The Covid-19 pandemic has forced many organizations to shift to digital in a massive way. What has started as a crisis response has today become a new normal.
Digital transformation solutions have brought a huge change to the business landscape and now there is no getting away from it. Hence, today it’s important for businesses to infuse virtual experiences with a human touch to create successful digital transformation examples.
According to a report by Forbes magazine, companies that are digitally mature are 23% percent more profitable than their peers that are less mature.
Transforming a business so that it will perform better today in the digital world is not an easy task. All it requires is a lot of innovation, leadership, technology, and vision. It is to a greater extent a specialized technical game.
Companies that have today adopted digitalization are having more advantages and have set great examples of digital transformation.
What is Digital Transformation?
Digital transformation (Provided by Digital Transformation Consulting Services) simply means the integration of digital technology into all different areas of a business, fundamentally it means changing the way you operate your business and provide value to your clients.
It refers to radical thinking of how an organization uses technology, people, and processes to fundamentally change business performance.
Digital transformation is more than just about updating technology and processes; it also involves revenue and shareholders.
There are many companies that do not show much interest in investing in digital transformation as they are doubtful of whether their investment will pay off or not. However, if digital transformation is done strategically, it can improve stock prices and revenue in the long run.
The following are the seven major companies that show that changes might not happen overnight but investing in digital transformation can make a big financial impact over time.
5 Examples of Digital Transformation’s Impact on Business Performance
Best Buy’s Performance
Seven years ago, a common assumption made by people was that Best Buy was dead. Even people working at Best Buy didn’t think that the company would survive.
But the arrival of a new CEO and a fresh digital perspective transformed the company from a simple electronics store where people buy CDs to a digital leader in technology.
Now the company, rather than just selling products, aims to enrich people’s lives with technology. The company has made improvements in its delivery times. It introduced a price matching program, and shifted its focus to advising customers, and not just selling them.
Best Buy embraced digital marketing and changed from predominantly mail marketing to an almost entirely digital strategy. The company today uses data to create customer profiles to provide customized recommendations and assistance. Further, the company introduced the Geek Squad, as well as a price matching program. This resulted in an increase in their stock price from $23.70 in 2012 to about $74 today.
Target’s Digital Transformation Strategy
Target is another company that introduced its digital presence. The American big-box department store added new technology in its stores, introduced online ordering, and increased its social media, web presence, and online sales to increase its market share.
The company has been investing in its stores to create a new, remodeled design that blurs the line between e-commerce and physical stores. Target has until now remodeled 400 of its stores and has equipped all of them with new technology in the last two years, it has even introduced online ordering and also, like in-store pickup, and curbside grocery pickup services.
The company’s new, remodeled, store design and a greater focus on direct-to-consumer sales allowed customers to discover their new products, gain easier access to their popular brands and purchase them online and directly through social media.
The company even developed a digital strategy that was more effective because it allowed for deeper customization.
The department store chain started its retail digital transformation in 2006 and has seen an increase in its stock value rise from a low of $53 to $88 today. Since going digital, Target’s revenue has increased by around $6 billion.
Business Innovation by Hasbro
In late 2012, an American multinational toy and game manufacturing company Hasbro realized that its market share was coming down. Therefore, the company realized that instead of focusing on children, it really should focus on marketing to their parents, who are the actual ones making the purchases.
So, to increase its sales, the toy company created new digital and data strategies. It began gathering and using customer data to create more successful targeted marketing campaigns.
The company made a major push into social media focusing on the parents who buy toys and games. The advanced information they collected assisted the organization with a good understanding and allowed it to be proactive in managing its clients.
Using Omnichannel Marketing
These days the American multinational toy manufacturing giant Hasbro is combining digital storytelling, video content, and social media marketing to better connect with customers. The company now leverages customer data to better anticipate and meet their needs.
Better use of digital data, technology, and targeted marketing methods has helped Hasbro increase its value of Stocks from $36 in 2013 to $109 today despite disruptions, volatility, and changes in the industry.
Home Depot’s Digital Transformation Strategy
Even though The Home Depot, the American Multinational Home Improvement Company, has been successful in its business, the company in late 2017 decided to adopt a more expansive digital transformation strategy.
The main aim of the company was to enhance the online shopping experience and provide customers with the highest quality products and best resources through a seamless process across all channels.
The Home Depot planned to invest a sum of $11 billion in three years so that it could improve both its in-store and online shopping experience.
Improving Customer Experience
Home Depot hired around 1000 information technology professionals that improved the customer experience. The company now has built up its back end and distribution channels and created a robust IT department that gathers and makes more effective use of customer data.
It is now tracking local trends to ensure that the right items are in stock without losing money on excess inventory. Home Depot even added visual and voice search to its mobile application to give customers more options.
Instead of being flooded by products, customers can now easily find the right items and get help knowing how to do home repairs or complete a project.
Over the past two years, its stock value has increased from $ 135 to $ 215, and its revenue has grown by over $ 17 billion.
Nike’s Digital Transformation
Nike, one of the world’s top athletic shoes and clothing brands, felt that it was starting to become sluggish and outdated. And therefore, the leadership didn’t hesitate, it just did a digital transformation of the company’s mindset, brand, and supply chain. The company was able to better connect with its customer base.
Nike further focused on more powerful data analytics, updated its e-commerce strategy, created stronger digital marketing campaigns, and ramped up its direct-to-consumer sales.
More efficient and effective use of digital consumer data led Nike to open concept stores, create more membership opportunities and improve the customer experience online and through mobile apps.
Dramatic Transformation of Nike
Nike’s strong digital marketing, more powerful data analytics, more direct-to-consumers focus, and an updated e-commerce strategy, have led to a dramatic transformation of the company. It has come about in a faster product improvement cycle.
Nike’s digital transformation is continuous as it pushes for inventive ways of connecting with clients and getting a major advantage over the competition. At the start of 2017, Nike’s stock cost was $52 but now it’s increased to almost $88. In that equivalent time, Nike’s income expanded from $33.5 billion to $39.1 billion.
These are just some examples of innovation in business that have let many companies use the power of digital transformation by simply updating their technology and processes.
Companies, by investing in viable digital transformation and digital solutions, can turn their lagging stocks into industry leaders. Although risks are involved, we can learn from the above-listed companies that finding digital solutions and processes can make a company an example of innovation in business and can lead to long-term financial gains.