Digital experience has become an essential ingredient for driving customer delight, loyalty and growth.
Traditionally, the focus has been on creating rich user interfaces leveraging ever-evolving front-end technologies. But long-term success requires a deeper understanding of people, processes, technology, and data – and how these elements are orchestrated in an organization.
To examine how this shift is impacting companies today, Accenture Interactive conducted a survey of organizations with more than 1,000 full-time employees across industries to understand the following:
How organizations across industries are addressing their organizational structures
How organizations are accounting for the people and process aspects to get their jobs done successfully
The role of third parties to achieve business goals
A perspective on objectives, goals and measurements inside successful organizations
Market trends that drive organizational considerations and how organizations are better optimizing their digital strategies
Which Companies Are Achieving Digital Success?
Digital is becoming a large source of B2B revenue
The survey revealed that B2B organizations have significant upside potential for revenue growth through digital. More results include:
Approximately one in four survey respondents said more than half of their revenue flows through digital channels.
Large organizations are seeing a greater share of revenue from digital commerce.
B2B organizations are not yet seeing high amounts of digital revenue.
Forty percent of B2B businesses earn less than 10 percent of their revenue from digital.
Large, mature companies have much larger digital organizations
Most digital organizations were founded within the last four years (64 percent). Not surprisingly, mature corporations with more than $25 billion in annual revenue tend to have much larger digital organizations.
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Across all business sectors, survey respondents recognize the need to measure and track the performance of their digital strategies.
It’s interesting to note that digital measures varied slightly based on digital revenue. Organizations with less digital revenue tended to track fewer KPIs than organizations that earn a higher share of revenue from digital.
In the same way that organizations operating in both B2B and B2C markets were most likely to report more than 90 percent of revenue coming from digital, companies servicing both B2B and B2C markets reported having more digital KPIs in place than their peers.
Although the implementation of digital strategies has resulted in net benefits to businesses of all shapes and sizes, organizations continue to face a daunting array of internal and external challenges.
Customer retention (37 percent) and acquisition (36 percent) were reported as the most critical challenges, suggesting that many organizations struggle with high customer turnover rates.
Nearly all organizations believe their digital strategies are competitive
When asked to identify their position in relation to the competition, most survey respondents indicated confidence that their digital strategies make them competitive with other organizations in their industries.
Governance and control are key challenges for market leaders
Governance concerns are especially relevant for market leaders in digital – companies that earn more than half of their revenue online.
Operating Models Cited in the Survey
Digital Center of Excellence (DCoE) model (30 percent)
Provides expertise and standards, and supports strategy development for focus areas.
Centralized model (28 percent)
A single, centralized unit for experience strategy and execution.
Fully Integrated model (8 percent)
All functions are digitally enabled and the experience is managed holistically across touch points.
One in four survey respondents said that the CMO is responsible for the growth of the digital organization, followed by the CDO (15 percent).
The study findings indicate a lack of clear consensus on digital leadership.
Who in your company is responsible for growth of the digital organization?
Talents and Skills
Although many digital organizations have already made significant investments in staffing, there is a widespread recognition that more talent acquisition will be necessary to meet growth expectations.
Hiring the right talent may not be as straightforward as it seems. In many cases, the available talent pool and fluctuations in regional job markets can present serious challenges for digital recruiting and retention.
Vendors and Agencies
One of the ways digital organizations compensate for gaps in skills and talents is by enlisting the help of vendors or agencies. But the willingness to hire vendors or agencies varies, based on the size of the organization and the share of revenue attributed to digital.
The data shows that companies earning more than half of their revenue from digital are more likely to work with vendors and agencies for a larger share of their digital work.
Priorities and Investment
As companies become more comfortable with the idea of a digital strategy, priorities are shifting as digital leaders look to invest in organizational growth and expansion. Overall, digital organizations are currently engaged in the following activities:
Content-based marketing (51%)
Developing an eCommerce/digital strategy (50%)
eCommerce re-platforming (44%)
Mobile commerce (41%)
Enabling new digital customer self-service capabilities (38%)
Over the next 12 months, the average digital organization plans to invest in the following areas, demonstrating a slightly different set of digital priorities:
Digital organization expansion (30%)
Enabling new digital customer self-service capabilities (30%)
Content curation and enrichment (30%)
Personalized experience and offers (28%)
Digital data warehousing (27%)