Successful companies, our findings suggest, typically favor an all-in, enterprise-wide transformation, rather than constraining the transformation to individual business units or functions. It’s no secret that transformation is one of the biggest challenges facing organisations today, with some grappling with multiple changes at any one time. There are many digital transformation examples of small to large scale businesses that will help you to understand digital transformation. Best Buy saw its market share in the consumer electronics industry dip... 2. These transformations help organizations compete more effectively, become more efficient, or make a wholesale strategic pivot. When frontline employees take the initiative to drive change, transformations have a 71 percent success rate. The first step in any successful digital transformation is to embrace the cloud and what it can do for your organization. Fortifying this new view, the Business Roundtable last month released a statement signed by 181 CEOs stating that serving shareholders can no longer be the main purpose of a corporation; rather, it needs to be about serving society, through innovation, commitment to a healthy environment and economic opportunity for all. Capital One is a great example of a banking and credit card business that has reinvented itself by adopting the latest technology. Below we highlight 5 examples of successful business transformation programs. “We broadened our vision and our purpose changed,” Baker says. For example, when leaders ensure that frontline staff members feel a sense of ownership, the results show a 70 percent success rate for transformations. Our research team screened all the firms in the S&P 500 and Global 2000 using three lenses: Our initial phase of research identified 52 companies making substantial progress towards strategic transformation—merely 3% of the public companies in our data set. You also have the option to opt-out of these cookies. Digital Transformation is a concept that varies by industry, vertical, company and the availability of technology, so it's not easily understood nor is there one example of digital transformations. When the firm now known as Ørsted divested its oil and natural gas businesses and began phasing out coal, that created a giant earnings gap that urgently needed to be filled. They’re awkward and expensive, demanding complex, high-speed interactions between internal functions and major suppliers. The technology companies on our list also discovered ways to infuse purpose into their organizations as part of their fundamental change. At its best, business transformation is a move to own the change that is sweeping an industry. To give you a better understanding of what real 'Digital Transformation" looks like, here are 5 real businesses that leveraged new technologies to digitally transform and evolve their business. However, we believe it’s the decision to infuse a higher purpose into the culture, one that guides strategic decisions and gives clarity to everyday tasks, that has propelled these companies to success. Instead of shutting down or taking a break, these large companies are making big transformations to stay alive and stay relevant. Over the years I’ve developed a list of key principles that must be observed to ensure that business transformations are successful. https://hbr.org/2019/09/the-top-20-business-transformations-of-the-last-decade Going Digital Improved Best Buy’s Performance. Digital Transformation is a concept that varies by industry, vertical, company and the availability of technology, so it's not easily understood nor is there one example of digital transformations. Inspiring Examples of Digital Business Transformation . However, it’s the decision to infuse a higher purpose into the culture, one that guides strategic decisions and gives clarity to everyday tasks, that has propelled these companies to success. “As our teams widened their awareness of global issues, our pride has been enhanced.” So has Ecolab’s market value, which has surpassed $55 billion, placing it among America’s top 100 most valuable firms. Over the next ten years the city invested $4.5 billion in the Second Avenue Subway system, achieving: In 2014, the manufacturing industry was characterised by steel supply chain inefficiency – typified by long delivery times, incorrect delivery times, high inventory levels. The #1 company, Netflix, is a case in point. Inspiring Examples of Digital Business Transformation . Which business transformation principles am I talking about? Deloitte’s Business Transformation practice identified six keys to transformation success based on hundreds of engagements with some of the world’s leading companies. They will impact the customers. Spending approximately £20 million, York City Council was able to achieve: In 2007, New York experienced a rate of population growth not seen since the 1920s. Business transformation is a common term for a dramatic program of change that typically involves everyone in an organization. LeanIX, a provider of Software-as-a-Service solutions for Enterprise Architecture (EA) and Cloud Governance, today concluded day one of its two-day EA Connect Days conference.The EA peer event was attended by more than 3,000 IT managers and EA experts … The result: Previously about 80% owned by the Danish government, Ørsted’s IPO in 2016 was one the year’s largest. Editor’s note: Every ranking or index is just one way to analyze and compare companies or places, based on a specific methodology and data set. Starbucks, not 7-Eleven. Each of these companies developed new-growth businesses outside its traditional core which have become a significant share of the overall business. Published on October 19, 2016 October 19, 2016 • 156 Likes • 20 Comments As the memo said, “We don’t and can’t compete on breadth with Comcast, Sky, Amazon, Apple, Microsoft, Sony, or Google. 73% of business transformations fail. Siemens moved beyond a purpose of maximizing shareholder value to a mission of “serving society.” This transformation began in 2014 with a plan called Vision 2020 that called for harnessing technologies such as AI and the Internet of Things. Under Poulsen, Ørsted embarked on what critics called an impossible mission: a systematic “cost-out” program to reduce the price of offshore wind while achieving scale. “We saw the need to build an entirely new company,” says Poulsen. “Ownership culture is central to everything,” Humpton says. Each of above success factors involves transformation in itself. Successful companies, our findings suggest, typically favor an all-in, enterprise-wide transformation, rather than constraining the transformation to individual business units or functions. Polaris These cookies are used to collect information about how you interact with our website and allow us to remember you. World’s Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys Bonn, Germany & Boston, MA –September 4, 2020 - LeanIX , a provider of Software - as - a - Se rvice solutions for Enterprise Architecture (EA) and Cloud Governance, today co ncluded day one of its two - day EA Connect Days conference. The first step in any successful digital transformation is to embrace the cloud and what it can do for your organization. However, changing the mission also called for changing the culture. Digital Transformation Success Cases: Real World Examples Thriving in the digital age is closely related to innovation and digital transformation strategies. Business transformation is an umbrella term for making fundamental changes in how a business or organization runs. Since unveiling that new purpose, Netflix revenue has roughly tripled, its profits have multiplied 32-fold, and its stock CAGR has increased 57% annually, versus 11% for the S&P 500. Only in subsequent years did founder and CEO Pony Ma Huateng broaden the firm’s outlook by embracing a mission of “improving the quality of human life through digital innovation.” Since 2011, Tencent has invested heavily in new growth ranging from education and entertainment to autonomous vehicles and ride sharing to fintech and the industrial internet—areas that together now represent 25% of its $46 revenue. A more comprehensive scope increases the chances of creating value-generating opportunities across functions. The T-20 study identified the global companies that have achieved the highest-impact business transformations over the past decade as measured by new growth, respositioning the core business, and financial performance. For example, when leaders ensure that frontline staff members feel a sense of ownership, the results show a 70 percent success rate for transformations. What You Need to Know About Business Process Transformation. For example, they began installing kiosks where customers can quickly customize their hamburgers. Make digital transformation a priority for your business as well as your workforce by putting the structures, systems and processes in place necessary to drive digital maturity and encourage growth. 3000 Attendees participate in LeanIX EAConnectDays to share Enterprise Architecture case studies on successful business transformations World’s Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys Fortunately, you can take steps right now to first transform your workforce and then your business. In 2014, Tele2 (Netherlands) wanted to accelerate the launch... 2. For inspiration, here are 5 excellent examples of brands that are driving success through digital transformation. I use it as a checklist. “It had to be a radical transformation; we needed to build a new core business and find new areas of sustainable growth. With a rich history spanning over 125 years and some of the big names such as Thomas Edison as its founding fathers, General Electric is one of the pioneers and one of the most iconic brands in electrical industry. By doubling its systems investments from $1.2 billion in 2011 to $2.4 billion by 2013 and in spending a reported $951 million on IT, BBVA was able to achieve: In 2014, York City Council was dissatisfied with the level of connectivity available to its schools and council offices. At its best, business transformation is a move to own the change that is sweeping an industry. Companies like Nike, Dominos, IKEA all adopted digital strategies to meet customer expectations and stay ahead of the competition. To give you a better understanding of what real 'Digital Transformation" looks like, here are 5 real businesses that leveraged new technologies to digitally transform and evolve their business. Here are five company examples that show successful transformations, across a range of industries and locations. Here’s a shot of the whiteboard for your reference! As of 2005, shortly after its IPO, Tencent defined its purpose in terms of “implementing our Online Lifestyle strategy, which strives to cater to the basic needs of our users.”. In 2019, Tencent refined its mission once again, in response to the growing global backlash against technology’s dominance in our lives, boiling it down to: tech for social good. 5 excellent examples of successful transformation programs 1. These include applying new technologies, focusing on solutions, and leveraging data. Need some examples? Follow in their footsteps to digitally transform your business. The company had invested in offshore wind power, but the technology was too expensive, producing energy that was more than double the price of onshore wind. Such transformations are never easy. But the biggest failure factor is NOT what you think! In 2013, CEO Reed Hastings released an 11-page memo to employees and investors detailing a commitment to move from just distributing content digitally to become a leading producer of original content that could win Emmys and Oscars. 1. Digital transformation is key to the survival of many companies, yet digital transformations are tough and frequently fail. Let’s take a look at examples of digital innovations in marketing, sales, and service that build closer customer relationships and empower employees across all industries. The board hired a former executive at LEGO, Henrik Poulsen, as the new CEO. A more comprehensive scope increases the chances of creating value-generating opportunities across functions. Projections for the year 2030 showed that 70% of the world’s GDP would be based in water-stressed regions, California and Southern India being prime examples. Speaking in business outcomes can feel like a foreign language to many technically minded individuals. World's Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. Talktalk, alongside partners Sky and CityFibre, chose York as the first UK city to deploy its Ultra Fibre Optic Broadband. Harvard Business Publishing is an affiliate of Harvard Business School. The strategic impulse to identify a higher-purpose mission that galvanizes the organization—is a common thread among the Transformation 20, a new study by Innosight of the world’s most transformative companies. Roisin Woolnough asks Janice Miller, director of leadership programmes at Harvard Business Publishing, about HR’s role in ensuring transformation is successful. Porsche is relying on technology to transform their cars with automated driving. More often, it's an attempt to cope with change that has already occurred. “Our strategic plan was to sell more of what we had,” Baker says. At HBR, we believe that a well-designed index can provide useful insights, even though by definition it is a snapshot of a bigger picture. Digital Transformation in the Enterprise 1. It’s transform or wither in today’s business environment, with multiple transformation triggers creating strong pressure simultaneously. What does digital transformation look like in practice, and how has it already changed the way we do business? Business transformation programs come up for one of two reasons: they either solve a problem or exploit an opportunity. This includes personnel, processes, and technology. McDonald’s. These cookies will be stored in your browser only with your consent. Deloitte’s Business Transformation practice identified six keys to transformation success based on hundreds of engagements with some of the world’s leading companies. That strategic impulse—to identify a higher-purpose mission that galvanizes the organization—is a common thread among the Transformation 20, a new study by Innosight of the world’s most transformative companies. To answer this question, here are some examples of successful brands who have not only completed transformation business process and are also reaping rich rewards. Embracing digital transformation is key to survival in today's business world. Business transformation is an umbrella term for making fundamental changes in how a business or organization runs. The company managed to cut the cost by more than 60% while building three major new ocean-based wind farms in the U.K. and acquiring a leading company in the U.S. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. In this post, we’ll review 5 digital transformation examples from industrial enterprises making big changes and seeing incredible results. From this second-round list, an Innosight partner panel voted to narrow it down to 27 finalists. Strong leadership and maintaining energy for change among employees are two principles of success that reinforce each other when executed well. Successful digital transformation requires an agile workforce that is ready to change, reskill and upskill. To grow much beyond its $3.8 billion in revenue, the company could have kept moving into adjacent markets or new geographies, but Baker felt that wasn’t bold enough. This shift in the culture at Siemens has propelled plans to divest its core oil and gas business and redeploy the capital to its Digital Industries unit and Smart Infrastructure business focused on energy efficiency, renewable power storage, distributed power, and electric vehicle mobility. You can use the following examples to inspire and demonstrate business outcomes that are based on actual transformation journeys. We looked at the shift to combat climate change, and we became one of the few companies to wholeheartedly make this profound decision, to be one of the first to go from black to green energy.”. Examples of digital transformation: Discover how companies like Porsche, ... AmerisourceBergen realized early on in their journey that business transformation can only be successful when a culture of innovation is established across the entire ... Each team had to take ownership AND leadership of their own part of the business. In a comparable way, the purpose-driven mission of preventative healthcare has spurred major change at other large organizations that made the list. For us to be hugely successful we have to be a focused passion brand. That’s why strategic transformation may be the business leadership imperative of the 21st century. In 2011, Ecolab had a $12 billion market cap when it acquired water technology company Nalco in an $8 billion deal. Others look at business transformation as the start of a change – a process that starts with purpose, strategy, and vision, and then takes shape through a series of changes to the business. Key Components for Successful Business Transformation . All of this growth helped Tencent become the first Asian company to surpass $500 billion in market valuation. Strategic Vision: Make sure you develop the right strategic vision, so you have a clear idea of where you’re going and how you’re going to get there. McDonald’s has recognized a massive shift in consumer behavior and they are trying to adapt by digitally transforming their restaurant experience and company processes. Through its Tencent Education business unit, the firm is now developing educational content and services for individuals, schools, and education management. Strategies for Business Transformation Success To overcome these challenges, Jennifer offered a four-point strategy. In Review ... You need to find a compelling reason why the business transformation is necessary in order to get everyone on board, ... just some examples… Business transformation has pervasive effects on the organization. The same customers who were buying its core products were also voicing concerns about access to clean water. They determine that an innovative technology – big data, or artificial intelligence, for example – is the flavor of the month and they look for ways to implement it in their business. Here are 11 inspiring case studies of digital transformation. Retail has also been radically transformed in the digital era. Business transformation can mean different things to different people. They determine that an innovative technology – big data, or artificial intelligence, for example – is the flavor of the month and they look for ways to implement it in their business. Examples of digital transformation in retail. Digital transformation has both impacted the in-store retail experience and ushered in … World’s Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys Article FREE Breaking News Alerts from StreetInsider.com! The combined company is now one of the world’s leading suppliers of hardware, software, and chemistry that helps manufacturers and service firms become more efficient users of water. Target’s Digital Transition Strategy. Business transformation is a common term for a dramatic program of change that typically involves everyone in an organization. Whereas some leaders might have gone into crisis-management mode, laying off workers until prices recovered, Poulsen recognized the moment as an opportunity for fundamental change. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. Examples of digital transformation success stories: Five companies that shine. HBO, not Dish.”. The transformation traces back to 2016 when the first Microsoft Surface 3s were made available to schools in regional and remote areas. And they weren’t alone. We also use third-party cookies that help us analyze and understand how you use this website. To help ease translation, we curate a set of business outcome examples. However, digital transformation takes on different forms, depending on the industry, and encompasses unique business challenges and goals. Porsche has made digital transformation a company-wide endeavor. In the case of Tencent Holdings, the company was founded in 1998 to harness the Internet opportunity, launching online chat forums and video games for China’s new generation of digital natives. This website uses cookies to improve your experience while you navigate through the website. Digital Transformation in the Enterprise 1. ... AmerisourceBergen realized early on in their journey that business transformation can only be successful when a culture of innovation is established across the entire organization. In 2014, Tele2 (Netherlands) wanted to accelerate the launch of a new mobile business with a capital cost of £150 million. “The biggest obstacle to any transformation is literally just the way we’ve always done things,” says Siemens USA CEO Barbara Humpton. They are often adopted independently, but many companies are employing all three as they work to increase the value they deliver. It’s no secret that transformation is one of the biggest challenges facing organisations today, with some grappling with multiple changes at any one time. How can I digital transform my business the right way? Manhattan is the most densely populated county, placing high demand on transport infrastructure. In the early 2000s, when Douglas Baker Jr. became its CEO, Ecolab was an 80-year-old firm growing 10% annually by selling industrial cleansers and food safety services. Ecolab, #16 on our list, is a prime example. Net profits have increased by $3 billion since it began the transformation, and Ørsted is now the world’s largest offshore wind company, with about a third share of booming global growth market. Some entrepreneurs and corporate managers, when they think of digital transformation, end up getting ahead of themselves. Capital One was the first bank to welcome Amazon’s Alexa virtual assistant into its voice activated financial transactions system. VALUE: Judge change by how digital transformation helps create the next business; Since digital transformation doesn’t happen overnight, it also doesn’t hurt to show short-term wins along the way. We always urge you to read the methodology carefully. Engaging employees. 1. “ we saw the need to build a new mobile business with a capital of! Are many digital transformation success stories: five companies that shine ways infuse. Company, Netflix, is a great example of a new mobile business with a capital cost of million... Bbva ) a roadmap for successful HR transformation the disruptors, the company intends to involve every single employee infrastructure. Functionalities and security features of the website to function properly … 7 examples small. Companies like Nike, Dominos, IKEA all adopted digital strategies to meet customer expectations and ahead. 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