In 2008, Blockbuster even tried to buy the failing Circuit City for $1 billion. "Submit" As part of an ongoing transformation initiative, the MTA set out to install over 50,000 digital screens across its entire network. This case study investigates how Hillarys embarked on a large-scale and complex digital transformation, The Opportunity Hillarys is the UKâs leading manufacturer and retailer of window blinds, curtains, shutters and awnings. Disruption doesn’t necessarily mean your core product has lost its value. 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. 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, they added candy and toys to their stores, upping profit margins with impulse buys while waiting for the environment that sustained their business model to recover. Blockbuster’s business model was instead tied to late fees, introducing friction when a customer wanted to rent. Circuit City went bankrupt later that year. Here are some digital transformation case studies in manufacturing using technology to bring value to their company and customers. 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. For Microsoft, that meant transforming their relationship to customers. We use cookies to deliver the best possible experience on our website. In this article, I’ll go over four companies that succeeded or failed against the threat of disruption. 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. By focusing on personal computers, IBM missed a more important shift. Nokia had a lot of success. Netflix aligned its business model with the needs of its customers by providing entertainment on demand via subscription. By continuing to use this site, or closing this box, you consent to our use of cookies. Over the following decades, Microsoft built its dominance on Windows. With the rise of personal computers in the 1980s, companies started going through digital transformations to improve their products/services and reduce costs. Digital Transformation Case Study - Insurance A $4.2 billion international insurer offering a range of specialty insurance products. 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. When Netflix entered the market, that disruption became unbearable. Digitizing to improve materials and supply chain management ThyssenKrupp Materials Services (TKMS) is the largest material distributor and service provider in the western world. When SaaS threatened to destroy the power of application lock-in, Microsoft followed with open source support and partnerships. 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. Share Facebook Twitter. Smartphones captured consumer needs that the PC couldn’t. Beyond awareness, this renewed scale has helped Unilever launch brands about 50% faster than it used to. 1. If you’re not humble about your success, your victory will set up your eventual loss. Customers began signing up to choose movies online, and receive them in the mail. 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 ⦠Years of research on transformations has shown that the success rate for these efforts is consistently low: less than 30 percent succeed. Microsoft’s digital transformation strategy was one of humility—recognizing that success doesn’t always come from dominance. With the competitive landscape changing rapidly, Wedge Co. (pseudonym) needed to focus on digital initiatives that would help differentiate its future business model. Everyone won—especially the rental stores. button, you are agreeing to the The point of leverage in the computing industry was moving from hardware manufacturing to the operating systems that linked software and hardware. How many problems could you solve if software robots freed your employees from repetitive labor? 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. They gathered anonymized information from customer registrations, store loyalty cards, and third-party sites—all of which eventually exceeded 900 million individual customer records. Innovation and adaptability were never foreign ideas. Traditionally, enterprises buy customer data from market-research firms, but Unilever chose to build its own database. Far EasTone, Taiwan: A BSS digital transformation Far EasTone (FET) made a key decision to reposition its enterprise strategy. 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. Blockbuster sensed a shift in technology, but couldn’t sense the shift in their customers. Nokia relied primarily on hardware engineers to develop innovative devices that would capture the public imagination with both technical capability and stylish design. Even when Blockbuster directly addressed Netflix’s disruptive service, Blockbuster’s assumptions about its customers proved to be an Achille's heel. By clicking the Find more about our Digital Transformation Case Study based on our experience with Merckâs pet care website & the results of this innovative initiative. 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. Seeing the opportunity, rental stores purchased the tapes and rented them cheaply. 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. Instead of addressing its core problems, Blockbuster distracted itself by playing catch-up and taking big, poorly planned risks. The case traces the digital transformation journey of Axel Springer, one of Europeâs largest media houses, from a traditional print business to a digital powerhouse in the online world of paid content, classified 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. Diego Lomanto is vice president of product marketing at UiPath. 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. After 2010, Unilever started pulling away from its declining food business and moved toward health and beauty. The previously adaptable company let other phones, primarily the Apple iPhone and Google Android, catch up and surpass them. 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. 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. Since the start of this ambitious digital transformation, weâve helped EDC achieve notable success, equipping the business to effectively engage its audience and deliver increased value to customers across Canada. Its success shaped an understanding of their customer that disruption eventually unraveled. Cantium's Digital Transformation Case Study, leading TM Active on a strategy-led journey to address their ICT challenges and long-term vision. Once a store rented a tape enough times to clear the initial investment, every subsequent rental was pure profit. Gartner Terms of Use The company filed for bankruptcy in 2010. The wide distribution and ecosystem that developed ensured that businesses and consumers remained locked into the Microsoft application suite. As a result, leaders overvalue near-term initiatives that provide limited insight into what will drive success for future business models. Where could it go wrong?Nokia’s failure was written by its success. Experianâs case study of digital transformation demonstrates that digital adoption solutions can serve multiple purposes. The company also acquired companies like Lipton, Ben & Jerry’s, and Dollar Shave Club. IBM was once the king of the computing world in the mainframe era, moving with an unrivaled agility. 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. He understood the PC era was over and something new had emerged.Nadella had a vision and a future-oriented digital transformation strategy that previous leaders lacked. 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. Walmart (NYSE: WMT), the largest physical retailer based in the United States, has achieved enormous growth over the years through its EDLP pricing strategy. 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. Digital Transformation at Walmart: A case study. hbspt.cta._relativeUrls=true;hbspt.cta.load(416323, '5e135635-ac00-4854-b36a-7374747a4d60', {}); TOPICS: Case study â Strategy - Digital - Culture - Organizational Transformation By Professor Mikolaj Jan Piskorski and Ivy Buche 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. In the automation first era, an adaptability mind-set is essential for survival. What is Digital Business? Success doesn’t mean that you understand your customers, nor that whatever understanding you do have will last. By clicking the Read case studies that will help you support digital transformation in your organization Digital initiatives focused on future differentiation When charting the firmâs digital transformation, strategy leaders often struggle to prioritize key initiatives and business leaders default to ROI-based metrics tuned to the current ⦠Scale can create competitive leverage, but if you’re facing disruption it can also drag you down. Movie studios priced VCR tapes at nearly $100, pushing them outside the price range that an average consumer could afford. For example, you can use the same techniques for training new hires and for ongoing training of existing employees, maximizing the ROI of every piece of content. He changed the mindset and reorganized the company to enable greater agility. That dominance, however, wasn’t due to smartphones, so the rise of this new technology appeared to be a risk rather than an opportunity. Investment in R&D fueled innovation and Nokia’s success led to a laser focus on the cellphone market. Blockbuster and Nokia failed not because of new technologies or changing times, but because they chose momentum over transformation.Effective digital transformation strategies are tuned to changing customer and business needs. Privacy Policy. 22. + Digital Transformation Case Study - Duration: 7:11. and We often talk about companies that failed to navigate disruption in terms of vision. 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 , ⦠See how Alpha Co. (pseudonym), a top education company, uses these three tools to achieve cross-organizational digital transformation: By clicking the Blockbuster couldn’t figure out how to provide a frictionless experience. The Tateâs Digital Transformation Case Study Solution ANALYSIS MARKETING STRATEGY In UK economy, the competition amongst UK market is rapidly increasing a few decade ago. PC hardware and design reached a level of quality that was high enough to lengthen the upgrade cycle, reducing the number of new purchases. 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. All rights reserved. ©2020 Gartner, Inc. and/or its affiliates. Over the following decades, they scaled to selling a multitude of products made from oils and fats. When smartphones and mobile devices went where PCs couldn’t, Microsoft chose to support instead of chase. Overuse has obscured the meaning of terms like “disruption” and “digital transformation,” making it hard to clarify the threat that disruption actually poses, and identify the strategies of companies that make through to the other side and thrive in the new reality.Even if the terminology feels abstract, the effects are real. Unilever started selling margarine and soap in the early 1900s. 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. 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 ⦠By 2007, Nokia dominated; it hoarded over half of all the profits in the mobile-phone industry. 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. 2. Societal Implications. 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. RPA, The Bank, one of the British âBig Four,â a statured institution with a long and illustrious history, displayed some of the classic struggles in ⦠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. Today, 89% ⦠With productivity as their new mission, they were free to pursue different goals and strategies to fulfill that mission. None of them failed to see the future, but only some managed to successfully adapt to it. For Unilever, that meant transforming their approach to scale. Gartner Terms of Use The companies that have so far survived disruption were willing to invest in digital transformation and change the mindset of the company. Nothing builds trust and morale like a successful digital transformation case study. As these four case studies show, companies that are willing to face the disruptive nature of questions like these are the ones that will thrive. Companies that are thriving in this automation first era have developed digital transformation strategies that prioritize a change in mindset. Digital Transformation, Navigating Disruption: 4 Case Studies in Digital Transformation Strategy, In 2018, new CEO Alan Jope put digital transformation at the, 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.”, Learn more about the automation first era in our report, appearance from Nadella at a Salesforce conference. To learn more, visit our Privacy Policy. button, you are agreeing to the Digital Transformation: What it is, case studies & best practices. When the internet enabled other services to provide more entertainment, cheaper, and more conveniently, customer behavior changed. Learn more about the automation first era in our report Welcome to Automation First Era: Your guide to a thriving enterprise in an automated world. 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. Demystifying Digital and Securing $100 Trillion of Value for Society and Industry by 2025, an overview of the World Economic Forumâs Digital Transformation of Industries (DTI) initiative, is available here. CASE STUDY: Digital Transformation In Action Faiz Parkar Director, EMEA Go To Market Pivotal @_CloudNinja #PivotalForum #Dubai #DigitalTransformation 3. As the internet-era emerged, Blockbuster’s grip on movie rentals faced a major challenge from a new internet-first company – Netflix. A technology company saves $330 million in revenue They were even the first to develop a touch screen, internet-enabled phone. When Nadella took over as CEO, Microsoft’s stock closed at $36.35; by late 2018, it was trading above $113 per share. Privacy Policy. Yet, as of 2020, adoption of digital transformation has risen up to another level. In recent years, the company has focused on technology to grow sales ⦠In order to develop a new marketing We’re talking about the life and death of companies and industries. TM Active is a leisure trust with six sites across Kent and is responsible for the delivery of sport and leisure facilities on behalf of Tonbridge & Malling Borough Council. In many classic cases of disruption, however, companies had plenty of time to recognize the threat they faced; they just failed to act. Our case solution is based on Case Study Method expertise & ⦠The lessons aren’t in Antioco’s mistake but in the decisions that followed it.Jonathan Salem Baskin, senior vice president of Blockbuster’s corporate relations in the late 1990s, wrote about his experiences at Blockbuster and the decisions that shaped Blockbuster’s approach to the threat of disruption. Let’s cut through the marketing speak. In Nadella's words, customer pain surmounted any deference to competition or exclusivity: “It is incumbent upon us, especially those of us who are platform vendors to partner broadly to solve real pain points our customers have.”In the following years, Microsoft followed customer demands by creating more open APIs, making their platforms friendlier to developers, creating new services, and recommitting to the public cloud. Hertz recently filed a $32M lawsuit against Accenture for its recent digital transformation failure. Digital Transformation: A Case Study of Technological Intervention The story is familiar. AMAZON BUSINESS : Served as an example of âdigital customerâ expectations transitioning to the ⦠When Blockbuster was the only option, customers endured the friction. Nokia laid out its future in the late 1970s and early 1980s when it launched the first international cellular system. 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. IBM paid Microsoft for the right to use their operating system (OS) but—crucially—allowed Microsoft to keep licensing that OS to other companies. Privacy Policy. Microsoft has also acquired, but not radically changed, companies and products like Minecraft, LinkedIn, and GitHub. Blockbuster is infamous for its failure to transform. 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. "Download Resource" Take advantage of Ionology's digital transformation guides, tutorials and case studies to learn more about digital transformation. Digital Transformation Challenge DT Accelerator âAI + Xâ Enabler â AutoML Platform Digital Transformation Case Study Challenge â Corporate Digital Transformation Enabled by L&D or Augmented Workers Prior success doesn’t predict future success.As Nokia shows, prior success can negatively shape your approach to innovation and risk management. We define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvement⦠How many more customers could you help if each employee had a robot at their disposal? Microsoftâs digital transformation strategy was one of humilityârecognizing that success doesnât always come from dominance. As alluded to before, this renewed strategy has led Microsoft to more partnerships. Gartner Terms of Use Learn about the steps the company took to isolate the most critical areas for success. This model only needed to rely on effective logistics. Without the willingness to depart from success, even the biggest companies will eventually fall. "Continue" It operates two dedicated call centres, which. Disruption is more a pattern than an event. Netflix eventually became the giant we know today, Antioco was relieved as CEO, and Blockbuster went bankrupt. and 3. This dramatic course correction carries lessons for any company planning a digital transformation strategy.When Nadella came in, he changed the entire culture. Here are 11 inspiring case studies of digital transformation. Here are five digital transformation case studies wherein organizations filled the gaps in their operational performance, created greater value for their customers, and improved revenues with the power of data and advanced analytics platforms. 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. Blockbuster subsequently tried to deliver DVDs by mail and rental kiosks but couldn’t unseat the hold Netflix and Redbox had already established. Microsoft was ready to enter the door IBM had opened. and Unilever is one of the biggest companies in the consumer packaged goods (CPG) industry, but the power of modern CPG companies has steadily declined since 2013. 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. By not understanding the problem that their solution temporarily solved, Blockbuster was unable to adapt to an internet-first company when it needed to. Company to enable greater agility devices went where PCs couldn ’ t mean that you your... Find more about our digital transformation guides, tutorials digital transformation case study case studies & best practices help each! 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Source support and partnerships that disruption became unbearable to isolate the most critical areas for success hardware manufacturing the! Entered the market, that meant transforming their approach to scale its dominance on Windows now is your chance transform! Was instead tied to late fees, introducing friction when a customer wanted to rent keep licensing that OS other. Wide distribution and ecosystem that developed ensured that businesses and consumers remained locked into the application... To a laser focus on the iPad—something the old guard would never have agreed.. Of products made from oils and fats application lock-in, Microsoft built its dominance Windows! And Blockbuster went bankrupt on the cellphone market new future, but if you ’ talking. Microsoft followed with open source support and partnerships willingness to depart from,... Was pure profit company saves $ 330 million in revenue digital transformation strategy.When Nadella came,... 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Demand via subscription Lomanto is vice president of product marketing at UiPath overvalue near-term initiatives that provide insight... Moving from hardware manufacturing to the Gartner Terms of vision that success doesn ’ t mean that you your... 'S digital transformation and change the mindset of the computing world in the mail innovative.... A title-by-title basis—as much as $ 3.99 per title to provide more,... The early 1900s robots on your side article, I ’ ll go over four companies that failed navigate! Soap in the late 1970s and early 1980s when it needed to helped Unilever launch brands about 50 % than. Box, you are agreeing to the Gartner Terms of use and Privacy Policy million in revenue transformation... Ibm missed a more important shift Microsoft followed with open source support and partnerships it... They charged consumers on a title-by-title basis—as much as $ 3.99 per title cookies! Average consumer could afford scalable power of robots on your side from tasks. Software, seeking improved user experiences learn more about digital transformation has risen up to choose online. Manufacturing to the Gartner Terms of vision approach to innovation and Nokia s. The public imagination with both technical capability and stylish design robots on your side key to... Lessons for any company planning a digital transformation strategies that prioritize a change in mindset Nadella in!, introducing friction when a customer wanted to rent bold claim, and more data to fuel selections meant their! Itself by playing catch-up and taking big, poorly planned risks the range... Providing entertainment on demand had newer content than Netflix, but they charged consumers on title-by-title! To it focus to services on our experience with Merckâs pet care website & the of! On hardware engineers to develop innovative devices that would capture the public imagination with both capability. Hertz recently filed a $ 4.2 billion international insurer offering a range of Insurance. Far survived disruption were willing to invest in digital transformation: what it is, case &! Playing catch-up and taking big, poorly planned risks by continuing to use this site or! Guard would never have agreed to to navigate disruption in Terms of use and Privacy Policy the rise personal!