Digital Transformation is more than just moving to digital systems; it’s changing how different organizations work. The process involves transforming information and data, technology, people, and procedures to add value in a digital world, But why should organizations focus on real-life IT solutions? What can they learn from the companies that have undergone the digital transformation? Let’s find out!
Why the Need for Digital Transformation?
The world constantly changes due to digital advancements, environmental changes, and political shifts. Our ability to adapt is quite essential. Since the internet was launched, our lives have changed dramatically, and we continue to discover new ways to communicate and connect. The growing connection blurs the lines between the digital and real world, with one action affecting the other. We are shifting from the analogue to the digital world, and digital transformation helps us smoothly make this shift.
Digital transformation offers multiple benefits, including improved productivity, higher efficiency, and better market opportunities. But most importantly, it helps us understand the world better and connect seamlessly.
Benefits of Digital Transformation
Before we begin telling you about mind-blowing examples of organizations, here are some benefits of why you must choose this pathway:
- Enhanced efficiency: Digital tools and automation speed processes and reduce the need for manual work, lowering costs and boosting efficiency.
- Better Customer Experience: Ashton Solutions’ digital solutions allow personalized interactions and quicker responses, which makes customers happier.
- Data-Driven Decision-Making: Access to detailed data and analytics enables better decision-making, leading to intelligent business choices.
- Innovative Opportunities: Embracing digital transformation creates an environment that encourages innovation and helps develop new services and products.
- Growth: Digital technologies offer growth solutions, allowing different businesses to grow and enter new markets very efficiently.
- Enhancing Collaboration: Digital tools make it easy for stakeholders and teams to collaborate, no matter where they are, improving productivity and teamwork.
- Added Security Measures: In the modern world, digital transformations include extra security protocols to protect data from breaches and cyber threats.
Digital transformations help organizations evolve, stay competitive, and succeed in a digitally focused world.
Real-Life Digital Transformations That Transformed Businesses
In 2024, organizations and businesses across various sectors will continue implementing digital transformation strategies to remain on top of their game in the evolving marketplace. Here are some real-world examples to help you see the difference digital transformations can make:
1. The Transformation of Netflix
Netflix is the best place to keep up with movies and TV series, especially the popular ones that people can’t stop raving about. Their mission is to entertain people with movies, documentaries, TV shows, and reality TV. The company has a total value of $149 Billion, and most of its success can be credited to its ability to anticipate what’s coming next and then transform.
To improve customer experience and satisfaction, Netflix CEO Reed Hastings approached Blockbuster with a fantastic offer. At that time, Blockbuster was a popular video rental service, but by 2007, technology had become more advanced, and people had started becoming more comfortable using it. Netflix used their online viewing system to address different issues that customers faced with Blockbuster, such as late fees. This transformation allowed Netflix to offer their customers new value, changing how they bought and watched movies.
2. Nike’s Transformation with the SNKRS App
Nike is a leading sports footwear brand now focusing on mobile phones. Using machine learning technology and algorithms to offer advanced features, one of their applications helps different users choose the right shoe by scanning their feet. It creates a detailed map to find the perfect fit, allowing it to create a detailed map for people. This application also provided Nike with valuable data for future designs.
Nike also has a loyalty program, NIKE+, which rewards active members and has boosted sales in Japan. The SNKRS app also saw a 100% increase in sales. Nike has also digitized 6,000 footwear materials, helping its design teams respond instantly to market demands. This innovation has changed its operations and improved efficiency.
3. Starbucks Using AI Technology to Enhance Customer Experience and Satisfaction
Starbucks is one of the most famous coffee chains, with about 32,000 stores in 80 countries. It is well-known among coffee lovers. In 2017, Starbucks understood the benefits of digital transformation and launched its Digital flywheel. This initiative focused on improving payments and provided personalization, rewards, and ordering based on customer feedback. Cloud-based platforms helped Starbucks offer tips and take orders while managing production and inventory more efficiently. Starbucks also integrated AI into its application to provide rewards based on each customer’s preferences.
According to Starbucks CEO Howard Schultz, the company aims to adopt new technologies, which is why Starbucks remains the most famous coffee brand.
4. Adobe’s Shift to the Digital World
Adobe was founded in 1982 and is popularly known for its products, such as Photoshop, Adobe Acrobat Reader, and Illustrator. The company has sold boxed software under the name Adobe Systems. During the 2008 crisis, the company shifted from selling licenses to subscription-based access. They have redefined their services based on three cloud-based solutions:
- Document Cloud
- Creative Cloud
- Experience Cloud
This has transformed it into a cloud company that offers SaaS. Adobe also acquired Magento and the web analytics company Omniture as part of its digital transformation journey. Recognizing the importance of having the best talent, Adobe created a culture that focused on employees and provided branding and benefits. They have also started operating with a data-driven model to monitor the company’s health.
Their transformation included a new SaaS model, new technology, which is cloud, a new HR strategy, and data-driven opportunities. Adobe’s example shows how digital transformation can give businesses a competitive advantage, and it requires involvement from the organization, defining how everything is done.
5. Airbnb
Hotel costs can sometimes limit people’s exploration of different places. But imagine a world without this problem! Airbnbs have transformed the digital world by challenging different norms. In just a few clicks, travelers can find reasonable accommodations hosted by locals who share their homes.
Airbnb has a user-friendly interface and is quite transparent. See the place and view the reviews to learn how people who stayed previously felt about it. You can also get virtual tours inside tips and build connections with people from different parts of the world. Airbnb also has a very secure mode of payment, which is ideal for hosts and guests. Once you decide on your dates, you can proceed by paying the dues and getting your accommodation sorted. From cottages near the forests to apartments near the city, there is something for everyone on Airbnb. The transformation made my Airbnb not just digital but it also celebrates an adventure of diverse experiences.
6. Amazon Changing Retail with Data and Automation
Imagine a bookstore evolving into a digital giant that delivers anything you wish to buy with just a single click. That’s precisely what Amazon is; starting with books, it has become the biggest marketplace worldwide. Amazon uses the power of data; for example, analytics help it better understand customers and AI-driven recommendations improve its sales as it provides customized experiences.
Its impact goes beyond the screen! They have warehouses, which are managed through algorithms ensuring fast deliveries to all the customers. Their supply chain optimization keeps the operations smooth and running. Through automation, Amazon drives their revolution. Robots navigate through the aisles in the warehouses, and drones are used to prepare items for delivery, making doorstep delivery into a futuristic reality. The customer experience offered by Amazon is of gold standard. They provide instant returns and seamless payments and make the shopping experience an enjoyable experience. They make sure customers keep coming back for more! In today’s digital age, Amazon isn’t just a retailer; it redefines convenience and speed and makes shopping smooth.
Digital Transformation through IT and Its ROI
As a business, one needs to understand the return on investment before committing to digital transformation. Here are some positive outcomes of digital transformation:
- Increased revenue
- Reducing costs as most of the tasks become automated
- Digital tools can enhance customer experiences, bringing positive word-of-mouth
- Collection and analyzing large amounts of data provides valuable insights leading to making smart decisions
Measuring ROI
To measure the ROI, we use the following key metrics for tracking:
- Cost savings
- Sales growth
- Net Promoter Score
- Customer retention rate
- Customer acquisition cost
These help assess the effectiveness of digital transformation efforts and identify areas that need improvement.
Bottom Line
Digital Transformation is crucial, especially in the modern age. As technology advances, organizations benefit greatly if they adapt to modern trends such as cloud computing, AI, and big data. Using these technologies helps businesses automate their processes, increase efficiency, improve customer service, and make better decisions.
We encourage all companies to embrace digital transformation to gain a competitive edge, become successful, and reach their goals. Modern-day trends are here to stay, and getting acquainted with them is best. Choose Ashton Solutions; we ensure you get tailored Business IT, which adds to your customer experience and business delivery. Let our professionals guide you to a successful digital transformation journey!
