Digital is not just about technology; it signifies a fundamental transformation of business models, economic fundamentals, and organisational structures. It is a holistic shift, requiring an integrated approach. Digital’s three attributes – creating value at new frontiers, creating value in processes, and building foundational capabilities – shape the core of business strategy.
Creating value at new frontiers involves developing new businesses in untapped areas. This could mean creating new products or services or entering new sectors or geographies.
Creating value in processes involves using digital tools to improve operations and customer experiences. This could include streamlining processes, improving decision-making, or enhancing customer interaction.
Building foundational capabilities involves the infrastructure that allows businesses to operate in a digital world. This could include systems, processes, and assets, as well as the skills, culture, and alignment of the organisation.
A successful digital strategy, therefore, requires a balance of these three attributes. It demands a commitment to transforming the entire organisation, not just individual departments or functions. It necessitates a willingness to experiment, learn, and adapt. And it requires an understanding that digital is not just a tool, but a fundamental shift in the way businesses operate.
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