Another common driver of digital strategy is the need for business innovation.
Organisations are looking to the examples set by tech-enabled businesses like Amazon, Uber and Netflix.
They understand that to stay competitive in a fast- changing market, they must be able to deliver innovative new digital products and services.
This innovation may be manifested in the nature of the products and services themselves, and also in their delivery method, core value proposition and business model.
For example, Amazon embodied this innovative quality when it reimagined the hosting of its online retailing by setting up its own cloud computing platform. It then launched Amazon Web Services (AWS) as a B2B tech offering in its own right — one which soon became more profitable than the original retail business. Another Amazon innovation, its digital advertising business, is now even more profitable than either of these.
Transforming your existing physical product or service to a digital form is an effective way to be a disruptive industry innovator—rather than a disrupted dinosaur. Netflix successfully achieved this when it transformed from being a “DVD rental by post” company, to a paradigm-shifting subscription video streaming platform. Netflix also rode a larger wave of innovation enabled by fast networks, mobile devices and apps.
To drive innovation, your digital strategy must overcome internal resistance to change in your organisation. You should use data-driven Insights on your business and its market ecosystem to guide your decisions. You need the bravery to experiment with new ideas—but also be prepared to “fail fast”, learn and move ahead to success.