Understanding Behavior of New connected Customer Biggest Digital Transformation Challenge


Digital transformation is a complex journey and there is no one way that is right or wrong. Each organization undergoes an experience that is uniquely its own. However, there are certain challenges to operating in a digital economy that are common across businesses, and it will be worthwhile for those leading their organizations’ digital strategy to get a good grasp on them. After all, knowing and acknowledging what likely challenges lay ahead is the first step in overcoming them.

 

Research and advisory firm, Altimeter, recently conducted a survey among over 500 digital strategists and executives around the different types of challenges surrounding their digital transformation initiatives. Contrary to popular belief, it is not the lack of budget or resources that is the top most challenge faced by those leading digital transformation.

 

Rather, the biggest reason holding companies back from taking steps towards digital relevance is something much more fundamental, such as understanding behavior or impact of new connected customers. Almost 71% of the survey respondents cited being challenged by this. This is a sizeable increase since 2014, when 53% of respondents acknowledging this as a challenge.

 

“By not prioritizing customer journey work, companies face challenges in understanding new consumer behaviors and missing related datasets for decision making. Companies that don’t grasp or internalize the customer journey are obstructed from seeing its potential for optimization and innovation,” states the report.

 

The second biggest challenge is around lack of data or ROI to justify value of digital transformations. Here, it would be interesting to note that while getting budget for investment into digital transformation initiatives is not that big a headache for the digital practitioners, justifying the returns on those investments is, as per the report.

 

This indicates that the boards realize the significance of digital and don’t mind spending on it. They, probably, don’t need as much convincing for investing into digital as they would have 2-3 years back. However, the pressure to justify the value of these initiatives is stronger than ever, considering the fact that back in 2014 only 34% cited the lack of data or ROI as a challenge as opposed to 69% now.


As per the report, among the other challenges facing digital transformation are:

 

-       Risk management, compliance, and/or legal complications (67%)

-       Resources (64%)

-       Changing company culture to be agile (63%)

-       Lack of digital transformation budget allocation (62%)


(Image Courtesy: Pixabay.com)

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