What is digital transformation?
Most organizations interpret digital transformation as ‘becoming digital first’ in their communications. Their focus is on increasing digital channel spends, using more types of digital channels and improving personalization of communications via better customer data (collecting 1st party data, and building partnerships to gain access to 2nd party and 3rd party data). Their transformation process is led either by digital practitioners or data strategy leaders or technology leaders. This definition of ‘digital transformation’ is too narrow and a barrier to the long-term growth (and, also to survival) of these organizations
Digital transformation should be understood as ‘Transformation for the digital era. The digital era is different from the pre-digital era in three key areas relevant for marketers:
- How customers build relationships with brands
- The types of competitors that brands are faced with
- The opportunities offered by big data
Companies born in the digital era tend to be better structured to take advantage of these changes and win market share, especially from the pre-digital era companies who haven’t transformed fast enough. The key role of insights and analytics leaders is to help organizations understand the threats and opportunities from these changes, and therefore direct the transformation strategy necessary to win.
What role should insights & analytics leaders play?
First, let’s talk about customers in the digital era.
Now let’s move to competition in the digital era.
Finally, let’s talk about data in the digital era.
In summary, digital transformation is about taking advantage of opportunities and overcoming the threats brought forth by the digital era. Insights & Analytics leaders hold the key in the design of a successful transformation strategy and therefore should be central to the transformation process.