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[Slides] The 2014 State of Digital Transformation by Altimeter Group
Welcome!! 
Brian Solis! 
Principal Analyst! 
#DigitalTransformation! 
Jaimy Szymanski! 
Senior Researcher! 
Slides and this recording will be emailed to you after this webinar.! 
Use the Readytalk control panel to submit questions at any time.!
Read the Open Research report! 
· Download at ! 
AltimeterGroupDigitalTransformation.com! 
· Based on! 
· Interviews with 20 ecosystem 
contributors from companies 
undergoing digital 
transformation in 2013 and 2014! 
· Survey of 59 digital strategists 
and executives at companies in 
Q1 2014!
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
In this report, we do not tackle enterprise-wide digital 
transformation. Instead, we conducted our research 
through the lens of customer experience to learn 
how companies are adapting to new consumerism. !
Altimeter Group 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. !
Politics.! 
Egos.! 
Self-preservation.! 
Lack of understanding and expertise.! 
Not my job.!
Digital transformation 
represents the quest 
to understand how 
disruptive technology 
affects the digital 
customer experience.!
[Slides] The 2014 State of Digital Transformation by Altimeter Group
Change has to start somewhere.
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
Customer journey 
mapping yields a new 
understanding that 
consumer habits and 
expectations are 
outpacing current 
organizational 
infrastructures. ! 
• What uniquely defines the 
persona of our customers? 
• What is different about their 
customer journey? 
• What are the touchpoints they 
frequent, how do they use 
them, and with what devices? 
• What are their expectations, 
what do they value, and how 
do they define success? 
• How are they influenced, and 
by whom? How and whom do 
they in turn influence? 
As consumption habits shift, 
brands require media ubiquity!
[Slides] The 2014 State of Digital Transformation by Altimeter Group
THIS LEADS US TO THE ! 
CONCLUSION THAT EVEN WHEN ! 
EXPLICITLY DEFINED, ! 
THE TERM “DIGITAL 
TRANSFORMATION” IS 
STILL MISUNDERSTOOD. "
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
“For a long time, we’ve 
been based in TV and 
print, and digital 
extension was just a 
microcosm of the 
traditional campaign. 
Our CMO Jim Farley is 
challenging teams now 
to think digitally first.” ! 
– Scott Monty, Ford
Digital first requires that strategists re-imagine the entire journey where 
digital is not only first, it is fundamental. Efforts are most meaningful when 
they consider the broader picture of customer behavior in an attempt to 
answer the question, “What would my digital customer do?”
Digitally savvy executives recognize the 
need for digital transformation."
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
Cross-Functional Digital Hubs Thrive When 
Roles and Responsibilities Are Formally 
Defined, Empowered, and Managed! 
! 
· Digital hubs with cross-functional members also include 
resource-focused, decision-making departments, such as IT, 
HR, legal, and compliance.! 
· 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.! 
· 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.!
Digital transformation is rife with inhibitors. 
Change takes collaboration, resources, 
leadership, and an understanding of its 
business value. ! 
! 
In organizing or reorganizing for digital 
transformation, companies must approach 
challenges head-on to create a seamless ! 
digital experience that meets consumer 
expectations at every touchpoint."
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
Digital transformation teams are a 
sign of formalized change efforts! 
· Special workgroups are forming to explore and 
expedite transformation. ! 
· Executive support brings people together from 
different groups to collaborate on solutions.! 
· IT is an ideal ally to change agents and DCX 
teams in impacting the customer journey and 
streamlining digital transformation.!
Marketing 
IT
Marketing 
IT 
MIT
“These two functions have tremendous ability to 
impact customer experience through change. 
Marketing defines the vision of the company and 
value proposition for our customers, while IT 
touches and enables every part of our business and 
is the ultimate orchestrator of change. Combining 
these two functions allows us to more effectively 
align our strategy and execution to become a more 
customer solutions-driven business.”! 
- Grant Ferguson, Motorola Solutions
“Digital and IT have to 
be in lock-step. What 
goes out the window is 
finger pointing, and 
hand holding comes in. 
IT participates in every 
meeting to understand 
goals and objectives 
and to provide inventive 
but realistic solutions, 
timelines, and costs.” ! 
! 
- Bridget Dolan, Sephora!
[Slides] The 2014 State of Digital Transformation by Altimeter Group
Digital transformation carries 
expectations that its impact can be 
measured at both business and 
customer levels.!
[Slides] The 2014 State of Digital Transformation by Altimeter Group
[Slides] The 2014 State of Digital Transformation by Altimeter Group
There are only two ways to ! 
influence human behavior: ! 
manipulate it or inspire it!
Born Digital! 
Information, products, 
services, and supporting 
systems that align with 
expectations and behaviors 
of Generation C… 
consistently, seamlessly, 
across every screen in 
every scenario.!
It takes empathy. 
It takes courage. 
It takes vision. 
It takes resilience.
Thank You! Questions?! 
Brian Solis! 
brian@altimetergroup.com! 
briansolis.com! 
@briansolis! 
! 
Jaimy Szymanski! 
jaimy@altimetergroup.com! 
jaimyszymanski.com! 
@jaimy_marie! 
Altimeter Group provides research and advisory for companies 
challenged by business disruptions, enabling them to pursue 
new opportunities and business models. ! 
Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be 
reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. 
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.! 
!

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[Slides] The 2014 State of Digital Transformation by Altimeter Group

  • 2. Welcome!! Brian Solis! Principal Analyst! #DigitalTransformation! Jaimy Szymanski! Senior Researcher! Slides and this recording will be emailed to you after this webinar.! Use the Readytalk control panel to submit questions at any time.!
  • 3. Read the Open Research report! · Download at ! AltimeterGroupDigitalTransformation.com! · Based on! · Interviews with 20 ecosystem contributors from companies undergoing digital transformation in 2013 and 2014! · Survey of 59 digital strategists and executives at companies in Q1 2014!
  • 6. In this report, we do not tackle enterprise-wide digital transformation. Instead, we conducted our research through the lens of customer experience to learn how companies are adapting to new consumerism. !
  • 7. Altimeter Group 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. !
  • 8. Politics.! Egos.! Self-preservation.! Lack of understanding and expertise.! Not my job.!
  • 9. Digital transformation represents the quest to understand how disruptive technology affects the digital customer experience.!
  • 11. Change has to start somewhere.
  • 16. Customer journey mapping yields a new understanding that consumer habits and expectations are outpacing current organizational infrastructures. ! • What uniquely defines the persona of our customers? • What is different about their customer journey? • What are the touchpoints they frequent, how do they use them, and with what devices? • What are their expectations, what do they value, and how do they define success? • How are they influenced, and by whom? How and whom do they in turn influence? As consumption habits shift, brands require media ubiquity!
  • 18. THIS LEADS US TO THE ! CONCLUSION THAT EVEN WHEN ! EXPLICITLY DEFINED, ! THE TERM “DIGITAL TRANSFORMATION” IS STILL MISUNDERSTOOD. "
  • 21. “For a long time, we’ve been based in TV and print, and digital extension was just a microcosm of the traditional campaign. Our CMO Jim Farley is challenging teams now to think digitally first.” ! – Scott Monty, Ford
  • 22. Digital first requires that strategists re-imagine the entire journey where digital is not only first, it is fundamental. Efforts are most meaningful when they consider the broader picture of customer behavior in an attempt to answer the question, “What would my digital customer do?”
  • 23. Digitally savvy executives recognize the need for digital transformation."
  • 32. Cross-Functional Digital Hubs Thrive When Roles and Responsibilities Are Formally Defined, Empowered, and Managed! ! · Digital hubs with cross-functional members also include resource-focused, decision-making departments, such as IT, HR, legal, and compliance.! · 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.! · 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.!
  • 33. Digital transformation is rife with inhibitors. Change takes collaboration, resources, leadership, and an understanding of its business value. ! ! In organizing or reorganizing for digital transformation, companies must approach challenges head-on to create a seamless ! digital experience that meets consumer expectations at every touchpoint."
  • 37. Digital transformation teams are a sign of formalized change efforts! · Special workgroups are forming to explore and expedite transformation. ! · Executive support brings people together from different groups to collaborate on solutions.! · IT is an ideal ally to change agents and DCX teams in impacting the customer journey and streamlining digital transformation.!
  • 40. “These two functions have tremendous ability to impact customer experience through change. Marketing defines the vision of the company and value proposition for our customers, while IT touches and enables every part of our business and is the ultimate orchestrator of change. Combining these two functions allows us to more effectively align our strategy and execution to become a more customer solutions-driven business.”! - Grant Ferguson, Motorola Solutions
  • 41. “Digital and IT have to be in lock-step. What goes out the window is finger pointing, and hand holding comes in. IT participates in every meeting to understand goals and objectives and to provide inventive but realistic solutions, timelines, and costs.” ! ! - Bridget Dolan, Sephora!
  • 43. Digital transformation carries expectations that its impact can be measured at both business and customer levels.!
  • 46. There are only two ways to ! influence human behavior: ! manipulate it or inspire it!
  • 47. Born Digital! Information, products, services, and supporting systems that align with expectations and behaviors of Generation C… consistently, seamlessly, across every screen in every scenario.!
  • 48. It takes empathy. It takes courage. It takes vision. It takes resilience.
  • 49. Thank You! Questions?! Brian Solis! brian@altimetergroup.com! briansolis.com! @briansolis! ! Jaimy Szymanski! jaimy@altimetergroup.com! jaimyszymanski.com! @jaimy_marie! Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models. ! Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. 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.! !