The adoption of digitizing different areas has brought about a massive organizational transformation in some of the world’s most well-known companies. Today, companies have no choice but to transition from paper to electronic solutions if they want their businesses to be successful in the era of industrial revolution 4.0. This article reviews 5 companies with successful digital transformation.
Discover how some popular organizations have accomplished technology innovation and handled the process and what their achievements were.
What Is Digital Transformation?
Digital transformation (DX) is applying digital technology in every aspect of a company’s operations. DX can have a major impact on how a company can sell its product or service and can engage with customers in a better way.
The outcomes of digital transformation can be observed at various levels of an organization’s structure, including how employees perform, how business operations work, and how data is collected, analyzed, and used.
The Need For Digital Transformation
In 2018, according to a study by Harvard Business Review, roughly $1.3 trillion was spent on digital transformation. Nonetheless, a major proportion of this funding was spent on projects that failed because a lot of businesses were not truly prepared for large-scale change.
Digital transformation is not only an issue of capital expenditure but also of devising modern plans, implementing them, and resolving related problems and possibilities. Almost all businesses now require digital transformation knowledge and skills in their business strategies.
Companies That Have Successfully Adopted Digital Transformation
The following five companies started their digital transformation before it was evident they would bring profitable results. However, their investment in technology made it possible for them to adjust when the economic environment rapidly changed.
In 2004, Lego was struggling to operate and was on the verge of filing for bankruptcy. In 2005, the company computerized its supply chain operations to obtain more detailed information about manufacturing inefficiencies and costs. Lego also migrated its human resources software to a single, enterprise-wide system in 2008.
They upgraded the shop floor to a digital system in 2009, giving them a greater understanding of variables influencing efficiency. They had deployed an enterprise-level product lifecycle management solution by 2011.
In 2016, Lego’s leadership believed that the company’s turnaround was still incomplete. It had developed an organizational infrastructure capable of delivering digital solutions but had not yet become a truly digital organization. They then aimed to develop technology that would make collaboration and participation easier.
Lego also considered using technology to deliver digitized products in addition to its classic Lego pieces. They built a consumer portal as part of that initiative, where people could contribute new ideas.
IKEA was an innovator of the click-and-collect delivery method and one of the first companies with successful digital transformation. Customers placed orders in advance and collected their products in-store. This move to online sales required website improvements to accommodate online payments, eCommerce front-ends, and inventory management capabilities. IKEA needed to implement digital technology to offer a seamless buying experience.
The IKEA Planning Studios represent another transformational move the company has made. This service is provided at IKEA micro-stores, whereby clients can access a 3D imaging tool to experiment with room settings. Customers use tablets to add things to their virtual shopping carts. The user’s items are then delivered to their residence. For customers who wish to leave IKEA with products in hand, conventional stores are the only option.
As you can tell, through digital technologies, IKEA is extending its business in multiple dimensions, all with the help of technology.
Starbucks started in 1971, many years before it was known that mobile ordering apps would change the way cafes around the world work. The company has become a standout in the IT centered digital era by continually concentrating on innovation. This includes its AI-powered personalized products and promotions, all controlled through its mobile app.
Even though the global COVID-19 pandemic caused a lot of lockdowns and restrictions, Starbucks was still able to improve its delivery and drive-thru services. So, during the first three months of the pandemic, it only lost 5% of its income.
With its film and media industries threatened by companies such as Amazon Prime and Netflix, Disney responded by developing its online streaming channels. This gave it the chance to make money right away from the fact that many people still love its old brands, like Pixar and Star Wars, and get its share of the global streaming audience.
Disney is one of those companies which have used digital transformation in other parts of their business, like their theme parks as well. The RFID-enabled Magic wristbands are used to track visitor data and serve as entry tickets, hotel cards, and a way to pay. Even for small decisions, the company mostly uses data and analytics to make sure that guests have a good time.
Companies changing their IT infrastructure or going through digital transformation need to know the plan and how to carry it out. Are you unsure where to begin and what options exist? Then get in touch with DEHA Vietnam JSC. Our goal is to help businesses like yours on their digital transformation journey. Check out our solutions.
Whether it’s cloud computing or our application development services, we ultimately help you leverage your business in the digital transformation age to benefit your customers, your people, and your business. We are happy to assist you every step of the way.