Adopting a digital-first mindset in order to improve and streamline business processes and operations and drive customer value and shareholder value is known as digital transformation. The incorporation of digital transformation can bring an organization to become a market leader. In this blog, we’ll be discussing some of the top digital transformation examples and look at how they were able to successfully capture a majority of the market. According to a report published in the business wire, the digital transformation industry is set to reach $2.3 trillion by 2023. If you wish to learn more about the industry, you can take up the NUS Digital Transformation Course and upskill today.
- What is Digital Transformation?
- Why are businesses experiencing digital transformation?
- Digital Transformation Examples
- Closing Thoughts
What is Digital Transformation?
Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, products, and services to deliver value to customers and employees.
In a digital world, businesses must innovate not only their products and services but also the very way they operate. This is what’s known as digital transformation. Digital transformation is not about technology. It’s about using technology to create new — or modify existing — business processes, products, and services to deliver more value to customers and employees. When done right, digital transformation can be a powerful tool for businesses to gain a competitive edge. But it’s not without its challenges.
Why are businesses experiencing digital transformation?
Before we take a look at the digital transformation examples, let us understand why businesses are incorporating the same. There are several new technological solutions in the market, such as RPA, artificial intelligence, big data, and more. 37% of companies have implemented AI in some form or another, according to Gartner. Over the next decade, the robotics market is said to show massive growth as well. With personalization and targeted recommendations, services such as Spotify and Netflix are increasingly using digital transformation to their advantage.
Thanks to digital transformation, organizations now have the opportunity to increase their efficiency, lower costs, provide better customer service, optimize their supply chain management, and more. With the increasing amount of data available to us today, we can make use of big data to provide valuable insights and thus meet our customers’ needs.
Digital Transformation Examples
We will be discussing some of the top digital transformation examples.
We may feel like Disney World parks are more of an analog entertainment. However, the brand has showcased digital transformation by greatly improving its customer experience through the magicband. This allows customers to make reservations and payments easily. The customers also have access to mymagic straps that provide them with an individual experience by displaying personalized screens in the park.
Disney has also implemented digital transformation in the form of their disney+ streaming platform, which has millions of users across the globe.
A giant in the sports footwear industry, Nike has moved its focus to mobile devices by using advanced recommendation algorithms and machine learning. The mobile application also has a feature that allows you to scan your feet. After this, based on certain data points, it helps choose the best type of footwear for you. This also helps the brand in creating better footwear projects in the future.
One of their important projects is the NIKE+ program, which provides rewards to members. This led to a significant increase in sales. Adopting digital transformation can also help improve the internal operations and allow design teams to work more efficiently and thus improving the response speed to market needs.
Founded in 2003, Tesla has proved to be a game-changer in the automotive industry. This growth comes from several bold strategies that have revolutionized the industry. It currently sells several models of electric vehicles connected to the internet and equipped with features such as ultrasonic sensors and cameras. It is one of the only car manufacturers that have such a high level of digital connectivity.
Tesla has also worked on creating a model that sells its cars on a direct-to-customer basis. It has created an in-store experience that allows personalization wherein customers can choose the autopilot configuration, color, wheels, base model, etc. It also works on understanding the customer preferences such as mirror positioning, car temperature, seat position, and more. They have provided digital transformation and automation like no other.
One of the first examples of Lego implementing digital transformation was in 1997 when it entered the video game industry. Gaming has been an important part of brand promotion for the brand. They have also explored 3D printing options where customers can create their own products, and if the idea gains support, they may consider launching this kit. This increases customer satisfaction and loyalty.
The core technology being used by Lego is .net. It has also digitized its supply chain process and provided data-based insights to optimize manufacturing costs and reduce production delays. In 2009, lego also moved to a digitized system from the shop floor. This improved their productivity.
One of the best cases of how a traditional business can lead the way in digital transformation is IKEA. To strengthen its position in e-commerce, it has been promoting a solid strategy to provide an omnichannel purchasing experience.
The Swedish company offers its customers the option to utilize augmented reality to choose furniture before making a genuine purchase, in addition to switching to smaller-format stores. The business also acquired TaskRabbit in 2017, a platform for hiring employees that enables Ikea consumers to locate furniture assemblers.
Geomagical Labs, a business renowned for its cutting-edge 3D and visual AI technologies, was recently announced to have been acquired by Ikea. Customers will be able to upload photos to the app that will be instantly rendered in 3D, thanks to the new functionality. Prospective buyers will thus have the possibility to swap out old things and add new ones.
Looking at the above digital transformation examples, we can clearly see that Lego may have entered a state of bankruptcy, Ikea wouldn’t have been able to open up new sales channels, and much more. Being able to implement digital transformation requires a creative approach and a good sense of market needs. It is essential to move to digital platforms in order to stay ahead of the game.
Source: GreatLearning Blog