5 Digital Transformation Examples To Inspire Your Strategy in 2022
Explore five inspiring digital transformation examples. You’ll learn how successful brands transformed to get closer to their consumers.
Digital transformation is a must to survive in the new consumer landscape.
According to a recent survey by Cyara, 98% of business decision-makers recognize the importance of digital transformation for competitive advantage.
Digital transformation is much more than a new business process or software update. It’s a rethinking of how you deliver value in an increasingly connected world where consumers have higher expectations and more options than ever before.
But what does it look like in the real world?
In this post, we will explore five inspiring digital transformation examples.
You’ll learn how successful brands transformed to get closer to their consumers and remain competitive in the digital economy.
Top 5 Digital Transformation Case Studies
1. Best Buy
In 2012, consumer electronics retailer Best Buy looked like it was about to join Blockbuster as a casualty of disruption. Amazon and other online retailers were eating into Best Buy’s market share, and the stock price was plummeting.
Best Buy needed to digitally transform quickly. So in late 2012, it launched its “Renew Blue” digital transformation strategy. The goal was to enhance its presence on digital channels, increase e–commerce sales, and strengthen the customer experience.
The strategy was a success. Best Buy’s customer experience efforts increased its Net Promoter Score by 300 basis points within a year. In addition, its digital sales strategy boosted domestic e–commerce sales by 20%.
In an interview with CXO Talk, former Best Buy CEO Hubert Joly shared insights into how culture and communication were crucial to the digital transformation initiative.
The first three years of our journey, Renew Blue, it’s all about creating energy - how do you do this? It’s about co-creating the plan so that people own it. It’s about getting going. It’s about celebrating early wins. It’s about talking about the problems. If there are problems, let’s talk about them and let’s handle them together. It’s people first, people last, and creating energy.”Hubert Joly, Former CEO, Best Buy
But with consumer behavior and preferences evolving at a rapid pace, Best Buy couldn’t afford to sit back. Best Buy followed up the initial transformation strategy in 2017 with the “Best Buy 2020” strategy to rejuvenate customer support and expand into the smart home device market.
Best Buy is an excellent example of how digital transformation initiatives can help a legacy company stay competitive in a fast-moving consumer landscape.
In 2012, the Best Buy share price dropped to a low of $11.09. Two digital transformation strategies later, Best Buy’s share price currently sits at $103.5.
The key takeaway from this digital transformation example is that change is ongoing. To stay relevant, brands need to adopt a position of constant evolution. You need to measure and continually adapt your strategy.
Swedish furniture company IKEA is a digital transformation case study that highlights how new technologies can reinvigorate the customer experience and inspire new business models.
One of the biggest challenges that IKEA customers faced was assembling products at home. To help alleviate this customer pain point, IKEA acquired the online marketplace TaskRabbit. Shoppers could easily hire a TaskRabbit handyperson to deliver and assemble the IKEA products they had purchased.
IKEA also harnesses emerging technologies. For example, it was one of the first major brands to create an augmented reality (AR) application. Consumers can use the IKEA Place app to see how products would appear in their homes before making a purchase.
With the global pandemic impacting in-store sales, IKEA quickly adapted its strategy to the new dynamic. In a 2021 interview with Harvard Business Review, IKEA’s Chief Digital Officer Barbara Martin Coppola revealed insights into how the company had pivoted its digital strategy.
In practical terms, we’ve approximately tripled e-commerce levels in three years. We have transformed our stores to also act as fulfillment centers. With the pandemic and with the closure of approximately 75% of our stores, we ramped up and accelerated even more as people turned online and towards digital solutions. Things that would normally take years or months were carried out within days and weeks.”Barbara Martin Coppola, Chief Digital Officer, IKEA
Back in 2004, toy company LEGO was close to bankruptcy. The brand is one of the best examples of digital transformation and how a digital strategy can help a legacy company thrive.
The brand faced a significant challenge as children spent more time interacting with digital products and less time playing with analog toys like LEGO.
LEGO’s digital transformation strategy needed to modernize its offerings and change how it created value for its customers. It needed to stay relevant in the digital age.
The company prioritized creating a digital ecosystem around its products, incorporating movies, video games, and mobile applications.
LEGO launched crowdsourcing initiatives through the LEGO Ideas platform to get closer to its customers. Consumers can create and vote for their favorite designs to inspire new products.
Social media became a key channel for LEGO’s marketing team. The company focused on increasing its reach and fostering a strong community around the brand. On YouTube, the LEGO channel encouraged consumers to submit user-generated content. LEGO became the second most-watched brand on the platform.
LEGO has continued to adapt its digital transformation initiative over time and has earned the name “Apple of Toys.” In 2020, LEGO CEO Niels B. Christiansen spoke with CNBC about the company’s digital journey.
The entire Lego ecosystem is actually, I think, only at the beginning. So, it’s less about just creating an e-commerce store or an online store. It is really about this entire digital ecosystem and creating that future. And that’s a long-term journey, that’s a 10-year journey … And we’re just a couple of years into this,”Niels B. Christiansen, CEO, LEGO
Retail has been one of the hardest-hit sectors during the global pandemic. But it is also an industry where you can find the most successful digital transformation examples.
The Nike digital transformation case study is one of the most inspiring. Nike has transformed from a legacy consumer goods brand to a direct-to-consumer digital-first company. Mobile-first initiatives and the embracing of analytics and data have been a catalyst for change and growth.
Nike has a wide range of apps that consumers can access from their smartphones.
The strong digital ecosystem around its products empowers Nike with its insights to enhance the customer experience and better understand its buyer personas.
Nike uses this data for personalized content and offers but also to create new offerings and customizable products.
The range of apps expands beyond shopping to the actual usage of its products. For example, the Nike Run Club and Training Club apps help users track fitness goals and performance.
The brand switched up its digital transformation initiatives during the COVID-19 pandemic to increase its e–commerce performance. Before the pandemic, Nike set a goal of generating 30% of total revenue through e–commerce sales by 2023. The company had already exceeded its goal by September 2020.
Speaking to Box, Nike Chief Digital Information Officer Ratnakar Lavu revealed some of the digital transformation best practices that have driven change at the company.
The reality is given how fast business is moving today - if they’re disjointed in terms of how technology talks to each other, how employees can collaborate, all the way out into the consumer experience, you’re just not gonna be able to be competitive.”Ratnakar Lavu, Chief Digital Information Officer, Nike
With the impact of the COVID-9 pandemic, many organizations needed to embrace new digital transformation initiatives quickly. The German car manufacturer Audi is one of the best enterprise digital transformation examples in response to challenging circumstances.
Restrictions and changes in consumer behavior meant that the digital experience became key to sales. With 90% of Audi UK’s car sales starting online, the company wanted to enhance the customer experience from inquiry to purchase on digital channels.
Audi’s digital transformation initiatives focused on creating a stronger omnichannel experience for its customers. It needed to create more value at each touchpoint and build journeys for more precise buyer personas. Some customers were motivated by technology, while others were motivated by safety, driving experience, or other factors.
The new streamlined user experience helped customers find relevant information faster, answer fewer questions, and access more contact options.
The digital transformation initiative has been a big success. Audi UK achieved record numbers of sales inquiries, breaking its record 3x in June 2020.
Antony Roberts, Head of Digital at Audi UK, spoke to IBM about the digital transformation initiative.
In a matter of 12 months, our leads have grown exponentially, and our sales conversions have improved. We have gone from being poor in terms of data analytics to being incredibly rich. Through our collaboration with IBM, Audi UK now has the most effective cloud-based online platform across the entire VW Group, building a smarter experience for customers interacting with our brand.”Antony Roberts, Head of Digital, Audi UK
Keeping Pace With Digital Transformation
The speed of change in technology adoption and consumer behavior is accelerating. As we come out of the pandemic, the pressure on companies to evolve is greater than ever before.
It’s vital to keep track of trends and changes in the broader digital ecosystem. You need to be aware of the benchmarks in your industry and other sectors.
As the above digital business transformation examples show, you can grow and thrive if you are willing to move with change and act quickly.
Getting inspired, driving change, and being agile is key to gaining a competitive advantage.
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