Digital transformation: A necessary change to survive
Implementing change is often hard and slow. Generally, the same sentiment applies to digital transformation. According to a McKinsey report, only 16% of the respondents successfully transformed the way they work and do business (2018). But when an unforeseen occurrence like COVID-19 happens, it can dramatically accelerate the change. Due to the global pandemic, people, businesses and societies have been forced to act fast and change in order to stay afloat. Many companies quickly had to rethink their operations, processes, and even products overnight. Many have been forced to digitally transform the way they work or cease to operate.
Embracing change to create value
Digital transformation is not just about keeping up with times. It’s about creating value. Embracing digital transformation takes time and money, but it can add and generate tremendous value for businesses and their customers. It can improve data collection and analysis, increase the level of transparency, improve employee skill set, bring new customer benefits such as new products and services, better experience, greater convenience, and more choices to only name a few advantages.
Domino’s Pizza is one of the most famous examples of successful digital transformation. In 2010, after the difficult times of 2008-2009, Domino’s appointed Patrick Doyle as the new CEO. Through his leadership years, Doyle focused on innovation and convenience, and successfully digitally transformed the company. For example, Domino’s was one of the first to release a pizza tracker to follow the progress of customers’ delivery. An innovative feature in the delivery business at the time. They also opened a variety of digital platforms such as Twitter, Google Home, and zero click app for consumers to order online. In 2017, 60% of its sales came from digital channels compared to 25% in 2010. Under Doyle’s watch, Domino’s Pizza stock price has risen more than 2000%.
Although challenging, the company has shown it’s possible to achieve successful digital transformation that creates value to both the business and its customers. Domino’s Pizza is a compelling example of a company in a traditional sector that used technology to reinvent itself and disrupt the industry.