According to Nigel Fenwick, vice president and principal analyst at Forrester Research, only 26 percent of executives believe their company fully understands how digital strategy can create value. In an article for CIO UK, Fenwick explains the steps necessary to go beyond the abstract and forge a digital strategy that actually works.
It’s a Team Effort
No one genius can make digital strategy just happen in the business. It requires the CIO to team up with a full range of other executives to address gaps in hiring, culture, and technology that hinder strategy. Some early wins in the digital arena have included the “bolt-on” strategy, where a digital component is added to existing products and services, but this is necessarily only the beginning. Moving forward, digital must be part of the core experience from the outset. Fenwick encourages that businesses become digital “predators” before they become digital “prey.” To this end, he shares three of what Forrester considers major success factors:
- Clear executive leadership
- Embodying a digital culture
- Making employees understand metrics
Business leaders understand that new value often does not generate in a vacuum, not even in digital; existing revenue may be cannibalized in the pursuit of building digital alternatives. However, assuming such a change is for the best, the CEO must reset performance expectations according to the new vision. Likewise, the company culture must be up to the challenge of thinking digitally with the executives. It is the only way to avoid endless bolt-on scenarios. And lastly, about metrics, Fenwick has this to say:
Employees connect to the culture through the metrics used to measure their success: Metrics are a proxy for what matters most to senior management. But the measurement of success varies widely between marketing, tech management, and business unit leaders. This creates conflict and confusion in your business as employees grapple with trying to work together toward customer outcomes while being measured on completely different success metrics. CIOs need to align their team’s metrics to those of business-unit leaders.
If you want to know the future of business, this is it right here. You had best become a predator while there is still time. You can view the original article here: http://www.cio.co.uk/it-strategy/creating-successful-digital-business-strategy-3638262/