Dive Brief:
- Digital transformation is now more often led by chief marketing officers, as opposed to chief information officers or chief technology officers, according to a new report from Altimeter Group. The study found CMOs led digital transformation efforts 34% of the time, followed by CEOs (27%) and CIOs/CTOs (19%).
- The report examined the challenges and opportunities companies face in digital transformation and compared them to similar data gathered in 2014. The report is based on a survey from 528 digital strategists and executives in companies with more than 250 employees.
- Customer experience is the top driver of digital transformation, while the number one challenge (71%) is understanding "behavior or impact of the new customer," according to the report.
Dive Insight:
CMOs have a growing role in the direction of IT in the enterprise, and their understanding of the customer may be the key to pushing digital transformation efforts in the right direction. No longer do just CIOs own technology in the enterprise, as more departments move to adopt agile technology and innovative best practices.
"Companies are still prioritizing technology ahead of customer-centricity and investing in front- and back-office solutions without a clear understanding of customer expectations, preferences or values," according to the report.
Though companies still face significant challenges to operating in a digital economy, the efforts appear to be worthwhile. The study also found that 41% of respondents saw an increase in market share due to digital transformation efforts. Another 37% of respondents said digital transformation efforts had a positive impact on employee morale.
