Digital Strategy – Just do!

-
A digital marketing strategy is a series of actions that will help you achieve the company's goals using online marketing. Therefore, building an effective digital strategy doesn’t need to be difficult.

In simple terms, a strategy is just a plan of action to achieve the desired goal or multiple goals. For example, the overarching goal might be to generate 25% more leads via your website this year than you drove last year. This approach to strategy results in a plan or in the digital world a roadmap. Digital strategy is not an IT strategy and requires a different approach.
Digital technology has been roiling markets and disrupting companies for more than two decades, but despite that lengthy history, incumbents are still struggling to enact and deliver on digital transformations.



The challenges
The first challenge is disruption; digitization is enabling new, disruptive models that aggressively compete with legacy models, putting material pressure on incumbents’ revenue and profit growth.
The second challenge is when companies launch transformations in response to competition, the results are often underwhelming. Based on our a recent worldwide survey of 2,000 incumbent companies across all major industries and countries, the average return on incumbent digital initiatives is below 10% — barely above the cost of capital

The six types of digital strategy

Platform play: engagement in platform strategies, in an attempt to redefine the industry’s value chain so customers and suppliers can interact more directly and benefit from network effects. Platforms have the power to radically alter the way value is distributed in a value chain.

New marginal supply: using digital technology to tap into previously inaccessible sources of supply at a marginal cost, often, but not always, in combination with a platform play.

Digitally-enabled products and services:  using digital technology to create new products or services with digital features, typically to serve new demand.

Customizing: using digital technology to re-bundle their products or services to better serve their existing customers.

Digital distribution channels: invest in digital distribution channels, in an attempt to make it easier for customers to access their products or services.

Cost efficiency: using digital to improve their cost efficiency, typically through automation or cost scaling. But in today's market dynamics, this strategy looks like it’s aimed at survival rather than creating a source of comparative advantage.


Digital strategy needs to become the essence of business strategy. Renewing the baseline for digital and strategy clears away the clutter, setting teams on a path for action. In that renewal a digitally informed business strategy becomes an answer to a simple question:

Comments

Post a Comment

Popular posts from this blog

Management dilemmas - the whole is greater than the sum of its parts

-
Image
As managers, we face daily dilemmas that require our attention. Whether to dismiss an employee or move him from a department, whether to take a specific project, whether the customer is strategic or profitable, should stick to the strategy or plan goals. The experience of "being or stopping" is an experience that accompanies us for many hours in any managerial position. For this is the meaning of being a manager, or even more so, being a leader. How many of you have found yourself regretting a decision he made? How many dilemmas do you run a day? Are they all big and challenging or small and light? Did you choose to learn from any dilemma or not? The first dilemma in the history of mankind was presented to King Solomon. When he faced two assertive and intelligent women. Each of them holds that the child is hers. The arguments were persuasive and even identical - they both loved him, gave birth to him, replaced him with the Pampers, got up at night,...
Read more

Mastering the Art of Crafting Winning Best Practices: A Comprehensive Guide

-
In the ever-evolving landscape of industries and professions, the implementation of best practices remains a cornerstone for success. Whether you're aiming to streamline operations, enhance efficiency, or improve overall performance, creating winning best practices is a vital skill. The following comprehensive guide outlines essential steps to master the art of crafting effective best practices. ### Understanding the Purpose: Identify the specific goal or problem you aim to address with your best practice. Define the expected outcomes and benefits. Clarity in purpose serves as a guiding light throughout the development process. ### Conducting Research and Analysis: Thoroughly research existing methodologies, industry standards, and successful case studies related to your focus area. Analyze their strengths, weaknesses, and applicability to your context. This groundwork lays the foundation for innovative and impactful best practices. ### Involving Stakeholders: Engage key stakeholde...
Read more

Blue Ocean Mindset in the Covid-19 era

-
  The Blue Ocean Strategy book launched a revolution in business strategy. After all, which firm would not be operating in uncontested market space, where the competition was irrelevant? Instead of struggling to survive in the bloody shark-infested “Red Oceans” of vicious competition, why not move to the “Blue Oceans” where there was little or no competition ? What inspired is how organizations and individuals that created new frontiers of opportunity and growth. Where success was not about fighting for a bigger slice of an existing, often shrinking pie, but about creating a larger economic pie for all . In the effect, Blue Ocean strategy involves market-creating innovation. It opens up new possibilities that are not available to organizations operating within the existing cost-value structure. It expands the universe as to what is possible, often enabling higher value at a lower cost .     So, what are the key components in successful Blue Ocean implementation ...
Read more