Digital Transformation

What it means

Rebuilding business models and operations around digital.

Why it matters

Digital natives out-execute analog incumbents on speed, data, and cost.

How to calculate — with Cawan's Shoes

Cawan's Shoes 3-year digital transformation ($62M investment): • DTC ecommerce mix: 15% → 38% of revenue ($75M → $190M). • New Shopify Plus + custom PIM + Klaviyo stack replaced legacy Hybris. • Mobile app: 4.6M downloads, 28% of DTC revenue, 3.4x higher LTV vs. web-only. • Store 'endless-aisle' tablets: 12% of store transactions now include an online-fulfilled item, +$18M attributed revenue. • Data platform: Snowflake + dbt consolidated 180 sources into one warehouse. Net effect on P&L: +4.8 points of gross margin (DTC vs. wholesale) = ~$24M/yr recurring EBITDA lift.

What's at stake if you ignore this

Falling behind can be terminal (see many legacy retailers).