5 EXAMPLE OF SUCCESSFUL DIGITAL TRANSFORMATION & BENEFITS

#. Digital transformation roadmap overview:

“Digital transformation is the changes associated with digital technology application and integration into all aspects of human life and society. It is the move from the physical to digital.”

• Global spending on digital transformation is?expected to reach $3.4 trillion by 2026 ?after topping $1.6 trillion in 2022. However, this significant financial commitment doesn't necessarily equate to success.?
• The complex nature of digital transformation often results in less-than-ideal outcomes, as evidenced by a mere?16% of surveyed organizations ?reporting successful implementation.
• This issue isn't confined to traditionally less tech-oriented sectors; even the most digitally adept industries struggle, boasting success rates of only up to 26%.
• Why? Because they don’t have an effective digital transformation roadmap and the right tools to maintain execution momentum across the organization.

#. So,?what are the benefits of digital transformation?

• Customer-centricity:?

clients want valuable solutions to their problems, and they want it fast. Customer experience (CX) is a primary value of digital products.

• Improving business process efficiency:

Digital technology can improve the efficiency of business processes in many ways. Automation tools, online collaboration tools, and analytics are just a few digital technologies that can improve business efficiency.

• Improved analytics:?

going digital makes it possible to track and analyze metrics related to all digitalized processes, be it sales, marketing, logistics, customer care, finance, etc.

• Cost savings and revenue growth:?

maintaining old systems and products generates costs that can be reduced through digitalization, moving to more modern IT solutions, and rethinking the processes around that.

• Enhancing customer value:

The customer experience has become a centerpiece for many organizations today. Good experiences can actually become competitive differentiators, which is why?customer success ?has become the focus of many digital transformation efforts.

• Reduced operational cost:?

improvements in IT infrastructure, more effective supply chain management, streamlined communication and decision-making.?

• Increased agility and innovation:?

implementing agile processes,?digital solutions , working with open-minded talent, all that, gives businesses the capacity to adapt in response to changing environment and improve to be ahead of the industry

• Digital skills and know-how:?

investing in employees’ skills development equips organizations with updated in-house knowledge and skillsets. Intelligent talent management may be an essential competitive advantage and drive the growth of an enterprise.

• Better employee experience and work culture:?

performance reviews, feedback, training, onboarding, tracking employee satisfaction, all that can be at least partially automated and powered up with analytics. It leaves more time and energy to focus on taking care of all the employees and their needs.

#. 5 Successful examples of digital transformation:

Adobe:

Adobe is an American software company founded in 1982. You probably used some of their flagship products: Photoshop (to edit images), Adobe Acrobat Reader (to read or edit PDF files), or Illustrator (to create vector-based illustrations).

Their digital transformation happened on many levels: new business model (SaaS), new technology (cloud), redefined service packages and positioning (focusing on enterprise clients), new HR management strategy, embracing a data-driven operation model, etc. Adobe’s example proves two important facts:

1. Digital transformation can create a substantial competitive advantage for a business.
2. It has to happen across the whole organization and redefine the way of doing things for everyone.

Sonnen:

sonnen is a renewable energy B2C service provider. The company enables households connected to its network to produce, store, and share their electricity.

sonnen’s case is particularly interesting, as it decided to embrace digital transformation because their business was growing so fast that they needed to:

• Rapidly grow the teams
• Improve the service ecosystem,
• Work on internal processes
• Deal with high volumes of traffic and data
• Face technical debt from their older products
• Comply with regulations on different markets

Between 2017 and early 2021, sonnen went through the digital transformation that was concentrated around two complementary pillars. The first one was the transition to Agile. It facilitated changes in the company structure, adjusting it to the needs of its customers, employees and the ever-changing market.

UPS:

Logistics?is definitely one of the industries that have undergone?the most significant changes linked to the evolution of digital technologies.?UPS is an international shipping and supply chain management company. It was founded in 1907, which makes me think that digital transformation was just another transformation on its long timeline. However, established companies tend to have more difficulties embracing digital transformation, and UPS proves it is not always true.

Back in 2012, UPS was already relying heavily on digital technology, but this is when they started a?digital transformation in logistics and operations.?They had two main goals:

1. To speed up the delivery process.
2. To introduce real-time package tracking.

Nike:

Nike is an American sportswear company. Sometime around 2017, they realized that while they were one of the most recognizable brands worldwide, their brand image has weakened – they were perceived as just another sportswear company.

Having that in mind,?Nike decided on a digital transformation focused on enhancing brand image and customer experience.?They set 3 goals:

1. Double the innovation.
2. Double the speed to market.
3. Double direct connection points to customers.

Ikea:

Ikea is a multinational giant that designs and sells ready-to-assemble furniture and home accessories. After running an analogue business for almost 80 years and becoming one of the world’s most recognized trademarks,?Ikea decided to undertake a digital transformation in 2018.

The company decided to hire a digital expert to lead the organization through the process. In early 2018, Barbara Martin Coppola, ex-Google and Samsung advisor, joined Ikea’s team as a Chief Digital Officer.

The scale of changes was massive and touched all facets of Ikea’s business.?In this article, we take a closer look at three examples:

1. Being a retail company,?Ikea focused on developing its e-commerce. Running an online shop and a traditional store are two very different things. Running both at the same time is a whole new story. It is impossible to say where one part of digital transformation ends, and another begins.
2. To adapt to the new business model, Ikea decided to?transform their stores and use them also as fulfilment centers. To operate two businesses from the same space (from thousands of spaces Ikea stores and distribution centers), they used algorithms to manage the supply chain.
3. The same customers were shopping at Ikea online and offline. To enhance customer experience and keep consistent branding across all channels, the company decided to?connect in-store and online interactions with their clients.?