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Questions and Answers
What is one of the triggers for digital transformation mentioned in the content?
What is one of the triggers for digital transformation mentioned in the content?
Which approach is focused on reinventing the business model according to the content?
Which approach is focused on reinventing the business model according to the content?
What is one of the goals of Ravensburger in the context of digital transformation?
What is one of the goals of Ravensburger in the context of digital transformation?
What new opportunities does digital technology provide for these companies?
What new opportunities does digital technology provide for these companies?
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What is one method of creating a competitive advantage through digital transformation?
What is one method of creating a competitive advantage through digital transformation?
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What key aspect must be considered when formulating a digital strategy?
What key aspect must be considered when formulating a digital strategy?
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Which session focuses on strategies in the sharing economy?
Which session focuses on strategies in the sharing economy?
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What is emphasized in the approach to digital growth?
What is emphasized in the approach to digital growth?
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Which of the following questions is specifically addressed in Session 2?
Which of the following questions is specifically addressed in Session 2?
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Study Notes
Session 2: Digital Strategy Formulation
- This session focuses on digital strategy formulation for a two-year Master of Science (MSc) program in Digital Business at SKEMA Business School
- The course coordinator is Nabila Boukef, Ph.D., an Associate Professor in information Systems and digital transformation
- Key questions addressed in this session include: How can digital transformation create a competitive advantage? and How to formulate a digital strategy?
Drivers of Digital Transformation
- Analyzing the new rules of the game and opportunities enabled by digital technologies
- Creating a competitive advantage with digital technologies
- Strategy approach: adapting strategy with the constraints of the environment
- Digital growth: creating a sustainable competitive advantage
- Transforming business with digital technologies, transforming processes
- Digital capabilities (investing in digital technologies)
- Digital leadership (managing the ecosystem, transforming the organization)
Outline for the Session
- Competitive advantage enabled by digital strategy
- Creating a competitive advantage with AI
- Formulating a digital strategy
- Conclusion
A Clear and Transformative Ambition
- How can companies use digital technologies to transform their business?
- Three options:
- Enhancing customer experience
- Focusing on operational excellence
- Reinventing the business model
A- Enhancing Customer Experience
- Use new channels to enhance customer reach and engagement
- Strategic use of data and analytics to create customer intimacy
- Adapt organization to meet customer requirements
- Continuous improvements
Illustration: Burberry Case
- Burberry created a competitive advantage by creating a compelling customer experience
- The vision was for customers to experience the same seamless experience online as in-store, allowing them to interact with Burberry in a holistic manner.
B- Focusing on Operational Excellence
- Use technology to address inefficiencies in processes
- These methods are difficult for competitors to copy
Illustration: UPS Case
- UPS created a competitive advantage based on standardization and operational efficiency.
C- Reinventing Business Model
- Reinventing industry (disrupt before being disrupted)
- Substitute products and services (consider replacing products and services if under threat).
- Creating new digital businesses
- Reconfiguring value delivery models
- Rethinking value proposition to meet new needs (Reinforce the company's presence in its current marketplace)
Illustration: Other Cases
- Airbnb reshaped the hospitality industry
- Fujifilm's shift from film to cosmetics
- Nike's creation of Nike+
- Volvo's transformation from B2B to B2B2C
- DBS's rethinking of value propositions
Drivers of Digital Transformation
- Customers (savvy customers, new expectations, less frequent bank visits)
- Competition (new threats from fintech companies, faster innovation)
- Data (new opportunities enabled by analytics)
- Innovation (the innovation process is faster for new entrants)
- Value (value created by banks evolving thanks to digital technologies)
How to Formulate a Digital Strategy
- Define your digital ambition by answering these questions: How radically different is your digital future? What is the scope of the digital transformation? How does the company use IT to leverage its strategic ambition?
- Identify the changes to be made by considering: What needs to be changed in the Business Model, Skills needed, Organizational Structure and IT to make the changes
- Set up measurable outcomes, by answering the questions: What are the measurable benefits for the company? What are the measurable benefits for the employees?
- Make it evolve: The need to ensure digital growth (ambidexterity)
Key Success Factors
- Leadership: Top Management Support
- Existing capabilities: one of the leading TV enterprises in Europe / major players
- Strong focus on regional content and awareness
- Higher Brand Awareness, High-quality content
Conclusion
- Different options to reap the benefits of digital transformation are Customer Intimacy, Competitive advantage enabled by Digital transformation and Operational Excellence
- Important aspects for effective digital strategy formulation include identifying digital ambition, changes to be made and measurable outcomes.
- Embracing evolution in digital strategy is necessary to adapt to the dynamic digital world
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Description
This quiz focuses on the formulation of digital strategies within the context of a two-year MSc program in Digital Business at SKEMA Business School. Key concepts include leveraging digital transformation for competitive advantage and adapting strategies to environmental constraints. Join us to test your knowledge on digital capabilities and leadership.
