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Customer Service Report: Companies Having Difficulty Understanding Digital Transformation

TMCnews Featured Article


August 22, 2014

Customer Service Report: Companies Having Difficulty Understanding Digital Transformation

By Clayton Hamshar, Contributing Writer


The Altimeter Group recently released its annual report, “The 2014 State of Digital Transformation,” detailing the results of research on companies that have a digital transformation initiative in place and what is problematic for them regarding that process.


However, the report is limited only to the customer experience aspect, saying that “by focusing our research under this lens, we can better learn how and why companies explore digital transformation in a particular business area. This makes the idea of change approachable rather than overwhelming.” This hints at the utter confusion most companies have about why it is an important investment and yet are fearful to pass it by. Altimeter Group’s results show that as much as 42 percent of the companies investing in digital customer experience initiatives have not done any research into why it is important and what the best practices are.

The report outlines three main pieces of advice, the first being recognition of the difference between older analog customer experiences and newer digital ones. Many companies are stuck in old mindsets and attempt to force outdated methodology through a digital channel or simply add digital programs on to existing frameworks, and for the most part it is not working. A fresh approach to digital initiatives is vital for a smooth transition.

The second piece of advice is for companies to do away with functional siloing altogether. Business units that struggle to communicate with each other or are confined to independence cannot perform as effectively as well-connected, heterogeneous groups. Ironically, the report’s confinement to the customer experience aspect of business is reinforcing this functional siloing.

Lastly, the report emphasizes the need to figure out ways of challenging the company culture and approaching initiatives with an open mind for change. In a qualitative survey, Altimeter Group found that this is the most difficult part of digital transformation, with 63 percent of respondents marking it as very important.

If nothing else, the message of this report is that digital transformation is essential for the survival and success of any customer-centric business in current times. Companies that prioritize not only investing in these initiatives, but also understanding why it is important and how to implement them most effectively, will be able to outperform the competition and deliver the best customer experiences possible.




Edited by Alisen Downey







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