Wednesday, October 9, 2013

The ‘Magic Formula’ of Digital Strategy

Digital strategy is about big picture-shared value collaboration. 


Organizations large or small are heading to the digitalization journey; digital strategy is like a compass, to navigate the direction, digital strategy is neither marketing strategy nor IT strategy, it is integral element of corporate strategy; more specifically, defining and planning how to use digitalization tools to meet business objectives is part and parcel of what most call 'digital strategy'. 

Digital Strategy Perspectives: Strategy requires knowledge of "who we are" "where we are" "our resources" - then a clear vision of "where we want to get to". The digital strategy is overall about how the business conducts of getting from point A to point B, from where they are now to where they want to go and how to get there. The digital business strategy is typically segmented into two perspectives -- How does the digital world provide the business opportunities / new markets and threats to mitigate?; and then, on the other hand, there is how to promote the business through digital channels - search, display, social etc. (tactical execution).

Hyper-connectivity is one of the most critical digital characteristics: Digitalization opens a new door and connects within department silos, across the walls, across the streets, across the seas, and across the planet. When things connect in this way, any entity wishing to negotiate a successful journey has to understand what the implications of this degree of connectivity mean to them. They have to understand what it means to their business or organization. But much more importantly, they have to understand the external changing connected environment. A digital organization with optimal digital strategy continues to climb up its maturity level from efficiency to effectiveness, and then to agility- the crucial ability to adapt to business dynamics.

Social strategy is part of the digital strategy: It is informed by the overall business strategy. The social strategy includes 1) Social Business Strategy - answering the question of how does online social behavior change a business model, resources, product sourcing, service etc. the essence of the business. And 2) Tactical promotion via Social networks - ads, campaigns, etc. How a business is using available social tools must be coordinated with other components of the digital strategy, so as to avoid implementation conflict and confusion.

The 'magic formula' of Digital Strategy = Information Management Strategy + Social Strategy + Mobile Strategy + User Experience Strategy + Search Engine Strategy + Digital Loyalty Programs + Digital reputation Strategy + Gamification (collaborative tools, etc..) + Digital Design Strategy + Content Strategy +Talent Strategy +…..-->Business Strategy 

Digital strategy is about big picture-shared value collaboration: That is where the game is moving. A digital strategy, however, can be defined as a key subcomponent of overall business strategy that covers all online touch points and channels. That means a complete overview of technical, content, design and customer tracks. It takes cross-functional collaboration and ecosystem comprehensiveness. When it comes to digital strategy, the sponsors and stakeholders need to be comfortable with the need for change, the need to have an adaptable and dynamic strategy and the acceptance that the blurring line between functional and business borders, the new characteristics of digital era such as flux, ambiguity, complexity, and interdependency., etc.

Surely, there’s no such magic formula or one size fits all digital strategy, organizations just have to tailor their own circumstances, follow the business principles, capture the trends and integrate digital into their strategic planning and execution.


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