According to Gartner, 82% of CFOs strategize digital transformation to advance their companies’ competitive edge. In a rapidly changing business landscape, digital transformation has become an existential imperative for companies operating in various industries.
By definition, it is a strategic initiative that creates value through the implementation of digital technologies. In practice, it requires a company-wide effort to re-evaluate how digital tools can be used to solve problems, reach new audiences, and deliver improved customer experience.
In this article, we will explore best examples of digital transformation, showcasing companies that tapped into the full potential of digital transformation and stayed relevant amid stiff market competition.
What Is Digital Transformation?
Digital transformation means the integration of digital technologies into the daily operations of businesses and stands as a response to the cascading consequences of digitalization. It encompasses everything from automating processes to using data analytics and revamping decision-making.
The primary goal of implementing digital transformation is to propel an enterprise’s efficiency, effectiveness, and competitiveness. Digital transformation implies the integration of technologies into different business areas, from product development to customer experience. It helps companies create new revenue streams, improve operational efficiency, and drive innovation.
As a result, digital transformation captures a sense of cultural change that has been revolutionizing industries for decades and enables companies to challenge the status quo and continuously experiment with market shifts.
On their journeys, organizations craft approaches to digital transformation that vary in scope, detail, and methodologies. Yet, fruitful strategies partly rely upon two fundamental principles:
- Start analyzing the ideal customer experience and move further to split it up into different areas of improvement.
- View digital transformation as a continuous flow of changes rather than a one-time fix.
In general, businesses create the perfect version of a customer experience they want to deliver, aligning it with an existing branding strategy and forecasting customer needs in the long haul. As a result, organizations estimate the desired changes from end-to-end, including workflows and infrastructure. After that, they implement necessary transformations and analyze their impact on the enterprise’s market position.
Digitization Vs. Digitalization Vs. Digital Transformation
The terms “digitization,” “digitalization,” and “digital transformation” often come as interchangeable, but these concepts are different in their meaning.
Digitization describes the process of converting information from analog to digital form. This can be as simple as taking a picture with a digital camera or scanning a document into a computer. Once information is in digital form, it can be stored, manipulated, and shared more easily than analog information.
Digitalization refers to the integration of technologies to modify a business process or create a new one. For example, a company might digitize its invoicing process by using software to generate and send invoices electronically. Or it might create a new digital product, such as an app.
Last but not least, digital transformation is a broader concept that encompasses both digitization and digitalization. It’s the use of digital technologies designed to change the way a company does business.
For example, a company might use digital technologies to create a new business model, such as offering customers a subscription to a product instead of selling it outright. Or it might use digital technologies to enter a new market or create a new product category.
What Are the Benefits of Digital Transformation?
One of the key advantages of digital transformation is that it can help businesses become more agile. In a world that is constantly changing, being able to adapt quickly is critical for success. Digital transformation also can enable businesses to redesign their workflows and systems to stay more flexible and adaptable. The advantages of integrating digital transformation include:
- Improved decision-making. Digital transformation provides organizations with real-time data and analytics that can be used to make relevant and reliable decisions. For example, data from social media can help understand customer sentiment and make product or service improvements.
- Increased efficiency and productivity. When all of your business processes are digital, you can eliminate paper waste and manual data entry, which can free up time and resources for more acute challenges.
- Top-notch customer experiences. Digital transformation assists in creating more personalized and engaging customer experiences that drive greater engagement and loyalty.
- Greater agility and innovation. Focusing on adaptiveness and swift responses to market shifts, enterprises that integrate digital transformation are more flexible and usually develop new products and services at a faster pace.
- Better insights and decision-making. With access to raw data, organizations can access hidden insights and turn information into knowledge and more efficient decision-making practices.
- Reduced costs. Technological advancements grant companies flexibility and resilience to maximize their investments and improve their bottom line, in this way, gearing up for further digitalization.
As a result, digital transformation empowers organizations to enhance their competitiveness and find new ways to expand their business operations.
What Are the Examples of Digital Transformation?
As mobile devices, social media, the Internet of Things (IoT), Artificial Intelligence (AI), and cloud computing pushed their way into markets and industries, companies faced an existential challenge of staying relevant and competitive enough to thrive amid uncertainty. Evolving customer expectations have greatly contributed to these changes.
Digital Transformation Examples in Manufacturing
By automating processes and integrating data and technology, manufacturers can reduce costs, improve product quality, and speed up production. Additionally, digital transformation helps manufacturers create new business models and tap into unexplored markets.
- Ford Motor Company. Ford Motor Company is a leading car manufacturer that has been using digital transformation to streamline operations and revamp customer experience. The company has invested in a number of digital technologies, including big data and analytics, cloud computing, and 3D printing. By harnessing these technologies, Ford has been able to speed up its product development cycle, reduce costs, and improve the quality of its products.
- Boeing. Boeing has been leveraging digital transformation to improve the efficiency of its manufacturing process. The company has developed a digital twin of its production line that allows it to simulate different production scenarios. Additionally, Boeing has been using big data and analytics to track trends in the aviation industry and seize the opportunity for optimal investments. Owing to its digital transformation initiatives, Boeing has been able to stay ahead of the competition and maintain its position as a leader in the aviation industry.
In the past, manufacturers relied on traditional methods and technologies to create their products. However, with the advent of digital transformation, manufacturers can now develop products much faster and more cheaply. They can also customize their products to meet the specific needs of their customers.
Digital Transformation Automotive Industry: Examples
The automotive industry serves as one of the key platforms for digital transformation. The sector is seeing a shift from traditional manufacturing to new digital technologies and data-driven business models. Mazda and Subaru are two automotive companies that have successfully used digital transformation. Both companies have implemented a number of changes in order to better compete in the digital age.
Mazda has long been an early adopter of new technologies, and this has helped them stay ahead of the competition. For example, they were one of the first automakers to offer an infotainment system in their vehicles. In addition, the organization continues to use digital transformation to further their advantage. By using data to track errors and inefficiencies, they can quickly fix problems, improve their overall product quality, streamline their supply chain and reduce waste.
In the past few years, Subaru has undergone a digital transformation in order to stay competitive and increase its market share. The company has invested in new technologies, such as cloud computing and data analytics, in order to improve its operations. Additionally, Subaru has also launched a new website and updated its mobile app. These changes have allowed the company to better connect with its customers and provide them with a more streamlined and personalized experience. As a result of these digital transformation initiatives, Subaru has seen an increase in sales and customer satisfaction.
Digital Transformation Examples in Banking
The rise of digital banking has been one of the most critical trends shaping the banking sector in recent years. The industry has shifted towards online and mobile banking and turned to new technologies such as AI and big data. This has led to a more personalized and convenient experience for customers, as well as increased competition among financial institutions.
1. Goldman Sachs. Goldman Sachs is a renowned global investment bank that has used digital transformation to its advantage. Goldman Sachs used digital transformation to its benefit by migrating its core banking applications to the cloud. This approach allowed the bank to scale its operations more quickly and efficiently and reduced its IT costs. In addition, Goldman Sachs used digital transformation to improve its customer experience. The bank implemented a mobile app that allowed customers to access their accounts and transact with Goldman Sachs more easily.
2. JPMorgan Chase. JPMorgan Chase has been at the forefront of digital transformation, using it to its benefit in a variety of ways. One of the most notable is its use of big data and analytics to drive insights and decisions. It has helped the company better understand its customers and serve them more effectively. Additionally, digital transformation has helped JPMorgan Chase automate many processes and improve its overall operational efficiency.
The digital transformation of banking is having a major impact on the way banks operate and interact with customers. It is vital for banks to keep up with the latest trends and stay ahead of the competition and provide their customers with the best possible experience.
Digital Transformation Examples in Telecom
A leading Asia-Pacific telecom operator APAC faced the daunting challenges of stiff competition and constantly evolving customer behavior. Market shifts put more than a third of the company’s earnings in danger, leading to the strong need to swiftly adjust to the situation and tackle complex issues. As a result, the leadership team of APAC decided to reset their organization’s DNA and put forward a bold strategy for further reinvention and growth.
The organization adopted a three-year transformation plan across three major segments of improvement. The blueprint heavily relied upon the digital-first user experience, a new go-to-market strategy, and an accelerated operating model. These priorities were supposed to enhance the company’s flexibility and keep up with the profound and irreversible market shifts. As a result, in the next 18 months, the company’s share price rose up to 40%. APAC also deployed the principles of agile methodology to drive down costs and couple resilience and coherency.
Examples of Digital Transformation in Healthcare
The healthcare industry is under pressure to cut costs and improve patient outcomes, with healthcare organizations responding to digital transformation and tackling a broad range of complex challenges.
Founded more than 150 years ago, Mayo Clinic is a first-rate US hospital with approximately 12 000 research studies underway. Digitalization plays a pivotal role in its dynamic scientific advances. In this way, Mayo Clinic created a digital transformation hub called the Center for Digital Health, which relies upon data, analytics, AI, and Machine Learning (ML). The key objective of the facility is to enhance the way the hospital delivers monitoring and provides treatment recommendations to patients. Over the years, one of the key progress steps was made in computer vision as it enabled specialists in radiology and cardiology to perform clinical trials more efficiently. Although current AI systems in healthcare have a positive impact on clinical use, they are still limited in scope and require further meticulous testing and continuous improvement.
Examples of Digital Transformation in Small Business
Cloud computing is becoming increasingly popular among small businesses, as it offers a cost-effective and flexible way to access quality IT resources.
For example, heating and plumbing businesses use the cloud to reignite their customer experience and seamlessly deliver their service. A plumber in Melbourne leverages the potential of planned maintenance software and cloud-based detectors to ensure pre-emptive restoration of equipment and parts before they break.
These tools empower a company to guarantee a top-notch quality of assistance and shorten equipment downtime. Applying a service-based care model, small businesses can automate tedious processes without buying expensive hardware.
Examples of Digital Transformation in Retail
Customers are increasingly expecting a seamless, personalized, and digital experience when they interact with retailers. It puts substantial pressure on retailers as they invest in digital transformation to stay competitive.
The rise of IoT has become one of the greatest contributors to the differentiation of large-scale retailers. For instance, Amazon started experimenting with subscription-style sales by deploying IoT technology. Now, the company provides access to Dash Buttons — small wireless devices that allow customers to order pre-selected items. If clients run low on certain commodities, they can instantly refill chosen goods and wait for the order to come shortly.
As a result, the implementation of IoT improved customer experience, making it easy to shorten the time usually spent on recurrent purchases.
Industries are on the cusp of a new era where businesses are able to harness the power of data and technology and create experiences that are more personalized, relevant, and engaging for customers. Consequently, we can expect to see even more notable innovations in the years to come.
While the journey is not easy and requires significant organizational changes, the benefits and ROI are definitely worth it. The businesses that have been successful in digital transformation have been those that have taken the time to understand the needs of their customers and employees and have then implemented IT solutions that meet those needs. By doing so, they have not only improved the way they do business but have also gained a competitive advantage.
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What Is Digital Transformation?
Digital transformation describes modifications in business workflows, processes, competencies, and methodologies that leverage the opportunities of technologies for business growth. It implies the use of digital technologies in various areas and leads to substantial changes in the way enterprises function and deliver value to customers.
How Do You Build a Digital Transformation Plan?
Here are several steps for your digital transformation plan:
- Define your goals and objectives.
- Conduct a digital audit.
- Identify gaps and areas for improvement.
- Develop a roadmap for change.
- Implement your plan.
- Monitor and adjust as needed.