Building and Implementing Digital Strategy Flashcards
(17 cards)
What is a digital strategy?
A digital strategy outlines how a company uses digital technologies to gain competitive advantage, serve customers better and transform operations
e.g.: Starbucks uses its mobile app for orders, loyalty and payments. It integrates customer data to offer personal deals and location-based offers
What enables a successful digital strategy?
- Agile: tech-savvy leadership
- Clear skill development agenda
- Ecosystem mindset
- Strong data management
- Scalable tech infrastructure
e.g.: Amazon updates systems constantly, empowers tech teams, and has a robust cloud infrastructure (AWS) to support operations
What is the board’s role in digital transformation?
Assess digital maturity
Approve vision, allocate resources
Oversee progress and risk
e.g.: Lloyds Banking Group made digital banking a board-level priority, investing over £3B in their digital transformation strategy
What is Digital Quotient (DQ) and how can boards improve it?
DQ = Board’s awareness and capability to understand and guide digital transformation
- train directors in tech
- recruit digital experts
- review digital risks & opportunities
e.g.: Unilever’s board added directors with experience in digital media and data analytics to shape future strategy
What is digital transformation?
The comprehensive integration of digital technology into areas of business - changes how value is delivered and captured
Not just IT!
Also about culture, processes, customer experience
e.g.: Netflix transitioned from DVD rental to a streaming platform and content producer - fully digital value chain
What other elements support transformation?
New business models
Operating model review
New metrics for digital success
Attracting digital talent
e.g.: Airbnb redefined the accommodation business model using platform tech and customer data
How does digitisation reshape industries?
Impacts improve:
- removing constraints (e.g location / inventory)
- creating new markets
- reimagining systems
What key questions should firms ask in digital transformation?
Is digital in every dept’s plan?
Is automation used?
Are we cybersecure?
Do we have digital-ready talent?
Are we tracking performance metrics?
e.g.: Tesco implemented automation in warehouses and invested in cybersecurity post-2015 hack
What is a digital ecosystem?
A network of connected organisations that collaborate digitally to deliver value
e.g. Apple has an ecosystem of devices [iPhone], developers [App store], and users - all integrates
What ecosystem roles exist?
Experience provider - Uber: the app you book the ride on - its what you experience
Asset provider - The Uber Drivers car: that’s the asset - Uber does not own it
Process provider - Stripe handles card payment or uber courier does the physical delivery
Platform provider - Uber brings riders and drivers together / airbnb connects guests with hosts
What do customers expect in digital consumption?
On-demand availability
Speed, ease, and convenience
Hyper-personalisation
e.g.: Netflix and Amazon use AI to personalise recommendations based on past behaviour
What are three key tactics to attract/ retain customers?
- Offer experiences, not just products
- Use hyper-personalisation
- Provide access [subscriptions] instead of ownership (like BMW rent electric cars)
How is digital success measured?
3 traction metrics
Scale - how many users?
Active usage - how often?
Engagement - how long or how deeply involved?
Also assess:
Cost to acquire customers
Customer lifetime value
If CAC > CLV the costs will not outweigh the benefits
How do firms attract digital talent?
Offer culture millennials value [growth / purpose]
Empower employees
Actively listen to feedback
e.g. Google & Salesforce invest in culture and career paths to keep digital talent engaged
How do you build digital workforce skills?
Upskill current staff
Bring in digital natives
Use on demand / freelance workers
Tap into hidden talent pools [returning parents / career switchers]
What traits define digital-age leadership?
Agility: respond quickly to change
Fail fast: experiment, learn, adapt
Openness: support innovation and collaboration
What does a digital culture require?
Open communication
Change across all departments
Visible success stories
Ongoing mentoring
