Digital Strategy Formulation Session 2
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Questions and Answers

Which factor contributes to competitive advantage through digital transformation?

  • Leveraging digital technologies to enhance customer intimacy (correct)
  • Focus on traditional marketing methods
  • Improving operational efficiency through outdated practices
  • Limiting product offerings to a local market

What is a key element of operational excellence through technology?

  • Focusing solely on physical product quality
  • Utilizing IT to streamline processes and improve efficiency (correct)
  • Ignoring changes in customer behavior
  • Maintaining a rigid organizational structure

How can companies enhance customer experience in a digital strategy?

  • By using data insights to personalize interactions (correct)
  • By standardizing all customer interactions
  • By decreasing customer engagement channels
  • By focusing solely on the price of products

What does business model reinvention typically involve?

<p>Re-evaluating market needs and organizational structure (A)</p> Signup and view all the answers

What is crucial for setting up measurable outcomes in a digital strategy?

<p>Defining clear metrics aligned with strategic goals (D)</p> Signup and view all the answers

What is a key factor that has reshaped the hospitality industry according to the content?

<p>Substitution of traditional hotels with shared accommodation (D)</p> Signup and view all the answers

Which company transitioned from traditional film to cosmetics, demonstrating business model reinvention?

<p>Fujifilm (A)</p> Signup and view all the answers

What digital innovation did Volvo implement to enhance its customer interaction?

<p>Push-to-talk button for direct communication (D)</p> Signup and view all the answers

Which aspect of digital transformation focuses on understanding customer expectations through data?

<p>Data analytics (A)</p> Signup and view all the answers

What is the main threat to traditional banks as mentioned in the content?

<p>Fintech companies entering the market (A)</p> Signup and view all the answers

Which company ventured into creating a digital business unit known as Nike+?

<p>Nike (C)</p> Signup and view all the answers

What is one result of savvy customers using digital technologies in banking?

<p>Changing expectations for banking interactions (A)</p> Signup and view all the answers

How can banks create a competitive advantage through digital strategies?

<p>By enabling innovative services through technology (B)</p> Signup and view all the answers

What is one of the reasons companies might choose to undergo digital transformation?

<p>To respond to a strategic opportunity or a threat (B)</p> Signup and view all the answers

Which approach is NOT categorized as a way to enrich existing business models?

<p>Limiting product offerings (A)</p> Signup and view all the answers

What strategy might Ravensburger pursue to defend their position as the regional top provider?

<p>Enhancing customer interaction and experience (B)</p> Signup and view all the answers

How might digital technologies create value for customers?

<p>By proposing new digital services and experiences (C)</p> Signup and view all the answers

Which option is NOT one of the three ways companies can use digital technologies to transform their business?

<p>Outsourcing customer service (B)</p> Signup and view all the answers

What is a key strategy used by Burberry to create competitive advantage?

<p>Creating a compelling customer experience (B)</p> Signup and view all the answers

Which of the following is an example of business model reinvention mentioned?

<p>Online gaming and ebooks (C)</p> Signup and view all the answers

Which benefit is associated with focusing on operational excellence through technology?

<p>Addressing inefficiencies in processes (A)</p> Signup and view all the answers

What is meant by 'exploiting selected digital opportunities'?

<p>Leveraging digital technologies to offer new services (D)</p> Signup and view all the answers

What should companies consider when reinventing their business model?

<p>Substituting products and services under digital threats (A)</p> Signup and view all the answers

Which trigger is essential for starting a digital transformation process?

<p>A strategic decision or competitive threat (D)</p> Signup and view all the answers

What role does AI play in creating competitive advantage?

<p>AI helps in data analysis to enhance decision making (D)</p> Signup and view all the answers

What aspect of operational excellence is improved through the use of digital technologies?

<p>Enhanced performance monitoring and analysis (D)</p> Signup and view all the answers

What is a key benefit of enhancing customer experience in a digital strategy?

<p>Increased customer loyalty and retention (A)</p> Signup and view all the answers

How can companies enhance customer experience with digital technologies?

<p>Strategically use data and analytics (C)</p> Signup and view all the answers

Which of the following strategies focuses on developing new business areas?

<p>Diversification into digital services (C)</p> Signup and view all the answers

Which characteristic is crucial for achieving operational excellence?

<p>Standardization and efficiency (A)</p> Signup and view all the answers

What is a significant risk of failing to reinvent the business model?

<p>Disruption from digital threats (C)</p> Signup and view all the answers

Which of the following is an objective of using digital technologies in enhancing customer experience?

<p>Adapting the organization to meet customer requirements (B)</p> Signup and view all the answers

In what way can a company disrupt its market effectively?

<p>By reinventing its business model before disruptions occur (C)</p> Signup and view all the answers

Flashcards

Digital Transformation

Fundamental change in how companies operate, involving significant use of technology to improve customer experience and efficiency.

Substitution Products/Services

Companies shifting from one product or service to a different one; often due to demand shifts or market competition.

Reconfiguring Value Delivery

Changing how a company provides value to its customers, often by adopting new business models to target specific customer needs.

Digital Business Unit

A dedicated section of a company focused on developing and implementing solutions using digital technologies.

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Customer Intimacy

Deep understanding of customer needs and preferences leading to tailored products and services.

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Operational Excellence

Achieving the highest efficiency and effectiveness in company operations.

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Competitive Advantage

Distinctive features or strategies that allow a company to outperform competitors and gain a larger market share.

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Digital Disruption Drivers

Factors (e.g., customer expectations, competition, technology advancements) driving fundamental changes in industries.

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Digital Transformation

Using digital technologies to change a business, its processes or customer experience.

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Customer Experience Enhancement

Improving how customers interact with a business using digital channels and data.

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Operational Excellence

Using technology to improve business processes and reduce wasted time or resources.

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Reinventing Business Model

Creating new products and services, or radically changing how a business delivers value to consumers.

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Competitive Advantage

Something a company does better than competitors, often through technology.

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Digital Strategy

A plan to use electronic technologies to achieve business objectives like customer satisfaction or profitability.

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Burberry Example

A case study where Burberry successfully used digital channels to enhance the customer experience.

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UPS Example

A case study highlighting operational excellence in logistics achieved through advanced technology.

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AI driven advantage

Leveraging artificial intelligence to gain a competitive edge in the market.

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Business Model Innovation

Creating new digital business models or adapting existing ones to meet new customer values and needs.

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Strategic Digital Choice (P7S1)

A deliberate decision to leverage digital technologies to gain competitive advantage.

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Decreasing Newspaper Sales

Falling demand for print newspapers due to technological advancements, forcing companies to adapt.

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Digital Opportunities (Ravensburger)

Utilizing digital tools to enhance core products and develop new services.

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Mittelbayerische's Approach

Focus on enriching local news and information delivery through digital enhancements.

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New Business Model (Ravensburger)

Introducing online gaming and ebooks to diversify offerings

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Digital Ambition (P7S1)

Determining the scope and level of digital integration for a company.

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Competitive Advantage (P7S1)

Strategies that help companies outperform peers in their industry.

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Customer Experience Enhancement

Improving how customers interact with a company's products/services, to build customer loyalty and satisfaction

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Diversification of Business

Expanding product offerings to enter new markets and reduce reliance on a single product line.

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Digital Transformation Triggers

Factors that push a company to adopt new digital strategies, either through strategic choice or necessity (threat).

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Digital Transformation Outcomes

Measurable results from implementing digital improvements. They include improved customer relationships, competitive advantages, and operational efficiencies, etc.

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Digital Strategy Definition

Clarifying the digital future, scope, and how the company will leverage IT to achieve its strategic goals; identifying necessary adjustments in business models, processes, and employee skills.

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Ambidexterity

The capability to adapt to digital changes and excel in both the existing market and new emerging trends.

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Digital Drivers

Factors propelling digital change. These are new market rules & opportunities enabled by technology advancements.

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Customer Intimacy (Digital)

Deep customer understanding, leading to customized services and products enabled by digital technologies.

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Study Notes

Session 2: Digital Strategy Formulation

  • Session is part of a two-year MSc in Digital Business
  • Course coordinator is Nabila BOUKEF Ph.D, Associate Professor in Information Systems and Digital Transformation at SKEMA Business School
  • Questions addressed include:
    • How can digital transformation create a competitive advantage?
    • How to formulate a digital strategy?

Drivers of Digital Transformation

  • Analyzing new rules of the game & opportunities enabled by digital technologies
  • Creating competitive advantage with digital technologies
  • Strategy approach: adapting strategy with the constraints of the environment
  • Digital growth: creating sustainable competitive advantage
  • Transforming the business with digital technologies
  • Transforming the processes
  • Digital capabilities: investing in digital technologies
  • Digital leadership: transforming the organization and managing the ecosystem

Outline for this Session

  • Competitive advantage enabled by digital strategy
  • Create a competitive advantage with AI
  • Formulate a digital strategy
  • Conclusion

Types of Ambitions for Digital Transformation

  • Enhancing customer experience
    • Use new channels to enhance customer reach and engagement
    • Strategic use of data and analytics to create customer intimacy
    • Adapt the organization to meet customer requirements
    • Continuous improvements
  • Focusing on operational excellence
    • Use technology to address inefficiencies in processes
    • Hardly copied by competitors
  • Reinventing the business model
    • Reinventing industry (disrupt before being disrupted)
    • Substitution of products and services
    • Creating new digital businesses
    • Reconfiguring value delivery models
    • Rethinking value proposition to meet new needs

Examples of Companies

  • Burberry: created a competitive advantage by creating a compelling customer experience across all channels
  • UPS: competitive advantage based on standardization and operational efficiency.
  • Airbnb: reinvented the hospitality industry
  • Fujifilm: reinvented company by switching from film to cosmetics
  • Nike: created a new digital business unit (Nike+)
  • Volvo: transformed its business model from B2B to B2B2C
  • DBS (case study): rethinking value proposition to address new needs

Drivers of Digital Transformation (Banking Industry)

  • Savvy customers:
    • Using digital technologies for banking interactions
    • Visiting banks less frequently
  • Competition from other banks:
    • Fintech companies
  • Data, innovation, value:
    • New opportunities enabled by analytics
    • Faster innovation process
    • Evolving value from digital technologies (e.g., mobile banking)

How to Formulate a Digital Strategy

  • Define digital ambition
    • How radically different is the future?
    • What's the scope of the digital transformation?
    • Leverage IT for ambition
  • Identify changes to be made
    • Business model
    • Skills
    • Organizational structure
  • Set measurable outcomes
    • Measurable benefits (company & employees)
  • Make it evolve

Key Success Factors

  • Top management support
  • Existing capabilities
  • Leadership (one of the leading TV enterprises)
  • Focusing on regional content and offerings
  • Brand awareness
  • Higher quality of content

Conclusion

  • Competitive advantage from digital transformation is through customer intimacy, operational excellence, reinventing business models.
  • Use of digital technologies for strategic advantages in businesses
  • Importance of defining a clear digital ambition, identifying necessary changes, setting measurable outcomes and evolving strategy

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Related Documents

Digital Strategy Formulation (SKEMA Business School) PDF

Description

This quiz focuses on key concepts from Session 2 of the MSc in Digital Business, led by Dr. Nabila Boukef. Participants will explore how digital transformation can create competitive advantages and the effective formulation of a digital strategy. Engage with the critical drivers of digital transformation and their implications for business growth.

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