HKUST Business School Magazine

Insights from real-world cases Real-world examples provide valuable insights into the principles of digital transformation. Home Depot’s $11 billion investment in improving online and in-store experiences showcases a commitment to enhancing customer engagement through digital means. By integrating digital technologies into its operations, Home Depot has been able to provide a seamless shopping experience that meets the evolving preferences of its customers. Similarly, Honeywell has demonstrated how established firms can innovate to stay relevant by digitizing internal processes and developing new digital offerings. This transformation has allowed Honeywell to streamline operations and enhance its value proposition to customers, ultimately driving growth in a competitive market. Microsoft’s transition from software licensing to cloud services under CEO Satya NADELLA illustrates another successful pivot in response to digital trends. By embracing cloud computing, Microsoft has positioned itself as a leader in the technology industry, offering scalable solutions that meet the needs of modern businesses. Conversely, Kodak serves as a cautionary tale about the consequences of organizational inertia. Despite inventing the first digital camera, Kodak failed to adapt to the digital photography revolution, ultimately leading to its decline. This example underscores the importance of agility and foresight in navigating digital transformation. References 1 Mithas, S., Chen, Z. L., Saldanha, T. J., & De Oliveira Silveira, A. (2022). How will artificial intelligence and Industry 4.0 emerging technologies transform operations management?. Production and Operations Management, 31(12), 4475-4487. 2 McAffee, A., Ferraris, P., Bonnet, D., Calméjane, C., & Westerman, G. (2011). Digital transformation: A roadmap for billion-Dollar organizations. MIT Sloan Management Review. 3 Porter, M. E., & Rivkin, J. W. (2000). Industry Transformation. Harvard Business Publishing. 4 Saldanha, T. J., Lee, D., & Mithas, S. (2020). Aligning information technology and business: The differential effects of alignment during investment planning, delivery, and change. Information Systems Research, 31(4), 1260-1281. 5 Catlin, T., Lorenz, J. T., Sternfels, B., & Willmott, P. (2017). A roadmap for a digital transformation. McKinsey & Company. 6 Day, G. S., & Schoemaker, P. J. (2000). Avoiding the pitfalls of emerging technologies. California Management Review, 42(2), 8-33. In conclusion, digital transformation offers significant opportunities and challenges for organizations. As the business landscape rapidly evolves due to technological advancements, organizations must adopt a proactive approach to navigate this complex environment. Successful digital transformation goes beyond implementing new technologies, it requires a fundamental shift in how organizations think, operate, and engage with their stakeholders. Organizations must prioritize a culture of continuous learning and innovation, where experimentation is encouraged and failures are seen as learning opportunities. By embracing agility and adaptability, companies can remain resilient in the face of change, allowing them to pivot quickly in response to emerging trends and market demands. Furthermore, collaboration across departments and with external partners is essential to harness the full potential of digital transformation. By breaking down silos and fostering cross-functional teams, organizations can leverage diverse perspectives and expertise to drive innovation and create comprehensive solutions that address complex challenges. As businesses embark on their digital transformation journeys, they should also be mindful of the ethical implications of technology. Ensuring that digital initiatives align with sustainable practices and contribute positively to society is crucial for building trust with customers and stakeholders. Ultimately, the path to successful digital transformation is unique for each organization, shaped by its specific context, goals, and challenges. Organizations that approach this journey with a strategic mindset, a commitment to innovation, and a focus on creating value for customers will not only thrive in the digital age but also shape the future of their industries. Embracing digital transformation is not merely an option; it is essential for organizational survival and sustained success in an increasingly digital world. This article is adapted from and draws on the article “Driving Digital Transformation” by Dongwon Lee, Barney Tan, and Sunil Mithas (2023) in Digital Strategies and Organizational Transformation (pp. 27-49). Biz@HKUST 37