Digital Transformation – Best Buy as a Case study

Who would have ever imagined that one day, technology will be a part of human existence? Even up to the point that virtually everything we do in our daily lives have some sort of digital interference. To help you understand this article, I will like to define Digital Transformation. Digital transformation is the change associated with the application of digital technology in all aspects of human society. This transformation means that digital usage enables new types of innovation and creativity, rather than simply enhance traditional methods.

 

“Today, all businesses are technology companies powered by people; it is simply a question of degree.” These are the words of Robert Willet, the former CEO of Best Buy International (2001 – 2010). Best Buy, a leading American multinational provider of technology products and electronics opened its first mobile phone store in 2006, and they experienced tremendous market and brand growth. In 2007 Best Buy’s revenue grew by over 16%; this was attributed to the 231 new store openings which ultimately increased customer satisfaction.

 

In 2010, something happened that they did not envisage; there was an increasing trend towards online shopping and this caused Best Buy’s revenue and profits to start going down. Amazon, the e-commerce giant, said it would shut down 50 stores in the U.S. in March 29, 2012 as part of their key initiatives to manage increasing cost of operations. Within the same year, a handful of other major retailers like Walmart, Toys-R-Us had announced plans to shut down stores, leaving a few vacant shops behind. In November 2012, Best Buy put up a strong response to these digital trends; they introduced a transformational strategy called “Renew Blue” which was geared towards cost reduction and enhancement of e-commerce presence. This was very successful and thus led to the new Strategy focus four years later called “Best Buy 2020”. The purpose of the new strategy unveiled on 1st March 2018, is to help customers pursue their passions and enrich their lives with the help of technology.

 

Over the years, Best Buy has survived several turbulent and competitive business environments with strong leadership and purposeful execution of their digital transformation strategies. Technology by itself does not provide value to a business; however; Best Buy has leveraged technology to do things differently in a bid to achieve improved customer experience.

 

Using Best Buy as a case study, here are some of the key take-away:

 

  1. In our ever changing world, change is the only constant and therefore we must always have a plan on how to navigate through the changes.
  2. Global digital transformational changes are taking place every day and therefore businesses and individuals need to reappraise their strategies to remain relevant.
  3. We can also take advantage of the changing digital trends to the benefit of our lives, businesses and kingdom impact. A typical example is social media.
  4. Refusal to acknowledge or learn more about the changing technology trends will mean that our ability to influence and impact our world for good is watered down.
  5. Just as organizations review their strategies within cycles, so also individuals should review their personal plans in the light of digital transformation.
  6. For a business, an effective and rewarding plan last year may not be an effective one for tomorrow given the fact that competitors are also working harder.
  7. Technology is impacting all facets of our lives such that there is always a better way to achieve improved results. If there isn’t one now, someone is developing one, and who says that can’t be you?
  8. The successful implementation of digital transformation in organizations comes down to leadership, execution, and open progressive cultures

 

The variety of communication platforms and ever-changing digital media landscape sometimes makes it important for organizations to move their focus from traditional print media and instead integrate to online and social media channels to stay connected with target consumers. Social Media is therefore one of the very potent ways with which we can communicate our faith and share our testimonies. In order to achieve our purpose of making impact in our world, we need to have our strategies striped with digital ideas and take full advantage of these channels.

 

Written by Chidi Iwe

 

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