Key Points

• Digital transformation is a wholly transformative process for an entire organization, not just processes or workflows.
• If you want to stay competitive and remain innovative, digital transformation is the way forward.
• What we can learn from these companies is that a significant shift in organizational culture is necessary to better leverage the technologies and advantages digital transformation presents.

Does your company have what it takes to thrive through digital transformation? Embracing the modern era is a tricky subject, especially for legacy companies with decades of practices to update. It isn’t quite as simple as flipping a switch and everything is online. After all, these things take time. Rather than guide you along the way, today we’re taking a closer look at some of the companies that have thrived in the wake of their digital transformation.

We’ll take a closer look at what worked, and perhaps you’ll come away from everything with a greater understanding of why your organization might need to modernize as soon as possible.

What Is Digital Transformation?

Digital transformation is a process of organizational change. At an elemental level, it is integrating technology at all levels of an organization, whether it be in how you keep track of your inventory or how you respond to in-person requests.

Essentially, you’re looking for a seamless transition between someone’s online experience to their expectations in person. This extends outward to all interactions with the various mechanisms of your organization. Digital transformation isn’t solely about the likes of modernizing your workflows, but delivering a consistent and effortless interaction of all the systems customers and employees interact with.

A Competitive Edge Through Modernization

Technology allows organizations to embrace digital transformation and remain competitive in the open market. Part of this comes down to how organizations respond to shifting trends and customer expectations. The market is always fickle, but digital processes at every level allow for a rapid and nimble shift away from the usual workflows.

Additionally, it allows for some creative thinking. Since so much of the workplace is undergoing the likes of digital transformation, it means you can come up with some truly innovative strategies to stay ahead of the competition. As you’ll see from of the companies we’ve highlighted today, this isn’t just a matter of embracing computers. Instead, this is something where whole new business models are being developed.

Companies That Stuck the Landing with Digital Transformation

The selection of companies we’re looking at today are somewhat familiar names. Many of these are organizations that have decades, if not at least a century, of older processes and status quo to climb over. That said, you can see the real power behind an organization-wide digital transformation.

It doesn’t matter if you’re a computer whiz necessarily; it is more about keeping pace with modern expectations. In some cases, these companies are going above and beyond the norm when compared to their competitors.

GameStop

Around 2019, GameStop was in a dire position. Years of online retail had led to a position where the company was essentially on its last legs. Video games are a tough market, and Gamestop stores were expensive and lacking the profits needed to keep the company afloat. Former Chewy CEO Ryan Cohen took the helm shortly after, and the transformation the business experienced was nothing short of extraordinary.

Hot talent from Amazon, Facebook, Microsoft, and others joined the fray. A full digital transformation took place, with the company effectively completely transforming its organizational culture and shifting the way it looks at talent as a whole.

GameStop has done well for itself in the aftermath of this shakeup. Barring a few misjudged missteps into the crypto space, the company has essentially removed all of its debt and optimized the way it delivers its services. While the brick-and-mortar sale of video games has largely diminished, GameStop has made sure it is well equipped to traverse the modern landscape through a smart combination of digital services and consistent delivery of goods to its customers.

Warner Bros.

Mergers and acquisitions are always a rough period to navigate. Warner Bros. has a storied history as one of the largest production companies in the world. With a film and entertainment history dating back over a century. As such, sticking the landing with digital transformation was vital. Warner Bros. has made the jump with ease since their merger with Discovery.

Profits are certainly down, but the production titan is pivoting hard to deliver the same quality entertainment products they’ve made over the last century in a modern setting. While terrestrial TV viewership is down, streaming is a fairly common sight.

To this end, Warner Bros. has refocused its efforts towards its MAX streaming service, alongside reaching out to other high-volume streaming services like Prime Video and Netflix for contracted streaming shows and movies. Profits might be down, but we’re talking a mere 2% down from last year, as opposed to a substantial overall loss.

Disney

The House of Mouse is more than just an entertainment magnate, but a juggernaut in the field of theme parks and attractions as well. Disney had a relatively smooth go of things when it came time to make the jump into digital transformation. The park experience has largely transformed, with a tight integration of visitors’ smartphones to better enhance their time. Additionally, there has been a substantial investment in the streaming landscape.

Disney owns both Disney+ and Hulu, meaning they’ve got their fingers in quite a few pies when it comes to digital goods. Additionally, they’re leveraging the value of their brand in innovative ways, pursuing exclusive apps and games that take advantage of their numerous IP.

Behind the scenes, one can only wonder at how substantial an investment Disney had to make into their current infrastructure to stand alongside the competition. Early moves in the digital arena has led to some highly successful acquisitions over the last 20 years, with Pixar, Star Wars, and Marvel being among some of the top brands on the planet today.

DHL

Try as we might, it’s impossible to divorce the realities of logistics from any sort of operation. DHL has been at the center of the logistics and supply chain game for years at this point, and 2021 gave the company a chance to jump forward. Nearly $2 billion was invested in modernizing equipment and processes alike. The result has been rather astonishing for DHL.

Of note is the improved customer experience. DHL was an early adopter of AI chatbots, which are able to quickly inform customers of the location of their packages 24 hours a day, regardless of the day of the week. This is coupled with their cutting-edge Advanced Quality Control Center. As the central junction of their operation, millions of packages are efficiently routed through the system to their respective warehouses thanks to a fascinating combination of big data analytics and predictive modeling.

LEGO

LEGO has been at the forefront of innovation for toys for decades now. However, things haven’t always been peachy for the company. 2004 saw LEGO on the verge of bankruptcy, struggling to keep the lights on. Unlike the other companies mentioned so far, LEGO struggled to land the digital transformation necessary to keep things viable in the modern era. That changed with the appointment of CEO Jorgen Vig Knudstrop.

Knudstrop tasked the company with a rapid shift in strategy. A new IT system was spun up, allowing greater access to data across all branches of the company. Further, LEGO started engaging its customers with product design. Did your kid have a great new idea for a LEGO set? The company would love to hear about it. This is more than wish fulfillment as well, since the company takes the time to gather this data for market research.

LEGO has become a media brand beyond just its toys, with numerous multimedia projects including two hit films and a popular Batman spinoff. Without the redo of digital transformation, it isn’t likely that the company would’ve gone so far over the last 21 years.

Other Useful Tools and Concepts

Looking for something else to go with your morning coffee? You might want to check out how you can better utilize remote process optimization alongside Lean Six Sigma. Remote teams are a growing reality for many organizations, but trying to navigate remote teams in a Lean Six Sigma system can be difficult.

Additionally, you might want to take a closer look at the role emotional intelligence plays in Lean Six Sigma leadership. Employee mental health is more important than ever, and learning how to navigate that leads to happier and more productive workers.

Conclusion

Digital transformation can be a difficult process. However, the lessons we can take from these companies is that it is vitally important to make sure you’re taking a comprehensive approach to it in the first place. What we can take away from these companies is that digital transformation isn’t just necessary for the modern world, but can be what helps your organization survive as the market changes.

The image featured at the top of this post is ©Golden Dayz/Shutterstock.com.