A digital strategy leverages the use of technology to achieve business goals and improve the performance of a business model. The use of digital initiatives encourages companies to be more innovative in their business models, creating new competitive advantages and growth opportunities that allow companies to excel in their field.
According to Accenture, digital strategy looks at the activities and processes that need to be transformed to provide better services to customers. It then looks for the right combination of technologies and strategies that can be combined to create those experiences. A successful digital strategy helps create a concrete structure for the business by focusing on where the company’s value chain is vulnerable to disruption and using a digital reboot to strengthen the business model and make it more commercially viable. These strategies are based on monthly roadmaps tied to measurable business objectives and require a functional team with members from marketing and information technology (IT) as well as strong leadership.
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Don’t draft a digital strategy just because everyone else is – Harvard Business Review
A successful digital strategy helps create a concrete structure for the business by focusing on where the company’s value chain is vulnerable to disruption
Digital strategies require immense effort to implement successfully – a Harvard Business Review article suggests using the following five questions to determine how digital initiatives are changing a company’s operations and provide a clear understanding of the company’s purpose to help companies decide if a digital strategy is right for them:
- Does digital technology change the businesses you should be in?
- How could digital technology improve the way you add value to the businesses you are in?
- Could digital technology change your target customer?
- Does digital technology affect the value proposition to your target customer?
- How can digital technology enhance the enterprise capabilities that differentiate you from your competition?
Using these questions, companies already facing disruption or competition from new digital players can proceed with implementing a digital strategy, while others can avoid spending their resources on implementing technologies that will not create new competitive advantages.
About the Author
Aamna is a graduate from Kings College London, having secured her LLB in 2021 she has decided to venture out and explore areas such as management and marketing. Having previously worked at startups, she is currently working at InnowayIt as a content writer.