Digital Transformation Stories – IBM Blog

Digital transformation is a radically digital-first approach to how you run your business. The digital world is rapidly evolving with new products and digital technologies that require active digital transformation initiatives. The main goal of digital transformation is to use new digital technologies and improve business processes in all aspects of the business. Above all, AI, automation, and hybrid cloud can help organizations drive intelligent workflows, streamline supply chain management, and accelerate decision-making.

Why Digital Transformation?

Unlike typical business transformations, implementing digital transformation is not a one-time solution. Rather, it is the beginning of a new foundation for companies that want to keep up with new technologies and evolve with the constantly changing external world.

Customer expectations and market conditions can change in an instant. Your business must be prepared to handle these events. Staying current with the digital age is one of the benefits of digital transformation. By updating your existing systems, your business will embrace digital transformation and new business models.

Digital transformation can be a risky move, but when done well, it can streamline your business on the path to a better, smarter future. A recent analysis by the IBM Institute for Business Value asked company executives: “(…) How to use data to generate performance benchmarks and understand how the application of technologies such as cloud, AI and generative AI can substantially improve performance in some areas of the business that generate revenue. .” What they found was that 9 out of 10 organizations interviewed “(…) have no way of expressing how they deliver their most important products and services from start to finish, and lack the performance data needed to create a baseline for improvement.” I don’t even have it. That performance. (You may do so if pushed, but we are not asking you to do so.)”

An example of a company that has undergone a major transformation in retail is Amazon, which has changed the way consumers shop for everyday items. There are several examples or case studies of successful digital transformations in various industries. These real-world examples provide a glimpse into the digital transformation process for both stakeholders and business leaders.

Find more reports from the IBM Institute for Business Value

digital innovation technology

Before looking at digital transformation examples, it is important to understand the different digital technologies available. Businesses are increasingly relying on data analytics and automation to drive profitability and customer satisfaction. Depending on your business needs, there are a variety of digital technologies that can play a role in your organization’s digital transformation strategy. In particular, there are several digital tools that show they will continue to evolve and become fixtures for future digital innovations.

A.I – Artificial intelligence (AI) is a digital technology that uses computers and machines to mimic the capabilities of the human mind. AI learns from what it sees around it, and when combined with automation, it can infuse intelligence and real-time decisions into any workflow. AI technology is driving innovation in smart products and a greater focus on customers and user experiences. An example is machine learning, which allows computers or machines to imitate the human mind. Another is augmented reality technology that uses algorithms to imitate digital information and understand the physical environment.

hybrid cloud – Hybrid cloud environment creates a single, optimal cloud for public cloud, private cloud, and on-premises infrastructure. Bring your organization’s on-premises data into a private cloud infrastructure and then connect to a public cloud environment hosted by a public cloud provider. Examples include AWS®, Google Cloud Services®, IBM Cloud®, and Microsoft Azure®.

Cloud computing infrastructure bridges the gap in cloud resources, allowing organizations to run all their workloads more easily and scalably. This operating model can increase operational efficiency and organize big data more effectively. Building your organization for successful digital transformation With hybrid cloud, your organization isn’t tied to a single platform.

blockchain – Blockchain is a digitally distributed public ledger or record of electronic transactions. The main benefit of blockchain is that it provides full transaction transparency for employees who need it and security for other employees who do not need access. This type of trust is an example of how blockchain can foster stronger communities internally and externally.

Other technologies include:

• Internet of Things (IoT)
• microservice
• digitalization

Examples of Digital Transformation

Example of a modernized tool: Frito-Lay

Snack food giant Frito-Lay turned to Salesforce to optimize productivity and improve service to retailers across its systems. Frito-Lay’s digital transformation efforts involved user-focused experts from IBM® Consulting and the IBM Salesforce practice. Together, they worked to expand Frito-Lay’s e-commerce strategy and create more efficient workflows for frontline employees.

Through extensive user research conducted by a team of IBM Garage™ and IBM iX® experts, the Frito-Lay and IBM teams identified two solutions built on the Salesforce platform. These two solutions create modernized tools for both retailers and employees. ‘Snacks to You’ is an advanced e-commerce solution that helps small businesses simplify the ordering and delivery process. ‘Sales Hub’, powered by Salesforce Service Cloud, is the second solution designed by the team and is working to simplify logistics at the backend. These solutions focused on optimization for the user and required a rethinking of how processes were done in the past.

Transformed technology infrastructure example: Water Corporation

Water Corporation, a state-owned company based in Western Australia, maintains pipelines that provide water, wastewater and drainage services to a region of approximately 2.6 million km. The organization relies on SAP architecture to run critical resources and has recognized that the on-premises servers supporting its SAP infrastructure are outdated. Instead of purchasing more hardware, organizations have shifted to a cloud-based strategy.

Water Corporation chose IBM Consulting to plan this extensive migration. They chose Amazon Web Services (AWS) to power their critical SAP systems and IBM watsonx™ Code Assistant technology to generate code recommendations for automated functions to support the migration and maintenance of their SAP environment.

IBM Consulting and Water Corporation estimated that new automation strategies could save approximately 1,500 manual hours associated with infrastructure support. It also reduces carbon emissions by approximately 150 tons per year. The transition to the new SAP environment was a digital transformation that required tremendous coordination between Water Corporation and its partners, but ultimately yielded valuable results that will prepare it for a successful digital future.

Reimagined Customer Experience: Camping World

The COVID-19 pandemic has brought unprecedented numbers of customers to Camping World, a leading retailer of recreational vehicles (RVs), exposing several challenges to its existing infrastructure. As the company grew, relying on contact centers and customer service, it discovered gaps in agent management and response times.

Camping World turned to IBM® Consulting to address these concerns. The answer was a human-centric solution that allowed them to scale their operations. The retailer decided to use cognitive AI tools developed by IBM to modernize its Camping World call center to deliver a better customer journey from start to finish. The solution is powered by IBM watsonx™ Assistant and integrated with an interactive cloud platform called LivePerson. By expanding its question and call features, Camping World is better suited to customer service, sending simple questions to a virtual agent named Arvee rather than a real agent. Arvee gives every customer the answers they need while having live agents available for more complex questions.

Example of an intelligent data integration platform: State Bank of India

State Bank of India (SBI) saw its customer base growing wealth and found itself looking for new opportunities. SBI is India’s largest public sector bank and the financial backbone of the country. It was therefore important for the institution to stay ahead of the curve and move towards a digital future.

To create a mobile financial marketplace, the bank used the IBM Garage methodology. Bank representatives worked closely with IBM Garage designers, architects, and analysts to collaborate and analyze metrics across all areas of the project. The bank’s vision was to be a one-stop shop that addressed all the needs of its customers in the form of a mobile app. They called it ‘YONO’ or ‘You Only Need One’. IBM worked with SBI to architect workloads, support solutions, and build security systems to further enhance customer experiences.

Digital transformation and IBM

Digital transformation requires investment and ultimately changes the way an organization does business, but when done right, it has many benefits. Organizations that succeed in digital transformation can maintain a competitive advantage, improve relationships with employees and customers, and be better prepared for what lies ahead.

New technologies and social forces are creating new customer experiences that are changing expectations and needs and disrupting business models. IBM Consulting Professional Services for Business helps organizations navigate an increasingly dynamic, complex and competitive world. We help you align digital transformation with your business strategy to gain competitive advantage and a clear focus on business impact.

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