Digital Strategy: what it is, why it is needed & how it integrates with your business strategy
-
Upload
stefan-f-dieffenbacher -
Category
Business
-
view
3.431 -
download
1
Transcript of Digital Strategy: what it is, why it is needed & how it integrates with your business strategy
© Copyright 2012 - 2014 Digital Leadership GmbH! Slide 1!Digital Leadership
Services & Consulting for
Digital Leadership
Digital Strategy – what is it and why is it needed?" !© Copyright 2014 Digital Leadership GmbH!
Munich, 7th of October 2014 authored by Alexander Schmid!
Slide 2!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Theoretically a separate digital strategy should not be necessary as the business strategy should include everything – including digital. !
Business strategy - how does digital strategy fit in?"
! Define a unique and valuable market position!! Making tradeoffs between what to do and what not to do#! Creating "fit" by aligning company activities to with one another
to support the chosen strategy#
Michael Porter"
! A system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully#
Dr. Vladimir Kvint"
! A strategy is a set of different ideas that include a plan to achieve this goals#
! A good strategy maximizes your competitive advantage by limiting your rivals opportunities and maximizing your resources#
Richard Rummelt"
Corporate Strategy"
Business Strategy"
Functional Strategy"
Slide 3!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
But reality looks differently…"
Music industry# Record retailers# Book stores#
DVD rentals# Banks#Print industry#
Publishers#
Retailers#
Photo industry#
These industries were already
heavily disrupted by digitalization. Many others will
follow.#
The threads and opportunities of digitalization are generally recognized too late and actions are not taken resolute enough.!
Slide 4!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Why does this happen repeatedly (1/2)?*"
IT!
Moore’s Law: !
Computer chip memory doubles every 12-18 months at no rise in cost to the consumer.!
Metcalfe’s Law: !
Says networks become more valuable as more people join them.!
Law of Disruption: !
Technology changes exponentially, but social, economic and legal systems change incrementally and struggle to keep up.!
*Source: “The laws of disruption” by Larry Downes!
Slide 5!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Corporate Strategy"
Business Strategy"
Functional Strategy""""
Why does this happen repeatedly (2/2)?"
Product! Marketing! Sales! IT!HR! ...!
Online#
Offline#
IT# Online#
Offline#
IT# Online#
Offline#
IT# Online#
Offline#
IT#Online#
Offline#
IT#1"
3"
2"
Today the “online strategy” is typically viewed as part of the functional strategy. Online strategy deals with optimal use of web/mobile channels. This leads to!1. a none integrated strategy across
functional silos and in consequence also inhomogeneous user experience!
2. no or too little and too slow changes to the business model!
3. a loss of impact due to friction between business, online and IT being too much separated!
Slide 6!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
!
To fix this a digital strategy is essential"
Slide 7!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Definition of a digital strategy"
A digital strategy defines how a company uses digital technology to maximize its business results.
It includes (1) a clearly expressed direction and (2) a
verified plan how to achieve this goal."
Slide 8!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
A digital strategy has to address the following"
1. Redefine / adapt the business model to match new / emerging market realities"
2. Integrate the internal capabilities to maximize usage of resources"
3. Unify and optimize the external interfaces to customers and partners for a seamless and optimal experience"
4. Bridge the gap between Business, User Experience and Technology"
Slide 9!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Corporate Strategy"
Business Strategy"
Digital Strategy"
Functional Strategy"
1. Redefine the business model to match the new market realities"
! It is not sufficient to stay on functional strategy level, as the business model won’t be adapted to emerging market realities.#
! It is not sufficient on the business strategy level because digital strategy needs to be close to execution to achieve the required speed.#
! To constantly adapt the business model the digital strategy is mediating between the functional strategy and the business strategy.#
! It can’t be parallel to the other strategies as is has to become integral to all thinking, doing and needs the “teeth” from being part of the business.#
#
Slide 10!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
2. Integrate the internal capabilities to maximize usage of resources"
! Get a unified singular view on data (customer, status, financials, etc.)#
! Enable advanced data analysis and build capabilities to act on these (new services, products, quality of services, …)#
! Improve user experience through different silos by thinking and working along customer journeys#
! Reduce costs through improved processes#
Product / Services"
Marketing"
Sales"
HR" Finance"
Procurement" Shared Services"
Service"
Product / Services"
Marketing"
Sales"
HR" Finance"
Procurement" Shared Services"
Service"
Slide 11!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
3. Unify and optimized the external interfaces to customers and partners for a seamless and optimal experience"
! Based on the unified data view build a consistent external interface and customer experience throughout channels and across all use cases#
! Improve the User Experience with new services and tools enabled by integrating data sources, digital technologies and cross-silo use cases#
! Through a unified (digital) communication strategy leverage new media faster and more effectively (e.g. social) #
Product / Services"
Marketing"
Sales"
HR"
Procurement"
Shared Services"
Product / Services"
Marketing"
Sales"
HR"
Procurement"
Shared Services"
Customers#
Partners#
Suppliers#
Customers#
Partners#
Suppliers#
Slide 12!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
4. Bridge the gap between business, user experience and technology"
! Integrate the business, the user and the technology view deeper to recognize trends earlier, act faster and identify opportunities thinking from the combined views#
! Transform each unit and the general organization to be ready to handle the expectations for digitalized companies#
! Bridge the gap between strategy and execution #
Business / Functional -
Strategy"
User Experience"
Technology / IT"
Digital Strategy"
Slide 13!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Digital strategy is a necessary step in the evolvement of digital capabilities and maturity"
Corporate Strategy"
Business Strategy"
Functional Strategy""""
! No online channels or only online offerings for single functional parts (public web site, shop,…)#
#
Level 1: Unable"
Corporate Strategy"
Business Strategy"
Functional Strategy""""
Product! Marketing! Sales! IT!HR! ...!
Online#
Offline#IT# O
nline#
Offline#IT# O
nline#
Offline#IT# O
nline#
Offline#IT#O
nline#
Offline#IT#
! Separate online strategies for different but many functional parts of the company#
! Business model is not adapted to digital opportunities and threads#
Level 2: Present"
Corporate Strategy"
Business Strategy"
Digital Strategy"
Functional Strategy"
! A digital strategy integrates business, online and IT strategies#
! Business model integrates digital opportunities and threads#
Level 3: Managed"
Corporate Strategy"
Business Strategy"
Functional Strategy""""
! Digital is an integral part of the business model#
! Business model is constantly adapting and incorporating opportunities coming from digital#
Level 4: Integrated"
Slide 14!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
Best practices to create a digital strategy and start transformation"
! Many companies call this role a Chief Digital Officer (CDO)#! The CDO should report to the CEO and has his backing#! The CDO needs to have real business goals and enough budget to
develop a digital strategy #
1. Establish a clear owner responsible for the success of the digital strategy"! The CDO needs to act, manage and negotiate across all silos#! The CDO needs to own the transformation process#
#
! Use a well structured cross disciplines process to develop the digital strategy#
! The digital strategy should be business driven and user centric#
2. Develop the digital strategy in a systematic process"! It incorporates all business needs from the different parts of
your company and should be developed jointly with the respective business owners#
! Implementing a digital strategy should not be a one of project but the start of a sustaining change in your company. Therefore:#
! Change the organizational structure as needed (in the long term org structure defines solutions and therefore customer experience)#
3. Implement sustaining change"! Kick off a cultural shift. Digital Business is very much about
mindset and culture.#! Understand that it is the beginning as the world has changed
and won’t return to the old status ever!#
Slide 16!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
! End-2-End Digital Strategy Consulting #
! Business result driven & User Centric #
! Multidisciplinary by design#
The leader in digital strategy!
Services & Consulting for
Digital Leadership
! We are the only firm that puts HR where it needs to be: right at the core of the business#
! Supporting firms with freelancers, temps, interims-management and permanent employees#
People Services
Digital Leadership
HR is a business function!
© Copyright 2012 - 2014 Digital Leadership GmbH! Slide 17!Digital Leadership
About Digital Leadership Services and consulting!
17#
Our offering!! Multichannel E-Commerce, Internet, Intranet and
E-Business Applications#! Strategy development & business model design #! Product definition & management#! User experience, brand & digital communication#
What makes us unique!! We are the only company that offers a holistic approach to
digital strategy: the Digital Leadership Strategy Framework!! We support you end to end from strategy to go-Live and
including all relevant disciplines#! With a single point of focus, we can provide an expert team
bridging all disciplines with a wealth of expertise in their respective fields#
Our mission!! Focus on digital strategy projects – particularly on relaunches in the
Financial Services industry#! We have been founded to support clients at the very beginning because
results fade with erring objectives and incorrect scoping#! Our focus is on strategy definition, UX, requirements collection and
correct scoping #
Concepts#Strategy#
Requirements #User Experience#
Digital Leadership Strategy Framework#
Slide 18!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
!
We make you successful by leveraging our unique Digital Leadership Strategy Framework™"
The Digital Leadership Strategy LandscapeServices & Consulting for
Digital LeadershipDescription: Summary of key artefacts, jointly summarizing the cornerstone of a digital strategy that are to be created during a relaunch and to be maintained by governance.
Project: The Digital Strategy Framework
Subject: The Digital Strategy Landscape
Version: 3.2 (Jan 2014)
Author & Copyright: Digital Leadership GmbH
GOVERNANCE OPERATIONS
PRODUCT
CONTEXT DRIVERS
Segmentation
User Needs
Use Cases & User Journey
Business Strategy
Stakeholderobjectives
Quantified Benefits
Business Model
Business Objectives
Governance Model
OrganisationalCapabilities
Existing Operational Model
Sourcing Strategy
Partner Map
Current IT Landscape
Field of Competition
Market trends
Current Product Performance
Vision
Project Motivation Statement
MeasureableBusiness Results
Pricing Model
Business Case
Defined Funding
Defined Maintenance Costs
Defined Develop-ment Costs
Defined Operating Costs
Expected Sales
Community Approach
Service Design
Supporting Products
Channel Strategy
Target devices
Positioning
Integrated MarComs Strategy
Target Architecture
Target Technologies
Target Platform
IntegrationArchitecture
User Experience
Interaction Design
Media Presentation
Brand
Design
Styleguide
Modules & Templates
Multi-Device Concept
Navigation Concept
Personalization Concept
Internationaliza-tion Concept
Structure Migra-tion Approach
Content Strategy
Content Model
Content Migration Approach
Scope Landscape
Functional Scope
Non Functional Scope
RequirementsBacklog
Governance structure
Change plan
Communication & trainings plan
Organisationalstructure
Roadmap Project plan
QA approach Internal capability building
Software Develop-ment Approach
Risk Management
KPI Framework Performance Measurement
Continous improv. Approach
Multivariant Testing
Analytics Operations SLAs IT Operating Model
Business Processes & Workflows
Promotional Contents
Promotional Media
Governance Product Development Measurement & Optimization Platform Operations
Channels & Ecosystem Digital MarketingTechnologyPerceptionInformation ArchitectureContentScope
Customer Needs Business objectives Operational Context Business Context Project definition Financials
The Digital Leadership Strategy LandscapeServices & Consulting for
Digital LeadershipDescription: Summary of key artefacts, jointly summarizing the cornerstone of a digital strategy that are to be created during a relaunch and to be maintained by governance.
Project: The Digital Strategy Framework
Subject: The Digital Strategy Landscape
Version: 3.2 (Jan 2014)
Author & Copyright: Digital Leadership GmbH
GOVERNANCE OPERATIONS
PRODUCT
CONTEXT DRIVERS
Business#
Technology#
Brand#
User Experience# !
! Our focus is a multidisciplinary approach to strategy definition, UX, requirements definition, correct scoping and prioritization!
! Our own unique Digital Leadership Strategy Framework minimizes delivery risk "
! The framework has matured over years in outstanding projects and inputs from various industry leaders !
! The framework offers unique breadth covering all relevant factors from business aspects, customer experience, brand and marketing to technology, project management, operations and governance!
! The framework offers 100 out of the box deliverables and templates, processes and best practices to increase efficiency and quality !
Slide 19!Digital Leadership © Copyright 2014 Digital Leadership GmbH!
We’ll take you to the top."
Stefan F. Dieffenbacher!Executive MBA, PMP, CPM, Scrum Master!Managing Director!
Digital Leadership GmbH!Landsberger Straße 217!D-80687 München!
+49 (0)176 / 638 020 11!+49 (0)89 / 748 600 [email protected]!www.digital-leadership.net!!
mobile:!office:!
e-mail:!Internet:!
Alexander Schmid!Dipl.-Inform. (FH)!Partner!
Digital Leadership GmbH!Landsberger Straße 217!D-80687 München!
+49 152 / 215 65 847 !+49 (0)89 / 748 600 [email protected]!www.digital-leadership.net!!
mobile:!office:!
e-mail:!Internet:!
We’d like to get to know you and answer your questions. !
For more information on our framework and to discuss your challenges, please get in touch with us for a free initial consultation! We deliver business value!!