Altimeter Group released their new report on The 2014 State of Digital Transformation by Brian Solis earlier this week. The central conclusion of the report, which is available for free download: “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.” In other words, the vast majority of people Altimeter interviewed for this report claimed they are undergoing Digital Transformation, even though most of them don’t know what it is.
Companies revealed this surprising level of ignorance in spite of Altimeter’s clear definition of Digital Transformation: “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.” Brian Solis added that companies needed to think of Digital Transformation as a “formal effort to renovate business vision, models, and investments for a new digital economy.” Yet, according to the report, “Even when explicitly defined, the term ‘digital transformation’ is still misunderstood.”
The challenge with this definition wasn’t the investment in technology. Rather, the realignment of business models presented the greatest challenge – the transformation part of Digital Transformation. In fact, different people had different misconceptions, sometimes based on their role. Strategists, for example, “often equate the term ‘digital transformation’ with a shift in technology investment,” according to the report. Solis added that the companies he interviewed were “thinking they are changing but in reality they’re only investing in technology. That’s not really digital transformation.”
Read the entire article at http://www.forbes.com/sites/jasonbloomberg/2014/07/31/digital-transformation-by-any-other-name/.
Image credit: Sid Mosdell
