It’s easy to talk in the abstract about the benefits of a digital transformation – but are there any hard examples to point to of non-tech companies embracing Industry 4.0 strategies and winning? Absolutely! There are plenty of brands that experienced business challenges, possibly even on the verge of collapse, in the early part of the decade, but are now riding high on a new wave.
These are just a few of the most impressive examples of how a digital transformation really can take a faltering business in a whole new direction.
Best Buy Beats The Odds
If you had asked someone in 2012 or 2013 about the chances of electronics superstore Best Buy surviving to the end of the decade, you probably would have heard laughter. Even many within Best Buy itself doubted they could overcome Amazon. Yet, against nearly every prediction, they successfully turned things around.
In particular, they pivoted to a more services-based approach. They positioned themselves as technology advisers and problem-solvers for the mainstream public. Their “Geek Squad” tech support group expanded from being in-store repair people to a great example of SaaS in the private realm: for $200/yr, Best Buy will fix any piece of tech in your home, even tech from other companies.
Combined with a variety of other services, an Amazon price-matching scheme, and a commitment to becoming a better corporate citizen, and Best Buy prospered. In 2012, their stock price was $23/share. Today, it’s over $75.
Hasbro Becomes A Transformer
Top-tier toy company Hasbro was never in as much danger as Best Buy, but at the start of the decade, its sales were definitely faltering. Given that they owned a wide variety of highly popular product lines and IP, their problem was largely one of marketing. So they embraced a digital makeover focused on completely reinventing their outreach.
Hasbro embraced all-digital marketing and, in particular, put an uncommon focus on marketing themselves to parents, rather than children. Kids were already sold on their toys; they needed to target the actual decision-makers instead. Through an embrace of omnichannel marketing strategies and a strong social media push, they recently hit $5 billion in yearly sales, while tripling their stock price from $36 to $109.
Hasbro also demonstrates the power of diversification: while their marketing campaigns were a huge success, one also cannot discount the importance of their highly popular and lucrative Transformers movie series, as well as other successful spin offs such as the GI Joe and Battleship films.
Home Depot Breaks Speed Records
It’s easy to get the impression that digital transformation takes years, even more, to achieve – and that can be the case. On the other hand, there’s Home Depot, who went all-in on digital processes just two years ago and are already seeing huge returns.
Hiring more than a thousand networking pros, they re-invented themselves with an eye towards blending in-person and online purchasing experiences. They recognized that many of their customers were doing their shopping and research online, only going to the store for physical pickup, and streamlined this process. In addition, they embraced deep data analytics, utilizing trend predictions to make highly-accurate stocking choices that reduced overhead and waste.
The end result? In just that two year span, their stocks have gone from $135 to $215 – and with no signs of slowing down.
FUSE Enables Digital Transformation
FUSE enables the quick and easy creation of digital ecosystems, able to be freely accessed by everyone associated with your product: your own workforce, sales partners, tech partners, trainers, even customers. Combined with a range of tools to enable data collection and creative collaboration, FUSE creates a path towards digital transformation.