Digital Transformation In Practice
Digital transformation is what happens when you harness digital disruption and run with it. If that sentence doesn’t make very much sense, take a look at these definitions. And read these 5 digital transformation examples to see what successful strategy looks like.
Digital transformation: the dramatic and strategic transformation of business to leverage evolving digital technologies to provide more value for users and customers.
Digital disruption: the changes a company must go through in order to be digital transformation positive. This change is sometimes forced and can destroy a company or raise it above the competition.
Digital Transformation Examples
Between the years 2013-2015, the UK government saved 3.56 billion euros due to their strategic of digital technologies. Additionally, when people involved in this process commented on it, they noted how most of the benefits came from rethinking how their organization worked. The government started seeing their citizens as clients. They focused on providing services that bring value to them. They just used digital technologies as the vehicles for facilitating the user-centric shift.
For example, the government successfully moved 98% of their driving test bookings online. 85% of their self-assessment filing is now done online. And 12 million people were able to register to vote digitally, as well. Notice how these examples make the process easier for users. They use digital technologies, but that isn’t the point. The point is that they are used to improve the system for millions of people. And that reflects an important culture shift.
Walgreens saw early on that they needed to go digital. But the reason they make it on this list is because they included several different digital strategies into their repertoire. They didn’t just add an app- they changed the way they operate as a business.
For example, Walgreens found that digital reminders to refill medicine raised adherence by 2%, meaning customers came in for refills more often. They also discovered that customers who visited their web, mobile, and physical location stores spent up to 600% more than customers who only visited the store. They took advantage of this by creating an app for printing digital pictures and a shopping app that included personalized coupons, a way to automatically refill prescriptions, and a rewards program that let them earn points through a fitness program.
This shows that the business is really about helping each customer have a better life. And customers have rewarded Walgreens for this emphasis.
L’Oreal truly embraced the idea of giving value to their customers, and they did it through digital content. They used beauty apps to build their loyal fan base by 20 million customers, but that wasn’t even the most exciting innovation. They created tailored how-to videos to reach their fan base which have been viewed over 9 million times. This functioned to increase brand engagement and visibility.
Customers have responded with incredible approval because they realized that the company really wanted to help improve their lives. That’s what user-centric design is all about. It’s about focusing on what the users want and need and providing that. And that’s what digital transformation facilitates.
Sprint’s approach takes a different path. As a telecommunications company that integrally revolves around digital technology, they had to push even further. Sprint unified their data in order to optimize how they improve their performance. This big data allows them to find where their processes are failing customers. Big data analysis helps them understand their customers more and lets them provide a more personalized service.
Here, we look at another crucial application for digital transformation and big data: marketing. Porsche made their number one priority very clear with their transformation- the Porsche driver. All data that is gathered flows into one data center and allows the company to know what their customers want and need at every single step of their relationship.
That means that the company can target their customers with their campaigns. They avoid bothering customers who aren’t in that stage. And they make their customers feel more like part of a family. And in the end, their sales rose significantly as their customers responded with their appreciation and loyalty.
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