Successful digital transformation examples we admire: Nike, Starbucks, IKEA and more

We’ve compiled some successful digital transformation examples that we’re sure you have seen around. These are some of the best and biggest global digital transformations.

NIKE 

A notable example is Nike, which is embracing technologies like AI, blockchain, NFTs, robotics, the metaverse, cryptocurrencies, e-commerce, gaming, and virtual reality to digitally transform its operations.  

In 2023, Nike’s annual spending on ICT was estimated at $1.3 billion, with a significant portion allocated to acquiring software, network, communications, and ICT services from vendors. 

For instance, Nike introduced a product traceability system that allows consumers to verify the authenticity of their shoes. This system combines blockchain technology and embedded NFC chips to provide verified details, such as the shoes’ shipping origin, manufacturing date, and specific style. 

The company is leveraging several emerging technologies, including AI, blockchain, NFTs, robotics, and the metaverse, to enhance customer engagement and sales, improve customer service, optimize operations, achieve ESG goals, strengthen customer relationships, and reduce customer churn. 

Over the past few years, Nike has engaged in various strategic technology partnerships, collaborations, technology developments, rollouts, and acquisitions. In 2022, Nike and its digital fashion and 3D creation studio, Rtfkt, launched a collection of co-branded digital sneakers called Nike Cryptokicks.

These digital sneakers are modeled after the Nike Dunk sneaker and can be purchased by owners of Rtfkt’s Mnlth, a mysterious digital box NFT. Nike also filed trademarks for Cryptokicks.  

This launch marked Nike’s entry into digital sports apparel and was part of its strategy to enhance brand presence and boost customer engagement in the digital assets space. 

The company is also focusing on mobile devices, utilizing advanced technologies like machine learning and recommendation algorithms.

One of its mobile apps helps users select the ideal shoe by scanning their feet, creating a detailed 13-point map. Additionally, this app supplies the company with valuable data to inform future footwear designs. 

BBVA 

BBVA embarked on its digital transformation journey in 2007, with the goal of strengthening customer relationships through digital self-service.

This transformation, crucial for organic client growth, has expanded to include the development and sale of new digital banking products, with digital channels now making up over two-thirds of their total sales. 

By incorporating machine learning, BBVA offers personalized financial guidance, which boosts their customers’ financial wellbeing.

These tools have led to a significant 73% rise in interactions, increasing from 11 million to 19 million between November 2020 and the same month this year, thereby improving customer retention and loyalty. 

Since partnering with Google in 2012, BBVA has focused on core capabilities like integration technology.

This collaboration has enhanced their cybersecurity measures, improved employee experiences, and reduced the time to bring new products to market from two years to just nine months. 

Collaborations with Uber, Mastercard, and Accenture have advanced BBVA’s Banking-as-a-Service (BaaS) offerings, resulting in innovative solutions such as digital debit cards for Uber drivers.

BBVA continues to evolve by transforming into a digital enterprise rather than just a digital bank, striving to meet the needs of today’s customers with constant innovation and maintaining its lead in the financial industry. 

British Telecom (BT)

After acquiring EE, British Telecom (BT) faced the challenge of merging BT’s diverse services with EE’s extensive mobile networks, each with its own complexities. To better align and enhance these offerings, BT realized the need to simplify processes and boost operational efficiency. 

Inspired by EE’s past success with an API-driven approach, BT saw the advantages of adopting a centralized, API-first strategy.

By fully embracing this method, BT aimed to introduce greater agility through automation, big data, and enhanced digital channels. They recognized that a unified API strategy could significantly improve both efficiency and the user experience.  

As part of this digital transformation, BT established an API Factory to optimize their entire process from design to deployment. They also adopted a federated model, allowing different business units to manage their own API development while the entire organization benefited. 

The results of this transformation were outstanding. Partner onboarding was slashed from 6 weeks to just 2 days.

BT now has over 700 APIs at its disposal, with a 75% reuse rate, resulting in significant cost and time savings across various business units. Their partner ecosystem has seen substantial growth, doubling since 2018, driven mainly by their self-service API portal.  

By focusing on user experience, they achieved 100% customer engagement through the self-service platform, with no outages for over two years, setting a new benchmark in the industry.

IKEA  

IKEA’s digital transformation journey serves as an inspiring story for businesses of all sizes and industries, demonstrating that digitization is achievable.

IKEA’s transformation was invigorated when a tech-savvy leader, Barbara Martin Coppola, became the Chief Digital Officer, sparking a cultural change. 

IKEA faced the challenge of staying true to its core values while implementing changes across every aspect of the business—from sourcing materials and managing the supply chain to optimizing fulfillment centers, e-commerce, delivery services, and in-store experiences. For IKEA to succeed, their digitization strategy had to be comprehensive, and they approached it methodically. 

1. Streamlining IT architecture: By adopting parallel processing and a modular approach, IKEA first simplified its IT infrastructure. 

2. Enhancing customer touchpoints: They focused on understanding each customer touchpoint, mapping where digital and physical experiences can be merged or enhanced. 

3. Digitizing operations and partnerships: utilizing digitization for both internal operations and external collaborations, along with fostering a culture shift, allowed for a cohesive integration. 

Aligning these three elements offers IKEA a flexible yet clear path toward becoming a fully integrated digital company. 

Today, 80% of IKEA’s customer journeys begin online. Customers can design interiors online and visit stores where VR and AR tools help visualize how items will look in their homes. Some stores also double as fulfillment centers, enhancing the shopping experience whether online, in-store, or a blend of both.  

Their supply chain is fine-tuned to consumer demand and market trends, aided by AI and machine learning predictions. Additionally, partnerships with third-party services like TaskRabbit offer customers additional conveniences, such as hiring help for furniture delivery and assembly. 

Moreover, IKEA has launched a smart home initiative, featuring smart kitchen appliances and lighting. AR technology in the IKEA Place app also enables customers to virtually “furnish” their homes, making store purchasing decisions easier. 

IKEA exemplifies digital transformation by showing what it takes across all aspects of a company to achieve successful digitization. 

Starbucks  

Starbucks, a beloved coffee chain with over 32,000 locations across 80 countries, is a familiar name to coffee enthusiasts everywhere.  

In 2017, Starbucks announced its “Digital Flywheel” strategy, a digital transformation initiative structured around four key areas: rewards, personalization, payment, and ordering. 

This strategy aimed to seamlessly integrate the physical and digital interactions with customers. According to Matt Ryan, Starbucks’ Chief Strategy Officer, the aim was not only to achieve excellent short-term business outcomes through enhanced rewards, ordering, and personalization but also to make it difficult for digital competitors to surpass Starbucks in the physical retail space. 

This initiative aimed to revolutionize rewards, personalization, payments, and ordering by incorporating customer feedback.

Using cloud-based platforms, Starbucks enhanced its ability to provide tips and process orders while efficiently managing inventory and production. 

Beyond introducing Mobile Order and Pay, Starbucks revamped its customer app to harness artificial intelligence (AI), tailoring product recommendations and discounts based on individual customer preferences and purchasing patterns.

Furthermore, the wealth of data gathered from the app is utilized to inform strategic decisions on various aspects, from choosing store locations to optimizing in-store staffing logistics. 

As stated by Starbucks’ CEO, the brand is committed to embracing new technologies, a dedication that solidifies its status as the world’s most renowned coffee brand. 

Just a few of the successes are: Mobile Order & Pay set a company high 30% of all transactions.

Customers loaded a record $3.6 billion onto the app and gifts cards. This massive interest-free customer financing spares Starbucks hundreds of millions in borrowing costs, as corporate rates hover near 10%. 

“Starbucks has direct, digital relationships with hundreds of millions of customers. Our ambition is to know every customer, personalize their experience and make Starbucks effortless,” Brady Brewer, chief marketing officer, explained. “We have a clear and compelling roadmap, the acceleration has already started, and we will extend our digital leadership globally.”

The company aims to double its Rewards program enrollment to a staggering 150 million members in the next five years. 

To see more, check out our eBook series on digital transformation!