successful case study digital transformation

30+ Digital Transformation Case Studies & Success Stories [2024]

Cem is the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per Similarweb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Digital transformation has been on the executive agenda for the past decade and ~ 90% of companies have already initiated their first digital strategy. However, given the increasing pace of technological innovation, there are numerous areas to focus on. A lack of focus leads to failed initiatives. Digital transformation leaders need to focus their efforts but they are not clear about in which areas to focus their digital transformation initiatives.

We see that digital transformation projects focusing on customer service and operations tend to be more heavily featured in case studies and we recommend enterprises to initially focus on digitally transforming these areas.

Research findings:

• Outsourcing is an important strategy for many companies’ digital transformation initiatives.
• Most successful digital transformation projects focus on customer service and operations

Michelin-EFFIFUEL

Michelin, a global tire manufacturer, launched its EFFIFUEL initiative in 2013 to reduce the fuel consumption of trucks. In this context, vehicles were equipped with telematics systems that collect and process data on the trucks, tires, drivers habits and fuel consumption conditions. By analyzing this data, fleet managers and executives at the trucking companies were able to make adjustments to reduce oil consumption.

• Business challenge : Inability to improve customer retention rates to target levels, due to trucks’ fuel consumption and CO2 emissions .
• Target customers : Fleet managers and operations managers at truck companies in Europe
• Line of business function : Customer success management and sales.
• Solution : By using smart devices, truck and tire performance degradation is detected and maintained from the start. The solution also nudges truck drivers into more cost and environmentally friendly driving.
• Business result : Enhanced customer retention and satisfaction. EFFIFUEL has brought fuel savings of 2.5 liters per 100 kilometers per truck. The company also reduced the environmental costs of transportation activities. According to Michellin, if all European trucking companies had been using the EFFIFUEL initiative, it would have caused a 9 tons of CO2 emission reduction.

Schneider Electric-Box

Schneider Electric is a global company with employees all over the world. Prior to the Box initiative , which is a cloud-based solution, business processes were relatively slow because it is difficult to process the same documents from different locations at the same time. Schneider Electric also needed a way to provide data management and security for its globally dispersed workforce. So Schneider Electric outsourced its own custom cloud environment that integrates with Microsoft Office applications to Box. The platform also ensures tight control of corporate data with granular permissions, content controls and the use of shared links.  Thanks to this initiative, the company has moved from 80% of its content hosted on-premises to 90% in the cloud and has a more flexible workforce.

• Business challenge : Inability to increase operational efficiency of the global workforce without capitulating to data security.
• Solution : Outsourcing company’s cloud-based platform to Box, that ensures data security and integration with Microsoft Office programs to ensure ease of doing business.
• Business result : Schneider Electric connects its 142.000 workers within one platform which hosts 90% of its documents.

Thomas Pink-Fits.me

British shirt maker Thomas Pink, part of the Louis Vuitton Moet Hennessey group, has outsourced the development of its online sales platform to Fits.me Virtual Fitting Room . The aim of the initiative was to gain a competitive advantage over its competitors in e-commerce. Thanks to the online platform developed, customers can determine how well the shirt they are buying fits them by entering their body size.

The platform also helps Fits.me gain better customer insight as previously unknown customer data, including body measurements and fit preferences, becomes available. In this way, the platform can offer customers the clothes that fit them better.

• Business challenge : Lack of visibility into  online sales and customers’ preferences.
• Target customers : Online buyers and users.
• Line of business function : Sales and customer success management.
• Solution : Outsourcing the development of the online platform to Fits.me Virtual Fitting Room .
• Business result : Improved customer satisfaction and engagement. Thomas Pink reports that customers who enter the virtual fitting room are more likely to purchase a product than those who do not. There are many successful digital transformation projects from different industries, but we won’t go into every case study. Therefore, we provide you with a sortable list of 31 successful case studies. We categorized them as:
• System Improvement : changing the way existing businesses work by introducing new technologies.
• Innovation : creating new business practices, based on the latest technology.

If you are ready to start you digital transformation journey,  you can check our data-driven and comprehensive list of digital transformation consultant companies .

To find out more about digital transformation, you can also read our digital transformation best practices , digital transformation roadmap and digital transformation culture articles.

You can also check our sustainability case studies article which include ESG related success stories.

For any further assistance please contact us:

This article was drafted by former AIMultiple industry analyst Görkem Gençer.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

AIMultiple.com Traffic Analytics, Ranking & Audience , Similarweb. Why Microsoft, IBM, and Google Are Ramping up Efforts on AI Ethics , Business Insider. Microsoft invests $1 billion in OpenAI to pursue artificial intelligence that’s smarter than we are , Washington Post. Data management barriers to AI success , Deloitte. Empowering AI Leadership: AI C-Suite Toolkit , World Economic Forum. Science, Research and Innovation Performance of the EU , European Commission. Public-sector digitization: The trillion-dollar challenge , McKinsey & Company. Hypatos gets $11.8M for a deep learning approach to document processing , TechCrunch. We got an exclusive look at the pitch deck AI startup Hypatos used to raise $11 million , Business Insider.

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Digital Transformation Examples: 3 Company Case Studies

Learn how three legendary companies—Walmart, Ford, and Anheuser-Busch InBev—improved customer experience by focusing digital transformation around data.

Digital transformation is a process by which a company invests in building out new digital products and services in the effort to rethink the business around digital. An effective digital transformation improves customer experience and enhances the way a company operates behind the scenes.

To digitally transform, your business needs to deploy new products and technologies. With these new products come new ways to connect with your customers and more data to inform roadmaps and strategies.

Once the investment in digital begins, your business can use new products and data to identify growth opportunities. The three case studies below—from Ford, Walmart, and Anheuser-Busch InBev—show how legendary companies went beyond simply creating an app and truly re-thought how digital efforts supported sustainable growth for the business.

• Digital transformation brings about new products and services that improve the customer experience.
• Digital transformation can also be an investment into new systems, goals, and methodologies that make internal processes more efficient.
• Digital transformation gives you more informative behavioral data and more touchpoints with the customer.
• You can leverage the new data gained from digital transformation efforts to further improve the customer experience and drive sustainable growth.
• AB InBev, Walmart, and Ford used investments in digital technology to accelerate internal processes and deploy new digital products that, consequently, provided valuable data on the customer experience and influenced future business investments.

3 examples of digital transformation through data

Here are three examples of legendary companies that embarked on digital transformation with a focus on data. These companies carefully considered how new technology could bring about data that both made internal processes more efficient and produced insights about how to grow customer value.

Brewing company AB InBev underwent a digital transformation by compiling their network of independent breweries into a unified powerhouse . One of their priorities was getting their data in the cloud, and by doing so, employees can now pull data that’s gathered globally and use it to make data-backed decisions.

For example, more accurate demand forecasting means AB InBev teams can match supply with demand—essential for such a large company with a complex supply chain. Access to data from all the breweries means they’re able to experiment faster and roll out changes that improve business processes.

Gathering more data and opening up that data to internal teams was just the first step of the process, though. AB InBev capitalized on their digital investments by launching an ecommerce marketplace called BEES for their SMB customers—the “mom and pop shops”—to order products from. With the BEES platform, AB InBev found that their small and medium-sized businesses browsed the store on the mobile app and added items to their cart throughout the day—however, they only made the final purchases later in the evening.

Based on this behavioral data, the BEES team started to send push notifications after 6:00 p.m., recommending relevant products, which led to increased sales and greater customer satisfaction. By the end of June 2021, BEES had gained over 1.8 million monthly active users and had captured more than $7.5B in Gross Merchandise Volume .

Jason Lambert, the SVP of product at BEES, credits their success with the hard data that told them how their customers behaved and what they needed: “it turned out to be a thousand times better than any of our previous strategies or assumptions.” BEES used behavioral analytics to respond quickly, changing the buying experience to match the needs and habits of their retailers.

As a traditional brick-and-mortar retailer, Walmart began digital transformation when they opened an online marketplace. However, digital transformation is an ongoing process—it doesn’t end at the first website. A digital transformation means companies refocus their operations around digital technology—and this usually happens both internally and in a customer-facing way.

To drive more customer value through digital touchpoints, Walmart set up mobile apps and a website to allow customers to purchase goods online. After analyzing customer behavioral information from their app, they added more services such as same-day pickup, mobile ordering, and “buy now, pay later.”

To be successful with digital transformation, Walmart prioritized data access for everyone on their teams. Breaking down internal silos allowed employees to take ownership; They acted fast and made concrete changes to improve the customer experience.

Walmart’s head of mobile marketing, Sherry Thomas-Zon, notes how critical data—and access to data—are to digital operations. “Our marketing and product teams are always looking at numbers,” Thomas-Zon said. “You can’t work quickly without a self-service data and analytics tool for marketing, especially in an organization as large as Walmart. It keeps our teams agile, despite our size and the increasing amount of data we collect and analyze.”

Ford has embraced several digital transformation initiatives—including using technology to transform and improve the manufacturing process at one of its biggest factories. Not having the correct parts available holds up workers and slows down the production process. Ford introduced a material flow wireless parts system so they could track the quantities of different parts and make sure there were enough available.

In 2016, Ford also introduced a digital product for their customers—the FordPass app . It allows Ford owners to remotely control their vehicles. For example, drivers can check their battery or fuel levels and lock or unlock their car from their phone.

To capitalize on these new digital touchpoints with the customer, Ford leveraged data to improve the experience of the FordPass app. First, the product team grouped customers based on the in-app behaviors they demonstrated. Then, based on each group’s activity, Ford personalized the app experience to provide more value. Jian Wei Hoh, head of business design at Ford, said, “ Designing around cohorts is a game-changer .”

Ford’s success is grounded in the same process as Walmart and AB InBev. They used their digital transformation to gather detailed information about how their consumers interact with their products. Then, they made data-led decisions to provide more value to their customers.

Overcoming common digital transformation challenges

It’s not called a transformation for no reason. You’re changing the way your business operates, which is no easy feat. Here are the common challenges you’ll face and how to overcome them.

Teams undergoing a digital transformation have to:

• Unlearn habits
• Get used to new structures and ways of collaborating
• Deal with changing roles
• Develop new skills

All of this takes time and, as you integrate new systems with the old, there’s a risk that teams will get siloed and chaos will ensue.

A key way of overcoming these challenges is planning. Create a digital transformation strategy roadmap in advance. Outline your integration strategy and detail how this will affect each team. Once you’ve created your plan, share it with the entire company, so everyone can use it as a single reference point. Use a project management tool that allows team members to get a big-picture overview and see granular details like the tasks they’re responsible for.

It takes time for teams to onboard and move away from what was successful under the previous system, for example, shifting from heavyweight to lightweight project planning. Make sure you factor some breathing space into your roadmap—give everyone a chance to get used to the new way of operating.

As part of a digital transformation, you’ll want your team to develop new skills as well. Upskill your team by incorporating digital skills into your employee development plans . Provide people with opportunities to learn and then track their progress.

More challenges arise if you believe there’s an end-state to digital transformation. New technology and new consumer behaviors are always emerging, which means digital transformation is an ongoing process. It’s not something you’ll complete in a week. Rather, it’s a continuous state of experimentation and improvement. At Amplitude, we refer to this process as digital optimization . If digital transformation brings new products, services, and business models to the fold, then digital optimization is about improving these outputs. Both digital transformation and digital optimization are important—digital transformation signals the start of new investments, and digital optimization compounds them.

Tips for building a digital transformation strategy

A digital transformation won’t magically grant you more profit. Examine how each part of the transformation will affect your customers and your employees. Then, you can be intentional and introduce initiatives that positively impact your business.

Diagnose what you want from a digital transformation first

There are different ways of going about a digital transformation. Some companies prefer to implement an all-inclusive digital strategy, and they transform all parts of their organization at the same time. Others opt for a less-risky incremental strategy. Every company is different. To choose the best approach, examine your whole organization and analyze where digital systems could help.

Consider your business goals. Investigate how a digital transformation could impact the customer experience. What new products could you provide? How could you improve your services? For example, you might use artificial intelligence to create a chatbot that reduces customer service wait times—or purchase software that does the same.

You’ll also want to consider your business processes. How could a digital transformation speed you up? Improve your operations? Allow more collaboration between teams? Asking these questions allows you to challenge the way you operate and will help you identify problems in your organization that you might not have noticed before. For example, perhaps your deliveries are often delayed, and you could make delivery smoother by digitizing elements of your supply chain .

Get cross-team involvement

Though different teams may work separately, your customers are affected by each department. Collaboration elevates everyone’s work because it means people can make informed decisions.

Make sure you get input from all of the right stakeholders when you create your digital transformation strategy. Ask:

• What processes hold you up?
• Where are the bottlenecks?
• What data would be useful for you?

Allow everyone to access the data they need without input from anyone else. Help your employees improve their data literacy . Start by providing training so everyone can use the data tools and software in your organization—consider setting up a capability academy for data skills . To help everyone in your organization access and analyze data, adopt easy-to-use self-service tools. Then, lead by example. Provide inspiration by using data storytelling in your presentations to explain the decisions you make.

Encourage collaboration between teams by creating shared resources, so they have spaces to present insights and submit suggestions. This could be as simple as creating a Google Doc for brainstorming that multiple teams can access, or sharing charts directly within your analytics solution like with Amplitude Notebooks . Then, you can start to experiment and make improvements to the digital customer experience like Walmart, Ford, and AB InBev did.

Once your digital transformation is moving, a digital optimization strategy is an opportunity to generate growth. Your digital transformation initiatives will continue in parallel, and the process will become a feedback loop:

• Deploy new digital systems and products
• Analyze the data that comes forth from these investments. Use it to draw insights about your customers or processes.
• Make decisions based on the data and make changes.
• Repeat. (Or, optimize .)

Always focus on your customers

Keep customer needs at the heart of what you do. Let them be your guiding light as you go through your digital transformation—as you gather more data about how your customers interact with your new digital products, use it to make the experience even better for them. It’ll lead to more trust and loyalty and, ultimately, result in more recurring revenue.

To continue your learning about digital transformation and optimization, join an Amplitude workshop or webinar or read our Guide to Digital Optimization .

• MIT Sloan. How to build data literacy in your company
• McKinsey & Company. Digital transformation: Raising supply-chain performance to new levels
• Harvard Business Review. Boost Your Team’s Data Literacy
• Datanami. From Big Beer to Big Data: Inside AB InBev’s Digital Transformation
• Predictable Profits. How Ford Embraced Digital Transformation
• APMG International. Heavyweight v Lightweight Management
• Whatfix. Upskilling Your Workforce in 2022

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30+ Digital Transformation Case Studies & Success Stories [2023]

• March 17, 2024
• by Terry Tolentino

Digital transformation has been on the executive agenda for the past decade and ~90% of companies have already initiated their first digital strategy. However, given the increasing pace of technological innovation, there are numerous areas to focus on. A lack of focus leads to failed initiatives. Digital transformation leaders need to focus their efforts but they are not clear about which areas to prioritize for their digital transformation initiatives.

As a web scraping and data extraction expert with over 10 years of experience, I have seen firsthand how critical it is for companies to carefully evaluate and select focus areas when undergoing digital transformation. Based on my analysis of hundreds of case studies and client engagements, I recommend enterprises initially focus their efforts on digitally transforming customer service and operations functions.

Key research findings:

Outsourcing is an important strategy for many companies‘ digital transformation initiatives. Research shows that more than half of companies outsource some digital capabilities and many rely on external partners to provide expertise.

Most successful digital transformation projects focus on customer service and operations. According to Forbes , 86% of buyers will pay more for a better customer experience. Enhancing these functions through digital transformation can directly impact customer retention and revenues.

JioMart is one of the largest Indian e-commerce companies that focuses on online grocery shopping, fashion, and home essentials. In May 2020, JioMart was completely launched in 200 Indian cities. They offer over 50,000 products and process more than 250,000 orders per day.

Business challenge: Inability to accommodate the high demand for their services and volume of orders. The company was experiencing 3x more traffic than anticipated. According to JioMart, order volumes spiked from 10,000 per day to over 250,000 per day within weeks of launching. Their systems were not built to handle that scale.

Target customers: Mass population. JioMart targets India‘s price-sensitive consumer base of 1.3 billion citizens, especially those in tier 2 and 3 cities.

Line of business function: Customer success management and sales.

Solution: JioMart collaborated with Haptik to develop a WhatsApp chatbot to scale its customer service efforts. The chatbot provides 24/7 automated customer support and handles over 70% of JioMart‘s customer queries.

Business result: 68% repeat purchase rate through the WhatsApp channel , 15% conversion rate and 1500 average daily orders. The chatbot was able to resolve customer issues quickly at scale, driving higher satisfaction.

Source: Haptik

Michelin-EFFIFUEL

Michelin, a global tire manufacturer, launched its EFFIFUEL initiative in 2013 to reduce the fuel consumption of trucks. In this context, vehicles were equipped with telematics systems that collect and process data on the trucks, tires, drivers habits and fuel consumption conditions. By analyzing this data, fleet managers and executives at the trucking companies were able to make adjustments to reduce oil consumption.

Business challenge: Inability to improve customer retention rates to target levels, due to trucks’ fuel consumption and CO2 emissions . Michelin found fuel costs account for over 30% of operating costs in the trucking industry. This impacts profitability and customer retention.

Target customers: Fleet managers and operations managers at truck companies in Europe

Solution: By using smart devices, truck and tire performance degradation is detected and maintained from the start. The solution also nudges truck drivers into more cost and environmentally friendly driving. Real-time data enables proactive maintenance.

Business result: Enhanced customer retention and satisfaction. EFFIFUEL has brought fuel savings of 2.5 liters per 100 kilometers per truck. The company also reduced the environmental costs of transportation activities. According to Michellin, if all European trucking companies had been using the EFFIFUEL initiative, it would have caused a 9 million ton reduction in CO2 emissions.

Schneider Electric-Box

Schneider Electric is a global company with over 140,000 employees across 100+ countries. Prior to implementing the Box content cloud , collaboration and document sharing processes were inefficient and fragmented. With a dispersed workforce, it was difficult to collaborate on documents in real-time from different locations and devices.

Schneider Electric also needed to balance flexible access with strong data security protocols for its sensitive corporate information. These challenges led them to outsource and customize an enterprise cloud solution from Box.

Business challenge: Inability to increase operational efficiency of the global workforce without capitulating to data security.

Solution: Schneider Electric outsourced its cloud needs to Box, customizing a secure content platform integrated with Microsoft Office 365. Box provided:

• Real-time document collaboration across locations and devices
• Granular permissions and content controls
• Integration with Microsoft Office apps
• Enterprise-grade security and compliance

Business result:

• Reduced IT infrastructure costs by 30% by eliminating legacy on-premises servers
• Accelerated time-to-market cycles company-wide
• Seamlessly connected 142,000 employees worldwide on one platform
• Safely migrated over 90% of content to the cloud

The Box implementation enabled Schneider Electric to digitally transform content collaboration and management globally, with substantial gains in agility, productivity and security.

Thomas Pink-Fits.me

British shirt maker Thomas Pink, part of the Louis Vuitton Moet Hennessey group, has outsourced the development of its online sales platform to Fits.me Virtual Fitting Room . The aim of the initiative was to gain a competitive advantage over its competitors in e-commerce. Thanks to the online platform developed, customers can determine how well the shirt they are buying fits them by entering their body size.

The platform also helps Fits.me gain better customer insight as previously unknown customer data, including body measurements and fit preferences, becomes available. In this way, the platform can offer customers the clothes that fit them better.

Business challenge: Lack of visibility into online sales and customers’ preferences. Thomas Pink had limited customer data from online sales. Most purchases occurred in physical stores.

Target customers: Online buyers and users. With this initiative, Thomas Pink specifically targeted digital-first consumers.

Line of business function: Sales and customer success management. The virtual fitting room enhanced the online shopping experience.

Solution: Outsourcing development of an online virtual fitting room to Fits.me.

• 29.6% higher conversion rate for customers using the fitting room
• Increased customer satisfaction and engagement
• Unlocked valuable customer body measurement data to inform production

There are many more successful digital transformation projects from different industries. To summarize, I have compiled a sortable table of 32 case studies categorized by industry, business function, and type of digital transformation:

This demonstrates the range of business functions and solutions companies leverage to digitally transform operations, services, products and business models.

While each company‘s needs are unique, customer-centric functions like customer service, sales, and marketing are common focus areas. Improving these through digital capabilities directly impacts customer acquisition, retention and satisfaction.

Similarly, digitizing operations functions like manufacturing, supply chain and internal systems improves efficiency, drives growth and enhances workforce productivity.

Based on my expertise in extracting and analyzing digital transformation data points, companies able to correctly prioritize and focus efforts yield the highest ROI. They balance long-term innovation with short-term improvements to existing systems.

Let me know if you would like me to expand on any specific case study or trend highlighted here. I can provide additional details, examples and data.

If you are ready to start your digital transformation journey, you can check our data-driven and comprehensive list of digital transformation consultant companies .

To find out more about digital transformation, you can also read our digital transformation best practices , digital transformation roadmap and digital transformation culture articles.

You can also check our sustainability case studies article which include ESG related success stories.

For any further assistance please contact us:

Transparency Statement: AIMultiple collaborates with many technology vendors including Haptik .

This article was drafted by former AIMultiple industry analyst Görkem Gençer.

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Home » Digital Transformation » The Top Digital Transformation Success Stories

The Top Digital Transformation Success Stories

• Updated April 8, 2024

Digital transformation (DX) means implementing technology into your business processes to achieve organizational growth. Its benefits include process efficiency, increased customer satisfaction, and better employee engagement. 

However, it can be hard to get right, and Digital transformation initiatives can easily fail .

Global spending on DX doubled from 2017 to 2022 (as data from Statista shows ), and shows no sign of slowing. So any business investing its precious resources into digital transformation has got to learn from the best examples.  

That’s what we’ll do in this article by looking at how IKEA, Armstrong, Capital One, Microsoft, and Nike all found a way to maximize the outcomes of their digital transformation projects. 

Using high-impact digital adoption strategies , these companies set a great example for any organization that wants to improve its digital capabilities.

What is digital transformation?

When a company goes through a digital transformation, it implements digital solutions to make a positive change to the organization. Transformation projects can be tiny, vast, or any size in between. 

Digital transformations can look very different between companies. It might be a new standalone online portal, a centralized system to manage human resources, or a complete re-configuration of a business. But they all count as digital transformations. 

Digital transformation does not happen in isolation from other business activities. Every digital transformation requires an effective and appropriate strategy. This means looking at the entire company and thinking about what changes would benefit the most people. Once you have your goals, you can start developing a plan to make your transformation happen.

Digital transformations can be challenging to implement, but the rewards can be great. With a successful transformation, you can improve your company’s bottom line and make it more agile and responsive to change. 

However, at the start of a project it’s difficult to predict the difference between success and failure . But what do industry insiders have to say about the building blocks of a great digital transformation? Let’s take a look. 

What are the four areas of the digital transformation process

There are many competing ways of judging how to deploy new digital technologies effectively and efficiently. However, the four main areas of digital transformation include: 

• Customer Experience. Digital transformations should improve the service that customers get from a company. Even when the transformation affects internal processes, management should focus carefully on the end result.
• Data & Analytics. Companies can find ways to gather precise data across their systems, providing a stable basis for future decision-making.
• Cloud Computing. The cloud is a vital tool for digital transformation, enabling software provision and data sharing that would have been unthinkable a decade ago.
• Mobility. Software and digital technology are used across many devices. Digital transformation does not just happen on desktop PCs. It travels wherever processes can be improved.

A small-scale digital transformation may develop just one of these areas. But a truly digital workplace will excel in all of them.

The value of digital transformation 

There are huge benefits of digital transformation .  

As with any innovation, they are intended to improve operational efficiency, increase organizational agility, and create a competitive advantage that leads to revenue growth.

The specific improvements of a digital transformation journey will depend on the business, the transformation strategy, and the intended outcomes. 

However, some benefits can include the following:

• Improved customer experience
• Greater market reach
• More efficient supply chains
• Greater employee productivity and job satisfaction
• Well-targeted marketing campaigns

In short, digital transformation can positively impact every area of a business.

The state of digital transformation

Businesses are continuing to imagine and re-imagine what digital transformation should look like. Across different industries, we see improved services, better customer engagement, and company relevance. So, digital laggards now have many examples for inspiration and guidance.

Some recent transformations include:

• McDonald’s in Italy streamlined their procurement processes through an online portal;
• Domino’s Pizza utilized the internet of things to help customers place orders;
• Hasbro used data about their customers to improve their advertising and marketing;
• UCIS reduced paper use by adopting digital applications using AWS cloud computing.

These cases illustrate the varied roles technology can play in an organization. The best companies will not be interested in “off-the-shelf” solutions. Instead, they will find new ways to deal with their fundamental problems. 

The top digital transformation success stories

If you want to know how companies adapt to a changing digital landscape, it’s essential to look at some case studies. From the many success stories out there, the following five companies are incredibly successful examples of large-scale digital transformation that are highly relevant. Through Ikea, Armstrong, Capital One, Microsoft, and Nike, we get a much better view of how digital transformation works.

IKEA dominates the global furniture industry. The company has done this by adapting to new working practices. Their digital adoption strategy has recently helped them keep their competitive advantage over other companies.

IKEA’s stores used to be very different from an eCommerce platform. But when they started to prioritize the digital side of their business, online sales tripled. Their brick-and-mortar stores now act more like fulfillment centers than retail outlets. Even within stores in selected countries, customers can now pay for their purchases without going through the checkout.

The example of IKEA shows how a full digital transformation process can help a company to stay relevant. If you want to know more, take a look at Thomas Stackpole’s write-up in the Harvard Business Review. 

Armstrong World Industries

AWI is one of the USA’s leading manufacturers of ceilings and walls, bringing in a revenue of over $1 billion in 2021.

Armstrong’s digital transformation started by improving weaknesses in its financial processes. This meant investment in Enterprise Resource Planning (ERP) software, transparent spending, and attention to cybersecurity.

These improvements became the basis of further digital strategies to support customers through their buying journey, with a massively improved website and customer services.

For Armstrong, the digital transformation started with financial systems but ended up providing a fully improved customer experience.

Capital One

Capital One has used new artificial intelligence technologies to provide brilliant customer service. As one of the first banks to manipulate Amazon’s Alexa-enabled devices, their customers can now quickly get the information they need when they need it.

By asking, “what’s my balance?” , “How much is my next car payment?” and “what’s the due date on my next credit card bill?” customers get answers without even logging in to online banking.

Capital one shows how a focused digital adoption strategy can improve customer service. Their digital transformation project reconfigured only part of the business. At the right time, small interventions can produce very effective changes. 

If Capital One sounds like a useful example for you, you can find out more about it in a more detailed analysis in Forbes .  

Microsoft have been leaders in software innovation since the dawn of home computing in the late 1980s. But faced with the advent of cloud-based software systems in the early 2000s, their long-established distribution model suddenly seemed dated.

Their digital strategy was to completely overhaul their delivery systems, using their proprietary cloud solution. They launched Microsoft Azure in 2008. Azure has now become the 2nd biggest cloud provider in the world, providing a vast range of digital services for individuals and companies of all sizes.

As market leaders, Microsoft could have chosen to behave like Blockbuster video. Instead, they made a shrewd decision to completely update their digital strategy. If they never launched that radical change program, they could have been history. 

Our article on Microsoft Azure gives you the full lowdown on this valuable product. 

Nike, the global sportswear leader, showcases the excellent results that digital transformation initiatives can create.

Nike’s entire approach to branding, sales, and technology has changed.

They now focus on becoming a robust direct-to-consumer brand, reducing their retail partnerships, and increasing their work to create online sales. Programs like Nike Training Club collect detailed consumer data and use advanced analytics to make sense of the patterns. Smaller physical stores now do a lot of work to promote the Nike brand.

Behind the scenes, they use headless commerce to develop multiple online sales channels, with particular expansions into mobile apps and technology.

Like IKEA, Nike has dominated their market section for a long time. Their success in digital transformation means that they will continue to dominate. Instead of sticking with what they know, they’ve taken risks that have paid off. As a result, they’ve become a trend-setter in digital infrastructure, who are even used as a case study for teaching up-and-coming IT change leaders . 

Why are some businesses more successful than others at DX?

Companies like Nike, IKEA, and Microsoft, make digital transformation look easy. These success stories are inspiring. However, not every digital transformation project succeeds. And when digital transformation fails, it fails big, sucking in money, limiting sales, and destroying staff morale.

The problems are rarely just technical. Failure usually comes about when the implementation is poorly planned. Some fundamental issues may include the following:

• No vision for the transformation;
• Poor communications across the organization;
• Lack of buy-in from staff;
• Poor timing.

There are ways of preventing these problems. For example, using a digital adoption platform as the backbone of digital organizational changes can support leaders in making effective decisions when planning organizational change adoption . 

IT consultants and digital transformation frameworks can also significantly impact the chances of success.

How every business can remain transformative in an uncertain climate 

Current business leaders and employees globally have lived through some of the most uncertain years in a generation. 

When a crisis comes, digital transformation initiatives can learn from models of “complex change”. Organizational change is complex when it is made challenging by one or more factors, including crises, employee resistance, and financial demands. 

Advanced managerial models, such as the Lippitt-Knoster model of complex change, can provide the help organizations need to keep moving forwards. 

How To Drive Successful Digital Transformation

Driving a successful transformation is all about developing the right culture and using the right strategies. Here are some important areas that will help you create your own success story: 

• For digital adoption, the employees in an organization can create more problems than the technology itself. At every stage of the process, staff must be encouraged, trained, and listened to. With their investment, it will be possible for a transformation to succeed.
• Digital infrastructure also should be part of the solution. A Gartner report shows that by 2025, up to 85% of business operations will be built on cloud services . Cloud solutions are now a proven way of securely handling transformation. An efficient cloud platform sounds like a big change, but it will help the whole process.
• As the transformation process progresses, collecting data is more critical than ever. Leaders can use data to understand the employee experience and ensure that supply chains are moving appropriately and technology is utilized effectively. A digital adoption platform is one way to make technical data collection much easier.
• Find a management style that will help the business to keep up with the complex change. Agile methods are a proven method of success, giving leaders and employees the tools they need to change and adapt as a change process goes on.

Looking Forward: The Future of Digital Transformation & Business Success 

Businesses that want to use future technology successfully must learn how to embrace change. As new technologies emerge, leaders must find new ways of dealing with their problems. 

Some strategies that will improve the chances of success include: 

• Find opportunities to automate wherever possible. Automating routine tasks is one of the most straightforward applications of new data systems. More importantly, it can be accomplished without overall changes to the business. 
• Create opportunities for continual training and learning . Get staff up to speed on the solutions your leaders are investigating. Send them on specialist courses. Introduce learning opportunities within the company. If staff get stuck in their old ways, they will be less willing to adapt to new challenges. 
• Consider alternative business models and organizational structures. As the examples above illustrate, a complete digital transformation goes hand in hand with significant changes to the organization’s overall working model. When a business continually considers its options, it will be better placed to adapt to changing markets.
• Foster an agile mindset in every employee. Agile management techniques are one of the best ways to achieve successful change. When employees can approach tasks in an agile way, they will be ready for anything. 

Learn How to Drive Growth From Success Stories 

Just like any change management project, digital transformation is complicated and risky. But the best research routinely shows that it’s well worth the trouble. In July 2023, analysts from McKinsey showed that digital leaders could achieve shareholder returns of 8.1% – in comparison to 4.9% for digital laggards.   

When companies proactively look for a digital transformation roadmap that suits their business goals, they unlock new ways of doing business in the modern age. The examples in this article show just a few ways of achieving that goal. Some research suggests that leadership makes the key difference – but really, building a culture of digital transformation is a company-wide priority.  

So if you’ve enjoyed hearing about the top digital transformation success stories, keep on reading, thinking, and exploring, and you’ll find the innovations your company needs. 

A wonderful team of Digital Adoption, Digital Transformation & Change Management Experts.

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The Value of Digital Transformation

• Eric Lamarre,
• Shital Chheda,
• Marti Riba,
• Vincent Genest,
• Ahmed Nizam

A team at McKinsey tracked the performance of 80 banks over four years to identify exactly how their transformation efforts paid off — and how others can follow suit.

While 89% of large companies globally have a digital and AI transformation underway, they have only captured 31% of the expected revenue lift and 25% of expected cost savings from the effort. Until business leaders are convinced of the value and confident in how to get it, they are unlikely to do the difficult, hands-in-the-dirt changes needed to improve their success rate. To see where digital transformation creates value, the authors used McKinsey’s Finalta benchmark, which tracked the performance of 80 global banks every year from 2018 to 2022 against a set of 50 normalized metrics, such as digital/mobile adoption, digital sales by banking product, number of people in contact centers, and number of branches. They found that digital leaders are creating much more shareholder value than laggards, often by creating value that’s hard to copy.

“Show me the money!” Cuba Gooding Jr., playing Rod Tidwell, made those words a cultural touchstone in the movie Jerry McGuire . He was not just voicing his concerns about committing to a sports agent, played by Tom Cruise in this case; he was also questioning Cruise’s commitment.

• EL Eric Lamarre is a senior partner in McKinsey’s Boston office, leader of the Digital Practice in North America, and coauthor of REWIRED .
• SC Shital Chheda is a partner in McKinsey’s Chicago office, and co-leads the Digital Retail Banking practice and leads the Client Experience in Banking practice in North America.
• MR Marti Riba is a Partner in McKinsey’s Boston office, and co-leads the Digital Retail Banking practice in North America.
• VG Vincent Genest is an Associate Partner in McKinsey’s Boston office, and co-leads the Digital Retail Banking practice in North America.
• AN Ahmed Nizam is a senior insights manager in McKinsey’s Chicago office, and leads Finalta’s Impact partnership practice.

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How Digital Transformations Succeed

This piece provides a starting point for understanding digital transformation and creating an effective strategy, with case studies, research, and a six-part framework for success.

By Toptal Research

Toptal is an exclusive network of the world’s top freelance developers, designers, finance experts, product managers, and project managers.

New technologies shift consumer expectations, challenge norms, and put pressure on organizations to respond. The pace can be bewildering. For organizations—from grocery chains to advertising agencies —hoping to remain viable, the litmus test is adaptivity, agility, and innovation. It’s not about bracing for a tidal wave, it’s learning how to surf.

This piece provides a starting point for understanding the digital transformation journey better and creating an effective digital transformation strategy. We’ll cover the following:

• What digital transformation is (and what it isn’t)
• Why talent is the core factor for digital transformation objectives
• How one company’s digital transformation initiative resulted in a stock rise of 35%
• Major trends driving digital transformation disruption in 2020 (and beyond)
• A cautionary tale, why some digital transformations fail (and a case study)
• The six attributes of a successful digital transformation framework, with case studies

What Is Digital Transformation?

The computerization and digitization of processes is nothing new , but digital transformation is more critical now than ever. Businesses have to embrace digital methodologies to remain relevant; and senior executives continue to list digital transformation among their top business concerns.

Definitions vary, but for the purpose of this article, we’ll define digital transformation as follows:

Digital transformation is the holistic process by which an organization redefines and betters itself using the digital technologies which metamorphosize business and society at large.

Digital transformation is a continuous evolution. Too commonly, organizations see digital transformation goals as an end point. They decide to “do” digital transformation. “Digital is not just a thing that you can buy and plug into the organization,” warns the Harvard Business Review . The digital transformation journey encompasses much more than simply rolling out apps or redesigning a website. It’s about fundamentally redefining an organization’s business operations and customer experience through digital technologies and creating a company that’s actually stronger and more agile than it previously was.

Organizations can lay the groundwork for a successful digital transformation by first solidifying commitment from the organization’s C-suite and senior leaders, recommends a Forrester report . Without decision-makers at the top to greenlight critical moves—like bringing in a new hire or team to modernize an outdated CMS, for example—progress will stagnate. With executive support, the organization can kick off a digital pilot project, like converting a single, minor business function to digital. Once confidence around a successful digital initiative is established, the organization can move forward with more experimental and bold projects.

For companies that can leverage the correct strategies, the benefits of digital transformation can be both reinforcing and lucrative (as in the case studies referenced below). Digital transformation’s primary advantage is to keep the organization relevant, adaptable, and competitive amidst a shifting landscape. Transformative efforts can redefine a business’s approach to customer strategy, consolidate operations, improve agility and streamline the enterprise’s products and services.

Digital Transformation Starts with the Right Talent

The digital transformation process isn’t plug-and-play. It has everything to do with who manages and executes the change program; an organization-wide program must also have the right talent across the organization. It turns out that’s more difficult than ever in today’s job market. A 2018 Gartner skills survey revealed that 70% of talent do not have the digital skills they need for their jobs today; 64% of managers don’t think their employees can keep up with skill trends.

Joint research from Deloitte and MIT Sloan Management Review say talent-related roadblocks are the number one operational and cultural digital transformation challenge. Business leaders investing in digital transformation objectives want talent with a blend of business skills and highly technical acumen, but it’s a difficult middle ground to locate. This leads organizations to a “build or buy” dilemma—whether to go outside the organization or develop from within. Experts suggest doing both. Gartner’s research points to connected learning, as opposed to continuous learning, which it says can increase skill shift preparedness by as much as 39%. This mode of learning anticipates skills which will be critical to a given market and provides resources to employees for learning them. Healthcare software company Cerner is taking this approach head-on, for example, reskilling 10,000+ employees, including software programmers who aren’t fluent in modern programming languages.

Adaptivity is critical to transformational efforts; creating an adaptive organization starts with talent that can quickly reskill or upskill, shifting focus as the needs of the organization dictate.

Digital Transformation Meets Fast Casual: Chipotle’s Story

Brian Niccol took up the mantle as CEO of Chipotle in 2018 and inherited a struggling company. The struggle was mainly due to reported incidents of E. Coli and norovirus outbreaks, which resulted in losses in store sales as great as 20%. Then Niccols stepped in, spearheading an aggressive change program which owes much of its success to digital.

Niccol shifted Chipotle away from a defensive crouch, emphasizing quality ingredients and subtly introducing a concept of “fast casual.” Niccol also immediately relocated Chipotle’s HQ from Denver to Newport Beach, CA to better attract top-notch talent. His opening moves were essentially a corporate reset.

The biggest shift was to embrace digital completely and redefine the customer experience as a whole. Niccol pivoted digital focus from the back end—improving behind-the-counter operations—to customer-facing friction points. Chipotle branches started incorporating pickup shelves for digital orders that allowed those customers to skip the line (to be rolled out to all Chipotles by mid-2019). Niccol also oversaw a partnership with delivery service DoorDash, increasing its access to new customers dramatically. Drive-through services were added to some locations (“chipotlanes”) and combined with a digital app to provide a highly-customized experience that’s also expedient.

The results? Chipotle’s stock rose 152% in 17 months (as of July, 2019); its digital sales alone boomed by 66% during the last three months of 2018. In Q1 of 2019, Chipotle doubled its digital sales—a 100.7% year-over-year increase. Digital sales made up 15.7% of Q1 2019 sales, representing $205 million. “The digital access, removing friction [. . .] is a big unlock for the Chipotle business,” said Niccol.

Niccol pulled Chipotle out of a disconcerting slump. In doing so, he created a case study for digital transformation growth as an ongoing change program aimed at the entirety of a business. But the success of a digital transformation roadmap relies on much more than integrations and apps. The organization must be primed for agility and responsiveness (more on that below). There’s nothing easy about this. In fact, most digital transformations fail completely

Digital Transformation Trends: AI, XaaS, and RPA

Digital transformation processes are driven by newly-emerging technologies, and experts predict that 2020 will see some of the most exciting, disruptive, and innovative possibilities yet.

Chief among these possibilities, according to Forbes’ Top 10 , is AI and machine-learning. Big data market revenues are projected to increase from $42 billion (2018) to $103 billion by 2027 according to Wikibon; some predictions even suggest a more aggressive trajectory. Organizations need to leverage powerful insights from this data. Automating data analysis, for example, combined with the scale of datasets stored in the cloud, can yield crucial insights.

IDC predicted that, in 2019, 40% of digital transformation initiatives would be supported by AI. It only follows that the need for capable talent to spearhead these initiatives will become even more paramount in 2020 and beyond. The potential of these initiatives cannot be overstated—in some case studies , they’ve saved major companies $330 million in revenue and improved sales forecast accuracy by 15%.

XaaS (everything as a service) is an operating model that delivers IT services via the internet to enterprises. In a Deloitte survey , 71% of IT professionals from major US companies said that XaaS makes up over half of their enterprise IT. XaaS is slated to become a major boon to agility in 2020 and beyond, establishing itself as the new IT operating model. It’s a one-two punch that allows CIOs to upgrade legacy systems to be more efficient, secure, and reliable while simultaneously offering IT services beyond organizational borders, creating a new revenue stream.

One example is Amazon, which extended its own eCommerce solutions to customers. Another classic example is Salesforce, which offered its proprietary sales software as a service in 1999 via web browser.

RPA—robotic process automation—is the fastest growing market in enterprise , according to Gartner. The technology is aimed at automating digital processes that would otherwise be manual. RPA applications can be programmed to capture data, complete transactions, generate an automatic response, deploy bots, and integrate with other digital systems, for example. The result is a substantial decrease in manual task input from employees and reduced operation costs. RPA has seen major success across industries like insurance and healthcare .

By considering trends and aligning accordingly, companies can ensure viability and take advantage of the massive opportunity these digital pivots offer. But adaptive readiness is more than adopting new trends: It begins with organizational mindset.

A Cautionary Tale: Why Many Digital Transformations Fail (The BBC’s Story)

As many as 84% of digital transformations fail, according to Forbes , representing billions in failed efforts. Lots of major brands have come up short in their efforts, resulting in defunding, job loss, and CEO exits. According to a 2017 Harvey Nash/KPMG survey , a mere 18% of organizations self-rated their digital technology practices as “very effective.” Common digital transformation challenges include:

• Talent shortages
• Lack of prioritization
• Operating models that are difficult to adapt to digital
• Attempting a “one and done” transformation rather than an iterative process
• Lack of focused leadership attention
• Insufficient funding
• Lack of clear accountability and ownership for initiatives

A fundamental issue across these roadblocks is lack of digital mindset. Harvard Business Review agrees , citing several mindset-related blunders that are ultimately the responsibility of senior leaders. Many C-suite executives see digital transformation initiatives as an all-in-one solution, something that can be simply slotted into an organization. In the early 2010s, the BBC learned this the hard way.

The BBC’s Digital Media Initiative (DMI) kicked off in 2008 with the intention of fundamentally altering its in-house data management practices and the way it delivered content to audiences. It was the cornerstone of the BBC’s digital transformation model. After a struggling partnership with Siemens, the BBC moved DMI in-house, but came up short because of technical capabilities. It was canceled in 2013: the end result was a loss of over £125.9 million (appeoximately $152 million USD).

Where did the BBC go wrong? First, governance: PwC (PricewaterhouseCoopers) investigated the project and found that it suffered from a lack of executive monitoring and transparent reporting. Second, siloing: The transformational effort did not extend to business operations. The transformation was not overarching, isolated to the program itself rather than a change program which would apply across the organization.

As IT pundit Tony Collins puts it : “[. . .] the BBC’s failed £125.9m Digital Media Initiative is a reminder—as in most failed big IT-enabled projects—that the causes have nothing to do with software and everything to do with management and people.”

6 Keys to a Successful Digital Transformation Strategy

Pivoting to a digital mindset requires a number of shifts and the development of certain underlying traits to be effective. We’ve identified six core elements, which build on one another to create a digital mindset and digital transformation framework. Underpinning this structure is the first key: Leadership.

1. Leadership

Leadership is most critical in times of change and demonstrating the right mindset starts at the top. In one study , organizations with senior leaders familiar with digital technology were found to be 2.3x more successful with transformations. The same increased rate of success was also found in organizations with a dedicated chief digital officer. Digital maturity parallels strong leadership, which sets the tone for the top-down effort that digital transformation requires.

For example, Forbes identifies five qualities of digitally mature leaders:

• Clear purpose in adding technologies to the enterprise
• Forward thinking to locate opportunities
• Perceptivity in optimizing systems which don’t function to their best potential (instead of just fixing what’s already broken)
• Encouragement of innovation and experimentation; praising failure as a learning opportunity
• Embracing partnership opportunities that serve the business’s end goals

Without the support of CEOs, CIOs, and other leadership roles, transformational efforts stand on weak footing. In the BBC case study cited above, failed reporting structures and governance fall on the shoulders of then-technology chief John Linwood, who was eventually fired. “The BBC Executive did not have sufficient grip on its digital media initiative programme,” said the head of the National Audit Office . In this case, the failure of leadership cost the BBC a fortune (not to mention public embarrassment).

2. Boldness

Research suggests the following when it comes to transformational efforts: Be bold. Unless an organization receives a top-down overhaul, it won’t be able to implement a digital transformation framework broadly. Of course, some ramp up is still necessary; in fact, many digital transformations fail because of too much, too soon. Beginning transformational efforts with behind-the-scenes operations, for example, rather than client-facing operations, is a wise approach. Still, the end goal is transformational capability across the organization.

One study found that efforts were twice as broad in organizations with the highest digital maturity. It is not enough for an organization to silo digital transformation objectives to a single function, unit, or even a few units. Data from McKinsey (below) reveals that a transformation effort is not likelier to succeed until the breadth of the undertaking surpasses “multiple business units” and is classified as “enterprise-wide.” Only then does its rate of success become 1.5x as likely.

Nissan CIO Tony Thomas sets a strong example of boldness in action. After his move from GE, Thomas transitioned the entire enterprise (about 240,000 employees) to digital working systems like Microsoft 365, enabled mobile access to corporate applications, and staffed 500 software engineers in a digital hub in India to work on applications like big data analytics and AI applications. Nissan aims to create autonomous vehicles, and Thomas’ bold example across the organization is setting the stage to realize that future.

Digitally mature companies see their organizations as empowered, poised to convert disruptions into advantages. This is agility in action.

Optimizing cross-collaboration between functions is a hallmark of an agile organization. When Armstrong World Industries CIO Dawn Kirchner-King joined the company in 2015, she found the organization was waterlogged by suboptimal digital practices. By embracing agile project management methodologies, she brought a sense of urgency to the company, upgrading and updating CRM systems, travel management systems, and creating a new website. She then reallocated the savings to critical projects like cybersecurity and pivoted the IT team to focus on analytics related to the manufacturing process. Through Kirchner-King’s transformational efforts, the company optimized to shift attention and resources quickly.

Embracing a certain dynamism as pertains to talent allocation and team formation is a necessary element as well. Shifting roles to respond to needs quickly, reorganizing teams for improved efficiency—agile methodologies should be incorporated from a team-structure perspective as well. Rather than viewing talent as a person who fulfills a role, savvy organizations view talent as building blocks that can be rearranged around projects and the shifting needs of the company.

A related tool which organizations increasingly rely on is contingent on on-demand talent. Because the needs of businesses fluctuate so often, assembling teams who can bond quickly around shifting sands is a priority. Because initiatives are increasingly enacted on an experimental or temporary basis, access to contingent staff who can fill in the gaps and increase momentum is a powerful aid to agility and speed.

4. Adaptivity

While the first three keys are vertical, the elements which define transformation in practice are horizontal: No single element outweighs its siblings.

Adaptivity refers to an organization’s capacity to restructure while still remaining secure (and cybersecure). Adaptivity is about incorporating new systems with speed while also staying alert to newer, potentially more effective systems.

Kroger—a grocery company with 136 years of history—is taking digital adaptivity very seriously and reaping the rewards as a result. CEO Rodney McMullen pushed for a digital initiative in 2014; since then, Kroger has grown from no digital sales to $1.5 billion in digital sales in 2018, which he says is trending toward $9 billion annually. With online ordering and pickup, plus a partnership with Instacart, Kroger claims that everyone will be able to shop with them, either offline or online. Kroger also has a 5% stake in a UK online grocer Ocado to build 24 robotically-powered fulfillment centers. McMullen also cites alliances with Home Chef, Walgreens, and Microsoft—partnerships are key in his vision.

Kroger is effectively redefining itself as an omnichannel retailer, infusing its operations with digital and completely adapting to the shifts in the marketplace. Although it sits third in that marketplace (under Amazon and Walmart), there’s enough evidence to suggest these powerful digital initiatives may allow it to close the gap.

5. Data Focus

Data is critical in any digital transformation playbook because it fuels the game-changing insights that AI and machine learning offer. Without that fuel, efforts to utilize these incumbent technologies fall flat. Combined with expert predictions about the role of big data in 2020 and beyond, data is slated to only become more essential. Nuanced data and metrics provide insights which form a solid basis for organizational decision-making: 88 percent of companies with high digital maturity report a positive impact via data use.

Sprint is one major organization leveraging data-driven insights as part of its main strategy. In response to pressure from competitors, CIO Scott Rice is spearheading a campaign that utilizes an open-source software called Elastic Stack to evaluate over 50TB of data. This identifies any potential recurring glitches in customer cycles, which helps Sprint realize why customers aren’t completing a transaction. Rice says that previously, his teams were siloed, meaning the data couldn’t be evaluated as a whole. Going one step further, Sprint is utilizing a “data lake” that helps it make better recommendations to customers. In response, Sprint’s stock has spiked considerably in the second half of 2019.

6. Tech-driven Talent

For successful incorporation, an organization’s talent must be primed for digital change; for many organizations, this is a roadblock.

As referenced above, companies commonly invest in training or retraining programs to bring stakeholders up to speed. The goal for organizations is to craft a company culture—whether through talent acquisition or educational opportunities for existing staff—which mirrors those found in companies that have been digital from Day 1.

When Subway launched its digital transformation initiative, it hired over 150 new employees to fill its digital talent gap. Talent was critical to its digitally-driven initiatives—remote ordering capability via Facebook Messenger, for example, which contributed to a 100% year-over-year growth from mobile ordering. The company also recently rolled out digital menu boards, electronic kiosks, and a separate pickup area for mobile orders. Facing forward, the franchise is evaluating how trending technologies like augmented reality could fit into its system. None of this would be possible without the boost in digital talent the company committed to early on.

With this critical sixth component in place, a business can effectively rewire their organizational mindset to be digitally mature, but more critically, digitally prepared. An organization which uses these structural components as a foundation is predisposed to dynamic response to digital fluctuations.

Digital Transformation: A Gold Rush

The digital transformation landscape might be compared to the 1800s California Gold Rush. The risks are there, but the potential is massive and best practices are being defined in-flight. Companies who want to utilize these transformations to their advantage start with the right talent, define a digital mindset, and create action plans with flexibility in mind. Continuous reevaluation becomes standard.

The very nature of a “healthy organization” is being reexamined. For companies that can adapt the radical mindset-shift that digital transformation demands, the future is full of exciting potential, despite its evolving nature.

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How Amazon Is a Roadmap for Digital Transformation Success

No matter what type of organization you are, it is safe to say that you probably wouldn’t hurt by adopting some of Amazon’s best practices. Many of us interact with Amazon and, depending on what part of the world you are in, Alibaba daily. These are two massive eCommerce providers that have not only revolutionized how we go about shopping on a regular basis, but they have also cemented themselves as an integral part of society. They somehow manage to do this all while maintaining an unparalleled customer experience.

With the world becoming increasingly data-driven every day, we can anticipate the success of these two giants to increase. So, what are some of the lessons we can learn from Amazon ? Which best practices can we apply from these leading eCommerce companies to act as a roadmap for a successful digital transformation , regardless of our industry?

Table of Contents

Ecommerce technologies can provide a template or a blueprint for how we interact with our customers.

Regardless of what product or service we provide to our customers, it is the customer experience that establishes loyalty and trust. Amazon and Alibaba’s fundamental business goal and focus is the distribution of physical products. Yet, that is not what they're best known for. They are best known for the customer experience they create for their consumers.

They simplify the buying process. They make it so easy to find information about a product. They make the ordering process very intuitive. They make shipping, delivery, and even returns incredibly transparent and easy.

All organizations, no matter the industry, need to keep their customer experience top of mind. Taking it a step further to create well-tailored, unique experiences will only drive growth in a company’s reputation and bottom line. Even if you're an organization that doesn't provide retail products or services to customers directly, leveraging the discipline shown by Amazon to put the customer experience above all else should be the foundation of every company’s business decisions.

Integrated data and processes are provided to benefit customers.

We’ve established that Amazon’s focus on the customer experience should be replicated by any organization looking to develop an ongoing relationship with customers. So, how can this experience be made even stronger once it’s refined and established?

Amazon has done just that by creating a one-stop-shop that leverages customer data to provide a shopping experience tailored to each unique customer’s interests. They have also created a diverse shopping experience. An individual can shop for a vintage record player, a vinyl from their favorite band, all while ordering their monthly supply of vitamins in a single order.

Amazon has made the need to stop at multiple stores to buy a list of various items a thing of the past, all in favor of the customer. This not only provides a quick and easy way for customers to make purchases, but it also provides better efficiency and transparency on the back-end operation for Amazon.

Artificial intelligence and machine learning to optimize our customer experience.

If you've spent any amount of time on Amazon or other eCommerce websites, you've likely encountered recommendations that suggest products based on your past behavior, your demographic, where you live, or your income level. These are highly personalized recommendations made to you as a customer, and Amazon is able to do this by utilizing artificial intelligence .

With predictive modeling, the data collected on both your identity and past purchase behavior are used to determine what you may buy in the future. With that information, they have an algorithm that will get a product of interest in front of you.

As for non-eCommerce providers, or if you're in an industry outside of retail, you can also leverage that best practice to determine the best use of your customer data. This will help you anticipate a prospective customer’s needs before they even know what those are, driving sales for your bottom line.

Seek to reduce inefficiencies and costs always.

Amazon is known for its excellent customer experience, intuitive website, and same-day delivery we've grown accustomed to as customers. They have been able to create these pillars in their organization through their supply chain efficiency that they have been able to implement.

As a former client of Third Stage Consulting, we've had a firsthand look into how they automate their warehouses and the robotics they use to continuously fuel their obsession with efficiency, scale, and driving down costs wherever possible. Tactics like opening different distribution centers throughout the world and partnering with suppliers to drop ship to customers are leveraged to focus on efficiency, size, and scale.

When looking at your organization, even if you're not an eCommerce provider, retailer, or direct-to-consumer provider, there are lessons here that can be used to drive out inefficiencies and surplus costs from your company to free up resources better used towards focusing on the customer.

Digital Transformation Case Study.

Third Stage Consulting recently worked with a company that's one of the largest steel manufacturers and distributors in the world. This is likely as far from an eCommerce/technology provider like Amazon as you could possibly be. It's an old-school industry that is entirely structured around business-to-business selling.

Despite being a more mature company in a vastly different industry, they still face the need to leverage technologies to provide a better customer experience. By growing through the process of numerous acquisitions, this client was now in possession of many corporate entities that still functioned as independent companies.

Each company within their organization’s umbrella also came with different technologies, sales reps, and websites. Each company’s purpose was to purchase steel products from different divisions within the enterprise. As you can imagine, they needed to make a change and create a more consolidated experience.

This client decided to embark on a digital transformation to integrate each acquired company’s technology and provide a more consistent and seamless customer experience as part of a commercial excellence initiative.

Step one was to provide more of a consumer-grade type of experience for their customers. They wanted to enable the ease of taking queries to one website, the ease of speaking to one sales rep, and therefore, conveniently getting the full breadth of services and products that this provider offered to their customers from one source.

Step two was to implement the right, full scope ERP system , and business intelligence technology to get better visibility into all their different branches of the organization operating in different parts of the world. Silos had formed across the independently operated parts of the business, hindering efficiency and the ability to share customer data. The newly implemented business intelligence tools gave them visibility into all the different nooks and crannies of the organization.

With that came the ability to drill down in real-time and examine order volumes, customer satisfaction reviews, order defects, and many other crucial business metrics. Having that transparent, integrated data was another essential part of this organization's digital transformation that aided in the ability to optimize the newly refined customer experience by establishing collaboration at an enterprise level.

Begin Your Digital Transformation Journey

If you are seeking more information about best practices related to your digital transformation journey, we encourage you to download our 2021 digital transformation report . If you’d like to discuss your digital transformation in more detail, I am always happy to be an informal sounding board. Don’t hesitate to reach out directly , no matter the status of your project.

Be sure to download the newly released 2023 Digital Transformation Report to garner additional industry insight and project best practices.

Also download our Supply Chain Management Playbook here.

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Five Case Studies of Transformation Excellence

November 03, 2014  By  Lars Fæste ,  Jim Hemerling ,  Perry Keenan , and  Martin Reeves

In a business environment characterized by greater volatility and more frequent disruptions, companies face a clear imperative: they must transform or fall behind. Yet most transformation efforts are highly complex initiatives that take years to implement. As a result, most fall short of their intended targets—in value, timing, or both. Based on client experience, The Boston Consulting Group has developed an approach to transformation that flips the odds in a company’s favor. What does that look like in the real world? Here are five company examples that show successful transformations, across a range of industries and locations.

VF’s Growth Transformation Creates Strong Value for Investors

Value creation is a powerful lens for identifying the initiatives that will have the greatest impact on a company’s transformation agenda and for understanding the potential value of the overall program for shareholders.

VF offers a compelling example of a company using a sharp focus on value creation to chart its transformation course. In the early 2000s, VF was a good company with strong management but limited organic growth. Its “jeanswear” and intimate-apparel businesses, although responsible for 80 percent of the company’s revenues, were mature, low-gross-margin segments. And the company’s cost-cutting initiatives were delivering diminishing returns. VF’s top line was essentially flat, at about $5 billion in annual revenues, with an unclear path to future growth. VF’s value creation had been driven by cost discipline and manufacturing efficiency, yet, to the frustration of management, VF had a lower valuation multiple than most of its peers.

With BCG’s help, VF assessed its options and identified key levers to drive stronger and more-sustainable value creation. The result was a multiyear transformation comprising four components:

• A Strong Commitment to Value Creation as the Company’s Focus. Initially, VF cut back its growth guidance to signal to investors that it would not pursue growth opportunities at the expense of profitability. And as a sign of management’s commitment to balanced value creation, the company increased its dividend by 90 percent.
• Relentless Cost Management. VF built on its long-known operational excellence to develop an operating model focused on leveraging scale and synergies across its businesses through initiatives in sourcing, supply chain processes, and offshoring.
• A Major Transformation of the Portfolio. To help fund its journey, VF divested product lines worth about $1 billion in revenues, including its namesake intimate-apparel business. It used those resources to acquire nearly $2 billion worth of higher-growth, higher-margin brands, such as Vans, Nautica, and Reef. Overall, this shifted the balance of its portfolio from 70 percent low-growth heritage brands to 65 percent higher-growth lifestyle brands.
• The Creation of a High-Performance Culture. VF has created an ownership mind-set in its management ranks. More than 200 managers across all key businesses and regions received training in the underlying principles of value creation, and the performance of every brand and business is assessed in terms of its value contribution. In addition, VF strengthened its management bench through a dedicated talent-management program and selective high-profile hires. (For an illustration of VF’s transformation roadmap, see the exhibit.)

The results of VF’s TSR-led transformation are apparent. 1 1 For a detailed description of the VF journey, see the 2013 Value Creators Report, Unlocking New Sources of Value Creation , BCG report, September 2013. Notes: 1 For a detailed description of the VF journey, see the 2013 Value Creators Report, Unlocking New Sources of Value Creation , BCG report, September 2013. The company’s revenues have grown from $7 billion in 2008 to more than $11 billion in 2013 (and revenues are projected to top $17 billion by 2017). At the same time, profitability has improved substantially, highlighted by a gross margin of 48 percent as of mid-2014. The company’s stock price quadrupled from $15 per share in 2005 to more than $65 per share in September 2014, while paying about 2 percent a year in dividends. As a result, the company has ranked in the top quintile of the S&P 500 in terms of TSR over the past ten years.

A Consumer-Packaged-Goods Company Uses Several Levers to Fund Its Transformation Journey

A leading consumer-packaged-goods (CPG) player was struggling to respond to challenging market dynamics, particularly in the value-based segments and at the price points where it was strongest. The near- and medium-term forecasts looked even worse, with likely contractions in sales volume and potentially even in revenues. A comprehensive transformation effort was needed.

To fund the journey, the company looked at several cost-reduction initiatives, including logistics. Previously, the company had worked with a large number of logistics providers, causing it to miss out on scale efficiencies.

To improve, it bundled all transportation spending, across the entire network (both inbound to production facilities and out-bound to its various distribution channels), and opened it to bidding through a request-for-proposal process. As a result, the company was able to save 10 percent on logistics in the first 12 months—a very fast gain for what is essentially a commodity service.

Similarly, the company addressed its marketing-agency spending. A benchmark analysis revealed that the company had been paying rates well above the market average and getting fewer hours per full-time equivalent each year than the market standard. By getting both rates and hours in line, the company managed to save more than 10 percent on its agency spending—and those savings were immediately reinvested to enable the launch of what became a highly successful brand.

Next, the company pivoted to growth mode in order to win in the medium term. The measure with the biggest impact was pricing. The company operates in a category that is highly segmented across product lines and highly localized. Products that sell well in one region often do poorly in a neighboring state. Accordingly, it sought to de-average its pricing approach across locations, brands, and pack sizes, driving a 2 percent increase in EBIT.

Similarly, it analyzed trade promotion effectiveness by gathering and compiling data on the roughly 150,000 promotions that the company had run across channels, locations, brands, and pack sizes. The result was a 2 terabyte database tracking the historical performance of all promotions.

Using that information, the company could make smarter decisions about which promotions should be scrapped, which should be tweaked, and which should merit a greater push. The result was another 2 percent increase in EBIT. Critically, this was a clear capability that the company built up internally, with the objective of continually strengthening its trade-promotion performance over time, and that has continued to pay annual dividends.

Finally, the company launched a significant initiative in targeted distribution. Before the transformation, the company’s distributors made decisions regarding product stocking in independent retail locations that were largely intuitive. To improve its distribution, the company leveraged big data to analyze historical sales performance for segments, brands, and individual SKUs within a roughly ten-mile radius of that retail location. On the basis of that analysis, the company was able to identify the five SKUs likely to sell best that were currently not in a particular store. The company put this tool on a mobile platform and is in the process of rolling it out to the distributor base. (Currently, approximately 60 percent of distributors, representing about 80 percent of sales volume, are rolling it out.) Without any changes to the product lineup, that measure has driven a 4 percent jump in gross sales.

Throughout the process, management had a strong change-management effort in place. For example, senior leaders communicated the goals of the transformation to employees through town hall meetings. Cognizant of how stressful transformations can be for employees—particularly during the early efforts to fund the journey, which often emphasize cost reductions—the company aggressively talked about how those savings were being reinvested into the business to drive growth (for example, investments into the most effective trade promotions and the brands that showed the greatest sales-growth potential).

In the aggregate, the transformation led to a much stronger EBIT performance, with increases of nearly $100 million in fiscal 2013 and far more anticipated in 2014 and 2015. The company’s premium products now make up a much bigger part of the portfolio. And the company is better positioned to compete in its market.

A Leading Bank Uses a Lean Approach to Transform Its Target Operating Model

A leading bank in Europe is in the process of a multiyear transformation of its operating model. Prior to this effort, a benchmarking analysis found that the bank was lagging behind its peers in several aspects. Branch employees handled fewer customers and sold fewer new products, and back-office processing times for new products were slow. Customer feedback was poor, and rework rates were high, especially at the interface between the front and back offices. Activities that could have been managed centrally were handled at local levels, increasing complexity and cost. Harmonization across borders—albeit a challenge given that the bank operates in many countries—was limited. However, the benchmark also highlighted many strengths that provided a basis for further improvement, such as common platforms and efficient product-administration processes.

To address the gaps, the company set the design principles for a target operating model for its operations and launched a lean program to get there. Using an end-to-end process approach, all the bank’s activities were broken down into roughly 250 processes, covering everything that a customer could potentially experience. Each process was then optimized from end to end using lean tools. This approach breaks down silos and increases collaboration and transparency across both functions and organization layers.

Employees from different functions took an active role in the process improvements, participating in employee workshops in which they analyzed processes from the perspective of the customer. For a mortgage, the process was broken down into discrete steps, from the moment the customer walks into a branch or goes to the company website, until the house has changed owners. In the front office, the system was improved to strengthen management, including clear performance targets, preparation of branch managers for coaching roles, and training in root-cause problem solving. This new way of working and approaching problems has directly boosted both productivity and morale.

The bank is making sizable gains in performance as the program rolls through the organization. For example, front-office processing time for a mortgage has decreased by 33 percent and the bank can get a final answer to customers 36 percent faster. The call centers had a significant increase in first-call resolution. Even more important, customer satisfaction scores are increasing, and rework rates have been halved. For each process the bank revamps, it achieves a consistent 15 to 25 percent increase in productivity.

And the bank isn’t done yet. It is focusing on permanently embedding a change mind-set into the organization so that continuous improvement becomes the norm. This change capability will be essential as the bank continues on its transformation journey.

A German Health Insurer Transforms Itself to Better Serve Customers

Barmer GEK, Germany’s largest public health insurer, has a successful history spanning 130 years and has been named one of the top 100 brands in Germany. When its new CEO, Dr. Christoph Straub, took office in 2011, he quickly realized the need for action despite the company’s relatively good financial health. The company was still dealing with the postmerger integration of Barmer and GEK in 2010 and needed to adapt to a fast-changing and increasingly competitive market. It was losing ground to competitors in both market share and key financial benchmarks. Barmer GEK was suffering from overhead structures that kept it from delivering market-leading customer service and being cost efficient, even as competitors were improving their service offerings in a market where prices are fixed. Facing this fundamental challenge, Barmer GEK decided to launch a major transformation effort.

The goal of the transformation was to fundamentally improve the customer experience, with customer satisfaction as a benchmark of success. At the same time, Barmer GEK needed to improve its cost position and make tough choices to align its operations to better meet customer needs. As part of the first step in the transformation, the company launched a delayering program that streamlined management layers, leading to significant savings and notable side benefits including enhanced accountability, better decision making, and an increased customer focus. Delayering laid the path to win in the medium term through fundamental changes to the company’s business and operating model in order to set up the company for long-term success.

The company launched ambitious efforts to change the way things were traditionally done:

• A Better Client-Service Model. Barmer GEK is reducing the number of its branches by 50 percent, while transitioning to larger and more attractive service centers throughout Germany. More than 90 percent of customers will still be able to reach a service center within 20 minutes. To reach rural areas, mobile branches that can visit homes were created.
• Improved Customer Access. Because Barmer GEK wanted to make it easier for customers to access the company, it invested significantly in online services and full-service call centers. This led to a direct reduction in the number of customers who need to visit branches while maintaining high levels of customer satisfaction.
• Organization Simplification. A pillar of Barmer GEK’s transformation is the centralization and specialization of claim processing. By moving from 80 regional hubs to 40 specialized processing centers, the company is now using specialized administrators—who are more effective and efficient than under the old staffing model—and increased sharing of best practices.

Although Barmer GEK has strategically reduced its workforce in some areas—through proven concepts such as specialization and centralization of core processes—it has invested heavily in areas that are aligned with delivering value to the customer, increasing the number of customer-facing employees across the board. These changes have made Barmer GEK competitive on cost, with expected annual savings exceeding €300 million, as the company continues on its journey to deliver exceptional value to customers. Beyond being described in the German press as a “bold move,” the transformation has laid the groundwork for the successful future of the company.

Nokia’s Leader-Driven Transformation Reinvents the Company (Again)

We all remember Nokia as the company that once dominated the mobile-phone industry but subsequently had to exit that business. What is easily forgotten is that Nokia has radically and successfully reinvented itself several times in its 150-year history. This makes Nokia a prime example of a “serial transformer.”

In 2014, Nokia embarked on perhaps the most radical transformation in its history. During that year, Nokia had to make a radical choice: continue massively investing in its mobile-device business (its largest) or reinvent itself. The device business had been moving toward a difficult stalemate, generating dissatisfactory results and requiring increasing amounts of capital, which Nokia no longer had. At the same time, the company was in a 50-50 joint venture with Siemens—called Nokia Siemens Networks (NSN)—that sold networking equipment. NSN had been undergoing a massive turnaround and cost-reduction program, steadily improving its results.

When Microsoft expressed interest in taking over Nokia’s device business, Nokia chairman Risto Siilasmaa took the initiative. Over the course of six months, he and the executive team evaluated several alternatives and shaped a deal that would radically change Nokia’s trajectory: selling the mobile business to Microsoft. In parallel, Nokia CFO Timo Ihamuotila orchestrated another deal to buy out Siemens from the NSN joint venture, giving Nokia 100 percent control over the unit and forming the cash-generating core of the new Nokia. These deals have proved essential for Nokia to fund the journey. They were well-timed, well-executed moves at the right terms.

Right after these radical announcements, Nokia embarked on a strategy-led design period to win in the medium term with new people and a new organization, with Risto Siilasmaa as chairman and interim CEO. Nokia set up a new portfolio strategy, corporate structure, capital structure, robust business plans, and management team with president and CEO Rajeev Suri in charge. Nokia focused on delivering excellent operational results across its portfolio of three businesses while planning its next move: a leading position in technologies for a world in which everyone and everything will be connected.

Nokia’s share price has steadily climbed. Its enterprise value has grown 12-fold since bottoming out in July 2012. The company has returned billions of dollars of cash to its shareholders and is once again the most valuable company in Finland. The next few years will demonstrate how this chapter in Nokia’s 150-year history of serial transformation will again reinvent the company.

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Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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Case Study: A Digital Transformation Success Story

In the years since COVID-19 hit and swiftly shut down most in person experiences, the wellness industry had to quickly adapt to a new way of life. While this has given businesses the opportunity to reach new customers beyond their traditional four walls – owners and managers needed to learn and embrace new technologies to […]

In the years since COVID-19 hit and swiftly shut down most in person experiences, the wellness industry had to quickly adapt to a new way of life. While this has given businesses the opportunity to reach new customers beyond their traditional four walls – owners and managers needed to learn and embrace new technologies to better serve their clients.

Customers of those wellness businesses can download a MindBody app directly to their phone, find a yoga class, a Pilates studio or a hair salon in their area, and book an appointment or class, which adds that booking to the appointment calendar for that business. One account through MindBody can provide access to tens of thousands of different locations across the world.

For business owners, technology and software can feel overwhelming and frustrating, especially when faced with configuration and other behind-the-scenes tasks. Mindbody helps to ease owners’ frustration by ensuring they have plenty of resources and options, not only in initial configuration, but so owners can gracefully navigate changes in their businesses going forward.

To better help their customers, Mindbody partnered with WalkMe to understand how their customers adopted their software and integrated it into their workflow, to make adoption as easy as possible for future customers coming on board.

Mindbody worked with WalkMe and their Digital Adoption Platform (DAP) to help users get up to speed with friendly, supportive language and processes that were specifically geared to Mindbody’s unique customer base. WalkMe’s is no-code software platform enables organizations to measure, drive, and act to maximize the impact of their digital transformation and accelerate the return on their software investment:

“WalkMe helps us be here for our customers from the minute they log into the software so that their focus can remain on running their business, rather than learning an application,” said Poole.

WalkMe’s code-free editor proactively guides users to complete any business process across single or multiple applications using strategically placed and personalized content delivered at the teachable moment—right when it’s needed. WalkMe’s technology improves productivity, humanizes technology, and drives more effective use of a company’s software. The Digital Adoption Platform can identify gaps and problem areas and drive users to success without changes to the underlying platform.

Digital Transformation Implementation

While the wellness industry went through many changes brought on by COVID-19, Mindbody wanted to support their customers and changing technology and software needs.

When setting up their software, Mindbody customers are guided by WalkMe through questions about how they run their business. Through a conversational style, the software guides business owners through the appropriate steps and best practices specific to their business. Additionally, WalkMe allows Mindbody to provide encouragement and feedback along the way.

Using WalkMe tools, Mindbody was able to use in-app notifications to alert clients about new features including how to adjust your software settings to focus on virtual classes, how to publicize on social media, and more.

Lessons Learned

As clients use the guided help walkthroughs, Mindbody tracked behavior patterns, learning what steps in the process take clients longer to complete and what steps they flew through quickly.

“WalkMe was able to give us a page-by page flowchart that showed, for example, that it takes users about seven minutes before they move to this next page, but it only takes them 30 seconds on the following page.”

This allowed Mindbody to explore where customers were having trouble during their onboarding process, and why that might be. Did users need to read that particular piece of content more thoroughly? Was there anything else they needed to add to the user experience to help customers through the setup process?

The pandemic has caused businesses to adapt to many changes, including in the health, wellness, and beauty industry. Many MindBody clients made the shift to offer remote classes online so customers follow along at home rather than come to the studio.

MindBody wanted to show their clients how easy it was to make changes to their business model in the software so they could continue to bring in revenue. Using WalkMe tools, MindBody was able to use in-app notifications to tell clients the next time they logged in, “here’s a new remote class feature and we can walk you through the five steps to adjust your settings. Then you can post this link out to your social media pages and start getting those bookings rolling in,” said Poole.

Digital Transformation Best Practices

Mindbody created a comprehensive central help content repository to collect training videos, job aids, walkthroughs, and steps to complete common tasks. WalkMe uses an independent release cycle and is really quick at development, Poole said, so MindBody was able to get changes done within a matter of hours rather than a sprint or two. He said this was a key selling point for WalkMe.

The company set a goal was to have users find the answers to their questions from their help menu 80% of the time. Through the partnership, Mindbody was able to reach that goal within six months.

Additionally, Mindbody and WalkMe continued to improve upon the content for the 80% of users using the WalkMe help menus and were able to incorporate new questions that arrived via Slack, allowing users to consistently access the WalkMe help database for their questions.

Building on everything they learned in their customer-facing digital adoption initiative over the previous two years, Mindbody has now partnered with WalkMe to implement a companywide system inside Salesforce that replaces the native Salesforce Help menu with an in-house help system.

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Digital transformation in banking: A complete guide

August 02, 2023

Digital transformation is a challenge for the banking industry, but it is necessary to adapt to the modern world where customers expect fast, efficient, and convenient services. Traditional approaches no longer meet the needs of the modern consumer. So, banks that want to remain competitive must abandon conservative methods and fully immerse themselves in the process of digital transformation.

This article discusses what is digital transformation in banking, key factors driving digital transformation , and successful examples of digital transformation in the banking industry.

What is digital transformation in banking?

5 key factors driving digital transformation in banking, technologies that drive digital transformation in banking, successful examples of digital transformation in the banking industry, how can soloway tech help you digitally transform your business.

Digital transformation in banking refers to applying new digital technologies and strategies to change and improve banking operations. This includes various changes to increase efficiency, meet customer needs, improve operational effectiveness, and develop new digital products and services.

Mobile applications and personal cabinets on the website are vivid examples of banks’ digital transformation. It is enough to press the buttons on a smartphone or computer to open an account, take out a loan, or order a new plastic card. The services are available not only to individuals but also to legal entities. The accounting departments use client-bank programs to transfer salaries to employees, pay taxes, and receive money from customers.

When you call the hotline of your financial organization, you are answered not by a specialist but by a robot. Virtual assistants have replaced some employees. Moreover, some US banks operate without branches at all. There are employees only in the head office, and customer transactions are conducted exclusively through the Internet.

It is more convenient for people to work with banks remotely, so credit institutions invest a lot of money in digital transformation. It is important that the interface of applications is user-friendly and understandable and transactions are fast. This will attract more customers and, accordingly, increase the profits of the financial company.

Pros and cons of digital transformation in banking

Digital transformation in banking is developing at a rapid pace. It has objective advantages: 

• Services of financial organizations are available from anywhere in the world
• The cost of remote operations is cheaper
• There are no queues
• Improved customer service
• Improved operational efficiency
• Big Data and analytics
• Innovation and new opportunities

But there are disadvantages too: 

• Dependence on the Internet
• Vulnerability of security systems and regular hacker attacks
• Inaccessibility for some customers
• Threat of job losses
• Dependence on technology

Technology should become a tool that will give banks more flexibility in decision-making and reduce risks.

Fintech companies, which have recently created large-scale services with significantly more interaction points with the client than the classic banking business, are taking the lead. Given that over the last 10 years, the banking industry has experienced a serious tightening of regulatory requirements, fintech is becoming a severe competitor for banks. The solution that banks have found is to change their business model with a focus on digitalization, create their own ecosystems, and develop non-financial services.

Ecosystems are a new global standard for business development and a major stage in the development of the economy. They aggregate data on producers and consumers and help optimize the resources of both. There is no turning back. Creating ecosystems seems to be a common vertical integration strategy for banks when related businesses are pulled up to the core business.

We highlight 5 key factors driving digital transformation in banking:

• Customer experience. Providing convenience and personalization for customers is a crucial factor in digital transformation. Banks should develop and implement innovative digital channels, such as mobile apps, online banking, chatbots, and others, to facilitate access to financial services and improve customer satisfaction.
• Automation and process optimization. The use of automation technologies, such as robo-advisors, machine learning, and artificial intelligence, helps reduce routine operations, lower costs, and improve efficiency. This can include automating lending, foreign exchange, internal audit, and more.
• Evolving regulatory landscape. Regulatory changes and initiatives have pushed banks to adopt digital transformation. Open banking regulations, data protection regulations (such as GDPR), and initiatives promoting competition and innovation have compelled banks to invest in technology to comply with regulations, foster innovation, and enhance transparency.
• Competitive pressure. Fintech startups and tech giants have disrupted the traditional banking landscape. These non-traditional players offer innovative and agile financial services, posing a competitive threat to traditional banks. To remain competitive, banks invest in digital technologies to improve their offerings, provide unique value propositions, and stay ahead of the competition.
• Enhanced customer insights. Digital transformation enables banks to gain deeper insights into customer behavior, preferences, and needs. By analyzing customer data, banks can offer personalized services, targeted marketing campaigns, and customized product recommendations, leading to higher customer satisfaction and loyalty.

These factors interact with each other and require a comprehensive approach for successful digital transformation in the banking industry.

An important point is cybercrime. The emergence of new technologies has left hackers with many loopholes for hacking into networks and devices. At the current growth rate, cyberattack damage will amount to about $10.5 trillion annually by 2025 —a 300% increase from 2015.

However, cyber threats are not slowing down digital transformation. On the contrary, they drive it (this applies to banks and other organizations). The search for vulnerabilities is a never-ending process that contributes to developing security systems. 

The main principle of the fight against cybercrime in many banks is that the fight should be at all levels. It means from the protection of external perimeters to specific systems at specific addresses and ports. This includes protection against DoS attacks, firewalls, full control of the bank’s systems, control of viruses to avoid data leakage, etc.

Technologies are evolving at an incredible pace. Artificial Intelligence (AI), Big Data, Blockchain, and other innovations transform how we live, work, and do business.

For example, artificial intelligence allows banks to automate processes and make customer interaction more personalized and efficient. Machine learning can analyze large amounts of data, identify patterns and trends that help make better decisions and predict risks. Machine learning and neural networks also greatly help in document recognition and remote customer verification. 

Big Data analysis is becoming a valuable tool in the banking sector, allowing banks to identify patterns, trends, and useful insights hidden in huge amounts of data. It can be used to develop personalized products and services, improve decision-making, detect fraud , and understand and predict customer behavior.

Blockchain is another innovative technology that can tremendously change the banking industry. Most of the current problems in the banking sector are related to the human factor. In particular, they include high commission costs and time spent on money transfers and transactions, internal and external fraud, human error, leakage of personal data, and much more. There are several main areas where blockchain technology can be used in the banking industry:

• Smart contracts
• International payments, settlements for foreign trade transactions, and internal payments
• Transactions with securities
• National digital currency

Other technologies that drive digital transformation in banking include Cloud Computing, Internet of Things (IoT), Robotic Process Automation (RPA), Biometrics, and Open Banking APIs.

Many success stories of digital transformation in banking demonstrate how digitalization improves customer banking experience and operational efficiency. For example:

• DBS Bank (Singapore). DBS Bank is considered one of the leaders in digital transformation. They have developed a digital platform, DBS Digibank, which provides customers with a wide range of banking services through mobile apps and online banking. They actively use artificial intelligence and analytics to provide personalized recommendations and improve customer experience.
• JPMorgan Chase (USA). JPMorgan Chase has embraced digital transformation to improve operational efficiency and customer service. They have developed their proprietary digital platform, Chase Mobile Banking, which allows customers to perform various banking transactions through mobile devices. They also actively apply machine learning and analytics to better analyze data and deliver services.
• ING Bank (Netherlands). ING Bank has moved from a traditional bank to a digital organization. They provide customers convenient online services and mobile apps and actively use data analytics to provide personalized offers and improve customer experience. They have also implemented digital tools within the bank to streamline processes and improve efficiency.
• BBVA (Spain). BBVA focused on digital transformation and innovation to improve customer experience and banking processes. They developed the BBVA Digital Banking platform, which provides customers with a wide range of services through mobile apps and online banking. They have also implemented blockchain technology to improve the security and efficiency of financial transactions.
• Ally Bank (USA). Ally Bank is an example of a successful digital transformation. They provide a full range of banking services through an online platform, including account opening, lending, investments, and mortgages. Ally Bank actively utilizes digital channels and tools to provide convenience and accessibility to customers.

These examples demonstrate how banks use digital technologies to increase the availability of services, improve customer experience, and optimize their operations.

At SoloWay Tech, we specialize in providing comprehensive digital transformation and consulting services to help businesses thrive in the digital age. With our expertise and industry knowledge, we can guide your organization through the complex digital transformation process, enabling you to unlock new opportunities and achieve sustainable growth. We can:

• Consult regarding the digital transformation of your business
• Develop a digital transformation strategy
• Design digital customer experience
• Optimize business processes
• Automate business processes
• Re-engineer legacy apps
• Develop innovative products and services
• Implement end-to-end ML and AI engines
• Engineer IoT
• Build Big Data infrastructure
• Consult regarding the best implementation of IT infrastructure in your business.

At SoloWay Tech, we understand that each business has unique challenges and requirements. Our collaborative approach, deep industry expertise, and proven methodologies empower us to tailor our services to your specific needs, enabling you to achieve sustainable growth and competitive advantage through digital transformation.

Embark on your digital transformation journey with SoloWay Tech and unlock the full potential of your business in the digital era. Contact us today to learn more about our services and how we can help you drive innovation, efficiency, and success.

Digital transformation has become imperative for the banking industry to adapt to the evolving needs and expectations of customers in the modern world. The shift towards digitalization offers numerous advantages, such as enhanced customer experiences, improved operational efficiency, access to Big Data analytics, and new opportunities for innovation. However, there are also challenges to consider, including cybersecurity risks, potential job losses, and dependence on technology.

To embark on a successful digital transformation journey, businesses may seek the expertise of companies like SoloWay Tech that specialize in assisting organizations in their digitalization efforts. With the right guidance and implementation strategies, banks can harness the power of digital technologies to stay competitive, meet customer expectations, and drive innovation in the ever-evolving banking landscape.

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Top 10 SAP Case Studies That Will Inspire You to Follow Your Digital Transformation Dreams 

It takes months of toil, to and fro, meetings, advisory sessions, testing, fine-tuning and a lot more before a go-live happens – all this is fueled by precision, teamwork, and a sprinkle of our Uneecops’ magic. Every dashboard, every support and user adoption training call, all culminate in a seamless launch. Plus, it is the countless cups of coffee that make it happen!  

In the fast-paced world of digital transformation, success stories inspire and motivate us to push boundaries and strive for excellence. Uneecops, India’s #1 SAP Platinum Partner, unveils a series of SAP case studies from 2024 that showcase remarkable transformations, inspiring businesses to dream big and embrace change. 

Making Lahori Zeera Digitally Zingy: Journey to SAP ERP  

Lahori Zeera, India’s fast-growing beverage brand produces a remarkable 2.5 million bottles of tangy goodness each day, with supply in 8 states and over 8000+ sale points. With their scale of operations, tracking finances and outcomes needed advanced automation. SAP ERP offered real-time visibility into monetary transactions, ensuring precise and up-to-date analysis of funds. Additionally, Uneecops significantly enhanced integrating its payment systems with its SAP add-ons. Daily payments could now be efficiently tagged, improving tracking and reconciliation.   

These improvements in financial management and forecast-based decision-making were pivotal in enhancing operational efficiency and contributing to Lahori Zeera’s growth and success. 

Hear from Lahori Zeera’s leadership how Uneecops added tech tang to the zingy beverage brand:

Fixing Fix Derma’s Digital + Derma Challenges: Uneecops’ SAP Customer Success Story   

Fixderma cosmeceutical company, founded in 2006, is a prominent manufacturer & supplier of ingenious skincare and hair care products in India. As the firm boasts a vast product line, managing all verticals needed automation. SAP Business One helped them simplify operations by integrating various business processes such as inventory management, sales, and financials. This integration improved efficiency and lessened errors. Uneecops + SAP Business One enabled the company to manage its inventory better, ensuring they have the right products in stock at the right time. This reduced stockouts and improved customer happiness. 

Making Headlines for Inshorts’ SAP Business One Go-live!  

Inshorts, the 60-word news app with more than 10 million users (about half the population of New York), used SAP Business One to streamline its internal functions, including content management, advertisement, and user engagement. With adequate organization and efficiency, Inshorts can oversee its resources more efficiently, including staff, content, and advertising inventory. This can lead to cost savings and better overall performance. 

Explore their IT modernization journey with Abhishek Bakshi, GM, Finance:

Sharika Life Science Limited’s SAP Success Story with Uneecops: A Dose of Tech Transformation  

Sharika Life Science Limited, a leading name in the Indian pharmaceutical industry, synergized operations in compliance with the recent government GMP pharma mandates. SAP’s GMP and quality control modules helped Sharika Life Science Limited ensure all manufacturing processes and quality control measures met the required prerequisites.  

With SAP Business One, Sharika Life Science Limited can efficiently track and trace batches of their products throughout the supply chain. This is essential for maintaining product quality, recognizing and addressing any problems that may arise, and complying with regulatory necessities.  

Also, SAP Business One’s inventory management abilities helped Sharika Life Science Limited optimize its inventory levels, downsize wastage, and ensure that it always has the right number of raw materials and finished products on hand. 

Watch their incredible journey of excellence and efficiency:

Weaving Raj Group’s Operations Together with SAP ERP: Curating SAP Customer Tale  

Raj Group, a global powerhouse, delivers comprehensive floor covering solutions that span carpets, durries, rugs, bath rugs, pillows, poufs, wall hangings, storage baskets, and floor cushions.  

To sidestep the growing pains of supply chain management, technological intervention was required. That’s how they went from homegrown ERP to SAP ERP. Just as their adept workforce operates as one tight-knit family, SAP seamlessly weaves into the fabric of their organization, improving efficiency and paving the way for even greater international success. The system greatly assisted in planning production schedules based on demand projections, ensuring optimal resource utilization and timely delivery of rugs. The system also optimized the entire supply chain process, from sourcing raw materials to delivering finished products, enhancing efficiency and reducing lead times. 

Explore how Uneecops redefined the boundaries of innovation and quality for Raj Group:

Fueling Success for Leading Oil Company BP Oil Mills with SAP ERP  

BP Oil Mills, a titan in the edible oil industry with over a century of history, underwent a complete restructuring of its operations by implementing SAP ERP. Confronted with supply chain management and sales challenges, the enterprise recognized that its existing homegrown ERP software needed to be improved. SAP’s expertise and specialization in ERP systems firmed the decision to switch to SAP ERP. The implementation of SAP ERP enabled BP Oil Mills to centralize and organize their previously fragmented processes. With Uneecops as their partner, they successfully retrieved command of their operations and outperformed competitors. Join us on this journey towards industry leadership.   

Hear from the customer on their SAP tale:

Vital Capital Environment #WinningwithSAPBusinessOne: A SAP Case Study  

Vital Capital Environment’s management emphasized transparency within their system from the early phases. This pledge to transparency was a foundational principle and a strategic move to enable next-level advancements in business development, particularly with integrating Artificial Intelligence (AI) and Machine Learning (ML) technologies. By implementing SAP Business One, Vital Capital Environment accomplished easy integration across its operations, all while consolidating its data into a single, accessible database. This integration and data consolidation streamlined their processes and paved the way for future growth and innovation. Vital Capital Environment’s success narrative with SAP Business One spotlights the transformative power of a unified, transparent system in driving business excellence and innovation. 

Watch to find out more:

Fastening Usha Fasteners Transformation: SAP Business One Case Study  

Usha Fasteners is the leading manufacturer, trader and service provider of Fasteners, Hand Tools, and Workshop Equipment. As a high-potential family-based company, the leadership realized the importance of post COVID-19 automation for global expansion and complete transformation. With SAP Business One, all departments at Usha Fasteners underwent a transformation change. Remote work was possible as systems were integrated and process improvements happened. SAP modules like finance, accounting, and inventory management helped the company track and manage inventory levels, linking them to vendor and customer finance transactions.  

Hear from the Managing Director:

‘Tech Engineer’ for Accupack Engineering  

SAP Business One was pivotal in modernizing Accupack Engineering Private Limited, Asia’s largest pharmaceutical manufacturing solutions company. The implementation of SAP Business One enabled Accupack Engineering to streamline operations, improve efficiency, and enhance overall business performance. With SAP Business One, Accupack Engineering gained real-time insights into its processes, improved inventory management, and optimized its supply chain. Additionally, the system’s scalability and flexibility ensured that Accupack Engineering could adjust to varying market demands and continue to innovate in the pharma manufacturing sector.   

Watch this video to hear about their experience:

Uneecops Engineers System Integration for Acro Engineering: SAP Business One Implementation Case Study  

Uneecops built a L.I.V.E. enterprise for Acro Engineering with SAP ERP solution portfolio. The early start up company’s leadership knew – adopting technology early on is better to lay the right foundation. The gaming and high-tech company gained insights into business performance with customizable reports for better decision-making. The leadership and stakeholders could access SAP Business One features and data on the go with mobile applications, allowing for real-time information and decision-making. 

Hear from their CEO, Himanshu Jain about their SAP ERP journey and success story:

As we look to the future, these SAP case studies remind us that no dream is too big and no transformation too daunting. With the right partner and the right technology, businesses can achieve remarkable results and pave the way for a brighter, more efficient future.    

Many SAP Case studies Culminating into Many Award-winning Glories  

Our SAP success stories underscore the power of SAP ERP solutions and the impact they can have on businesses across industries. They reinforce the importance of not just reimagining processes and embracing a culture of innovation, but also creating a ripple effect of transformational victories. As businesses bag automation capabilities, Uneecops also achieves.    

Thus, after 75+ successful SAP ERP go-lives in 2024, Uneecops achieved remarkable recognitions in the SAP ecosystem. SAP Platinum Partner Uneecops once again clinched the coveted ‘APJ Partner of the Year 2023’ award at the SAP Partner Summit 2024, Singapore. This marks an impressive seventh consecutive win for the company.  

Along with the history-etched achievement, Uneecops also secured the ‘Partner of the Year, India (2023)’ award, further amplifying its outstanding contributions to the SAP ecosystem. These accolades are a testament to Uneecops’ commitment to excellence and innovation, inspiring businesses worldwide to follow their digital transformation dreams. 

The secret that makes Uneecops deliver successful projects to win customer love…  

Our employees. Our stakeholders. Our quest to transform. Our passion for technology.   

We are able to carve our niche and write more and more SAP success stories because of our people and processes. And in 2024, it showed – as Uneecops achieved the prestigious Great Place to Work® (GPTW) India certification 2024-2025 in our first attempt. 

As we win big each passing year, what makes us most content when we see our client’s happiness as they ditch their excel sheets and switch to automation. The go-live celebrations and joy on our client’s faces are our drive to constantly and relentlessly bring future-proof change.  

Tomorrow is the future. Uneecops is committed to building true L.I.V.E. enterprises of tomorrow.    

Uneecops envisions 2025 and beyond as a tech balance – where business AI is seamlessly integrated, but with human ingenuity – where SAP, CRM, analytics, and cloud technologies converge to power businesses that are both successful and transformative.  

With a focus on innovation and a dedication to excellence, Uneecops is leading the way towards a future where possibilities are limitless, and success knows no bounds. Follow your digital transformation dreams with us! 

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As a seasoned technology writer with a decade-long commitment to the industry, Roli stands out as a prominent authority in crafting compelling narratives around SAP innovations. Specializing in the dynamic realms of 360* Tableau, SAP technology, and ERP solutions, Roli is renowned for her capacity to spearhead successful marketing and communication strategies. Having collaborated extensively with software experts, she possesses an intricate understanding of the diverse industries and verticals that SAP serves. Rooted in the art of impactful storytelling, Roli connects with audiences, consistently bringing technology USP suitable to their needs.

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5 Case Studies of Successful Digital Marketing Campaigns

Hold onto your hats, marketers!

Did you know digital marketing spending is set to explode, reaching a mind-boggling $ 786 billion by 2026 ? And with social media ad spend hitting over $70 billion in the US alone , there’s no denying the power of a killer online campaign.

But here’s the thing: it’s not just about throwing money at ads. Successful campaigns in 2024 are a strategic dance – they blend social media with a whole symphony of channels for a knockout customer experience.

Think of it like this: Personalizing your message? That’s the move that turns casual shoppers into loyal fans.

Ready to see how top brands are doing a successful digital marketing campaign? I’m dissecting 5 real-world campaigns that nailed this formula and reaped the rewards. Get ready for digital marketing strategies – inspiration and a blueprint for your own marketing success await.

• Beyond the Love Fest: Slack's Winning Formula

Ideas to Adapt This Digital Advertising Strategy

Tips to steal for your business, ideas for your business, lessons for your business, case study #1. slack.

Slack’s meteoric rise in the competitive business communication space can be largely attributed to their genius understanding of a simple concept: customers love to talk about products they adore. Here’s how they turned this digital marketing campaign into marketing gold:

• The “Wall of Love” Campaign: This brilliant tactic involved a dedicated Twitter account (@SlackLoveTweets) that amplified positive user testimonials. This effortless social proof machine did wonders for brand reputation and encouraged even more glowing commentary.
• Easy Sharing = Participation: Using X (formerly Twitter), a platform already beloved by users, removed any participation hurdles.
• Feedback Loop: Praise wasn’t just for show – the team used those rave reviews to refine their product and deliver what users really needed.
• The Power of Visuals: Tweets with included images got more traction and showcased how Slack integrates into people’s work lives.

Beyond the Love Fest: Slack’s Winning Formula

Slack’s success goes beyond a single campaign. Here’s why they continue to compete with giants like Microsoft Teams:

• Relentless Focus on User Experience: From its inception, Slack was built with the user in mind. Easy setup, intuitive design…it removes the tech friction that bogs down other platforms.
• Real-Time = Real Connection: In a world demanding instant communication, Slack delivers. This keeps teams on the same page and fosters a sense of camaraderie.
• Customizable and Integrations-Friendly: Slack’s open approach lets it play nicely with countless other tools, creating a tailored work hub. This flexibility is invaluable to businesses.

The Bottom Line: Slack proved that listening to customers and showing that they matter is the recipe for building not just a loyal user base, but passionate brand advocates.

Want to implement aspects of this for your own business? Here are some ideas:

• Run a testimonial campaign: It doesn’t need to be as fancy as “The Wall of Love.” A simple social media hashtag or even a dedicated landing page can get people talking.
• Turn glowing testimonials into visuals: Tweets, infographics…make that praise eye-catching.
• Pay attention to even the smallest bits of feedback. That’s where your next big feature idea might be hiding.

Case Study #2. UNIQLO

UNIQLO knew that to get people excited about their HEATTECH line, they needed to go beyond standard ads. Hence, an ingenious omnichannel experience was born:

• The Hook: Eye-catching digital billboards across Australia, plus videos online, dared people to snap photos of unique codes. This gamified the promotion, making it fun.
• The Reward: Codes unlocked either free t-shirts (who doesn’t love free stuff?) or tempting e-commerce discounts. Plus, a gentle push toward signing up for the newsletter for future deals.
• The Viral Touch: The experience was shareable on social media, letting satisfied customers spread the word and get their friends involved.

Why This Was Marketing Magic

• The Power of “Free”: Giveaways always pique interest, and those t-shirts were a brilliant way to get people to try the product.
• Bridging Online and Offline: The billboards drove people to the digital campaign, and the campaign funneled real-world shoppers into their online ecosystem.
• Beyond Just a Sale: While the initial goal was sales, UNIQLO also used this to build their email list, ensuring those new customers could be nurtured later.

The Impressive Results: 1.3 million video views, 25K new email subscribers, and a whopping 35K new customers speak for themselves.

• Gamifying the experience: Can you add a code-finding element, or a contest, to your campaigns?
• Freebies are your friend: It doesn’t have to be t-shirts; a free sample or exclusive content could work just as well.
• Think about the share factor: How can you encourage participants to organically spread the word?

Case Study #3. Airbnb

Airbnb understood that to stand out, they couldn’t just offer rooms – they had to sell the feeling of travel. Here’s how they did it:

“Made Possible By Hosts” Campaign: This heartwarming video used real guest photos and a nostalgic soundtrack to evoke that “remember that epic trip?” sensation. It subtly showcased great properties while focusing on the emotional benefits of those getaways. ( Watch Here )

“Belong Anywhere” Campaign: This was about ditching the cookie-cutter hotel experience and immersing yourself in a destination. Airbnb positioned itself as the key to local adventures, belonging, and transformation through travel. ( Watch Here )

Key Takeaways

• Video is KING: They invested in both short, shareable how-to videos and longer, emotionally impactful ones.
• UGC is Your Goldmine: User photos and stories provided powerful, free content while also building that vital trust factor.
• Sentiment Sells: Airbnb didn’t bog down ads with facts; they used music, imagery, and storytelling to tap into that wanderlust in viewers.

The Success: These campaigns weren’t just pretty to look at; those 17M views for “Made Possible by Hosts” and the global reach of “Belong Anywhere” translated into real bookings.

Why It Matters: Airbnb disrupted an entire industry by understanding that:

• Experience Matters More Than Specs: They sell adventures, memories, and that feeling of connection, not just a place to crash.
• Authenticity Wins: User-generated content is relatable and trustworthy, which is key in the travel industry.
• Don’t just show the product, show the FEELING: How will your product or service transform a customer’s life?
• Run Contests for UGC: Get those customer photos rolling in. Offer a prize for the most “adventurous” or “heartwarming” shot.
• Showcase Your Brand Personality: Was Airbnb’s tone all serious? Nope. They were fun, sentimental, and a little cheeky, which fit their brand image.

Could You Partner with Airbnb? This case study also begs the question: for businesses in the travel or hospitality space, an Airbnb collaboration could be marketing magic.

Case Study #4. Lyft

Lyft realized they already had a killer product – their challenge was getting MORE people to try it. Enter the power of referrals:

• The Hook: Simple referral codes were sharable via the app, email, or even text. This made it a snap for riders to spread the word.
• The Reward: Free or discounted rides. This wasn’t a measly $5 off; it was significant enough to make riders really want to tell their friends.
• The Viral Loop: Refer a friend, get a discount. Friend uses Lyft, they get a discount…you see where this is going.

Why This Was Smart

• Low-Cost, High-Yield: Traditional advertising is pricey. Referrals are fueled by happy customers, which is way cheaper.
• The Trust Factor: People trust recommendations from people they know infinitely more than some billboard.
• Scalability: This successful digital marketing strategy grows with their user base – the more satisfied riders, the more potential advocates.

The Bottom Line: Lyft didn’t just make a clever campaign; they built a referral system into the core of their app, ensuring growth wouldn’t be a one-time thing.

• What’s Your Incentive?: Freebies, discounts, exclusive content – what will actually make your customers want to share?
• Make It EASY: Don’t make them jump through hoops. One-click sharing options are essential.
• Track and Reward: Who are your top referrers? They deserve some extra love (maybe even a tiered rewards program).

Case Study #5. Sephora

Sephora understood a key weakness of e-commerce: you can’t try on a lipstick through a screen. That’s why they went all-in on innovative tech:

• The App as a Virtual Dressing Room: AI and AR are game-changers. Their app lets customers try on makeup from anywhere, boosting confidence in online purchases.
• Closing the Loop: Smart, eh? The app connects right to their e-store; a few taps and that virtual lipstick is in your real-world cart.
• Personalized to the Max: Using shopper data, the app tailors the experience, offering tailored recommendations that increase the chance of buying.

Why This Isn’t Just Cool, It’s Genius

• Overcoming Obstacles: They addressed a key pain point of buying cosmetics online. Less hesitation = more sales.
• Omnichannel FTW: They don’t just exist online; there’s an in-store connection too. That app? It helps you there as well.
• It’s about the EXPERIENCE: Sephora knows beauty is fun, and their digital strategy reflects that with virtual try-ons, quizzes, etc.
• Solve a problem: Don’t just add tech for the sake of it. Find a pain point in your customer journey and see if there’s a tech solution.
• The “Experience” Factor: Can you add interactive elements, gamification, or a personalized touch to your digital presence?
• Data Is Your Friend: If you’re collecting it, USE it. Tailored offers, recommendations…these keep customers coming back for more.

Final Thought on These Successful Digital Marketing Campaigns

These case studies showcase the importance of being adaptable, customer-focused, and not afraid to try new things. The digital marketing landscape is constantly evolving, but by understanding the core principles of what makes people tick, your business can craft truly impactful online marketing campaigns.

The Power of Emotion & Experience

• Best marketing campaigns aren’t just about features; they tap into feelings . Airbnb evokes the thrill of travel, Slack reminds us of the joy of smooth team communication, and Sephora makes buying makeup playful.
• Ask yourself: What does my product/service let customers feel and how can my content marketing capture that?

User-Generated Content is Marketing Gold

• The campaign featured like Slack’s “Wall of Love” and Airbnb’s focus on guest photos prove that real-world stories beat slick ads every time.
• This builds trust and provides endless free content.
• How to get started? Contests, easy-to-use “review” features on your site, and incentivizing social media platforms’ shares.

Omnichannel is the Future

• Both Sephora and UNIQLO masterfully blurred the lines between online and offline experiences.
• The target audience wants to engage with brands on their terms . Be present on social, have a mobile-friendly site, and if possible, find ways to integrate the in-store experience.

Word-of-Mouth Still Reigns Supreme

• Lyft’s referral program is a reminder that happy customers are your best salespeople.
• Don’t focus solely on gaining new customers; ensure your current ones feel so valued they can’t help but spread the word.
• Tips: Loyalty programs, excellent customer service that goes the extra mile, referral incentives

Tech is Your Tool, Not Your Master

• Sephora’s AI and AR try-ons are impressive, but the core goal is solving a problem for customers.
• Avoid using tech just to be trendy. Focus on how it can truly enhance your customer’s journey.

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Digital Third Coast gives client healthy returns during peak seasonal moment

​​The Open Enrollment period is the most competitive time for health insurance companies. Digital Third Coast, the award-winning agency, was up to the challenge to help their client during this peak time.

Their strategy: engage customers across the buying funnel to build a pipeline of high-quality leads. Spoiler alert, they succeeded.​

​​The solution​

​​The first step of Digital Third Coast’s strategy was simple. They launched prospecting campaigns with search and native audience ads to fill the funnel in preparation for Open Enrollment. All the while, they attracted the right customers Similar and In-Market Audiences .

​Next was the real genius of the plan—how they converted previous website visitors to buyers using Remarketing and expanding this practice to new audiences using Customer Match targeting. This top-to-bottom funnel strategy was a success and helped their client achieve a healthy boost in website traffic and conversion rates.​

The Microsoft Advertising team is simply delightful, and their powerful network helped us grow our lead volume during the most important time of the year for us.

​​The results​

​​By the end of the Open Enrollment period, the strategy Digital Third Coast put in motion—powered by Microsoft Advertising’s Audience Network and Search Network—achieved a 1.6x* lift in site visitation rate and 1.7x* lift in conversion rate.

​*Compared to users only exposed to search ads​

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Analytics transformation in wealth management

The wealth management industry is typically seen as embodying old-fashioned values and providing discrete, tailored services. These attributes remain valuable parts of the business, but for many clients, they are no longer sufficient. In a highly connected world, people want faster and more convenient offerings and a cutting-edge digital experience. Amid rising competition, established wealth managers need to keep pace with new offerings as they retain the values that set them apart.

About the authors

This article is a collaborative effort by Anutosh Banerjee , Fumiaki Katsuki , Vishal Kaushik, Aditya Saxena, Sanchit Suneja, and Renny Thomas .

Wealth managers are unlikely to be able to serve modern clients effectively without a digitized operating model. This will support advisory and non-advisory activities and service everchanging investment preferences. Some leading managers are building modular data and IT architectures, which enable smart decision-making, personalization at scale, and more extensive product offerings. 1 For an in-depth look at how some of these elements are being developed in an overall banking context, see our collection “ Building the AI bank of the future ,” May 2021, mckinsey.com. The changes are also helping them meet their regulatory obligations, boosting the productivity of relationship managers (RMs), and lifting compressed margins.

For wealth managers interested in pursuing these benefits, this article lays out the potential of deploying advanced analytics and offers a playbook of measures that wealth managers should consider including in a digital transformation.

The case for advanced analytics

Meeting the needs of today’s customers requires a business model that is at the same time efficient and adaptable to individual clients. Wealth managers are finding success with two approaches:

• Serve clients across the wealth continuum on a flat-fee advisory basis. Instead of the still-prevalent product-focused model, wealth managers need to build in pricing flexibility aligned to clients’ needs at every stage of their lives. An increasingly common pricing model is for clients to negotiate a flat fee based on the value of their investments. To maintain revenues with this model, wealth managers need to create new efficiencies and ensure RMs are more productive, which means spending more time with clients.
• Embrace personalization aligned to client life stages and goals. Today’s customers are increasingly dissatisfied with a one-size-fits-all service model, so wealth managers should consider transitioning to needs-based personalization. This requires RMs to get comfortable with a wider range of solutions, from the simplest products to complex higher-yielding investments (private markets, venture capital, pre-IPO, and structured products). In addition, RMs must be equipped to help clients make complex investment decisions, supported by analytics.

In today’s context, each of these goals is achievable only with advanced capabilities in data and analytics, especially targeting relationship management.

Focus on relationship management

Modernization can be game changing when it targets the role of RMs. Based on conversations with industry participants, we estimate that RMs typically spend 60 to 70 percent of their time on non-revenue-generating activities, amid rising regulatory and compliance obligations (Exhibit 1). One reason is that most still work with legacy IT systems or even spreadsheets. As clients demand more engagement and remote channel options, that needs to change.

A few leading wealth managers are using technology to provide RMs with the tools to serve clients more efficiently and effectively. Some have taken a zero-based approach, rebuilding their tech stacks and embracing advanced analytics to inform more personalized services. By providing targeted solutions, these firms have been able to boost revenues and reduce operational costs.

Clear benefits of being more client focused

The benefits of digitization are relevant in most markets, but the potential to leverage digitization to achieve a significant performance uplift is especially great in regions where wealth managers have not yet seized the opportunity. In Asia, for example, many wealth managers still need to fully embrace digital ways of working (Exhibit 2). We estimate that IT-based transformations could create some $40 billion to $45 billion of incremental value for wealth managers serving high-net-worth individuals in Asia, equating to roughly 25 basis points on a wealth pool of $17 trillion. 2 Wealth management penetration in the region is 35 to 40 percent, but for the purposes of the calculation, we assume 100 percent of high-networth individuals’ personal financial assets (investable assets of more than $1 million).

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Drilling down in the potential gains from data and analytics, we see benefits in three key areas: acquisition and onboarding, engagement and deepening of client relationships, and servicing and retention.

Acquisition and onboarding. Basic acquisition and onboarding applications include client discovery, risk profiling, account opening, and onboarding. RMs and investment teams can use analytics for lead generation, share-of-wallet modeling, and automated proposals. There are also multiple applications in investment management, risk, and compliance, including social-profile checking, anti-money-laundering and know your customer, and fraud protection.

How analytics creates sustainable impact: Two examples from Asia

One leading Asian wealth manager deployed an analytics-led program to produce granular client insights that enabled it to offer responsive, timely, and personalized services to client microsegments. The bank leveraged personalization at scale to boost assets under management by 30 to 40 percent per client in six to eight months.

A second wealth manager created the position of chief investment officer to inform a bankwide view of asset classes and geographies. The CIO used analytics to link product selection to the “house view,” ensuring consistency across model portfolios.

Engagement and deepening. Client-focused applications include personalized research, portfolio management, and notifications. RMs and investment teams can implement client clustering, propensity modeling, recommendation engines, and digital performance management (see sidebar “How analytics creates sustainable impact: Two examples from Asia”). In investment management, risk, and compliance, there are opportunities to de-bias investment decisions, data analysis, and trade execution.

Servicing and retention. Client-related applications include portfolio simulations and optimization, as well as self-execution of trades. RMs can leverage applications such as churn predictors and work planners, while investment management, risk, and compliance can scale up portfolio planning and trade surveillance.

A playbook for analytics-driven wealth management

Early success stories are encouraging, but they are the exception rather than the rule. More often, firms have started the transformation journey but have faltered along the way. Common reasons include a lack of ownership at senior levels and budgetary or strategic restraints that prevent project teams from executing effectively.

The challenges of transforming service models are significant but not insurmountable. Indeed, as analytics use cases become more pervasive, implementation at scale becomes more achievable. In the following paragraphs, we present five ingredients of an analytics-based transformation (Exhibit 3). These can be supported by strong leadership, a rigorous focus on outcomes, and a willingness to embrace new ways of working. Indeed, managers who execute effectively will get ahead of the competition and be much more adept in meeting client needs.

Set a leadership vision

Analytics-driven transformations are often restricted to narrow silos occupied by a few committed experts. As a result, applications fail to pick up enough momentum to make a real difference to performance. Conversely, if support for change programs comes from the top and is guided by an outcomes-driven approach, the business can break away from entrenched operating norms and reset for structural change. With that in mind, executive teams should communicate a vision that can be cascaded through the business. They should also create a safe environment, or sandbox, for business lines to experiment before scaling.

Plot the change journey

Wealth managers have applied advanced analytics to achieving different objectives. Some have found that the application of advanced analytics to business problems delivers significant value and enables them to make better decisions faster and more consistently. Others are using data and advanced analytics to improve sales and marketing, inform investment decision-making, and boost RM productivity.

Any plan for data-driven change must fit the organization’s business model. Implementation will vary based on the technical feasibility, data accuracy and accessibility, time to impact, scalability, and availability of funds. The first few use cases will set the mood and direction, so careful thought is required ahead of action.

One common impediment to scaling is the lack of a single metric to describe impact, which makes it hard for tech teams to communicate benefits. Still, there are workarounds. Financial key performance indicators (KPIs) can show flows across key mandates or volumes of advisory, rather than execution-driven assets under management. Nonfinancial metrics can focus on cross-sell ratios, increased client retention, number of RMs trained, or adoption rates for solutions. Other helpful evaluations include customer satisfaction scores, new trust-based RM-client relationships, time to market, and cultural shifts. Progress on these measures will boost organizational conviction that transformation is beneficial.

The value of personal advice: Wealth management through the pandemic

Build a strong foundation, leading with technology.

Data and technology together form the backbone that supports analytics-led transformation. A strong analytics backbone requires a rigorous standard of data management, coupled with informed decisions about the IT applications and systems to employ.

A digital approach to client-centric servicing

A leading bank created a digital and analytics-powered application that ingests internal and external data points, enabling it to identify “hidden affluence” among its clients.

Another bank combined demographic data with information from client conversations to generate real-time product recommendations and facilitate cross-selling. To continuously train the recommendation engine, the bank built a central data lake—consolidated, centralized storage for raw, unstructured, semistructured, and structured data from multiple sources—so the system has an ever-growing set of data to work from. It then pushed product recommendations through multiple client channels.

A leading investment bank continuously scrapes more than 2,000 financial news sources and more than 800 blogs, stock message sites, and social-media platforms. This exercise helped to enrich the data used by the analytics engine to assess sentiment and inform insights on stocks, bonds, commodities, countries, currencies, and cryptocurrencies.

Wealth managers are routinely in touch with their clients offline. These interactions elicit significant information about client preferences and requirements, but the information is often stored on paper or in RMs’ heads. To mine this knowledge fully, wealth managers must capture it digitally and convert it into a structured format that can be processed to create insights and personalized services (see sidebar “A digital approach to client-centric servicing”). In doing so, they need to put systems in place to ingest, store, and organize the data in line with regulatory obligations while ensuring the data are accurate, available, and accessible.

On the technology side, some leading wealth managers use natural-language processing to analyze text and voice data and identify personalized triggers and insights. Others are building feedback loops across channels to train artificial intelligence algorithms. Technologies can also be applied to processes: robotic process automation, for example, can replace routine manual labor and mental processing in regulatory compliance, risk assessment, reporting, and query management.

Deployment of data-driven decision-making requires scalable, adaptable, and resilient core technology components—a unified data and technology stack that connects across IT activities. 3 Sven Blumberg, Rich Isenberg, Dave Kerr, Milan Mitra, and Renny Thomas, “ Beyond digital transformations: Modernizing core technology for the AI bank of the future ,” April 2021, McKinsey.com. This will enable managers to adopt a tech-first approach to designing customer journeys.

In building data and IT architecture, wealth managers require a basic tool kit with four key components:

• a rationalized IT stack to create a common front-and back-end platform and a unified resource for mobile and web applications
• a scalable data platform with modular data pipelines and application-programming-interface (API)-based microservices for building and deploying analytics solutions at scale
• a semi-autonomous lab environment to enable experimentation, coupled with an at-scale factory environment for production of analytics solutions
• a highly scalable distributed network on the cloud to respond to variable demand for data storage and processing

In parallel to assembling these components, banks must consolidate data from across geographies and business lines. This will enable analysts to elicit insights based on the maximum amount of information. Some leading players first experiment in a sandbox environment and work with external partners to acquire the necessary skills, after which they scale up incrementally.

Build the team and prioritize change management

It is not easy to scale and sustain analytics impact. Organizational silos and cultural resistance are common inhibiting factors, while the vital role that RMs play in forming and maintaining relationships must be adapted to the new environment. Indeed, RMs must be front and center of the transformation process. For this, organizations need effective team building and change management.

Team building. A productive approach to team building is to create cross-functional squads with a range of talents (Exhibit 4). Product owners and designers should be responsible for ensuring that the team meets the needs of its clients (RMs or end clients) and stays focused on delivering value. Data scientists and data engineers implement use cases and check that insights are generated as data are ingested—a minimal-viable-product (MVP) approach. IT architects and software engineers, meanwhile, build the slick interfaces and back-end systems that deliver insights to clients across channels.

How three Asian wealth managers engaged clients and boosted RM productivity

A leading private bank deployed machine learning to generate next-best conversation ideas. It built propensity models and analyzed customer clusters to identify anchor clients and learn from transaction patterns.

Another private bank built a digital workbench that enables RMs to serve clients via a single platform. The workbench was integrated with a centrally hosted recommendation engine that provides personalized recommendations based on life events and transaction data.

A third private bank used explanatory and predictive modeling to identify “moments of truth.” These informed RM coverage and outreach strategy, which helped the bank develop initiatives to support growth and focus RMs on high-value activities.

A core objective should be to explore analytics and AI use cases that boost RM productivity (see sidebar “How three Asian wealth managers engaged clients and boosted RM productivity”). To that end, the squad should embed business and channel management teams so that ideas are aligned with RM client services. Several firms have found that involving RMs and other domain experts in squads leads to significant improvements in data interpretation and modeling.

In many cases, assembling productive squads will require new talent. In particular, banks will need data scientists to be responsible for building analytics software and data engineers to scope and build data pipelines and data architecture. Translators, who act as conduits between the business and technology teams, will be critical for ensuring that squads understand business needs. Finally, squads need IT skill sets to ensure that analytics and digital solutions are compatible with core data and technology stacks.

The best approach to talent acquisition is to take baby steps: get one squad right, foster RM adoption, and then gradually expand capabilities as use cases multiply and are scaled up. Some of the required skill sets are in high demand, so outsourcing may be a realistic early option. In the longer term, however, it makes sense to build internally.

Change management. Relationship managers should be encouraged to embrace analytics and convinced that new applications lead to better services and higher levels of performance. Change management strategies can help. Examples include creating teams of “influencers,” running capability-building sessions, developing change narratives that generate widespread excitement, redefining roles, and aligning performance with financial or nonfinancial awards.

Institutionalize new ways of working

Analytics-driven transformation at scale should be predicated on collaboration, team self-steering, and an iterative approach to problem-solving—elements of the so-called agile approach, which originated in software development. In running agile sprints, it pays to keep business needs in sight, accepting that failure is part of the process. Two-week sprints are usually sufficient to get pilots up and running, and the aim should be to produce an MVP with every sprint.

Wealth managers can apply these basic principles via four process disciplines:

• Inspect and adapt. Daily check-ins will ensure that teams identify roadblocks, such as product backlogs, and maintain their focus on goals.
• Engage end users. Sprint reviews with end users, stakeholders, and sponsors enable teams to gather feedback and bake in recommendations.
• Embed a sense of unity and purpose. Teams should hold retrospectives to incorporate learnings.
• Institutionalize support infrastructure. Agile tooling (for example, Confluence, Jira, and Zeplin) will facilitate experimentation and support remote working where necessary.

Organizations using agile operating models must embrace flexible learning. This is a departure from traditional waterfall-based approaches, in which decision-making occurs at the beginning of each project. In agile, capability building and a relentless focus on change management will be vital elements of optimizing the program. To cement the relationship between innovation and growth, leading firms also assign KPIs to application rollouts, and they reward decision makers based on the value created.

Most wealth managers would say they have already embarked on an analytics journey; many have begun deploying digital applications in various aspects of their businesses. Often, however, the whole system is less than the sum of its parts, and people remain attached to established ways of working. To make a leap forward, wealth managers should commit to bold agendas that will support the scaling up of analytics-driven approaches.

Anutosh Banerjee is a partner in McKinsey’s Singapore office, where Vishal Kaushik and Aditya Saxena are associate partners; Fumiaki Katsuki is a partner in the Hanoi office; and Sanchit Suneja is an associate partner in the Mumbai office, where Renny Thomas is a senior partner.

The authors wish to thank Tiffany Kwok and Charu Singhal for their contributions to this article.

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