Digital transformation is a key part of running a successful business. With that said, some companies have stood out more than others when you look at the race to embrace innovative technologies.
Adobe and Product Transformation
The majority of Adobe’s revenue comes from Photoshop. The recession hit B2B customers the hardest, and during this time, companies didn’t feel the need to invest in newer versions of the product range. The company knew the future lay within the cloud, and as a result of this, they shifted to a subscription-based model, over offering the option for a one-time purchase. They doubled down on the quality of their offerings and completely reinvented their business. Instead of a one-time fee, Adobe now had the chance to generate repeat business, with software available for both desktop and mobile users.
Other companies have adopted a similar route with their offerings, too, by transforming one-time purchases into an opportunity for repeat business. Take online scratch cards at Paddy Power for example. Scratch cards were traditionally bought at local corner shops, with a one-time win opportunity for users. By moving them online, it’s become possible to upgrade the user experience while expanding the quality of the product itself. People also have the chance to re-play scratch cards digitally, with new game variants that include Cash Pong and Cash Squares. Movements like this just go to show that digital transformation as a whole is often the best way to expand offerings while increasing the user experience. It is also the best way to scale offerings, making them more accessible to the right target audience.
Caterpillar with Construction Equipment
Caterpillar is a leading manufacturer of construction and mining equipment. Famous for their trucks, dozers, and loaders, they had a fair market share. With that said, they have also started to solidify themselves as a hardware and software company. They are leading the charge with AI, and they are also taking steps to further the value of their machinery. Caterpillar know that the machinery they produce has a life cycle and that a good way to enhance customer loyalty would be to predict maintenance. That is why the company invested in AI and IoT sensors, which could even be placed on competitor equipment.
By expanding the sensors beyond their machinery and by allowing them to be placed on that of their competitors, they not only solidified themselves as being a leader in the field, they also made the market less lucrative for third-party sensors. This was a bold move that paid off, and now Caterpillar is known for not just being a manufacturer of machinery, but also a leader in AI and software.
So as you can see, even though a lot of companies have undergone digital transformation, some stand out more than others for being bold and taking huge risks. With that said, by maintaining the focus on the end user, they have been able to drastically turn things around and become leaders in their respective markets. Adobe and Caterpillar are just two examples here and as time goes on, there’s no doubt that new companies will take risks to claim the top spot in the leader of the race to digital transformation.
