Here are some very basic examples of customer centricity: Here are three examples of companies that aced their digital business transformation to improve customer experience. It’s not an easy task to shift from a product-centric to a customer-centric business. Each of these companies developed new-growth businesses outside its traditional core which have become a significant share of the overall business. Subscribe to Plutora Blog to learn about the latest trends in software delivery and get a FREE copy of “Mastering Software Delivery with Value Stream Management” by Jeff Keyes. AI is at the forefront of digital transformation and currently powers the algorithms of almost all large corporations. However, AI and ML enable many other types of business transformation. business transformation consultant 03/2009 to current Retained by Coach to lead change management for strategic initiative. You need to teach them how they can leverage sentiment data to gain insights about product perception and product value. What’s the impact of cultural change on business transformation? Best Buy’s digital transformation hasn’t been without hiccups, but the results are starting to show. It’s important that your organization understands the value and benefits of a consumer-centric focus to stay competitive. 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. Adding a chat option on your website can increase conversions between your brand and your customers. What are some examples of successful digital transformations that improve customer experience? 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. It’s a great example of customer centricity. The result: Previously about 80% owned by the Danish government, Ørsted’s IPO in 2016 was one the year’s largest. As the memo said, “We don’t and can’t compete on breadth with Comcast, Sky, Amazon, Apple, Microsoft, Sony, or Google. 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. It refers to changes in your businesses because of the changing behavior of consumers. However this is a relatively narrow definition that overlooks other reasons and ignores other rationales. Furthermore, they want a tool to email the invoices to their customers. All rights reserved. Blockbuster filed for bankruptcy in 2010 when it couldn’t compete with the CX vision of Netflix. Leadership, data analysis, project and program management, human capital workforce planning, human capital strategy … Culture plays a big role as you transform from a product-centric to a consumer-centric business. They made efforts to improve the way customers searched for products on their website. Copyright © 2020 Harvard Business School Publishing. However, 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. From this second-round list, an Innosight partner panel voted to narrow it down to 27 finalists. When he's not writing, he's probably enjoying a Belgian beer! 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. Our first business transformation example … Our transformation approaches are underpinned by proprietary tools and technologies to enable real, sustained change. The second one is a lack of clearly defined roles. For example, a particular business wants to automatically process all of their invoices within a matter of minutes. Starbucks, not 7-Eleven. The strategic impulse to identify a higher-purpose mission that galvanizes the organization—is a common thread among the Transformation 20, a new study by Innosight of the world’s most transformative companies. Do you want to get started with transforming your business? Blockbuster was renting movie DVDs and didn’t change their business model over time to keep up with changes in their customers’ behavior. These tools help companies better understand consumer needs. We always urge you to read the methodology carefully. Just look at Amazon’s upselling and cross-selling. However, changing the mission also called for changing the culture. First, there are underlying problems or causes of organisational pain that need to be addressed. In 2019, Tencent refined its mission once again, in response to the growing global backlash against technology’s dominance in our lives, boiling it down to: tech for social good. It’s the same technology that shows you ads based on your past internet browsing activity. Business Transformation Manager Resume Examples & Samples. To do that, a company has to switch from traditional, local advertising to online advertising. According to research by PwC, 86% of consumers are willing to pay more for a better customer experience. 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. Developed change management program and tools to ensure Coach's new … Instead, the new point of focus is customer obsession or customer centricity. Such transformations are never easy. How do artificial intelligence and machine learning support business transformation? Speaking in business outcomes can feel like a foreign language to many technically minded individuals. For example, according to a DMG Consulting report, the Cloud-Based Contact Center … “The biggest obstacle to any transformation is literally just the way we’ve always done things,” says Siemens USA CEO Barbara Humpton. As of 2005, shortly after its IPO, Tencent defined its purpose in terms of “implementing our Online Lifestyle strategy, which strives to cater to the basic needs of our users.”. For us to be hugely successful we have to be a focused passion brand. CIO uses IT business analysts familiar with the specific process area to drive … 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. Leave your email to get our weekly newsletter. He renamed the firm Ørsted after the legendary Danish scientist Hans Christian Ørsted, who discovered the principles of electromagnetism. The #1 company, Netflix, is a case in point. New technologies such as artificial intelligence (AI) and machine learning (ML) are now more available than ever to small businesses. This technology brings in enormous amounts of revenue for businesses by recommending more and more things you might like to purchase. Digital transformation is basically an umbrella term that covers current and future changes in technology that must occur to remain up-to-date with your customer’s preferences and needs. For example, you have to teach your employees how to gather sentiment data. All Rights Reserved •. You only need a single tool to automate the whole payment flow. https://apiumhub.com/tech-blog-barcelona/digital-business-transformation The technology companies on our list also discovered ways to infuse purpose into their organizations as part of their fundamental change. Another interesting example is the competition between Netflix and Blockbuster. 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 … This post discusses some of them and highlights the following points: Next, let’s take a look at digital transformation. CX transformations include hundreds of changes that you can implement to increase revenue for your business. Going Digital Improved Best Buy’s Performance. Comcast adopted a machine learning algorithm that suggested programs and movies according to a customer’s past viewing history. All of this growth helped Tencent become the first Asian company to surpass $500 billion in market valuation. Plutora’s tool detects inefficiencies in each phase of product development, from ideation to product delivery, and provides you with analysis tools to quickly improve those processes. Michiel is a passionate blockchain developer who loves writing technical content. 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. The Given this definition, let’s look at some examples of business transformation: Under this definition, the development and introduction of a new IT-driven business service counts as a transformation: it will certainly affect the company’s business … This makes a lot of sense. Negative sentiment towards a certain product often indicates that the product doesn’t deliver the promised value to your customer. 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. 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. Business transformation is an umbrella term for making fundamental changes in how a business or organization runs. The combined company is now one of the world’s leading suppliers of hardware, software, and chemistry that helps manufacturers and service firms become more efficient users of water. This allows them to become increasingly competitive with larger companies. Mobile Network Operator Launch. Providing a seamless mobile experience in addition to the desktop version of your website helps retain customers: How can you personalize each interaction a consumer has with your company? Examples of Companies Improving Customer Experience Through Digital Transformation Comcast. Three core strategies are used to achieve meaningful business transformation. Machine learning is the technology Netflix uses to predict which shows customers might prefer to view next. This type of integration between devices has become the norm for digital broadcasting platforms. Best Buy saw its market share in the consumer … 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. They might be based, for example, on introducing a major new … Business Transformation is a change management strategy which has the aim to align People, Process and Technology initiatives of a company more closely with its business strategy and vision. Th And they weren’t alone. Maybe there are people on the business transformation … This led to an increase in revenue from search of 16%. 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. This shift in the culture at Siemens has propelled plans to divest its core oil and gas business and redeploy the capital to its Digital Industries unit and Smart Infrastructure business focused on energy efficiency, renewable power storage, distributed power, and electric vehicle mobility. “Our strategic plan was to sell more of what we had,” Baker says. A company providing such a tool can drastically improve customer value for their client. Several companies found that refocusing the organization to help save the planet can be especially powerful. We continue to see disruptions in the form of e-commerce, changing communication patterns, and social media marketing. What algorithms can you use to enhance recommendations and make the decision process simpler for customers? To learn about how we have helped organisations with business transformation examples visit: www.modernwaysofworking.com/insights. In 2011, Ecolab had a $12 billion market cap when it acquired water technology company Nalco in an $8 billion deal. Customer-centric companies try to increase their ROI by improving the customer experience (CX). 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. Often, loyal customers are willing to spend more money on products that bring them great value. The majority of HD Supply’s customers didn’t use the search field because it didn’t have enough filters to help users quickly find the products they needed. Furthermore, they’ve added device integrations that allow users to watch videos on multiple devices, like laptops, tablets, and smartphones. Business process transformation is part of the larger concept of business process management (BPM). Decision support refers to recommendations and predictions of future activities your customers might engage in. Copyright © 2012 • 2020 Plutora. Fortifying this new view, the Business Roundtable last month released a statement signed by 181 CEOs stating that serving shareholders can no longer be the main purpose of a corporation; rather, it needs to be about serving society, through innovation, commitment to a healthy environment and economic opportunity for all. Instead of improving a single interaction, the tool would take care of the whole payment process. Identify the goals of the transformation. Therefore, for many businesses, the best way to reach potential clients is through social media. 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. GE is already using the latest 3D printing technologies to … These include applying new technologies, focusing on solutions, and leveraging data. Risk Managing pervasive risks that threaten the reputation of a firm such as … Another interesting example … https://hbr.org/2019/09/the-top-20-business-transformations-of-the-last-decade Automating all customer communications with a. Check out how Plutora helps you measure and track business transformation goals and enables continuous improvement while integrating governance and compliance checks. For example, sentiment analysis is now a hot topic. Business process transformation follows similar steps to business process management, but attempts to make bigger and more drastic changes. In management it has been said that Business Transformation involves making fundamental changes in how business is conducted in order to help cope with shifts in market environment. Since unveiling that new purpose, Netflix revenue has roughly tripled, its profits have multiplied 32-fold, and its stock CAGR has increased 57% annually, versus 11% for the S&P 500. As of July 2019, it sells for around $74. Brands can monitor what users tweet about their products and which opinions they share on Amazon. Southwest, not United. You can use the following examples to inspire and demonstrate business outcomes that are based on actual transformation … Introduction To Business Transformation. They are often adopted independently, but many companies are employing all three as they work to increase the value they deliver. ... Undergoing a massive transformation and pivoting to a new direction could be the only way many companies stay … Strategic Transformation Objectives are concerned with realigning the organization more effectively with the exact needs of its target market. Users can even start watching a movie on their laptop and later switch to their mobile device to continue watching from where they left off. “We broadened our vision and our purpose changed,” Baker says. Steps in Business Process Transformation. Customer sentiment analysis helps organizations to better understand the needs of their customers. We looked at the shift to combat climate change, and we became one of the few companies to wholeheartedly make this profound decision, to be one of the first to go from black to green energy.”. In fact, users accessed the search feature of the website less than 10% of the time. They provided an online alternative to going to stores and physically renting movies. Artificial intelligence systems can be … Also, a failure to assess the capabilities. “It had to be a radical transformation; we needed to build a new core business and find new areas of sustainable growth. “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. Tele2 (Netherlands) B.V. Companies monitor the customers’ sentiment towards their products and services. This is an amazing example of a media company that used digital transformation to enhance the consumer... Netflix. Business Transformation – a change strategy. In 2014, Tele2 (Netherlands) wanted to … Personalization can be taken to a whole new level. The transformation began by talking to customers, Baker says. The price you see when you book a train or airline ticket online depends on your online behavior and data history. Providing an excellent customer experience turns new customers into loyal customers. That strategic impulse—to identify a higher-purpose mission that galvanizes the organization—is a common thread among the Transformation 20, a new study by Innosight of the world’s most transformative companies. With technologies and businesses evolving at the speed of light, we’re witnessing a new era of business transformation. Maybe the people on the business transformation, it’s unclear who’s responsible for what. Harvard Business Publishing is an affiliate of Harvard Business School. Whereas some leaders might have gone into crisis-management mode, laying off workers until prices recovered, Poulsen recognized the moment as an opportunity for fundamental change. Airplane turbine parts made in 3D printers. Companies can then analyze customer sentiment and adjust their products or marketing based on the results. That’s why strategic transformation may be the business leadership imperative of the 21st century. In turn this helps to support and innovate new business … It can also help detect products that lack quality. In 2013, CEO Reed Hastings released an 11-page memo to employees and investors detailing a commitment to move from just distributing content digitally to become a leading producer of original content that could win Emmys and Oscars. Get notified of new articles. 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. In addition, Netflix implemented machine learning that suggested movies and shows to users, and the rest is history. When the firm now known as Ørsted divested its oil and natural gas businesses and began phasing out coal, that created a giant earnings gap that urgently needed to be filled. Besides that, he loves learning about marketing, UX psychology, and entrepreneurship. 2.1 Transforming to more Inclusive Business Models: From Platform Plays and Holistic Solutions When crossing the … The same customers who were buying its core products were also voicing concerns about access to clean water. You must promote and encourage innovative ideas and change traditional ways of doing business. 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. Way to reach potential clients is through social media platforms build an entirely new company, Netflix, on other! Strategic transformation may be the business transformation, it ’ s take a look Amazon! To build an entirely new company, is another company that used digital transformation and currently powers the of. 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