By: Connie Moore, Senior Vice-President of Research, Digital Clarity Group
The urgency for adopting new business models (in response to continuous digital disruption) is now driving C-suite executives around the globe to embrace digital transformation. This shift profoundly impacts the current and future technologies deployed in today’s enterprise. Companies and government agencies alike are searching for new ways to engage with customers, predict customer desires and needs, shift from transactions to long-term relationships, and leverage deeper knowledge about products, customers, and services. A groundswell of organizations across industry sectors are re-thinking how to support customer needs by delivering exceptional experiences within customer journeys across ever-expanding digital channels.
The business and technology trends that are now shaking the foundations of industry sectors show no sign of abating. Instead, they shine a bright spotlight on the need for digital channels and Digital Experience Platforms (DXPs) that produce great customer experiences. But how to deliver the seamless digital experiences required to support them? Organizations are struggling with questions such as:
- What new business models are emerging with industries? How outdated is our organization compared to market leaders in our industry?
- How are organizations approaching Digital Experience (DX)?
- What is essential for Digital Experience Platforms to be successful?
- What capabilities and technologies are the DXP linchpins?
- Who owns DXP choice and implementation?
- How to get started? How can cross-functional teams help?
To answer these questions, we launched an in-depth research initiative in 2018 which involved surveying 300 IT and business executives and interviewing 22 executives across North America, Europe, and Latin America. This landmark study identified three findings:
- Customer data is the linchpin of Digital Experience Platforms. 47% of 300 respondents ranked CRM, analytics, and BI as most important to their company’s customer experience strategy. Without customer data, companies have a hard time delivering customer intimacy and long-term engagement and are hamstrung in launching new AI projects.
- CIOs are in the driver’s seat. 40% of 300 respondents say the DX strategy is set by the C-suite and involves all the business units, while 31% say IT owns the DX technology strategy. In addition, 16% of respondents say DX technology is primarily a collaborative effort between IT and marketing. Only 10% believe DX technology is a marketing issue.
- Heterogenous DX platforms dominate the buyer’s DX strategy. Specifically, 55% of 300 organizations plan to buy heterogenous DX technology within 12 months. (33% prefer best of breed approaches, 22% plan to combine their single vendor with point solutions from other vendors, and 11% plan to develop and integrate in-house using open source wherever possible.) The overriding reason for a heterogenous approach is the amount of constant change in the DXP marketplace, with 55% of 98 respondents (who prefer heterogeneous) identifying change as the main factor influencing their approach.
Based on this extensive research, Digital Clarity Group depicts the Digital Experience Platform as a federated system with six subsystems and a data hub at the center:
To learn more about these and other DXP findings, join me in the upcoming webinar, “Digital Clarity Group research uncovers DXP buying trends.”
Connie Moore is Senior Vice President of Research, Digital Clarity Group. Her research encompasses business transformation, business process management, customer experience management, information management, the future of work, new business models, and organizational change management.