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How to Create a Great Digital Strategy

Title Author(s) Type Topic(s) Comments Date
How to Create a Great Digital StrategyRoss, Jeanne W.
Sebastian, Ina
Beath, Cynthia M.
Research BriefingBusiness Agility
Digital Innovation
Abstract: Companies experience disruption from SMACIT and other digital technologies as a result of competitors combining business value propositions with technology and information to undermine either the companies’ relationships with customers or their product service portfolio. To counter these threats and leverage digital opportunities, business leaders must rethink their business strategies and create what we refer to as a digital strategy. In this briefing we describe findings from our research to highlight three characteristics of an effective digital strategy: it is (1) focused on one clear competitive strength, (2) directional rather than targeted at an end state, and (3) enabled by strong digital capabilities.

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February 20, 2017

I read that business integration and data standards are prerequisites for great digital Strategy design and execution. Is it right?
Does it mean that companies with low integration operational backbones (diversification or replication operating models) will face more challenges than firms with highly integrated operational platform ?

More generaly, is there any link between operational model and digital strategy choices ?

Said Sbihi

March 7, 2017

I am also very interested in the same question about operating model and digital strategy? Are replication and diversification models only exceptions in digital economy?

Jeanne Ross
March 8, 2017

This is an interesting question. While I believe that integration offers the best opportunity for competitive advantage from digital technologies, I think many companies will focus integration within relatively independent business units rather than across. Alphabet is a good example. That said, a company that integrates nothing across business units will have trouble demonstrating the value of the enterprise beyond the portfolio benefits (think Berkshire Hathaway). I expect we will continue to see companies like GE apply a diversification model while finding some opportunities for common services. So, in my opinion, operating model continues to be a guide for business architecture, which remains essential to a company’s ability to execute strategy.

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