Companies embark on digital transformation projects for many reasons. 68% of them seek to digitize the operating model, and close to 50% of them want to launch new products or services. While there is no proven model for success, learning from those who have already got it right helps.

Here are some digital transformation case studies. These benchmarks assuage CFO’s seeking the ROI of digital transformation before committing money. It also assures other stakeholders worrying about the impact of the transformational change. 

1. Unilever

Unilever invested in a digital database to counter the threat posed by the digital economy. The company conjured up a database in-house rather than opt for the common route of buying customer data from market-research firms. They gathered 900 million individual customer records from customer registration information, store loyalty cards, and other sources. “Digital hubs,” composed of analysts and other experts, and equipped with Artificial Intelligence tools, study consumer traits, segment traits, make predictions, and build relevant content.

Soon, the database became a source of valuable competitive advantage. It digitized the business, allowing considerable cost savings and upselling. For instance, applying the collected data to target advertisements cost just one-fifth of the normal price, for the same brand-awareness impact, when selling baby Dove in India.

Side-by-side, the company deploys Robotic Process Automation (RPA) to rejuvenate the supply chain. New product launches became faster by 50%.

2. Nike

When Nike’s sales turned sluggish, the company took recourse to digital transformation. The company focused on improving direct connect with customers, through memberships, digital marketing, and analytics. They took efforts to curate end-to-end consumer data, to connect with customers better and recommend relevant products.

At the retail end, the company opened concept stores and provided better online and app experience for customers. A partnership with Amazon rejuvenated the company’s e-commerce strategy.

The improved digital focus quickened product development cycle, improved agility, and offered greater control over the supply chain.

3. Hasbro

Toy and gamer major Hasbro undertook a major digital transformation initiative in 2012.

The company embarked on a targeted marketing campaign, with a major social media push. The focus of the campaign was to target parents, who make the purchase decisions, rather than target children. The company collected data to understand customers better and recommend relevant toys and games.

Hasbro could harness the power of digital storytelling well through social media. The brand connected to parents through a mix of nostalgic brands delivered through the latest channels.

The focus on digital marketing and data helped Hasbro weather the storm engulfing the industry, and hit $5 billion in sales for the first time in 2016.

4. Best Buy

Faced with the onslaught from Amazon, the electronics store chain Best Buy was in doldrums at the start of the previous decade. A fresh digital perspective, brought in from a new CEO, transformed the company. The company redefined its purpose from selling CDs and electronics to enriching people’s lives with technology. Digital initiatives such as a price matching system, improved delivery times, and proactive recommendations boosted sales. An innovative “Geek Squad” which fixes anything in a customer’s home for a flat annual fee was a big hit.

The company took the effort to understand customers and advise them on the best solution, instead of merely selling to them. The advice extended not only on which product to buy, but how best to use the product. 

The bedrock of such initiatives was a digital database and a strong analytic engine. The engine provided customer profiles that helped executives offer customized recommendations and help.

5. Microsoft

The Internet, coupled with the rise of web applications and software as a service (SaaS) ended Microsoft’s dominance in the consumer IT market. Worse for Microsoft, more people accessed the Internet through smartphones rather than PCs or laptops.

In 2014, Satya Nadella, the new CEO, took the challenge head-on. He reorganized the company to enable greater agility among the workforce. The new empowering culture promoted a mindset that encouraged risk-taking.

Making Microsoft Office available on the iPad set the trend for the things to come. The digital transformations strategy rested on the acceptance that the PC era was over and a new online, always-connected era had emerged. With this understanding, Microsoft set out to reposition products from “Windows-first” to “Windows-and.” The assumption of Windows being the sun around which computing experiences orbited ended. The company now took the trouble to track and serve evolving customer needs, with a focus on productivity.

The renewed strategy has led Microsoft to more partnerships. The company, known for its closed ecosystems, now has relationships even with would-be competitors such as Amazon, RedHat, and Dropbox. Continuing with its new approach to create an ecosystem, Microsoft has acquired LinkedIn Minecraft, LinkedIn, GitHub, and other popular products.

Successful companies realize that whatever works well will not last. Companies who cannot realize this and do not transform themselves when the going is good may find the sand slipping under their feet soon enough. Consider Nokia. Innovation was always central to the company that started as a paper mill in the late 1800s. The company launched the first international cellular system in the 1980s and soon became the world’s top cell phone provider. In fact, Nokia was the first to develop a touch screen, an internet-enabled phone. But somewhere down the line, Nokia forgot its own tradition of innovation and believed hardware design would keep users loyal. Instead, users fled Nokia to phones with better software, seeking improved user experiences.

Digital transformation works. The proof of the pudding is in the eating, as shown by these benchmark-worthy companies. But to get it right, companies need a clear understanding of what they seek to achieve and need to rope in experts to get it right.