Chapter 13: Digital strategy - governance and elements of digital strategies

Question 1

What abilities does the ELT need to demostrate to survive digital disruption?

Answer 1

Inspirational Leadership
Competitive Edge
Establishing a strategic decision
Influence external parties
Collaboration
Business judgement
Execution
Building talent

Question 2

What are the nine revenue models that digital technology presents?

Answer 2

Transaction
Capital leasing
Licensing
Subscription
Commission
Advertising
Trading
Donation
Subsidies

Question 3

What are the 3 questions that need to be asked with regards to each participant that makes up the ecosystem?

Answer 3

Precise role of the participant within the environment
Each participant’s reach through the environment
Capacity or key value proposition

Question 4

What 2 principal factors have driven the growth in rate of change?

Answer 4

Organisations are adopting technologies that enable them to transform the experience that customers can enjoy
Expectations of customers are changing at a faster rate

Question 5

What are the key drivers of digital revolution?

Answer 5

Mobile and Internet penetration
Connected devices
Data analytics and the cloud
User interfaces
Global accessibility
Increasing urbanisation

Question 6

What factors drive customer demands in the digital era?

Answer 6

Contextualised interactions - customers expect a service to be tailored to them
Seamless experience across channels
Anytime, anywhere
Great service
Self-service
Transparency
Peer review and advocacy

Question 7

How can we avoid the reversal of the organisation’s competitive advantage?

Answer 7

Design thinking - designing many experiences for one customer
Experiental pilots - monitor how customers behave and gain an appreciation for their reacition to new experiences
Prototyping
Brand atomization

Question 8

What 3 areas is digital traction a combination of metrics?

Answer 8

Scale
Active usage
Engagement

Question 9

What metrics can we use to measure the financial impact of attracting and keeping customers, and assessing whether the organisation is being profitable?

Answer 9

Cost to acquire a typical customer (CAC)
Lifetime value of a typical customer (LTV)

Question 10

How do we calculate the cost to acquire a typical customer?

Answer 10

Looking at all expenditure on sales and marketing and dividing by the number of new customers won

Question 11

How do we calculate the lifetime value of a typical customer?

Answer 11

Multiplying the average monthly recurring revenue by the average customer lifetime

Question 12

How do we calculate the months to recover CAC?

Answer 12

CAC/Average monthly recurring revenue

Question 13

With increasing levels of digitalisation in the workplace waht 2 features have become apparent with regards to employing staff?

Answer 13

Greaters transparency about employment opportunities for those seeking a new challenge
Competition for digital talent is increasing

Question 14

How does an organisation become the employer of choice in the digital era according to the World Economic Forum?

Answer 14

Formulate a long-term working strategy for millennials
Work with staff to formulate company values together
Empower the workforce
Build workspaces that attract digital talent
Create policies that support collaboration and knowledge-sharing tools

Question 15

What are some of the new roles being created in companies as a result of digitalisation?

Answer 15

E-business manager
Digital account manager
Digital product manager
Fraud manager
Data Scientist
Web Designer
Chief Listening Officer
Design Learning Manager

Question 16

What will be included when organisations focus on making in-house training a critical activity within their talent management programme?

Answer 16

Develop required competencies within the workforce
Mine your own organisation for hidden talent
Bring new skills into the organisation

Question 17

According to the World Economic Forum, What six roles should CEOs fulfil in the digital age?

Answer 17

Creater of vision and mission
Strategic planner
Driver of information-based business models
Enabler of the shift to on-demand operating models
Innovation promoter
Operational excellence driver

Question 18

What four key areas can Leaders focus on to move towards a digital culture?

Answer 18

Communication
Journey management
Make changes visible
Continuous change monitoring

Question 19

What factors must leaders recognise to digtinguish a digital culture from others?

Answer 19

Having a strong mission statement and a clear sense of purpose
Lean business structures, with small, cross-functional teams as opposed to individual divisions working as seperate siloes
A diverse workforce with good digital skills