Technology Based Business Transformation Assignment - 1

Success Stories of Digital Transformation of Companies

1. IKEA
IKEA is a worldwide business with Dutch headquarters that was founded in Sweden
and provides ready-to-assemble furniture, kitchen appliances, and home accessories in
addition to other products and services for the home. IKEA was founded in 1943 by a
17-year-old Ingvar Kamprad in Sweden, and has held the title of largest furniture
retailer in the world since 2008.

● Which Technology is used?

IKEA acquired AI imaging startup Geomagical Labs in order to enable buyers to
finalise their home plans while the area is under lockdown, and then orders furniture
that is delivered without physical contact. The technique uses artificial intelligence
(AI) to construct a 3D virtual representation of a room from an analysis of a sequence
of panoramic images taken with your smartphone. Along with creating 3D models of
the existing furniture, the technology also allows for the individual moving or
replacement of that furniture with 3D models of goods from the IKEA catalogue.
IKEA has also released a new augmented reality (AR) app that uses the ARKit
technology in Apple iOS 11 to let consumers test IKEA products in real time. The
free iPhone and iPad software, dubbed IKEA Place, offers 3D objects that are
accurately produced and true to size.
● Before and After Story
In three years, they have roughly tripled the amount of e-commerce. Their
establishments have undergone changes to serve as fulfilment centres. Changes have
been made to the store's floor designs, supply processes, and the flow of items in
order for that to be successful. Traditional stores are not open 24 hours a day,
however ecommerce is, so businesses have had to learn how to run at two speeds
while occupying the same area. In order to determine where the products are sourced
from, algorithms are being used. Goods can be delivered from the stores or from
various distribution centres. Data and analytics are being quickly expanded, and they
are being integrated into decision-making in many ways.
● What are the Strategies they used?
As the business realised that digital needed to be a part of everything they did, the
strategy's breadth grew dramatically over time. Their first priority was to redesign all
consumer interactions, particularly online meetings with updated navigation and
search capabilities. They achieved significant growth for e-commerce, which
increased from 7% of revenue to 31% in 3 years.
 It was necessary to modernise inventory management, logistics, fulfilment, and the
supply chain as a whole using data, which introduced new working and operating
methods. For instance, stores transformed into fulfilment facilities. They are also
integrating fresh talent and individuals with more dexterity.
● Challenges which they faced
The term "digital transformation" refers to an entirely new, innovative way of
carrying out a task that is essential to your business, rather than simply referring to the
adoption of new software, technologies, and processes that are more effective and
automated than conventional business practices and processes. IKEA had to bring its
famous catalogue to an end, symbolising its shift to digital. They had to transform
their business model. Some shops were, some were transformed into order processing
centres, they had to train their staff for this new journey. Overall it was a great effort.
● Why are businesses moving towards a digital transformation?
The furniture behemoth was motivated by the COVID 19 health problem. The Group,
like many other companies, had to close its stores during lockdowns, which made it
more determined than ever to increase its online presence in order to connect with
customers every day through digitised services.

2. Budweiser
Budweiser is a member of the Anheuser-Busch transnational company of Bev.
Anheuser-Busch produces the American-style Budweiser, a light-colored beverage
that is brewed all over the world in different breweries. One of the most popular
breweries in the US and India, it was established in 1876 by Carl Conrad & Co. from
St. Louis, Missouri. More than 70 nations sell it.

● Which Technology is used?

End-to-end services and reporting to a firm expert in quality management are
provided by TecQubes (QA). Both fresh and modern technologies are well-versed in
their sector. Because of the shortened test periods and lower capital costs, it is now
simpler for businesses to adhere to the highest management and product transition
training standards. To enable Budweiser to adapt to emerging technological
advancements and market trends, they should anticipate these changes and restructure
their business model as a managed service provider. They provide measurable
benefits that increase sustainability, cost reduction, creativity, and market
responsiveness. Their team has assisted Budweiser in putting new concepts and
strategies into practise to assist customers in meeting the different needs of the
expanding business.
● Before and After Story
 Sales of Budweiser's three major brands, Budweiser, Stella Artois, and Beck's,
increased by 4.7 percent during the same time period, while the company's overall
sales volumes increased by 7.3 percent in the first quarter.
● What are the Strategies they used?
With the objective of enhancing everything from how it manufactures beer to how it
manages its relationships with consumers and markets its products to the general
public, the company has engaged in a variety of data-driven initiatives. "E-commerce
fronts represent another priority battleground for us, because its growth can
effectively allow us to more closely engage consumers and respond to new
consumption trends," said Jan Craps, CEO of Budweiser APAC.
● Challenges which they faced
The largest challenge to the global beer industry in the past 50 years is now.
Consumer growth is increasing at the same time that customer demand is declining,
goods are more readily available, suppliers or consumers have ongoing needs. In
addition to posing short-term difficulties for beer producers, the development of
powerful technology also heralds the birth of the sector as a whole. Small lots, quick
tooling, and manual renovation procedures in storage merchandising units are not
optimal at manufacturing facilities that produce large quantities of inexpensive goods.
Last but not least, the logistical facilities of heritage breweries must meet rising
demands due to the ever-divided nature of commerce and the burgeoning, expansive
development of grocery stores in urban areas. In order to guarantee that the best
commodity is in the right place at the right time, distributors are increasingly
searching for vendors who will support them more explicitly.
● Why are businesses moving towards a digital transformation?
France Roy, global vice president of Anheuser-Busch InBev, parent company of
Budweiser said "We had incredible growth in the direct-to-consumer space over the
past couple of years. With consumer behavior changing due to the pandemic,
consumers are ordering more online. We expect this trend to continue in the future
and are placing bets on our businesses that will grow with this trend. Having a digital
commerce strategy has been key to our growth plans. We are focusing on expanding
our courier businesses internationally using VTEX as our digital commerce platform."

3. Under Armour
A manufacturer of footwear, sportswear, and casual clothing, Under Armour Inc. is
based in the United States. Baltimore, Maryland serves as the location of Under
Armour's global headquarters.

● Which Technology is used?

 ArmourBox is a fantastic example of technology application. You visit the company's
website and provide information about your training regimen, preferred shoe brand,
and fitness objectives. They offer you new shoes or clothing on a subscription basis
using smart analytics. Customers who subscribe spend more money with them
throughout the course of their lives and get better value.
In order to assist its clients in achieving their fitness goals, Under Armour combines
their physical and digital products. They recently released their fourth-generation
linked shoe, the HOVR Infinite, which connects to the UA MapMyRun app and is
based on their HOVR platform, developed in collaboration with Dow Chemical.
● Before and After Story
The sales of the company increased even during the pandemic by around three folds.
They were able to provide customisation to every customer because of the app
developed by them. This increased the customer loyalty and satisfaction.
● What are the Strategies they used?
After the pandemic broke out, showrooms were shut down, samples couldn't be made
quickly enough, and in-person sales meetings were discontinued. Every team member
up to CEO Patrik Frisk received access to a new digital learning and training platform
developed by Under Armour that defined how to proceed with sales to all accounts in
this new environment. Digital product samples gained even more significance at this
time. From a sustainability perspective, having fewer physical prototypes meant less
wasteful material usage and cheaper sample shipping.
● Challenges which they faced
Hantske advised CEOs of any organisation experiencing a digital transformation, like
Under Armour, to periodically remind themselves of the benefits of making these
changes in the long run, whether it be to increase efficiency or enhance customer
satisfaction. Because they are not straightforward, although being significant, these
changes.
A designer's day-to-day activities could be impacted, for instance, by the transition
from 2D to 3D samples.
Robert Hantske, Director of Under Armour, advised thinking carefully about the
requests you make of others. "You're going to have to make a pretty compelling case
because you're literally asking an artist to change their mindset. You will need to keep
saying that case out loud.
● Why are business moving towards a digital transformation?
The retail businesses are moving towards digitalization to provide their customers
with services at the comfort of their home and at anytime. The main aim of this is to
enhance customer experience and provide maximum satisfaction.

Sonali Prasad
Roll no. - 021230022145
WB 2022