Invest like you mean it
Most companies have invested in technology, training and new ways of working here and there, or in a core area or two. But getting a return on investment requires a holistic, purposeful approach to build the infrastructure that will support your aspirations and ability to pivot. Many companies in 2020 have had to quickly get comfortable with the risk of jumping ahead from where you are today to invest in what you need to succeed now and in the future.
Look broadly at processes, technology and ways of working and build a roadmap for tech, infrastructure and people that is fluid and flexible beyond the next few years. Transcendent companies are more likely to have a long view of transformation; and 96% (versus 74% of others) have a clear direction for digital and they invest accordingly.
Match your long-term investment to your plan and focus on business performance: 66% of all companies say their revenue and profit will suffer if their digital transformation doesn’t move fast enough. Transcenders invest purposefully, focusing long term on the tech and processes that help their people innovate to move quickly. A combination of consistent investment with a focus on remaining essential does pay off.
To innovate more in products and services, do as Transcenders have and make smart investment risks. Prioritize programs that don’t just save time, introduce new ways to serve customers or streamline processes, but ones that suit your people best and drive business. The payoff for Transcenders: 17% higher profit margin growth.
John Deere
Investing for tomorrow — in tractors
Nothing runs — or modernizes — like a Deere. Agriculture and heavy equipment manufacturer John Deere may not be the first company that comes to mind when you think of making investments in digital, but ...
- Deere spent the last several years investing in workforce development programs to attract and retain skilled employees.
- The company moved beyond standard manual equipment, integrating AI and deep data in their machinery.
- An autonomous farm concept aims to give farmers remote control over machinery.
- New tech helps pinpoint unhealthy crops and treat them precisely, reducing pesticide use.
- Digital investments allowed the company to pivot in 2020 to making face shields and other personal protective equipment.
At 182 years old, Deere is investing in what’s next, and developing its workforce to match.
“Digital transformation doesn’t just involve adopting fresh technology, then calling it a day. It’s a holistic task requiring a clear vision…and a comprehensive implementation plan.”
Amazon
Finding payoff — even when it takes time
Today, Amazon is one of the world’s leading technology firms and has disrupted countless industries. But, it took patience in its plan and outsized investment to get there: Amazon lost money consistently for 10 years — and off and on for another 12. It first posted a profit in 2001. In the final quarter of 2017, though, the tech giant reported $1.86 billion in profit — more than its first 58 quarters combined.
A roadmap for what’s next
Amid all this, Amazon planned with a long roadmap. For instance, in 2003 the company announced its foray into web hosting services, a nascent industry. Amazon Web Services now powers about 40% of the global cloud market.
Out-investing — and out-performing
Transcenders invest a higher percentage of their revenue in digital efforts
The payoff for Transcenders
77%
get significant value from new technology
