Read these case studies, illustrating how companies have leveraged digital transformation (DX), to see how DX strategies help businesses thrive.
Blog Post
8 minute read
Dec 14, 2023
Writing letters used to be the main way to communicate with friends and family who lived far away. But after the invention of cell phones, letter writing became nearly obsolete as text messages provided a simpler, faster approach to correspondence.
Digital transformation works in a very similar way. It offers companies easier, quicker solutions with cutting-edge technology to keep competitive and up-to-date. While every company has different needs when it comes to digital transformation, all possess the ability to grow through it.
If digital transformation is something you may be interested in, take a closer look at Impact’s strategy-based offerings. These services help businesses to enact their vision for the future in today’s constantly evolving landscape.
Embracing Digital Transformation
For many companies, executing digital transformation involves shifting away from traditional viewpoints and moving towards a more experimental approach to uncover new solutions, improving customer experience, encouraging company growth, and fueling employee engagement.
Delve into some case studies of companies that have welcomed digital transformation and thrived because of it:
One of the most effective digital transformation case studies focuses on the growth of Netflix. Beginning in 1997 as a DVD rental company, Netflix has since converted into a multi-billion-dollar, global streaming platform. It is what allowed them to outlast their original competitors, Blockbuster and Family Video.
As the digital age rose and internet bandwidth increased, improving video streaming quality, Netflix noticed an opportunity and took advantage of it by embracing digital technologies. While still offering traditional DVD rental, Netflix began to provide an on-demand video streaming service.
Netflix’s revenue skyrocketed, and in 2010, Netflix took hold of 20% market share in North American viewing traffic. The COVID-19 pandemic also propelled Netflix forward as 36 million subscribers were added during that period. As of 2023, Netflix is the most popular digital video content provider.
Had Netflix decided not to enter into the digital space, the company would not be the successful, household name that it is today, instead going the way of other video rental companies.
Amazon Case Study
Did you know that Amazon started off as an online bookseller? Originating in 1994, the multinational corporation has grown to become the leading global ecommerce retailer, worth over $500 billion in 2022.
During its initial stages, Amazon struggled with fierce competition in the online retail space, making it difficult to earn profits. As digital customer expectations changed quickly, Amazon scaled up its ecommerce practices to meet expectations, establishing business agility. In 2015, the company launched Amazon Business: a marketplace tailored to B2B businesses, featuring over 250 million products ranging across a broad spectrum of uses.
As Amazon took advantage of the technological changes, it also prioritized customer-focused goals, using digital transformation to deliver top-notch customer service. Amazon also introduced new features to better serve its customers, such as free two-day shipping on orders of $49 or more and shared payment methods.
Without scaling up its ecommerce practices to serve changing buyer demands, Amazon could have easily fallen behind its competitors by failing to stand out in the marketplace.
Faulkner Hayes Case Study
Faulkner Hayes, a heating, ventilation, and air conditioning (HVAC) distributor, has been in business for over 35 years. The company found success with digital transformation by trading the manual processes that were costing money, time, and resources for automated data distribution.
Originally, Faulkner Hayes required the combined efforts of customer service and order entry employees to complete order processing and invoice processing. Staff had to keep track of emails to suppliers with invoices, manually compile order-related information and send it out, and collect information from vendors.
Then, the company upgraded to an industry-specific system for distributors and manufacturer’s representatives that didn’t offer automation—requiring staff to do data entry manually, which created opportunities for inconsistencies and made customer service worse.
Faulkner Hayes partnered with Impact’s Digital Transformation team and DPI Information Services to map out how to bring automation to the HVAC industry as a whole with the integration of a third-party system, machine learning, automation with software bots, and data consolidation.
The HVAC distributor has benefitted from the implementation of technology by saving in costs and time, becoming an industry leader, improving customer service and experience, and having the ability to scale with minimal additional hiring needs.
If Faulkner Hayes had not shifted its manual processing procedures to automated systems, the organization would have continued to bear the substantial cost of hiring employees to fulfill orders, all while struggling to maintain satisfactory customer relationships due to human errors.
LEGO Case Study
According to the US Bureau of Labor Statistics, only about 21% of businesses make it to the 20-year mark, so try to imagine the percentage that makes it to 90. LEGO is one of the few—and the company can credit its success to constantly embracing new strategies and evolving throughout the years.
The Danish toy company has remained an integral part of many childhoods since its establishment in 1932. From then on, LEGO has experienced periods of significant accomplishments and faced the brink of bankruptcy.
LEGO initially encountered substantial market competition in 1988 when the patent protection for its iconic LEGO brick expired. In response to this challenge, LEGO chose to diversify, leading to a crisis instead. From 1992 to 2004, LEGO suffered a consistent decline, eventually nearing the brink of bankruptcy.
Approaching a tipping point, LEGO restructured its entire business. The board of directors overhauled the technology infrastructure within the company. By centralizing an ERP platform for logistics, sales, IT, and manufacturing, LEGO was able to continuously optimize all of its business processes.
LEGO also made improvements to its online presence, began offering digital enhancements to products, and engaged with customers in the digital world. The company also connected its physical products to the virtual world by releasing children’s apps and movies.
By taking advantage of digital transformation, LEGO was able to survive for much longer than the average company and continues to thrive to this day.
Espinoza’s Leather Company Case Study
You may have seen these iconic leather jackets in Sons of Anarchy, Hobbs & Shaw, and The Purge (TV Series). Espinoza’s Leather Company, a California-based family business that started in the 70s, turned to digital transformation to overhaul the outdated processes in its organization. Originally, the company kept critical data for orders on sheets of paper, making the process labor-intensive and difficult to organize.
After working with Impact, the company was able to go nearly paperless in the order-taking process, automatically email customers status updates on their vests, safely store customer orders, and be easily searchable.
Digital transformation allowed Espinoza’s Leather Company to get rid of its pain points, reduce time spent on customer communications by 50%, increase sales, expand focus on growth-oriented projects, and access critical data more easily.
Watch the case study preview here:
Under Armour Case Study
Under Armour is a leading sportswear and equipment brand worth nearly $3.5 billion, per Forbes. The company, initially a wholesale apparel provider, has championed the digital side of businesses to make the brand stand out among competitors and aid customers in reaching their fitness goals.
But Under Armour hasn’t always been so successful. Founded in 1996, the company faced extreme competition in the footwear industry, contending with well-known brands like Nike, PUMA, and Adidas. To differentiate itself, Under Armour turned to digital transformation.
The brand’s digital evolution shifted it into a global retail company with multiple channels. Under Armour’s emphasis on a customer-centric strategy led to the acquisition of technology-based fitness companies, expanding its customer database and launching its fitness app.
Additionally, Under Armour combined its physical products with technology with its introduction of the tool “ArmourBox,” where customers can share their training schedule, favorite shoes, and fitness goals.
By prioritizing customers’ needs, helping them interact with each other, and leveraging digital transformation, Under Armour was able to establish a powerful brand.
Closing Out on Digital Transformation Case Studies
Digital transformation revolutionizes businesses by offering companies advanced technology to streamline operations and remain competitive. Each company’s unique needs can be met with transformation solutions.
The case studies mentioned above exemplify how embracing digital transformation can lead to remarkable success. By prioritizing the customers’ needs and leveraging technological advances, companies can thrive in today’s competitive landscape. If the concept of digital transformation captures your attention, explore Impact's strategy-focused services. These opportunities empower businesses to modernize technology and stay up to date.
