Digital Strategy Rethinking

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Questions and Answers

What is a primary focus of the first session on strategy in the digital era?

Focusing on employee management

Rethinking strategy driven by digital transformation (correct)

Understanding traditional business models

Analyzing past market trends

Which of the following is NOT mentioned as a driver for new strategy thinking in the digital era?

The new rules of competition

Changes in customer behavior

Investment in artificial intelligence (correct)

Adapting to technology-enabled opportunities

Which strategy approach involves adapting to the constraints of the environment?

Creating digital leadership

Transforming organizational processes

Managing the ecosystem

Creating a competitive advantage with digital technologies (correct)

In the digital strategy outline, what role does digital leadership play?

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

Which of the following components is crucial for achieving digital growth?

Developing sustainable competitive advantages Signup and view all the answers

What has changed about customer loyalty in the digital age?

Customers exhibit less loyalty and are more dynamic. Signup and view all the answers

How has customer communication evolved from traditional practices?

Communication has shifted to being more two-way. Signup and view all the answers

Which factor has become more central to marketing in the digital age?

Generating customer advocacy and loyalty. Signup and view all the answers

What role do customers play in the innovation process according to the new digital landscape?

Customers are key influencers in the innovation process. Signup and view all the answers

What has shifted in the economics of value flows between firms and customers?

Value flows have become reciprocal rather than one-way. Signup and view all the answers

What is one reason old sources of competitive advantage are disappearing?

Technological advancements lead to decreasing transactional costs. Signup and view all the answers

What does the term 'coopetition' refer to?

A strategy where companies collaborate with their competitors. Signup and view all the answers

How can digital technology impact market players?

It allows companies to disintegrate and specialize more easily. Signup and view all the answers

What is a potential outcome of the shift from products to platforms?

Emergence of new business models and competition dynamics. Signup and view all the answers

What capability does data possess as a strategic asset?

It provides new opportunities for innovation and value creation. Signup and view all the answers

Study Notes

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.

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Description

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.