Creating Value Through Digital Transformation

If ever there was a time for companies to truly commit to digital transformation, this is it. Surviving the most challenging economic conditions since the Great Depression, and thriving once the pandemic eases, requires flexible and imaginative thinking and the ability to manage the innovation process.

It may be tempting during this pandemic to pull back the reins on innovation or hold off on product development, but that may not be the best idea. Times of uncertainty are also times of opportunity. No one knows when the pandemic will end, but it does seem clear that the pace of digital transformation has only accelerated. Whether it is upgrading internal operations, launching an e-commerce strategy, developing a new product or reimagining existing products with new technology, this is an ideal time to move forward. 

Innovation Is Key To Growth

For all the talk about innovation, it remains difficult for many companies. A recent study by McKinsey & Company found that 84% of executives agreed innovation was important for their growth, but only 6% were satisfied with their company’s performance. Some companies confuse innovation with simply creating something new, and often discover that their new product or service didn’t create enough additional value for their customers. Others struggle to navigate the process and good ideas never make it to the market at all.

What does work? Research from Deloitte has found that while most attempts at transformation stumble, particularly digital transformation, those that do succeed have several things in common. The top drivers of success were having leaders who articulated a clear change story for their teams and who used a broad range of digital tools, including cloud-based, artificial intelligence (AI), data architecture, IoT, and advanced machine learning.

Big Thinking And Smart Technology

With brick-and-mortar stores temporary closed due to the pandemic, businesses are having to make major shifts in how they conduct business. The change in consumer behavior coupled with the integration of digital technology into all areas of a business is changing how companies operate. 

Bed Bath and Beyond saw digital net sales growth of more than 90% in the month of April and is planning on expanding its efforts in omni-inventory management, digital marketing and personalization. 

“Our supply chain is moving quickly to support our digital business in real time, rerouting products, and the chain to distribution center (DC), and regional fulfillment stores. Our technology team is like a 24-hour group to continuously refine the order allocation logic between the fulfillment stores and DCs,” said Mark Tritton, President and CEO of the company. “If there is a silver lining, I would say that given the monumental changes we've made to our business over the past four weeks, our ability to act decisively, partner up and move with speed and agility has been greatly enhanced.”

To help turn a promising idea into a successful outcome, innovation management software is essential. 

Planbox, a Montreal-based company, which recently acquired a network of expert problem-solvers called IdeaConnection, has built software that brings the entire innovation ecosystem into a single platform so teams can effectively collaborate from anywhere.

The cloud-based agile innovation management software uses data-mining AI to surface new insights, and includes collaborative tools to develop ideas and engage a broad network of employees, partners, customers, startups and experts. It was used recently by Hollister Incorporated, a healthcare company, to enable manufacturing and clinical experts to collaborate and identify an opportunity to supply a nearby company with material to create N95 masks. 

“The complexities of innovation aren’t easy for companies to handle without the right tools, so we gathered everything they need to manage the innovation process in one technologically advanced package,” said Ludwig Melik, Co-founder and CEO of Planbox.

AI’s Role In Adding Customer Value 

Whether it’s Sephora’s ColorIQ scanning customers’ skin to determine the best foundation and concealer matches, or Domino’s Pizza giving customers to-the-minute status updates on their pizza creation and delivery, AI is adding value and creating efficiencies for consumers in their everyday lives whether they realize it or not. 

Advanced technology has made it possible to create customer value through digital transformations of an existing product. That is the case with CAR.O.L.’s technologically advanced exercise bikes. The AI-powered interactive exercise bike is a busy person’s dream – it delivers a truly customized, optimized workout in less than nine minutes.

The London company, whose name is derived from cardiovascular optimization logic, developed self-learning algorithms that optimize workouts through personalization. A CAR.O.L. bike continually adjusts its resistance based on actual biology and real-time performance, not a rider’s best guess, across biometric markers including fatigue, heart rate and power production. 

Founder Ratna Singh says its workouts are based on a version of HIIT called “reduced-exertion high-intensity training” that encourages intense, shorter exercise bursts. Riders can workout for shorter periods of time at higher intensity to get the benefits of a longer cardio workout. The team at CAR.O.L. looked at what riders most want – a convenient but highly effective workout – and used advanced tools to create it. Machine learning makes it possible to create an experience that is customized to each rider to get the most optimal results in the shortest amount of time.