UK Enterprises spends billions on Digital Transformation but not on customer experience
August 02, 2019 12:54
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Digiryte’s recent study suggests that too many digital transformation projects focus on technology optimisation, but not on the ultimate customer experience. Most digital transformation efforts have minimal visibility. At least 50% of the consumers underestimate the companies that invest heavily in improving customer experience. As a result, consumers fail to give credit to companies for the level of investments they make on Digital Transformation to improve their experience. Conversely, companies do not listen to or understand the needs of customers.
"The organisations which embrace agile and true customer-centric approach recognise that digital transformation is more of a cultural change rather than a technological change. The "Latecomers", however, tend to prioritize internal priorities like improving process & productivity, reducing costs and improving internal collaboration, etc. It's not because of their lackadaisical approach but lack of understanding of what digital transformation is. Most of the UK based enterprises' digital transformation initiatives are internally focused rather than consumer-centric: 68% of initiatives focus on business processes, while only 28% focus on the customer experience. 4% percent of them believe that their initiatives are focused on the experience of their employees.
There are good, logical reasons why many companies' digital efforts are on enhancing their internal processes and efficiency than consumer experience. Many activities seek to better align technology with the business. Digital transformation is an endless continuum, and companies are investing in technical debt elimination, modernising their software delivery methods, deep learning, and machine learning and streamlining their operations to be more profitable. Adapting to an agile mindset and embracing DevOps enables them to build internal and external tools that enable them to do business that delivers exceptional digital experiences to their consumers on a long term basis.
Here are some of the recommendations Digiryte’s Manchester-based Digital transformation consultants make to move forward on the road to digital:
Say yes to the integrated digital strategy: The majority of digital transformation initiatives follow a coordinated and isolated approach, in which each department leads specific projects with centralised funding. Digital leaders are more likely to have a centrally and strategically managed digital transformation initiative, a coherent enterprise-wide strategy and a commitment from leaders to change and guarantee success.
Give priority to investments in digital results and not to digital initiatives:
In all sectors and regions, consumers believe that businesses are under-investing to improve their excellence of digital experiences. It's not just about how much is spent, but how and where spending is prioritised.
Adopt innovative thinking, have a digital vision and a commitment to digital improvement.
Digital transformation leaders are turning back to the market and their potential customers to guide their next investment priorities, focusing on creating a culture and technology infrastructure to support the future, while improving current business processes. Digital transformation leaders are looking for the next shift but not just today's challenges.