Digital Business Transformation Strategies

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Questions and Answers

Which of the following best describes the strategy Fujifilm adopted in response to the digital threat?

Creating a customer intimacy

Reinventing its business model by substituting its products

Focusing on operational excellence

Reinventing its business model by creating new digital business (correct)

What is the best approach if your products are threatened by digital alternatives?

Adopt a 'wait and see' strategy

Ignore the threat and focus on existing product development

Partner with other companies

Consider replacing your products (correct)

What does the term 'ambidexterity' refer to in a business context?

Balancing exploration of new opportunities with exploitation of existing capabilities (correct)

Rethinking value proposition to meet new needs

Operating solely in the current market without changes

Creating a network effect for product enhancement

How should companies define their digital strategy according to the new rules of the game?

By considering different strategy approaches based on environmental constraints Signup and view all the answers

What constitutes an old source of competitive advantage?

Economies of scale Signup and view all the answers

Which option is NOT a suggested strategy for companies facing digital threats?

Ignore the digital transformation Signup and view all the answers

What is considered a key factor in remaining competitive in the digital era?

Thinking about digital growth and adapting to new technologies Signup and view all the answers

What might a company do as part of its strategy to reinforce its presence in the current market?

Rethink its value propositions to meet new customer needs Signup and view all the answers

What is a characteristic of the classical approach to strategy?

It operates well in highly regulated and stable industries. Signup and view all the answers

When should the adaptive approach be employed?

In the face of technological disruptions. Signup and view all the answers

What primary goal does the renewal strategy aim to achieve?

To ensure the company’s survival amid threats. Signup and view all the answers

The shaping approach focuses on which of the following?

Reshaping the environment through collaboration. Signup and view all the answers

Which statement best describes the visionary approach?

It is used to create or recreate industries using new technologies. Signup and view all the answers

Which of the following elements is NOT part of the classical approach's strategy-making process?

Experiment Signup and view all the answers

What is an essential requirement of companies using the adaptive approach?

A focus on flexibility and experimentation. Signup and view all the answers

In which scenario is the shaping approach most likely to be effective?

In an industry with unpredictable changes and opportunities. Signup and view all the answers

What is the primary reason companies should anticipate digital disruption?

To find new digital growth opportunities Signup and view all the answers

Which of the following is NOT a characteristic of current customers?

More loyal Signup and view all the answers

What is meant by achieving ambidexterity in a company?

Balancing exploration and exploitation Signup and view all the answers

What driver of digital transformation does the ability to quickly test new features relate to?

Experimentation Signup and view all the answers

Which approach focuses on customer intimacy as a strategy for digital growth?

Classical approach Signup and view all the answers

Which session focuses on building digital capabilities and creating digital leadership?

Session 7 Signup and view all the answers

Why is it important for companies to continuously adjust resource allocation?

To respond to business environment changes Signup and view all the answers

What is a key characteristic of digital leadership?

Transforming the organization and managing ecosystems Signup and view all the answers

What is a key aspect of ambidexterity strategy discussed in the course?

Balancing exploration and exploitation Signup and view all the answers

What does the framework of D. Rogers include as essential elements for competitive strategy?

Data, customers, value, innovation, competition Signup and view all the answers

What does adapting strategy with the constraints of the environment aim to achieve?

Create a sustainable competitive advantage Signup and view all the answers

What defines the 'perpetual success trap' companies should avoid?

Overreliance on established success Signup and view all the answers

Which of the following statements aligns with the conclusion regarding strategy in the digital era?

Strategy must evolve to remain effective. Signup and view all the answers

Which digital transformation strategy involves acquiring, partnering, or incubating new entities?

Shaping approach Signup and view all the answers

Which aspect is crucial for transforming business processes with digital technologies?

Investing in digital capabilities Signup and view all the answers

What is a primary goal of creating a competitive advantage with digital technologies?

To improve overall market competitiveness Signup and view all the answers

What is the primary risk associated with the success trap?

It may prevent exploration of new business strategies. Signup and view all the answers

What does the perpetual search trap indicate about a company's strategy?

The company continuously seeks new ideas without successful monetization. Signup and view all the answers

Which strategy is considered most common for achieving ambidexterity?

Separation into distinct teams Signup and view all the answers

What is the main goal of achieving an ambidexterity strategy in firms?

To balance between exploitative and explorative innovation. Signup and view all the answers

Which option best describes a switching strategy in ambidexterity?

Enabling rapid flow of information across the organization. Signup and view all the answers

In which type of environment is a separation strategy for ambidexterity most suited?

Relatively stable but diverse environments. Signup and view all the answers

What is a potential disadvantage of using a separation strategy?

It may impede information flow between units. Signup and view all the answers

Which of the following best exemplifies the ambidexterity concept?

Firms that balance old and new ideas effectively. Signup and view all the answers

What is a common issue companies face when adopting a self-organizing approach?

Resistance to slow response Signup and view all the answers

What is essential for a company to support a successful ambidexterity strategy?

Effective use of business intelligence and analytics Signup and view all the answers

In a diverse and dynamic environment, what is a key approach for sourcing ideas?

Open ecosystem sourcing Signup and view all the answers

How do companies maintain the balance of exploration and exploitation in resource allocation?

Through continuous adjustment based on environmental evolution Signup and view all the answers

What role does timely and accurate business intelligence play for organizations?

Facilitates continuous monitoring and adjustment of business processes Signup and view all the answers

Which of the following is an example of acquisition as a strategy for sourcing ideas?

Videdressing acquisition by Leboncoin Signup and view all the answers

What is a primary use of business intelligence and analytics (BI & A) in organizations?

To improve knowledge acquisition and business decisions Signup and view all the answers

What is a significant benefit of continuously adding functionality to a mobile app?

Creating meaningful product features and customer experiences Signup and view all the answers

Study Notes

Session 3: Strategy Approaches and Ambidexterity Strategy

Nabila BOUKEF, Ph.D., Associate Professor at SKEMA Business School, coordinated the session, focusing on digital business transformation.
The session's objective was to discuss strategy approaches and ambidexterity in the digital age.

Digital Journey

Businesses need to define their digital strategies within the changing rules of the digital era.
Companies must remain competitive by understanding digital growth.
Strategic approaches vary depending on environmental constraints.
Several methods exist for building a competitive advantage with digital technologies.

Revise and Discuss (1)

Fujifilm's traditional business models were impacted by the rise of digital photography and smart phones.
Fujifilm had to adapt, leveraging its chemical expertise in new areas like cosmetics and traditional film.
Options for Fujifilm's response included creating customer intimacy, reinventing its business model to include new digital offerings, focusing on operational excellence, and substituting existing products.

Revise and Discuss (2)

When products face digital threats, companies need to consider various strategies.
Ignoring the threat and investing more could be ineffective.
The "wait and see" approach might be too late.
Replacing or partnering with other companies are potential avenues for companies undergoing such challenges.

Revise and Discuss (3)

A business model reinvention strategy, aimed at strengthening the company's presence in its current market, can be described in several ways.
Rethinking a value proposition to meet new market demands is one option.
Ambidexterity is another approach.
Network effects and learning experiences are also possible outcomes.

Revise and Discuss (4)

Scale, transactional costs, and vertical integration can constitute classic sources of competitive advantage.

Revise and Discuss (5)

Current customers are typically connected and active.
They can contribute to the innovation process.
Customer loyalty is also an important factor.

Revise and Discuss (6)

The ability of companies to test new features quickly in the digital era, which can be observed through experimentation.

Course Schedule

A series of sessions on digital strategy, starting with rethinking strategy in the digital era, then digital strategy formulation, proceeding with strategy approaches and ambidexterity, digital platforms strategies, and differentiation strategies, among other topics.

Questions Addressed in the Session

Strategy relevance in the digital age.
Methods for ensuring digital growth.
The concluding remarks of the session.

Digital Transformation Drivers

Framework outlining digital technologies' impact on business environments.
Emphasizes the analysis of new rules, opportunities, data, customer behavior, value creation, business models, and innovation in response to digital competition.

Outline of the Session

Different strategy approaches.
Ambidexterity strategy.
Achieving ambidexterity.
Conclusion.

Strategy in a Digital Age of Disruption

A framework illustrating factors defining the changing business environments in relation to unpredictability, the ability to predict the environment, the possibility to reshaping the environment, and the capacity to ensure the survival of companies facing disruption.

Five Strategy Approaches

A discussion of various approaches needed for deploying different strategies in response to diverse business environments, like classical, adaptive, visionary, shaping, and survival.

Classical Approach

This approach is most efficient for stable, predictable markets with strong brands, high regulation, and limited technology changes.
This approach focuses on industries where the return on investment is high and there is a lower risk of disruption.
Companies that successfully follow this model include well-established brands like Coca-Cola and Shell.

Adaptive Approach

Adaptable approach is necessary when the business environment is unpredictable and hard to shape.
Adaptability is needed in the face of technological disruption.
Key characteristics include flexibility and an experimental mindset.
Brands that apply this approach include Zara.

Visionary Approach

This method helps companies find and exploit opportunities.
It is particularly beneficial for organizations operating in predictable markets where an opportunity exists to create or reinvent an industry.
Technological advancements can be used to reshape industries and manage customer dissatisfaction.
Examples of application include IKEA or UPS.

Shaping Approach

This is adopted in unpredictable marketplaces with dynamic and varied environments.
It involves a collective effort to transform industries in reaction to company-specific pressures.
Facebook is an illustrative example.

Renewal Approach

This is used when the company faces threat to its survival.
The strategy aims to ensure survival through restructuring to free up and redistribute resources to maintain or adapt.

Strategy Making Processes

A progression involving the analysis and design phases to achieve execution.

Ambidexterity

Finding a balance between exploitation (using existing knowledge) and exploration (seeking new knowledge) for superior performance.
This approach to innovation aims to introduce incremental and radical changes.
Companies like Nokia are often considered examples of enterprises that encountered failure due to not adapting to market demands.

Digital Growth (Ambidexterity)

Companies must find balance in digital growth.
Integration (switching or self-organization).
Separation (creating a separate business unit).
Ecosystem (acquisition, partnerships, incubators).

Separation

The most common technique involves separating teams to find alternative growth strategies.

Switching (Integration)

Companies requiring adaptability in dynamic environments need to employ this approach.
Companies such as Corning have successfully utilized this technique.

Self-Organizing (Integration)

Useful for groups requiring adaptability and responsiveness.
Organizations such as Haier have successfully implemented this approach.

Ecosystem (Digital Growth)

Strategies to acquire, partner and incubate resources in dynamic and diverse environments.
Specific examples include Leboncoin, Uber, and BNP Parisbas.

Business Intelligence and Analytics (BI & A)

Using information systems to gather and analyze data from both internal and external sources for better decision-making.
Timely and precise BI supports organizations in tracking and analyzing business operations, which facilitates adjustments and responsiveness to external influences.

Data and Knowledge

Data and knowledge conversion into information provides the foundation for decision-making in a company.
Crucial assets for organizations in a dynamic world.

BI & A and Ambidexterity

Businesses leverage BI and A tools to improve insight, acquire knowledge, and enhance decision-making in an ambidextrous strategy.
This synergistic relationship between BI and A with a successful ambidexterity strategy is a crucial factor for businesses to compete and grow.

Teamwork: Case Study – Ford

The study aims for students to correctly define Ford's strategic approach using the Five Strategy Palette, with justified answers.

Teamwork: Case Study - Lego

The case study analyzes Lego's strategy.

Illustration: BBVA case study

The case emphasizes using analytics to create valuable features and enhance customer experiences.

Conclusion

Summary of findings and takeaways from the session.
Emphasize the need for anticipatory behavior and avoidance of traps to enhance digital development.
The necessity of adjusting resource allocation based on evolving business environments.

Takeaways

Companies should anticipate digital disruption and create new growth strategies.
avoid perpetual search and success traps.
Companies must be ambidextrous.
The need for continuous resource allocation adjustments based on business environment changes.

What's coming up next

Session schedule summary.

SKEMA Business School

A summary of information regarding the institution.

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Description

This quiz explores strategy approaches and ambidexterity in the context of digital business transformation. Participants will learn how companies like Fujifilm adapt their strategies to remain competitive amidst the digital evolution. Delve into the strategic methods for defining a competitive advantage in the digital age.