The Impact of Digital Communications in Traditional Business 

The modern economy is not based solely on capital and human resources, but above all on knowledge held by businesses. The right information at the right time will decide an enterprise’s growth and strong competitive position on the market, while lack of such information may also contribute to its failure. A well-developed e-business strategy and techniques that are well tailored to the complexity of this form of business and used properly have a positive effect on the performance of an organization. The digital economy can not, in fact, be limited to issues relating to the organization of electronic commerce. The Internet offers a wide array of new possibilities for access to information and communication. The bulk leads only indirectly to increased productivity in economic production and distribution, but includes increased customer satisfaction, increased welfare and freedom of communication and trade in the first place. 

5 Years at Microsoft 

At first Microsoft focuses on selling product such as Window and Office Suit. It makes Microsoft stock price can’t rise up against the competition. But after apply the cloud networking system, Microsoft can compete against big companies such as Apple and Amazon. It’s very important to rethink and create new strategies in this digital era. Microsoft shows us that being able to adapt to new trends helps traditional business transform into digital business. Microsoft stock rises from $ 38 to $ 136 in 5 years time. 

7 Years at Hasbro 

Hasbro is a toy and game company that focuses on selling physical product in toy stores around the world. In 2012, Hasbro made a new marketing strategy by targeting parents to make the purchases on their products through social media and multiple channels. Using Big Data enables Hasbro to understand their customers and helps recommend customers the right toys and games for their children. By doing this, Hasbro stock price increased from $ 36 to $ 109 in 7 years time. But it also comes with a great price, Hasbro spent 1100% of their advertising expenses to gain $ 1 billion which is totally worth it considering the amount of profit gained. 

7 Years at Best Buy 

Best buy is a electronic appliance atore in the first place but after realizing that they couldn’t compete against digital businesses such Amazon. They start using digital strategy by changing their mail strategy into using big data to create customer profiles to accommodate customer needs. After using their new digital approach, Best Buy stock price increases from $ 23.70 to $ 74 in 7 years time. It proves that using digital communication in traditional businesses is an effective way to gain profit. 

3 Years at Honeywell 

Honeywell is multinational companies that sells electronic appliances. They transform their company into digital business by digitalizing their internal processes such as accounting and warehouse management. They also made data center to fulfill customer needs. Since the digital transformation begin, Honeywell stock price increased from $ 95 per share to $ 174 per share. 

Conclusion 

Commitment to digital transformation and supporting infrastructure will turn lagging stocks into market leaders. While risks are involved, these businesses demonstrate that discovering digital solutions and processes will lead to financial benefits in the long term. 

References: 

Soete, L. (2000). Towards the digital economy: scenarios for business. Telematics and Informatics, 17(3), 199–212. doi:10.1016/s0736-5853(00)00008-3 

https://www.forbes.com/sites/blakemorgan/2019/07/21/7-examples-of-how-digital-transformation-impacted-business-performance/#2ecfbe9151bb