"Change is the law of life. And those who look only to the past or present are certain to miss the future." – John F. Kennedy.
As companies strive to keep ahead of the game, many are relying on digital transformation strategies as a way to stay competitive. Microsoft and Target are two success stories that have already implemented successful processes of digital transformation.
They understood early in the process that harnessing technology is essential for sustaining their long-term performance and growth. This makes it all the more important to explore how they succeeded with digital transformation and what strategies they implemented, along with understanding what other industry leaders are doing to make an even bigger impact.
The Profitable Journeys of Microsoft and Target
Microsoft went above and beyond when it realized it needed a unique strategy if it wanted to remain competitive with its competition, such as Amazon, Apple and Google.
Microsoft states that they focused on taking advantage of cloud computing solutions, which provided them with easier access into the market for both individual consumers as well as large businesses. This turned out to be an extremely good decision resulting in the company becoming one of the world's leading providers of cloud technology services through Microsoft Azure – this, in turn, gained them increased visibility which has translated directly onto their stock prices which is all the way up to over $300 today (July 2023).
The Power of Strategic Partnerships
Microsoft continues to make strategic partnerships with other premier tech companies (e.g., SAP, Oracle), essentially holding its leading position within its field before anyone else can catch up. As a result, their market capitalization is now valued at well over $2 trillion.
At a similar pace, Target's digital transformation plan focused primarily on introducing online ordering for customers alongside launching a digital marketing initiative. This turned out to be very profitable, and share prices increased in value reaching $131 in July 2023. Plus, Target's revenue also rocketed and increased by $3 billion compared to the previous year.
Rise in Digital Transformation Strategies
Around 70% of organizations worldwide have a digital transformation plan they're working on, which is a big deal. It's pretty obvious that businesses are making digital transformation their main priority, and they're putting a lot of money into this. I mean, global spending on digital transformation was massive in 2021, hitting about $1.5 trillion. And this year, it's expected to rocket all the way up to nearly $6.8 trillion worldwide.
To put it simply, businesses in all kinds of industries are realizing just how valuable it is to add digital technologies into their way of doing things. Take Honeywell, the massive aerospace company, for example. They're going digital by creating apps that let customers check out their heating and cooling systems wherever they are.
Digital Advancements in Various Industry Sectors
Now if you look at companies like Hasbro and Home Depot, they're using some really groundbreaking technologies to overhaul their supply chain systems. Hasbro, the famous toy company, is using AI (artificial intelligence) systems to manage its supplies, which is really making things more efficient and saving them money.
Home Depot is using digital transformation to enhance its supply chain and logistics. This is not only making them more productive but also helping them save money.
Over in the tech world, we've got Microsoft using stuff like Azure (which is a cloud-based platform) to better interact with customers and improve their base of operations while figuring out their data better.
Then we've got Target, the giant retail store, launching targeted digital marketing initiatives. What does that tell us? Well, basically, if a business invests wisely in digital technology, the benefits can be pretty great.
Empowering Your Business through Digital Transformation Strategies
When it comes to effectively implementing digital transformation strategies, there are a few key points you should take into consideration.
Walkme (a business and technology blog) highlights that, first and foremost, examine the technologies your company currently uses and the needs they fill; then, go on to identify any potential gaps in order to determine where attention should be focused most.
It's important that when starting a digital transformation journey, employees become comfortable with this new way of working and do not feel intimidated by the technology they don't understand or can't operate.
Creating a Seamless User-Centric Experience
When designing an approach for your organization's digital transformation process, create a roadmap as guidance for everyone involved – from source material all the way through customer experience. The business world is constantly evolving, which means having ambition and being open-minded about future prospects is key if your organization wants to generate new ideas for products and services going forward.
Focusing heavily on user experiences (UX) also plays into creating successful strategies because users will lose interest quickly if you do not provide them with accessibility and convenience when viewing product offerings and information. Make sure your platform is equipped with intuitive navigation systems so customers can easily purchase products/services or find out more about what your organization stands for.
Having attractive designs helps, too, because visuals play one of the strongest roles in forming customer interest/experience firsthand before really diving deep into the content itself.
Implementing Cutting-Edge Technologies in Digital Transformation
As you explore digital transformation strategies, there are some new technologies that can really take your business to the next level. First up is AR and VR, this cutting-edge suite of technologies is getting more accessible all the time, and it's becoming an industry powerhouse.
Glueup (a software solutions site) states that with AR/VR, companies can provide customers with enhanced experiences, such as remote tours will enable people to save shopping time and will allow buyers unprecedented control over their purchases.
Next is 5G technology -a surefire way to enhance performance while allowing instant connections between devices. Plus, due to its improved data speeds, media-rich content will work seamlessly across multiple channels without having any buffering issues usually inherent with 3/4g services.
The Quantum Frontier
And last but not least is Quantum Computing, a hot topic within the tech industry that could potentially revolutionize many aspects of how businesses work. Its primary strength is the ability to solve complex problems with speed and precision, which could be used to analyze new business models. Plus, its unprecedented levels of encryption make it an ideal choice for any business looking for secure transactions at lightning speeds.
Digital Transformation is becoming ever more essential for modern businesses if they are going to remain competitive, let alone ahead of their pack. Companies like Microsoft and Target have forged remarkable success stories by taking full advantage of their potential, but with new technologies popping up all the time, there remains plenty more scope for businesses to explore. Careful consideration of different strategies must be taken when employing digital transformation within any business framework so that you can find out what works best for you.