At Vlocity, Mark leads the company’s global Customer Strategy team, focused on helping enterprises define their digital strategies and realize maximum value from digital technology investments. With more than two decades of CRM experience, Mark has helped hundreds of customers transform their business with innovative, customer-centric approaches that incorporate the latest digital trends and technologies. Prior to Vlocity, Mark was Vice President & Head of Global Value Services at Oracle. He has also held leadership positions at Siebel Systems, iXL Enterprises (now part of SapientRazorfish), and AT&T.
Welcome to a new blog series focused on the business value of digital transformation.
These days, we hear the term digital disruption everywhere – in the media, from industry leaders and from emerging entrepreneurs. While the shockwaves may be accelerating, the concept of digital disruption is not new. There are countless examples over the past decade illustrating how digital leaders are reinventing industries by leveraging technology in new ways and achieving amazing results.
Think about some of the biggest players making news and disrupting existing markets today. WhatsApp sold to Facebook for $22B in 2014 and now enables hundreds of millions of calls and text messages per day, disrupting two massive streams of telco revenue while it plans to take on the banking sector with peer-to-peer payments. Amazon controls 43 percent of U.S. online commerce, and now plans to apply their digital prowess to brick and mortar establishments like Whole Foods. With a visionary business model, Amazon is clearly the premier disrupter of retail. And let’s not forget the incredible rise of Airbnb – along with Uber probably the most recognizable brand in the “share economy”– facilitating more than 500,000 stays per night across the globe and completely disrupting the hospitality industry.
These successes weren’t simply born out of great products and services coupled with a “take no prisoners” startup mentality. They were also born out of an intuitive, collective insight into how digital forces are able to redefine the customer experience and customer expectations of value. Examining this more closely, high-performance digital leaders all have the following three things in common:
- They put human experience at the center of decision-making, focusing on automation, mobile-first, omnichannel and socially connected experiences
- They innovate rapidly—speed matters in the digital world, and these companies know how to iterate and succeed quickly (and fail fast, too)
- They understand, nurture and invest in digital as a competitive advantage by aligning their executive team and investing in skill sets, processes and technology.
The pace of digital disruption is accelerating. By 2027, innovation consultancy Innosight predicts that 75 percent of the S&P 500 will be replaced. That’s a staggering figure. Business executives in every industry – not just tech – are asking themselves how they can transform their business with digital technology before someone else seizes the opportunity—or seizes them. Before becoming a digital disrupter, businesses must embark on a programmatic journey of digital transformation. The optimal path to becoming a digital business depends on a variety of factors, including customer segments, channels, products, processes and underlying business economics. A company’s overarching business strategy also plays a critical role. Are you focused on customer intimacy, product leadership or cost efficiency? And which digital investments will yield the highest return for shareholders, protect existing customers and open up new markets?
So in the coming weeks, I will be highlighting the seven primary business benefits of digital transformation and discuss the types of capabilities necessary to achieve them.
We’ll start the discussion next week with Digital Transformation Benefit #1 of 7 – Selling Success!