Digital Business Strategy : Merging the physical with the digitalAll firms should centrally include the digital economy in their current and future corporate strategies. Strategists must let go of the belief that IT is just a cost center but rather a partner at the strategy table; IT and digital tools are the drivers for business innovation. Business challenges must now be tackled digitally, competing with a digital vision and business model that provides multiple ways of doing business. All that being said the aim of crafting a Digital Business Strategy (DBS) is to merge the physical and virtual worlds, by targeting your mission driven digital assets of the SMAC suite and exploiting the connectivity, collaborative efficiency. But always remember that early market success could attract competition from other strong players. A DBS aims to alleviate the following misconceptions.
Misconception number one: Digital Business Strategy (DBS) is only for online companiesIt does not mean the total elimination of physical products and premises commonly referred to the ‘brick and mortar” but in most cases creating a hybrid by integrating virtual and digital channels. So, this in turn means the corporate strategies of businesses just adds and evolves to accommodate the digital technologies. Take for instance a coffee enthusiast customer journey starts with ordering online, gets delivery physically based on his digital data and then shares the experience on social media. Coffee delivery drone story
Misconception number two: A DBS is only for the marketing departmentThere is a general misconception that almost every business has a digital business strategy. This hardly is true as a digital strategy is only implemented to specific business units such as marketing, whereas the aim of implementing a digital business strategy (DBS) is enterprise wise, implemented for all business functions.
Misconception number three: DBS replaces your corporate strategyDigitally-enabled enterprises need to be driven by a suitable DBS. This involves evolving your current corporate strategy to consider the digital economy you are operating in. Use your current business objectives and processes to leverage digital capabilities for each of your business functions. Leverage your IT architecture and create strategic success in by incorporating strategic digital assets available to your business through your enterprise architectural structure.
Misconception number four: A DBS is only for large and established enterprisesA DBS is for all firms, whether your firm is a start up or established. To operate successfully in the digital economy requires a DBS implemented with a clear digital vision. Driving a mission and vision with the incorporation of digital assets to enhance customer demand, strategically differentiates a firm by building productive customer and supplier relations.
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