Too often I hear the term ‘Digital Strategy’ used as if it were an outcome, some discrete set of activities to be completed.
To my mind, this is a misuse of the term.
As it is usually used, the word ‘Digital’ is all about the devices, the technology, whereas the value in digital is elsewhere. It is in the ability to do things, and get things done, differently, more quickly, efficiently, and in a distributed manner by those best able to complete the activity with the minimum of organisational friction.
Digital technology is a toolbox enabling new business models, greater understanding of customers, and the ability to visualise and communicate ideas clearly. It is not about the RFID tags, VR, and all the other enablers of digital, it is the outcomes that count.
Your strategy may be enabled by digital, but you do not need a digital strategy any more than you need a telephone strategy. They are both just tools to be leveraged, the challenge is to recognise the nail, and grab the right hammer for the job from the toolbox.
Management of these changes is confronting, there is not much precedent to guide you. While there is a lot of advice around, usually it is given by those with a stake in the outcome, so caveat emptor. However, it seems to me that there are a few simple parameters worth considering.
Functional Silo thinking is poison. The communication enabled by digital is inherently cross functional, better reflecting the way customers and suppliers see us and want to interact. Functional silos have little to do with optimised outcomes anymore.
One step at a time. While the pace of change is getting faster, and the pressure to keep up increasing, we all know what happens when we try and run down a hill really fast. We end up falling arse over tit. Matching the speed of change to the pace at which your enterprise can absorb the changes is pretty sensible. Of course, if you are the slowest in the competing pack, it may be better to get out while you can.
Digital is a team game. Hand balling digital responsibility to the IT people is a mistake, you will end up getting what they think you might need. The real challenge is engagement of people not really focussed on digital. The primary example is in the space of marketing automation. Suddenly it is exploding, way beyond the capabilities and experience of most marketing people, who are nevertheless now investing more in tech than the IT people. It is essential that the right capabilities are built in the right places. Finally, everyone affected, which is everyone, needs to be in on the secret, with all the options, challenges, and opportunities transparent. The unknown is the father of all sorts of ugly children.
Think long term. Digital transformations are not just about which software you will install to automate a process. It is more about what the business may look like in 5, 10 years, and what steps do you need to take over that time to remain relevant to customers.
Long live strategic thinking!
