The advent of the COVID19 pandemic and the pivot towards remote work has emphasized the immediate need for digital transformation, which can be defined as the adoption of digital technology by businesses to improve efficiency and innovation.
There are several benefits to digital transformation, including:
- A better customer experience.
- Increased profits.
- Increased agility.
- Improved productivity.
- Data-driven customer insights.
Remarkable case studies
Several brands have achieved outstanding results that led to reduced costs and a better customer experience by embarking on a digital transformation journey. Here are some examples to inspire your transformation journey:
UPS is a prime example of digital transformation done right. The company has developed a tool to manage its fleet system called ORION
(On-road Integrated Optimization and
Navigation). This tool creates optimal routes for delivery drivers using data coming in from the field, which reduces the company’s carbon footprint and optimizes the routes leading to a better customer experience and a reduction of cost.
One minute saved per driver per day saves UPS $14.5 million over a course of a year.
Today, UPS drivers make 130 deliveries per day, compared with around 90 before this digital transformation.
Software company Adobe has transitioned from a license-based company selling box software like Photoshop, Dreamweaver, and others. into a cloud-based company resulting in the company’s stock price more than tripling, with revenue growth climbing from the single digits to the double digits.
The journey started in 2013 when Adobe transitioned all its creative software to the cloud and started offering software as a service (Saas).
Today, the company entirely operates in digital media through three subscription-based models – Creative Cloud, Document Cloud, and Marketing Cloud.
Recurring review climbed from 19 percent in 2011 to 70 percent of total revenue in 2015, according to McKinsey.
Under Armour’s journey with digital transformation began when it diversified from an athletic apparel company to a data-driven digital business stream.
Under Armour introduced the concept of “Connected Fitness” by providing a platform to track, analyze and share personal health data directly to its customers’ phones.
Under Armour acquired several technology-based fitness organizations such as
MapMyFitness, MyFitnessPal, and Endomondo to get the required technology that identifies fitness and health trends.
At the end of 2021, Under Armour posted revenue growth of 8% to $1.5 billion year over year.
“Today, virtual is reality, and reality is virtual,” Jami Dunbar, Under Armour’s SVP of global product supply,” told reporters, explaining how their investments in digital capabilities led to higher profit margins and a seamless product-to-market pathway.