Understanding DX with Examples of Digital Transformation
The fourth industrial revolution has revolutionized digital technology and enabled data-based decision-making in modern society. Now, companies are facing a massive digital transformation. There are things we can learn from examples of successful digital transformations before we face these new changes.
Let’s take a look at examples of digital transformation success and limitations in today’s discussion. First, we will examine successful cases of digital transformation in three major companies to determine the direction your company should take for its digital transformation initiative.
Companies have experienced innovative growth through the right digital transformation strategies. Let’s start with these success stories.
The first example is SK Networks. SK Networks is one of the major domestic conglomerates in South Korea that provides various services ranging from mobile device distribution and hotels to SK Rent-A-Car and kitchen appliances. SK Networks is a company that quickly introduced digital transformation strategies. Since 2019, the company conducted digital transformation education for over 2,000 employees through a digital education platform called Elice. Employees, including those from liberal arts backgrounds who were distant from IT or coding, improved their digital capabilities after completing digital transformation education. They were able to develop and handle in-house data-based solutions using the acquired digital skills.
As a specific example, in the car rental department, employees received digital transformation education and developed a solution by integrating in-house data and external APIs to map frequent car accident locations. Ultimately, this solution provided useful information to customers using the rental cars, increasing satisfaction and improving the department’s performance.
The second case of successful digital transformation is SK Magic. SK Magic is a company that primarily focuses on businesses related to lifestyle, kitchen, home appliances, manufacturing, and rental services. It holds the largest market share in seven major household kitchen appliances, including direct water purifiers, dishwashers, gas ranges, and electric ranges.
SK Magic not only satisfies itself by producing products equipped with digital technology but has also established a comprehensive digital transformation strategy. They have implemented progressive digital transformation education for their employees. The gradual digital transformation education conducted here refers to providing a step-by-step educational process, starting from theoretical training using various educational contents to practical training centered around in-house data-based projects.
In the initial theoretical education phase, SK Magic utilized Elice’s Learning Experience Platform (LXP) educational service, which includes a smooth 1:1 question system and personalized AI learning dashboards based on learning data. They conducted in-house, data-driven project-based training sessions for employees who demonstrated outstanding potential in this area. During the practical training, SK Magic conducted training using in-house data-based projects for the selected employees. Together with Elice’s digital transformation experts, they identified real issues within the company based on SK Magic’s actual in-house data. Subsequently, they carried out a total of 7 projects based on these identified issues. As a result, SK Magic developed its own solutions using Python and web technologies. One notable project involved analyzing in-house rental customer data to predict rental default points. By identifying improvement areas before defaults occurred, they developed a solution to decrease the default rate.
The third case of digital transformation is CJ OliveNetworks. CJ OliveNetworks is a leading company in various fields such as manufacturing, distribution, logistics, and media, and has conducted DX training in various fields such as mobile, big data, and AI for 1,200 employees in the IT business.
CJ OliveNetworks’ large-scale, company-wide digital transformation education has indeed shone brightly. The data department established a new machine learning division, and employees who completed their training effectively demonstrated their expertise as AI specialists. They even developed deep learning algorithms themselves. Specifically, they created a technology that integrates a visual image classifier with a real-time webcam, enabling the recognition of gender, age, and emotional state when a face is captured.
The digital transformation cases introduced earlier were examples of successful corporate growth achieved through the implementation of appropriate digital transformation strategies. However, a company’s digital transformation does not guarantee success. In many cases, the introduction of DX, which started with hope, ends with a one-off. This is due to the limitations of digital transformation. Let’s examine the limitations of digital transformation that companies often overlook and explore ways to overcome them.
The first limitation involves the issue of expertise in executing the digital transformation. Here, expertise refers not to proficiency in handling DX technologies but rather a domain expertise in applying digital transformation. Some companies might lack the resources to hire consulting firms to tailor the digital transformation according to internal needs. In such cases, they might outsource the entire task or assign it to their in-house IT department, which might find it easier to handle. However, this kind of digital transformation doesn’t contribute fundamentally to the company’s growth. For instance, if a DX project related to customer data classification from the sales department is exclusively handled by the IT department, it might conclude the project is limited only to some data classification automation without understanding the fundamental issues faced by the sales department. Projects limited to surface-level issue resolutions, without addressing the root causes, might lead to similar problems in the future, resulting in a significant waste of time and resources if the company has to start projects from scratch.
To prevent this, employees from each department within the company should first understand and grasp why digital transformation is necessary for the company, what outcomes it can bring, and what value employees can gain. This understanding should be shared vividly. Subsequently, employees should receive direct digital transformation education, enabling them to apply DX technologies to address the real problems the company is facing.
The second limitation is the one-off problem of utilizing DX technology. As with everything, the beginning is done under a resolute and thorough plan. So is corporate digital transformation. Right now, we are at the initial stage of implementing digital transformation, which means having a robust digital transformation strategy is crucial. Based on this strategy, we will utilize DX technologies and develop problem-solving solution models. However, the challenge lies in what comes next. It’s not just about creating one model; instead, it’s about continuously updating and adapting to the evolving issues within the company and aligning with DX technologies.
To address this, employees must start with continuous digital transformation training. In addition, communication with DX experts who can analyze corporate problems from multiple angles can be helpful.
Indeed, for a company to lead its digital transformation strategy to success in the long run, it is essential to address the limitations that digital transformation might face. As mentioned earlier, there is a common solution to the two limitations: digital transformation training for employees. Let’s look at why digital transformation education is important and see some useful digital transformation education platforms.
In conclusion, the digital transformation of companies today is a necessity, not an option. Furthermore, considering the success stories and limitations of digital transformation, it is necessary for companies to conduct corporate training that is verified and reliable. Through this digital transformation education, employees can grasp the practical need for DX. The reason for the need for well-equipped digital transformation education is as follows
- Active participation of employees is key to digital transformation success
- Continuous digital transformation training tailored to business conditions is necessary
Elice provides a leading corporate digital transformation education platform, offering tailored and customized training systems optimized for each company. In all three of the success stories introduced earlier, Elice was used as the employee DX training system. What are some of the key services of Elice corporate education chosen by leading companies?
First and foremost, Elice’s corporate education platform offers a customized learning experience for employees through its Learning Experience Platform (LXP) service. The LXP service not only verifies learners’ education completion based on attendance but also uses AI to confirm actual learning by encouraging learners to code directly, ensuring practical learning experiences. Next is the Project Based Learning (PBL) service. PBL services involve consulting with Elice’s DX experts using a company’s internal data to accurately identify the issues the company faces. This educational service progresses by tackling these problems through projects. By utilizing such services, companies can lead essential growth through digital transformation.
We have explored the successful cases and limitations of digital transformation in three companies so far, along with the digital transformation education that can address these limitations. Are you currently considering digital transformation? How about actively adopting DX technologies and changes in your company through reliable digital transformation education services like Elice? Becoming a success by embracing these technologies and changes could be a great opportunity for your company.
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