Digital Strategy Rethinking

Session 1: Rethinking Strategy in the Digital Era

• The session focuses on rethinking strategy in the digital era.
• The course coordinator is Nabila BOUKEF, Ph.D, an Associate Professor in information Systems and digital transformation at SKEMA Business School.
• The session explores how digital technologies are changing the rules of the game for businesses.
• The session investigates new capabilities enabled by technology.
• The session considers new opportunities to transform business using digital technologies.
• Key question addressed during session 1 is: "What has changed so far that triggers new ways of strategy thinking?"
• The session covers the new rules of the game, especially in relation to customers and competition.
• It examines the impact of new data capabilities, data as a strategic asset, and the new opportunities to transform business.
• Session 1 introduces the five domains of digital transformation: Customers, Competition, Data, Innovation, and Value.
• The session highlights the importance of adapting strategy to new constraints of the environment and creating sustainable competitive advantage in the digital age.

Course Schedule

• Session 1: Rethinking strategy in the digital era
• Session 2: Digital strategy formulation
• Session 3: Strategy approaches and ambidexterity strategy
• Session 4: Digital platforms strategies
• Session 5: Differentiation strategies and competition in the sharing economy
• Session 6: Digital strategy and Business process transformation
• Session 7: Building digital capabilities and creating digital leadership
• Session 8: Digital strategy execution in practice: Fostering innovation in the digital era

Drivers/Domains 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 to the environment's constraints.
• Digital growth: Creating a sustainable competitive advantage.
• Transform your business with digital technologies.
• Transforming the processes.
• Digital capabilities.
• Digital leadership.

Outline for this Session

• New rules of the game
  • Customers
  • Competition
• New capabilities enabled by technology
  • New data capabilities
  • Data as a strategic asset
  • New opportunities to transform business
• Conclusion

Five Domains of Digital Transformation

• Customers
• Competition
• Data
• Innovation
• Value

1. New rules of the game (Customers)

• Customers are less loyal and more active.
• Customers can be involved in the innovation process.
• Brand is co-created by the company and customers.
• A key example is Dell Inc., who prioritizes hearing directly from customers.

1.2. Competition

• Different players with varied strategies.
• Old sources of competitive advantages are vanishing.
• Companies are now facing diverse competitors.
• Examples include:
  • Digital giants (e.g., Amazon, Facebook, Google)
  • Industry incumbents who must adapt or risk failure.
  • Tech entrepreneurs who aim to innovate and disrupt the market.
• Change in competition:
  • Companies can partner (coopetition).
  • Competition is shifting from products to platforms.

2. New capabilities enabled by technology

• New data capabilities
  • Increased storage (cloud computing opportunities).
  • Increased processing power.
  • Faster communication.
• Data as a strategic asset: Data used for operations, innovative value for customers, improving decision-making, managing and optimizing business processes.
• New opportunities to transform business:
  • Speeding up the innovation process (quick tests, real-time experiments).
  • New value proposition (evolving and adapting to the market).

2.2. Data as a strategic asset

• Data use is highly focused on operations.
• Leveraging data to innovate and create value for customers.
• Examples include Stitch Fix (personal style).
• Data use for improved decision-making.
• Data use for managing and optimizing business processes, as seen in cases like Lufthansa.

Case 3: Predicting Departure Delays and Proactive Irregular situation Recovery

• Companies use data to anticipate and proactively address irregular situations.

Case 4: Predictive and Preventive Aircraft Maintenance

• Data Analytics to proactively perform maintenance.

Main Challenges

• Organizational data challenges (process changes).
• Finding personnel with the right expertise.
• Bridging data silos to create a unified view.
• Data sharing with partners.
• Cybersecurity, privacy, and consumer attitudes.

Takeaways

• D. Rogers framework is valuable for analyzing new opportunities and constraints in digital transformation.
• Companies need to understand evolving market dynamics and adapt their strategies.
• Digital technologies offer new possibilities for integration into overall strategy.

This session examines how digital technologies are reshaping business strategies. Led by Dr. Nabila Boukef, participants will explore new capabilities, the importance of data, and how to leverage digital tools for strategic transformation. Key topics include customer relations, competition, and the five domains of digital transformation.