Nowadays, many companies plan and execute digital
strategies to compete in a competitive environment, but fail. And the reason is
ignorance of digital evolution and its potential impact on the company revenues
or indeed survival. In recent years, digital strategies took a major change and
if you are not willing to adapt to those changes, you may lose the game.
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| Lameen Witter |
According to expert Lameen Witter,
before you frame digital strategies, it is very important to understand why
most digital strategies fail.
Vague Definition
Digital strategy is misinterpreted by most companies.
Some associate it with a few digital projects or marketing. Digital is actually
a free ability to connect multiple devices, people and services universally.
Soon with IOT, it would bring more surprises and innovation. However, due to
the misinterpreting the definition of digital, it will be difficult for a
company to link the strategy to their core business.
Misinterpret
The Economic Of Digital
Digital is abolishing 'economic rent' which is revenue
in excess of the cost of capital. Unbundling profitable services are allowing
customers to buy only the things they are willing to buy. They have unlimited
choice and information. Hyper-scale is minimal expenses to almost zero. For
instance, to include a store it costs Wal-Mart millions. While Jack Ma of
Alibaba can do likewise with one server. Therefore the main organizations can
rule the market and take a lot of the benefits.
Assumption That threats will come only from
new players
If you think that
the real threat comes from the new entrants and, you might be wrong. Often the
real challenge comes when a smart dominant industry player is aiming to
self-cannibalize and disrupt the current situation. According to experts,
incumbents moving forward with confidence can achieve significant share and
push an industry to the peak.
Overlooking
Ecosystem Platforms
Traditional strategies that ignore the ecosystem
platform are likely to face many challenges. Ecosystem platform allows digital
players to compete and lead in the industry and sector borders. Amazon has
reached to new heights from selling books to selling almost everything.
Similarly, the tech giants like Alibaba has created platform ecosystems that
are allowing them to grow into financial sectors and many other sectors. No
doubt, these platform plays can evolve the dynamic of the whole business sector
in a short period of time.
Lost The
Duality Of Digital
According to many leading organizations, the digital
revolution is all about searching for something new. While searching for or
working on a new business model, they overlook the need to digitize their
current business. Disruption is irregular, and ignoring the existing business
is not something most will choose. The pressure of digital means that
businesses will need to adapt and repeat to achieve success.
Final Words
According to Lameen Witter, these are the reasons why most digital strategies
fail. Therefore, it is advisable to consider these pitfalls before framing your
digital strategies. After all, who doesn’t want a win-win situation in the
competitive
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