3 Examples of Successful Digital Transformation You Can Replicate

According to Gartner, 87% of senior business leaders say digitalisation is a company priority. And 45% of companies see a positive business impact from digital transformation, including higher net revenue growth.

Vice president analyst in Gartner's CEO and digital business leader practice, Kristin Moyer, says that when considering digital transformation, companies should always focus on the outcomes.

She says,

“Digital transformation, done well, optimises and transforms a company's business. With optimisation, the outcomes that you're getting are things like improved efficiency and improved engagement with customers. With transformation, what you're focusing on is brand new revenue. For example, new digital products and services and new business models.”

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3 Examples of Successful Digital Transformation

 

Digital transformation has the potential to make an organisation more quick-footed to leverage new technologies, execute projects faster and take advantage of the opportunities created by disruptions.

Microsoft Looks Externally for Innovation


Microsoft owns a tremendous 77.7% of the operating system market but was still struggling to break into the mobile operating system market. Intense competition from companies like Apple and Amazon had kept Microsoft at bay.

Instead of pushing forward, the company decided to change track. They focused their efforts on cloud-based solutions and building relationships with software and technology vendors. This was a big turnabout from their internally-focused approach to innovation.

But taking an outside-in approach and collaborating with partners paid off with the success of their cloud-based solutions.

Following their new business model, their revenue saw a dramatic increase, from $93.5 billion in 2014 to $122 billion in 2019.

Capital One Becomes a Tech Company That Does Banking


Credit card behemoth Capital One started its digital transformation journey with the goal to become “a technology company that does banking instead of a bank that just uses technology.”

The company used big data and machine learning to understand their customers better, worked with third-party experts to build personalised apps, adopted cloud computing and implemented agile software development and DevOps practices, including the use of open-source software.

In November 2020, it announced the closure of all eight of its on-premise data centres — the first U.S. bank to do so. With their cloud-first approach, the bank had moved all applications and systems to Amazon Web Services.

This approach allowed it to move away from infrastructure management and focus on accelerating customer-centric innovation by using machine learning to turn data into insights.

Its digital transformation led the company to younger demographics — more so than its competitors Wells Fargo and Bank of America.

Ford Cuts IT Budget 30% for Digital Transformation


Around 2006, Ford Motors was flailing under the weight of its outdated business model and IT infrastructures.

The organisation was a collection of regional business centres with siloed structures, IT, data and even strategy. The business had stopped functioning as a cohesive whole. They knew this lack of unity was costing the business and resolved to change.

They started their digital transformation with well-defined but clear goals — simplify the product line and place focus on quantitative data analytics and quality cars.
But still, for a company already operating with tight margins, investing in a digital strategy was difficult. In a bold move, Ford slashed their IT budget by 30% that was going in to prop up outdated and fragmented systems.

With the resources they freed up, the company fueled its digital initiatives. As a result, they created their in-vehicle communications and entertainment systems, Ford SYNC and MyFord Touch.

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