Digital transformation stories from major brands around the world

With the success of the 4th industrial revolution, digital transformation is now an inevitable trend, a matter of survival for countries, organizations, businesses, and consumers worldwide, opening the door for nations to increase labor productivity, promote innovation, and enhance national competitiveness.

Let’s explore digital transformation stories from major global brands with 1Office in the article below!

I. Digital transformation stories from major global brands

1. AMAZON BUSINESS

Amazon Business is a prime example of digital customer expectations transitioning to the B2B (Business to Business) world.

Key features of Amazon Business include: free two-day shipping on orders of $49 or more, exclusive price discounts, hundreds of millions of products, purchasing system integration, tax-exempt purchases for eligible customers, shared payment methods, order approval workflows, and advanced order reporting, among many other great features.

Amazon Business launched in April 2015, offering a more comprehensive marketplace for B2B companies with over 250 million products.

Amazon Business is a prime example of digital customer expectations transitioning to the B2B world

2. IKEA

The world’s leading furniture retailer from Sweden is one of the outstanding examples of digital transformation. Thanks to new technologies, IKEA is improving the customer shopping experience and optimizing costs in the process.

In 2017, IKEA acquired TaskRabbit. This is a website that allows users to find people to help assemble or move furniture purchased from IKEA to their apartments. Through this, IKEA attracts customers who cannot manage these tasks themselves, providing convenience and ensuring the best user experience.

Ikea is one of the successful digital transformation examples

Additionally, IKEA has decided to implement a smart home project. When shopping on the IKEA app, customers can digitally place new items into realistic 3D images of their homes.

They can see how an item affects the arrangement of their current furniture, experiment with new styles, and ensure it fits their budget before making a purchase decision.

See more: Digital Transformation in the B2C Commerce Industry in the Customer Era

3. NIKE

NIKE – the giant in the athletic footwear industry – has begun to focus on digital transformation.

Slowing growth and an outdated business model forced Nike to change its mindset and undertake a comprehensive digital transformation overhaul to restructure its brand image and supply chain.

By digitizing 6,000 footwear materials, the company’s design teams can work faster and more efficiently. This directly impacts the speed of responding to market demands.

NIKE – the athletic footwear giant is starting to focus on digital transformation

Additionally, instead of selling only through exclusive distributors, Nike began to do business directly with consumers or partner with e-commerce companies like Amazon and Alibaba to implement digital transformation strategies.

The effectiveness of Nike’s digital transformation is very clear. In early 2017, the company’s stock price was around $52, but by July 2019, it had reached $88. The company’s revenue also increased from $33.5 billion to $39.1 billion during the same period.

See more: The Import-Export Industry in the “Storm” of Digital Transformation

4. LEGO

After 3 decades of expansion and development, Lego began to face a serious decline from 1992-2004. By 2004, Lego was on the verge of bankruptcy.

Facing a precarious situation, Lego decided to restructure and implement digital transformation to find new sources of revenue.

Thanks to this important step, Lego escaped the brink of bankruptcy as digital transformation allowed it to expand its business into movies, mobile games, and phone applications.

LEGO has achieved great success thanks to digital transformation

The company also created a website to collect customer ideas for new block sets. If an idea receives significant support, the company will consider launching it as a product.

This certainly stimulates the creativity of the brand’s fans while also fostering customer loyalty. Moreover, Lego toys have also become more modern. The blocks are sometimes equipped with advanced solutions like sensors.

One of the applications they successfully developed is Lego Digital Designer – an application that allows players to design their own Lego structures.

Customers can build their own personalized “creations” and share them with other players.

After 10 years of transformation, Lego’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin reached 37.1% in 2014, an increase of 15% compared to 2007.

2014 was also the first year Lego’s film division achieved revenues of $468 million with an investment of only $60 million. Thus, the profit was several times the investment.

See more: Digital Transformation in the Real Estate Industry – The Big Picture

5. MCDONALD’S

After not applying technology to its sales operations for a long time and receiving underwhelming results, McDonald’s decided to make a change.

In 2015, McDonald’s began installing self-service kiosks, allowing customers to customize their burgers with premium toppings.

One of their previous commitments was for the 2015 Super Bowl. McDonald’s used social media to give away products related to the commercials aired throughout the game.

As a latecomer in the e-commerce race, McDonald’s only introduced its smartphone app to consumers in early 2015, but this was the perfect launchpad for the global brand to boost its competitive activities in the market.

After not applying technology to its sales operations for a long time, McDonald’s decided to make a change

According to a survey, just 6 months after its launch, 45% of McDonald’s customer base had used this offer on their phones. And that number would increase if more McDonald’s restaurants offered home delivery.

Crucially, McDonald’s has the ability to respond instantly to consumers and proactively monitor social media trends in real-time.

Through this effort, they attracted over 1.2 million retweets, including from celebrities like Taylor Swift.

See more: Should the Spa and Beauty Industry Undergo Digital Transformation During the Covid Season?

6. DISNEY

Disney is one of the outstanding examples of digital transformation and significantly improving the customer experience.

In 2013, Disney introduced the MagicBand wristband, provided to all visitors, allowing them to book rides and attractions, enter their hotel rooms, order meals at park restaurants, and pay for purchases at gift shops.

The wristbands are part of a broader Disney initiative called MyMagic+, which involves eliminating “bottlenecks” – unnecessary stress – for visitors at every point of their Disney journey, starting from when they book their tickets online.

The system allows visitors to use the My Disney Experience app to plan which attractions they want to visit, where they want to eat, and which characters they want to meet.

The system then generates an automated itinerary designed to minimize crowds and wait times, while fulfilling every request the guest has made.

Another example of Disney’s digital transformation is the Disney+ streaming platform. Essentially, Disney+ is a Netflix-like video platform that owns a large number of films and shows produced by Disney, such as Pixar, Marvel, and Star Wars.

Disney is one of the excellent examples of digital transformation

Disney earned a large profit – an estimated $300 million – by putting its movies and exclusive content on Netflix and other services. However, if Disney+ is attractive enough to draw millions of paying users, it could generate much higher revenue while providing Disney with an exclusive platform to develop new content for both existing brands and original products.

As a result, platform users (10 million on launch day) have access to the latest products from Pixar, Marvel, and the Star Wars saga. The launch of Disney+ is not only a major step for Disney into the digital streaming business but also an entry into the competition with Netflix, Amazon, and Apple.

Read more: An overview of digital transformation in Vietnam’s IT industry

II. The secret to successful digital transformation for Vietnamese businesses

The 4th Industrial Revolution has been strongly impacting the globe, forcing governments and businesses worldwide to face major challenges that require changes to adapt to the advancements in technology and science.

In response to this trend, the Vietnamese government is also gradually applying it to management and building an e-government, with policies and laws being amended to create a legal system that aligns with current trends.

1Office – The all-in-one business management solution

In addition, the Vietnamese government also encourages industries and businesses to apply digital transformation in all fields, such as: business digital transformation, digital transformation in the banking sector, digital transformation in education, in communications, etc.

Understanding the difficulties businesses face during the digital transformation era, 1Office offers an all-in-one business management solution that includes a suite of digitalization tools to help businesses improve work efficiency, manage projects and campaigns, thereby saving time, costs, and other resources.

With the Workplace toolkit, departments can easily search and filter information. Managers can easily access and track project progress without needing to be physically present.

Digitizing all images and data helps businesses easily reach and attract potential customers.

In addition, the HRM toolkit can solve all human resource management issues by rapidly digitizing all data.

The process of nurturing, classifying, and screening candidate profiles during recruitment is also carried out in detail with a clear and transparent process.

This helps managers clearly grasp the personnel situation, then gain a comprehensive view of human resource fluctuations to address issues promptly.

The HRM toolkit can solve all human resource management issues

Furthermore, the data security feature is also enhanced, minimizing the risk of information leaks to prevent malicious actors from exploiting it, which could affect the company’s reputation.

Anyone in the business can easily use the 1Office software. With simple and easy-to-understand operations, superiors and employees can interact, freely discuss, and share everything through the internal network, helping to save time and improve work performance.

In addition, 1Office has been selected by the Ministry of Information and Communications as a pioneering platform in the national digital transformation program, being a solution that brings sustainable efficiency to businesses.

If you are facing difficulties in your digital transformation process, sign up for a trial to receive a consultation. 1Office will help you solve your challenges quickly!

Read more:

What is Digital Transformation: A step into the future for businesses

Application of digital transformation in Vietnam’s Construction industry

The current state of digital transformation in businesses today