4.2.3 Digital Transformation Examples
As the customer expectations are growing, and every business is trying hard to keep up with them. Today it is far easier than ever before for consumers to explore alternatives to meet their needs. That is why each company has to make extra efforts to ensure that their customers stay with them. It will be possible only if the company digitally transforms itself to cater to its customer expectations. Every industry needs to adopt this new digital world by moving towards a digital transformation. There are few examples of big companies that successfully underwent a digital transformation.
1 Domino’s: It is a very common and best example of user-centered process design which utilizes the power of operations. Technology running for pizza tracker system lets the customers to get into the operational process of the company. It allows users to know exactly which stage in the operation process the pizza is. Company ensures customers a guarantee of 30-minute deliveries and an app to track if the order is being placed, in queue, pizza is being made or in route to the user which helps in increasing user satisfaction. Other examples are:
2 Walmart: They have to reinvent the approach to the customer. They did it so successfully, that Harvard Business Review named the company ‘the digital winner’.
3 Disney: They went fully digital when they introduced RFID technology used in the parks covering various stages/processes like identifying all the guest’s tickets or passes which is further shared with the connected wireless system to make the visit more convenient for the visitors.
4 McDermott International: Oil and gas industry requires heavy machinery and hence, transformation is taking place in the industry. Company is creating computerized model for the facilities of oil and gas which are made available for the clients. This model is also known as a digital-twin. The company predicts a hike of 15% in operational margins with the use of digital-twin approach for major fields such as predictive maintenance. Digital-twin refers to a digital replica of potential and actual physical assets, processes, people, places, systems and devices which can be used for different purposes. As per the belief of Gartner, near about 50% of the organizations will adopt the digital-twin approach by the year 2021.
5 Rolls Royce’s R² Data Labs: They are using the concepts like data analytics, artificial intelligence, and machine learning for creating variety of innovative services. The team of R² Data Labs, including various data architects, managers, engineers and scientists has helped the firm to deliver around £250 million through the activities of engine-health monitoring in 12 months [14].
6 Logistics: The Company dealing with logistics like “United Parcel Service (UPS)” is using data analytics and keeping an eye on major business operations. Company is utilizing the strength of data analytics and artificial intelligence on real time data to assist their employees for making improved decisions. UPS has just introduced their Chatbot which uses artificial intelligence for helping their customers to find charges and tracking details.
7 Blood and Transplant: In a public sector like National Health Service (NHS) is attempting for the implementation of digital transformation from last two years. Various trials has been completed which also includes the utilization of predictive analysis and managing the waiting time for an organ. Making the organs available for the patient is the major concern for the healthcare [15].
8 General Electric: It’s a reality that not all the strategies related to digital transformation are similar according to its success rate. The company made strong efforts for the integration of the traditional system with the new system designed on software basis. If we talk about the digital transformation, company released the product behind the schedule and lacking in features as required by the customers. There were various problems like poor decisions of investments, major changes in the leadership. Some people blamed the company’s failure just because it was not enough capable to focus key area of improvement. Currently, General Electric is making good effort and is focusing on redesigning their digital strategy [16].
9 Banking: Banking industry has transformed its services massively in the last decades. Banks ATM has replaced the banking tellers (cashier) for cash deposits, withdrawals or cheque deposits. With the excessive use of smart phones in our society, most of the banking transactions taking place through mobile apps rather than visiting to a bank. Money can be transferred in various secured ways available like NEFT, IMPS, etc. All of this became possible because banking industry has taken initiative for adopting digital transformation.
10 Insurance: Most of the insurance related work can be done through self-service portals or mobile apps. Users can compare and customize their insurance plans available in the market and without taking any help from the insurance agent. Insurance may be related to automotive, life, health, business or home. User can have the various alternatives on a single portal like policybazar.com and all.
4.2.4 Importance of Digital Transformation
Digitalization supports the business leaders and entrepreneurs in changing the existing economy of the company which reflects everywhere. Amazon has a great impact on retailing whereas Facebook has affected publishing by providing services to their customers instantly. As a result, traditional companies are facing challenges by various digitally aware competitors. However nearly three-fourth of business leaders are alert and attentive that their organization is under threat from distraction, therefore various business leaders are not interested to adopt the change [17].
4.2.5 Digital Transformation vs Business Transformation
The process of business transformation is going faster as it is running with the assistance of various digital technologies available in the market. Implementing digital transformation into a business doesn’t mean that to apply technology which does the process digital, but it is more than that which includes the way that the employee works with different tools available and work with teams. Hence digitalization is an approach to assist in the business transformation. “There is not an IT or a business strategy; instead, there’s a single digital business strategy,” validates Lisa Heneghan, who is the global head of KPMG’s Chief information officer advisory board.
4.2.6 What Does Digital Transformation Look Like?
Recent technologies whether it is IoT (Internet of Things), Artificial Intelligence, Big Data, or Cloud computing are providing assistance to various business leaders for developing new models for the existing business which changes the traditional method of running business operations. Such technologies are not just the recent buzzwords for the current scenario but the “Tangible value coming from these technologies in terms of improving product optimization, increasing production output, and directing operational efficiency challenges.” Hence we can call it what we require and the digital transformation is like something for which so many executives engaged in legacy systems are struggling till now to get their heads around. Although start-ups succeed through their innovative methods of working style, creative use of data and approaches to integrate recent technologies, various traditional firms including public and private sectors are still facing difficulties in legacy system.
