What do Nike, Microsoft and billion-dollar toy company Hasbro all have in common? There has been steep rise in their stock prices over the last few years.
In 5 years, Microsoft’s stock price rose by 258%.
In 7 years, Hasbro’s stock price grew by 203%.
And in 2 years, Nike’s stock price went up by 69%.
What has been happening in each of these mega-companies during those years? Digital transformations have sped up how their businesses operate. Digital transformation – is a phrase that has been thrown around so much that its meaning has been utterly diluted, to the extent that people aren’t even sure what it means.
There is no one size fits all, but, at its core, the job of a digital transformation is to make your business work faster and leaner.
At its bare bones, it means updating your company’s technologies and processes. But according to Forbes, most companies are “hesitant to invest in digital transformation without knowing if the investment will pay off”.
And they’d be right – as we say in Zarrdia, before you do anything ask does it make business sense? Depending on the state of your IT estate or the size of your business, a digital transformation will look different for everybody. There is no one size fits all, but, at its core, the job of a digital transformation is to make your business work faster and leaner. You attract and maintain, more customers that way.
Take a look at Amazon if you don’t believe me. Over a 30-hour period during 2017’s Christmas shopping season, the loading time of several retail websites were consistently monitored.
Who came out on top?
Their desktop site took all of 2.3 seconds to fully load. On mobile, it took just 1.14 seconds. And in 2019, customers reward speed. A total of 79% of people say they will not return to a website if it was slow to load, and nearly 50% of customers expect a site to load in 2 seconds or less. Speed means everything. Because speed means customers. No matter your business, be it a professional service or a corporate bank, customers expect speed.
They live it every day. In Ireland, 97% of us have access to a smartphone – those rapidly functioning minicomputers we sleep with, travel with and dine with every single day. Around the world, 5 billion out of 7 billion of us have smartphones. Speed is what people are used to. And so your business needs to operate as quickly as possible. This is what Microsoft, Nike, Hasbro and a whole other host of companies took note of, and so they made themselves faster by undertaking a digital transformation.
“That’s great,” you might say, “but what does it actually look like and how much will it cost me?”
US retailer Target, with its 360,000 employees and 1,851 stores, invested in new technologies allowing customers to order online and pick up in-store. In dollar signs, this struggling company has seen its stock price rise by 66% over the 8 years it took to digitally transform and its revenue increased by $6 billion over the last two years.
Home Depot on the other hand, set about hiring 1,000 IT and user experience professionals, to transform their IT estate into a business-making machine.
What did those hires do?
Its stock price has risen by 59% in just two years from $135 in early 2017 to $215 today. In the same two-year period, its revenue has grown from $93.3 billion to nearly $110 billion.
What all of these companies did differently to their competitors is that they streamlined their IT estates to get them working faster. And as a result, their revenues and stock prices soared. A straight line can be drawn between speeding up the agility of your business and growing your revenues.
This is what we do at Zarrdia.
We’ve sat down with clients, looking first at their business’s key KPIs and then secondly, examining their IT agility and flexibility. We’ve gotten their IT estate working for their business. As a result, we’ve seen revenues grow and monies saved. If you want to know more, have any questions or are wondering if you could speed things up at your company email [email protected]