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Digital Business Strategy - Coggle Diagram
Digital Business Strategy
Definition of Strategy
Future direction and actions of a company defined as approaches to achieve specific objectives
Digital business strategy
Definition of the approach by which applications of internal and external electronic communications can support and influence business strategy.
Strategy
Defines how we will meet our objectives
Sets allocation of resources to meet goals
Selects preferred strategic option to compete within a market
Provides a long-term plan for the development of the organisation
Sell-side vs Buy-side strategy
Sell-side
Strategy should drive for online contribution percentage
Example
Hit our channel leads and sales targets
Acquisition, Conversion, Retention, Service, Profitability
Communicate benefits of using this channel
Prioritize products available through channel
Prioritize audiences targeted through channel
Select partners for this channel
Is a channel strategy
Buy-side
Is about maximizing operational efficiencies while improving customer service quality
Operational efficiency KPIs should drive the strategy
Example
Automate internal processes
Link internal resource management systems with external purchasing systems
Prioritize suppliers/partners collaborating using this channel
Prioritize applications for E-SCM
E-Channel
A company should set specific objectives
Develop specific differential strategies for communicating with its customers and partners through e-media
Define specific goals and approaches
Example
Mobile commerce strategies
Social media strategy
Social CRM strategy
Supply chain or enterprise resource planning strategy
E-procurement strategy
Strategy Process Model
A framework for approaching strategy development
Logical sequence to follow to ensure inclusion of all key activities
Common element
Internal and external environment scanning
A clear statement of vision and objectives
Can be broken down to option generation, evaluation and selection
Implementation
Control is required
Illustration
Strategy Process Model in Details
Strategic Analysis
Collection and review of information about an organization’s internal processes and resources and external marketplace factors
Involves reviews of
Resources and processes
Competitive environment
Wider environment
Techniques of Strategic Analysis
Portfolio
Assess current information systems capability and also to inform future strategies
SWOT
Analyze organization's internal resources in terms of strength and weakness and match them against the external environment in terms of opportunities and threats
Demand
Assessment of the demand for digital business services amongst existing and potential customer segments
Porter’s Five Forces
A framework that attempts to analyze the level of competition within an industry and business strategy development
It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry
Strategic Objective
Concise summary of the scope and broad aims of a company’s future digital business activities
Including the explanation of how these activities will contribute to the organization and support its core business activities
Steps
Vision & Mission
Mission: Overriding purpose in line with the values or expectations of stakeholders
Vision: Desired future state: the aspiration of the organization
Objective Setting item
SMART objective
S - specific
M - measurable
A - achievable
R - relevant
T - time-related
Objectives
Strategies to achieve goals
Key Performance Indicators (KPI)
Online revenue contribution
Strategic Definition
The development of strategic plans (long range) to exploit opportunities and manage risks in the environment in light of corporate strengths and weaknesses
There are six key digital business strategic decisions need to be considered
Strategic Implementation
Detailed short-term plans on “how do we do it”: includes strategic planning, strategic execution and strategic control
Six key Digital Business Strategic Decisions
Digital business channel priorities
Percentage of target market who can be persuaded to migrate to use e-channel
Offer high sales volume, reduce costs for customer acquisition and retention
Organizational Restructuring
How company should restructure in order to achieve the priorities set for digital business
Business, service and revenue models
Review opportunities from new business and revenue models
Marketplace restructuring
Consider options created through disintermediation and re-intermediation
Disintermediation vs Re-intermediation
Disintermediation
The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain
Re-intermediation
The process whereby intermediaries (either new ones or those that had been disintermediated) take on new intermediary roles
Market and product development strategies
Decide on which market to target
Positioning and differentiation strategies
Review the extent to which increases in product and service quality can be matched by decreases in price and time
