The transformation began by talking to customers, Baker says. Digital Transformation in the Enterprise 1. 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. They will impact the customers. The first step in any successful digital transformation is to embrace the cloud and what it can do for your organization. Inspiring Examples of Digital Business Transformation . That’s why strategic transformation may be the business leadership imperative of the 21st century. In 2012, Denmark’s biggest energy company, Danish Oil and Natural Gas, slid into financial crisis as the price of natural gas was plunging by 90% and S&P downgraded its credit rating to negative. Business transformation is an umbrella term for making fundamental changes in how a business or organization runs. In Review ... You need to find a compelling reason why the business transformation is necessary in order to get everyone on board, ... just some examples… McDonald’s. We also use third-party cookies that help us analyze and understand how you use this website. With a rich history spanning over 125 years and some of the big names such as Thomas Edison as its founding fathers, General Electric is one of the pioneers and one of the most iconic brands in electrical industry. Mobile Network Operator Launch. 5 excellent examples of successful transformation programs 1. Published on October 19, 2016 October 19, 2016 • 156 Likes • 20 Comments Follow in their footsteps to digitally transform your business. Copyright © 2020 Harvard Business School Publishing. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. Here are five company examples that show successful transformations, across a range of industries and locations. ... 10 Examples Of How COVID-19 Forced Business Transformation. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. Business transformation is a common term for a dramatic program of change that typically involves everyone in an organization. They’re awkward and expensive, demanding complex, high-speed interactions between internal functions and major suppliers. 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. A more comprehensive scope increases the chances of creating value-generating opportunities across functions. It’s transform or wither in today’s business environment, with multiple transformation triggers creating strong pressure simultaneously. Successful digital transformation requires an agile workforce that is ready to change, reskill and upskill. DBS was named among the top 20 companies globally that have pulled off a major transformation of their business, alongside Netflix, Amazon and Alibaba, in a study by strategy consulting firm Innosight. Click here to see the full T20 study results and methodology. In Mexico this figure was 29.6%, Redefined organisational structures to nurture change and innovation, 2,400+ customers signing up to the service with TalkTalk and Sky since the beginning of 2016, York placed as one of the top digital infrastructure cities in the UK, Broadband speeds up to 100x faster than the UK average, Programme to be expanded to cover 40,000 more premises by 2019, Estimated 2000,000 use the line on an average weekday, Extra lifts and escalators for people with mobility problems, 500+ customers onboarded in Germany, Austria and Hungary within 3 months of launch, Increase in digitally managed revenue to more than 50%, Net Working Capital reduced by almost €200 million (35%+ drop), New innovation process established – lean, agile, customer-centric. The first step in any successful digital transformation is to embrace the cloud and what it can do for your organization. Speaking in business outcomes can feel like a foreign language to many technically minded individuals. Polaris Find out how these companies succeeded where others failed. Manhattan is the most densely populated county, placing high demand on transport infrastructure. He renamed the firm Ørsted after the legendary Danish scientist Hans Christian Ørsted, who discovered the principles of electromagnetism. 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. Only in subsequent years did founder and CEO Pony Ma Huateng broaden the firm’s outlook by embracing a mission of “improving the quality of human life through digital innovation.” Since 2011, Tencent has invested heavily in new growth ranging from education and entertainment to autonomous vehicles and ride sharing to fintech and the industrial internet—areas that together now represent 25% of its $46 revenue. Robert Bolton KPMG in the UK Mike DiClaudio KPMG in the U.S. Related content. The T-20 study identified the global companies that have achieved the highest-impact business transformations over the past decade as measured by new growth, respositioning the core business, and financial performance. When both principles are used, the success rate rises to 79 percent. More often, it's an attempt to cope with change that has already occurred. They determine that an innovative technology – big data, or artificial intelligence, for example – is the flavor of the month and they look for ways to implement it in their business. 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 Strategies 121 A Step-by-Step Look at the Key Components 122 Make digital transformation a priority for your business as well as your workforce by putting the structures, systems and processes in place necessary to drive digital maturity and encourage growth. Typically, the future of the business depends on their success. With Mentor’s help, Tele2 (Netherlands) were able to achieve: In 2007, BBVA faced changing customer expectations, and  industry disruption from new entrants, meaning BBVA had to adapt and evolve its financial offering. After investing €10 million the new contract service platform ‘Kloeckner Connect’ and new B2B webshop launched in March 2016, achieving: Copyright © 2019 Mentor Europe Associates Ltd. All rights reserved. To grow much beyond its $3.8 billion in revenue, the company could have kept moving into adjacent markets or new geographies, but Baker felt that wasn’t bold enough. In developing the BTM methodology, we carried out 13 case studies of different types of business transformation in large European corporations. Inspiring Examples of Digital Business Transformation . Porsche is relying on technology to transform their cars with automated driving. What You Need to Know About Business Process Transformation. Business transformation is a common term for a dramatic program of change that typically involves everyone in an organization. And they weren’t alone. Some entrepreneurs and corporate managers, when they think of digital transformation, end up getting ahead of themselves. For the third round, the following companies were selected as the Transformation 20 and ranked by a panel of management experts (see judges). This includes personnel, processes, and technology. 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. Southwest, not United. 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. In this post, we’ll review 5 digital transformation examples from industrial enterprises making big changes and seeing incredible results. More often, it's an attempt to cope with change that has already occurred. This website uses cookies to improve your experience while you navigate through the website. HR transformation Good practice manual: HR transformation Higher … LeanIX, a provider of Software-as-a-Service solutions for Enterprise Architecture (EA) and Cloud Governance, today concluded day one of its two-day EA Connect Days conference.The EA peer event was attended by more than 3,000 IT managers and EA experts … As the memo said, “We don’t and can’t compete on breadth with Comcast, Sky, Amazon, Apple, Microsoft, Sony, or Google. This includes personnel, processes, and technology. Tele2 (Netherlands) B.V. by The RIQ News Desk . 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. Going Digital Improved Best Buy’s Performance. By doubling its systems investments from $1.2 billion in 2011 to $2.4 billion by 2013 and in spending a reported $951 million on IT, BBVA was able to achieve: In 2014, York City Council was dissatisfied with the level of connectivity available to its schools and council offices. These cookies are used to collect information about how you interact with our website and allow us to remember you. 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.”. However, digital transformation takes on different forms, depending on the industry, and encompasses unique business challenges and goals. For example, when leaders ensure that frontline staff members feel a sense of ownership, the results show a 70 percent success rate for transformations. These include applying new technologies, focusing on solutions, and leveraging data. This category only includes cookies that ensures basic functionalities and security features of the website. “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. 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. We always urge you to read the methodology carefully. These transformations help organizations compete more effectively, become more efficient, or make a wholesale strategic pivot. Strategies for Business Transformation Success To overcome these challenges, Jennifer offered a four-point strategy. Each of these companies developed new-growth businesses outside its traditional core  which have become a significant share of the overall business. Let’s take a look at examples of digital innovations in marketing, sales, and service that build closer customer relationships and empower employees across all industries. 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. For example, according to a DMG Consulting report, the Cloud-Based Contact Center Infrastructure (CBCCI) market has increased its number of seats by 20.1% between 2017 and 2018. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. 3000 Attendees participate in LeanIX #EAConnectDays to share Enterprise Architecture case studies on successful business transformations 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. Make digital transformation a priority for your business as well as your workforce by putting the structures, systems and processes in place necessary to drive digital maturity and encourage growth. For us to be hugely successful we have to be a focused passion brand. Strong leadership and maintaining energy for change among employees are two principles of success that reinforce each other when executed well. Three core strategies are used to achieve meaningful business transformation. A roadmap for successful HR transformation The disruptors, the movers and the bold Share. Not every principle is equally important every time … 5 excellent examples of successful transformation programs. 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. 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. Some entrepreneurs and corporate managers, when they think of digital transformation, end up getting ahead of themselves. Data, partners, and leadership is critical to customer engagement says Forbes Insights Report . Roisin Woolnough asks Janice Miller, director of leadership programmes at Harvard Business Publishing, about HR’s role in ensuring transformation is successful. Business Process Transformation involves radically changing the elements of your processes to meet new business goals. ... AmerisourceBergen realized early on in their journey that business transformation can only be successful when a culture of innovation is established across the entire organization. For inspiration, here are 5 excellent examples of brands that are driving success through digital transformation. Usually, these new goals are centered around a new digital transformation implementation. At its best, business transformation is a move to own the change that is sweeping an industry. By far the most interesting example of digital transformation comes from none other than General Electric. 73% of business transformations fail. Robert Bolton KPMG in the UK Mike DiClaudio KPMG in the U.S. Related content. Rather than task one department with bringing about the change, the company intends to involve every single employee. 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. Roisin Woolnough asks Janice Miller, director of leadership programmes at Harvard Business Publishing, about HR’s role in ensuring transformation is successful. “We saw the need to build an entirely new company,” says Poulsen. Examples of digital transformation success stories: Five companies that shine. Here’s a shot of the whiteboard for your reference! All of this growth helped Tencent become the first Asian company to surpass $500 billion in market valuation. However, changing the mission also called for changing the culture. 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. Business transformation programs come up for one of two reasons: they either solve a problem or exploit an opportunity. Such transformations are never easy. 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. But the biggest failure factor is NOT what you think! Spending approximately £20 million, York City Council was able to achieve: In 2007, New York experienced a rate of population growth not seen since the 1920s. 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. Engaging employees. Capital One is a great example of a banking and credit card business that has reinvented itself by adopting the latest technology. We use this information in order to improve and customise your browsing experience and to personalize ads and for analytics and metrics about our visitors both on this website and other media. 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. Target was another company that improved their digital presence. In a comparable way, the purpose-driven mission of preventative healthcare has spurred major change at other large organizations that made the list. There are many digital transformation examples of small to large scale businesses that will help you to understand digital transformation. From this second-round list, an Innosight partner panel voted to narrow it down to 27 finalists. Business transformation has pervasive effects on the organization. Here are 11 inspiring case studies of digital transformation. Jennifer Bridges, PMP, shows you how to lead a successful business transformation. Successful companies, our findings suggest, typically favor an all-in, enterprise-wide transformation, rather than constraining the transformation to individual business units or functions. Digital transformation can be disruptive, however, the training for it shouldn’t be. For example, according to a DMG Consulting report , the Cloud-Based Contact Center Infrastructure (CBCCI) market has increased its number of seats by 20.1% between 2017 and 2018. In 2014, Tele2 (Netherlands) wanted to accelerate the launch... 2. Editor’s note: Every ranking or index is just one way to analyze and compare companies or places, based on a specific methodology and data set. Below we highlight 5 examples of successful business transformation programs. World's Largest Meeting of Enterprise Architects Concludes: Real-World Examples of Successful Business Transformation Journeys. 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