The Gap Is Growing: Why Successful Traditional Companies (Like Yours) Could Be Irrelevant Tomorrow

For tech and software companies, digital transformation is business as usual. But for companies operating in traditional markets—think installation companies, retailers, insurers, or transport firms—it’s often not even on the radar. Many of these established players have been successful for decades using the same approach. Business is going well, customers are happy—so why change?

The short answer: because otherwise, you risk becoming irrelevant. Competitors are overtaking you with smart digital solutions that offer exactly what customers want—convenience, speed, and a seamless experience.

The gap is real, but the good news is: it’s not too late to cross it. In this article, I’ll guide you through the signs that indicate your organization is ready for digital renewal, show you how front-runners are already making the leap, and offer a step-by-step plan to help you get started.

Signs Your Organization Needs Digital Transformation

If you work in a traditional sector, this might sound familiar: your company excels at what it does, but when it comes to digital? There’s still a long way to go. The tricky part is that you often don’t notice the signs—because “this is how we’ve always done it.” Here’s how you can recognize that your organization is ready for a digital catch-up:

1. Your Customer Interaction Feels Outdated

This shows in small frustrations customers experience, though they may not (yet) be loudly complaining. A recent example from an insurer says it all: customers were forced to log in to a portal that looked like it was made in 2005. Information was hidden behind three unnecessary menus. Forms had to be printed, filled in by hand, and scanned.

Ask yourself: do customers still have to call or visit in person for something that could easily be done online? Do you still send paper invoices? Do customers need to enter the same data multiple times? Do you notice that younger generations avoid your services? All these are signs your customer experience needs an update.

2. You Lack Direct Contact With End Users

This becomes clear when you’re missing information that competitors seem to have. Many traditional companies are so focused on their product or service that they forget who’s actually using it. They might be in touch with the buyer or middleman—but not the end user.

Take a supplier of office equipment, for example. They knew how many printers they delivered to which companies, but had no insight into usage. Once they introduced smart, connected printers, they discovered that some were hardly used, while others were overloaded. This led to an entirely new business model: customers now pay per print, instead of per device.

Ask yourself: do you know how your product or service is actually used once it leaves your company? Do you understand how your customers interact with it? Do you know your end users’ pain points? If not, you’re missing valuable insights.

3. Your Processes Are Still Mostly Manual

A subtle but telling sign is the amount of manual work in your organization. Sound familiar? Employees retyping data from one system into another. Excel sheets being updated and emailed around. Paper forms that need approval from three different departments.

A window frame manufacturer we know used to send salespeople to customers’ homes with a notepad to record measurements. These were then entered into an Excel sheet back at the office, which production staff re-entered into their system. After switching to a tablet app that allowed salespeople to input measurements digitally on the spot, measurement errors dropped by 70% and lead times were cut by two days.

Look critically at your own processes: how much time do employees spend entering or re-entering data? How many systems do you use that don’t talk to each other? These are clear signals that there’s room for digital improvement.

4. You Have Little Visibility Into Your Supply Chain

This shows up as blind spots in your operations. You deliver products to customers, but then what? A manufacturer that sells to wholesalers often has no idea when the products reach the end user, how they’re used, or when they need replacing.

A transport company I know delivered consistently to wholesalers without any clue how long it took for their goods to reach retail stores. After introducing a basic tracking app, they discovered their packages sat in warehouse stockrooms for an average of three days—an expensive delay they hadn’t previously seen.

Ask yourself: do you know when your product is used? Do you know its lifecycle? Do you know when customers are ready for a replacement purchase? Without this insight, you’re missing marketing opportunities and valuable feedback for product improvement.

How Front-Runners Are Making the Digital Leap

What sets apart the organizations that succeed with digital transformation? I see some clear patterns among the pioneers in traditional industries. They don’t see the above signals as threats—they see them as opportunities to strengthen their market position.

Take Albert Heijn, for example—a traditional retailer that continues to innovate. They acted on several signals:

• They saw outdated customer interactions (long checkout lines, impersonal shopping) and introduced self-scan options and a personalized app with tailored offers.

• They lacked direct contact with end users, so they developed a loyalty program via the Bonus Card and later the app, allowing them to track customer purchases.

• Their supply chain visibility was limited, so they built an integrated system that monitors stock levels, creates smart shelf layouts, and automates orders based on real-time demand.

The result? Albert Heijn remains a market leader, even as digital newcomers like Picnic try to take market share.

Another great example I’ve seen firsthand is the market leader in underfloor heating. They sell through wholesalers to installers—usually small family-run companies with 1–20 employees. They recognized several pain points:

• They had poor visibility into their supply chain. They knew how many units were sold to wholesalers, but not which installers were using them or at which customer sites.

• They lacked direct contact with the end users of their product (the installers), since wholesalers always acted as middlemen.

Instead of accepting this, they took a digital leap by launching a loyalty app for installers. Installers could earn points by registering the products they installed, and later redeem them for benefits.

This seemingly simple innovation had major impact. They suddenly had visibility into who was installing their products, where they were being used, and how long the gap was between sale and installation. This supply chain insight had previously been completely invisible.

The result? They can now run targeted marketing campaigns to specific installers, reward loyalty, and optimize logistics based on real installation data—not just wholesale sales. Their market position has only strengthened.

What sets these front-runners apart? In this company, it was a combination of a visionary commercial director embracing digital developments and a seasoned regional manager with deep industry knowledge. The commercial director drives innovation; the regional manager adds substance—a golden combination for success.

What I see in successful traditional businesses is that they don’t wait until digital transformation becomes inevitable. They don’t see digital as a threat or a necessary evil—they see it as a chance to become even better at what they already do. They reinforce their core business rather than replacing it.

The First Steps Toward Digital Transformation

Digital transformation doesn’t start with technology—it starts with vision and a plan. If you recognize the signals and decide to act, this step-by-step approach can help you get started:

Step 1: Identify Your Digital Priorities

Start by identifying your organization’s key bottlenecks. Which of the above signals do you recognize most? Is it outdated customer interaction, lack of connection with end users, manual processes, or limited supply chain visibility?

Pro tip: organize a session with people from different parts of your organization. Don’t just ask management—talk to employees who work with customers daily: what do they struggle with? What complaints do they hear? Which tasks waste time? This bottom-up approach often yields surprising insights and builds immediate support for change.

Step 2: Explore Possibilities With Experts

Once you’ve defined your priorities, it’s time to explore which digital solutions can help. This is when you should bring in experts—people who know what’s possible technically and have experience with similar challenges in traditional industries.

Pro tip: set up an informal chat with a digital partner who isn’t tied to one specific solution. Grab a coffee and have a no-strings conversation. The best partners ask lots of questions and listen to your situation—instead of offering a pre-packaged solution. Prepare by bringing real-life examples of the challenges you face.

Step 3: Start With an MVP (Minimum Viable Product)

Start small—but start. Choose one specific problem and build a first working solution for it. It doesn’t need to be perfect or complete—the goal is to test whether your approach works and learn from it.

Pro tip: clearly define the minimum outcome you want to achieve with your first digital initiative. For example: “We want 20% of our customers to use our new service app within three months.” By setting a concrete, measurable goal, you can clearly see whether you’re on track. Involve a small group of early adopters—loyal customers or enthusiastic employees.

The beauty of this step-by-step approach is that results come quickly. Once your first MVP is successful, momentum builds. You learn what works and what doesn’t, and gradually build a digital mindset within your organization. This iterative approach is a key ingredient in successful digital transformations in traditional sectors.

Securing Your Digital Future: Why You Must Act Now

Digital transformation might sound like a massive, overwhelming project. But as we’ve seen, you don’t need to overhaul your entire organization overnight. Start small, learn from the results, and build from there. A step-by-step approach creates internal support and allows you to continuously refine your efforts.

The difference between companies that thrive in the next ten years and those that fall behind is defined by the actions you take now. Tomorrow’s market leaders are the companies that dare to experiment with digital today—even in traditional industries.

What you need is a combination of commercial drive and subject-matter expertise—someone to champion the transformation, and someone with the deep industry know-how to make the solutions truly valuable to customers. Do you have that combination in-house? Then now is the time to take your first step.

Want to discuss the digital opportunities for your organization? Stop by for a coffee—we’d love to think along with you about your specific challenges and how targeted digital innovation can help you future-proof your business.