Top 7 Board/CEO Lessons from the World's Most Successful Digital Transformation

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Top 7 Board/CEO Actions for Digital Transformation: Lessons from the World’s Most Successful Digital Transformation by Love Goel, Chairman & CEO GVG Capital From 2020-30, the digital market share of most industries from retail to health to finance will grow 4-5X. This has unleashed a frenzy across traditional businesses to accelerate digital transformation. Companies globally, from Walmart to Amazon, are chasing the holy grail: to build both the #1 physical and #1 digital businesses in their market. While physical markets still drive 90% of revenues, digital markets drive disproportionately higher shareholder value—creating 7 of the world’s 10 most valuable companies.

Yet, only one company in the world has succeeded in achieving the holy grail—Lojas Americanas, Brazil’s leading retailer, has built both the #1 physical and #1 digital businesses in a large market by outperforming digital giants like Amazon and traditional incumbents like Walmart—and created tens of billions in shareholder value.

From Near Death to #1 in 3 Years Things weren’t always so rosy. Lojas Americanas’ publicly-traded digital affiliate B2W had its own nightmare before Christmas 2011, and was fighting for survival. As sales outgrew capacity, it was being skewered on a daily basis by customers, media and analysts for missing all-important holiday deliveries and poor customer service. B2W had seen its stock price drop 95% and market share decline by 72%. Morgan Stanley projected that its top two competitors, Group Casino and Walmart, would surpass it in revenue by 2013. In 2012, Brazil emerged as the world’s fastest growing eCommerce market—attracting deep-pocketed foreign companies like Amazon, Alibaba, Walmart,

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