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Improving operational efficiency through outdated practices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?

Re-evaluating market needs and organizational structure Signup and view all the answers

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

Defining clear metrics aligned with strategic goals Signup and view all the answers

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

Substitution of traditional hotels with shared accommodation Signup and view all the answers

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

Fujifilm Signup and view all the answers

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

Push-to-talk button for direct communication Signup and view all the answers

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

Data analytics Signup and view all the answers

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

Fintech companies entering the market Signup and view all the answers

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

Nike Signup and view all the answers

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

Changing expectations for banking interactions Signup and view all the answers

How can banks create a competitive advantage through digital strategies?

By enabling innovative services through technology Signup and view all the answers

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

To respond to a strategic opportunity or a threat Signup and view all the answers

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

Limiting product offerings Signup and view all the answers

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

Enhancing customer interaction and experience Signup and view all the answers

How might digital technologies create value for customers?

By proposing new digital services and experiences Signup and view all the answers

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

Outsourcing customer service Signup and view all the answers

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

Creating a compelling customer experience Signup and view all the answers

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

Online gaming and ebooks Signup and view all the answers

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

Addressing inefficiencies in processes Signup and view all the answers

What is meant by 'exploiting selected digital opportunities'?

Leveraging digital technologies to offer new services Signup and view all the answers

What should companies consider when reinventing their business model?

Substituting products and services under digital threats Signup and view all the answers

Which trigger is essential for starting a digital transformation process?

A strategic decision or competitive threat Signup and view all the answers

What role does AI play in creating competitive advantage?

AI helps in data analysis to enhance decision making Signup and view all the answers

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

Enhanced performance monitoring and analysis Signup and view all the answers

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

Increased customer loyalty and retention Signup and view all the answers

How can companies enhance customer experience with digital technologies?

Strategically use data and analytics Signup and view all the answers

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

Diversification into digital services Signup and view all the answers

Which characteristic is crucial for achieving operational excellence?

Standardization and efficiency Signup and view all the answers

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

Disruption from digital threats Signup and view all the answers

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

Adapting the organization to meet customer requirements Signup and view all the answers

In what way can a company disrupt its market effectively?

By reinventing its business model before disruptions occur Signup and view all the answers

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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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.