(01) Ross, J. W., Beath, C. M., & Sebastian, I. M. (2017). How to Develop a Great Digital Strategy. MIT Sloan Management Review, 58(2), 7. Flashcards
What does a great digital business strategy provide?
A great digital strategy provides direction, enabling executives to lead digital initiatives, gauge their progress, and then redirect those efforts as needed.
What is the first step in setting the direction to a great digital strategy?
The first step in setting this direction is to decide what kind of digital strategy to pursue: a customer engagement strategy or a digitized solutions strategy.
Explain the difference in targeting between a customer engagement strategy and a digitized solution strategy.
A customer engagement strategy targets superior, personalized experiences that engender customer loyalty.
A digitized solutions strategy targets information-
enriched products and services that deliver new value for customers.
On what does the choice of the best strategy for a company depend? And what is the most important requirement for a great digital strategy?
The best strategy for a company will depend on its existing capabilities and the way it wants to compete. The most important requirement for a great digital strategy, however, is to choose one kind of strategy or the other, not both.
What is the focus of customer engagement strategy?
The focus of a customer engagement strategy is the development of customer loyalty and trust — and, in the best cases, passion.
Companies choosing this approach offer seamless, omnichannel customer experiences, rapid responses to new customer demands, and personalized relationships built upon deep customer insights.
Recognizing the always-rising bar of customer expectations, companies with a great customer engagement strategy are constantly identifying new opportunities to connect with their customers.
Explain what a Digitized Solutions Strategy is.
A digitized solutions strategy transforms what a company is selling.
It seeks to integrate diversified products and services into solutions, to enhance products and services with information and expertise that help solve customer problems, and to add value throughout the life cycle of products and services. Over time, digitized solutions can transform a company’s business model by shifting the basis of its revenue stream from transactional sales to sophisticated, value-laden offerings that produce recurring revenue.
