7 Examples Of How Digital Transformation Impacted Business Performance (2023)

Digital transformation involves more than just updating technology and processes; it also involves revenue and shareholders. Many companies are hesitant to invest in digital transformation without knowing if the investment will pay off. However, when done strategically, digital transformation can improve stock prices and revenue in the long run. These seven major companies show that changes might not occur overnight, but investing in digital transformation can make a large financial impact over time.

7 Years At Best Buy

Seven years ago, most people thought Best Buy was dead. Even people within the company didn’t believe it could survive against Amazon. But a new CEO and a fresh digital perspective transformed the electronics store from a place to buy CDs to a digital leader in technology. Instead of just selling products, the brand aims to enrich people’s lives with technology.

MORE FOR YOU

Juan Soto Contract Rejection Could Make Orioles A Better Buy Than Nationals
Solar Eclipse 2022: Everything You Need To Know About Next Week’s Partial Eclipse Of The Sun
(Video) Digital Transformation | What is Digital Transformation | Digital Transformation 2021 | Simplilearn

To make that happen, Best Buy made major efforts to improve its delivery times. It introduced a price matching program and switched its focus to advising customers, not just selling to them. Best Buy employees offer in-home consultations on how customers can best use their devices, and the Geek Squad will now fix anything in a customer’s home for a flat annual fee.

Best Buy also transitioned from predominately mail marketing to an almost entirely digital strategy. It uses data to create customer profiles to provide customized recommendations and assistance.

Best Buy’s digital transformation hasn’t been without hiccups, but the results are starting to show. Best Buy started 2012 with a stock price of $23.70. As of July 2019, it sells for around $74. Early growth was rather slow, but prices have been steadily increasing over the last three years. Revenue actually decreased over that same timeframe, but has increased steadily in the last three years, jumping from around $40 billion late 2017 to its current $43 billion.

8 Years At Target

Target outsourced its web presence which they saw as ancillary in 2004, to Amazon. But in 2011 Target saw the writing on the wall and decided to take back its digital presence from Amazon and focus on it as a main piece of business. Target has been investing in its stores to create a new, remodeled design that blurs the line between e-commerce and physical stores. More than 400 stores have been remodeled and equipped with new technology in the last two years and have introduced online ordering and in-store pickup and curbside grocery pickup services. Many new aspects of the store follow the D2C model by selling exclusive items at pop-ups from popular brands. Target has also made strides with a consistently engaging social media presence that allows customers to discover new products and even buy them directly through social media.

(Video) 7 Ways To Scale Your Business Through Digital Transformation | The Great IT Professional

The ongoing effort to build a more holistic digital strategy allows for deeper customization. And it’s clearly paying off. Target has been seeing steady growth since its lowest point in 2006. Target stocks started 2017 around $73 per share and dropped down to around $53 when the initiatives ramped in the middle of the year, but now currently trade around $88, with growth holding steady in that period. Over the last two years, Target’s revenue has increased from around $70 billion to $76 billion. And it’s not done yet: Target plans to remodel another 600 stores by 2020, at a cost of $7 billion.

7 Years At Hasbro

At Hasbro, digital transformation is child’s play. The toy and game company made big investments in its digital and data strategies that paid off in a big way. In late 2012, Hasbro realized that instead of focusing on children, it really should be marketing to their parents, who are the people who actually make the purchases. The company leveraged data to create targeted marketing campaigns on multiple channels, including a larger push on social media. The data helped the company better understand its customers and recommend relevant toys and games to parents. Using data also helped Hasbro create a frictionless experience as it better understood customers and could proactively meet their needs.

Hasbro also harnessed the power of digital storytelling through social media and video content. It combined nostalgic brands with forward-thinking channels to connect with customers. Omnichannel marketing kept the products front of customers’ minds for improved relationships with the brand.

The transformation didn’t come cheap. Hasbro increased its ad spend by 1100%, but was able to increase sales by $1 billion. In 2016, it hit $5 billion in sales for the first time. In 2013, Hasbro stock sold for $36; today, it sells for $109. The growth was disrupted by industry changes and volatility, but the focus on digital marketing and data has helped Hasbro weather the storm.

2 Years At Home Depot

Once just a hardware store, The Home Depot today has a robust data and IT department to fuel its ongoing digital transformation. In late 2017, the company said it would invest more than $11 billion over the next three years to improve and combine its physical and online shopping experiences. It also set out to hire 1,000 IT and user experience professionals. Instead of searching up and down dusty aisles, Home Depot is moving towards contractors and DIYers shopping online and picking up in store. The goal is to create a seamless experience across channels and to provide the best products and resources to customers. The investment has helped build up the back-end and distribution channels.

Home Depot has also improved its use of data to better understand customers. By tracking local trends, it can ensure the right items are in stock without losing money on excess inventory. It also added visual and voice search to its app to give customers more options. Instead of being overwhelmed by products, customers can easily find the right items and get help knowing how to make home repairs or complete a project.

(Video) 7 Pillars of a Successful Digital Transformation

The blurring between online and in store is working. Home Depot’s stock has improved from $135 in early 2017 to $215 today. In the same time, revenue has grown from $93.3 billion to nearly $110 billion.

5 Years At Microsoft

Microsoft has long been known for its top products, Windows and Office suite. But lagging stock prices and increased competition from companies like Apple and Amazon led the company to re-think its strategy and create a more forward-focused cloud business.

When CEO Satya Nadella took over in 2014, the company began a shift towards its cloud networking systems. It moved the focus away from traditional software to a more fluid cloud system for both personal and enterprise use. Instead of shying away from partnerships like it had in the past, Microsoft changed course to build relationships with other software and technology companies. Public view also changed, as Microsoft went from being seen as an outdated or stagnant company to a forward-thinking cloud solution. As it proves itself with more deals and growth, Microsoft’s star continues to rise.

In early 2014, right before Microsoft’s transformation began, stocks were selling around $38 per share. Today, they’re worth around $136. Over that same period, revenue increased from $93.5 billion to $122 billion In 2019, Microsoft became just the third company to get a $1 trillion market cap, notably before its competitor Google. That accomplishment wasn’t even fathomable just a few years ago.

2 Years At Nike

Although a staple in shoes and athletic clothing, Nike started looking sluggish and outdate a few years ago. The company switched its mindset and underwent an ongoing digital transformation to reinvent its brand and supply chain.

Instead of going through middlemen, Nike improved its connection with customers through membership opportunities, stronger digital marketing and powerful data analytics. Instead of selling through other vendors, Nike started selling more directly to customers and partnered with Amazon for an updated e-commerce strategy. An end-to-end focus on consumer data better allows Nike to connect with customers and recommend the right products. It also opened concept stores and improved its online and app experience.

(Video) Top Digital Transformation KPIs and Performance Measures [How to Measure Transformation Results]

The improved digital focus gives Nike a faster product development cycle, which allows it to get new products to market quickly, respond to and set trends and control how many items are produced. A large part of Nike’s brand is the scarcity of some of its shoes and the coolness factor that creates.

Nike’s digital transformation is ongoing as it pushes for innovative ways to connect with customers and get a leg up on the competition. At the beginning of 2017, its stock price was $52; it’s now up to nearly $88. In that same time, revenue increased from $33.5 billion to $39.1 billion.

3 Years At Honeywell

As it aims to help other companies with their own digital transformations, Honeywell also made major changes in itself. A few years ago, it streamlined many of its industrial end markets by cutting them down from eight to six. The goal was to focus on quality over quantity and leveraging digital solutions. Honeywell uses data to determine the best spinoffs and movements for its company.

Along with its own digital transformation, Honeywell uses data to help its customers. In 2016 Honeywell started its own internal digital transformation group. It introduced new technologies, including more IoT-connected and data-centric devices and offerings. As it reinvents industrial process control and offers more technology solutions for its customers, Honeywell also shows off its renewed focus on customer data and internal solutions. Streamlining internal processes and digitizing as much as possible allows the company to build quality relationships and products.

Since its renewed effort began about four years ago, Honeywell’s stock has increased from $95 per share to $174. Its revenue grew from $40.3 billion to a peak of nearly $43 billion in mid-2018, but it has since dropped back to $38.6 billion. Digital transformation is an ongoing process.

A commitment to digital transformation and the resources to back it up can turn lagging stocks into industry leaders. Although there are risks involved, these companies show that finding digital solutions and processes can lead to long-term financial gains.

Blake Morgan is a customer experience futurist, keynote speaker and the author of two books including The Customer Of The Future. Sign up for her newsletter here.

(Video) THE DIGITAL TRANSFORMATION (The Role of Adaptable Digital Transformation Framework)

A commitment to digital transformation and the resources to back it up can turn lagging stocks into industry leaders. Although there are risks involved, these companies show that finding digital solutions and processes can lead to long-term financial gains.

FAQs

What is the impact of digital transformation on business? ›

Digital transformation changes companies from within, influencing organizational structures and management strategies, as it also influences externally in their interaction with customers, partners, and competitors.

What are some examples of digital transformation? ›

Examples of digital transformation are:
  • Transitioning into a remote-first workspace.
  • Using design thinking to analyze and optimize the customer journey.
  • Implementing automated customer service.
  • Using AI-driven insights to improve sales efficiency.
  • Automating employee performance management.
29 Apr 2022

What are the 5 7 key considerations Organisations need to follow when devising their digital transformation strategy? ›

Broadly, there are seven key components of an effective digital transformation strategy:
  • Strategy and Leadership.
  • Culture Change and Communication.
  • Optimizing Processes.
  • Data.
  • Technologies.
  • Team Structure.
  • Results.

What are 5 examples of digital communication? ›

These include email, phone calls, video conferencing, and many types of instant messaging like SMS and web chats. Even blogs, podcasts, and videos are considered forms of digital communication.

What are some digital examples? ›

Examples of digital media include software, digital images, digital video, video games, web pages and websites, social media, digital data and databases, digital audio such as MP3, electronic documents and electronic books.

What are 5 examples of digital citizenship? ›

How can you be a good digital citizen?
  • Think before you post. ...
  • Avoid oversharing. ...
  • Protect your privacy. ...
  • Use more than one search engine. ...
  • Protect and change your passwords regularly. ...
  • Check where your information comes from. ...
  • Report illegal activity and poor behavior. ...
  • The Center for Media and Information Literacy.
6 Oct 2020

How could digital transformation make the business more successful? ›

Digital transformation creates a system for gathering the right data and incorporating it fully for business intelligence at a higher level. It creates a way that different functional units within an organization can translate raw data into insights across various touchpoints.

What are the three benefits of digital transformation? ›

What are the Key Benefits of Digital Transformation?
  • Increases Customer Satisfaction. ...
  • Drives Data-Based Insights. ...
  • Enables Software Monetization. ...
  • Enables High-Quality User Experience. ...
  • Encourages Collaboration & Improves Communication. ...
  • Increases Agility. ...
  • Limits Human Error. ...
  • Encourages an Environment of Employee Excellence.

What are the top 3 challenges your company has overcome using digitization? ›

Biggest Barriers To Digital Transformation and How to Overcome Them
  • Employee Pushback.
  • Lack of Expertise to Lead Digitization Initiatives.
  • Organizational Structure.
  • Lack of Overall Digitization Strategy.
  • Limited Budget.
21 Oct 2022

What are the 5 most important things for someone leading a digital transformation project? ›

Cheema says entrepreneurs should follow these five steps to lead a digital transformation.
...
How to lead a digital transformation in your business
  • Prepare a climate for change. ...
  • Create an action plan. ...
  • Establish a change team. ...
  • Engage and communicate. ...
  • Sustain a change culture.

What are four focus areas of successful digital transformation to unlock company's value? ›

It's about technology, data, process, and organizational change.

What are the key pillars of digital transformation? ›

For that reason, business leaders must understand the nuances of business transformation and digital transformation, and become familiar with the 3 pillars of digital transformation: people, processes, and technology.

What is a successful digital transformation? ›

It simply means, the ability to be efficient, rapid and able to adapt in order to stay ahead of the pack using design and technology as enablers. All processes, systems and organisational structures that act against such intentions, will play a huge part in why some digital transformation initiatives will fail.

What are the 7 examples of communication? ›

According to the seven Cs, communication needs to be: clear, concise, concrete, correct, coherent, complete and courteous. In this article, we look at each of the 7 Cs of Communication, and we'll illustrate each element with both good and bad examples.

What are the 7 channels of communication? ›

7 primary channels of communication in the workplace
  • In person. In-person conversations are one of the most effective channels of communication in the workplace. ...
  • Documents. ...
  • Emails. ...
  • Instant messaging platforms. ...
  • Videoconference. ...
  • Phone calls. ...
  • Social media.

What is technology give 5 examples? ›

Whether it's practical (like washing machines, tumble dryers, refrigerators, cars, flooring materials, windows, or door handles) or for leisure (like televisions, Blu-ray players, games consoles, reclining chairs, or toys), all these things are examples of technology.

What are the 9 digital citizenship? ›

Commerce: electronic buying and selling of goods. Communication: electronic exchange of information. Literacy: process of teaching and learning about technology and the use of technology. Etiquette: electronic standards of conduct or procedure. Law: electronic responsibility for actions and deeds.

What are the 7 ways to promote digital citizenship? ›

7 Ways to promote digital citizenship skills in your classroom
  1. Emphasize the importance of online etiquette. ...
  2. Teach students to protect their privacy. ...
  3. Help students stay safe online. ...
  4. Promote media literacy in your classroom. ...
  5. Teach students to protect creative rights. ...
  6. Show them their digital footprint.
21 Dec 2020

What are the 9 things that a good digital citizen does? ›

Exploring the 9 Elements of Digital Citizenship
  • Digital access.
  • Digital etiquette.
  • Digital commerce.
  • Digital rights and responsibilities.
  • Digital literacy.
  • Digital law.
  • Digital communication.
  • Digital health and wellness.
11 Jul 2019

What are the benefits of digitalization in business? ›

Here are the top benefits of digitalization that you shouldn't ignore:
  • Saving costs is topmost for businesses. ...
  • Customer is the king and customer service is queen. ...
  • Be where your customer is to grow your business. ...
  • Data is the new oil and will fuel strategic decision making.
6 Apr 2022

How digital transformation is helping small businesses? ›

And, for small businesses, an embrace of digital technology mirrors a worldwide trend of digital transformation. As recent studies have shown, companies that meet the ever-evolving digital needs of their customers report increased productivity, greater customer satisfaction, and improved fiscal agility.

How does digital transformation increase productivity? ›

Going Digital Can Improve Productivity & Collaboration

In the context of digital transformation, efficiency is measured in terms of digitization and automation, both of which can save significant amounts of time by allowing workers to focus on higher-value tasks.

What top 3 opportunities can digital enable in your business? ›

Companies can improve their competitiveness, increase revenue, and become more efficient by embracing digital technologies.

What is the impact of digital transformation? ›

Technology paired with an effective business transformation strategy and skilled employees can help: Improve business agility and your response to market changes. Increase team collaboration through effective communication technologies. Achieve higher productivity levels by introducing AI and automation.

Why is digital transformation essential for business growth? ›

Digital transformation is essential for business growth because it helps organizations keep up with the latest technology trends, reach new markets, and improve operational efficiency.

Which are the 5 core areas that are impacting marketing transformation? ›

Analysis of your current situation means identifying the existing status of the five key elements that are integral to any technology-driven marketing transformation project: process, people, data, technology and culture. Let's look at each of those elements.

What are three 3 examples of problems with technology that you would like to have solved? ›

Current Major Technology Issues
  • Need For Strong Digital Conference Platforms.
  • Remote Internet Speed and Connections.
  • Phishing and Data Privacy Issues.
  • Deepfake Content.
  • Too Much Focus on Automation.
  • Data Mixups Due to AI Implementation.
  • Poor User Experience.
28 Jul 2021

What digital transformation means for business? ›

Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.

Why is digital transformation essential for business growth? ›

Digital transformation is essential for business growth because it helps organizations keep up with the latest technology trends, reach new markets, and improve operational efficiency.

What are the benefits of business transformation? ›

Once you have more visibility into your systems and business processes, you can implement better management processes. This also allows you to start automating routine tasks that take up too much staff time–preventing them from moving forward on key, value-generating projects.

What top 3 opportunities can digital enable in your business? ›

Companies can improve their competitiveness, increase revenue, and become more efficient by embracing digital technologies.

How does digital transformation improve productivity? ›

The advantages of digital transformation in organizations are enormous. The ability to boost your employees' productivity by leveraging the application of digital technology in automating manual and repetitive tasks that waste a lot of time from your most creative staff is the most significant.

What are the three 3 main components of digital transformation? ›

The three major building blocks with which companies are digitally transforming customer experience are customer understanding, top-line growth and customer touch points.
  • Customer Understanding. ...
  • Top-Line Growth. ...
  • Customer Touch Points. ...
  • Process Digitization. ...
  • Worker Enablement. ...
  • Performance Management.

What is the impact of digital transformation? ›

Digital transformation creates a system for gathering the right data and incorporating it fully for business intelligence at a higher level. It creates a way that different functional units within an organization can translate raw data into insights across various touchpoints.

What is the importance of digital technology in business? ›

Technology helps increase the efficiency of systems, products and services. It helps track and streamline processes, maintain data flow and manage contacts and employee records. In fact, this increased efficiency in operation helps reduce costs as well as enable the business to grow rapidly.

What is the main purpose of digital transformation? ›

Why digitally transform? Common drivers of digital transformation include reducing costs, improving productivity, providing a better customer experience, and ensuring governance and compliance. However, by far the biggest motivation for this change in the way companies operate is the need to survive.

Videos

1. 9 Critical Digital Transformation Challenges (+How to Overcome Them)
(whatfix)
2. Digital Transformation Strategy
(Ionology)
3. Digital Transformation After the Pandemic
(MITSMR)
4. Top 10 Change Impacts During Digital Transformation [Change Management Strategies and Tactics]
(Eric Kimberling - Digital Transformation)
5. Çağlayan Arkan presents the Art of Possible: Breaking free of scale purgatory in manufacturing
(Microsoft Cloud)
6. Crisis Transforms Digital Transformation
(Comcast Business)
Top Articles
Latest Posts
Article information

Author: Jamar Nader

Last Updated: 01/17/2023

Views: 5833

Rating: 4.4 / 5 (55 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Jamar Nader

Birthday: 1995-02-28

Address: Apt. 536 6162 Reichel Greens, Port Zackaryside, CT 22682-9804

Phone: +9958384818317

Job: IT Representative

Hobby: Scrapbooking, Hiking, Hunting, Kite flying, Blacksmithing, Video gaming, Foraging

Introduction: My name is Jamar Nader, I am a fine, shiny, colorful, bright, nice, perfect, curious person who loves writing and wants to share my knowledge and understanding with you.