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Article Title: AI-Driven Design Thinking for Effective Digital Transformation: A Crucial Strategy for Global and HK Businesses
Part 5: Nine Global and HK Successful Cases
In today’s rapidly evolving digital landscape, companies worldwide are leveraging AI-driven design thinking to transform their operations and customer experiences. This approach combines artificial intelligence with human-centered design to tackle complex challenges, foster innovation, and drive growth.
The following case studies from 4 global companies (i.e., Generali, Wind3, Dubai SME and Snam) and 5 Hong Kong & China companies (i.e., a Bank, an Insurance company, a Transportation company, a Retail Chain and a Hotel) illustrate the efficacy of this method in diverse sectors, from insurance and banking to telecommunications and retail:
Global Case (1): Generali’s AI-based Employee Health Services [7]
- Generali Group, a leading insurance company founded in 1831 in Trieste, Italy, operates in 60 countries, employing 76,000 people and serving 55 million clients. In 2017, Generali faced a challenge in enhancing employee welfare through digital services. The project initially lacked a clear technological direction, presenting a hurdle in developing a digital service focused on employee health.
- To address this, Generali implemented design thinking methodologies using analysis tools and employee-centric strategies. They formed cross-functional project teams, including HR, IT, and wellness experts, to ensure diverse insights were integrated. This approach redefined employees as end-users, aligning the project with Generali’s objectives and focusing on understanding their actual needs, leading to the development of meaningful solutions.
- The result was the creation of Welion, a specialized entity offering AI-based health services. These services utilized artificial intelligence and wearable technology to provide personalized, automated assistance for employee health maintenance. This innovation emphasized prevention and support, enhancing the overall well-being of employees.
- This digital transformation project successfully integrated diverse stakeholder perspectives, making the solutions both technologically advanced and user-centric. By focusing on real human needs, Generali significantly improved its employee welfare services, setting a benchmark for employee-centered innovation in corporate welfare.
Global Case (2): Wind3’s AI-Driven Chatbot for Enhanced Lead Identification [7]
- Wind3, formed in 2016 through a merger between Wind and 3, is a leading Italian telecommunications company with a significant market share and annual revenues of approximately 6.1 billion euros. Facing a competitive market with complex offerings and low customer loyalty, Wind3 sought to enhance its lead generation process for business clients, including corporations, SMEs, and freelancers.
- To address this challenge, Wind3 implemented a digital transformation strategy using customer-centered analytical technologies. They formed cross-department innovation teams, incorporating experts from AI, marketing, and customer service to ensure a holistic approach. By focusing on user-centric design and leveraging natural language processing, they created an AI-driven chatbot that improved lead identification and fostered meaningful customer engagements.
- The result was a sophisticated chatbot that combined AI with human-like interaction capabilities. This tool provided not only lead identification but also tailored problem-solving and marketing strategies for individual clients, enhancing the overall customer experience.
- The deployment of the AI-based chatbot transformed Wind3’s lead generation process, improving user engagement and the quality of leads generated. By leveraging design thinking, Wind3 strengthened its position in the telecommunications market, setting a new standard in B2B services through enhanced customer interactions.
Global Case (3): Dubai SME’s Implementation of a Big Data Directory for Local Businesses [7]
- Dubai SME, part of Dubai’s Department of Economic Development, was established to support the SME sector in a city known for rapid economic growth and cultural diversity. To enhance business connectivity and extract valuable economic insights, Dubai SME aimed to create a comprehensive web-based directory for local SMEs. The challenge was designing a platform that accommodated the city’s diverse population, including 2.91 million expats from over 200 countries.
- To address this, they employed a user-centered design thinking approach, utilizing Data-driven design thinking analysis tools and forming cross-functional teams. These teams included experts in cultural research, technology, and business development. They conducted extensive ethnographic research to understand the cultural and business needs of SME merchants and their clients. The aim was to develop a dynamic tool that adapted to diverse user requirements, leveraging both qualitative and quantitative data.
- The result was an intuitive, culturally inclusive directory equipped with advanced search filters and customized features. This platform catered to the varied preferences and business practices of Dubai’s international community, transforming the directory into more than just a listing service.
- The successful implementation of the directory enhanced business connectivity and market insights, supporting Dubai’s SME ecosystem. By focusing on user-centric design and integrating cultural insights, Dubai SME delivered a valuable resource that contributed to Dubai’s economic diversity and growth, improving the visibility and strategic decision-making of local SMEs.
Global Case (4): Snam Enhanced the Effectiveness of Maintenance Operations through Big Data [7]
- Snam, Europe’s leading gas utility based in Italy, sought to enhance its maintenance operations using big data. The company aimed to integrate advanced data analytics into user-friendly tools while fostering a data-driven culture among its engineers. The challenge was to create practical solutions tailored to diverse plant maintenance needs.
- Snam embarked on a digital transformation project called MaintenanceApp. They used different advanced design thinking tools and formed a cross-expertise working force that included engineers, data scientists, and IT specialists. This approach ensured that maintenance engineers were directly involved in the development process, aligning the tools with their workflows and needs. This user-centric strategy minimized biases and ensured practical applicability.
- The MaintenanceApp was developed through iterative prototyping and frequent feedback sessions. It provides real-time data analysis and predictive maintenance capabilities, enhancing operational efficiency. The app was crafted to be intuitive, leveraging existing cloud systems and new insights to meet engineers’ requirements effectively.
- The successful implementation of MaintenanceApp not only improved maintenance efficiency but also instilled a culture of data-driven decision-making within Snam’s engineering teams. By focusing on user involvement and continuous feedback, Snam achieved a digital transformation that was both innovative and seamlessly integrated into daily operations.
Hong Kong Case (1): How a HK Bank Used Design Thinking to Enhance Customer Retention [24]
- A prominent bank in Hong Kong faced a significant challenge in customer retention. While their strategy of offering short-term high-interest rates on savings deposits successfully attracted new customers, it failed to retain them. Customers would leave after the promotional period ended to seek other high-interest opportunities, leading to a near-zero retention rate.
- To address this, the bank aimed to shift its strategy from merely acquiring customers to retaining them by creating a valuable banking experience. They used advanced design thinking tools and formed an ad-hoc cross-functional customer-experience management team, including a customer-facing staff, IT staff, align experts, and external subject matter experts focused on transforming transient “reward seekers” into long-term “wealth seekers” through memorable customer journeys.
- The bank embarked on a digital transformation initiative, utilizing design thinking to understand and meet customer needs deeply. By recognizing that customers valued support and guidance alongside financial gains, the bank developed elite support services tailored to address their financial challenges, enhancing the overall banking experience.
- The design thinking approach led to significant results. Customer retention increased to double digits, and the bank retained approximately 3 billion dollars in deposits and investments. Enhanced customer satisfaction was achieved through personalized and comprehensive financial support, strengthening the bank’s market position and fostering long-term loyalty.
- This successful case was featured in the Design Thinking Business Casebook 2020, published by the Vocational Training Council of the Hong Kong Government.
Hong Kong Case (2): Enhancing Sales Capabilities for a HK Insurance Company [23, 28]
- A leading insurance company in Hong Kong faced challenges with its sales force, which relied heavily on its immediate networks for quick sales. Once these contacts were exhausted, agents struggled with cold calling, resulting in reduced income and high turnover rates. The company sought a sustainable strategy to help agents effectively engage and convert prospects in the cold market.
- The initiative focused on transforming traditional sales approaches to adapt to the digital landscape. A regional-based cross-functional team, including sales, IT, marketing, and subject matter experts, employed customer-emotion management techniques to understand the needs of the customer and sales force. This project aimed to create unlimited business opportunities for the sales force by leveraging digital tools and moving away from solely face-to-face interactions, helping agents build stronger relationships with potential customers.
- Through a digital transformation strategy using design thinking, the company developed a new sales model. This model allowed agents to use digital platforms to establish trust and rapport more efficiently with the cold market, transforming their engagement and interaction methods.
- The results were significant. Agents involved in the pilot increased their influencing power to 90%, and the closing rate for sales in the cold market rose by 124%. This digital transformation provided ongoing opportunities, reduced turnover rates, and stabilized income levels among agents, improving job satisfaction and retention. The project highlighted how digital tools can effectively transform insurance sales, creating sustainable growth and opportunities.
- This successful case was featured in the Design Thinking Business Casebook 2019, published by the Vocational Training Council of the Hong Kong Government, and in the international management textbook Cases on Learning Design and Human Performance Technology in July 2019.
Hong Kong Case (3): Enhancing Passenger Experience for a China Transportation Company [25]
- A major transportation company in China saw its passenger volume decline due to the COVID-19 pandemic. To revitalize its business, it aimed to create a differentiated and caring passenger experience, focusing on accommodating passengers with special needs and improving overall service quality.
- The project focused on “Creating a Caring Experience for Passengers with Special Needs in Public Transportation.” A first-ever cross-functional project team, including engineers, designers, and passengers, utilized data-driven design thinking tools to understand and address passenger needs deeply. By implementing digital transformation strategies, the company aimed to meet the specific needs of passenger segments such as pregnant women and environmentalists.
- Key components included wider gates, accessible toilets, specific train compartments, RFID-tagged badges for pregnant women, eco-friendly materials, enhanced information delivery through mobile apps, and IoT-based on-demand operations. These innovations were designed to improve accessibility, comfort, and environmental sustainability.
- The targeted digital enhancements led to significant improvements in passenger experiences, including enhanced accessibility and increased satisfaction among target groups. The project achieved over a 50% increase in passenger experience for pregnant women and environmentalists, demonstrating a substantial enhancement in service perception and willingness to use the services.
- This successful case was featured in the Design Thinking Business Casebook 2022, published by the Vocational Training Council of the Hong Kong Government.
Hong Kong Case (4): Building a Community-Centric O2O Platform for a HK Retail Chain Store Group
- A Hong Kong-based retail chain faced challenges due to a shift towards online shopping, especially in fast-moving consumer goods (FMCG), leading to customer loss and store closures. This shift particularly affected millennials, resulting in decreased profits.
- To address this, the company embarked on a digital transformation project to build a highly engaged community for targeted customers. A cross-functional team, including store-level staff, marketing, technology, and customer experience experts, utilized advanced design thinking tools to create an Online-to-Offline (O2O) platform. This approach integrated a living circle, social circle, and shopping circle, using design thinking to enhance the shopping experience.
- The new platform provided daily living services fostered social interactions and combined online and offline shopping experiences. This approach created a seamless transition between digital browsing and physical purchasing, enriching the overall consumer experience.
- The transformation led to increased customer engagement and satisfaction, with a 30% rise in customer satisfaction rates. The focus on community building helped attract and retain customers, reversing the trend of customer loss and positioning the company for future growth in the competitive retail market.
Hong Kong Case (5): The WOW Factor: Mira Hong Kong’s Digital Revolution [30]
- The Hospitality Group (THG), founded in 1957, aimed to rejuvenate the Mira Hong Kong by transforming it from a traditional five-star hotel into a design hotel. The goal was to attract modern travelers through hip interiors, innovative cuisine, and a passionate service culture. The challenge was to redefine their value proposition to drive growth and innovation in a competitive market.
- THG launched a digital transformation project titled “WOW the Hospitality Customers: Transforming Innovation into Performance through Design Thinking.” They employed advanced design thinking tools and formed cross-functional teams to integrate diverse insights and ensure a customer-centric approach. Quantitative customer emotion management was used to measure and enhance the customer experience, focusing on digitalized WOW services.
- The transformation introduced several innovative services, including an in-room smartphone that linked to guests’ personal devices, a portable Wi-Fi buddy, and a variety of pillows for enhanced comfort. At MiraSpa, cutting-edge skincare technology was used to offer transformative treatments complemented by mood-enhancing interiors and exceptional service, defining a luxury spa experience.
- The digital transformation led to significant accolades, such as Best Business Hotel in Hong Kong and Best Luxury Hotel Spa. The hotel earned recognition from the World Luxury Spa Awards and the Michelin Guide, alongside a high Customer Experience Index. These achievements demonstrated the successful integration of innovation and performance, establishing THG as a leader in modern hospitality.
- This successful case was prominently featured in the esteemed international management journal Performance Improvement on February 12, 2018.
Conclusion
the case studies from both global and Hong Kong companies highlight the transformative impact of AI-driven design thinking across various sectors. The use of design thinking tools and cross-functional teams proved crucial in addressing complex challenges, enabling businesses to integrate diverse insights and create user-centric solutions.
The versatility of AI-driven design thinking is evident in its successful application across industries, businesses, public utilities, and government services. This adaptability underscores its effectiveness in fostering innovation and growth. Furthermore, the blend of global strategies and local practices provides valuable insights for organizations seeking sustainable improvements in today’s competitive digital landscape.