Digital transformation is the gradual and continuous integration of digital technologies on all company levels. The process aims to increase efficiency, enhance customer service, and improve the current state of operations through technology.
This article will examine five key industry players and their approaches to digital transformation.
1. Connectivity and Improving the End-to-End Customer Experience at Johnson & Johnson.
Intelligence-based supply chain technologies, personalized customer experiences, and highly efficient order fulfillment systems are some of the innovations that put Johnson & Johnson at the forefront of disruptive innovators in the pharma industry.
Their Advance Case Management (ACM) platform based on AI and image-based algorithms can predict the most likely product range required in the operating room for primary joint-replacement surgeries. The system allows for streamlining logistics operations, minimizing waste and set-up time in operating rooms. As a result, more time is freed to spend supporting patients and customer care. The innovation has led to a 60% reduction in instrument trays required for cases and instrument sterilization costs. Enabling real-time and interactive manufacturing processes through digital advancements has also benefited demand prediction analysis, creating a truly agile end-to-end supply chain.
Johnson & Johnson’s Digital Transformation Challenges
- High investment requirements
- Limited internal expertise
- Resistance to change
Besides investing in data science technologies, the company embraced the Agile mindset and practices to support its digital transformation efforts. Short delivery cycles, for instance, allowed for faster testing and deployment of new ideas. Furthermore, the close cross-departmental collaboration and self-directed teams helped to align everyone around a common purpose – delivering real customer value. Another key factor in creating a better customer experience was adopting a design thinking approach and relying heavily on a deep understanding of the customer journey.
2. Digital Innovation and Customer Loyalty on the Path to Stability at Walmart.
Walmart's digital transformation has helped the company become a leader in e-commerce. AI, IoT, Machine Learning, and cloud technologies are the key drivers of the retail corporation’s journey to respond to the changing customer desires and purchasing behavior.
The company has invested heavily in digital technologies, such as augmented reality to improve supply chain automation and speed up inventory management processes. The delivery platform service Walmart Go Local is another achievement focused on speed improvement, which led to increasing the number of fulfilled orders by nearly 40% in one year. Another milestone dedicated to enhancing the customer experience is adding a free Paramount+ subscription to Walmart+ members. (Digiconomica)
Walmart’s Digital Transformation Challenges
- Business stability in volatile periods
- Shifting customer demands
- Need for faster delivery
- Fierce competition
Empowering people and learning from experience were key enablers of the success of Walmart’s digital transformation. The decentralized leadership, breaking down silos and consolidating operations, allowed for greater visibility and enabled business agility.
3. Continuous Commitment to Digital Excellence in Front and Back Office Operations at Domino’s.
Domino's Pizza has transformed its business by leveraging digital technologies to streamline its operations and improve its customer experience. The company's mobile ordering and delivery tracking have helped it become a leader in the pizza delivery market.
Driverless vehicles and electric bikes put Domino’s at the head of the digital innovations in contactless pickup and delivery. Cutting-edge AI technologies such as the ordering bot DOM and Domino’s AnyWare integrations reshaped the pizza ordering process unlocking diverse options for customers and creating more revenue streams.
Domino’s Digital Transformation Challenges
- Change management
- Cybersecurity
- Legacy systems
Effective change management processes and strong leadership are important drivers for change at Domino's. Dedication to helping employees understand the benefits of digital transformation is another important aspect of the successful journey so far. (NCR)
4. Innovations, Engagement, Usage, Data Insights and Improved Customer Experience to Drive Digital Growth at Spotify.
Spotify is a digital music streaming service that has undergone a significant transformation since its launch. With a bold mission to become the No. 1 global streaming audio player, investments in research and development and acquisitions are at the heart of Spotify’s digital transformation strategy.
Some of the recent efforts to improve customer experience include enhanced recommended playlists and a new feature to view songs’ lyrics. The ladder is leveraging factors such as customers’ age and geography. (MIT Slogan)
Besides employing behavioral prediction algorithms and dynamically changing user interface, Spotify also heavily invests in acquisitions. Adding famous podcasts such as The Joe Rogen Experience or Gimlet, audiobook distributors, and audio app for live streams altogether help to bring even better engagement and user growth.
While the company was born in the digital age and 30% of music streaming subscribers worldwide use Spotify, it still faced several challenges during its transformation process.
Spotify’s Digital Transformation Challenges
- Monetization
- Partnerships
- Competition
Agile culture has always been a big factor in Spotify's success. Cross-functional teams, trust, and autonomy are still at the heart of the Spotify Model. Through that culture of experiments, ownership, and efficiency, the music provider continues to innovate, learn and rule out competitors.
5. Collaboration and Communication to Raise Efficiency at Tesla.
Tesla has disrupted the automotive industry with its digital transformation and innovative products. From innovations such as the Tesla Autopilot to their marketing approach to use social media instead of traditional advertising and in-person selling, Tesla has become synonymous with disruptive innovation.
Besides autonomous vehicles, Tesla utilizes AI and Big Data technologies to collect and analyze data to detect and resolve emerging issues and develop new products. Thanks to its focus on improving its operational efficiency and diversifying its product portfolio, the digitally connected Tesla vehicles deliver unmatched customer value. Furthermore, Tesla’s personalization through customization options is an innovative way for the company to connect with its customers. (GlobalData)
Another milestone in Tesla’s digital transformation success is collaboration. Battery performance has been optimized thanks to continuous innovation and collaboration with suppliers. Closely working with government officials has also enabled the setting of reliable charging infrastructure.
Tesla’s Digital Transformation Challenges
- Change resistance
- Battery technology
- Charging infrastructure
How Digital Transformation Revamps the Entire Customer Experience?
Here are a few ways digital transformation creates new value by enhancing customer experience.
Augmented reality enables organizations to interact with customers in a very powerful, real-time, and insightful way. For example, virtual reality platforms can offer much more efficient and faster customer onboarding. You could also utilize it for a product walkthrough to showcase to your customers how to benefit the most from the variety of capabilities built into your product or service.
- Artificial Intelligence (AI)
Powerful AI technologies and automation allow companies to shorten delivery times and "listen" to their customers more closely. Technological advancements in pharma companies, for instance, are used to speed up manufacturing processes, drug testing, and development or to improve the processing rate of clinical data, so innovative medication reaches patients faster.
Cloud technologies provide new ways to manage data and utilize technology to enhance consumer experiences. They enable teams to innovate rapidly, collaborate and address changes easily, and deliver value faster. Cloud-based infrastructure also offers improved data security, storage, and regulatory compliance.
Indeed, driving digital transformation initiatives globally are factors such as moving data to the cloud, leveraging technological tools for communication and collaboration, and automating processes. According to recent digital transformation statistics and trends, global spending on these initiatives is expected to reach 3.9 trillion U.S. dollars by 2027.
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In Summary
Employing digital technologies to better respond to customer demands, streamline processes and deliver enhanced customer experience is the essence of digital transformation efforts throughout industries. A digital-first approach does, however, have its challenges.
- Dynamic customer demands
- Resistance to cultural change
- Fierce competition
- Legacy systems
