Digital transformation is a big topic of interest for CIOs and CTOs. It is poised to effect every industry. Companies and organizations need to adapt to change and digital transformation in its many forms or fall behind the competition. That being said, it can be challenging to truly understand what digital transformation is, and, more than that, what it can do for an organization.
We have shared the details of what this concept entails and what it doesn’t (check out our previous article). Now, we will give you some real-life examples of how other organizations approached digital transformation successfully.
If you find yourself feeling inspired, great! GroupLink is pleased to partner with you in any or all of your digital transformation efforts.
Case Study: Disney MagicBands
Disney is a company that has been around for a long time, working to marry the traditional joy and magic of Disney with modern technology to streamline operations, especially at busy amusement parks. One of its latest efforts in digital transformation is the MagicBand, which replaces the need for park admission tickets, ride FastPasses, hotel keys, and even currency, as users can purchase food and merchandise with the device. Reservations, personal details, and the entire customer experience are managed through the band and an associated app, all linked into Disney’s own guest management system.
The transformation was a success, with high approval ratings and an increase in profits thanks to higher customer spending, likely itself due to the ease of shopping with the band. Just think of how your organization could change if you were able to streamline operations to reach Disney’s level of efficiency.
Case Study: Volkswagen Digital Ecosystem
Volkswagen has undertaken the development of what it calls the largest digital ecosystem in the automotive industry. Jürgen Stackmann, Volkswagen Brand Board Member for Sales, says Volkswagen vehicles will “increasingly become digital devices on wheels.” That means both customers and third parties can benefit from digital transformation, using and creating applications that work in Volkswagens. From car-sharing to parcel delivery to parking and billing apps, the aim is an integrated, fully connected fleet of smart vehicles.
For the company, it means a strategy that differentiates it from competitors, as well as the metrics and analytics, and customer relationship that comes with digitization. Volkswagen gets insight into how the vehicles are being used to improve operations and profits, and consumers have a highly personalized experience every time they use their vehicles.
Case Study: Audi City Showrooms
Audi, another vehicle manufacturer, used digital transformation strategies to capture a part of the market that was previously untapped. Audi City, its showroom concept for urban locations, brings the entire Audi range to even the smallest city locations, thanks to Audi’s keen use of digital technology. Visitors can virtually explore all of Audi’s cars in places like Berlin, Paris, Istanbul, Moscow, and Warsaw, even customizing the models before seeing them in practically real-life size on gigantic screens.
With this transformation, Audi has seen sales go up 60 percent from the traditional showroom at the London location, showing that consumers are happy to use virtual tech when it is realistic and well made.
Case Study: McDonald’s Digital Ordering
If you have been to a McDonald’s restaurant in recent years, you have likely noticed at least one of the ways the company has digitally transformed itself to meet consumer needs and make operations more efficient.
Inside restaurants, ordering kiosks allow hungry visitors to customize their meals to exactly what they want, without taking up the time of a worker at the order counter. For those who would rather talk to a worker, that option is still there, of course.
With the kiosks in place, McDonald’s can also gain insight into consumer behavior and trends, and keep food moving quickly on a daily basis, serving more people and keeping them happy. Add in mobile ordering, geofenced to find out when customers are approaching for the fastest, freshest food, and there are even more options for consumer insights alongside customer satisfaction.
Shares in the company are up as a result of digital transformation, as well as customer sales.
UPS, the package delivery business, moves a lot of parcels every day. To make that delivery volume more efficient, the company developed its ORION project, as an effort to optimize delivery routes. The company used digital technology to first gather data, then use the information gleaned from that tech to improve operations.
ORION first involved telematic technology on delivery trucks, with tracking equipment, vehicle sensors, and drivers’ devices to understand what slowed deliveries down and what was working well. That data fed into an algorithm that evaluates and optimizes routes in real time, saving UPS about 100 million miles a year, equalling 10 million fewer gallons of fuel consumed, and 100,000 metric tons fewer in carbon dioxide emissions. It also saves UPS up to $50 million per just one mile saved by one driver each day, over a year. Small changes add up, which can certainly hold true for your organization, too.
Case Study: GE Digital Wind Farm
General Electric’s Digital Wind Farm project brings turbines together with digital technology and infrastructure, so anyone using wind technology can experience better performance, lower risk, and more cost efficiency. That’s because GE digitally transformed its wind turbines with analytics and wind power software, which collects data like weather, component health, service reports, and the performance of other models in the GE fleet to give turbine users insight and predictions based on real information.
Wind farm operations are able to better maintain equipment, ensure its reliability and availability, and ultimately increase energy production. GE also benefits from this transformation, gaining insight into how its turbine models are working, what improvements can be made, and generating more value for the energy industry. Real-time data is key to this digital transformation and may be helpful for your organization as well.
Enacting Your Own Digital Transformation Strategy
While it is true that the companies in these examples are larger corporations, your business does not necessarily have to be on the scale of Disney, Audi, or McDonald’s to create and implement a strong digital transformation strategy that will improve your business and keep your clients happy. Digital transformation is beneficial for companies of all sizes and types, across all industries, and can be as simple or complex as you would like it to be. The goal is to use technology and all that it offers to make your business better, whatever that looks like to you.
GroupLink is here to help you navigate digital transformation as a CIO or CTO, working with you to strategize and find the right technology for your needs. Reach out to us to learn more about what we do, by calling us at 801.335.0700 or using our contact page.
Stay tuned for our next article in this series, Culture Shock or Team Strengthening, which will help you understand and navigate the human side of digital transformation, to get your team on board and enhance your organization’s culture.