Digital Strategy - Transform Vs Enhance

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There has been lot of conversation in the marketplace related to digital transformation. Most of the enterprises have some level of technology transformations currently either in-flight or built to support customer needs. There is a continuous pressure to evolve more digitally and align with technology trends as new competition emerges in the marketplace with lower barriers of entry and focus on solving a unique problem for customers.

It is increasingly becoming important for all firms to evolve from digital on the side lines to build as core to survive pro. As they think through the journey of digital maturity, the first key decision is to build a digital strategy and what should it look like? Should the strategy be a large scale transformation or make incremental digital shifts to the business. Measure to make sure these initiatives  lead to more profound changes to the main business or improve customer engagement to help architect how the business or your firm makes money, the benefits can be fleeting.

Key dimensions of the digital transformation include - 


As you start the journey of digital strategy some of the key questions to ask and have clarity before finalizing the strategy -

#1 Ask questions to understand more about the firm/industry -
  • Who are the customers - high-margin/niche, cost-sensitive, early adopters?
  • How are the competitors in the space attacking the marketplace?
  • What threats exists and what opportunities can we create digitally for those threats?
  • What new technologies are emerging that can enhance the experience?
  • What is the key goal for the firm? Reduce operational expenses or increase revenue?
Established firms have a big advantage in the marketplace compared to the new competitors emerging due to reduced barriers of entry - You have customers, established brand, loyalty and data gained over years on how they interact.

#2 How can you leverage these organization assets and build digital journeys?

Increased transparency with pricing and products can build a margin compression as the firms defend against the changes in the marketplace.
  
Digital can unlock a breadth of benefits…be bold where you seek improvement and carefully plan the journey to avoid the unintended negative impacts. 

Be ready to iteratively build the journey because linear approach to organization transformation is too slow and can be expensive.

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