EXECUTIVE SUMMARY
Competing for
Digital Customers:
Why Companies Must
Embrace Digital
Transformation Now
As a business leader, you’re thinking about disruption. You’re talking about disruption.
Let’s be honest, you’re concerned about disruption. And if you’re not, you should be.
Of course, businesses have always disrupted and replaced other businesses. In the early
1800s in England, factories with mechanical looms threatened to replace traditional
shops making hand-woven cloth, which led to riots among weavers fighting to save a
way of life. These weavers were literally the first Luddites, named after the fictional
Ned Ludd, “general of the Army of Redressers.” You can probably guess how the Luddites’ war against mechanization and progress turned out for the weavers.
No, disruption isn’t new. What’s new is the pace of dis-
The digital enterprise isn’t merely concerned with improving
ruption. What may have taken decades in the past seems
operational efficiency but actively seeks its own “creative dis-
now to happen overnight. Uber burst on to the scene just a
ruption” in the pursuit of digital customers. Its goal must be to
few years ago and already is taking down the taxi industry
find innovative ways to engage this new breed of customers –
in New York City, destroying the value to this long-estab-
and ultimately capture a greater share of their digital wallet and
lished business. Like the weavers, taxi drivers are fight-
growing purchasing power. Digital transformation is the means
ing back too, suing NYC and blaming Uber for ruining their
by which companies will create those new business models and
livelihood. In the end, they will be no more successful than
revenue streams.
those early Luddites.
In this paper, we’ll explain what we mean by the digital enter-
Transform or die. That’s the theme of this paper and the
prise, as well as related concepts such as digital economy and
mantra of many a forward-thinking business leader. Digital
digital platform. We’ll also talk about the rise of customer ex-
technology (or, as some refer to it, “infotech”) has dis-
perience and changing customer expectations and how digital
rupted large swaths of the economy, from taxi drivers to
customers accelerate the need for digital transformation. We’ll
travel agents, from book sellers to movie vendors, and it
provide examples of business and industries undergoing trans-
will continue to upend entrenched businesses that are slow
formation and what that looks like. We’ll explain the concept of a
to recognize and respond to the digital tsunami. To avoid
digital platform, its characteristics and components. And finally,
being swept away like the Borders and Blockbusters of the
we’ll offer a model which you can use to assess your own digital
world, businesses must embrace digital transformation.
maturity and readiness for transformation.
Digital transformation is how your business becomes a
Along the way, we’ll address questions that are surely on the
digital enterprise, and transforming your organization into
mind of every business leader today: How do we remain success-
a digital enterprise is necessary to compete for digital cus-
ful in a business environment transformed by digital innovation?
tomers. As Gartner analyst Ken McGee suggests in “Six Key
And, perhaps more importantly: How do we avoid becoming the
Steps to Build a Successful Digital Business,” digital busi-
next Blockbuster Video?
ness leaders must think about technology in fundamentally
What you’ll take away from this paper is not just a deeper under-
different ways. Digital business, he writes, “is not synony-
standing of digital transformation – what it is, why it needs to at
mous with IT. It is about revenue, value, markets, and cus-
or near the top of your strategic imperatives – but also how to
tomers. It is outward focused.”
begin your journey of transformation (while you still have time).
“The digital enterprise is ultimately all about the customer.”
— Chris McLaughlin, CMO, EMC Enterprise Content Division.
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