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A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Digital Experts Showcase Key Tactics To Help Organizations
Remain Relevant In Today’s Digital World
FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
How Digital Experts In Retail, CPG
And B2B Drive Results
Digital technologies are essential for transforming customer
experiences and streamlining existing operations. But while most
organizations have some form of digital strategy, many struggle to
transform their digital ambition into genuine competitive advantage.
This study sets out to explore key learnings and best practices from
Digital Experts. We found that the keys to their success are that they:
› Focus on benefits to their customers rather than on company
process improvements.
› Consolidate digital knowledge from across the organization into
a center of excellence (COE).
› Define clear KPIs to measure success and drive ongoing
investment.
This study of 150 IT and business decision-makers, commissioned
by Salmon and Rackspace in December 2015, outlines the state of
digital strategy and execution in retail, consumer packaged goods
(CPG), and business-to-business (B2B) companies and examines
the key success strategies that separate the Digital Experts from the
Digital Laggards.
Number of employees:
› 75% Between 1,000 and
4,999 employees
› 19% Between 5,000 and
19,999 employees
› 6% More than 20,000
employees
Headquartered in:
› 35% UK
› 23% Benelux
› 22% US
› 20% Germany
FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
One in five organizations has
established centers of
excellence that bring together
resources and skills from across
the business to address
customer needs.
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Business Leaders Acknowledge The
Importance Of A Digital Strategy
Digital is not a new phenomenon. Digital technologies like mobile,
cloud, big data, and the Internet of Things (IoT) have a direct impact
on how organizations engage with customers and their workforce.
So its comes as no surprise that 81% of surveyed organizations
highlighted that they have clearly defined and articulated a digital
strategy. Almost three-quarters of respondents believe that their
business has the right structure, skills, and processes to deliver and
manage digital projects.
In addition, 61% of respondents stated that their CEO champions
their digital strategy. So organizations understand and prioritize
digital, but does that mean they are succeeding with their digital
transformation?
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FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
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A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Digital Projects Are Both Externally
Focused And Process-Driven
The survey revealed that the main objectives for investment in digital
projects fell into two categories:
› External/customer focus. The highest-ranked objectives focused
on improving how organizations can leverage digital to better
deliver external services. Nearly 40% of organizations highlighted
the main digital objectives as being able to gain new customers,
get better customer insights, and drive market share and
international growth.
› Internal/process focus. Over a quarter of respondents
demonstrated a preference for more internal focus for digital
initiatives, telling us they leverage digital to improve workforce
productivity, reduce costs, and improve operational effectiveness.
In general, organizations are meeting or exceeding their objectives,
with 41% of firms exceeding their objectives in improving processes
and operational effectiveness.
So, digital expectations are being met and digital has the C-level
focus it deserves, but which approach is right and how far along are
organizations on their digital journey?
FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
Digital experiences designed to
only enhance existing services
do not fundamentally change
how the company delivers value
to the customer.
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Only 11% Of Firms Execute Digital Well
To assess an organization’s maturity, Forrester asked respondents
to assess their digital strategy, organization, and technology,
examining dimensions such as executive support, vision, resourcing,
and operational effectiveness. Based on the results, we segmented
respondents into four categories: 1) Digital Experts (11%); 2) Digital
Operators (6%); 3) Digital Strategists (26%); and 4) Digital
Laggards (57%).
Despite digital being a top priority, only a few organizations surveyed
are executing digital successfully by demonstrating competence
across all dimensions to maximize business value from investments
in digital solutions. Digital Experts have the right vision, and they also
have the processes, tools, and resources in place to execute their
digital strategy and the KPIs to measure success.
Organizations began their digital evolution by launching departmental
efforts in marketing, eBusiness, or technology management and
bolting them onto the existing business processes. Only Digital
Experts provided results that demonstrated a commitment to embed
digital into their entire organization to deliver customer value. The
vast majority of companies (89%) are still playing catch-up.
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FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
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Conflicting KPIs between
departments was a greater
concern among CPG and
distribution organizations.
Forty-five percent of CPG and
B2B organizations stated this
as a key challenge when
executing their digital strategy.
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Funding And Measurement Are The
Key Challenges
The delivery of great digital experiences is an organization-wide
task that demands unprecedented collaboration between teams and
departments. But while the C-suite may back digital strategy, only
half of the organizations surveyed agreed that their current
organization model encourages cross-functional collaboration.
In addition, technology and business leaders overwhelmingly rated a
lack of funds allocated to their digital strategy as their No. 1
challenge. Other top challenges included conflicting KPIs between
departments, resulting in a lack of alignment on digital objectives
(38%); pushback from compliance and legal teams (35%); and
poorly integrated legacy systems that make it difficult to share
information across different platforms (33%).
FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Digital Experts Deliver Unified
Customer Experiences
To explore how organizations are overcoming these challenges, we
identified the key practices among the Digital Experts versus those
lagging behind. Assessing the organizations’ top digital objectives by
digital maturity revealed that the Expert group focuses more on
external- or customer-facing initiatives (69%), whereas lagging
organizations focus digital efforts on employee-facing and internal
digital projects (31%).
The study revealed that many organizations saw a range of
unexpected outcomes from their digital projects. As a consequence
of their customer focus, the top unexpected positive outcomes for
Digital Experts were the ability to create a unified digital experience
for customers across all channels, as well as enabling their
organizations to be more competitive.
Despite being more internally focused on their digital initiatives,
Digital Laggards also saw unexpected benefits for customer-facing
objectives. While improved customer satisfaction and customer
insight was a top expected benefit for Digital Experts, more than half
(56%) of Digital Laggards saw it as an unexpected outcome.
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FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
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A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Digital Experts Tackle Challenges Head-
On, While Laggards Play Catch Up
Analyzing the Digital Experts’ responses to the survey uncovered
some unique tactics that firms embarking on the same journey can
learn from. Digital Expert firms demonstrated a need for a:
› Well-defined funding model. The key challenge for many
organizations is the lack of funds. A key tactic for over half of the
Digital Experts is to define an appropriate funding and financial
model to support their digital strategy. Engaging with financial
teams to define investment profiles and success criteria, allocating
the right budget, tracking expenses, and optimizing resources help
Digital Experts ensure funding is available for future projects.
› Focus on data analytics and measurement. The other key
tactic that Digital Experts showcased was a focus on enhancing
data analytics capabilities for better decision and business
planning. With data analytics, Digital Experts are able to both
demonstrate the value of their digital initiatives and better
understand and anticipate their customers’ needs.
Despite their internal focus of digital objectives, 41% of Digital
Laggards understand that to catch up, they must reorganize to focus
on their customers rather than on their products.
FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
3
All Digital Expert organizations
agreed that their CEO personally
champions and clearly articulates
their company’s digital strategy.
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Deep Cross-Function Collaboration
Underpins Success For Experts
Exploring the role of different teams in setting and executing the
digital projects reveals that Expert organizations foster deep cross-
business collaboration. For Digital Laggards, IT is the primary role
involved in setting the digital strategy. Experts equally involve IT,
finance, and C-level management. Experts are also more likely to
involve human resources in setting digital strategy than Laggards.
Experts show similar collaboration in executing digital, with IT taking
charge, but operate with more involvement from other functions like
marketing, sales, and procurement when compared with Laggards.
Almost a third of the Digital Experts that we identified had
established a digital center of excellence (COE), compared with only
16% of Digital Laggards. These teams help Digital Experts by
consolidating digital resources and skills to break down
organizational silos and focus on delivering customers’ unique
needs. Over 40% of Digital Laggards are structured by traditional
functional alignment (for example, by offline and online teams).
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FORRESTER.COM
OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS
A Custom Technology Adoption Profile Commissioned By Salmon and Rackspace | February 2016
Prepare Your Business For The Digital Future
Become A Digital Expert
To close the gap and become Digital Experts, organizations need to:
› Focus on their customers rather than on process improvements. The study revealed that Digital
Experts were more customer focused than internally process focused. A clear definition of your digital
customer experience must be your North Star. Customer journey maps help challenge functional
perspectives and are a vital tool to define a vision for a unified digital experience for your customers.
› Consolidate digital know-how to kick-start action. Bring together cross-functional digital talent to
hot-house it, spur action, and break away from legacy ways of operating. A digital center of excellence
(COE) combining business knowledge, customer experience, and technology expertise, supported by
HR, supply chain, and other operational functions, is a great start.
› Define clear KPIs that link investment to business outcomes. Customer-centric metrics like
customer lifetime value are vital measures of digital success. This means instrumenting digital
experiences to gather analytical and behavioral data about your customers. Identifying KPIs upfront,
aligning teams around those KPIs, and rewarding personal and team success based on those
measures is critical. Work with finance teams to define a funding model for digital initiatives and to link
the results of digital investment to the customer outcomes they drive.
ABOUT FORRESTER CONSULTING
Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their
organizations. Ranging in scope from a short strategy session to custom projects, Forrester’s Consulting services connect you
directly with research analysts who apply expert insight to your specific business challenges. For more information, visit
forrester.com/consulting.
© 2016, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on
best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®,
Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other
trademarks are the property of their respective companies. For additional information, go to forrester.com. [1-W6JGHE]
METHODOLOGY
This Technology Adoption
Profile was commissioned by
Salmon and Rackspace.
Forrester conducted an online
survey of 150 retail, CPG, and
B2B IT and business decision-
makers in Benelux, Germany,
the UK, and the US. The
custom survey was conducted
in December 2015.