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What is a digital strategy? Mark McDonald This question re-emerges as organizations complete their initial investments in digital technology. Much of that investment concentrated on applying new technologies to existing products, practices and processes. In that sense digital strategy was much like IT strategy — a process of selecting which technologies you will invest in and where those investments would go.
This approach to strategy results in a plan or in the digital world a roadmap. Digital strategy is not IT strategyand requires a different approach.
These investments often changed the form of interaction, with limited change to the function. Transforming the business with digital, particularly in the marketing area, makes sense in the face of changing consumer expectations, options and information.
As organizations near the end of their first digital journey and complete their initial roadmap, the question of digital strategy re-joins the executive agenda.
The next round of digital strategy setting What should be different in digital strategy? This is the first question to ask when revisiting this topic. Repeating the past is no guarantee of success, so understanding the directions for digital strategy is important.
At the highest level there are two options available. The first option calls for extending digitization by repeating the current digital playbook to cover new functions and processes.
That is the path IT took as it automated and integrated functions across the organization. Starting with ERP, the strategy repeated itself for customer relationship management, supply chain, sales force, product development and other functions.
Digitizing HR, Financial Management and other functions provide examples of strategies based on applying new technology to existing activity. Transforming activity, and therefore the business, is the second option for digital strategy.
This was an initial promise of first generation digital strategies but one that often fell back into prior IT transformation habits in the face of organizational, governance, and other legacy roadblocks.
Taking this path recognizes the work that has been done but asks the question — should digital strategy be more of the same or can it be different? It is an important distinction and a question that requires a thoughtful response. Refining the definition of digital and strategy Experience changes understanding.
Organizations have been on a power curve gaining experience concerning digital, with their understanding evolving at an exponential rate, revising the common understanding of digital. Digital is more than a set of technologies you buy. It is the abilities those technologies create. That results in a rather expansive definition of digital that over time has simplified into the following essential elements: Digital is the application of information and technology to raise human performance.Melbourne's Central Business District (CBD) and historical core north of the Yarra River, including the new, cosmopolitan Docklands to the west and the Southbank entertainment precinct on the Yarra River.
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