THE WHY AND HOW OF DIGITAL TRANSFORMATION

2017: Company Issues

2017: Company Issues

December 22, 2016 Insight 0

In 2017, customer experience is a major driver for business. However, giving your audience what they expect is only possible when the company is up to date internally. In this part of our prediction series, we’ll discuss what you need to pay attention to in 2017.

Team
Leadership, team structure and responsibility: these topics caused some worries in 2016 and will keep on doing that next year. Digital Transformation has to be everywhere in a company and it has its effect on enterprise hierarchy. 2017 is the year the C-suite has to step up: shift budgets more aggressively from traditional IT spend to those technologies that directly or indirectly connect to customer experiences.

The insights to build critical customer facing, revenue-generating systems and applications comes from marketing, so these departments will have to become connected.CIOs take the lead in shaping the digital strategy to confront competitive risk, but that’s not enough. Truly stepping up means blending departments and skills to the point where marketing, IT, communications, design and growth building come together.

Mixing up skills will also have to happen within departments and individual employees are supposed to have a combination of capabilities as well. In fact, Forrester predicts that CEOs will exit 30% of their CMO’s for not being able to drive digital business transformation, design exceptional personalized experiences, and propel growth at the same time.

The next digital level
2017 is the year we move from experience to operations, from fixing towards developing. Many companies started becoming digital by attaching digital front ends to existing products. This turns out not to be a longterm solution: transformation involves technology, products, processes and people embracing digital. Products and services have to be part of the digital era by onset. Next year, transformation budgets grow up into the billions. with brands having to spent $4 on digital operational excellence for every $1 spent on digital customer experiences.

Cloud
The cloud market will accelerate even faster in 2017. The companies that already use multiple clouds today will develop whole cloud ecosystems connecting employees, customers, partners, vendors and devices. Some companies will go even further and become cloud companies themselves, becoming stewards of their own client and product ecosystems.

This massive adoption of cloud solutions demands for a more elaborate cloud management that covers security, networking and container solutions. CIOs will divide their budgets between upgrading infrastructure, servers, storage, hosted and cloud-based resources.

Skills
Automation processes bring pressure on low-skill jobs and  the demand for new skills and roles is high. That’s why we see some big shifts in the job market as well. Our last ‘predicting 2017’ post this year will reveal the most important changes, and the skills and competencies that will be most in demand next year. Stay tuned!

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About the author

Michael Meijers
Racker since 2015 - Michael Meijers has worked at big companies like IBM and Tele2 for years and has seen first-hand what companies have to do to survive. In his role as Sales Manager Benelux and Nordics, he frequently learns from our clients what they do to delight their customers.

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