Disruption doesn’t necessarily mean your core product has lost its value. Demystifying Digital and Securing $100 Trillion of Value for Society and Industry by 2025, an overview of the World Economic Forum’s Digital Transformation of Industries (DTI) initiative, is available here. All rights reserved. For Unilever, that meant transforming their approach to scale. Here are 11 inspiring case studies of digital transformation. Blockbuster on Demand had newer content than Netflix, but they charged consumers on a title-by-title basis—as much as $3.99 per title. Digital transformation at Axel Springer The case traces the digital transformation journey of Axel Springer from a traditional print business to a digital powerhouse of classified advertisements. Businesses and employees are already using software robots to increase efficiency, generate greater returns, and free employees from tedious tasks. As part of an ongoing transformation initiative, the MTA set out to install over 50,000 digital screens across its entire network. Digital Transformation Challenge DT Accelerator “AI + X” Enabler – AutoML Platform Digital Transformation Case Study Challenge – Corporate Digital Transformation Enabled by L&D or Augmented Workers Gartner Terms of Use A video-rental business might seem quaint now, but, at the time, the business model was highly profitable. As the internet-era emerged, Blockbuster’s grip on movie rentals faced a major challenge from a new internet-first company – Netflix. Instead, users fled Nokia to phones with better software, seeking improved user experiences. Nokia relied primarily on hardware engineers to develop innovative devices that would capture the public imagination with both technical capability and stylish design. Smartphones captured consumer needs that the PC couldn’t. Blockbuster’s business model was instead tied to late fees, introducing friction when a customer wanted to rent. Even companies that have built their profits on innovation will face disruption if they’re not willing to refresh their approach.Nokia started as a paper mill in the late 1800s, eventually merging several jointly owned businesses to form the Nokia Corporation in 1967. 2. As we saw with Blockbuster, however, no degree of prior success will guarantee your survival once technological and consumer trends start moving in different directions.Ben Thompson, a technology writer, argues that three trends eroded the foundation Microsoft relied on: Despite these trends pointing away from Windows and OS centricity, former CEO Steve Ballmer publicly recommitted to a Windows-first philosophy in 2013, stating, “By deploying our smart-cloud assets across a range of devices, [Microsoft] can make Windows devices once again the devices to own.”So far, this appears to be a classic example of the disruption pattern about to repeat. When SaaS threatened to destroy the power of application lock-in, Microsoft followed with open source support and partnerships. Over the following decades, they scaled to selling a multitude of products made from oils and fats. AMAZON BUSINESS : Served as an example of ‘digital customer’ expectations transitioning to the … The ‘automation first’ era is upon us, and, as in the mainframe, personal computer, and mobile technology eras that preceded automation first, businesses that can’t adapt will lag behind. Privacy Policy. Nokia laid out its future in the late 1970s and early 1980s when it launched the first international cellular system. Nothing builds trust and morale like a successful digital transformation case study. The case traces the digital transformation journey of Axel Springer, one of Europe’s largest media houses, from a traditional print business to a digital powerhouse in the online world of paid content, classified Read case studies that will help you support digital transformation in your organization Digital initiatives focused on future differentiation When charting the firm’s digital transformation, strategy leaders often struggle to prioritize key initiatives and business leaders default to ROI-based metrics tuned to the current … By continuing to use this site, or closing this box, you consent to our use of cookies. Digital Strategy, To sanctify Microsoft’s new future, Nadella made Microsoft Office available on the iPad—something the old guard would never have agreed to. When Blockbuster was the only option, customers endured the friction. Societal Implications. CASE STUDY: MERGER + DIGITAL TRANSFORMATION PROFILE Our client is one of Canada’s largest financial institutions and insurance companies, with over $50 billion in assets under [...] Learn more The wide distribution and ecosystem that developed ensured that businesses and consumers remained locked into the Microsoft application suite. By not understanding the problem that their solution temporarily solved, Blockbuster was unable to adapt to an internet-first company when it needed to. None of them failed to see the future, but only some managed to successfully adapt to it. Blockbuster couldn’t figure out how to provide a frictionless experience. Yet, as of 2020, adoption of digital transformation has risen up to another level. By focusing on personal computers, IBM missed a more important shift. The company also acquired companies like Lipton, Ben & Jerry’s, and Dollar Shave Club. Instead, Microsoft pursued customer need first and foremost and found a place for itself supporting customers at various points in their lives, from the office to the home … Disruption is more a pattern than an event. 22. Join this webinar to learn actionable steps professionals can take to optimize their Sarbanes-Oxley process, reduce risk, increase control, and enable insight across the organization. The DTI initiative has focused so far on six industries ( automotive , consumer , electricity , healthcare , … Take advantage of Ionology's digital transformation guides, tutorials and case studies to learn more about digital transformation. See how Alpha Co. (pseudonym), a top education company, uses these three tools to achieve cross-organizational digital transformation: By clicking the Nokia overestimated the risk of shifting to smartphones but underestimated the risk of disruption.The very approach that made Nokia dominant also cleared the way for defeat. This model only needed to rely on effective logistics. Postlight joined the MTA as a partner to transform its rider engagement platform. IBM paid Microsoft for the right to use their operating system (OS) but—crucially—allowed Microsoft to keep licensing that OS to other companies. Seeing the opportunity, rental stores purchased the tapes and rented them cheaply. What is Digital Business? Unilever started selling margarine and soap in the early 1900s. They understood that the graphical user interface (GUI) was the key to broad PC adoption, and partnered with manufacturers to place their software on most of the PCs that shipped. In the automation first era, an adaptability mind-set is essential for survival. That dominance, however, wasn’t due to smartphones, so the rise of this new technology appeared to be a risk rather than an opportunity. It’s easy to envision a time in the future when every human will have a software robot of their own at their disposal—a robot for every person. It means the relationships between you and your customers are shifting, and the infrastructure necessary to build and maintain those relationships is also changing. How many more customers could you help if each employee had a robot at their disposal? In the automation first era, you’ll be able to fulfill potential that has, thus far, remained untapped. Acquiring more stores gave Blockbuster more supply and more data to fuel selections. The point of leverage in the computing industry was moving from hardware manufacturing to the operating systems that linked software and hardware. As alluded to before, this renewed strategy has led Microsoft to more partnerships. The automation first era is here, and now is your chance to transform. Predicting its failure would have been a bold claim, and people hailed its market power. Instead of addressing its core problems, Blockbuster distracted itself by playing catch-up and taking big, poorly planned risks. Today, 89% … The rise of the Internet, web applications, and software as a service (SaaS) reduced application lock-in, enabling people to reach outside the Microsoft ecosystem. This shift kept the company going, but its scale meant agility would be a challenge. Digital Transformation: What it is, case studies & best practices. Digital Transformation at Small Institutions: A Case Study Technology vendors for the SMFI market should rethink their approach to contracting, especially as regards digital transformation. Register now. After 2010, Unilever started pulling away from its declining food business and moved toward health and beauty. A company previously focused on establishing and then defending closed ecosystems has now formed substantial relationships with would-be competitors, including Dropbox, Red Hat, and Amazon—including an appearance from Nadella at a Salesforce conference. Microsoft’s digital transformation strategy was one of humility—recognizing that success doesn’t always come from dominance. Crowdsource and manage your automation pipeline, Reveal processes by analyzing system logs, Where citizen developers can build automations, Pre-built automation components & templates, Your digital workers—attended, unattended, and hybrid, Where robots check in with you for direction, Browse our RPA business partners listings, Integrate your software stack with UiPath, Help prepare companies for hyperautomation, Learn RPA skills with free online training, Ask questions, find solutions, and share knowledge, Browse developer docs, install instructions, and release notes. Blockbuster signed an exclusive deal with Enron Broadband Services to provide video-on-demand in 2000 but had to tear up the contract after nine months due to Enron’s scandals. Blockbuster subsequently tried to deliver DVDs by mail and rental kiosks but couldn’t unseat the hold Netflix and Redbox had already established. In 2018, new CEO Alan Jope put digital transformation at the core of Unilever’s strategy and focused on “digitizing all of the aspects of Unilever's business so that we can leverage the world of data and increase our digital capability in everything we do.”Unilever had found a point of leverage.With a massive amount of data backing their digital-transformation and product-development strategies, Unilever has been able to spend less and sell more. If you’re not humble about your success, your victory will set up your eventual loss. With productivity as their new mission, they were free to pursue different goals and strategies to fulfill that mission. Companies that are thriving in this automation first era have developed digital transformation strategies that prioritize a change in mindset. Case study ● Strategy - Digital - Culture - Organizational Transformation By Professor Mikolaj Jan Piskorski and Ivy Buche "Submit" Beyond awareness, this renewed scale has helped Unilever launch brands about 50% faster than it used to. But in 1980, IBM realized the potential of the fledgling personal computer industry and rushed to catch up by inking a deal with a small, unknown company: Microsoft. This case study investigates how Hillarys embarked on a large-scale and complex digital transformation, The Opportunity Hillarys is the UK’s leading manufacturer and retailer of window blinds, curtains, shutters and awnings. Digital transformation case study for causes of homelessness in the united states essay To be involved than merely identifying something as an activity translate across different geographies, workforces, and generations to decode certain messages. Its success shaped an understanding of their customer that disruption eventually unraveled. We will reinvent productivity to empower every person and every organization on the planet to do more and achieve more.”By shifting from the assumption that Windows had to be the sun around which all computing experiences orbited, Microsoft was able to better identify, track, and serve evolving customer needs. Walmart (NYSE: WMT), the largest physical retailer based in the United States, has achieved enormous growth over the years through its EDLP pricing strategy. As a result, leaders overvalue near-term initiatives that provide limited insight into what will drive success for future business models. When one company takes the place of another, it’s likely only a matter of time before another company arrives to unsettle the industry again. Wedded to its previous path to success, Nokia believed their hardware design would keep users loyal as Nokia found its way in the, by then, rapidly growing smartphone market. See how Wedge Co. and Alpha Co. navigated through digital uncertainty and came up with solutions for growth, Reset Your Business Strategy Amid COVID-19, Organizational and alignment learning map. Here are some digital transformation case studies in manufacturing using technology to bring value to their company and customers. Prove its ROI For the vast majority of businesses, demonstrating effectiveness and proving ROI is the most difficult aspect of a digital transformation project, even with metrics in place. Digital Transformation: A Case Study of Technological Intervention The story is familiar. Gartner Terms of Use Netflix aligned its business model with the needs of its customers by providing entertainment on demand via subscription. Nadella pivoted from “Windows-first” to “Windows-and.” Compare Ballmer’s message emphasizing Windows with Nadella’s first strategy memo only months after taking over: “At our core, Microsoft is the productivity and platform company for the mobile-first and cloud-first world. Movie studios priced VCR tapes at nearly $100, pushing them outside the price range that an average consumer could afford. Traditionally, enterprises buy customer data from market-research firms, but Unilever chose to build its own database. To learn more, visit our Privacy Policy. Over the following decades, Microsoft built its dominance on Windows. Innovation and adaptability were never foreign ideas. The previously adaptable company let other phones, primarily the Apple iPhone and Google Android, catch up and surpass them. Privacy Policy. How many problems could you solve if software robots freed your employees from repetitive labor? What could you do with the scalable power of robots on your side? Find more about our Digital Transformation Case Study based on our experience with Merck’s pet care website & the results of this innovative initiative. Everyone won—especially the rental stores. They were even the first to develop a touch screen, internet-enabled phone. Our case solution is based on Case Study Method expertise & … The Bank, one of the British “Big Four,” a statured institution with a long and illustrious history, displayed some of the classic struggles in … Nokia had a lot of success. With the rise of personal computers in the 1980s, companies started going through digital transformations to improve their products/services and reduce costs. That shift means, first and foremost, that if something can be automated, it should be automated.The best way to develop a digital transformation strategy is to learn by example. Even when Blockbuster directly addressed Netflix’s disruptive service, Blockbuster’s assumptions about its customers proved to be an Achille's heel. Learn about the steps the company took to isolate the most critical areas for success. In this article, I’ll go over four companies that succeeded or failed against the threat of disruption. Let’s cut through the marketing speak. PC hardware and design reached a level of quality that was high enough to lengthen the upgrade cycle, reducing the number of new purchases. Nokia released some of the first mobile phones, though their cumbersome, heavy weight made mobility a little dubious.By the late 1990s, Nokia was the world’s top cell phone provider. When charting the firm’s digital transformation, strategy leaders often struggle to prioritize key initiatives and business leaders default to ROI-based metrics tuned to the current business. Understanding that both FET and its enterprise customers would need an agile platform to offer customized services in near real time, FET and Ericsson built a superior digital transformation reference case … Digital Transformation at Walmart: A case study. Instead, Microsoft pursued customer need first and foremost and found a place for itself supporting customers at various points in their lives, from the office to the home and from devices outside Microsoft to services within. The Tate's Digital Transformation is a Harvard Business (HBR) Case Study on Sales & Marketing , Fern Fort University provides HBR case study assignment help for just $11. and When smartphones and mobile devices went where PCs couldn’t, Microsoft chose to support instead of chase. It operates two dedicated call centres, which. Customers began signing up to choose movies online, and receive them in the mail. We use cookies to deliver the best possible experience on our website. and Scale can create competitive leverage, but if you’re facing disruption it can also drag you down. When they were selling Baby Dove in India, for example, their data enabled targeted advertisements that cost one-fifth the normal price for the same brand-awareness impact. Share Facebook Twitter. Gartner Terms of Use hbspt.cta._relativeUrls=true;hbspt.cta.load(416323, '5e135635-ac00-4854-b36a-7374747a4d60', {}); TOPICS: Microsoft has also acquired, but not radically changed, companies and products like Minecraft, LinkedIn, and GitHub. We often talk about companies that failed to navigate disruption in terms of vision. In order to develop a new marketing Despite undertaking more digital initiatives with wider scopes, companies often report that they fail to achieve the level of insight necessary to learn about business model change. ©2020 Gartner, Inc. and/or its affiliates. The Tate’s Digital Transformation Case Study Solution ANALYSIS MARKETING STRATEGY In UK economy, the competition amongst UK market is rapidly increasing a few decade ago. Without the willingness to depart from success, even the biggest companies will eventually fall. Since the start of this ambitious digital transformation, we’ve helped EDC achieve notable success, equipping the business to effectively engage its audience and deliver increased value to customers across Canada. Hertz recently filed a $32M lawsuit against Accenture for its recent digital transformation failure. Blockbuster is infamous for its failure to transform. The companies that have so far survived disruption were willing to invest in digital transformation and change the mindset of the company. Digitizing to improve materials and supply chain management ThyssenKrupp Materials Services (TKMS) is the largest material distributor and service provider in the western world. 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