But a lot can change in a year, especially in 2020.

How are these companies faring in the age of COVID-19? Did their digital transformations set them up for success during challenges no one could have predicted? Definitely. Many companies that have invested in digital transformation are performing at record-breaking levels, even during a pandemic and economic downturn.

Best Buy’s
initial digital transformation allowed it to rise from the dead.

When most people had written it off eight years ago, the company was able to completely turn things around by changing from a store that just sold products to a technology advisor for customers with in-home consultations and personalized service. As a result, Best Buy’s stock price increased 198% over seven years.

During a global pandemic, Best Buy continues to perform quite well. With more people working and schooling from home, there’s been a tremendous demand for technology products. Best Buy’s established presence as a technology advisor makes it easy for customers to get the help they need to find the right products and quickly have them delivered. After an initial dip at the beginning of the pandemic, Best Buy’s stock price is now the highest it has been in years.

Digital transformation set the stage for Best Buy to be able to perform even with its stores closed.

Best Buy rolled out virtual consultations and chat to help customers find and use the right technology. As stores reopen, customers can schedule in-person consultations, either by phone, chat or at the store with safety measures. Having the framework in place allowed Best Buy to quickly pivot during the pandemic and stay a trusted retailer.

Target is an often-cited example of digital transformation because it was one of the first big-box stores to make major changes and see huge results.

Target underwent a massive remodeling effort to create stores that blurred the line between brick-and-mortar and e-commerce and build a more engaging shopping experience for customers. It was also one of the first retailers to unveil online ordering and curbside pickup to provide customers with multiple options, long before it became a requirement to stay in business.

Customers have flocked to the flexibility of Target’s online and mobile ordering with options for delivery, shipping and curbside pickup. Target’s digital approach to the supply chain also allowed it to introduce grocery pickup before it was originally planned and capitalize on the huge bump in online grocery ordering.

Target’s stock price is currently at its highest peak in years, surpassing its previous high of last holiday season. Digital sales increased 282% in April alone and have seen steady growth since then. Customers needed a convenient digital solution, and Target has been able to deliver.

Hasbro is one of the original seven companies I highlighted that has not seen success during the COVID-19 pandemic.

Its initial digital transformation began at the end of 2012 when it shifted to a more data-centric strategy that targeted parents instead of kids.

But the strong digital transformation hasn’t stuck around in the last six months. Clearly, something has gone wrong. While Hasbro’s games segment enjoyed a boost from the stay-at-home trend (sales up 11%), sales were hobbled by the fact that many of the physical stores that would otherwise have sold its games either closed for the pandemic or took limited inventory to preserve cash.

After the initial plummet, the price has started to climb, but it is still well below previous levels. Hasbro shows that a digital transformation must cover all aspects of the company. A strategy centered around data analytics only addresses some of the digital issues and can leave holes in other areas.

Home Depot began its digital transformation at just the right time.

In late 2017, the company pledged to invest $11 billion in the next three years to combine and transform its physical and digital shopping experiences to help customers shop online and pick up in store. The move would prove to be prophetic, and the digital tools in place before the pandemic have led to staggering growth.

Home Depot was on the receiving end of a customer surge towards DIY and home improvement projects. With people spending more time at home, DIY projects became a top hobby, leading to huge growth for the company. In the last six months, Home Depot’s e-commerce sales have held steady at levels usually only seen on Black Friday. But customer trends aren’t the sole reason for the company’s success. Because of its digital transformation, Home Depot was able to quickly expand its online ordering and curbside pickup capabilities to drive more sales.

Home Depot’s stock price has seen a
staggering climb as customers could find
what they wanted online and conveniently
pick up in store or curbside.

Its expanded delivery and pickup options connected the supply chain to the digital transformation to smoothly handle logistics. The stock price is now the highest it has ever been by far and is climbing by the day.

Microsoft’s digital transformation initially revolved around a move to cloud networking systems instead of its traditional software- based programs.

The move has been incredibly beneficial in recent years, and especially during COVID-19. With more people working and schooling remotely, Microsoft’s suite of tools has been in high demand. Aided by strong B2B relationships, Microsoft’s stock grew to new record levels. Instead of relying on legacy software, cloud- based systems allow Microsoft B2B customers to keep their businesses moving forward seamlessly as they continue their membership instead of having to upgrade a physical program.

Microsoft has also leveraged its technology to help the public and gain goodwill with a live map tracker of COVID-19 cases and a global skills initiative to help 25 million people around the world learn the skills they need to succeed in the COVID-19 world. Building on its reputation as a trustworthy company has also strengthened relationships and retained customers, even during economic distress.

Nike continues to see strong growth, even as it cuts ties with a number of large retailers.

In fact, the company is doing so well that it can afford to pick and choose which stores carry its products, which leaves most of the sales to come through direct Nike lines and take advantage of its strong digital foundation.

But since that time, the stock price has rallied back up to pre-COVID levels, a rarity in the retail space. Much of that bounce back is due to Nike’s strong digital sales. The company makes it easy for customers to find and buy new shoes and apparel on digital channels. And although major sporting events were cancelled that impacted Nike’s revenue, sales of its activity apps have grown in recent months, leading to higher revenue and more customers.

Nike shows that a digital
transformation is crucial in a volatile
industry like fashion. Creating strong
digital channels to connect with
customers and make sales is crucial to
long-term growth.

In Honeywell’s initial digital transformation, it cut its industrial end markets down to six from eight and focused on data-enhanced, streamlined experiences internally and externally.

Those efforts paid off with the stock price increasing 83% over three years.

But things are different for B2B with COVID-19, and Honeywell faced uncertainty. The stock performed amazingly well in 2019 and has seen a large drop in 2020. Much of that is due to stalled manufacturing, especially in aerospace, which is traditionally one of Honeywell’s biggest areas. However, by sticking to its data-driven strategy, Honeywell has been able to climb back so that its stock price is well on its way to 2019 levels. Much of that is due to being able to pivot to build out its health and personal protection equipment segment—much needed items during

the pandemic. As automotive production increases, Honeywell will continue to see even more growth. A strong digital foundation makes agility easier for large companies like Honeywell.

The COVID-19 pandemic has shown that the future is unpredictable.

No company can have a contingency plan for every possible crisis and scenario, but digital transformation is the next best thing. No matter the industry or size of a company, every business can be improved and fortified by adopting digital solutions and continually updating and evolving their digital offerings. By investing in ongoing digital transformation, companies create capabilities to pivot quickly and continue to serve customers, no matter the circumstances.

• Stay on top of consumer trends. While no one could have predicted the COVID-19 pandemic, having an ear to the ground and paying attention to what customers want and what they will want in the future, helps you stay ahead of the curve and develop digital solutions in areas that will
  be most needed in the future. Stay in constant communication with your customers to discover what matters most to them and how you can meet their needs--even the needs they don’t know they have. Develop a strong data program and leverage that data to understand current and future customers, as well as market trends and competitors.

• Establish your company as an advisor. Customers will always need advice, even if they aren’t ready to make a purchase. Examine your business’s abilities and find areas you can consult customers, especially through digital channels.

• Build out your online and mobile ordering capabilities. Make it as easy as possible for customers to get the products and services they need without setting foot inside a store. Create or expand BOPIS offerings, curbside pickup or delivery with an intuitive and convenient interface and experience.

• Streamline your internal and external offerings. Focus on quality over quantity. Narrow your focus to your most-needed areas, cut the extra items and hone in on what your company can deliver consistently well. A company that doesn’t do as many things but does them digitally and well is more successful than a company that covers a wide swath of products and services but doesn’t have the digital foundation to back it up.

• Expand digital transformation to all areas of the company. To be the most effective, the entire company must use consistent digital solutions. Start in one area to get quick wins and low-hanging fruit, but then expand your digital transformation efforts into other areas to create a cohesive environment.

They key to agility and a successful digital transformation is to start now. These case studies show the power of digital transformation in preparing companies for an unknown future and positioning them for success.

Even after the COVID-19 pandemic, the future is uncertain and volatile. Following in these companies’ footsteps to digital transformation will build a foundation to endure whatever challenges may come. The future is uncertain, but digital transformation puts companies on the right path to withstand whatever comes next.