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• From launching an online marketplace to speeding up deliveries with an Uber-like service, the company has aggressively harnessed technology to better serve its customers—and customers have responded, helping the company’s fortunes to skyrocket.
• Between January 2015 and summer 2019, Magalu’s stock price increased more than 18,000% in value—eye-popping in any context and truly remarkable given that Brazil was suffering its worst recession in history when Magalu’s rally started. 
• Less than a decade ago, few would have predicted this meteoric rise.
• Then known as Magazine Luiza, the company was a primarily a brick-and-mortar retailer beset by unstable economic conditions and increased pressure from digitally-native competitors. 

1.Change comes from the top 

• Magalu CEO Federico Trajano’s vision has never been about single mobile apps or digital initiatives but rather transforming all processes, from application development to logistics, operations, marketing, and sales. 
• “Technology [must move] from the background to center stage — and [be] seen as the brain of the business,” he stated in the company’s Q4 2016 earning statement.
• “Hierarchical structures, paralyzed by excessive bureaucracy, the fear of change and attachment to past successes, usually strongly reject the digital culture.”
• This top-down approach is crucial because digital transformation involves culture and process changes as much as technology deployments.
• Employees concerned about how change can affect their careers may need to be reassured and retrained. Incentives and KPIs will need to be redefined.
• Silos will need to be broken. Vision statements that connect technology investments to organizational changes and new business strategies will need to be created.
• Without a clear vision and mandate from the C-Suite, an enterprise may be able to churn out run-of-the-mill apps or digitize the status quo—but to transform how a business operates, interacts with customers and suppliers, and makes money, requires change from the top.    

2.Innovators need room to innovate

• Harnessing technology to transform a business starts with developers.
• Trajano addressed this need by establishing Luizalabs, an innovation team that began in 2012 with a handful of developers in an office but has since grown to more than 900 employees who occupy four buildings in two states. 
• Crucially, Trajano gave these developers access to the company’s core business systems, rather than sequestering them in an innovation lab to work on moonshots.
• He also freed Luizalabs from the company’s heavy governance processes, enabling them to operate more like a start-up, produce results faster, and create a blueprint to scale new approaches throughout the organization. 
• “The idea was to try to break the entire system — to show that it’s possible to have IT close to the business guys,” said Magalu CTO Andre Fatala, who has led Luizalabs from the beginning.
• “Before, there were very heavy processes. It would take two months to get all the information.” 
• By adopting modern agile development techniques and the automated, self-service, and lighter-touch governance and security tools that go with them, Luizalabs helped Magalu to dramatically accelerate its pace of innovation: instead of taking months or years, new digital products and experiences could be rolled out in just week or days