was next to impossible. David Mingle learned that 
to solve for internal engagement before external 
engagement, the company needed to learn about 
how insights around the DCX made (and could 
make) its way throughout the organization. 
“One pain point that came out loud and clear 
through journey mapping is that there is room for 
improvement on how to pass data across different 
lifecycle steps,” Mingle professed. “We want to pass 
the customer’s data from one step of the journey to the 
next as seamlessly as possible.” 
23 
51% 
somewhat feel lack 
of data represents 
a challenge 
“We want to pass 
the customer’s data 
from one step of the 
journey to the next as 
seamlessly as possible.” 
David Mingle, DCX, GM
Resources are precious 
commodities. 
Once change becomes what the digital 
customer ordered, an equal challenge, also 
at 56%, becomes resource procurement 
and allocation. In this survey, we define 
resources as people, technologies, 
expertise, and budget. Each, in its own 
way, is key to driving digital transformation. 
Time is of the essence, as Adrian Parker, former 
global head of social, mobile, and emerging media at Intuit and 
now at Patron Spirits Company, explained, “No one wants to 
take three years to be world class in digital. But then we don’t 
have the data we need to make the resource allocation 
happen. We don’t internally have the confident data 
we need to convince leaders or peers that they 
should invest in some of this new technology 
or positions or skills that will be crucial to a 
growth plan.” 
“Confident data,” as he puts it, is the 
source of digital transformation. It translates 
hunches or gut instinct into actionable 
insights that shape strategies, priorities, 
roles, and responsibilities. 
24 
56% 
challenged 
by resource 
procurement 
and allocation 
“We don’t internally 
have the confident data we 
need to convince leaders or 
peers that they should invest 
in some of this new technology 
or positions or skills that will 
be crucial to a growth plan” 
Adrian Parker, Patron Spirits Company
Change agents must make 
the case to earn executive 
support, and that takes 
journey mapping and data. 
To secure executive support requires, first, that change 
agents make the case and, second, that they do so based on 
understanding the nuances of their digital customers and how 
their behavior, decision-making, expectations, and values, differ 
from that of traditional customers. 
A significant challenge, as GM’s Mingle notes, is to re-teach 
decision-makers how to observe evolving markets through 
a customer-focused lens to influence new and more 
empathetic thinking. 
“Automotive has a long history of being very inward 
thinking,” Mingle explained. “It’s a real challenge 
for the industry to put the customer first, rather 
than their own functional hats or what’s best for 
them. What’s best for customers is best for us, 
but that’s not traditionally how automotive has 
thought about it.” 
25 
“What’s best for 
customers is best for 
us, but that’s not 
traditionally how 
automotive has 
thought about it.” 
David Mingle, DCX, GM
Customer- and digital-first approaches help change 
agents identify priorities and differences among 
customers to create a sense of urgency and a 
roadmap of priorities to solve for. 
Understanding customer behavior is listed 
as both an extremely and also 
somewhat of a significant 
challenge, at 53% and 
42%, respectively. 
The evidence 
to make the 
case and the 
insights in how 
to invest in digital 
transformation, where 
and how, is tied to customer journey 
mapping and data analysis. 
In our previous digital transformation report 
research, we also learned that understanding 
the behavior and impact of the new connected 
customer is at the heart of digital transformation. 
We’ve heard that digital — especially mobile — is often 
an afterthought or “bolt-on” program to existing marketing 
efforts. Yet it is the very thing that is changing customer 
behavior and preferences. Throughout our interviews, 
we heard “digital first” across the board. In more 
progressive companies, we found digital 
investments have evolved beyond a follow-up 
to investments in traditional touchpoints 
and supporting systems. Now, they’re 
leading the way toward transformation. 
Sephora is a company on the leading 
edge of digital transformation. 
Executives credit its progress to its 
aggressive “digital-first” approach. 
“We made it so that we weren’t thinking 
of digital in marketing as an afterthought, 
but rather digital at the forefront … not the 
physical experience first,” Bridget Dolan shared 
with us. “Digital should be in the thought process 
at the onset, resulting in a more seamless overarching 
client experience because you’re not retrofitting traditional 
26 
53% 
find understanding 
customer behavior an 
extremely significant 
challenge “Digital should be in the 
thought process at the onset, 
resulting in a more seamless 
overarching client experience 
because you’re not retrofitting 
traditional marketing to 
digital efforts.” 
Bridget Dolan 
VP Digital, Sephora
marketing to digital efforts.” 
Digital first, as the company 
recognizes it, is really just about 
having a customer-first culture 
and doing what it takes to 
exceed customer expectations 
and deliver meaningful 
customer experiences. 
A digital-first perspective materializes 
customer changes and also makes clear 
the “how” and “why” that helps strategists 
develop a strategic roadmap. In retail, the need to do so is truer now 
more than ever. 
Westfield’s Andy Hedges observes this as a do-or-die moment: 
“Retailers are not embracing the consumer changes. They know they 
have to do it, but don’t know how or where to start.” He believes the 
answer lies in perspective. 
“One challenge starts with not having a really clear strategy that 
puts the consumer at the center. Retailers are operating under a 
push mentality versus a pull mentality. Then, how do we free up 
investment?” Hedges asks. Much like Mingle’s take on shifting from 
inward thinking to a more empathetic approach, Hedges believes 
retailers can benefit from customer-centricity. It affects everything 
and addresses each of these challenges with insight and specificity. 
27 
“Retailers are not 
embracing the consumer 
changes. They know 
they have to do it, but 
don’t know how or 
where to start.” 
Andy Hedges, Westfield
63% 
Improved 
customer 
satisfaction 
(ie. NPS) 
53% 
Higher 
traffic 
46% 
Greater 
converions 
75% 
Lift in 
engagement 
49% 
Increased 
lead gen/ 
sales 
Digital 
transformation 
carries 
expectations that 
its impact can be 
measured at both 
customer and 
business levels. 
We asked strategists to share 
the top five benefits they see or 
anticipate as a result of formal digital 
transformation efforts (see Figure 7). 
Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 
28 
FIGURE 7. 
BENEFITS OF DIGITAL TRANSFORMATION 
What are the top 5 benefits you see or anticipate as a result of your formal digital 
transformation efforts? Select up to 5.
Digital 
transformation 
impacts the bottom 
line. 
The anticipated or realized boons 
that digital transformation carries are 
expansive. Some of those we found 
were more basic yet still important in 
nature. Strategists aimed to increase 
traffic (52%), increase lead gen and 
sales (50%), optimize conversion (46%) 
and amplify the company’s share of 
voice (46%). 
Some of these metrics, though, are 
also indicators of an earlier challenge 
we uncovered in the survey. 
Strategists felt that some investments 
in digital transformation were still 
driven by a campaign mentality, 
with 60% stating this as an extremely 
significant challenge. 
Digital 
transformation 
leads to boosts in 
collaboration and 
productivity. 
Benefits to digital transformation 
aren’t limited to external benefits. 
There are internal advantages as 
well. Collaboration, productivity, 
and unified approaches are 
also a significant metric, 41%, in 
measuring progress in digital 
transformation efforts. 
Digital 
transformation 
helps companies 
assess the 
real customer 
experience. 
At the top of the list, companies 
are seeing or hoping to see a lift in 
customer engagement (75%) and 
improved customer satisfaction (63%). 
These CX metrics are strong and 
promising indicators of a customer-first 
approach. Additionally, 44% expect to 
grow market share, a metric that is 
near and dear to every executive. 
The idea of customer experience 
is something that is also evolving. 
The gift of empathy that results from 
recognizing and appreciating the 
digital customer leads to innovation 
in every touchpoint and also every 
“moment of truth.” 
GM’s Mingle, for example, is rethinking 
the company’s moments of truth to 
translate its digital-first work into a 
sweeping customer-first initiative. 
“We’ve begun to look at how the 
effective delivery of a car is a moment 
of truth. When customers drive off the 
lot, they have to be fully confident in 
their purchase,” Mingle revealed. 
Improving customer experience is 
not solely tied to digital, but it is 
measurable as a result. “When we talk 
about technology going into a car, 
customers could be overwhelmed by 
it. There are opportunities within first 
few weeks of ownership to re-engage 
with these customers by inviting them 
back into the dealership to learn more 
about how the technology works, for 
example,” Mingle continued. 
Thus, digital transformation becomes 
a catalyst for re-imagining the overall 
customer experience. 
29
CONCLUSION 
1 2 3 
To continue on the road toward digital transformation, read Altimeter Group’s report, Digital Transformation: Why and How 
Companies Are Investing in New Business Models to Lead Digital Customer Experiences. In this report, digital strategists, 
change agents, and leaders will learn more about the three elements of digital transformation (vision and leadership, digital 
customer experience, and a digital transformation team) and the steps to take to become a customer-centric, digitally 
transformed company — from the inside out. Download it here. 
30 
THE KEY TO DIGITAL 
TRANSFORMATION 
IS THAT IT’S NOT ALL 
ABOUT TECHNOLOGY. 
Behavior, whether it’s related to 
customers, employees, values, or 
expectations, is as important (or more 
so) as becoming increasingly digital 
through new investments in strategy 
and technology. Borrowing from 
informatics professors Erik Stolterman 
and Anna Croon Fors, digital 
transformation can also refer to the 
changes associated with the application 
of digital technology in all aspects of 
human society. 
DIGITAL 
TRANSFORMATION 
COMES DOWN 
TO PEOPLE. 
However, customers aren’t the only 
ones who represent disruption — 
employees are also at the heart of 
change. In our research, we met scores 
of digital strategists who realized 
that the sense of urgency for digital 
transformation wouldn’t rain down from 
the C-Suite, but instead they recognized 
that change agents were needed to 
create awareness for change. The 
behavior of grassroots leaders stepping 
outside of their day-to-day role forms 
the roots of digital transformation for 
most businesses rising to the occasion. 
NO MATTER 
HOW DIGITAL 
TRANSFORMATION 
IS PURSUED, BUSINESSES 
ARE CHANGING ALONG 
THE WAY. 
Businesses undergoing digital 
transformation are each, in their own 
way, creating new processes, forming 
new business models and teams, and 
investing in new technologies and 
systems to work in ways that are more 
relevant to the state and evolution of 
today’s markets. In doing so, they’re 
leveraging digital transformation to 
become more customer-centric, 
more human, and renewing their 
culture for a new generation of 
customers and employees.
METHODOLOGY Altimeter Group’s 2014 Buyer Survey was comprised of three modules: Digital 
Transformation; Social Business/Future of Work; and Content Marketing. Responses were 
collected between January and April 2014. 
After beginning the survey, respondents were screened into the correct module(s) based 
on their career responsibility. To qualify for the Digital Transformation module of the 
survey, respondents self-identified, indicating that they carried responsibility for driving 
or managing their company’s digital strategy. The survey’s goals were twofold: to unearth 
where companies and supporting teams are in their metamorphic digital transformation 
efforts; and also to capture a current snapshot for future comparison. Fifty-nine digital 
strategists completed the digital transformation module of the survey. 
31 
This report includes input from market influencers who were interviewed by Altimeter Group during 
the course of this research. Not all interviewees are included in this list, due to request for anonymity. 
Input into this document does not represent a complete endorsement of the report by the companies 
listed below. 
• David Mingle, Executive Director, Customer Experience, General Motors 
• Rebecca Harris, Social Media Strategist 
• Kim Matlock, Senior Director of Digital Marketing and CRM, Hard Rock Hotels and Restaurants 
• Sebastian Quinn, Digital Marketing Manager, Hard Rock Hotels and Restaurants 
• Perry Hewitt, Chief Digital Officer, Harvard University 
• Adrian Parker, Global Head of Social, Mobile, and Emerging Media, Intuit (Now with Patron Spirits Company) 
• Lars Silberbauer, Global Director of Social Media, LEGO 
• Grant Ferguson, Leader for Systems of Engagement, Motorola Solutions 
• Pete Blackshaw, Global Head of Digital & Social, Nestle 
• Tony Hudnell, Associate Director of Consumer Relationship Management, Procter & Gamble 
• Bridget Dolan, Vice President of Interactive Media, Sephora 
• Adam Brotman, Chief Digital Officer and EVP, Digital Ventures, Starbucks 
• Andy Hedges, Director Shopping Centre Management and Marketing, Westfield Shopping Centres 
ECOSYSTEM INPUT
With thanks for support from: Jessica Groopman, Cheryl Knight, Shannon Latta, Briana Schweizer, 
Charlene Li, and Christine Tran. ACKNOWLEDGMENTS 
AUTHOR: BRIAN SOLIS, PRINCIPAL ANALYST 
Brian Solis (@briansolis) is a principal analyst at Altimeter Group. He is also an award-winning 
author, prominent blogger, and keynote speaker. Solis works with enterprise 
organizations and technology vendors to research the state and direction of markets, 
competitors, and customer behavior. Through the use of proven frameworks and best 
practices, Solis analyzes trends, opportunities, capabilities, and areas for improvement to 
align new media initiatives with business priorities. 
CONTRIBUTING AUTHOR: JAIMY SZYMANSKI, SENIOR RESEARCHER 
Jaimy Szymanski (@jaimy_marie) is a Senior Researcher with Altimeter Group. She has 
assisted in the creation of multiple open research reports covering how disruptive 
technologies impact business. Szymanski has also worked with Altimeter analysts on 
varied research and advisory projects for Fortune 500 companies in the telecomm, travel, 
pharmaceutical, financial, and technology industries. Her research interests lie in social TV, 
gamification, digital influence, and consumer mobile. 
EDITOR: REBECCA LIEB, ANALYST 
Rebecca Lieb (@lieblink) is an analyst at Altimeter Group covering content strategy, and 
digital advertising and media, encompassing brands, publishers, agencies and technology 
vendors. In addition to her background as a marketing executive, she was VP and editor-in- 
chief of the ClickZ Network for over seven years. For a portion of that time, she also 
ran Search Engine Watch. She’s written two books on digital marketing: The Truth About 
Search Engine Optimization (2009) and Content Marketing (2011). 
ABOUT THE 
AUTHORS
Altimeter is a research and consulting firm that helps companies understand and act on disruption. 
We give business leaders the insig ht and confidence to transform their companies in the face of 
disruption. In addition to publishing research, Altimeter Group analysts speak and provide strategy 
consulting on trends in digital transformation, social business, data disruption, and content marketing 
strategy. Contact Leslie Candy at leslie@altimetergroup.com or 617-448-4769. 
OPEN RESEARCH 
This independent research report was 100% funded by Altimeter Group. 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 Group. 
PERMISSIONS 
The Creative Commons License is Attribution-Noncommercial-Share Alike 3.0 United States at: 
http://creativecommons.org/licenses/by-nc-sa/3.0.Disclosure. 
DISCLOSURE 
Your trust is important to us, and as such, we believe in being open and transparent about our 
financial relationships. With their permission, we publish a list of our client base on our website. See 
our website to learn more: http://www.altimetergroup.com/disclosure. 
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. The authors and contributors of 
the information and data shall have no liability for errors or omissions contained herein or for 
interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark, 
or otherwise does not constitute or imply its endorsement, recommendation, or favoring by the 
authors or contributors and shall not be used for advertising or product-endorsement purposes. The 
opinions expressed herein are subject to change without notice. 
ABOUT ALTIMETER GROUP 
DISCLAIMER 
I. Solis, Brian, “Digital Transformation: Why and How Companies are Investing in New Business 
Models to Lead Digital Customer Experiences.” Altimeter Group, 2014. 
http://altimetergroupdigitaltransformation.com. 
II. Li, Charlene, and Brian Solis, “The State of Social Business 2013.” Altimeter Group, 2013. 
http://www.slideshare.net/Altimeter/report-the-state-of-social-business-2013-the-maturing-of-social-media- 
into-social-business. 
III. Stolterman, Erik, and Anna Croon Fors, “Information Technology and the Good Life,” in 
Information Systems Research: Relevant Theory and Informed Practice, 2004. ISBN 1-4020-8094-8, p. 
689. 
ENDNOTES 
33

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Altimeter: The 2014 state of digital transformation June 2014

  • 2. EXECUTIVE SUMMARY Digital transformation isn’t a trend owned by a particular role, nor a discipline that belongs to one department alone. It is, however, a significant movement where daring business leaders venture into tomorrow’s markets, today. In 2013, Altimeter Group researched how businesses explore digital transformation1. One finding revealed that while the word “digital” is part of “digital transformation,” the essence of digital transformation comes down to people and how their digital behaviors differ from that of the traditional customers before them. It’s also more than that. In our initial report on the topic, Digital Transformation: Why and How Companies Are Investing in New Business Models to Lead Digital Customer Experiences, we set out to determine how digital transformation unified disparate digital efforts under a common vision. In the process, we uncovered a more human story. We followed up our initial research with a 2014 survey, aimed at digital strategists, to further understand the state of digital transformation. This report shares its results and is designed to complement Altimeter Group’s annual State of Social Business report . Combined, this research helps strategists drive social business evolution and digital transformation based on insight from peers and market leaders. 2
  • 3. ` DIGITAL TRANSFORMATION MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE, AND THAT’S OKAY; WE’RE ALL LEARNING We still have a lot to learn about digital transformation: what it is, what it isn’t, and what it offers businesses that explore its permutations. In our initial research, we observed that digital transformation is most effective when it is tied to an end goal or series of milestones related to a future state. For example, some organizations invest in digital transformation from a technology standpoint as a way to improve efficiencies and scale around a specific area of business focus (i.e., manufacturing, customer service, marketing, or human resources). Others look at digital transformation as a series of channel investments to modernize and enhance customer and employee engagement. To focus our initial research, we defined digital transformation as a movement under a customer-centric lens: 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. By focusing our research under this lens, we can better learn how and why companies explore digital transformation in a particular business area. This makes the idea of change approachable rather than overwhelming. As each initiative expands, digital convergence becomes a byproduct, eventually resulting in the modernization of holistic business practices. CHANGE HAS TO START SOMEWHERE. 3
  • 4. Digital transformation is vast and often misunderstood as a formal effort to renovate business vision, models, and investments for a new digital economy. 4
  • 5. THE STATE OF DIGITAL TRANSFORMATION: 2014 SURVEY From the onset, Altimeter Group learned that definitions of and formalized methodologies toward digital transformation are indeed vast. As a category, it’s therefore difficult to surface a series of best practices outlining how businesses are changing and can grow. When we asked executives and digital strategists if their organization was undergoing a formal digital transformation effort in 2014, 88% answered “yes” (see Figure 1). Yet, this directly conflicts with both our previous qualitative research, as well as more detailed survey responses around components that prove digital transformation efforts are indeed occurring (i.e., journey mapping and a focus on customer experience, as seen in Figure 2). For example, when we asked digital leaders about their investments in identifying digital touchpoints and behaviors, 25% had mapped out the digital customer journey (see Figure 2). In other words: only one-quarter of the companies we surveyed have a clear understanding of new and underperforming digital touchpoints, yet 88% of the same cohort reports that they are undergoing digital transformation efforts. THIS LEADS US TO THE CONCLUSION THAT EVEN WHEN EXPLICITLY DEFINED, THE TERM “DIGITAL TRANSFORMATION” IS STILL MISUNDERSTOOD. Executives and strategists indicate that their organizations are undergoing digital transformation, yet the details of their efforts report the contrary. Altimeter Group found that digital transformation as an integrated and official endeavor is something many strategists are truly just beginning to understand and pursue. 5 25% mapped the journey 88% are undergoing digital transformation
  • 6. Which of the above best describes your company’s efforts around the customer journey/experience? The need to do so hasn’t come up or been made a priority. 3% 42% FIGURE 1. ORGANIZATIONS UNDERGOING DIGITAL TRANSFORMATION EFFORTS ` Is your organization undergoing a formal digital transformation effort in 2014? Altimeter defines digital transformation as: the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle. No 10% I don’t know. 2% FIGURE 2. COMPANIES MUST FOCUS ON JOURNEY MAPPING TO IMPROVE CUSTOMER EXPERIENCE We’ve talked about the need to do so but no one has taken the lead yet. We are researching customer behavior now and waiting for results to inform our digital transformation strategy. We have completely mapped out the customer journey within the last year and have a clear understanding of new digital touch-points. 12% We have not officially researched the digital customer journey but we have updated digital touch points with new social and mobile technologies and investments. Yes 88% 25% 12% Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 6
  • 7. Our research uncovered that investing in new digital technologies, such as social, mobile, big data, cloud, etc., doesn’t equate to uniting those efforts around a common vision supported by an updated, integrated infrastructure to effectively compete as a unified business in connected markets. This is where the discrepancy of digital transformation lies: STRATEGISTS OFTEN EQUATE THE TERM “DIGITAL TRANSFORMATION” WITH A SHIFT IN TECHNOLOGY INVESTMENT, WHEN ITS TRUE IMPLICATIONS SPAN FAR BEYOND TECHNOLOGY AND INTO THE REALMS OF INFRASTRUCTURE, ORGANIZATION, LEADERSHIP, AND A RENEWED FOCUS ON THE ENTIRE CUSTOMER EXPERIENCE. 7
  • 8. DIGITAL TRANSFORMATION DOESN’T MEAN DIGITAL INVESTMENT ALONE. IT DOES MEAN THINKING “DIGITAL FIRST.” Ford was an early adopter of social media, thanks in large part to its former head of global digital communications, Scott Monty. Over time, Ford recognized that their core customer group was changing. Under the direction of CEO Alan Mulally, the company hired its first CMO, Jim Farley. In an interview with Altimeter Group, Monty explained, “Farley earned the budget, attention, and trust of the executive team to push through a pilot digital initiative in marketing.” The idea was to prove out ideas before introducing radical shifts in strategy and investment. As a result, the company adopted a “Digital-First” approach as a replacement to the existing “One Social” work that was rising out of the social media team. This shift was made in an effort to integrate marketing across all channels around the premise of the crucial question, “What would my digital customer do?” Part of thinking “digital first” involves a renewed focus on the digital consumer and the evolving customer journey. Unfortunately, many companies don’t currently invest in journey mapping, which leads to challenges in proving the validity of and making the case for digital transformation. We found that only 17% of digital leaders are now in the process of studying the digital customer journey. There is hope: 42% of strategists report that while they have not yet researched the customer journey, they are investing in new digital channels. Our earlier research uncovered that an investment in new digital channels can be a catalyst both for digital transformation and an eventual deeper focus on digital customer experience (DCX). Only once an organization has begun to study the customer journey as it exists today, can it reach a 8 42% investing in digital channels 17% of digital leaders studying the journey
  • 9. deeper level of understanding around digital touchpoints. Through completing journey mapping exercises, Discover’s Head of Digital Mike Boush recognized the company’s digital transformation needs spanned much further than technology investments alone. Boush commented, “The customer journey online is the heart, and we need to understand how that flows and is mapped out. But after we went through that journey, we wanted to change some of our products.” Discover did evolve its products. As a result of its journey research, the company introduced the Discover it® card, designed with digital customers in mind. According to Boush, the Discover it® card was met with much success. Additionally, Discover’s journey mapping helped pinpoint areas of prioritization in strategy development and technology investments. “We put together a strategy on how to be digital based on journey mapping findings,” he explained. Understanding that the customer journey isn’t just for B2C, B2B organizations can also benefit from journey mapping research. Looking into digital behaviors and touchpoints of the direct business customer market (B2B) and also the ultimate customer markets (B2B2C) helps business customers succeed by learning where and how to introduce value into the entire customer chain. Sydney-based Westfield Shopping Centres is doing just that. According to Director of Shopping Centre Management and Marketing Andy Hedges, Westfield has opened its digital innovation center in San Francisco, Westfield Labs. “A lot of work Labs is doing is focused on understanding the shopper, the actual consumer, relationship with the brand, which is something that we’ve had very little engagement with at this point,” Hedges shared. He continued, “In Westfield’s context, it’s about how we facilitate the ability for any kind of engagement, anywhere, anytime, any way. ‘Shop my way.’ The role that digital transformation plays in that is, how do facilities enhance the ‘shop my way’ capability?” Again, it comes down to answering, “What would my digital customer do?” 9 “The customer journey online is the heart, and we need to understand how that flows and is mapped out. But after we went through that journey, we wanted to change some of our products.” Mike Boush Head of Digital, Discover
  • 10. DIGITAL TRANSFORMATION EFFORTS REFLECT A MORE HOLISTIC APPROACH TO ENHANCING THE DIGITAL CUSTMER EXPERIENCE (DCX). Of those companies that are formally undergoing digital transformation efforts, the consensus is clear: everything is focused on ultimately enhancing the digital customer experience (see Figure 3). 10
  • 11. FIGURE 3. THE MOST IMPORTANT DIGITAL TRANSFORMATION INITIATIVES RANKED Each of the following describes different types of digital transformation initiatives. Please indicate how important each type of initiative is to your digital transformation efforts. 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 25% a mobile world 71% Integrating all social, mobile, web, ecommerce, service efforts and investments to deliver an integrated and frictionless 70% 36% customer experience Updating customer-facing technology systems 66% 29% Further research into our customers’ digital touch points, as there’s more to learn 63% 36% Building a social media program that is more competitive against our peers 58% 36% Creating a sense of urgency to show executives that our digital transformation effort does not align with current plans 54% 27% Overhauling customer service to meet expectations of connected customers 46% 49% Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 11
  • 12. Of utmost importance, 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. Seventy-one percent are also prioritizing mobile sites and e-commerce, capitalizing on a world where the small screen is often the first screen. It’s important to note that customer experience, whether traditional or digital, cannot be meaningfully enhanced without looking at the whole picture. This makes channel strategy a means to a greater vision. Seventy percent of those surveyed are integrating channel strategies to relieve friction from the customer experience. Sixty-three percent are researching the customer journey to learn where to prioritize investments. Altimeter expects that number to rise in the near future. Bridget Dolan, vice president of digital at Sephora, explained the importance of open mindedness in customer experience, “Sephora is all about being unbiased from the start.” Dolan also shared the importance of customer centricity for driving digital transformation in meaningful ways: “As we started to build our social and mobile preferences, we were able to learn what was working because we have 100% customer feedback at all times. We’re really listening to that feedback.” There are also two standout line items from our survey that we see as an indicator of massive customer experience work to come. Fifty-four percent of companies we surveyed are studying digital customers to create a sense of urgency among senior leadership. The goal is paramount: to illustrate that digital transformation efforts may not align with current investments. Additionally, a promising 46% aim to overhaul customer service to meet the expectations of digital customers. 12 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. 46% aim to overhaul customer service to meet the expectations of digital customers.
  • 13. DIGITAL “CENTERS OF EXCELLENCE” UNITE DEDICATED TECHNOLOGY CIRCLES FOR A MORE HOLISTIC APPROACH. Digital transformation is bigger than any one function or discipline. Our initial report illustrated that often, individual efforts focused on innovation — in mobile or social, for example — rolled up into larger digital initiatives. Our current survey highlights various programs are coming together for a more unified approach to digital transformation. Digital Centers of Excellence (CoE), innovation teams, digital circles, and other cross-functional groups were banding together to apply insights, findings, and consistence across all digital touchpoints. These specialized task forces or steering committees are most often responsible for a combination of social, mobile, search, and online display advertising (see Figure 4). While our survey data puts e-commerce low in the mix, at 30%, our previous qualitative research with FIGURE 4. COMPANIES WITH A DIGITAL CENTER OF EXCELLENCE (COE) ARE FOCUSING ON THESE CHANNELS Each of the following describes different types of digital transformation initiatives. Please indicate how important each type of initiative is to your digital transformation efforts. 71% Social 63% Mobile 59% Search 56% Online display 48% Email marketing 37% Comms/ PR 31% eCommerce Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 13
  • 14. more than 20 enterprise brands over the last year put e-commerce, CX, and customer service among the top pillars of all centralized digital transformation efforts. Some organizations we studied are going “all-in” on digital transformation, with Sephora among those leading the way. Sephora’s executive team, according to Bridget Dolan, is its biggest opportunity to break the most ground. “It’s where we need all key stakeholders like the heads of stores, IT, Julie Bornstein our CMDO. Having all these people together ensures that any time we’re crossing chasms, we’re aligned.” Dolan also recognizes the importance of continued expansion once digital transformation begins. “Store digital is probably our newest area where we’ve formed something more official to ensure we’re on the same page to create integrated experiences,” she noted. A deeper dive into the CoE: Cross-functional digital hubs thrive when roles and responsibilities are formally defined, empowered, and managed. From our qualitative interviews and quantitative survey results, Altimeter learned alignment is key in digital transformation. As time progresses, digital hubs will further integrate strategies to optimize the DCX. Our survey data reflects, to varying extents, the consolidation of independent digital efforts. Without cooperation, individual channels will operate without the benefit of concentrated innovation explored in other areas. Ultimately, customers are the losers when the experience becomes or remains disconnected. Their journey is rife with friction and inconsistent experiences. Digital transformation requires more than the intention to invest in the relevant digital channels connected customers are using. It also requires more than the camaraderie or collaboration between distributed marketing teams. Digital hubs with cross-functional members also include resource-focused, decision-making departments, such as HR, legal, and compliance. One company we interviewed, but cannot identify due to its request for anonymity, is pushing the boundaries in a regulated industry widely known for risk-averse approaches to sales, marketing, and support. In our conversations, we learned this progressive pharmaceutical company consolidated disparate circles: social, mobile, and web, to form a more influential and cohesive digital center of excellence. “Our digital CoE is inclusive of many other parts it touches, which includes social and mobile,” the leader of the company’s digital transformation initiative explained. “This is our first effort that has been so integrated, but it’s more than just digital functions. Those involved in the process are corporate communications, legal, and compliance. We’re all in this circle together.” 14 30% of companies focus on e-commerce
  • 15. To ensure a unified, well-organized, and methodical system to prioritize and fund digital transformation efforts, leaders of the digital hub must assign and accept roles and responsibilities to divide and conquer against the many competing priorities that will naturally emerge in the quest to improve the digital customer experience. An interviewee from a national financial institution highlighted a traditional measure to ensure the right people in orderly fashion do the right jobs. “Seven key leaders have been meeting weekly for the last year to help figure out our digital infrastructure,” the representative disclosed in our interview. We also heard the need to formally organize resources around these important efforts. “We use a RACI model [responsibility assignment matrix] around marketing processes. … All digital groups [gather] together in one digital CoE. So far, this work shows quantifiable proof that these individual centers of excellence that are working together are creating a better digital experience.” Although these digital steering committees are cross-functional, they don’t interact at the functional level. They’re sanctioned by the C-Suite to explore opportunities and challenges and to take action. In fact, our research shows that these special groups report directly to the C-Suite to continue to earn buy-in, but more so to educate leadership in new ways to engage customers so that they become company-wide priorities. Discover disclosed a routine around digital transformation. “Every Monday morning, we report as part of an executive meeting that includes the president of the company, CIO, other key executives, and presidents of business lines,” explained Boush. The C-suite takes digital customers seriously. “This [DCX and digital transformation] is discussed on an ongoing basis rather than just being a strategic plan that you do once and then put it in a corner,” he said. “This is moving faster, so we revisit on a weekly basis.” 15 “This is our first effort that has been so integrated, but it’s more than just digital functions. Those involved in the process are corporate communications, legal, and compliance. We’re all in this circle together.” Pharmaceutial Executive
  • 16. THE MANDATE TO LEAD DIGITAL TRANSFORMATION IS OFTEN DRIVEN BY THE CMO, CEO, OR CIO. designs, strategizes, and product manages the scope, internal IT teams take those designs and develops against them. Through development, engineering, quality assurance, and infrastructure deployment, it’s important to know it’s a partnership.” The survey also reveals that chief digital officers account for 15% of digital transformation champions. Five percent are CXO, or Chief Experience Officer. In our interviews, we learned several champions were appointed to the position of Chief Digital Officer specifically to lead digital transformation, including Sephora’s Bornstein and Starbucks’ Brotman. Examining our qualitative and quantitative research, Altimeter Group expects the rise of chief digital officers to continue. Titles aside, balance between the CMO and CIO to address the needs and expectations of digital customers is required for true digital transformation. Companies must continually return to design around the scenarios of “what our digital customers will do.” Prior to conducting the survey, our qualitative research revealed the imperative to pursue digital transformation to align with digital customers usually did not come from the CEO. In our conversations with 20 leading brands, the only two CEOs leading the charge were Howard Schultz, CEO of Starbucks, and Jørgen Vig Knudstor, CEO of LEGO. Usually the CMO leads digital transformation at 54%, followed by the CEO at 42% (see Figure 5). Interestingly, the CIO/CTO is cited as the third most likely source for digital adaptation, at almost 30%. This doesn’t mean IT’s involvement isn’t necessary to the success of digital transformation efforts. At Starbucks, CDO Adam Brotman understands a symbiotic relationship with IT is critical to getting digital projects off the ground and running smoothly. “My team, with IT’s input and partnership, drives the vision for the consumer-facing digital roadmap,” he explains. “We’re not in a vacuum, we have to have IT at the table collaborating on architecture, design, and some strategy. Then, once my team 16 “My team, with IT’s input and partnership, drives the vision for the consumer-facing digital roadmap... it’s important to know it’s a partnership.” Adam Brotman, CDO, Starbucks 54% CMO 15% CDO
  • 17. FIGURE 5. EXECUTIVES CHAMPIONING DIGITAL TRANSFORMATION EFFORTS What executive roles champion and support digital transformation within your company? Select all that apply. CMO 54% CEO 42% CIO/CTO 29% CDO 15% (Chief Digital Officer) CXO 5% (Chief Experience Officer) Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 17
  • 18. DIGITAL TRANSFORMATION IS NOT WITHOUT ITS CHALLENGES. COMPANY CULTURE IS THE ROOT OF CHANGE. Company culture is the basis of digital transformation, a fact supported by both our qualitative and quantitative research from 2013-2014. Without openness to change, either naturally or as a specific initiative, digital transformation stalls. We find cultures are open to change but are stuck in directional ambiguity or risk aversion. As part of our survey, Altimeter Group set out to surface digital transformation challenges. We asked survey respondents to share the different types of challenges they face, ranked as extremely significant, somewhat significant, or not a significant challenge (see Figure 6). 18
  • 19. FIGURE 6. THE TOP CHALLENGES FACING DIGITAL TRANSFORMATION Each of the following describes different types of digital transformation initiatives. Please indicate how important each type of initiative is to your digital transformation efforts. 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% Securing executive support of leadership 42% 39% Lack of data to justify value of digital transformation 34% 51% Risk management, compliance, and/or legal implications 31% 37% Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 19
  • 20. Culture is key. At the top of the list, changing company culture leads with 63% stating that it is an extremely significant challenge. On the flipside, only 3% felt changing culture is not a significant issue. Culture is a derivative of leadership and represents the company’s personality, value system, purpose, and people. What’s clear in every Altimeter Group research program is that the need to change is constant and pervasive. This is the effect of disruptive technology on business and society. Culture, too, must adapt to symbolize resilience and communicate a renewed vision to employees and the market overall. 20 63% see changing company culture as a challenge
  • 21. Executive support is critical for digital transformation to start and succeed. The businesses we independently surveyed and interviewed recognize that executive support is key to sanctioning change and investing in it. Earning it is referenced as a challenge at 42% (extremely) and 39% (somewhat). Andy Hedges at Westfield believes change agents must help executives envision new opportunities and possibilities. “We’ve got a lot of traditional, successful business leaders in our business. The consequence of that is that they’re very much keeping things in the digital space at a bit of an arm’s length. I don’t want it to be dismissed as a fringe conversation, because it’s real, and it’s happening.” To affect culture, Hedges believes executives must not only ‘get it’ but also become part of digital transformation. That starts with education and answering two key questions, “how do we help them come on this journey?” and “how do we help enough of the general c-suite leadership to fully un derstand the implications of the structural shift happening around us right now?” 21 42% recognize executive support is key
  • 22. Cross-functional collaboration ties the experience together. Throughout the interviews Altimeter Group has conducted on digital transformation as well as this survey, we’ve learned cross-functional and departmental collaboration is a key inhibitor to change. Nestlé’s Global Head of Digital and Social Pete Blackshaw believes that digital customers necessitate the threading of heterogeneous groups and business units. “The potential of digital is its ability to bridge functions, soften silos, and make informal connections that you typically don’t have through reporting lines,” he said. In an era where every business must compete for digital customers, disparate groups must work together. Yet 56% of companies we surveyed find it difficult to work with the right people to create a consistent experience and journey that stiches together seamlessly. Ford’s Monty shared that the company is currently facing this issue. “Part of the challenge is that, at the same time, external-facing teams are thinking about how the governance works and who owns what.” Monty continued, “In parallel, we have to figure out internally what infrastructure looks like, the people and processes (HR), tools, and tech (IT). We have a need for an internal transformation with infrastructure going on at same time that were trying to steer on the outside.” This is tied to culture and leadership. Before there can be a digital CoE, functional leaders must know and feel empowered that their work lies beyond their domain as it is currently defined. 22 56% find cross-department collaboration difficult
  • 23. Journey mapping starts with data, but data also requires a champion and a system to bring disparate teams to the table. This is why journey mapping is the epicenter of Altimeter Group’s definition of digital transformation. Change always begins with a stimulus. The lack of data to justify the value of digital transformation represents a challenge (somewhat, 51%, and extremely, 34%). With GM, the case to collaborate was motivated by journey mapping, but getting relevant data in the hands of everyone responsible for engagement was next to impossible. David Mingle learned that to solve for internal engagement before external engagement, the company needed to learn about how insights around the DCX made (and could make) its way throughout the organization. “One pain point that came out loud and clear through journey mapping is that there is room for improvement on how to pass data across different lifecycle steps,” Mingle professed. “We want to pass the customer’s data from one step of the journey to the next as seamlessly as possible.” 23 51% somewhat feel lack of data represents a challenge “We want to pass the customer’s data from one step of the journey to the next as seamlessly as possible.” David Mingle, DCX, GM
  • 24. Resources are precious commodities. Once change becomes what the digital customer ordered, an equal challenge, also at 56%, becomes resource procurement and allocation. In this survey, we define resources as people, technologies, expertise, and budget. Each, in its own way, is key to driving digital transformation. Time is of the essence, as Adrian Parker, former global head of social, mobile, and emerging media at Intuit and now at Patron Spirits Company, explained, “No one wants to take three years to be world class in digital. But then we don’t have the data we need to make the resource allocation happen. We don’t internally have the confident data we need to convince leaders or peers that they should invest in some of this new technology or positions or skills that will be crucial to a growth plan.” “Confident data,” as he puts it, is the source of digital transformation. It translates hunches or gut instinct into actionable insights that shape strategies, priorities, roles, and responsibilities. 24 56% challenged by resource procurement and allocation “We don’t internally have the confident data we need to convince leaders or peers that they should invest in some of this new technology or positions or skills that will be crucial to a growth plan” Adrian Parker, Patron Spirits Company
  • 25. Change agents must make the case to earn executive support, and that takes journey mapping and data. To secure executive support requires, first, that change agents make the case and, second, that they do so based on understanding the nuances of their digital customers and how their behavior, decision-making, expectations, and values, differ from that of traditional customers. A significant challenge, as GM’s Mingle notes, is to re-teach decision-makers how to observe evolving markets through a customer-focused lens to influence new and more empathetic thinking. “Automotive has a long history of being very inward thinking,” Mingle explained. “It’s a real challenge for the industry to put the customer first, rather than their own functional hats or what’s best for them. What’s best for customers is best for us, but that’s not traditionally how automotive has thought about it.” 25 “What’s best for customers is best for us, but that’s not traditionally how automotive has thought about it.” David Mingle, DCX, GM
  • 26. Customer- and digital-first approaches help change agents identify priorities and differences among customers to create a sense of urgency and a roadmap of priorities to solve for. Understanding customer behavior is listed as both an extremely and also somewhat of a significant challenge, at 53% and 42%, respectively. The evidence to make the case and the insights in how to invest in digital transformation, where and how, is tied to customer journey mapping and data analysis. In our previous digital transformation report research, we also learned that understanding the behavior and impact of the new connected customer is at the heart of digital transformation. We’ve heard that digital — especially mobile — is often an afterthought or “bolt-on” program to existing marketing efforts. Yet it is the very thing that is changing customer behavior and preferences. Throughout our interviews, we heard “digital first” across the board. In more progressive companies, we found digital investments have evolved beyond a follow-up to investments in traditional touchpoints and supporting systems. Now, they’re leading the way toward transformation. Sephora is a company on the leading edge of digital transformation. Executives credit its progress to its aggressive “digital-first” approach. “We made it so that we weren’t thinking of digital in marketing as an afterthought, but rather digital at the forefront … not the physical experience first,” Bridget Dolan shared with us. “Digital should be in the thought process at the onset, resulting in a more seamless overarching client experience because you’re not retrofitting traditional 26 53% find understanding customer behavior an extremely significant challenge “Digital should be in the thought process at the onset, resulting in a more seamless overarching client experience because you’re not retrofitting traditional marketing to digital efforts.” Bridget Dolan VP Digital, Sephora
  • 27. marketing to digital efforts.” Digital first, as the company recognizes it, is really just about having a customer-first culture and doing what it takes to exceed customer expectations and deliver meaningful customer experiences. A digital-first perspective materializes customer changes and also makes clear the “how” and “why” that helps strategists develop a strategic roadmap. In retail, the need to do so is truer now more than ever. Westfield’s Andy Hedges observes this as a do-or-die moment: “Retailers are not embracing the consumer changes. They know they have to do it, but don’t know how or where to start.” He believes the answer lies in perspective. “One challenge starts with not having a really clear strategy that puts the consumer at the center. Retailers are operating under a push mentality versus a pull mentality. Then, how do we free up investment?” Hedges asks. Much like Mingle’s take on shifting from inward thinking to a more empathetic approach, Hedges believes retailers can benefit from customer-centricity. It affects everything and addresses each of these challenges with insight and specificity. 27 “Retailers are not embracing the consumer changes. They know they have to do it, but don’t know how or where to start.” Andy Hedges, Westfield
  • 28. 63% Improved customer satisfaction (ie. NPS) 53% Higher traffic 46% Greater converions 75% Lift in engagement 49% Increased lead gen/ sales Digital transformation carries expectations that its impact can be measured at both customer and business levels. We asked strategists to share the top five benefits they see or anticipate as a result of formal digital transformation efforts (see Figure 7). Source: Altimeter Group Digital Transformation Survey, 2014. N=59. 28 FIGURE 7. BENEFITS OF DIGITAL TRANSFORMATION What are the top 5 benefits you see or anticipate as a result of your formal digital transformation efforts? Select up to 5.
  • 29. Digital transformation impacts the bottom line. The anticipated or realized boons that digital transformation carries are expansive. Some of those we found were more basic yet still important in nature. Strategists aimed to increase traffic (52%), increase lead gen and sales (50%), optimize conversion (46%) and amplify the company’s share of voice (46%). Some of these metrics, though, are also indicators of an earlier challenge we uncovered in the survey. Strategists felt that some investments in digital transformation were still driven by a campaign mentality, with 60% stating this as an extremely significant challenge. Digital transformation leads to boosts in collaboration and productivity. Benefits to digital transformation aren’t limited to external benefits. There are internal advantages as well. Collaboration, productivity, and unified approaches are also a significant metric, 41%, in measuring progress in digital transformation efforts. Digital transformation helps companies assess the real customer experience. At the top of the list, companies are seeing or hoping to see a lift in customer engagement (75%) and improved customer satisfaction (63%). These CX metrics are strong and promising indicators of a customer-first approach. Additionally, 44% expect to grow market share, a metric that is near and dear to every executive. The idea of customer experience is something that is also evolving. The gift of empathy that results from recognizing and appreciating the digital customer leads to innovation in every touchpoint and also every “moment of truth.” GM’s Mingle, for example, is rethinking the company’s moments of truth to translate its digital-first work into a sweeping customer-first initiative. “We’ve begun to look at how the effective delivery of a car is a moment of truth. When customers drive off the lot, they have to be fully confident in their purchase,” Mingle revealed. Improving customer experience is not solely tied to digital, but it is measurable as a result. “When we talk about technology going into a car, customers could be overwhelmed by it. There are opportunities within first few weeks of ownership to re-engage with these customers by inviting them back into the dealership to learn more about how the technology works, for example,” Mingle continued. Thus, digital transformation becomes a catalyst for re-imagining the overall customer experience. 29
  • 30. CONCLUSION 1 2 3 To continue on the road toward digital transformation, read Altimeter Group’s report, Digital Transformation: Why and How Companies Are Investing in New Business Models to Lead Digital Customer Experiences. In this report, digital strategists, change agents, and leaders will learn more about the three elements of digital transformation (vision and leadership, digital customer experience, and a digital transformation team) and the steps to take to become a customer-centric, digitally transformed company — from the inside out. Download it here. 30 THE KEY TO DIGITAL TRANSFORMATION IS THAT IT’S NOT ALL ABOUT TECHNOLOGY. Behavior, whether it’s related to customers, employees, values, or expectations, is as important (or more so) as becoming increasingly digital through new investments in strategy and technology. Borrowing from informatics professors Erik Stolterman and Anna Croon Fors, digital transformation can also refer to the changes associated with the application of digital technology in all aspects of human society. DIGITAL TRANSFORMATION COMES DOWN TO PEOPLE. However, customers aren’t the only ones who represent disruption — employees are also at the heart of change. In our research, we met scores of digital strategists who realized that the sense of urgency for digital transformation wouldn’t rain down from the C-Suite, but instead they recognized that change agents were needed to create awareness for change. The behavior of grassroots leaders stepping outside of their day-to-day role forms the roots of digital transformation for most businesses rising to the occasion. NO MATTER HOW DIGITAL TRANSFORMATION IS PURSUED, BUSINESSES ARE CHANGING ALONG THE WAY. Businesses undergoing digital transformation are each, in their own way, creating new processes, forming new business models and teams, and investing in new technologies and systems to work in ways that are more relevant to the state and evolution of today’s markets. In doing so, they’re leveraging digital transformation to become more customer-centric, more human, and renewing their culture for a new generation of customers and employees.
  • 31. METHODOLOGY Altimeter Group’s 2014 Buyer Survey was comprised of three modules: Digital Transformation; Social Business/Future of Work; and Content Marketing. Responses were collected between January and April 2014. After beginning the survey, respondents were screened into the correct module(s) based on their career responsibility. To qualify for the Digital Transformation module of the survey, respondents self-identified, indicating that they carried responsibility for driving or managing their company’s digital strategy. The survey’s goals were twofold: to unearth where companies and supporting teams are in their metamorphic digital transformation efforts; and also to capture a current snapshot for future comparison. Fifty-nine digital strategists completed the digital transformation module of the survey. 31 This report includes input from market influencers who were interviewed by Altimeter Group during the course of this research. Not all interviewees are included in this list, due to request for anonymity. Input into this document does not represent a complete endorsement of the report by the companies listed below. • David Mingle, Executive Director, Customer Experience, General Motors • Rebecca Harris, Social Media Strategist • Kim Matlock, Senior Director of Digital Marketing and CRM, Hard Rock Hotels and Restaurants • Sebastian Quinn, Digital Marketing Manager, Hard Rock Hotels and Restaurants • Perry Hewitt, Chief Digital Officer, Harvard University • Adrian Parker, Global Head of Social, Mobile, and Emerging Media, Intuit (Now with Patron Spirits Company) • Lars Silberbauer, Global Director of Social Media, LEGO • Grant Ferguson, Leader for Systems of Engagement, Motorola Solutions • Pete Blackshaw, Global Head of Digital & Social, Nestle • Tony Hudnell, Associate Director of Consumer Relationship Management, Procter & Gamble • Bridget Dolan, Vice President of Interactive Media, Sephora • Adam Brotman, Chief Digital Officer and EVP, Digital Ventures, Starbucks • Andy Hedges, Director Shopping Centre Management and Marketing, Westfield Shopping Centres ECOSYSTEM INPUT
  • 32. With thanks for support from: Jessica Groopman, Cheryl Knight, Shannon Latta, Briana Schweizer, Charlene Li, and Christine Tran. ACKNOWLEDGMENTS AUTHOR: BRIAN SOLIS, PRINCIPAL ANALYST Brian Solis (@briansolis) is a principal analyst at Altimeter Group. He is also an award-winning author, prominent blogger, and keynote speaker. Solis works with enterprise organizations and technology vendors to research the state and direction of markets, competitors, and customer behavior. Through the use of proven frameworks and best practices, Solis analyzes trends, opportunities, capabilities, and areas for improvement to align new media initiatives with business priorities. CONTRIBUTING AUTHOR: JAIMY SZYMANSKI, SENIOR RESEARCHER Jaimy Szymanski (@jaimy_marie) is a Senior Researcher with Altimeter Group. She has assisted in the creation of multiple open research reports covering how disruptive technologies impact business. Szymanski has also worked with Altimeter analysts on varied research and advisory projects for Fortune 500 companies in the telecomm, travel, pharmaceutical, financial, and technology industries. Her research interests lie in social TV, gamification, digital influence, and consumer mobile. EDITOR: REBECCA LIEB, ANALYST Rebecca Lieb (@lieblink) is an analyst at Altimeter Group covering content strategy, and digital advertising and media, encompassing brands, publishers, agencies and technology vendors. In addition to her background as a marketing executive, she was VP and editor-in- chief of the ClickZ Network for over seven years. For a portion of that time, she also ran Search Engine Watch. She’s written two books on digital marketing: The Truth About Search Engine Optimization (2009) and Content Marketing (2011). ABOUT THE AUTHORS
  • 33. Altimeter is a research and consulting firm that helps companies understand and act on disruption. We give business leaders the insig ht and confidence to transform their companies in the face of disruption. In addition to publishing research, Altimeter Group analysts speak and provide strategy consulting on trends in digital transformation, social business, data disruption, and content marketing strategy. Contact Leslie Candy at leslie@altimetergroup.com or 617-448-4769. OPEN RESEARCH This independent research report was 100% funded by Altimeter Group. 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 Group. PERMISSIONS The Creative Commons License is Attribution-Noncommercial-Share Alike 3.0 United States at: http://creativecommons.org/licenses/by-nc-sa/3.0.Disclosure. DISCLOSURE Your trust is important to us, and as such, we believe in being open and transparent about our financial relationships. With their permission, we publish a list of our client base on our website. See our website to learn more: http://www.altimetergroup.com/disclosure. 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. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark, or otherwise does not constitute or imply its endorsement, recommendation, or favoring by the authors or contributors and shall not be used for advertising or product-endorsement purposes. The opinions expressed herein are subject to change without notice. ABOUT ALTIMETER GROUP DISCLAIMER I. Solis, Brian, “Digital Transformation: Why and How Companies are Investing in New Business Models to Lead Digital Customer Experiences.” Altimeter Group, 2014. http://altimetergroupdigitaltransformation.com. II. Li, Charlene, and Brian Solis, “The State of Social Business 2013.” Altimeter Group, 2013. http://www.slideshare.net/Altimeter/report-the-state-of-social-business-2013-the-maturing-of-social-media- into-social-business. III. Stolterman, Erik, and Anna Croon Fors, “Information Technology and the Good Life,” in Information Systems Research: Relevant Theory and Informed Practice, 2004. ISBN 1-4020-8094-8, p. 689. ENDNOTES 33