CMOs may be able to help their companies move from ‘doing digital’ to ‘being digital’ by understanding 23 traits of digital-first marketing organizations.
While many marketing organizations are using digital tools to enhance their existing capabilities, most have not fully integrated digital technologies, processes, and mindsets into their current business operations, according to the “Digital DNA Marketing Organizations Assessment Report” from Deloitte Digital and Facebook.¹ The study evaluated the digital maturity of marketing organizations across a range of industries by assessing their “digital DNA”—23 traits that define digital-first organizations, from agility and fluidity to constant disruption and morphing team structures.
In the study, respondents were asked to rate their marketing organization’s maturity level for each of the 23 traits on a scale of 1 to 7, with 1 representing “exploring digital” and 7 representing “being digital,” which means an organization’s business, operating, and talent models are leveraged for digital and are profoundly different from prior models (Figure 1).
On average, marketing organizations report a digital maturity score of 4.9. This falls into the “doing digital” level on the maturity spectrum, meaning companies are using digital technologies but are still focused on current business methods.
The travel industry ranks itself highest in overall digital maturity (5.2), according to the survey. The top-ranking traits within the travel industry are a changing mix of traditional and nontraditional stakeholders (6.0), intentional collaboration (5.9), and morphing team structures (5.5).
The automotive industry also ranks itself high in overall digital maturity (5.1), according to the survey. Some of its top-scoring traits are a changing mix of traditional and nontraditional stakeholders (5.7), intentional collaboration (5.6), and continuous innovation (5.4).
“The automotive industry has been challenged by an increase in nontraditional stakeholders,” says Garth Andrus, a principal with Deloitte Consulting LLP, and global human capital leader at Deloitte Digital. He notes that 80 percent of car buyers now use the internet for car-buying research, visiting an average of 10 auto websites before making a purchase, and almost half of car buyers visit only one dealer before making a purchase, according to a recent survey.
“In this new environment, automotive brands, dealers, and finance companies are intentionally collaborating to provide effective integration,” Andrus says. Intentional collaboration is defined in the study as a mix of virtual and physical participation and cooperation for a common overarching cause. For example, some automotive companies appoint a personal guide to take car buyers through the entire experience, from searching on an automotive website to servicing the vehicle post-purchase, rather than passing them off to different points of contact during the car-buying journey.
Set a digital business goal. Organizations may have different motivations for beginning a digital transformation. In some industries—retail being a prime example—companies may face disruption from e-commerce players, and they may want to become more digital in order to compete. In other industries, such as consumer packaged goods, companies may want to add digital technologies to become more customercentric. “If an organization’s digital intention is to become even more customercentric, its areas of focus in a digital transformation may differ from those of a company dealing with disruption to its business model,” Andrus says.
Start with a win. Rather than tackling all 23 digital DNA traits at once, organizations might start with three or four areas in which they already have some strength. “Focusing on minimum viable change enables companies to begin to move the needle on digital maturity so it becomes a natural way of working, reduces the rejection that can sometimes occur during a transformation, and increases the probability of success,” Andrus says. For example, organizations may already have a culture of innovation or employ Agile work processes, and they can build on these areas, showcase successes, and build momentum throughout the organization before introducing further changes.
Accept failure as learning. Marketing leaders can help build their organization’s digital maturity by creating an environment in which failure is seen as part of the learning process. Overall, survey respondents give their organizations an average of 4.8 rating on this trait. Organizations may consider steps such as recognizing employees who take risks and try new approaches. “Rather than just telling people to fail fast, it’s important to demonstrate that failure is acceptable—if there is learning,” Andrus says.
Organizations vary widely in their digital maturity levels. Leading digital-first marketing organizations have digital DNA embedded in their structures, cultures, and operations. They think, act, and operate differently than traditional legacy organizations. By understanding traits of leading organizations and taking tactical steps to develop these traits, CMOs and other company leaders may be able to infuse digital DNA into their organizations to thrive in the digital era.
1. In May 2017, Deloitte Digital and Facebook conducted an online survey of 383 marketing professionals to gauge their digital maturity, based on an assessment of 23 traits that characterize digital-first organizations.
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