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BBI of Chicago
October 2022

Aspects of digital transformation for business success

By: Hugo Alves da Silva.

Digital transformation is transforming the way business is done. Today, instead of products, companies offer value; instead of service, customers look for experiences; instead of portfolios, customer networks are built. Keeping an eye on these and other aspects of the digital age is critical to maintaining or creating successful and competitive businesses.

The highly thriving technological environment has caused rapid changes in customer needs, diverting them from the product route and directing them to the perceived value route. For Rogers (2019), those companies that maintain adaptable value propositions to customer needs will be successful in the digital age. In this context, a good example of failure would be the multinational Kodak, which declared bankruptcy in 2012. According to Ismail, Malone, and Geest (2019), this company invented and rejected the digital camera, a product that, in 2019, sold only the equivalent of 0.1% of the number of smartphones sold (CARVALHO, 2020).

Associated with the constant change of needs is the satisfaction of customers who want to increasingly promote good service for a pleasant and successful business experience. Rogers (2019) presents two cases that highly connect with the theme. The first refers to the Share a Coke campaign, promoted by Coca-Cola, in Australia, in 2011. Objectively, the campaign consisted of printing people's names at the brand's location. The experience was so positive for the young adult age group that, in addition to the 7% increase in soda sales, the company saw access to its Facebook page grow by 870%. There's more: Coca-Cola sales were falling in that country. The second case is when Netflix influenced 75% of its customers' choices. When accessing the platform, the customer faces show suggestions that speak directly to their preferences, be the genre, subject, or artist. Behind this success are the learning algorithms, whose objective is to analyze people's search and choice patterns to know what to offer them on their next visit. Leveraged by the COVID-19 pandemic, in July 2021, Netflix reached the mark of 209 million subscribers around the world (NETFLIX, 2021).

In the digital age, we cannot neglect the reaching power of the internet. According to Rogers (2019), the ability of consumers to interact on the network is so great that they end up having the potential to build brands, reputations, and markets. On social media, users post pictures of a new product and share their feedback. On Youtube, there are several amateur opinion videos. Not to mention the review sections of the shopping sites. All these manifestations will feed the learning algorithms of search engines, influencing the results of future searches. It is this new reality that makes up the innovative customer network.

As you can see, the emergence of new technologies has promoted rapid changes in customer needs. In this scenario, the only safe action for companies is to stay on the path of constant evolution, where we must absorb technologies in favor of their value propositions. In the digital age, customers are willing to communicate on their networks, influencing each other based on lived experiences. It is clear that digital transformation is transforming the way business is done.



CARVALHO, Sandra. Câmeras digitais: em 10 anos, o auge a agonia. Circuito D, 17 fev. 2020. Available at: <> Accessed on September 29th, 2021.

ISMAIL, S.; MALONE, M. S.; GEEST, Y. V. Organizações exponenciais: por que elas são 10 vezes melhores, mais rápidas e mais baratas que a sua (e o que fazer a respeito). 1. ed. Rio de Janeiro: Alta Books, 2019.

NETFLIX INC. Letters to Shareholders. Los Gatos, 20 jul. 2021. Available at: < Shareholder-Letter.pdf>. Accessed on September 30th, 2021.

ROGERS, David L.; Transformação digital: repensando seu negócio para a era digital. 1. ed. São Paulo: Autêntica Business, 2019.

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