Sweetgreen, a U.S.-based chain restaurant, is a prime example of how a business can use digital transformation to make its customers happier while achieving growth and streamlining their operations. When the COVID-19 pandemic hit restaurants in 2020, many weren’t prepared to face the reality of being unable to serve customers face-to-face. Sweetgreen, however, was an outlier, as the chain quickly got away from the traditional way of operating and started a digital transformation.
Some of the key elements in the shift included a mobile app and an online ordering system, through which over 68% of orders were placed in 2021. This app allowed Sweetgreen customers to customize orders for quick pickup or delivery, meeting the demand for convenient, contactless options—especially during the pandemic.
Sweetgreen also used customer data to personalize offers and recommend meals based on individual preferences, increasing repeat orders. Along with that, the company introduced automated kitchens to streamline operations, cutting order times and boosting efficiency, which enabled the chain to serve more customers without sacrificing quality.
By 2022, Sweetgreens had grown to over 160 locations nationwide, driven by a customer-centric digital approach that resonated with a young, health-conscious audience. The digital transformations they implemented in just two short years attracted many loyal customers, who loved seeing a company’s progress in real-time and its commitment to progress and sustainability.
Sweetgreen is just one example, and there are many more that prove digital transformation is a must-do for businesses in today’s world. However, for many owners who are used to the traditional approach and have many daily tasks to handle, the idea of starting this new journey is daunting.
That’s where our practical approach to digital transformation comes into play.
First: Outline What Digital Transformation Entails
Digital transformation is an umbrella term, and can be difficult to understand exactly what happens when a business chooses to undergo it. Let’s simplify it!
The core components of a digital transformation include:
- Digitalization of processes: As a business owner, you have to consider which core processes of your company could benefit from a more digital approach. If you’re not sure how to determine that on your own, there are consultant firms and specialists who could help you out.
- Business model transformation: If your entire business relies on a more traditional way of operating, you may consider transforming it or simply adding new layers that make your venture more accessible to other clientele.
- Domain transformation: Expanding into new market segments thanks to digital technology or simply building new digital ecosystems with partners and suppliers.
- Organizational transformation: If you’ve worked with a traditional model, you will have to encourage your customers and employees to experiment and test innovations while fostering cross-functional collaboration.
Learn About the Common Misconceptions
There’s a lot of misinformation out there on digital transformation, especially from those who are massively against the adoption of new technology and can’t accept the changing tides in business. Some things you’ll often see being said against the process of digitalization are:
- “Digital transformation is just about buying new technology”
Reality: While technology is important, successful transformation relies equally on strategy, people, and processes. The most effective transformations focus on solving business problems rather than implementing technology for its own sake.
- “We need to transform everything at once”
Reality: Successful digital transformation often happens incrementally, with carefully prioritized initiatives that build upon each other. Starting small with high-impact projects often yields better results than attempting a complete overhaul.
- “Digital transformation is too expensive for growing businesses”
Reality: Many digital solutions are now scalable and accessible to businesses of all sizes. Cloud-based services, in particular, offer flexible pricing models that allow companies to start small and scale as needed.
- “It’s only relevant for tech companies.”
Reality: Digital transformation affects every industry. From retail to manufacturing, businesses that embrace digital technologies gain competitive advantages in efficiency, customer service, and market responsiveness.
Figure Out What Makes Digital Transformation Truly Worth It
There’s a great Bob Dylan song that goes, “The times they are a-changing.” It was true when he first sang it and it rings true to this day. Times are changing, and thanks to technology, at a faster pace than ever before. Companies that fail to adopt will have to pay the price now or a few years down the line.
As consumer behavior rapidly evolves, with e-commerce now representing over 20% of global retail sales and mobile commerce growing at triple the rate of traditional e-commerce, businesses face a stark choice: transform or risk obsolescence. This isn’t just about keeping up with technology – it’s about survival and using digital innovation for business growth in an increasingly digital-first economy.
The financial implications of digital transformation are impossible to ignore.
Companies that have successfully implemented digital strategies are seeing their revenue grow up to five times faster than their traditional competitors. What’s more telling, organizations with advanced digital capabilities consistently demonstrate profit margins twice as high as those still relying on conventional methods.
These aren’t just statistics; they represent the growing divide between digital leaders and laggards in every industry.
The cost of inaction is equally striking. Businesses without clear digital transformation strategies risk losing a chunk of their market share to more digitally savvy competitors. Customer expectations have shifted dramatically and most of the younger generations now prefer digital interactions over traditional methods. The message is clear: businesses that fail to meet customers where they are – on digital platforms – risk losing them entirely.
An increase in operational efficiency gains creates another compelling argument for digital transformation. Automated workflows can reduce operational costs by 20-30%, while digital document management systems cut processing times in half. Cloud adoption alone can lower IT infrastructure costs by 30-40%, making digital transformation stand out as not just a growth strategy but a crucial cost-management tool.
Perhaps most importantly, digital transformation isn’t just about implementing new technologies – it’s about fundamentally rethinking how businesses create and deliver value. Companies that successfully transform see benefits across their entire operation: customer service costs drop, product development cycles shorten, and decision-making processes accelerate.
So Where Do You Begin?
Digital transformation is still powered by people, and its successful implementation in your company depends on the team you choose to lead it. That’s why finding a trustworthy partner who can help you walk across every line and achieve all milestones is of crucial importance. With that said, there are a few key points that you need to be on the lookout for in order to execute a digital transformation that delivers tangible results.
- Start with taking a hard look at current operations and identifying the most pressing pain points.
For some companies, this might reveal inefficient customer service processes; for others, outdated inventory management systems. During this initial, “quick wins” phase, focus on high-impact, low-complexity projects that demonstrate value and build momentum. That could mean automating customer support out of office hours by using an AI tool or automating the invoice process and reducing human errors and unproductive working hours.
For most owners, the problem with this phase is they don’t know which of their processes can be easily adjusted, and that’s where an expert in the field of digital transformation is useful.By taking a look at your operations, an expert can help you identify these quick wins and implement successful digitalization strategies right away.
- Once you’re done with this initial phase, core transformation follows.
This part of your company’s transformation usually involves major system implementations and process redesigns. This is where the heavy lifting happens – from implementing new customer relationship management systems to overhauling supply chain operations. At this point, you will have to make investment decisions and plan major changes to the way your company works – both the customer-facing side of it and the internal part that makes up a large part of the day-to-day life of a business owner.
It’s also the time to find a company and a partner with experience. Even though you might have imagined doing the initial heavy lifting on your own, when it comes to core transformations and implementing new technologies for your business, you’ll surely want outside help.
- Finally, the innovation phase focuses on leveraging technology for business success.
This might mean developing new digital products, entering new markets, or creating innovative customer experiences. At this stage, you will need to get the buy-in from all your employees, especially your management team, as they will be the biggest source of ideas on how you can improve your current offering and what you can do to expand it in the future, since they should know all the latest trends in your industry.
Keep in mind, that the team that worked with you on the company’s digital transformation should continue being your partner in all the next steps as well, as they can be the ones to keep you in on all that’s happening in the world of tech and how it can be useful to your business model and in general to the kind of industry you operate in.
Don’t Forget To Measure
While revenue growth often takes center stage in transformation metrics, successful digital initiatives require a more nuanced approach to measurement. Top-performing companies are adopting a balanced scorecard of metrics that paint a complete picture of their digital evolution. Customer-centric metrics lead the pack, with organizations tracking not just satisfaction scores but deeper engagement indicators. These include customer lifetime value, digital channel adoption rates, and real-time feedback scores. Progressive companies are also monitoring the speed and quality of customer interactions across digital touchpoints.
Operational efficiency tells another crucial part of the story.
Key performance indicators include process automation rates, error reduction percentages, and time saved through digital workflows. Forward-thinking organizations are tracking employee productivity gains and the adoption rates of new digital tools among staff.
Financial metrics remain critical but have evolved beyond traditional ROI. Companies now monitor digital revenue streams, cost-per-transaction reductions, and the shift from fixed to variable costs through cloud adoption. The most sophisticated organizations also track the velocity of financial processes, measuring how quickly they can close books or process transactions in their digital ecosystem.
Innovation metrics complete the picture, measuring factors like time-to-market for new digital products, the percentage of revenue from digital channels, and the success rate of digital initiatives. These indicators help organizations ensure they’re not just digitizing existing processes, but truly transforming their business model.
The key to effective measurement lies in aligning metrics with specific business objectives and regularly reviewing and adjusting them as the organization’s digital maturity grows.
Don’t Stress Too Much
Let’s be honest – digital transformation can feel about as comfortable as wearing roller skates to a black-tie dinner. One minute you’re confidently striding into the future, the next, you’re wondering why you thought teaching your entire accounting team to use TikTok was a good idea. But here’s the thing: much like learning to dance, transforming your business doesn’t require you to become a technological Fred Astaire overnight.
Start with baby steps (preferably not in roller skates), celebrate the small wins (like finally retiring that fax machine from 1997), and remember that even the most digitally savvy companies once spent a week trying to figure out how to unmute themselves on Zoom. The beauty of digital transformation is that it’s less about perfection and more about progress – though if you can manage to get your printer to connect to Wi-Fi on the first try, you’re already ahead of 90% of the competition.
So take that first digital step. Just remember to back up your data first – because, unlike your high school dance moves, some things are worth preserving.