Digital Transformation as a Service (DTAS): Back to Basics

Jarrod Calamante, Head of Ecommerce at Spotlight Retail Group (SRG)

Digital Transformation has become a near-constant buzzword, with businesses racing to integrate the latest technologies—often asking, “Can I have AI with that?” But before diving into flashy tech, let’s take a step back and return to the fundamentals. Here’s a guide to approaching retail transformation with clarity and purpose.

Know Your Customer

Understanding your customer goes beyond surface-level demographics. It’s not just about crafting a persona like “Michelle, mid-30s, with a teen, a tween and a toddler.” It’s about digging deeper:

• Needs and Pain Points: What challenges do they face and how does your brand address them?

• Tech Comfort Levels: Are they tech-savvy or more traditional in their preferences?

• Shopping Motivation: Does value mean price, or does it mean experience? For instance, David Jones’ “Shoe Heaven” nailed their transformation by delivering exactly what their customers craved.

Know Your Brand

Transformation should enhance your brand, not dilute it. Take inspiration from Coles’ “Down Down” campaign, which amplified their core identity. Ask yourself:

• Brand Identity: What are you known for?

• Strengths and Weaknesses: Be honest about where you excel and where you fall short.

• Customer Loyalty Drivers: Why do customers keep coming back?

Know Your Business

Be brutally honest about your organization’s digital maturity:

• Starting Point: Are you building from scratch or improving existing systems?

• Pace of Change: How quickly can your business adapt to transformation?

• Support Structure: Do you have the resources and systems to sustain change post-implementation?

• Challenges and Aspirations: Identify roadblocks, motivations and business goals.

Once you’ve addressed these foundational questions, identify and quantify the problems worth solving. Often, solving basic operational issues—like product availability, checkout friction, or short picks—delivers the biggest results. For example, focusing on short pick reporting can save millions in parcel freight costs.

Technology: A Tool, Not the Solution

Technology is a means to an end. Use the right tools to solve the right problems. Only after doing your homework should you consider which technologies can help meet your goals.

Empower Your People

People—not technology—drive transformation. Solving problems for your customers and your team is the essence of digital transformation.

Digital transformation isn’t about technology—it’s about solving problems for people, whether they’re your customers or your team.

• Cross-Functional Teams: One of my most effective transformation projects involved creating a cross-functional squad of eight people from different specialties. With a clear, simple goal, we rapidly increased online availability in just six weeks.

• Foster Innovation: Engage your people, communicate clearly and foster a culture of collaboration. Transformation happens when your team is empowered to drive change.

Be Strategic, Be Selective

You can’t tackle everything at once. Focus on the initiatives that will have the greatest impact on your customers and your bottom line. And remember, knowing what not to do is just as valuable as knowing what to pursue.

• Challenge the Status Quo: Encourage your team to think differently. Call out misaligned decisions or revisit them later.

• Keep It Simple: Use clear, powerful symbols or statements to align the organization. For example, Kmart’s “Little Girl” transformation—a memorable image of a young girl in oversized clothes and accessories—perfectly encapsulated their focus: “Lowest Price on everyday items for families.” Every decision tied back to that simple, effective vision.

Focus on People, Not Tech

Ultimately, digital transformation is about solving real problems for real people. Whether it’s a cutting-edge AI solution or a simple process improvement, the focus should always be on amplifying your brand, empowering your people and addressing customer needs.

Simon Sinek said it best: “People don’t buy what you do; they buy why you do it.” So, before embarking on your next transformation, ask yourself these key questions:

• What problems am I solving for my customers or employees?

• Am I amplifying my brand or diluting it?

• Am I empowering my people to drive the change?

Transformation is not a sprint—it’s a marathon. Success lies in clarity, strategy and an unwavering commitment to the basics.