Lego Digital Transformation is a fantastic example of saving business through transformation.
They would have gone bust if they had not accepted the need for technologies.
They were well clear that they required to make adjustments. How did they achieve transformational success? Continue reading to find out.
Lego Digital Transformation
Lego is unquestionably one of the most well-known toy companies in the world. But, Lego, like any other business, had hurdles. And it was so terrible that they were on the verge of bankruptcy.
In 2003, Lego lost 30% of its sales. It had expanded by 10% a year later. This corresponds to more than $300,000 a day.
They would almost surely fail if they do not take measures. They, fortunately, adopted technology change. As a result, it resolved issues in their supply network.
What exactly are the four stages of the Lego digital transformation project? What can we learn from their example, too?
Let us take a look.
Lego Digital Transformation: The Four Phases
We will consider the following phases of Lego’s DX:
- Embrace change.
- Examine the data.
- Work with other companies.
- Innovate the target market.
Accept that something has to be done first. And only if you are willing to take chances can you enjoy it.
Of course, all strategies include the level of risk. Lego, on the other hand, was not hesitant to take them. As a result, they were able to adjust quickly.
The toy company also noted their issues. As a result, they could objectively assess which areas needed change.
They were able to react swiftly because they quickly accepted the need for change.
Examine the data.
The core of digital transformation is data. It allows company executives to discover the current customer demands and others.
As a result, they can make wise and better judgments based on their findings. Lego analyzed data after determining their problems.
They then realized that they needed to fix their supply networks. Lego found that they were not losing customers because video games have become more popular.
They now know which items are ineffective thanks to data analytics.
Work with other companies.
Some believe that we always have to compete with our competitors. The thing is, working with them is not always bad. And Lego proved that.
Lego worked with their competitors. As a result, they gained the same consumers as their partners.
For instance, they collaborated with other toymakers and action figures, like Star Wars and Batman.
Innovate the target market.
As toymakers, Lego’s target audience is kids. And Lego has to think of new strategies that allow them to reach more children.
So, they launched a movie franchise. And that’s thanks to their analysis of the data that children love movies, too.
By doing so, they were able to innovate the market and reach more audiences.
Lego was also unafraid to adopt new technologies. For instance, they used 3D printers, robotics, and sensors.
These advanced technologies allow the company to offer more services. They also benefitted from them because their processes are now streamlined and cost-effective.