Digital Business Strategy Session 1

Factors that cause changes in business strategy due to digital technologies.

Fundamental changes in how businesses operate and compete in digital age.

Business abilities needed to achieve competitive advantages by using digital technologies.

Superior position in the market gained by using digital technologies.

Plan for using digital technologies to achieve business goals and objectives in the digital era.

Customers are no longer passive recipients of information, but active participants in the creation of value and innovation.

Customers interact and influence each other, creating interconnected networks that shape brands and products.

Brands are no longer solely defined by companies; customers contribute significantly to their development and evolution.

Value exchange between companies and customers is not one-way; value is created and exchanged back and forth.

Actively involving customers in the innovation and value creation process.

Large tech companies like Amazon, Facebook, and Google that dominate digital spaces.

Established businesses in their respective industries that need to adapt to digital disruption.

Individuals who constantly innovate and disrupt existing markets with new tech solutions.

In the digital world, businesses can expand their operations quickly and without significant costs.

Digital technologies reduce costs associated with transactions, like in financial services.

In the digital age, data is no longer just a tool for operational efficiency but a strategic asset for creating value and innovating.

Unlike the past where data was expensive to create, now data is constantly generated across multiple sources, from daily activities to online interactions.

Businesses are realizing the value of unstructured data, such as social media posts or reviews, alongside traditional structured data, like financial records.

The true value of data lies in integrating it across different departments and silos, breaking down traditional information barriers.

Companies are leveraging data to understand customer preferences, personalize experiences, and create tailored products and services.

How digital technologies have changed the relationship between businesses and customers, leading to new expectations and behaviors.

Digital technologies create new possibilities for companies, including faster innovation, personalized interactions, and global reach.

Traditional businesses face challenges from tech companies with vast resources and disruptive innovations.

Planning how to leverage digital technologies to achieve business goals and stand out from the competition.

Using digital tools to streamline tasks, improve efficiency, and create new ways of working within a company.

A plan that leverages digital technologies to gain a superior position in the market.

Using digital tools to improve how customers interact with your brand.

Using technology to make internal processes more efficient and effective.

Transforming how your company creates and delivers value in the digital age.

The goals companies aim to achieve by using digital technologies.

When a company shifts its focus from a declining product/service to a new one, often in a different industry. Example: Fujifilm moving from film to cosmetics.

Changing how a company reaches its customers, often by adding intermediaries or going direct. Example: Volvo shifting from a B2B model to a B2B2C model, involving both dealers and customers.

A dedicated team within a traditional company specializing in digital products and services. Example: Nike creating Nike+.

A feature enabling direct communication between customers and company operators via a single button. Example: Volvo offering direct customer support.

Factors that push companies to adopt digital technologies and strategies. Key examples include customer expectations, competition, data analytics, and innovation.

The process of using digital technologies to fundamentally change how a business operates, interacts with customers, and creates value.

Using artificial intelligence (AI) to improve processes, personalize customer experiences, and develop innovative business models, leading to a stronger position in the market.

Obstacles that prevent companies from fully implementing AI, such as lack of data, skilled personnel, or clear business objectives.

The specific goals a company aims to achieve through digital transformation. It's not just about adopting new technologies; it's about using them to reach a specific outcome.

A fundamental change in how a company creates and delivers value. This involves new ways of generating revenue, engaging with customers, or operating in the market.

The key factors that lead to successful digital transformation. This includes having a clear digital ambition, adapting to new business models, and focusing on enhancing customer experience.

A strategy suitable for stable, predictable markets with strong brands, high regulation, and limited technology change. It emphasizes analysis, planning, and execution.

A strategy for unpredictable and rapidly changing markets characterized by technological disruption. Focuses on flexibility, experimentation, and quick adaptation.

A strategy for companies that can shape or create new industries through innovation and foresight. Often involves significant technological change.

A strategy where companies collectively reshape an industry through collaboration and ecosystem building.

A strategy for companies facing existential threats. Requires a rapid and drastic transformation to adapt to a new reality.

Fujifilm, faced with the obsolescence of its traditional film business due to digital photography, transitioned to cosmetics and other areas utilizing its chemical expertise. This demonstrates a response to digital disruption.

When digital technologies threaten a business, companies need to choose an approach. Ignoring the threat, adopting a wait-and-see strategy, or proactively replacing products are common options.

A company can reinforce its position in its existing market by rethinking its value proposition to meet new customer needs. This involves adapting to changing demands and offering relevant solutions.

In the digital age, traditional sources of competitive advantage, such as economies of scale or barriers to entry, are becoming less effective. Digital technologies are disrupting these traditional advantages.

Ambidexterity refers to a company's ability to simultaneously pursue both existing business models (exploitation) and innovate with new digital approaches (exploration). This allows them to adapt and grow in the face of digital disruption.

Digital technologies enable businesses to expand their operations quickly and cost-effectively, reaching a wider audience without significant investment.

Digital technologies reduce the costs associated with transactions, like online payments or data transfer, simplifying business processes.

A company takes control of multiple stages of its value chain, from production to distribution, often leading to more efficiency and control.

Current customers are not necessarily more loyal than traditional customers. Digital tools allow customers to easily switch between brands based on their needs.

Companies can rapidly test new features or products digitally, gaining insights and feedback to refine their offerings quickly.

When a company's current success prevents it from exploring new ways of doing business, potentially leading to stagnation and decline.

When a company constantly seeks new ideas but fails to turn them into profitable products or services, leading to wasted resources and a lack of tangible results.

A common method for achieving ambidexterity where a separate team is created to focus on exploring new growth opportunities, while existing operations continue as usual.

Using ambidexterity strategies in a digital environment to find the right balance between exploiting existing digital capabilities and exploring new opportunities.

Contrary to popular belief, current customers aren't always more loyal in the digital age. Digital tools make it easy to switch brands.

Traditional strategic approaches (analyze, plan, execute) are no longer sufficient in the disruptive digital environment. Businesses need flexible, adaptable strategies to survive and thrive.

Suitable for stable markets with strong brands, high regulation, and limited tech change. Focuses on analysis, planning, and execution.

Essential when the environment is unpredictable and subject to technological disruption. Companies need to be flexible, experiment, and adapt quickly.

For companies operating in predictable industries with opportunities to create or reshape markets. Leaders are visionary and drive major changes.

Companies can reshape their environment through partnerships and ecosystem building. Collaboration drives industry change.

Exploitation involves maximizing existing resources and knowledge. Exploration involves seeking out new ideas and opportunities. A successful business needs to find a balance between the two.