It has become very difficult to contest the power of digital transformation with such a wealth of current examples.
With this being the case, digital transformation has forced itself as a key conversation for any person or organisation. In doing so, it creates a purposeful target against which one can review business practices.
This overwhelming wave has led to the various statistics about successful examples of digital transformation, and compare them to those who have neglected this essential effort.
Below you will see that the digital transformation examples we note are from a variety of industries. Through doing so, we can debunk the views held by some - that it “doesn't apply to my industry”.
Change is vertically agnostic, so jump on board.
What is Digital Transformation?
Digital transformation is described in terms such as “profound”, “essential” and “whole scale change”. But in reality, it is incorrectly labelled, and regrettably only considered in silos.
A silo that may or may not be reviewed in the next quarterly meeting.
This ‘check box approach’ will not impact anything - what really needs to happen is the process of applying a ‘transformative attitude’ to every company asset.
Rather than saying “let’s transform”, people should be looking at the dynamics of the business and thinking, “where can I take this”. It is through heavily critical thinking and not just applying ‘digital’ to something with false expectation, that transforms.
How much will transform – it depends on how critical you are.
Where to Start?
It may seem obvious, but the ability to track what has taken place in order to reach this point, knowing which events have made what impact, is valuable data.
Then there is the future: how does a company attempt to not only understand, but embrace the future? Rather than try and explain, we think this video from Microsoft does an excellent job.
The title of ‘Microsoft’s vision for data’ seems correct to us.
3 industry-specific Examples of Digital Transformation
As previously noted, transformation transcends (bit of a tongue twister) companies of all sizes and types.
Here are some of the various industries that serve as a prime example of digital transformation. In each vertical you will be able to see a transformer and laggard - you can make the judgements thereafter.
The entertainment industry has provided many examples of digital transformation, as technology has been at the core of its distribution.
It has continually been a battleground, with various winners and losers. Here are two of the most common examples.
Blockbuster: Starting in 1985, Blockbuster was a powerhouse in the world of rentals. At its peak in had over 8,000 stores.
However, they failed to adapt to changing customer wants and with limited commercial data they closed operations in 2013.
Netflix: The failure of Blockbuster was made clearer by the agility of Netflix.
With over $6 Bn in revenue , they have made informed decisions through data and have continually made risks to adapt to customer and technology habits.
Recent moves: Netflix is moving huge strides in the amount of mobile data needed to view its content. This essential investment could enable them to leading in developing regions.
53% of companies have a comprehensive transformation roadmap that includes business capabilities and processes, as well as digital and IT components. PWC, 2015
Should you be a more visual person, here is a summary of the other two example in a graphical form.
Now that you have the high level view, here are the remaining industries with some up-to date information.
2. Fast Food
Fast good like the other two examples sits within a larger context when it comes to transforming:
Convenience is such a phenomenal advantages to organisation that they can actually charge a great deal for the service. These two food related organisations demonstrate different strategies of success.
The first acting attempts to achieve convenience through their buying process - how quick and easily you can go and buy from that at store.
The later has enabled a new platform to which a far different form for infrastructure is need.
McDonalds: McDonalds is one of the most recognised brands in the world due to high levels of customer happiness . They have made big steps to apply digital transformation to their experiences. Such as their new purchasing screens, to improve speed.
Deliveroo: Whether it be Deliveroo, UberEATS or another startup, the world of fast food is getting faster. Through utilising data, industries are being formed overnight. With continuous competition these companies are fighting for greater experiences.
85% enterprise decision makers feel they have a time-frame of two years to make significant in roads on their digital transformations, or they will suffer financially and fall behind their competitors. Progress, 2016
Lastly we have the great impacts of the retail industry.
Once again we are faced with two very different but successful models in terms of becoming a shining example of digital transformation.
However, as can be seen through various giants of industries, and with overwhelming cash resources, they hedge bets in related industries to hold greater security.
Walmart:With 2.3 Mn employees, Walmart know a thing or two about people. With that said they appear to be prioritising the extraction of client data.
They realised that in order to continue succeeding they will need to transform how and what they sell. Such a remarkable U-Turn has enabled them to maintain a thorough catalogue, while providing even more value to their customers.
Amazon:Amazon have become a modern story about the value in consumer data; whether that be through understanding additional purchases; how people read [via Kindle], in order to better sell books; or even drones.
Amazon lets data dictate their choices.
Recent moves: Amazon has really enabled the core of their business to fund some incredibly impactful recent events.
The Amazon Echo has sold in vast quantities, in addition, their very recent acquisition of Whole Foods demonstrates their eagerness to own more of their supply-chain, and in doing so, have the ability to experiment, and advance their process.
A great example of this is their imminent movement in drone delivery for more people.
Digital disruptor's will displace 4 out of 10 incumbent companies over the next five years. Digital Vortex, 2015
What do these Digital Transformation Examples mean?
This new era of digital transformation has given organisations the opportunity to change their industry. If you have a mind-set beyond purely how your business works, then the relevant pieces will come together.