Why a Digital Transformation Is the Key to Growing Business

Digital transformation is not an option for modern enterprises. It is a requirement.

Nobody wants to be the Blockbuster, Tower Records, or Polaroid of 2018. No matter how beloved these companies are in our memories, they cannot meet our modern consumer needs.

Even top enterprises that appear like they have no room for digital improvement are developing creative innovations to improve user experience.

Disney is one such enterprise with a commitment to being on top of cutting edge technology. This conglomerate has developed MagicBands to give park guests a more enjoyable time during their Disney vacation. MagicBands allow guests to have their hotel key, credit card, tickets, and fast passes all on their wrist. Talk about magical.

Today we take a look at what digital transformation can look like for the enterprise-level and why it is necessary for growth.

What Digital Transformation Means for the Enterprise-Level Company

Digital transformation is about making changes within your enterprise in order to provide a useful and enjoyable product or service for your customer.

Take the New York Times for example. This historic news source faced a huge challenge when newspaper sells started dwindling. In response, this enterprise formed a unique online subscription-based model that now brings in about $500 million in annual revenue.

The New York Times didn’t accept that the newspaper was dying out. They recognized that the consumer was finding information through a different medium and they needed to meet readers where they were at.

To meet customers where they are at in this constantly changing world, companies need to welcome change.

According to Perry Hewitt, chief digital officer at Harvard University, implementing digital transformation requires a shift in company culture and buy-in from the entire organization. Teams will need to be cross-functional and willing to work in a flexible environment with a level of uncertainty.

Even though 42% of CEOs have a digital transformation strategy, they find that ineffective collaboration among departments and a risk-averse culture can inhibit the success of those strategies.

Companies need to learn how to overcome these challenges because the potential growth of digital transformation is not to be ignored.

How Digital Transformation Drives Growth

Growth looks different across industries, so let’s examine some specific examples of large enterprises doing digital transformation right.

In 2012, Audi opened its first Audi City, which is a physical cyber store virtually showcasing all of its car models. Audi Cities allow the organization to present more car models in areas with little space. It also cuts down on costs because Audi only stocks four cars at each site. Audi has increased sales by 60% in some locations.

McDonalds has taken big steps to keep up to date with digital consumer trends. In 2015, McDonalds used social media to give away every product advertised in the Superbowl commercials. The idea was to rebrand themselves with a focus on “loving” in their slogan, but to also target the younger generation that had been dropping in sales. This unique advertising effort was a hit and inspired 1.2 million retweets.

Starbucks built an all-star mobile order and pay app that allows customers to order while waiting in traffic or running between meetings and pick up at the nearest Starbucks. Mobile app users spend about 3x more than traditional in-store coffee drinkers. Profits have also risen because it creates efficiency and cuts credit card fees.

Digital transformation growth creates a huge divide between leaders and followers. If you do not find solutions to satisfy and delight your customers in this digital environment, your competitors sure will.

Corporate digital transformation requires tremendous creativity, commitment, skill – and the right technology tools. Innovation management tools can help your enterprise meet your customers where they are at.