THE STATE OFDIGITAL TRANSFORMATION

2018-2019 edition

BY BRIAN SOLIS, PRINCIPAL ANALYSTEXECUTIVE
SUMMARY
Now in its fifth year, our annual “State of Digital Transformation” research continues todocument the constantly evolving enterprise. As disruptive technologies and their impact onorganizations and markets continue to progress, our research aims to capture the shifts andtrends that are shaping modern digital transformation.
In 2018, strategic digital transformation is only becoming more pervasive moving beyond
IT to impact competitiveness throughout the organization. Budgets are soaring. The list of
disruptive technologies on the radar of stakeholders is expanding. Ownership is moving to
the C-Suite and managed by cross-functional, collaborative groups. Customer experience(CX) continues to lead digital transformation investments, but as we observed in 2017,
employee experience and organizational culture are also rising in importance to empower
and accelerate change, growth, and innovation.
This year, it’s clear that digital transformation is maturing into an enterprise-wide movement.
Digital transformation is modernizing how companies work and compete and helping themeffectively adapt and grow in an evolving digital economy. What’s also evident is that there is
still much work to do as companies are, by and large, prioritizing technology over grasping
the disruptive trends that are influencing markets and, more specifically, customer andemployee behaviors and expectations.

2

REPORT
HIGHLIGHTS•

A successful digital transformation is an enterprise-wide effort that is best served by aleader with broad organizational purview. For the second year in a row, CIOs are reported
as most often owning or sponsoring digital transformation initiatives (28%), with CEOs
increasingly playing a leadership role (23%).

•

Market pressures are the leading drivers of digital transformation as most efforts are
spurred by growth opportunities (51%) and increased competitive pressure (41%). Withhigh-profile data breach scandals making daily headlines, new regulatory standards like
GDPR are also providing impetus for organizations to transform (38%).

•

While there is a growing acknowledgment of the importance of human factors indigital transformation – like employee experience and organizational culture – mosttransformation efforts continue to focus on modernizing customer touchpoints (54%)
and enabling infrastructure (45%). But many organizations are not doing their due
diligence when it comes to understanding their customers, with 41% of companies
making investments in digital transformation without the guidance of thoroughcustomer research.

•

Organizational buy-in remains a top challenge for those leading digital transformation.
The companies we studied report digital transformation is still often perceived as a costcenter (28%), and data to prove ROI is hard to come by (29%). Cultural issues also posenotable difficulty, with entrenched viewpoints, resistance to change (26%), and legal andcompliance concerns (26%) stymieing progress.

•

Innovation is staking its claim within the organization. Nearly half of respondents reportthat they are building a culture of innovation, with in-house innovation teams becoming
the norm.

3

DEFINING DIGITAL TRANSFORMATION
AND THE SIX STAGES OF DIGITAL
TRANSFORMATIONAs our parent company Prophet observed in its report The Evolved Enterprise, “thepurpose of digital transformation is not to become more digital. It’s to generate growth.”1
That’s why we believe digital change and innovation goes beyond IT. Digital, in fact, isbecoming a Trojan Horse for total business transformation—from changing how theC-Suite operates to transforming each strategic business function, the back-office units,
and everything in between.
As digital transformation evolves into total business transformation, so does how we define
it. Based on extensive interviews and our annual market survey, this year we’ve updated thedefinition of digital transformation to acknowledge its holistic goals:
Digital transformation is the evolving pursuit of innovative and agile businessand operational models — fueled by evolving technologies, processes, analytics,
and talent capabilities — to create new value and experiences for customers,
employees, and stakeholders.
To help companies understand where they are — and where they need to be — on theroad to digital transformation as we define it, in 2016, Altimeter identified “The Six Stagesof Digital Transformation”.2 After years of talking to executives who were driving digital
efforts and of studying companies in their journey to transformation, we identified
a series of patterns, components, and processes that form a strong foundation forchange. We organized them into these six distinct stages:

Suh, Chan, Tony Fross, Mat Zucker, Nicholas Carrier, Michael Welch, and Kevin Grubb. “The Evolved Enterprise: Unlocking Growth |Digital Transformation.” Prophet. https://www.prophet.com/report/evolved-enterprise/.
2
Solis, Brian. “The Six Stages of Digital Transformation.” Altimeter, a Prophet Company. https://www.prophet.com/2016/04/
the-six-stages-of-digital-transformation/.
1

4

THE SIX STAGES OF DIGITAL
TRANSFORMATION

BUSINESS AS USUALPRESENT AND ACTIVE

FORMALIZEDSTRATEGICCONVERGED

Organizations operatewith a familiar legacy
perspective ofcustomers, processes,
metrics, businessmodels, and technology,
believing that it remains
the solution to digital
relevance.

Pockets ofexperimentation
are driving digital
literacy and creativity,
throughout theorganization whileaiming to improveand amplify specifictouchpoints andprocesses.

Experimentation
becomes intentional
while executing at
more promising andcapable levels. Initiatives
become bolder and, asa result, change agents
seek executive support
for new resources andtechnology.

Individual groups
recognize the strength
in collaboration
as their research,work, and sharedinsights contributeto new strategic
roadmaps that plan
digital transformation
ownership, efforts, andinvestments.

A dedicated digitaltransformation teamforms to guide strategy
and operations based on
business and customercentric goals. The new
infrastructure of theorganization takes shapeas roles, expertise,models, processes,
and systems to support
transformation are
solidified.

INNOVATIVE AND
ADAPTIVE
Digital transformation
becomes a way ofbusiness as executives
and strategists
recognize thatchange is constant.
A new ecosystemis established to
identify and act upon
technology and market
trends in pilot and,eventually, at scale.

Collectively, these six stages serve as a digital maturity blueprint to guide purposeful andadvantageous digital transformation. Our research of digital transformation is centered on
the digital customer experience (DCX) and, therefore, reflects only one of many paths towardchange. We found that, in addition to technology changes and other market pressures, DCX
is one of the most important catalysts driving the evolution of business.

5

In fact, digital transformation is extending wellbeyond its roots to reshape businesses holistically.
Eighty-five percent of companies we surveyedreported that their digital transformation efforts
have expanded beyond IT into organization-wide
initiatives. This is promising as it means a significant
number of companies are moving deeper into thesix stages of digital transformation.

62%

34%

30%
27%

24%

20%

17% 16% 16%

15% 15% 14%

9%

Ot
he
r

Le
ga
l

CR
M

HR

R&
D

1%
CSu
ite
Su
pp
ly
Ch
ain

Although digital transformation efforts have traditionallybeen focused on IT, every facet of the organization isin dire need of transformation to compete in an everevolving digital economy. While IT continues to be
an important part of digital transformation (62% ofcompanies report focusing their efforts in this area),
our research indicates that technology, operations, andperformance modernization efforts are beginning anecessary proliferation across the organization.

Q: In which areas is digital transformation focused? Choose three.

Cu
sto
me
rS
erv
IT
ice
/S
up
po
rt
Op
era
tio
ns
Inn
ov
ati
on
Ma
rke
Sa
tin
les
g/
Ad
ve
rtis
ing
Fin
an
ce

DIGITAL
TRANSFORMATION
IS EXTENDING
WELL BEYONDITS ROOTSTO RESHAPE
BUSINESSESHOLISTICALLY

FIG 1: AREAS OF FOCUS FOR DIGITAL TRANSFORMATION

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

6

The companies that said their digital transformation
efforts are focused on specific business units or
disciplines (15%) are typically in the early stages ofdigital transformation. In these companies, resources areconcentrated on one unit of the organization — either
on its own or as an executive-sponsored effort — that isundergoing transformation based on a specific goal.
The breakdown of the units undergoing digitaltransformation in these companies is historically typical.
The digital transformation journey usually begins witha technology-first mindset: Fifty-one percent of thesecompanies are aiming their digital transformation
investments at modernizing IT infrastructure andtechnologies (e.g. cloud, collaboration, communication,
security, mobile). In these cases, CIOs lead an initiative
to improve aging technology infrastructure. Forty-two
percent of them are upgrading marketing, advertisingand digital capabilities. CMOs of these digitallytransforming units are updating customer-facing top offunnel touchpoints and connecting digitally to bottom offunnel sales forces and channel partners. Other business
units undergoing digital transformation involved thoseaiming to modernize other key touchpoints in thecustomer journey focusing specifically on customer
service and CX (40% and 39% respectively).
Digital transformation is about modernizing the sumof the organization’s critical parts by investing inmodernizing the parts (the business units and functions)themselves. It’s a shift from an ownership tug-of-war
between marketing and IT to a distributed balanceand collaboration across the organization. What’s clear
today versus years past is that digital transformation
is maturing into a movement of total businessmodernization.

FIG 2: BUSINESS UNIT-LEVELDIGITAL TRANSFORMATION EFFORTS

Q: If only certain business units within your organization are undergoingdigital transformation efforts, what are those units?

51%

IT

42%
40%
39%

Marketing / Advertising / Digital
Customer Service
Customer Experience (CX)

31%
31%
29%
26%
25%

MobileE-commerce / Commerce
Sales / Channel
Employee Engagement
HR
Innovation
R&D
PR / Communications
Product Groups
Legal
C-Suite
Board
Other

16%
14%
14%
11%
9%
7%
4%
2%

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=85

7

CIOS AND EXECUTIVES WHO POSSESS A BROADERORGANIZATIONAL PURVIEW ARE INCREASINGLYLEADING ENTERPRISE-WIDE DIGITAL TRANSFORMATIONFIG 3: EXECUTIVE OWNERSHIP OF DIGITAL TRANSFORMATION

19%
15%

CIO / CTO

CEO2018 total

Board*

CDO(Chief Digital
Officer)

2018 North America

Chief
Innovation
Officer

2018 Europe

CMO

2018 China

5%

5%
5%
5%
6%

8%
4%

5%
3%

7%

8%
7%

11%

11%

5%

11%
11%
12%
9%

14%
15%

17%

19%

27%
23%
23%
21%

24%

27%

28%

42%

Q: Which executive officially owns or sponsors the formal digital transformation initiative?

23%

Since successful digital transformation isan enterprise-wide, cross functional effort,
it is increasingly owned by executives who
possess a broader organizational purview. For
the second year in a row, CIOs are cited as
the most typical official owners or sponsorsof transformation initiatives (28%). As theytake on this role more and more frequently,
CIOs are becoming business partners to key
stakeholders to facilitate digital investments
and change across the organization. Up
35% this year, CEOs are notably taking amore proactive role in digital transformation
leadership as well (23%). Boards are also
becoming more prominent sponsors of digitaltransformation (14%), which represents a
new addition to the report. We didn’t include“boards” in the year prior. The notable presenceof boards represents an encouraging sign
given that they are notorious for holding backdigital transformation efforts, perceiving themas cost centers that divert resources away fromshare and stake-holder value. While still low, theincreased involvement of CEOs and boards inthe leadership of digital transformation sends
an important message to executives tracking
the best practices of their peers.

CXO(ChiefExperience
Officer)
2017 total

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: North America N=273, Europe N=172, China N=109
Source: Altimeter Digital Transformation Survey, Q2 2017; Base: N=528*”Board” is a new addition in 2018; the 2017 data shown here has been normalized to account for this addition.

8

The role of Chief Innovation Officer as executive sponsors of digitaltransformation is also on the rise, swelling by 64% since last year.
Both the Chief Innovation Officer and Chief Digital Officer own digitaltransformation at 11% of reporting companies. This indicates thatthe roles are combining over time as digital becomes the new norm
and as innovation becomes a priority in business transformation. The
historical tug-of-war between CIOs and CMOs, the two early adoptersand leaders of digital transformation, seems to be over. This year wesaw a noteworthy drop (-77%) in marketing’s executive leadership ofenterprise-wide digital transformation efforts (5%). But, this does notmean that CMOs are losing stature in digital transformation leadership.

Their attention is instead focused more specifically on the digitaltransformation of the marketing function, modernizing it for CX, forsales force collaboration, and for direct-drive revenue. In the past,marketing was a logical starting place for digital transformation
efforts, as CMOs aimed to update how companies engage customers
and modernize customer touchpoints. Now that mission is even morecritical. New devices, apps and on-demand services are driving newcustomer behaviors and expectations. At the same time, mobile, bigdata, AI, machine learning, digital influence, et al represent enablers
for innovation beyond marketing, expanding the role of CMOs to now
include customer engagement, experience, loyalty and lifetime value.

9

DIGITAL TRANSFORMATIONCOMMITTEES ARE EARNINGFORMAL EXECUTIVE SUPPORTAND ARE BECOMING LARGER
AND MORE CROSS-FUNCTIONAL
Steering committees take shapeand evolve as the company’s digitaltransformation matures. These groups
are responsible for managing the digitaltransformation effort and ensuring crossfunctional collaboration. As they mature,
so does the scope and strategic natureof the digital transformation initiatives
they oversee. The larger percentage ofcompanies that report operating with aformal steering committee – as well as
the size and makeup of these steeringcommittees – suggests that enterprisewide digital transformation is approaching
the tipping point where “digital” becomesthe new “business as usual.”

Formal vs. Informal Committees
More than half of the companies wesurveyed (51%) have steering committees
that have earned executive support andresource allocation. These committees
include cross-functional and interdepartmental members and are essential
to driving meaningful change across theenterprise. That number is up by 27%
over 2017 — an extremely promisingdevelopment that suggests digitaltransformation maturity is finallytaking root.
Of the remaining companies, 23% of them
reported establishing a formal crossfunctional digital transformation teamthat is pursuing executive sponsorship.
Only 24% of companies reported that they
have an informal cross-functional team
but are working toward formalizing it.
This is down from 59% the year before. If
this pattern holds up, it’s likely that thesecompanies will not only seek executive
sponsorship, but also earn it as digitaltransformation increasingly becomes a
top-down objective.

FIG 4A: Digital transformation
steering committees andworkgroups
Q: How would you describe yourorganization’s digital transformation
steering committee or formal workgroup?

51%

We have a formal steeringcommittee or workgroupwith executive supportand resource allocationthat includes crossfunctional and interdepartmental members

24%

We have an informal
cross-functional digitaltransformation teamand are working towards
formalizing it

23%

We have a formal
steering committee orworkgroup that includes
representatives from one
or some departments, andwe are pursuing executive
sponsorship2%

We don’t have this, or I’m
not aware if we have thisin place
Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

10

Size of Committees Is Growing
The size of digital transformation steeringcommittees at the companies we surveyed
is another indicator of how pervasivethese transformation efforts have become.
This year, the vast majority of crossfunctional committees (48%) are staffedby eight or more full-time employees,
which is up by 140% over 2017. Notably,other companies reported teams of fourto-five and six-to-seven full-time members(25% each), which is down 40% and 35%
respectively year-over-year. Team sizes aretrending higher as digital transformation
becomes a holistic business endeavor.

Makeup of Cross-functional
Committees Is Becoming More
DiverseThe cross-functional make-up of thesecommittees are by and large technical,
with 76% of companies reporting IT
played a role in theirs. This is digitaltransformation, after all, and technology
is foundational to almost every aspectof modernization. In our interviews withexecutives, we consistently heard that
IT must be involved in all initiatives –regardless of the specific focus or goal of
those initiatives.

FIG 4B: DIGITAL TRANSFORMATION STEERING COMMITTEE TEAM SIZE
Q: How many full-time employees are involved in the digital transformation steeringcommittee, workgroup or cross-functional team?

2%
2-3

25%
48%

4-5

8 or more

25%
6-7This year, we also saw some players taking
increased roles over last year. Human
Resources, for instance, is becoming more
Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

11

Another notable finding this year: a substantial
decrease in the representation of marketing
departments in these steering committees(-51%). This may be an indicator, ironically, ofmarketing’s relative digital maturity. Marketing,specifically digital marketing, served as a
primary internal transformer dating back to theearly days of DT.
Customer experience continues to serve as a
primary catalyst for digital acceleration andmaturity. As a result, elite CMOs are shifting
the role of marketing to create a businessgrowth engine focused on CX, performanceand innovation. This may reduce the current
need to participate in organization-wide efforts.
In due time, however, this valuable front-line
experience and expertise will place marketingback in a leadership position as organizations
increasingly place customers at the center of
their digital transformation initiatives.

FIG 4C: DEPARTMENTS REPRESENTED IN THE DIGITAL
TRANSFORMATION STEERING COMMITTEE
Q: What departments are represented in the digital transformation steeringcommittee, workgroup or cross-functional team?

76%

-51%

39%

37%

+115%

32%

+300%

30%

+90%

25%

23% 22%

21%

2%
Ma
rke
Cu
tin
sto
g/
me
IT
Ad
rS
ve
e
rvi
rtis
ce
ing
/D
igi
tal
C
-Su
Sa
les
ite
/C
h
E-C
an
ne
om
l
me
rce
HR
/C
om
m
Cu
erc
sto
e
Inn
me
ov
rE
ati
xp
on
eri
en
ce
(C
X)
Pro
R&
Em
du
D
ct
plo
Gr
ye
ou
eE
ps
ng
ag
em
en
PR
t
/C
B
om
oa
mu
rd
nic
ati
on
s
Le
ga
l
Mo
bil
e
Ot
he
r

involved in affecting enterprise-wide digitaltransformation, showing a huge spike (300%over last year) in their participation in crossfunctional committees. This spike is most likely
due to the rising importance of employee
experience (EX) — surfacing alongside CX — asa key area of focus for digital transformation.
Also linked to CX, initiatives focusing onsales/channels are staking a claim in digitaltransformation, being represented in 32% ofcross-functional committees (a jump of 115%
over last year).

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=542

12

EXPLORING GROWTH OPPORTUNITIES LEADS THE
LIST OF DRIVERS FOR DIGITAL TRANSFORMATION

Also on the rise in 2018 — and surging 102% from lastyear — is the importance of regulatory and compliancestandards as a driver of digital transformation (38%). Thisdriver is clearly motivated by new regulations such as
the European Union’s General Data Protection Regulation(GDPR) and the increasing frequency and publicity of data
breach scandals.

Q: What are the key drivers of digital transformation withinyour organization?

51%

-29%

46%

-24%

41%

+102%

38%
26% 26%

19%

12%
1%
Ot
he
r

The third leading driver is increased competitive pressure(41%). Down 24% from last year, it shows that, as digitaltransformation becomes more and more common, theplaying field becomes increasingly level. Consumers havecome to expect modern digital engagement as tablestakes, so CX and EX will become ever more important ascompetitive differentiators.

FIG 5: KEY DRIVERS OF DIGITAL TRANSFORMATION

Gr
ow
th
Ev
o
olv
in ppone rtuingw
cu
ma nitie
sto
rke s
me
ts
rb
eh
av
pre iorfer s an
Inc
en d
rea
ce
s
se
dc
om
p
pre etitireg
ssu veularetor New
Ev
ya
sta
olv
n
d c nding
om ardem
pli s in
plo
an
ye
ce
eb
eh
a
pre vior
fer s an
en d
Pro
ce
ac
s
t
to ivefigh invLa
un ck
t d estde of
isr meup nt
rst exp
antioer
din tisng o e, lDeitfedig racli
neita cy al tr nd
in
bu
en
sin
ds
es
sp
erf
orm
an
ce

Over the years, the top drivers for advanced digitaltransformation efforts have consistently revolved
around two things: modernizing technologies across theenterprise and investing in modern customer experiences.
But as digital transformation takes on the enterprise
holistically, understanding evolving customer behaviors
and preferences has slid to the second spot in the list ofdrivers for 2018 (a 29% change from last year). With morethan half of the companies (51%) reporting it as the leading
driver for their digital transformation efforts, exploring
growth opportunities in new markets jumps to the number
one spot.

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

13

LONG- AND SHORT-TERM PRIORITIES FOR DIGITAL
TRANSFORMATION EFFORTS
Digital transformation is a long game. At
the same time, it has to start somewhere.
Over the years, the biggest digitaltransformation priority for companies
has continued to be the customer
experience. That work is aimed at fixing
and modernizing the customer journey.
Once this happens, digital transformation
tackles more sweeping efforts thatinvolve multiple groups. This is why theorganizations who are further along
the six stages of digital transformation
develop customer-centered roadmaps
and then divide and conquer against
those initiatives across the enterprise.
They do so with an eye on the short-term— initiatives starting now or within thenext three years — and also factor in thelong-term (initiatives now or within thenext five-to-10 years) with an emphasison technologies, business models, andoperations.

FIG 6: LONG-TERM VERSUS SHORT-TERM PRIORITIES

Q: Which initiatives are most important to your long-term digital transformation efforts (nextfive to ten years)? Which are on your short-term roadmap (the next three years)?
Integrating all social, mobile, web, commerce, service
efforts and investments to deliver an integrated, frictionless,and omnichannel customer experience
Modernize IT infrastructure and technologies with increased
agility, flexibility, manageability and security
Investing in a more intuitive and integrated ecommerce andmobile commerce platforms and processes
Overhauling customer service to meet expectations ofconnected consumers
Accelerating innovation through formal programs, internaland external
Further research into our customer’s digital touchpoints andcustomer journey
Creating a formal infrastructure and process around data/
insights/analytics
Improve operational agility and modernizing policies andprocesses to more rapidly adapt to change
Corporate reorganization of people and departments toincrease collaboration and efficiencies in digital
Creating a digital culture that’s more literate,
adaptive and innovative
Modernizing the employee experience (EX)Formalizing innovation efforts, or creating an innovationteam to test new digital concepts
Using strategic investments and/or M&A to expand our
digital capabilities
Training and/or hiring employees with new skill sets

37%
36%
36%
31%
34%
34%
34%
35%
31%
32%
27%
28%
22%
25%
20%
27%
17%
23%
14%
24%
13%
18%
13%
19%

57%
54%
49%
45%

Long term
Short term

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

14

Modernizing Touchpoints and Improving CX
In 2018, like in 2017, most digital transformation efforts continue to focus on understanding
customers, modernizing touchpoints and journeys, and enabling a more customer-centric
and real-time infrastructure. In the short-term, 54% of companies reported that they are
fast-tracking efforts to integrate all social, mobile, web, commerce, and service efforts andinvestments to deliver an integrated, frictionless, omnichannel CX. Fifty-seven percentof companies reported that this is also their long-term priority. This percentage is up 21%
from 2017, which is expected given that technology isn’t going to stop evolving — andneither are customer behaviors and expectations. Customer touchpoints must be updated
continuously as fractured, dated, or unintuitive ones impair the customer experience andintroduce fissures into customer relationships and loyalty over time.
CX-focused efforts represent a significant cluster of short and long-term digitaltransformation priorities as well. These represent immediate areas of opportunity, butalso show that companies are focusing on keeping customer touchpoints up-to-date andrelevant in the long term. They recognize that, as their customers become more and more
comfortable with mobile and emerging technologies, they need to understand theseconnected customers’ shifting expectations and preferences better through real-timedata and analytics. Additionally, they need to employ new programs and services thatconsistently meet the needs of their connected customers.

Organizations specificallyaiming to deliver a moreintuitive and integrated
ecommerce and mobile journeyby modernizing commerce
platforms and processes.

36% 37%
short termlong term

Organizations updating
customer service/support
to meet expectations ofconnected consumers.

31% 36%

short termlong term

Organizations conducting
further research into
customers’ digital touchpoints
and the customer journey.

35% 34%
short termlong term

Organizations creating aformal infrastructure andprocess around data/insights/
analytics.

32% 31%
short termlong term

15

Focusing on Technological andOperational Upgrades to build afoundation of innovation and agility
For lasting, impactful change, companies
have to focus beyond CX to transform core
operational foundations so they can compete
and innovate more efficiently. For example,
in addition to focusing on CX, companies wesurveyed are prioritizing — both in the shortterm (45%) and the long term (49%) — thedevelopment of an agile IT infrastructure
and technologies with increased flexibility,
manageability and security.
We also learned that 34% of companies areaccelerating and sustaining formal innovation
programs now and in the future. But only
24% of companies surveyed reported thatformalizing innovation efforts or creating an
innovation team to test new digital concepts
was a short-term priority of theirs — and only
14% of them reported that this was a longterm focus for them. Our research showsthat companies that are most advanced intheir digital transformation efforts are both
adaptive and innovative. That only one-thirdof companies prioritize creating a formal
innovation program — and even fewer believe
it’s important to the long-term success of
their transformation efforts — is worrisome.
Innovation deserves greater attention. To
develop a sense of urgency around this need,digital transformation groups and executives
must demonstrate its value and ROI acrossthe organization.

Shining a Light on the Human Factors
Associated with Digital Transformation
This year, we also observed companies placing an increased importance on
digital transformation initiatives around workplace dynamics, collaboration,communication, decision-making, employee experience, and organizational
culture. Twenty-eight percent of organizations are funding transformation
initiatives to improve operational agility and to modernize policies and processes
so they can more rapidly adapt to change. Twenty-seven percent reported this isa long-term focus of theirs as well.
More telling, 25% (short-term) and 22% (long-term) of companies are using digitaltransformation to reorganize people and departments in order to optimize crossfunctional collaboration and create efficiencies. As companies grow in digitaltransformation maturity, we expect these numbers to increase as they reorganize
themselves to be more competitive and agile in the face of evolving markets.
As customer behaviors, expectations, and preferences change over time, so do the
behavior, standards, and aspiration of employees. For companies to truly innovate,
their cultures, leadership, and engagement programs must empower employees togrow. As companies continue to acknowledge the importance of culture and employee
experience, two human-centered operational efforts have skyrocketed this year:
Companies creating a digital
culture that’s more literate,
adaptive and innovative:

Organizations specifically exploring
ways to modernize the Employee
Experience and engagement:

27% 20%

short termlong term

23% 54%
short termlong term(+47%)(+104%)(+15%)(+54%)

These numbers, while promising, are still low considering the slow road ahead fortransformation and innovation. They are only expected to grow as efforts in company
culture, employee experience, and innovation demonstrate success and ROI.

16

Improving Employee Engagement (EX)In 2017, we expanded our digital transformation
research to include EX. Whether it’s customers
or employees, digital transformation is about
technology and people, and how systems,
processes, policies, and work itself must modernize
and adapt to markets that are in constant flux.
When it comes to employees, engaging, training,
and retraining them is paramount to remaincompetitive.

FIG 7: PRIORITIES FOR TRANSFORMINGTHE EMPLOYEE EXPERIENCE

Q: What are your top three priorities in digitally transforming
the employee experience?

57%

In our survey, we asked executives to share theirthree top priorities in digitally transforming their EX.
For the second year in a row, most organizations(57%) are prioritizing new training programs to
update legacy or aging skill sets. Organizations arealso investing in the recruitment of employees who
possess desired digital talent (53%).

+65%

48%

45%

28%
21%

tra

ini

ng
p
leg rogr
ac am
yo st
ra om
gin odg s erkil nize
Em
ls
ets
plo
y
e
de e
sir rec
ed ru
dig itm
ita entem
l ta ofpolen
we Cret
rm at
en ingta
nd a cu
inn lturov e o
Inv
ati f
es
on
tin
gi
nn
an ew
d j exRe
ob peve
br rsecre rtisidg -mati e
e t enon
he to
ga ring
yo p be proLaun tw gr
wi ying
ge ee amthre no sles off o
mp ld tosd rrloy er /es eloee
ira cas
dr ble tin
We
ive
g
s
e
k
are
to illm
lea set plo
norn s a yeeta
ne nd s
dd
w
res
sk no
sin
ills
gt
his
rig
ht
no
w

1%

Ne
w

Most notably, 48% of companies reported thatcreating a culture of empowerment and innovation
was a priority in digitally transforming EX — asurge of 65% over last year. The importance oforganizational culture in accomplishing change
is a consistent theme in every research effort I’ve
led over the past several years, and here it’s nodifferent. The spike in the number of companies
focusing on creating a culture of empowerment
and innovation points to the critical need to inspire
workforces around innovation in every digitaltransformation effort. And it reminds us of theimportance of developing a vision, mission, beliefs
and values that employees and customers can
support and rally behind.

53%

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

17

TOP CHALLENGES DIGITAL TRANSFORMERSFACE IN 2018
FIG 8: THE CHALLENGES OF DIGITAL TRANSFORMATION

Q: Each of the following describes different types of challenges surrounding digitaltransformation initiatives. Please indicate the most difficult challenges you or your company
come up against in digital transformation efforts. You may choose up to three.

+159%

29% 28%Each year, we ask executives to sharethe most difficult challenges they face intheir digital transformation efforts. Digitaltransformers and change agents who aim
to accelerate and expand transformation
initiatives are wise to study this list — it will
help them anticipate and address thempro-actively.

26% 26%21%21% 20% 20%
19%

16% 16%

13%
8%

t
y
.g.
y
ion r
tif l
en s
ls
ts
e
t
re
re
se
se
es
s
(
on
)
a
m
r
nc
or
tu
ju ita rm nte
de
rc
e ea
er
rti
e ern
ltu
isi
e
ff
c
v
o
u
e
g
v
u
g
o
g
g
e
f
a
u
a
c
r
m
c
so
I t di
an e,
xp
tr
ur
sfo cean con
ng
isk
re
ny
ss
lea
as
re
of
RO e of ran ost o ch tag
r
R
a
e
c
m
ff
f
ivi
o
r
p
n
e
f
r
t
a
e
i
n
k
t
c
o
y
o
i
s
t
u
o
d
l
s
s
c
m
s
c
n
y
u
k
ta val gita as a nce sab l, ri lian
ip
ra
se
of
Co
ac
i d
a p
yb
log
da
a os,
te
k
o
L
i
t
rsh
c
d
g
o
l
f
c
s
N
e
a
; we
l
e
i
n
m
o
a
t
g
s
L co
d
g
L
ta
e
ch
ck
Le
Re cs, erleaigi
dg vie
te
o
La
d
o
i
/
d
t
i
Bu is
d
N
li
w
an
Rig
Lo
po
Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

18

Lacking Clear ROI Data, Digital Transformation Is Perceived as a Cost Center,
Not an Investment
The top challenge reported by executives is the lack of data or ROI to justify the valueof digital transformation (29%). The percentage of executives that cited this as their top
challenge went up 159% from last year. At 28%, the second top challenge cited is budget
and the perception of digital transformation as a cost center, not as an investment in
performance and growth.
These two challenges are intertwined. When it comes to digital transformation andinnovation, it seems many executives, boards, shareholders, and stakeholder are often“out of touch” with the factors driving market evolutions and disruptions. While theyoften perceive digital transformation as a resource that takes away from shareholder
value and quarterly performance, the reality is that it is an investment in near and longerterm competitiveness and value creation. Without clear data that shows how digitaltransformation positively affects the bottom line, digital transformers or change agentsstruggle to get the resources they need to succeed.

Resistance to Change and Organizational Culture Continue
to Pose Significant Barriers to Transformation
The third most difficult challenge experienced by companies we surveyed was resistanceto change and human dynamics like workplace politics, egos, sabotage and fear (26%),
rising from sixth place in 2017. This move up the list of challenges indicates that, as digitaltransformation evolves beyond IT and marketing, there’s a stronger need for leadership andhuman resources to unite and engage the workforce around these issues.
In 2017, the third top reported challenge in digital transformation was company culture.
Prior to that, it was consistently ranked as the number one challenge in our annual digitaltransformation research, and also in our corporate innovation series with Capgemini.3 But
this year it is tied for fifth place. Oftentimes, corporate cultures are rigid and employee
experiences, like a significant percentage of customer experiences, are often dated —after all, they were developed for a different type of work performed under vastly different
circumstances. Culture and EX must undergo a significant evolution to accelerate change
from the inside out.

Solis, Brian, Jerome Buvat, Subrahmanyam KVJ, and Rishi Raj Singh. “The Innovation Game: Why & How Businesses Are Investingin Innovation Centers.” LinkedIn SlideShare. https://www.slideshare.net/capgemini/the-innovation-game-why-how.
319Companies Prioritize Updating Customer Touchpoints,
But a Large Percentage of Companies Still Haven’t Studied
the Modern Customer Journey
The majority of businesses report that modernizing CX touchpoints is a priority ofdigital transformation efforts (54%), and a majority of companies are finally doing so
by researching customer journeys (59%). This presents a significant opportunity forcompanies that seek to advance their digital transformation efforts through real world(physical, digital and mobile) customer experiences.
This is encouraging as it demonstrates a rising level of maturity (the “elite”) among
companies that are progressing across the six stages of digital transformation. For
example, 35% have completely mapped out the customer journey within the last year
and have used that data to define and prioritize their digital transformation roadmap.
An additional 24% are also actively studying the mobile customer journey and real-time“micro-moments.”
Concurrently, the customer journey maturity spectrum also includes companies that areoperating without the benefit of customer insights. We found that a notable percentage(41%) of companies are only now beginning to research customer behavior and awaiting
results (27%), or are not studying customer behavior at all (14%).
The annual tradition of investing in digital transformation and CX without studying
customer journeys and data is coming to an end. This presents executives with a unique
opportunity. As customers become more and more digital, they cast more and moresignals. And in an era of machine learning, companies have a unique opportunity toconvert these vast but critical signals into real-time strategies that focus on improving
experience, performance, and business growth. As such, marketing can shed its traditional
scope to lead innovation in CX, and regain some of the influence they’ve lost in leading orowning digital transformation.

FIG 9: JOURNEY MAPPING AND
CUSTOMER RESEARCH
Q: Which of the following best describes
your company’s efforts around the customer
journey/experience?

24%

We are actively studying themobile customer journey and/or designing for real-time“micro moments” in addition tocustomer journey work35%

We have completely mappedout the customer journey
within the last year andhave used the data to define
and prioritize our digitaltransformation roadmap

27%

We are researching customer
behavior now and waiting forresults to inform our digitaltransformation strategy

7%

We have not officiallyresearched the digital
customer journey but we haveupdated digital touch points
with modern technologies andinvestments

7%

The need to study thecustomer journey hasn’t been
made a priority
Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

20

COMPANIES ARE MAKING BIGGER INVESTMENTS IN
DIGITAL TRANSFORMATION, IN BUILDING A CULTURE
OF INNOVATION, AND IN DISRUPTIVE TECHNOLOGIESIn an era of disruptive technologies
including AI, machine learning, robotics,
AR/VR, autonomous vehicles, blockchain,and more, digital transformation is
critical to an organization’s ability tocompete effectively. The stakes today
are higher than ever. The companies
who are further along the six stagesof digital transformation are allocating
more resources and investing not justin key technologies but in developing aculture of innovation that will sustain theirtransformation efforts in the long haul.

Budgets Are Growing
In the early stages of digital transformation,budgets are usually small and focused
within a particular initiative that operates
independently. As digital transformation
matures and expands its mandate, budgets
also swell to lead cross-functional initiatives
as well as make technology upgrades. As aresult, budgets grow exponential.

This year, digital transformation budgets
are not only growing, smaller budgets are
simultaneously subsiding. Although thelargest number of companies (18%) reported
having budgets for digital transformationin the range of $1 million and $4,999,999,
that number is down by 63% from last year.
Seventeen percent of companies shared that
their budgets range between $5 million and$14,999,999 — a number that is also down
substantially (-43%).
But budgets between $15 million and$29,999,999 skyrocketed 210% this year,with 16% of companies reporting that theirs
fell in that range. And budgets between$30 million and $49,999,999 climbed awhopping 234%, with 13% of companies
reporting budgets of that size. Finally, thepercentage of companies reporting budgetsof more than or equal to $50 million jumped
from 2% in 2017 to 15% in 2018, representing
a dramatic rise of 640%.

The old saying “not all that glitters is gold”
might apply here, though. While budgets
are growing spectacularly, they are doing sowhile companies still don’t have a thoroughunderstanding of customer and employee
behaviors. As we noted earlier in this report,
only 35% of companies have studied themodern customer journey. This leaves us
wondering how much these budgets are on
target to effect meaningful transformation
versus being destined to be spent in digitalfor the sake of digital. Even though we didn’t
capture the equivalent metric for companies
studying the employee journey, one canassume that it’s not dissimilar from what
we see in CX efforts. Just as companies
aren’t investing in deeply understanding themodern customer journey, we can assume
the same is true for the employee journey.
Companies literally cannot afford to throwmoney and resources at the digital in digitaltransformation without understanding
and appreciating the evolution, impact,
and potential of digital customers andemployees.
21FIG 10: ANNUAL BUDGET FOR DIGITAL TRANSFORMATION

Q: Please estimate your annual budget for digital transformation efforts.

3%

Less than $500K

11%
Unsure7%15%More than $50M

$500K to $1M

13%$30M to $50M

18%
$1M to $5M

16%$15M to $30M

17%

$5M to $15M

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

22

Developing a Culture of Innovation Is a
Top Investment Priority

FIG 11: INVESTMENTS IN INNOVATION

Q: What types of investments in innovation has your organization made?

While most companies agree that innovation is
instrumental to compete in a digital economy,
how innovation takes shape and gains momentum
varies greatly from organization to organization.
Before investing in innovation teams, programs, or
technologies, companies who are most advancedin their digital efforts turn culture into an internal
accelerator of innovation and transformation.

47% 46%+80%

37% 36%

When we asked executives about the types ofinvestments in innovation their organizations
were making, 47% responded that they were
investing in building a culture of innovation, as
mandated at the executive level. Almost half ofthe companies we surveyed (46%) also reported
that they have assembled an in-house innovation
team/lab with dedicated enterprise resources.
Informal innovation teams aimed at exploring
innovation opportunities are taking shape at 37%
of companies, up 426% from last year.

32%

29%

re
wi buithi ldin t nghe a cor ul
fro gani turem zat ofthe ion inn
inn
ex , m ova
ov
ec an tioati
uti da n
on
ve te
tea W
lev d
m/ e h
el
a
l
v
a
We
en b w e anhater ith inprwi ve anise ded -houthi
res ica se
n t info
ou ted
he rm
rce
o
a
inn rga l ins
ov niz nov
ati ati atiWoon o n e on
ac to e hqu inv av
pp xp tea
ire es e a
ort lor m
un ingco t in coitie
mp fu rpsan nd orasites , s eWe
tha tar VChat c tup braveou s a nc
adldnhe d/o h
to ded
lp r
ou st
us
r C artWe-Su up’ve
ma it extou
na e / ecu
ge ex
red
me ec tives
inn
nt utiv
ov
ran e
ati
ks
on
l
ea “h
No
d
o
ing t sha formtec potsveah c ” inbe l inv
en es
itie
ma tm
s
de enttha s int I inn
am ov
aw atio
are n
of

5%

We
a

Also, up 80% from last year, 36% of companies
surveyed have created corporate VC branches toinvest in funds and startups or acquire companies
that could help them further innovate. Finally,
new to the ranking this year, a notable 29% ofcompanies reported having acquired startups
and adding their founders and key employees
to executive management ranks. These moves
represent advanced strides toward the sixth
stage of digital transformation — “innovative andadaptive” — and serve as best-in-class examples
for how other companies can get there.

+426%

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

23

Companies Are Prioritizing Investments
in Potentially Disruptive Technologies
Digital transformation was initially intended tomodernize technological infrastructure, migrating
costly, dated, and complicated hardware andsoftware solutions to more agile and scalable
cloud and mobile platforms. But since the earlydays of digital transformation, the speed oftechnology innovation has only increased. Now thedigital in digital transformation has to keep up withall relevant technology trends as they represent
disruptive threats and competitive opportunities.
This is likely a key driver of 2018’s dramatic rise of
substantial digital transformation budgets.
This year, we set out to understand the top
priorities in technology that are shaping digitaltransformation strategies. As you can see in Figure
12, the emerging technologies companies plan
to focus on investing in 2019 go way beyond
cloud and mobile. The list is comprehensive andindicative of how wide the potential disruption ofthese technologies can be. The sheer number ofthem also points to the considerable resources
and agility that companies need to innovative
and adapt. After all, each of these technologies
requires a cross-collaborative team with IT
representation to evaluate the opportunities theypresent and what they require to be deployed. As
they say, the list goes on and on.

FIG 12: TOP-PRIORITY TECHNOLOGY INVESTMENTS IN 2019
Q: What are your top priorities for technology investments in 2019?

37%

Cloud

35%

Cyber Security

34%

Artificial Intelligence (AI)28%

Big data

26%

Internet of Things (IoT)

25%

Real-time analytics and reporting

23%

Mobile solutions

21%

eCommerce platforms

19%

Social media
Cross-functional collaboration platforms

17%

Machine learning

17%

Blockchain

14%

DevOps14%
11%

5G
Wearables

10%

Augmented Reality (AR) / Virtual Reality (VR)10%
9%Quantum computing
Autonomous vehicles / robotics

7%

3D printing / additive manufacturing

7%

Voice-based interfaces

7%

Conversational commerce7%

Geo-fencing, beacons, or other embedded

7%

DronesEdge

5%
4%

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

24

24

METRICS THAT ALIGN WITH BUSINESS OBJECTIVESLEAD THE WAY IN VALIDATING DIGITAL
TRANSFORMATION EFFORTS AND INVESTMENTS
In 2018, we set out to understand themetrics digital transformers are using tomeasure digital transformation progress andestablish grounds for funding and expanding
initiatives. The leading metrics were all linked
to total business objectives and outcomes.
The top three metrics reported bycompanies are aimed at tracking businessgrowth and operational performance:

42%
42%
39%

The next set of metrics in the list measurescustomer and employee engagement andoperational capabilities across the various
areas of digital transformation focus:

36%

Customer metrics(e.g. NPS, CSAT, CLV)

36%

Business Innovation (e.g. ideas
generated, proofs of concept inpipeline, new products created)

33%

Active Customer Engagement (e.g.
comments, “likes”, shares)

33%

Employee Engagement andSatisfaction

31%

Digital Literacy (e.g. educatedworkforce, capabilities assessment)

28%

Market Share, Share of Wallet

Growth (e.g. lead generation,
conversions, sales)
Operational Efficiencies (e.g.
productivity, cash flow, gross margin)
Business performance(e.g. revenue, profit)

Getting support for effective and pervasive
digital transformation programs requires anarrative that’s broader than “digital.” Whenmaking their case for digital transformation,
most fledgling digital transformers place
too great an emphasis on the many
disruptive and emerging technology
trends vying for attention. But in the end,change needs purpose and ultimately avision to move resources toward shared
and tangible goals. Metrics that align withthese are more likely to effectively make thecase for advanced digital transformation
and also persuade other stakeholders andexecutives to support it. These metrics
are a way of speaking “the language of
the C-Suite” and finding common ground.
Doing so helps stakeholders align on
roadmaps, sponsor new efforts, andincrease available resources.

25

FIG 13: DIGITAL TRANSFORMATION METRICS

Q: What metrics does your organization actually measure today related
to digital transformation?

Growth(e.g. lead generation, conversions, sales)

42%

Operational Efficiencies(e.g. productivity, cash flow)

42%

Business Performance(e.g. revenue, profit)

39%

Customer Metrics(e.g. NPS, CSAT, CLV)

36%

Business Innovation(e.g. ideas generated, proofs )36%

Active Customer Engagement(e.g. comments, “likes”)

33%

Employee Engagement and Satisfaction

33%

Digital Literacy(e.g. educatedworkforce, capabilities)

31%

Market Share, Share of Wallet

28%

Passive Customer Engagement(e.g. downloads, clicks)

27%
17%

Shareholder Return
We don’t measure digital metrics at this time2%

Source: Altimeter Digital Transformation Survey, Q3 2018; Base: N=554

26

CONCLUSION:SEVENPRIORITIES TOACCELERATE
DIGITAL
TRANSFORMATION
MATURITY AND
SUCCESS•

AUDIT THE STATE OF DIGITAL TRANSFORMATIONAT YOUR COMPANY ACROSS THE SIX STAGESIn our research, we consistently find that most companies think they’re further
along in their digital transformation journey than they really are. In order to offer
a benchmark tool that companies can use to compare their internal perceptionof where they are against those of their peers, we’ve analyzed years of digitaltransformation progress among companies and documented key milestones in theadvancement of digital transformation. Undergoing an audit — not just once, but atstrategic intervals — will allow you to track your organization’s progress and alignyour roadmap with those of best-in-class organizations.

•

STUDY THE DIGITAL CUSTOMER JOURNEY
AND ORGANIZE EFFORTS AROUND INSIGHTS AND OPPORTUNITIES
It’s frustrating that organizations are prioritizing CX initiatives without studying
digital (and more specifically, mobile) customer experiences routinely.
Understanding how customers’ intents, behaviors, and preferences are evolving
gives purpose to CX strategies. These insights also inform cross-functional digitaltransformation initiatives that directly touch and affect the customer. For CX to
be its most effective at unifying any enterprise-wide digital effort, gathering thesecustomer insights should be a priority of a cross-functional group. Communicatingthese insights to the digital transformation steering committee helps to ensure
consistency, keep the C-Suite informed, and ultimately earn top-down support.

•

STUDY THE EMPLOYEE JOURNEY TO IMPROVE EX
The old adage of “happy employees make happy customers” applies to digitaltransformation, too. In our research, we’ve also learned that employee engagementmeans more than just “happy employees”. Helping employees develop critical
digital literacy — and training, retraining, and engaging them around a digitaltransformation vision — empowers them and turns them into capable allies in yourtransformation and innovation efforts. To understand the state of your employees’
competence, motivation and overall engagement, you must study the employee
experience and journey continuously. As with CX, EX too will benefit fromconnecting insights to initiatives.

27

•

MAKE DATA THE CENTER OF YOUR DECISION-MAKING
It’s no secret that today, data is fragmented, incomplete, and siloed. Leading organizations are building centralized
data infrastructures to better inform and support cross-functional efforts. Doing so promotes collaboration andintegration, unifying digital transformation around data-supported, meaningful efforts. Advanced, agile organizations
are also investing in data science and expertise, and in AI and machine learning, to support real-time and evenpredictive data analytics. These investments create incredible competitive advantages by providing advanced CX,
EX, and operational insights that strategically inform digital transformation roadmaps and innovation efforts.

•

ALIGN DIGITAL TRANSFORMATION INVESTMENTS WITH BUSINESS OBJECTIVESThis year, the rising role of CEOs overseeing digital transformation is encouraging. At the same time, many digitaltransformation and innovation efforts are still often viewed as cost centers. The need to substantiate investments
is more important than ever. To shift the perception of digital transformation from cost to investment strategy,
you need ROI metrics. Successful digital change agents4 and steering committees make the case for theirinitiatives not by emphasizing the need of a company to simply get on a technology trend bandwagon, but bytying transformation efforts to expected business outcomes. To do that, they’re prioritizing metrics that link digitaltransformation and innovation to business objectives, ROI, and growth. This helps them make the case for funding
broader and bolder investments.

•

CONSIDER CAREFULLY HOW TECHNOLOGY TRENDS FACTOR INTO YOUR DIGITAL TRANSFORMATION ROADMAPS
The war on who owns digital transformation is coming to an end. Now, CIOs and specialized IT organizations are
forming business partnerships with key strategic groups within the enterprise to explore how technology can help
meet business goals. Digital transformers are tracking emerging technology trends and assessing where thosetechnologies can have the greatest impact and ROI. From its seat on the steering committee, IT can help connect
emerging technology trends to overall enterprise and corporate innovation objectives.

•

PRIORITIZE A CULTURE OF TRANSFORMATION AND INNOVATION
When we first researched digital transformation in 2014, we found that the companies that were furthest along thesix stages of digital transformation were those that emphasized the human-side of digital and change rather thantechnology-first approaches. We also found that culture was consistently cited among the organizations we studied
as the leading challenge to digital transformation and innovation. This year, it’s evident that progressive companies
are prioritizing investments in organizational culture to be more iterative, adaptive, and innovative. Follow theirlead and focus on creating an organizational culture of innovation, and introduce EX programs that empower youremployees, that modernize employee engagement, and cultivate a more digitally capable workforce.

4

Solis, Brian. “The Digital Change Agent’s Manifesto.” Altimeter, a Prophet Company. https://marketing.prophet.com/acton/media/33865/he-digital-change-agents-manifesto--altimeter.

28

METHODOLOGY

We surveyed 554 professionals from brands, consulting firms, and other organizations withat least 1,000 employees, across three geographies: North America (US and Canada); Europe(UK, France and Germany); and China. The respondents from these organizations included inhouse and agency digital strategists, and C-suite or other executive-level leaders. Our sample
includes a fixed quota of respondents from five industry verticals: Banking/Finance, Healthcare/
Pharmaceuticals, Manufacturing, Retail, and Technology. We asked each respondent multiple
choice answer questions about digital transformation at their respective organizations.

OPEN RESEARCHThis independent research report was 100 percent funded by Altimeter, a Prophet Company.
This report is published under the principle of Open Research and is intended to advance theindustry at no cost. This report is intended for you to read, utilize, and share with others; if you
do so, please provide attribution to Altimeter, a Prophet Company.

PERMISSIONSDISCLAIMER

The Creative Commons License is Attribution-Noncommercial ShareAlike 3.0 United States,
which can be found at https://creativecommons.org/licenses/by-nc-sa/3.0/us/.

ALTHOUGH THE INFORMATION AND DATA USED IN THIS REPORT HAVE BEEN PRODUCED AND PROCESSEDFROM 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 CONTRIBUTORSOF 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 PRODUCTENDORSEMENT PURPOSES. THE OPINIONS EXPRESSED HEREIN ARE SUBJECT TO CHANGE WITHOUT NOTICE29

ABOUT THE AUTHORBRIAN SOLIS,
PRINCIPAL ANALYST AND FUTURIST
Brian Solis is Principal Analyst and Futurist at Altimeter, the digital analyst group at Prophet. He studies
disruptive technology and its impact on business. He is also a digital anthropologist who seeks to better
understand how technology affects and shapes behaviors, norms, and society. Through his research andpublished work, he humanizes disruptive trends to help leaders understand how technology, markets, andpeople are evolving and how to drive innovation and growth.
In addition, Brian is an award-winning author and world-renowned keynote speaker who is consistently
recognized as one of the most prominent thought leaders in digital transformation, innovation, experience
design and digital humanities. Brian has authored several best-selling books including X: The Experience
When Business Meets Design, What’s the Future of Business (WTF), The End of Business as Usual and Engage!
With a loyal online audience of over 700,000 people, his work makes him a sought-after thought-leader toleading brands, celebrities such as Oprah, Shaq, and Ashton Kutcher and over 1,000 startups.

ABOUT ALTIMETER,
A PROPHET
COMPANY

Altimeter is a research and consulting firm
owned by Prophet Brand Strategy that helps
companies understand and act on technology
disruption. We give business leaders the insightand confidence to help their companies thrive inthe face of disruption. In addition to publishingresearch, Altimeter analysts speak and provide
strategy consulting on trends in leadership,digital transformation, social business, data
disruption, and content marketing strategy.

Altimeter, a Prophet Company
One Bush Street, 7th Floor
San Francisco, CA 94104
info@altimetergroup.com
www.altimetergroup.com@altimetergroup415-363-0004

HOW TOWORK WITH US

Altimeter research is applied and brought to life in our client engagements. We help organizations
understand and take advantage of digital disruption. There are several ways Altimeter can help youwith your business initiatives:
STRATEGY CONSULTING. Altimeter creates strategies and plans to help companies act on
business and technology trends, including ethical and strategic data use and communications.
Our team of analysts and consultants work with global organizations on needs assessments,
strategy roadmaps, and pragmatic recommendations to address a range of strategic challenges
and opportunities.
EDUCATION AND WORKSHOPS. Engage an Altimeter speaker to help make the business case to
executives or arm practitioners with new knowledge and skills.
ADVISORY. Retain Altimeter for ongoing research-based advisory: Conduct an ad-hoc session toaddress an immediate challenge or gain deeper access to research and strategy counsel.
To learn more about Altimeter’s offerings, contact info@altimetergroup.com.

31