Many businesses are making the switch to digital transformation due to many advantages and benefits that come with it. We've arrived at a decision point when companies must either embrace digital change or face extinction.
Digital transformation is a lot more than just keeping up with the latest in technology and business operations. Strategic investment in innovation can lead to higher revenue and improved stock value.
Some businesses, on the other hand, may find it challenging to maintain a firm grip on this new technology. So, what are the best practices for putting digital transformation strategy ideas into practice?
WHY GOING DIGITAL IS IMPORTANT FOR BUSINESS?
When it comes to company transformation, digital business strategies are considered as a way to improve the way firms connect with their customers and employees while also streamlining operations and providing an exceptional customer experience.
The cost of not making enough preparations in that area is extremely high. Lack of a digital transformation strategy is a major roadblock to becoming a digitally mature firm. It was cited as the biggest obstacle to digital maturity by 50% of respondents.
People's lives are being improved by technology, but it is also making work easier in a variety of sectors. To remain competitive in the future, organizations must undergo digital transformation to keep up with changing client needs.
Due to the ongoing changes brought on by technological advancements, it gives businesses an advantage. Proper management of the digital turnaround allows firms to gain operational and productivity advantages.
Digital transformation is no longer a choice; companies must leave their comfort zones, reinvent themselves, and compete in an increasingly technologically advanced environment.
EXAMPLES OF SUCCESSFUL DIGITAL TRANSFORMATION STRATEGY
Strategic investment in innovation can lead to higher revenue and improved stock value. Even while it isn't a quick fix, it has helped numerous well-known companies flourish. Here are 5 digital strategy examples of a successful digital transformation for business, along with some critical takeaways from each.
1. The New York Times
From 2015 to 2020, digital newspaper revenue is expected to grow at a 9.8% annual rate, whereas non-digital newspaper revenue will shrink at a 3% annual rate during the same time period.
One newspaper, on the other hand, has thrived despite the disruptions. The New York Times, unlike many incumbents, has steadily adapted over the last five years and is now well-positioned to compete in the digital world.
In 2013, the New York Times established a well-designed paywall and subscription model for their online content, allowing the company to continue to provide the same high-quality journalism and material their readers expect while earning income.
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There's no evidence to suggest otherwise. According to their January 2017 report, The Times raked in about $500 million in entirely digital revenue last year, which is significantly more than the digital revenues reported by several other top magazines (including BuzzFeed, The Guardian, and The Washington Post) combined.
Key takeaway:
Get a head start! The New York Times shifted their focus after realizing that a large portion of their readership was moving online. Knowing where and how people spend their time and money allows you to anticipate trends and make changes to meet customer demand.
In order to provide better solutions and stand out online, you must understand the digital technological landscape as well as how your customers utilize your product.
2. Target
Target also worked hard to boost their online visibility. They upgraded their stores' technology, offered online ordering, and boosted their social media, web presence, and online sales to gain market share.
New store design and increased focus on direct-to-customer sales have made it easier for customers to discover their new items, obtain quicker access to their well-known brands, and buy them online or directly via social media.
Additionally, they developed a digital strategy that is more successful due to the fact that it allows for greater personalization.
What you did not know is that this was an Eight-Year Process. Stock value has increased from a low of $53 to today's high of $88 since the company began its retail digital transformation in 2006. Target's sales have grown by roughly $6 billion since going digital.
Key takeaway:
Know your customers! Nothing beats serving the right customers with their right needs. This requires exclusive research and analyzing customer behavior in every single stage of their buying process: From the devices they use, how they interact with the store to the way they choose their payment methods,...
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Knowing exactly the pain points and difficulties, companies are able to make it possible for even greater sales and income thanks to an easier and quicker responsive online interaction as well as the satisfaction the company provides to its users.
3. Netflix
Netflix currently has a remarkable 117.6 million international customers spread over nearly 200 countries throughout the globe.
Three factors have largely contributed to this achievement's success. Firstly, as Netflix made the switch to being predominantly a streaming service, streaming capabilities advanced faster than predicted. Secondly, thanks to the widespread use of smartphones and tablets, Netflix has been made readily available to its users at all times. Finally, Netflix's value proposition was considerably boosted by the shift in viewing preferences caused by the first two factors.
Key takeaway:
Behold: Netflix changed the way we look at programming forever. Instead of simply using a few digital tactics, they decided to alter the entire system.
According to Harvard Business Review, successful businesses, particularly those with a creative digital strategy, are far less concerned with cost efficiency and much more concerned with producing new goods or new customers.
Look beyond your competitors: Netflix's pioneering spirit was a major factor in its success. However, in the digital age, it is the first movers who reap the benefit.
4. Nike - Just did it
Another successful digital strategy example is Nike, a global leader in athletic shoes and clothing, who saw themselves as slow and out of touch. Nike's top executives acted without hesitation.
The company's thinking, supply chain, and brand have all undergone digital transformation as a result of which it is now better equipped to engage with its customers.
The company shifted its focus to better data analytics, changed its e-commerce strategy, and developed more effective digital marketing efforts. Using digital consumer data more efficiently and effectively prompted Nike to develop concept stores, increase membership options, and enhance the online and app-based customer experience.
Key takeaway:
Stronger digital marketing, more powerful data analytics, a direct emphasis on consumers and an improved e-commerce strategy are required that leads to a stunning change of a firm. Consequently, product development cycles are shorter, new trends are responded to and created faster.
5. Alibaba
Alibaba, a Chinese e-commerce powerhouse, is a good successful digital strategy example. The Chinese government's support, funding, and dedication are allowing them to make significant progress in AI. China aims to supplant the United States as the world's technological leader by 2030 with a $1 trillion AI sector.
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With features like smart product search and recommendation, customer care chatbots, Alibaba is also utilizing AI technology. As a result, they've been able to provide customers with more personalized shopping experiences and better optimize the buying process for them by anticipating their needs at any given time.
Key takeaway:
Define your strategies: A clear corporate aim might mean the difference between successfully navigating the disruption and wasting money on a fruitless endeavor when it comes to digital transformation strategy.
Think big: Alibaba has poured money into seven research laboratories dedicated to artificial intelligence (AI), machine learning (ML), network security (NS), and more. Though no firm has the resources of Alibaba, thinking big (as large as your organization allows) increases the likelihood of seeing transformative effects from your digital strategy. Often, organizations that take things easy don't get the results they want.
CONCLUSION
These are just a few examples of business innovation that have enabled businesses to use the power of digital transformation by simply updating their technology and procedures.
Want to leverage your business transformation just like them? We are here to give you the advice and direction just what you need in leading you on the right path of transforming your business into a more powerful one. Contact us now!
