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DIGITAL TRANSFORMATION IN THE
TRAVEL INDUSTRY
Amira Roula
hvitravnur.com
TABLE OF CONTENT
INTRODUCTION ...........................................................................................2
Chapter 1: WHAT IS “DIGITAL TRANSFORMATION”? ..................................4
Chapter 2: HOW A COMPANY CAN OPERATE ITS DIGITAL
TRANSFORMATION?..................................................................................10
Chapter 3: WHAT ROLE DOES MARKETING PLAY IN DIGITAL
TRANSFORMATION?..................................................................................18
Chapter 4: FROM DESIGN OF A SERVICE OFFER DESIGN TO ITS
IMPLEMENTATION.....................................................................................24
Chapter 5: DIGITAL TRANSFORMATION: A SOCIAL OR SOCIETAL
TRANSFORMATION?..................................................................................34
CONCLUSION.............................................................................................41
INTRODUCTION
Organizations across the world have had to or will have to respond to the regime
shift that digitalization has entailed for businesses and for every aspect of human life
in the past years. One could describe this development as an unavoidable evolution
in all aspects of business: strategies, business models, delivery processes, marketing,
client interaction – the list goes on.
There are many ways in which to describe digital transformation, from a business
phenomenon to a social one. And when delving into the social dimension, one will
unavoidably encounter the question relating to the societal versus social aspect of
digital transformation.
This e-book will take on a descriptive, research based approach to digital
transformation. Information is gathered from the author’s experience in the IT/Tech
and SaaS sphere, and from evidence based research encountered when working
with this book.
As there are many ways to describe digital transformation, so are there different
ways in which industries are being affected by it. This e-book will be delimited to the
travel industry when cases and examples are brought up, but this book is in many
aspects relevant to all sectors.
The travel industry has seen suppliers in the form of physical travel agencies and
bureaus vanish, as customers’ move to digital platforms when planning and
purchasing travel packages and flight tickets. Customers have stopped seeing their
travel purchase as a mere transaction and holiday event and are now buying
experiences, adventures they can share in social media and remember for years to
come. The industry has moved from being oriented towards supplying flight tickets,
hotel and charter packages to supplying dreams, travel packages encompassing
multiple services and tailoring these to differing customer segments and needs.
– Amira Roula, 2016-12
Chapter 1: WHAT IS “DIGITAL TRANSFORMATION”?
There are many different ways in which to describe digital transformation, though
most would agree that a decent and encompassing description could be the
following:
“Digital transformation is the process of investing in
technological tools and processes, while at the same time
changing the business model and strategy of a firm in order to
adapt it and grow in a digitally oriented society”
In short, digital transformation means changing all aspects of a business in order to
adapt it and prepare it for a world where disruptive technologies and online presence
in all relevant platforms has reshaped the way society works and interacts with itself
and the outside world. It is important at this point of defining digital transformation
that it is an exercise relevant for all firms in all industries, and not only those that in
some way can be said to be “digital companies” or are active in “tech industries”.
Independent of the size of a firm, the nature of its business model or structure –
digital transformation is or will be a matter to explore, if the business is to survive
and grow.
Digital transformation is not only about technological investments, it is essentially a
transformation of a whole organization and line of thought. Failed digital
transformation projects are in large due to a limited set of activities focusing on the
technological aspect. Just as important is the change in business model and
adaptation to agile methodologies instead of the traditional water fall like
processes.
Digital transformation requires a paradigm shift, as it moves a business away from
well-known practices to new albeit possibly well-proven ones in ways that is best
fitted to its profile. Digital transformation then is not only about updating the IT-
fleet of software and hardware, nor about having an online presence. Digital
transformation is the holistic approach of understanding what “online” means, what
digital tools can be used for, how an organization needs to be changed to
dynamically adapt to the current and future paradigm shifts, creating new roles such
as Chief Digital Officer, adapting the business model and strategies to
accommodate new customer behaviors brought about by the changes in the use of
platforms such as mobile phones, tablets and VR-machines.
Other consultancy firms have researched and found their way of describing digital
transformation. The consultancy firm Capgemini in co-operation with MIT have
described digital transformation in a report in the line of being a matter of “digital
maturity”. “Digital maturity” is achieved as described in their report by pursuing
Digital transformation entails thinking and working innovatively and in new
ways. As in introducing VR into the set of marketing tools?
technology-enabled initiatives described as “digital intensity” and leadership
initiatives described as “transformation management intensity”.
The consultancy firm McKinsey describes digital transformation by focusing on two
main factors; cost savings and the customer experience are presented as the main
factors impacting the bottom-line. Hotels and airlines are described as being
particularly exposed by digital disruptions, and the report counts on digital sales
increasing by 50% for these sectors of the travel industry. Other industries said to be
highly affected by digital are mobile communications and retail banking as these
Digital intensity
Transformation
management intensity
Technology-enabled
initiatives in:
- Customer
engagement
- Internal operations
Leadership capabilities
including:
- Vision
- Governance
- Engagement
- IT-Business
Relationships
offer virtual services rather than physical products. McKinsey emphasizes that size
of the resources and the extent of digital transformation should be in line with what
a company needs and can expect to carry out – there is no need to overinvest or
invest in a project that cannot be carried out due to resource constraints.
The figure above visualizes the main concept in the McKinsey report, the one of how
digital transformation can affect a modern company. The steps taken to embark on
a digital transformation project are described as a cycle, with the following points
encompassing the key factors decision making, connectivity, automation and
innovation:
 Customer experience; multichannel communication and connectivity with
the customers 24-hours.
 Product and service innovation; new digital products and services.
 Distribution, marketing and sales; digital marketing and distribution.
 Digital fulfillment; service and administration done digitally.
 Risk optimization; automated risk control and improved customer
targeting.
 Enhanced corporate control; real time management.
Finally, what a successful digital transformation journey is and how long it takes to
execute depends on the company being transformed and which industry it is active
in. There is no one-size fits all recipe that works for all types of organizations, but
there are key elements to follow when digitally transforming a company that are
good to keep in mind. We will delve deeper into how a business can be digitally
transformed in the next chapter.
Chapter 2: HOW A COMPANY CAN OPERATE ITS DIGITAL
TRANSFORMATION?
Where do you start when transforming a business? It can appear to be an
unsurmountable task independent of how much human capital and resources you
have at your disposal. A digital transformation effort starts with taking on a holistic
approach; in terms of customer experience, cross-functional co-operation within the
firm and in terms of who is involved. As with all projects, one starts by having an
inventory of the current situation and mapping how the ideal situation or goal would
look like. Where is the firm now, and where does it need to be in terms of digital
transformation? What is expected of the business given the digital realities of today?
A situation analysis is a good starting point, and would preferably involve key
stakeholders from each division; stakeholders understanding the size and scope of
the work ahead and that are willing to put in the time needed. As will be explored
further in this text, a digital transformation journey is an iterative one and will
require involvement and engagement from the whole organization.
Working top-down only, with C-suite individuals leading change and change projects
will not drive the necessary regime shift needed in a business when executing digital
transformation. What this means in practical terms lies in how a digital
transformation project is designed and how it is carried out. A dedicated, formal and
cross-functional digitalization team or PMO needs to be created as well as
appointing – in the cases it is possible depending on company size and needs – a
Identify a starting point, create a plan and map which tools and resources that
are needed to move ahead. A dynamic map is needed in a digital
transformation journey.
Chief Digital Officer. Such a team would need to be humble and prepared to
experiment its way prior to developing a solid working approach – this is best
achieved by implementing an agile approach to project execution and involvement
of stakeholders representing all aspects of a business (marketing, IT, C-suite
personnel, admin functions, sales, service providers in the firm etc.).
When a PMO or team has been set and the decision to invest in digital
transformation has been made, the next step would be to look at the content of such
a project, and what it should have as a goal and working processes. The main factors
then that needs to be considered when embarking on a digital transformation
journey can be described and summarized by the following points:
Organization & PeopleBusiness Model
Governance, Leadership
& Management
Technological &
Technical Review
Business Activities &
Functions
Processes &
Methodologies
1. Business Model: when re-shaping the business model, customers’ digital
and traditional behavior and preferences need to be analyzed; the result of
such an analysis is vital when setting long term strategies. The services and
products offered today may need to be adapted, dropped or enhanced.
Suppliers need to be reviewed, and delivery points and process as well. Cost
structures and main cost drivers may change, as well as business’s main
value driver once the business model is digitally transformed. New revenue
models may need to be explored, as well as partnership possibilities and
acquisitions.
2. Governance, Leadership and Management: most transformation projects,
whatever the focus may be (e.g. digital, business), fail due to change
resistance in some form. It may be a single department failing to comply, or
single individuals with social influence feeling their position threatened by
the changes being implemented and forced upon them. When digital
transformation is implemented, the governance has to adapt and become
more holistic. Leaders and management also need to act holistically, and
use a well thought out communication plan that involves the whole
business. Management needs to explore the possible threats to digital
transformation and set plans to handle these if and when the risks are
realized. Risk management in other aspects need to be explored. Of course,
governance, leadership and management is tightly connected to the next
factor, organization and people.
3. Organization and People: organizational culture can and will be affected
by a digital transformation, and depending on the organizational structure
and current culture situation in a business – an organizational
transformation may be needed as well. If cross-functionality is not
achieved, if individuals are not dynamic and agile, if the goal of being
digitally literate is not there the digital transformation program will fail. An
ideal organization is customer-centric, meaning that when setting plans,
the customers’ needs are what defines the end goals – of course, incentives
and incentive programs would need to be adapted for changes to happen, a
factor that needs to be considered when revising the governance structure.
Worker empowerment is also important, as changes can be a challenge on
moral – one needs to remember that business is composed to a large extent
by people.
4. Technological and Technical Review: this is a review and mapping of all
applications, systems, hardware and servers in use and how they are
integrated. This is also a review of the digital literacy of a business, and how
data analytics are used across functions – from sales to marketing, to key
investment figures and follow-up. Data analytics need to be changed from
a reporting function only to a dynamic and cross-functional every-day part
of customer mapping and service adaptation. Or to be more specific: from a
reporting oriented function to one focusing on data mining and
continuously responding to the results gained from such activities.
Separating IT-support and incorporating IT in all functions is also important,
as well as having a dedicated digital strategist. Continuous education and
training in forms that are relevant to the business (everything from internal
education, joining industry organizations and externally organized
workshops, conference attendance) are vital in increasing and maintaining
relevant digital literacy. The technical software and hardware base needs to
be updated, and UX (user experience and usability) should be a key and
integral part of all technological projects.
5. Business Activities and Functions: the activities and functions needed in a
business may change, with new ones being created and old removed or
updated. Functions and activities may be HR, admin, customer services and
IT-support. One activity deserving of particular attention is marketing; data
analysis enters the stage, and focus is on being on top of customer
preferences and ever-changing digital and “analog” behaviors. Existing
metrics need to be adapted to this new way of working with customers and
their data. The marketing aspect of the digital transformation journey is
described more in-depth in a separate chapter.
6. Processes and Methodologies: processes employed need to be adapted to
cross-functional practices, and methodologies need to be adapted to agile
ways of working. Divisions such as marketing, IT and Sales start co-
operating and sharing information, and having holistic strategies – with this
we mean that instead of having marketing and sales as separate functions,
you need to set incentives in place for these functions to communicate, co-
operate and having common strategies and goals; such strategies will set a
path for these divisions to follow that is common for them all and will aid
them in their communication and co-operation. RACI models and other
cross-functional tools are necessary to move forward in a dynamic rather
than traditionally static way of working. Internal systems and intranets
move from one-way channels to omni-channels and organized ways of two-
way communication are implemented. In short, processes need to be made
more efficient.
Do note that the points above do not need to be followed linearly and are not
expected to, and furthermore, which points to be followed and the time it takes to
execute them depends on a business’s technological maturity and unique position in
a given market. Also, note that the points above are not exhaustive nor are they
separate – indeed, they are expected to overlap and will most probably do so.
Chapter 3: WHAT ROLE DOES MARKETING PLAY IN
DIGITAL TRANSFORMATION?
The way customers interact with each other and with businesses has fundamentally
changed as a consequence of digital disruptions. In fact, seeing as customer focus is
key in digital transformation, and customer focus is also key in marketing, digital
transformation and marketing transformation are often used interchangeably or
confused. We should keep the two separate however, as our main focus in a
transformation project should always be holistic, and so should it be when
embarking on a digital one.
Marketing has traditionally been focused on a one-way communication with
customers, and has been run as a stand-alone unit. Digital transformation cannot
happen without a shift to viewing marketing as a part of a customer experience that
is based on two-way communication and is largely digitalized. Communication
needs to be omni-channel and not tied to a particular platform (e.g. desktop,
mobile, tablet, paper).
To be successful, marketing needs to cooperate with other divisions and change
enablers within a business. Such divisions could (or should) be sales and customer
success teams. More preferably, the marketing division would be interacting with
the organization as a whole, as a digitalized and data driven marketing division will
Communication needs to be platform independent. Not all customers
read a physical paper in the morning.
need to dissipate and gather data that is created and processed throughout most
units: service/product management and design, IT/tech-support, HR, management.
Customers’ digital and “analog” behavior and preferences need to be mapped. This
is researched via online and social sentiment analysis, as well as mapping how your
customers use social media when using your products and services and how they
communicate it. Data mining and Big Data enter marketing work processes, and
help make marketing efforts more efficient and targeted. There are already easy to
access tools to carry out such analysis (e.g. Google Analytics for websites), but what
is needed for a specific business and how it can and wants to collect data on its
current and future customers.
From a travel industry perspective, marketing will also need to develop customer
loyalty programs that are tailored to how people view their traveling and how it fits
their needs. Tailoring marketing campaigns then does depend to a large extent on
the chosen and desired customer category your business has identified as ideal; that
a customer segmentation exercise has been carried out is of course assumed and
expected.
Besides necessary re-designing of the marketing division to a more data driven one,
it also needs to reconsider its view on customers, as does the organization as a
whole. As described earlier, customer-centricity is a key factor and besides being a
key ingredient in a new strategy and business model, it needs to be seen in the
external communication and how such communication is designed. People –
customers – are expecting a story, a story where they play a central part and are able
to shape the outcome. Marketing campaigns need to tell a compelling story, one
that is then shared and reshaped by those taking part in it. One way of viewing this is
changing the terminology used internally as well as externally: from marketing
campaigns, the marketing unit needs to offer the customers a story. For the travel
industry, this is not only meant in the literal sense but in terms of how the service is
communicated and offered. To take this line of thought from semantics to practical
pointers, the difference in telling a story and creating a traditional marketing
campaign can be described as: interaction. A marketing campaign is “pushed out” to
the client. An interactive campaign on the other hand involves the client in different
ways; from simply prompting them to share a story relating to the one told by the
campaign to having them actually creating the content (creating video content
involving a country symbol relating to an adventure they could win by being involved
in the campaign).
A story told in terms of a journey from thought to travel adventure will vary
depending on if the targeted audience are students with poor incomes wanting to
explore the world versus a business professional traveling long hours to work related
activities and destination.
Based on the above then, to digitally transform a marketing division into a digitally
transformed organization, the following factors need to be in place:
 Customer experience
 Omni-channels and platform independent communication
 Mapping the customer journey; from need to buying a service or product
 Customer loyalty
In summary, dynamic client interaction and tailoring customer experiences are the
new way forward for a digitally transformed marketing team.
Chapter 4: FROM DESIGN OF A SERVICE OFFER TO ITS
IMPLEMENTATION
A service offer tailored to fit in a digitally transformed business will find its
foundation in the new processes, marketing, IT and Sales methodologies it has
created. The travel industry has already seen the first wave of digital transformation,
where we have seen travel agencies worldwide give way for self-directed online
booking.
Digital transformation has also offered new ways for the travel industry to reach its
clients, and with the vast data these agencies have via bookings and social media
channels using data mining, they are at a position to design whole new packages
and dream vacations tailored to the particular needs of their customers.
The changes ahead for the industry are many and long-term; it will be a long journey
ahead and possibly rocky for those that are too slow to adapt. The winners in the
technology regime shift in the travel industry have clearly been the online travel
agencies and low-cost fare companies. Data drives revenue now, and cloud is the
new working place and channel – data needs to be collected, analyzed and stored
and agile methodologies used to adapt the ever-changing habits of customers and
increased data levels.
Millennials are more active via their mobiles than ever, and the data they share from
their travels is a large treasure-grove of information in regards to what customers
prefer to do while on vacation and traveling in general. They also share their
experiences online, and a bad review can leave a permanent speck in an otherwise
well managed and positive track record of a company. People in general expect
more, and can find the information they need without much effort. They expect
service 24-hours, instantly and in all platforms relevant to them.
Aside from the challenges – and opportunities – pointed to above, the travel
industry faces competition from the sharing economy in the form of hospitality
services such as Airbnb and Couchsurfers. Start-ups offering specific functionalities
and to a low cost will unavoidably compete with the tailored packages offered by
their travel agency peers. Aside from being competitors, certain start-ups and tech
Customers want an adventure, not a hotel room or a flight ticket. Tell a
story, not one of prices and hotel rating but one of undiscovered treasures.
firms can turn out to be possible partners – a firm offering certain functionalities
traditionally not offered in the industry can offer a value-added future to the dream
vacation; the upside for the start-up is the vaster possibilities in a large firm to reach
out with their apps and services.
A case based on the travel industry could be one of a small, local firm adapting to
increased competition from low-fare agencies and start-ups offering tailored
services oriented towards specific services and products that fall under the travel
and experience sector.
As travel fare costs go ever lower, cost control is of course key. We will not consider
the cost cutting aspect too much in this as that is outside of the main scope of this
book, but mention certain aspect to possibly delve into. Actions that a local travel
agency could do in a situation of lower fares, other than going lower, is to look at its
offering and the functionalities it currently has and can offer. In terms of digital
transformation, it is key at this point to have proper data mining capabilities to map
customer data, and tailor packages that are more attractive to each particular
customer then the possibly cheaper but less tailored offer elsewhere.
The firm also needs to have the proper presence in the relevant media and platform
the targeted customer segment uses in the multi-step journey that leads to a buying
decision regarding vacation or travel. If the local travel agency in question has
segmented its customers well, and knows who it is targeting after a thorough
analysis of data, that would naturally lead to a second step of asking one-self: “Are
we present in the right places?”. If your customers are mainly locally based families
wanting to travel on vacation to warmer areas, families who base their buying
decisions via printed family magazines and travel guide apps, then this is where the
company needs to be. And it needs to be present via these platforms and media
telling a story that is attractive to the targeted customer segment.
Though a smaller, local travel agency is not expected to have a large digital capacity,
focus is on the resources at hand – marketing working with sales, the C-suit and IT to
create a digital platform from which the digital transformation needs to take speed.
The company in question notes it communicates mainly via newsletters in a non-
continuous manner (e.g. no follow-up or targeted material based on e.g. customer
birthdays, customer’s latest travel activities), it will need to find a way to activate
itself in the relevant platforms; if the newsletters only end up in the trash bin, they
are of no use. If they are targeted given the vast set of customer data, it is a start
along with establishing relevant follow-up metrics.
Being innovative is key further down along the digital transformation path, and once
the main structure is there new ideas are needed. The local firm in our example
happens to also own hotels in relevant markets and decides to try marketing these
out via VR (Virtual Reality) experiences, where customers can see their future living
quarters without leaving the comfort of where they currently are, and without
having to take a gamble on the quality of the hotel they are booking. Knowing their
clients, the firm offers information and guidance through the customers’ journey
and helps them navigate and find new activities, restaurants etc.
The customer is continuously updated, prior to the journey even being booked.
Being a small and local player, the example company enjoys the opportunity the
“adventure and experience” based travel trend offers; one of individuals willing to
travel to new places in order to explore originality, something a local firm with a
local sensation to offer can draw advantage from.
What undiscovered places and experiences can you offer your
customers?
Going from fictional to a real-life case, we move on to considering the one of Airbnb.
This is a start-up that, in the wake of the Couchsurfurs phenomena, has challenged
the hotel industry and in some cases lead to judicial proceedings in the countries it is
operating in (e.g. the UK). The interesting aspect regarding the Airbnb case from a
digital transformation aspect can be described as:
 The sharing economy: Airbnb is a clear-cut case of a firm gaining traction
from the popularity of the sharing economy. Individuals rent out their
houses, rooms, summer houses and similar living quarters to strangers.
Airbnb acts as a middle hand and facilitator in this process, offering a SaaS
(Software as a Service) in which individuals post reviews (in order to secure
quality in the living quarters they rent), transactions are made and legal
terms are settles regarding renting period, price etc.
 99% digital: the platform is a SaaS as mentioned in the point above, and
the service per say is digital, though of course the “hotel like” offer of living
quarters itself still remains a manual matter in some or at least one aspect:
the issue of handing out keys (for those still using real keys instead of digital
entry chips).
 “One-function offer”: Airbnb does not offer anything else then the
platform in which its clients find and offer living quarters. Despite this one-
offer business model, or possibly thanks to this Airbnb has become a big
player and large competitor to traditional housing for travelers such as
hotels and Bed-and-Breakfast businesses.
The Airbnb case, to summarize, is a good example of a successful one-offer deal in
the travel industry and a product of the digital transformation of this sector.
Furthermore, Airbnb is a good example of a firm that, in a relatively early stage of its
development, is a possible venture partner or possible candidate firm to acquire.
Chapter 5: DIGITAL TRANSFORMATION: A SOCIAL OR
SOCIETAL TRANSFORMATION?
It is a difficult-to-answer question, that of whether the egg or the chicken came first.
So is the question regarding whether digital transformation is one of a social change
or societal one. Whether this question can be fully and correctly answered remains a
matter of debate. What we can see however is that this regime shift follows other,
equally important shifts in society and its inner workings. We can also state that
digital change started out as a digital disruption.
Disruption is a term used in business context to describe when an industry is
challenged by new players with new ways of doing business, when business models
and well-known work processes become obsolete due to newcomers. Disruption is
simply a term used to speak of the collective challenges faced by new ways of doing
business. In the context of digital disruption, it is meant to describe the start-ups and
newcomers who have mastered new digital business processes and themselves
possibly being the creators of these. These newcomers have also caused changes in
customer behavior, or adapted to them more quickly than traditional firms. We can
expect much more to come in terms of disruptive technologies; we have yet to seen
the true power of Artificial Intelligence (AI) in everyday life functions and the
Internet-of-Things (IoT) has yet to truly insert itself in peoples’ lives. Digital
transformation then, is the adaptation to the realities brought about by digital
disruption now and in the future.
Digital transformation then, as a consequence of disruption, can also be used to
describe the changes in the way we use technology in our everyday life. We use our
technological tools in ways we have not done before, making certain services and
products completely obsolete. These changes have also made the way we interact
witch each other to evolve and lead to cultural and governmental changes.
Artificial Intelligence (AI), machine learning, the Internet of Things (IoT) and
robots. The main theme is digital disruption, and we will see more disruptions in
the time to come.
From products being mechanical machines used for very specific purposes, they are
becoming interconnected. The internet of things (IoT) is a term used to describe the
interconnection of physical products using the internet; it can be everything from a
refrigerator letting you know the milk is getting sour using built in sensors, to your
gym wear storing biometric data in your smart phone, summarizing your training
session in a heartbeat. This interconnectedness of products and constant interaction
with them will most probably have a further and more profound effect socially and
on society then we currently can fathom or plan for. The societal challenges will also
prove to be larger than we can imagine today, as our way of working, travelling,
eating and communicating will change – when we start paying with a chip installed
in the cuff of our coats, when our sport watches become our new medical analysts
and mayhap doctors, when deliveries are done via drones to your window as the
refrigerator has warned of low stock of fruit. There will come a day when people stop
making the distinction between online and offline, physical or virtual.
A societal rather than socially induced change brought about by the digital
revolution is a governmental one. Schools for example are changing their working
methods by introducing tablets into the classroom, as well as “gamifying” classes;
the use of the game Minecraft in teaching is a good example of this phenomena.
Governments are creating digital ministries and digital strategies, ministries and
strategies involved in everything from building so called “Smart Cities” to e-
Healthcare plans, to plans regarding offering broadband to all citizens. These
changes reflect well the changes seen in businesses undertaking a digital
transformation plan.
The social changes following these digitally induced societal changes are seen in our
everyday interactions. Our possibilities to interact with the world have opened
greatly, making it quite easy for anybody to say pretty much what they wish to the
whole, listening world. The personal brand has become a “thing”, with selfies and
movies from everyday life replacing the mundane, secret diary of old. We plan and
market our events via social media, as well as letting the world know about our
The mobile app game “Pokémon Go” is based on augmented reality, e.g. the
app using an image from reality and putting a virtual layer on top of it. Will
we see augmented reality in cafés, schools and road signs when using our
smartphones? This is already done in certain businesses.
positive and less so positive experiences from work as well as the latest restaurant
experience.
We can continue to debate whether it is social change that bring about societal
changes or the other way around; social changes do have a history of following
societal changes and simultaneously changes these in turn. The answer could be a
simple one: digital transformation is both social and societal transformation taking
place in tandem.
CONCLUSION
We have given a definition of digital transformation, and set in a travel industry
setting. We have also defined ways in which to transform a business, challenges and
opportunities to be expected and how to handle these.
However and in whatever business a digital transformation journey begins, the main
factors to consider – independently of which sector is in question – are:
The resources put into a digital transformation project depend on the needs and
means of a business. And lastly, the success of a digital investment is always in the
Organization & PeopleBusiness Model
Governance, Leadership
& Management
Technological &
Technical Review
Business Activities &
Functions
Processes &
Methodologies
details, and though the focus may shift between the factors described above they
need to be considered even if they are not applicable or used going ahead.
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Digital transformation in the travel industry

  • 1. DIGITAL TRANSFORMATION IN THE TRAVEL INDUSTRY Amira Roula hvitravnur.com
  • 2. TABLE OF CONTENT INTRODUCTION ...........................................................................................2 Chapter 1: WHAT IS “DIGITAL TRANSFORMATION”? ..................................4 Chapter 2: HOW A COMPANY CAN OPERATE ITS DIGITAL TRANSFORMATION?..................................................................................10 Chapter 3: WHAT ROLE DOES MARKETING PLAY IN DIGITAL TRANSFORMATION?..................................................................................18 Chapter 4: FROM DESIGN OF A SERVICE OFFER DESIGN TO ITS IMPLEMENTATION.....................................................................................24 Chapter 5: DIGITAL TRANSFORMATION: A SOCIAL OR SOCIETAL TRANSFORMATION?..................................................................................34 CONCLUSION.............................................................................................41
  • 3. INTRODUCTION Organizations across the world have had to or will have to respond to the regime shift that digitalization has entailed for businesses and for every aspect of human life in the past years. One could describe this development as an unavoidable evolution in all aspects of business: strategies, business models, delivery processes, marketing, client interaction – the list goes on. There are many ways in which to describe digital transformation, from a business phenomenon to a social one. And when delving into the social dimension, one will unavoidably encounter the question relating to the societal versus social aspect of digital transformation. This e-book will take on a descriptive, research based approach to digital transformation. Information is gathered from the author’s experience in the IT/Tech and SaaS sphere, and from evidence based research encountered when working with this book.
  • 4. As there are many ways to describe digital transformation, so are there different ways in which industries are being affected by it. This e-book will be delimited to the travel industry when cases and examples are brought up, but this book is in many aspects relevant to all sectors. The travel industry has seen suppliers in the form of physical travel agencies and bureaus vanish, as customers’ move to digital platforms when planning and purchasing travel packages and flight tickets. Customers have stopped seeing their travel purchase as a mere transaction and holiday event and are now buying experiences, adventures they can share in social media and remember for years to come. The industry has moved from being oriented towards supplying flight tickets, hotel and charter packages to supplying dreams, travel packages encompassing multiple services and tailoring these to differing customer segments and needs. – Amira Roula, 2016-12
  • 5. Chapter 1: WHAT IS “DIGITAL TRANSFORMATION”? There are many different ways in which to describe digital transformation, though most would agree that a decent and encompassing description could be the following: “Digital transformation is the process of investing in technological tools and processes, while at the same time changing the business model and strategy of a firm in order to adapt it and grow in a digitally oriented society” In short, digital transformation means changing all aspects of a business in order to adapt it and prepare it for a world where disruptive technologies and online presence in all relevant platforms has reshaped the way society works and interacts with itself and the outside world. It is important at this point of defining digital transformation that it is an exercise relevant for all firms in all industries, and not only those that in some way can be said to be “digital companies” or are active in “tech industries”. Independent of the size of a firm, the nature of its business model or structure –
  • 6. digital transformation is or will be a matter to explore, if the business is to survive and grow. Digital transformation is not only about technological investments, it is essentially a transformation of a whole organization and line of thought. Failed digital transformation projects are in large due to a limited set of activities focusing on the technological aspect. Just as important is the change in business model and adaptation to agile methodologies instead of the traditional water fall like processes. Digital transformation requires a paradigm shift, as it moves a business away from well-known practices to new albeit possibly well-proven ones in ways that is best fitted to its profile. Digital transformation then is not only about updating the IT- fleet of software and hardware, nor about having an online presence. Digital transformation is the holistic approach of understanding what “online” means, what digital tools can be used for, how an organization needs to be changed to dynamically adapt to the current and future paradigm shifts, creating new roles such as Chief Digital Officer, adapting the business model and strategies to
  • 7. accommodate new customer behaviors brought about by the changes in the use of platforms such as mobile phones, tablets and VR-machines. Other consultancy firms have researched and found their way of describing digital transformation. The consultancy firm Capgemini in co-operation with MIT have described digital transformation in a report in the line of being a matter of “digital maturity”. “Digital maturity” is achieved as described in their report by pursuing Digital transformation entails thinking and working innovatively and in new ways. As in introducing VR into the set of marketing tools?
  • 8. technology-enabled initiatives described as “digital intensity” and leadership initiatives described as “transformation management intensity”. The consultancy firm McKinsey describes digital transformation by focusing on two main factors; cost savings and the customer experience are presented as the main factors impacting the bottom-line. Hotels and airlines are described as being particularly exposed by digital disruptions, and the report counts on digital sales increasing by 50% for these sectors of the travel industry. Other industries said to be highly affected by digital are mobile communications and retail banking as these Digital intensity Transformation management intensity Technology-enabled initiatives in: - Customer engagement - Internal operations Leadership capabilities including: - Vision - Governance - Engagement - IT-Business Relationships
  • 9. offer virtual services rather than physical products. McKinsey emphasizes that size of the resources and the extent of digital transformation should be in line with what a company needs and can expect to carry out – there is no need to overinvest or invest in a project that cannot be carried out due to resource constraints. The figure above visualizes the main concept in the McKinsey report, the one of how digital transformation can affect a modern company. The steps taken to embark on a digital transformation project are described as a cycle, with the following points
  • 10. encompassing the key factors decision making, connectivity, automation and innovation:  Customer experience; multichannel communication and connectivity with the customers 24-hours.  Product and service innovation; new digital products and services.  Distribution, marketing and sales; digital marketing and distribution.  Digital fulfillment; service and administration done digitally.  Risk optimization; automated risk control and improved customer targeting.  Enhanced corporate control; real time management. Finally, what a successful digital transformation journey is and how long it takes to execute depends on the company being transformed and which industry it is active in. There is no one-size fits all recipe that works for all types of organizations, but there are key elements to follow when digitally transforming a company that are good to keep in mind. We will delve deeper into how a business can be digitally transformed in the next chapter.
  • 11. Chapter 2: HOW A COMPANY CAN OPERATE ITS DIGITAL TRANSFORMATION? Where do you start when transforming a business? It can appear to be an unsurmountable task independent of how much human capital and resources you have at your disposal. A digital transformation effort starts with taking on a holistic approach; in terms of customer experience, cross-functional co-operation within the firm and in terms of who is involved. As with all projects, one starts by having an inventory of the current situation and mapping how the ideal situation or goal would look like. Where is the firm now, and where does it need to be in terms of digital transformation? What is expected of the business given the digital realities of today? A situation analysis is a good starting point, and would preferably involve key stakeholders from each division; stakeholders understanding the size and scope of the work ahead and that are willing to put in the time needed. As will be explored further in this text, a digital transformation journey is an iterative one and will require involvement and engagement from the whole organization.
  • 12. Working top-down only, with C-suite individuals leading change and change projects will not drive the necessary regime shift needed in a business when executing digital transformation. What this means in practical terms lies in how a digital transformation project is designed and how it is carried out. A dedicated, formal and cross-functional digitalization team or PMO needs to be created as well as appointing – in the cases it is possible depending on company size and needs – a Identify a starting point, create a plan and map which tools and resources that are needed to move ahead. A dynamic map is needed in a digital transformation journey.
  • 13. Chief Digital Officer. Such a team would need to be humble and prepared to experiment its way prior to developing a solid working approach – this is best achieved by implementing an agile approach to project execution and involvement of stakeholders representing all aspects of a business (marketing, IT, C-suite personnel, admin functions, sales, service providers in the firm etc.). When a PMO or team has been set and the decision to invest in digital transformation has been made, the next step would be to look at the content of such a project, and what it should have as a goal and working processes. The main factors then that needs to be considered when embarking on a digital transformation journey can be described and summarized by the following points: Organization & PeopleBusiness Model Governance, Leadership & Management Technological & Technical Review Business Activities & Functions Processes & Methodologies
  • 14. 1. Business Model: when re-shaping the business model, customers’ digital and traditional behavior and preferences need to be analyzed; the result of such an analysis is vital when setting long term strategies. The services and products offered today may need to be adapted, dropped or enhanced. Suppliers need to be reviewed, and delivery points and process as well. Cost structures and main cost drivers may change, as well as business’s main value driver once the business model is digitally transformed. New revenue models may need to be explored, as well as partnership possibilities and acquisitions. 2. Governance, Leadership and Management: most transformation projects, whatever the focus may be (e.g. digital, business), fail due to change resistance in some form. It may be a single department failing to comply, or single individuals with social influence feeling their position threatened by the changes being implemented and forced upon them. When digital transformation is implemented, the governance has to adapt and become more holistic. Leaders and management also need to act holistically, and
  • 15. use a well thought out communication plan that involves the whole business. Management needs to explore the possible threats to digital transformation and set plans to handle these if and when the risks are realized. Risk management in other aspects need to be explored. Of course, governance, leadership and management is tightly connected to the next factor, organization and people. 3. Organization and People: organizational culture can and will be affected by a digital transformation, and depending on the organizational structure and current culture situation in a business – an organizational transformation may be needed as well. If cross-functionality is not achieved, if individuals are not dynamic and agile, if the goal of being digitally literate is not there the digital transformation program will fail. An ideal organization is customer-centric, meaning that when setting plans, the customers’ needs are what defines the end goals – of course, incentives and incentive programs would need to be adapted for changes to happen, a factor that needs to be considered when revising the governance structure. Worker empowerment is also important, as changes can be a challenge on
  • 16. moral – one needs to remember that business is composed to a large extent by people. 4. Technological and Technical Review: this is a review and mapping of all applications, systems, hardware and servers in use and how they are integrated. This is also a review of the digital literacy of a business, and how data analytics are used across functions – from sales to marketing, to key investment figures and follow-up. Data analytics need to be changed from a reporting function only to a dynamic and cross-functional every-day part of customer mapping and service adaptation. Or to be more specific: from a reporting oriented function to one focusing on data mining and continuously responding to the results gained from such activities. Separating IT-support and incorporating IT in all functions is also important, as well as having a dedicated digital strategist. Continuous education and training in forms that are relevant to the business (everything from internal education, joining industry organizations and externally organized workshops, conference attendance) are vital in increasing and maintaining relevant digital literacy. The technical software and hardware base needs to
  • 17. be updated, and UX (user experience and usability) should be a key and integral part of all technological projects. 5. Business Activities and Functions: the activities and functions needed in a business may change, with new ones being created and old removed or updated. Functions and activities may be HR, admin, customer services and IT-support. One activity deserving of particular attention is marketing; data analysis enters the stage, and focus is on being on top of customer preferences and ever-changing digital and “analog” behaviors. Existing metrics need to be adapted to this new way of working with customers and their data. The marketing aspect of the digital transformation journey is described more in-depth in a separate chapter. 6. Processes and Methodologies: processes employed need to be adapted to cross-functional practices, and methodologies need to be adapted to agile ways of working. Divisions such as marketing, IT and Sales start co- operating and sharing information, and having holistic strategies – with this we mean that instead of having marketing and sales as separate functions,
  • 18. you need to set incentives in place for these functions to communicate, co- operate and having common strategies and goals; such strategies will set a path for these divisions to follow that is common for them all and will aid them in their communication and co-operation. RACI models and other cross-functional tools are necessary to move forward in a dynamic rather than traditionally static way of working. Internal systems and intranets move from one-way channels to omni-channels and organized ways of two- way communication are implemented. In short, processes need to be made more efficient. Do note that the points above do not need to be followed linearly and are not expected to, and furthermore, which points to be followed and the time it takes to execute them depends on a business’s technological maturity and unique position in a given market. Also, note that the points above are not exhaustive nor are they separate – indeed, they are expected to overlap and will most probably do so.
  • 19. Chapter 3: WHAT ROLE DOES MARKETING PLAY IN DIGITAL TRANSFORMATION? The way customers interact with each other and with businesses has fundamentally changed as a consequence of digital disruptions. In fact, seeing as customer focus is key in digital transformation, and customer focus is also key in marketing, digital transformation and marketing transformation are often used interchangeably or confused. We should keep the two separate however, as our main focus in a transformation project should always be holistic, and so should it be when embarking on a digital one. Marketing has traditionally been focused on a one-way communication with customers, and has been run as a stand-alone unit. Digital transformation cannot happen without a shift to viewing marketing as a part of a customer experience that is based on two-way communication and is largely digitalized. Communication needs to be omni-channel and not tied to a particular platform (e.g. desktop, mobile, tablet, paper).
  • 20. To be successful, marketing needs to cooperate with other divisions and change enablers within a business. Such divisions could (or should) be sales and customer success teams. More preferably, the marketing division would be interacting with the organization as a whole, as a digitalized and data driven marketing division will Communication needs to be platform independent. Not all customers read a physical paper in the morning.
  • 21. need to dissipate and gather data that is created and processed throughout most units: service/product management and design, IT/tech-support, HR, management. Customers’ digital and “analog” behavior and preferences need to be mapped. This is researched via online and social sentiment analysis, as well as mapping how your customers use social media when using your products and services and how they communicate it. Data mining and Big Data enter marketing work processes, and help make marketing efforts more efficient and targeted. There are already easy to access tools to carry out such analysis (e.g. Google Analytics for websites), but what is needed for a specific business and how it can and wants to collect data on its current and future customers. From a travel industry perspective, marketing will also need to develop customer loyalty programs that are tailored to how people view their traveling and how it fits their needs. Tailoring marketing campaigns then does depend to a large extent on the chosen and desired customer category your business has identified as ideal; that
  • 22. a customer segmentation exercise has been carried out is of course assumed and expected. Besides necessary re-designing of the marketing division to a more data driven one, it also needs to reconsider its view on customers, as does the organization as a whole. As described earlier, customer-centricity is a key factor and besides being a key ingredient in a new strategy and business model, it needs to be seen in the external communication and how such communication is designed. People – customers – are expecting a story, a story where they play a central part and are able to shape the outcome. Marketing campaigns need to tell a compelling story, one that is then shared and reshaped by those taking part in it. One way of viewing this is changing the terminology used internally as well as externally: from marketing campaigns, the marketing unit needs to offer the customers a story. For the travel industry, this is not only meant in the literal sense but in terms of how the service is communicated and offered. To take this line of thought from semantics to practical pointers, the difference in telling a story and creating a traditional marketing campaign can be described as: interaction. A marketing campaign is “pushed out” to the client. An interactive campaign on the other hand involves the client in different
  • 23. ways; from simply prompting them to share a story relating to the one told by the campaign to having them actually creating the content (creating video content involving a country symbol relating to an adventure they could win by being involved in the campaign). A story told in terms of a journey from thought to travel adventure will vary depending on if the targeted audience are students with poor incomes wanting to explore the world versus a business professional traveling long hours to work related activities and destination. Based on the above then, to digitally transform a marketing division into a digitally transformed organization, the following factors need to be in place:  Customer experience  Omni-channels and platform independent communication  Mapping the customer journey; from need to buying a service or product  Customer loyalty
  • 24. In summary, dynamic client interaction and tailoring customer experiences are the new way forward for a digitally transformed marketing team.
  • 25. Chapter 4: FROM DESIGN OF A SERVICE OFFER TO ITS IMPLEMENTATION A service offer tailored to fit in a digitally transformed business will find its foundation in the new processes, marketing, IT and Sales methodologies it has created. The travel industry has already seen the first wave of digital transformation, where we have seen travel agencies worldwide give way for self-directed online booking. Digital transformation has also offered new ways for the travel industry to reach its clients, and with the vast data these agencies have via bookings and social media channels using data mining, they are at a position to design whole new packages and dream vacations tailored to the particular needs of their customers. The changes ahead for the industry are many and long-term; it will be a long journey ahead and possibly rocky for those that are too slow to adapt. The winners in the technology regime shift in the travel industry have clearly been the online travel agencies and low-cost fare companies. Data drives revenue now, and cloud is the
  • 26. new working place and channel – data needs to be collected, analyzed and stored and agile methodologies used to adapt the ever-changing habits of customers and increased data levels. Millennials are more active via their mobiles than ever, and the data they share from their travels is a large treasure-grove of information in regards to what customers prefer to do while on vacation and traveling in general. They also share their experiences online, and a bad review can leave a permanent speck in an otherwise well managed and positive track record of a company. People in general expect more, and can find the information they need without much effort. They expect service 24-hours, instantly and in all platforms relevant to them.
  • 27. Aside from the challenges – and opportunities – pointed to above, the travel industry faces competition from the sharing economy in the form of hospitality services such as Airbnb and Couchsurfers. Start-ups offering specific functionalities and to a low cost will unavoidably compete with the tailored packages offered by their travel agency peers. Aside from being competitors, certain start-ups and tech Customers want an adventure, not a hotel room or a flight ticket. Tell a story, not one of prices and hotel rating but one of undiscovered treasures.
  • 28. firms can turn out to be possible partners – a firm offering certain functionalities traditionally not offered in the industry can offer a value-added future to the dream vacation; the upside for the start-up is the vaster possibilities in a large firm to reach out with their apps and services. A case based on the travel industry could be one of a small, local firm adapting to increased competition from low-fare agencies and start-ups offering tailored services oriented towards specific services and products that fall under the travel and experience sector. As travel fare costs go ever lower, cost control is of course key. We will not consider the cost cutting aspect too much in this as that is outside of the main scope of this book, but mention certain aspect to possibly delve into. Actions that a local travel agency could do in a situation of lower fares, other than going lower, is to look at its offering and the functionalities it currently has and can offer. In terms of digital transformation, it is key at this point to have proper data mining capabilities to map
  • 29. customer data, and tailor packages that are more attractive to each particular customer then the possibly cheaper but less tailored offer elsewhere. The firm also needs to have the proper presence in the relevant media and platform the targeted customer segment uses in the multi-step journey that leads to a buying decision regarding vacation or travel. If the local travel agency in question has segmented its customers well, and knows who it is targeting after a thorough analysis of data, that would naturally lead to a second step of asking one-self: “Are we present in the right places?”. If your customers are mainly locally based families wanting to travel on vacation to warmer areas, families who base their buying decisions via printed family magazines and travel guide apps, then this is where the company needs to be. And it needs to be present via these platforms and media telling a story that is attractive to the targeted customer segment. Though a smaller, local travel agency is not expected to have a large digital capacity, focus is on the resources at hand – marketing working with sales, the C-suit and IT to create a digital platform from which the digital transformation needs to take speed.
  • 30. The company in question notes it communicates mainly via newsletters in a non- continuous manner (e.g. no follow-up or targeted material based on e.g. customer birthdays, customer’s latest travel activities), it will need to find a way to activate itself in the relevant platforms; if the newsletters only end up in the trash bin, they are of no use. If they are targeted given the vast set of customer data, it is a start along with establishing relevant follow-up metrics. Being innovative is key further down along the digital transformation path, and once the main structure is there new ideas are needed. The local firm in our example happens to also own hotels in relevant markets and decides to try marketing these out via VR (Virtual Reality) experiences, where customers can see their future living quarters without leaving the comfort of where they currently are, and without having to take a gamble on the quality of the hotel they are booking. Knowing their clients, the firm offers information and guidance through the customers’ journey and helps them navigate and find new activities, restaurants etc.
  • 31. The customer is continuously updated, prior to the journey even being booked. Being a small and local player, the example company enjoys the opportunity the “adventure and experience” based travel trend offers; one of individuals willing to travel to new places in order to explore originality, something a local firm with a local sensation to offer can draw advantage from. What undiscovered places and experiences can you offer your customers?
  • 32. Going from fictional to a real-life case, we move on to considering the one of Airbnb. This is a start-up that, in the wake of the Couchsurfurs phenomena, has challenged the hotel industry and in some cases lead to judicial proceedings in the countries it is operating in (e.g. the UK). The interesting aspect regarding the Airbnb case from a digital transformation aspect can be described as:  The sharing economy: Airbnb is a clear-cut case of a firm gaining traction from the popularity of the sharing economy. Individuals rent out their houses, rooms, summer houses and similar living quarters to strangers. Airbnb acts as a middle hand and facilitator in this process, offering a SaaS (Software as a Service) in which individuals post reviews (in order to secure quality in the living quarters they rent), transactions are made and legal terms are settles regarding renting period, price etc.
  • 33.  99% digital: the platform is a SaaS as mentioned in the point above, and the service per say is digital, though of course the “hotel like” offer of living quarters itself still remains a manual matter in some or at least one aspect: the issue of handing out keys (for those still using real keys instead of digital entry chips).  “One-function offer”: Airbnb does not offer anything else then the platform in which its clients find and offer living quarters. Despite this one- offer business model, or possibly thanks to this Airbnb has become a big player and large competitor to traditional housing for travelers such as hotels and Bed-and-Breakfast businesses.
  • 34. The Airbnb case, to summarize, is a good example of a successful one-offer deal in the travel industry and a product of the digital transformation of this sector. Furthermore, Airbnb is a good example of a firm that, in a relatively early stage of its development, is a possible venture partner or possible candidate firm to acquire.
  • 35. Chapter 5: DIGITAL TRANSFORMATION: A SOCIAL OR SOCIETAL TRANSFORMATION? It is a difficult-to-answer question, that of whether the egg or the chicken came first. So is the question regarding whether digital transformation is one of a social change or societal one. Whether this question can be fully and correctly answered remains a matter of debate. What we can see however is that this regime shift follows other, equally important shifts in society and its inner workings. We can also state that digital change started out as a digital disruption.
  • 36. Disruption is a term used in business context to describe when an industry is challenged by new players with new ways of doing business, when business models and well-known work processes become obsolete due to newcomers. Disruption is simply a term used to speak of the collective challenges faced by new ways of doing business. In the context of digital disruption, it is meant to describe the start-ups and newcomers who have mastered new digital business processes and themselves possibly being the creators of these. These newcomers have also caused changes in customer behavior, or adapted to them more quickly than traditional firms. We can expect much more to come in terms of disruptive technologies; we have yet to seen the true power of Artificial Intelligence (AI) in everyday life functions and the Internet-of-Things (IoT) has yet to truly insert itself in peoples’ lives. Digital transformation then, is the adaptation to the realities brought about by digital disruption now and in the future.
  • 37. Digital transformation then, as a consequence of disruption, can also be used to describe the changes in the way we use technology in our everyday life. We use our technological tools in ways we have not done before, making certain services and products completely obsolete. These changes have also made the way we interact witch each other to evolve and lead to cultural and governmental changes. Artificial Intelligence (AI), machine learning, the Internet of Things (IoT) and robots. The main theme is digital disruption, and we will see more disruptions in the time to come.
  • 38. From products being mechanical machines used for very specific purposes, they are becoming interconnected. The internet of things (IoT) is a term used to describe the interconnection of physical products using the internet; it can be everything from a refrigerator letting you know the milk is getting sour using built in sensors, to your gym wear storing biometric data in your smart phone, summarizing your training session in a heartbeat. This interconnectedness of products and constant interaction with them will most probably have a further and more profound effect socially and on society then we currently can fathom or plan for. The societal challenges will also prove to be larger than we can imagine today, as our way of working, travelling, eating and communicating will change – when we start paying with a chip installed in the cuff of our coats, when our sport watches become our new medical analysts and mayhap doctors, when deliveries are done via drones to your window as the refrigerator has warned of low stock of fruit. There will come a day when people stop making the distinction between online and offline, physical or virtual. A societal rather than socially induced change brought about by the digital revolution is a governmental one. Schools for example are changing their working methods by introducing tablets into the classroom, as well as “gamifying” classes;
  • 39. the use of the game Minecraft in teaching is a good example of this phenomena. Governments are creating digital ministries and digital strategies, ministries and strategies involved in everything from building so called “Smart Cities” to e- Healthcare plans, to plans regarding offering broadband to all citizens. These changes reflect well the changes seen in businesses undertaking a digital transformation plan.
  • 40. The social changes following these digitally induced societal changes are seen in our everyday interactions. Our possibilities to interact with the world have opened greatly, making it quite easy for anybody to say pretty much what they wish to the whole, listening world. The personal brand has become a “thing”, with selfies and movies from everyday life replacing the mundane, secret diary of old. We plan and market our events via social media, as well as letting the world know about our The mobile app game “Pokémon Go” is based on augmented reality, e.g. the app using an image from reality and putting a virtual layer on top of it. Will we see augmented reality in cafés, schools and road signs when using our smartphones? This is already done in certain businesses.
  • 41. positive and less so positive experiences from work as well as the latest restaurant experience. We can continue to debate whether it is social change that bring about societal changes or the other way around; social changes do have a history of following societal changes and simultaneously changes these in turn. The answer could be a simple one: digital transformation is both social and societal transformation taking place in tandem.
  • 42. CONCLUSION We have given a definition of digital transformation, and set in a travel industry setting. We have also defined ways in which to transform a business, challenges and opportunities to be expected and how to handle these. However and in whatever business a digital transformation journey begins, the main factors to consider – independently of which sector is in question – are: The resources put into a digital transformation project depend on the needs and means of a business. And lastly, the success of a digital investment is always in the Organization & PeopleBusiness Model Governance, Leadership & Management Technological & Technical Review Business Activities & Functions Processes & Methodologies
  • 43. details, and though the focus may shift between the factors described above they need to be considered even if they are not applicable or used going ahead.