The term “digital transformation,” also known as “DX,” refers to the integration of digital technology across a company’s entire range of functions. Technology is constantly changing, constantly improving, and we are finding new uses for it all the time. In order to remain current and competitive in this day and age, businesses in every sector are finding innovative ways to use technologies like mobile applications, machine learning, augmented reality, and AI to connect with their customers and increase profits.

To see just how effective this strategy can be, read on for some of the most successful digital business transformations that have taken place across Europe and the US below.

5 examples of successful digital business transformations

1. IKEA

With the advent of smart technology like digital assistants, even homes are undergoing a digital transformation. In addition to their staple flatpack furniture and home accessories, IKEA is now retailing speakers and smart plugs, allowing them to compete with digital giants like Amazon, Apple, and Google.

If you are looking for a sofa, bed, or desk, however, they’ve still got you covered. In fact, thanks to the IKEA Place app, shopping is easier than ever. Using Augmented Reality (AR), this app allows you to see what furniture looks like in your home before ordering it. Since its launch in 2017, the app has been downloaded more than two million times and has totally revolutionized the customer experience.

2. Audi

Audi is another company using AR to digitize showroom viewings. In 2012, they launched the first of their Audi City showrooms—smaller venues located in city centers, where it’s not possible to exhibit a full range of vehicles. In addition to the four cars physically on display, you can view the entire catalog of Audi models on interactive screens. Choose a model and view it full size in front of you, and use a tablet to have a closer look inside the car.

This technology has had a huge impact on Audi’s profits over the last nine years, and in fact, sales in Audi City showrooms are up 60% vs. traditional ones.

3. Volkswagen

Volkswagen has committed to investing $4 billion in the digital transformation of their business by 2025. As a leading German automaker, of course, they have to keep up! However, their approach to DX is very different from Audi’s. Instead of using technology to sell their vehicles, they employ it to enhance their latest models. For example, starting in 2020, five million new Volkswagen models will be connected to the Internet of Things, which will allow them to exchange data with other devices over the internet using sensors and other kinds of technology. One possibility they are reportedly interested in exploring is a built-in parking app, which will show drivers nearby lots and allow them to pay for parking using their car.

Furthermore, the company has also launched a car-sharing service, WeShare, to rival rideshare companies like Uber and Lyft. This will allow them to target a new demographic of people who need to get around but don’t own a car.

From all of their new digital initiatives, Volkswagen is projected to make around $1.1 billion profit by 2025.

4. LEGO

They may be approaching their 90th anniversary next year, but LEGO produces toys designed to foster innovation, so there was no way they were going to be left behind in the digital age. There are LEGO movies and video games, and now, with the launch of initiatives like LEGO Boost, they are teaching children to build code as well as multicolored brick houses.

Plus, this is a company that really knows how to appeal to its customer base. Their online community allows fans to request new sets and vote on the submissions they like best. If a suggestion for a set reaches 10,000 votes, LEGO execs review it, and there’s a chance it could be produced and sold worldwide. In this way, they use technology to tap into their customers’ creativity and stay in touch with their audience.

5. Nike 

To keep up to speed in an ever-changing marketplace, Nike started using data analytics to overhaul its e-commerce and digital marketing strategies. By gathering more consumer data—and using it more effectively—they were able to lead stronger campaigns and open concept stores, which saw their share price go up by almost 70% within two years.

Currently, they are focusing their digital transformation efforts on mobile devices. For instance, they have created an app that can help customers choose the right type of shoe for them based on a leg scan. Users simply scan their feet using the application and, depending on the data it retrieves, are recommended the best products in Nike’s catalog for their individual needs.

Are you interested in a career in digital business?

Here at EU Business School, we run two postgraduate programs specifically designed to prepare you for a management career in this sector.

Masters in Digital Business

The Master’s in Digital Business is a comprehensive program designed to teach students everything they need to know to excel in the digital era. Subjects covered include law, strategy, finance, business models, and change management. Plus, as part of the course, students will also visit leading companies like those listed above to see how companies manage successful digital business transformations in a real-world corporate setting.

What you need to know before signing up for a Masters in Digital Business:

  • Duration: 3 terms/1 year
  • Number of credits: 60 ECTS
  • Start dates: October, January, March
  • Language: English
  • Location: Barcelona

MBA in Digital Business

This is a one-year, full-time course designed to prepare students for a management career within the digital business sector. In addition to learning fundamental business skills such as accounting, management, marketing, and human resource management, they will also be taught how to design and craft a business according to new digital models and strategies. The modules in this program are supplemented by lectures from visiting speakers, who are all global leaders in digital business.

What you need to know before signing up for an MBA in Digital Business:

  • Duration: 3 terms/1 year (full time), or six terms/2 years (part-time)
  • Number of credits: 90 ECTS
  • Start dates: October, January, March
  • Language: English
  • Location: Barcelona

To find out more, please visit our website and check out the full course profiles linked above.

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