JSPD202

Prof. Manali C Class 6 31st July 2023

Introduction To
Digital
Business
DOMAINS OF DIGITAL
TRANSFORMATION

Today’s
agenda
CDO & CIO

 A Chief Information Officer’s traditional role has been to use technology to optimize
processes, reduce risks and better run the existing business.

 But the emerging role of the Chief Digital Officer is much more strategic

 The role of Chief Digital Officer is much more strategic, focused on using technology to
reimagine and reinvent the core business itself

 There are five domains of digital transformation that organization leaders must master
in order to successfully guide the future growth of their firms
Role of CDO in digital transformation
DOMAINS OF
DIGITAL
TRANSFORMATIO
N
Customer Domain

 Digital technologies change how we connect and create

value with our customers.
 The relationship becomes much more synergistic
 The communications and reviews provided by customers
position them as bigger influencers than advertisements or
celebrities
 The dynamic participation of customers has become a
critical driver of business success.
Company specific examples

 Amazon: Amazon is a prime example of a company that has excelled in customer domain digital
transformation. They have transformed the retail industry by offering a seamless online shopping
experience with one-click ordering, personalized recommendations based on user behavior
 Starbucks: Starbucks has leveraged digital technology to enhance its customer experience. Their
mobile app allows customers to order and pay ahead of time, earn rewards, and receive personalized
offers and promotions. The company has also invested in digital menu boards and in-store Wi-Fi,
creating a seamless and interactive experience for customers.
 Nike: Nike has embraced digital transformation to enhance customer engagement and loyalty.
Through its NikePlus app and ecosystem, the company offers personalized workout plans, tracks
fitness goals, and provides exclusive access to limited-edition products and events. Nike's digital
initiatives have strengthened their relationship with customers and increased brand loyalty
Competition

 The companies are competing not just with rival

companies from within their own industries, but
also with companies from outside industries that
are stealing customers away with their new digital
offerings.
Competition

 We may find ourselves competing fiercely with a

long-standing rival in one area while
simultaneously leveraging their capabilities by
cooperating in another sector of our business.
Competition

Increasingly, our competitive assets may no longer

reside within our own organization; rather, they may
be contained in a network of partners that come
together to form loose business relationships.
Dynamics of Competition in Digital Age

 Enterprises really need to challenge their strategic assumptions of competition;

 Move from zero-sum to win-win,
 Understand what is being competed for and
 Be thoroughly prepared for blindsides.
Company specific examples

 Example from Flipkart:

 Myntra and PhonePe: Flipkart acquired Myntra, a fashion-focused e-

commerce platform, and PhonePe, a mobile payments app, to diversify its
offerings and strengthen its position in the market.
 Big billion day sale: To compete the market share of online customers
with Amazon
Example of Walmart & Nike

 Walmart introduced Buy-Online-Picup-In-Store facility and same day delivery option to

stay competitive with Amazon grocery delivery and other such businesses
 Nike developed its Digital Business Strategy, which focused on leveraging technology
and data to improve customer experiences and drive growth.
 One of the key initiatives was the Nike+ app, which offered personalized product
recommendations, fitness tracking, and exclusive access to limited-edition products. Nike
also invested in its e-commerce platform to enable seamless online shopping experiences.
Furthermore, they incorporated IoT-enabled sensors in their products, such as the Nike+
Training Shoes and Nike+ Training Kits, to capture data on users' performance and
training habits.
Point to note…….

 One same digital business strategy can have positive impact on multiple digital
transformation domain
 Flipkart big billion day sale
 Nike’s Nike+ app
 Data based digital transformation

Leveraging on data to optimize the business processes at multiple fronts

Starbucks' Data-Driven Digital Transformation:

Mobile Order and Pay: Starbucks introduced its Mobile Order and Pay feature, allowing customers to
place and pay for their orders through the Starbucks mobile app. By collecting data on customer
preferences, order history, and location-based data, Starbucks can offer personalized recommendations,
promotions, and rewards to app users.

Customer Loyalty Program: Starbucks' customer loyalty program, Starbucks Rewards, is another data-
driven initiative

Store Location Optimization: Data and analytics play a crucial role in Starbucks' expansion and store
location decisions. The company uses data to identify high-traffic areas, demographics, and customer
behavior to strategically open new stores.
Data based digital transformation

Predictive Analytics for Inventory Management: Starbucks utilizes predictive analytics to optimize inventory
management. By analyzing historical sales data, seasonal trends, and weather patterns, Starbucks can accurately forecast
demand for different products at specific locations.
Digital Marketing and Personalization: Starbucks uses data from various sources, such as social media, mobile app
interactions, and customer surveys, to develop targeted marketing campaigns and promotions.
IoT-enabled Coffee Machines: Starbucks has also integrated Internet of Things (IoT) technology into its coffee
machines. These smart machines collect data on brewing patterns, maintenance needs, and customer usage. This data-
driven approach ensures consistent product quality, allows proactive maintenance, and helps optimize the use of
ingredients and supplies.
Some recent developments