Sunday, 9 November 2014

Brian Solis on Digital Transformation

He is an award-winning author, prominent blogger, and keynote speaker on digital transformation. He defines himself as “a digital analyst, anthropologist, and futurist” who studies the effects of emerging technology on business and culture.

I caught up with Principal Analyst at Altimeter Group Brian Solis, to learn what organisations are doing to adapt to the 21st Century. In this exclusive interview we also discuss about their recently announced partnership with Capgemini Consulting.

Joining our conversation is Altimeter Group’s Chief Operating Officer Shannon Latta.

Gloria Lombardi: Digital Transformation. What does it involve? And, which companies are doing well?

Brian Solis: In our report “Why and How Companies are Investing in New Business Models to Lead Digital Customer Experiences” we analysed some of the best companies doing well in this space. These include Starbucks, Intuit, Sephora, Lego, General Motors, and Ford.

Each of them is going through digital transformation in their own way. But, the stories we heard were phenomenal across the board. I will save the concrete examples for the report since it is free to download. However, here I’ll share some highlights.

Everyone begins at the same place. It starts with asking a simple question, “How is my digital customer and employee different from those who are traditional?”

From there, you learn about journeys, expectations, behaviours, and preferences. You start to see that the investments you make today are indeed showing signs of decay or irrelevance.

However, seeking these answers, is how we begin to learn the “why” and “how” of digital transformation.

For example, Starbucks' CDO Adam Brotman started with digital customers and mobile platforms. “I started with mobile; that was the heart of it where we really acted as a team,” he told me. “That worked well and catalysed, moving into web where we were charged with figuring out what our mobile web strategy looked like and how it connected to our loyalty and payment groups. From there, it snowballed pretty quickly.”

Digital transformation is also about building relationships and alliances inside the company to expedite and scale change. Digital leaders must open the door for passionate employees throughout the company who have the energy, passion, and experience to champion change. As LEGO’s Lars Silberbauer, Global Director of Social Media and Search, shared with me, “It's about finding those people in different departments who are willing to risk things to be a lead within the company. There are a lot of people who want to take a company forward.”

Once you have support, digital transformation will lead to new vision and operating philosophies as well as models and processes.

Another example is Motorola Solutions. The partnership between IT and marketing was elevated to an entirely new level. Dubbed the “MIT Group,” Marketing and IT formed an official alliance to focus on an integrated approach to digital customer experience and change.

GL: Based on these studies, what are the challenges to digital transformation? 

BS: Too many companies are approaching their digital transformation from a technology perspective.

But at the heart, digital transformation is the story of how people are changing.

Whether we realise it or not, the way customers and employees make decisions, the technology they use, and how preferences and expectations evolve or detour, are stories for us to discover. These are the insights that guide the transformation. Technology adoption is not the solution: it is merely an enabler for transformation.

It takes vision to make the change. I will share with you an example from our second report on digital transformation.

The State of Digital Transformation” revealed the organisations supposedly undergoing digital transformation. (After studying the best companies out there, we wanted to compare them with everyone else).

88% of these enterprises stated they were going through digital transformation efforts. However, within the last year, only 25% of them completely mapped out the customer journey to get a clear understanding of new digital touch-points.

GL: With these findings at hand, what's your view for the future of digital transformation? 

BS: Digital transformation means different things to different people. That’s OK. The future is going to either happen to businesses or because of the changes they undertake today.

Change has to start somewhere. Strategists will realise that their digital customers and employees are not only different from their traditional counterparts, but also different from the executives who think they know them.

The future is really about empathy. Without empathy, there can be no real change. Without it, businesses will succumb to something that I call 'Digital Darwinism', when technology and society evolve beyond the ability to adapt and thrive

GL: The consulting industry is facing its own digital transformation. Recently you partnered with Capgemini.

Shannon Latta: We share a common vision on digital transformation as evidenced by our respective research on the topic.

We started talking several months ago about this and quickly identified a powerful new offer for the market by joining forces on research and client engagements.

Altimeter Group has participated in Capgemini Consulting’s training events and internal meetings. We have been able to assess cultural and strategic fit of the partnership. In all these events we felt completely aligned in terms of business values, style, and areas of focus.

A partnership like this one will help us increase the value we give organisations through greater thought leadership and new offerings.

GL: A shared vision around digital transformation. Could you tell us more? 

BS: Altimeter and Capgemini's work is not only complementary; clients and prospects already substantiate it.

Capgemini takes a holistic view of digital transformation across the entire enterprise - from manufacturing to marketing, service, support and everything in between.

Initially, Altimeter Group focused on the digital customer experience and employee engagement. Our view was inspired by the work we were already doing around social media, content strategy and mobile. We learned that significant budget and resource investments are led by sales and marketing to update ageing infrastructures and to pursue the digital customer more effectively.

Our initial research was designed to help marketers and IT professionals think beyond technology. We wanted to encourage them to invest in strategy, system and process roadmaps, which are relevant for discerning, sophisticated, (and impatient) customers and employees.

GL: How will Altimeter Group and Capgemini work together?

SL: In addition to publishing joint research, we will help large enterprises with digital transformation initiatives. The combination of Altimeter's leading research and industry recognition with Capgemini Consulting’s transformation and implementation skills will provide a full spectrum offer for companies seeking to transform around digital.

Both firms are client-first organisations: everything is done to create value and satisfaction for them.

We share several common clients and we are actively exploring how to leverage that synergy.

Initially, we will focus our work on high tech, financial services and retail sectors. We have already worked on one joint client engagement and are in discussions with other prospects.

GL: Which type of networks will be involved to leverage that synergy?

SL: Altimeter and Capgemini Consulting each have vast networks of people who are the digital change agents inside their organisations.

To inform our research, together we are tapping Capgemini Consulting's portfolio of brands at different stages of digital transformation. The same applies to Altimeter Group's network of influencers and strategists that we have cultivated through both our research and client work.

GL: In terms of research, what will the partnership focus on?

SL: We have planned studies across the two companies’ complementary focused areas: digital transformation, big data and innovation. We expect to deliver joint research to the market before the end of the year starting with the idea of a framework for innovation.

GL: Innovation. Is there anything we can anticipate Brian? 

BS: Innovation doesn't always correlate to technology. Most of the time, it starts with perspective: seeing things differently. It is something that touches processes, models, and corporate vision.

This is a key area of focus. We look forward to sharing more in the coming months. 

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This article originally appeared on simply-communicate