Jennifer Bridges, PMP, shows you how to lead a successful business transformation. This includes personnel, processes, and technology. Several companies found that refocusing the organization to help save the planet can be especially powerful. Examples of digital transformation in retail. McDonald’s. In the early 2000s, when Douglas Baker Jr. became its CEO, Ecolab was an 80-year-old firm growing 10% annually by selling industrial cleansers and food safety services. “Our strategic plan was to sell more of what we had,” Baker says. To answer this question, here are some examples of successful brands who have not only completed transformation business process and are also reaping rich rewards. In 2011, Ecolab had a $12 billion market cap when it acquired water technology company Nalco in an $8 billion deal. Mobile Network Operator Launch. Digital Transformation is a concept that varies by industry, vertical, company and the availability of technology, so it's not easily understood nor is there one example of digital transformations. Business transformation is a common term for a dramatic program of change that typically involves everyone in an organization. And they weren’t alone. Strategic Vision: Make sure you develop the right strategic vision, so you have a clear idea of where you’re going and how you’re going to get there. Deloitte’s Business Transformation practice identified six keys to transformation success based on hundreds of engagements with some of the world’s leading companies. World’s Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys Bonn, Germany & Boston, MA –September 4, 2020 - LeanIX , a provider of Software - as - a - Se rvice solutions for Enterprise Architecture (EA) and Cloud Governance, today co ncluded day one of its two - day EA Connect Days conference. Businesses would be successful with their transformation when they are prepared for the changes and have a … Such transformations are never easy. However, changing the mission also called for changing the culture. Typically, the future of the business depends on their success. 5 excellent examples of successful transformation programs. Companies like Nike, Dominos, IKEA all adopted digital strategies to meet customer expectations and stay ahead of the competition. Make digital transformation a priority for your business as well as your workforce by putting the structures, systems and processes in place necessary to drive digital maturity and encourage growth. Examples of digital transformation: Discover how companies like Porsche, ... AmerisourceBergen realized early on in their journey that business transformation can only be successful when a culture of innovation is established across the entire ... Each team had to take ownership AND leadership of their own part of the business. Only in subsequent years did founder and CEO Pony Ma Huateng broaden the firm’s outlook by embracing a mission of “improving the quality of human life through digital innovation.” Since 2011, Tencent has invested heavily in new growth ranging from education and entertainment to autonomous vehicles and ride sharing to fintech and the industrial internet—areas that together now represent 25% of its $46 revenue. Each of these companies developed new-growth businesses outside its traditional core  which have become a significant share of the overall business. Projections for the year 2030 showed that 70% of the world’s GDP would be based in water-stressed regions, California and Southern India being prime examples. Inspiring Examples of Digital Business Transformation . Make digital transformation a priority for your business as well as your workforce by putting the structures, systems and processes in place necessary to drive digital maturity and encourage growth. It’s transform or wither in today’s business environment, with multiple transformation triggers creating strong pressure simultaneously. The T-20 study identified the global companies that have achieved the highest-impact business transformations over the past decade as measured by new growth, respositioning the core business, and financial performance. DBS was named among the top 20 companies globally that have pulled off a major transformation of their business, alongside Netflix, Amazon and Alibaba, in a study by strategy consulting firm Innosight. These include applying new technologies, focusing on solutions, and leveraging data. After investing €10 million the new contract service platform ‘Kloeckner Connect’ and new B2B webshop launched in March 2016, achieving: Copyright © 2019 Mentor Europe Associates Ltd. All rights reserved. The transformation traces back to 2016 when the first Microsoft Surface 3s were made available to schools in regional and remote areas. Robert Bolton KPMG in the UK Mike DiClaudio KPMG in the U.S. Related content. Harvard Business Publishing is an affiliate of Harvard Business School. “Ownership culture is central to everything,” Humpton says. Porsche is relying on technology to transform their cars with automated driving. Net profits have increased by $3 billion since it began the transformation, and Ørsted is now the world’s largest offshore wind company, with about a third share of booming global growth market. Under Poulsen, Ørsted embarked on what critics called an impossible mission: a systematic “cost-out” program to reduce the price of offshore wind while achieving scale. Riyad Bank’s Enterprise Business Intelligence Competency Center 114 E.SUN Bank’s Customer Risk Value Organization 118 Success Story Takeaways 120 Applying the Lessons from E.SUN and Riyad 121 The Most Important Characteristics of Successful Business Transformation Strategies 121 A Step-by-Step Look at the Key Components 122 Successful companies, our findings suggest, typically favor an all-in, enterprise-wide transformation, rather than constraining the transformation to individual business units or functions. A new radio plan – reducing time and complexity, Launch plans developed for business and consumer markets, 10.9% rise in gross income to EUR 23.68 billion for 2015, 19% year-on-year increase in customers (14.8 million by 2015), interacting through online and mobile channels, 19.2% of new consumer credits in Spain were sold through digital channels. … The takeaway lesson from these mission-changers is clear: In an era of relentless change, a company survives and thrives based not on its size or performance at any given time but on its ability to reposition itself to create a new future, and to leverage a purpose-driven mission to that end. 1000. These transformations help organizations compete more effectively, become more efficient, or make a wholesale strategic pivot. In the case of Tencent Holdings, the company was founded in 1998 to harness the Internet opportunity, launching online chat forums and video games for China’s new generation of digital natives. “As our teams widened their awareness of global issues, our pride has been enhanced.” So has Ecolab’s market value, which has surpassed $55 billion, placing it among America’s top 100 most valuable firms. DBS, Netflix, Alibaba among top 20 firms globally that have successfully transformed their business. World's Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. Here’s a shot of the whiteboard for your reference! To grow much beyond its $3.8 billion in revenue, the company could have kept moving into adjacent markets or new geographies, but Baker felt that wasn’t bold enough. Digital transformation is key to the survival of many companies, yet digital transformations are tough and frequently fail. A primary metric driving the organization is how much water is saved by its clients annually, which now stands at 188 billion gallons, against a 2030 target of 300 billion gallons. Editor’s note: Every ranking or index is just one way to analyze and compare companies or places, based on a specific methodology and data set. McDonald’s. https://hbr.org/2019/09/the-top-20-business-transformations-of-the-last-decade Follow in their footsteps to digitally transform your business. Examples of digital transformation success stories: Five companies that shine. Digital transformation is key to the survival of many companies, yet digital transformations are tough and frequently fail. Our research team screened all the firms in the S&P 500 and Global 2000 using three lenses: Our initial phase of research identified 52 companies making substantial progress towards strategic transformation—merely 3% of the public companies in our data set. Polaris These cookies will be stored in your browser only with your consent. In developing the BTM methodology, we carried out 13 case studies of different types of business transformation in large European corporations. You can use the following examples to inspire and demonstrate business outcomes that are based on actual transformation journeys. These cookies are used to collect information about how you interact with our website and allow us to remember you. For us to be hugely successful we have to be a focused passion brand. Going Digital Improved Best Buy’s Performance. Each of these companies developed new-growth businesses outside its traditional core which have become a significant share of the overall business. How this business transformation journey can be designed more successfully was the core topic of this year's EA Connect Days 2020, organized by LeanIX. Here are five company examples that show successful transformations, across a range of industries and locations. Engaging employees. Rita McGrath, management professor at Columbia Business School, BEH Swan Gin, Chair of the Singapore Economic Development Board, Phil Coughlin, Chief Strategy Officer at Expeditors (Seattle), Amantha Imber, CEO of Inventium (Sydney, Australia), Nathan Furr, Professor of Strategy, INSEAD. The first step in any successful digital transformation is to embrace the cloud and what it can do for your organization. Our aim was to identify the global companies that have achieved the highest-impact business transformations over the past decade, using the same methodology as our 2017 study. Through its Tencent Education business unit, the firm is now developing educational content and services for individuals, schools, and education management. HR transformation Good practice manual: HR transformation Higher … Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. More often, it's an attempt to cope with change that has already occurred. LeanIX, a provider of Software-as-a-Service solutions for Enterprise Architecture (EA) and Cloud Governance, today concluded day one of its two-day EA Connect Days conference.The EA peer event was attended by more than 3,000 IT managers and EA experts … The company had invested in offshore wind power, but the technology was too expensive, producing energy that was more than double the price of onshore wind. Talktalk, alongside partners Sky and CityFibre, chose York as the first UK city to deploy its Ultra Fibre Optic Broadband. However, digital transformation takes on different forms, depending on the industry, and encompasses unique business challenges and goals. All rights reserved. Strategies for Business Transformation Success To overcome these challenges, Jennifer offered a four-point strategy. Digital Transformation in the Enterprise 1. They are often adopted independently, but many companies are employing all three as they work to increase the value they deliver. But the biggest failure factor is NOT what you think! Strong leadership and maintaining energy for change among employees are two principles of success that reinforce each other when executed well. Others look at business transformation as the start of a change – a process that starts with purpose, strategy, and vision, and then takes shape through a series of changes to the business. Best Buy saw its market share in the consumer electronics industry dip... 2. McDonald’s has recognized a massive shift in consumer behavior and they are trying to adapt by digitally transforming their restaurant experience and company processes. To give you a better understanding of what real 'Digital Transformation" looks like, here are 5 real businesses that leveraged new technologies to digitally transform and evolve their business. McDonald’s has recognized a massive shift in consumer behavior and they are trying to adapt by digitally transforming their restaurant experience and company processes. Business transformation has pervasive effects on the organization. For example, according to a DMG Consulting report , the Cloud-Based Contact Center Infrastructure (CBCCI) market has increased its number of seats by 20.1% between 2017 and 2018. Business transformation is an umbrella term for making fundamental changes in how a business or organization runs. More often, it's an attempt to cope with change that has already occurred. When both principles are used, the success rate rises to 79 percent. However, we believe it’s the decision to infuse a higher purpose into the culture, one that guides strategic decisions and gives clarity to everyday tasks, that has propelled these companies to success. Usually, these new goals are centered around a new digital transformation implementation. At HBR, we believe that a well-designed index can provide useful insights, even though by definition it is a snapshot of a bigger picture. China’s AIA Group has moved beyond insurance to become a wellness company, whereas Dutch electronics giant Philips has largely divested its legacy lighting business to focus on healthcare technology. Three core strategies are used to achieve meaningful business transformation. Here are five company examples that show successful transformations, across a range of industries and locations. This category only includes cookies that ensures basic functionalities and security features of the website. ... AmerisourceBergen realized early on in their journey that business transformation can only be successful when a culture of innovation is established across the entire organization. Instead of shutting down or taking a break, these large companies are making big transformations to stay alive and stay relevant. Necessary cookies are absolutely essential for the website to function properly. Siemens moved beyond a purpose of maximizing shareholder value to a mission of “serving society.” This transformation began in 2014 with a plan called Vision 2020 that called for harnessing technologies such as AI and the Internet of Things. Digital transformation at Banco Bilbao Vizcaya Argentaria (BBVA). Southwest, not United. For example, they began installing kiosks where customers can quickly customize their hamburgers. Over the next ten years the city invested $4.5 billion in the Second Avenue Subway system, achieving: In 2014, the manufacturing industry was characterised by steel supply chain inefficiency – typified by long delivery times, incorrect delivery times, high inventory levels. Successful digital transformation requires an agile workforce that is ready to change, reskill and upskill. This website uses cookies to improve your experience while you navigate through the website. Not every principle is equally important every time … HBO, not Dish.”. The technology companies on our list also discovered ways to infuse purpose into their organizations as part of their fundamental change. Deloitte’s Business Transformation practice identified six keys to transformation success based on hundreds of engagements with some of the world’s leading companies. In Review ... You need to find a compelling reason why the business transformation is necessary in order to get everyone on board, ... just some examples… The company managed to cut the cost by more than 60% while building three major new ocean-based wind farms in the U.K. and acquiring a leading company in the U.S. 1000. Data, partners, and leadership is critical to customer engagement says Forbes Insights Report . They’re awkward and expensive, demanding complex, high-speed interactions between internal functions and major suppliers. Target’s Digital Transition Strategy. For example, they began installing kiosks where customers can quickly customize their hamburgers. Infusing a higher purpose into the company called for pushing decision making out from the center to every business unit, so that managers and rank-and-file employees feel they have a stake in future success. 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