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For a real transformation you have to digitize your value chain overall. Companies that lean their innovation only on a virtual store take a higher risk on closing the doors to their physical stores.

For a real transformation you have to digitize your value chain overall. Companies that lean their innovation only on a virtual store take a higher risk on closing the doors to their physical stores.

Activating an e-commerce is far from being the most technologic action you could take for your business. The real transformation requires tools and solid plans involving all sectors of the company, from its communication to its transactions.

Primarily, it’s necessary to change the company’s mindset in order for everyone to start thinking in a digital way. That’s the key ingredient which will highlight your company in the market.

Also it doesn’t matter in what business segment you are on. Even fast food restaurants can beneficiate itself with the digital transformation. Take Domino’s as an example: nowadays it’s one of the biggest pizza companies worldwide with 13k stores over 83 countries thanks to technology.

Basically all segments of execution behind Domino’s operation has the digital element: investments, charts, hirings, projects, branding, communication, among others.

These initiatives made its actions go up. It grew over 3000% in less than a decade, outgrowing big players like Amazon and Apple.

If Domino’s only digital attitude was allowing online orders, ignoring other tools and not expanding its transformation, it most certainly wouldn’t have grown so much now, would it?

National Investments

Fortunately, brazilian entrepreneurs have been using technology to promote great experiences to their customers, increase productivity, reduce costs and, of course, to grow.

A research made by the Brazilian Association of Information and Communication Technology Companies (Brasscom) has shown that over 7% of the national GDP is connected to investments on IT and communication.

Until 2021 all the investments in the digital area should reach 250 billion reais, including solutions to digitalize business, Internet of Things (IoT), Big Data, among other tools.

In Roberto Alonso’s opinion, professor of marketing at the Foundation Business Institute (FIA), technology oriented strategies are fundamental to evolution.

The digital transformation is a process in which companies start using technology aiming for a better performance in their activities. Thenceforth, a new level of design has got to come up in various segments like range, comprehension of the public, hosting, affirms him. “To keep up with the changes is fundamental to succeed.”

Those who kept up with it, now are able to see the results. Take Magazine Luiza for example. Famous for selling furniture and appliances, the company drastically changed its tactics and operations to a more technological and powerful way.

A few months ago the company reached 30 billion reais at the stock market. Today it is considered the most valuable retail store in the country.

The increase was not only due to the e-commerce. The company was not joking about the changes and completely changed the mindset of all sectors, using essential new tools as a guidance to its further actions.

It’s all about the journey

Companies that didn’t pay that much attention to technology or invested in one segment only, like just e-commerce itself, now try to recover their losses.

The Máquina de Vendas, owner of Ricardo Eletro, didn’t face technology the same way Magazine Luiza did.

Coincidently or not, in 2018 the company raised 3 billion reais in debt that should now be managed by Starboard, brazilian private equity company that bought 72,5% of the business.

The book selling business is not going well over here also. With the french company Fnac leaving the country and the judicial recovery of bookstores such as Saraiva and Cultura highlighted the sector suffering mostly with the price drop.

Saraiva loses as well in its biggest business, movies and music, which was too digitalized. Giant companies like Netflix and Spotify helped it collect more debt reaching 674 million reais in 2018.

According to Alonso, the secret to all segments is to look to the future. “The biggest mistake is to believe everything should be as it was in the past, to adopt a very traditional or conventional attitude”, says him.

“The market requires fast decision making. Ignoring trends, disruptive technologies and newest business model could be fatal to companies of all sizes.”, affirms him.

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The CWS is composed of journalists and technology specialists. Here, studies, researches and articles about digital transformation are published constantly.

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