Companies Leading Digital Transformation are Doing This (Are You?)

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What are the X factors that separate companies thriving with digital transformation from those lagging behind?

What are leaders and their teams doing exceptionally well in the era of digital transformation?

On Wednesday’s livestream , I was joined by my colleague Omar Akhtar at Altimeter, who shared his latest research on the biggest shifts we’re seeing around digital transformation. My top takeaway was:

What separates top performers from the rest of the pack

When he looked at the data, Omar quickly pinpointed several characteristics that differentiate thriving companies from those seeing average results.

1. Transformation is led from the top

The number one indicator of success was a transformation led by a CEO – not a CIO, a CTO, or a CMO.?

While these C-suite roles are great at modernizing their own functions, they don’t have the power a CEO does to enlist the resources needed for a full-scale transformation.

And – let’s be honest – a CEO leading the charge immediately lends credibility to the transformation!?

Omar found these CEO-led transformations were successful because the CEO is the only person equipped to coordinate companywide. Without that level of leadership and vision, a transformation will likely experience lackluster results.

2. Focus on customer AND employee experience?

Companies driving successful digital transformation focus on customer experience and employee experience .?

Customer centricity is critical, but having the vision to invest in employees sets you apart. Employees who have autonomy to solve problems, tools to do their jobs, and the support to integrate their work and personal lives are more invested in the company –?and its strategy. So improve tools and culture, provide flexibility, and encourage growth and innovation.?

3. Prioritize data management

Successful companies go beyond simply using data. They ask: “How can we access data from multiple sources? Can we synthesize this data? Can we store it so it can be used in a repeatable, scalable way?”

And data is democratized; anyone in the company can access it. Successful companies don’t silo data; they share it companywide and use what they learn to enhance the customer experience.

4. Bring in AI strategically

Thriving companies know AI is not about talking robots – it’s about using technology to generate predictive analytics, identify new market segments, and implement simple processes that enhance what humans do.?

I love Omar’s assertion that successful companies have done all of these things – they have the right leadership, they’re focusing on experience and data, they’ve invested in AI – but they separate themselves even further by:

1. Investing early. The top performers look to the future; many saw what was on the horizon and initiated their transformations four or more years ago. The less successful companies? They’re only in their first or second year of transformation!
2. Converging internally. Companies are practicing convergence, and converging goals, functions, content, and data companywide. Instead of operating in silos, departments are sharing processes and using similar blueprints to target the right prospects.
3. Looking outside. An emerging trend with successful companies is investing in partnerships, ecosystems, or alliances outside their four walls. For example, credit card companies are partnering with airlines or hotels to create a seamless, value-added experience with the same customer.

What if your digital transformation is missing some of these elements – or you feel like it’s just limping along? Are you doomed? Not at all! Keep reading to find out how you can catch up to these top performers.

How to close the gap

Omar’s data shows a sizable gulf between the top performers and middle-of-the-pack companies — but the gap can be bridged!

Whether you’re playing catch-up or want to ensure your digital transformation starts off on the right foot, he recommends prioritizing the following:

1. Clearly articulate your why. Write down what’s driving your transformation. If your only goal is to keep up (or worse, survive!), you’ll fare much better if you transform in service of a clear goal. For example, we want to grow by X percent in X years by innovating this new product or capturing X share of the market.
2. Assess your capabilities. Ask yourself questions to identify opportunities to improve: Are you using data as well as you could? Is your digital marketing operating at the right speed? Is innovation a formalized practice? Are you investing in employee experience? Are your capabilities aligned with your why??
3. Start to integrate. If your organization has traditionally been siloed, it’s imperative to begin coordinating companywide. You might start with a quarterly meeting between the CEO and the marketing and sales teams where you discuss business targets. You could share data and content between departments and partner with someone in another department to encourage coordination. A more complex (but powerful!) solution is to divide your team by customer type or the part of the customer journey they support – rather than function, like sales or marketing.?

Today, companies have the power to transform themselves – Omar’s data clearly shows that some companies have not only tackled this task but are excelling at their digital transformations. And those that are successfully navigating the transformation will have a huge advantage when it comes to accelerating growth and innovating internally.?

Now that you know what you need to tackle digital transformation, join me next week on Tuesday, November 16 at 9 am PT / 12 pm ET for a conversation on convergence. I’ll expand on some of the ideas Omar shared – and explain how it can impact the success of your digital transformation. See you then!

Your Turn

During the livestream, Omar and I talked about several drivers of a successful digital transformation. I would love for you to share what you think the number one reason driving the success of YOUR digital transformation is!?

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