Digital capabilities are critical for companies to thrive in today’s business landscape. These capabilities can be broken down into three distinct categories: customer experience, operational process, and business model.
Customer experience hinges on utilising digital tools to understand and cater to consumer needs. This might involve leveraging data analytics to personalise offerings or deploying digital marketing strategies.
Operational processes, on the other hand, involve streamlining internal functions through digital means. This could include automating routine tasks or enhancing supply chain management with digital solutions.
The business model category refers to how companies can use digital capabilities to create new revenue streams or business models. This might involve developing digital products or services, or harnessing digital platforms for business expansion.
Building these capabilities requires a strong digital strategy, which should be informed by the company’s overall business strategy. It also requires the right talent, as well as a culture that encourages innovation and risk-taking.
It’s important to note that these capabilities are not standalone; they often intersect and reinforce each other. For instance, improving operational processes can enhance customer experience, and a strong business model can drive operational efficiency.
In summary, companies need to develop a broad range of digital capabilities to stay competitive. This involves not just adopting digital tools, but also transforming their strategies, operations, and culture to fully leverage the power of digital.
Go to source article: https://sloanreview.mit.edu/article/the-digital-capabilities-your-company-needs/