Real Digital Transformation = Customer Insight + Digital Business Strategy.

Congratulations to Prophet and Altimeter Group for Joining Forces! 
Every once in a while, something happens in the world that makes you say, that is so right! This is one of them. If you haven’t heard already Prophet just acquired Altimeter. Prophet is a leading digital agency and Altimeter Group is a leading research and analyst group focused on digital transformation. I wanted to write about it because the vision, values, and characteristics of this newly combined firm are a great example of what you should look for in a digital transformation partner. 

Why is This Important? Real Digital Transformation is Complex.
The objective? Transform your company into a highly effective – agile organization that can compete successfully in a hyperconnected digital future. That kind of digital transformation delivers real business transformation. It is based on a deep understanding of what will hold value for customers in the future. And it establishes the basis for continually updated products, services, marketing, and operations, and a digital culture that is in continual learning and innovation mode. It also establishes a cross organizational strategy that focuses your company on high growth markets and high value customer outcomes. Who you gonna call?

(Click here for our free digital transformation leader’s discussion guide).

Digital Transformation is a Continual Process, Not “a” Project
Both Prophet and Altimeter go far deeper than a buzzword understanding of digital transformation and see it as far more than just a technology and marketing upgrade. They approach digital transformation as a continually evolving journey. Both start by helping clients understand and validate who their customers are and what will create value for them. Both have a deep holistic understanding of real digital business strategy and transformation. Altimeter group has been at the forefront of the industry researching and communicating the need for digital transformation. Prophet has invested deeply not just in finding people who “get it” but in providing a comprehensive digital strategy and transformation leadership development program throughout their organization.

“Digital” Customer Insight Required
Your company isn’t the only entity that needs to address digital disruption and transformation. Every business, industry, and economy on the planet is facing the same thing. The changes those transformations create are going to impact who your customers are and what they value. Some will transform and grow dramatically. Many will be digitally disrupted. If your company is using old approaches to customer segmentation you could be focusing on dying customer segments. If so your company could be dying as well. Knowing what the new growth segments are and how to create value for the decision makers and influencers within them will be critical to your product, marketing, and company strategy and success.

“Digital” Business Strategy Required
Digital technology is a game changer. Social Media, IoT, Big Data and Predictive Analytics, Robotics, Cloud and SaaS based systems, and Intelligent Devices are each making a huge impact on our businesses, our world, and our lives. The Digital Ecosystems forming around our health, homes, transportation, cities and the industry’s we and our customers are a part of are even more powerful. Digital ecosystems disrupt industry value chains, change their economic models, and bring radical new effectiveness to those that understand and harness them. To survive and thrive, the strategies businesses develop must include the capabilities and trends of technologies and digital ecosystems as a critical strategic element. In today’s market not including digital capabilities and trends in a strategic plan makes no more sense than not including emerging capabilities and trends in markets, products, distribution, and business models. They have to be there.

Who You Gonna Call?
Almost every digital agency and professional services firm promotes their ability to help clients “digitally transform”. But can they? Most can address pieces of digital transformation. If the client and the services organization both understand real digital transformation and how the capabilities of the service organization fit into the puzzle, a lot of good can be accomplished. The relationship becomes dangerous when neither client nor services organization fully understand. When the client believes an engagement will leave them digitally transformed, and it has only addressed a small piece of the equation, it sets them up for digital disruption instead of growth. So who are you gonna call?

The First Step? Self Assessment.
The first step is assessing how well your company understands digital transformation, and the digital future of the market you serve. How well are your company’s vision, products, business model, and operations aligned with future opportunities and requirements? What kind of customer insight and transformational help will you need to accelerate your understanding and transformation. Regardless of findings, you’ll need partners who offer more than digital transformation buzz words. You need partners that deeply understand the future technology is creating. You will also need partners with well rounded teams that understand the technology and how to integrate it as part of a real digital business strategy. A strategy that aligns the company on high growth market segments and high value customer outcomes and experiences. If discussions with prospective partners don’t start with who will your customers be, and what will create value for them in the digital future, find someone else.

Finding The Right Partner
There are other organizations out there promoting a comprehensive customer centric approach to digital strategy and transformation. The acquisition by Prophet of Altimeter Group caught my eye because I have great respect for the thought leadership both firms bring to digital strategy and transformation. They represent the kind of vision, values, capabilities, and track record you will need in a transformation partner. Beyond that, look for partners with a deep understanding of how digital forces are reshaping your industry and a vision for what it will look like in the digitally transformed future. Those will be critical whether the partners you engage are helping you define a next next generation business strategy, products and business models, or transforming and integrating your marketing and operational systems.

Kick Starting Digital Transformation – Free Discussion Guide
(Click here for our free digital transformation leader’s discussion guide). This discussion guide is excerpted from our “Competing for the Digital Future Leadership Program”. It includes over 60 questions that are critical to getting your program off to a great start. Questions that will also help you find and select a great transformation partner. Look for the “Download Discussion Guide” link beneath the video.

Michael Connor

Author, Speaker, Consultant | Digital Strategy and Transformation
Competing for The Digital Future, Creating Insanely Great Customers
Principal, Spice Catalyst

Your turn. Create something Insanely Great today.