Today's where all organizations are investing much in digitization of marketing efforts why their digital strategies are not giving desired outcome.
McKinsey & company identified in one of its survey
that only 8% of the organization would be viable with current strategy, if digitization continues at its current rate. It has identified 5 common pitfalls in the digital strategy.
What digital strategy actually is?
Digital strategy is digital roadmap that provides strategic way to use different digital channels and digital technology for the betterment of the organization.
Being a part of digital world required openness towards changes, flexibility and adaptability in action. Digital world changes the nature, magnitude and variables of competition. Digitization provides new or innovative ways to deal with customers and enhance their satisfaction level with existing products and offerings.
Below are few reasons for the failure of digital strategy
- Lack of clarity about digital
The business leaders are still confused with the term digital. Some understand digital means extended version of IT and some take only in context of digital marketing and sales. The lack of charity in the mind of business leaders reflect in their actions. They lack the holistic view of digital. Digital means the simple, easy and flawless way to connect things, people, objects across the globe. Being digital generates lots of data that gives rise to analytics and data-driven decision approach.
Lacking the understanding of digital prevents business leaders to set clear vision of digital strategy and its impact on bottom line and business performance as a whole.
- Unsettled new economic realities of digital competition
Today everyone is talking about being digital but not everyone is bothered about the economic aspects of digitalization. Digitization has changed the nature of competition and the focus has shifted towards customer. Digital is increasing the gap between big winners at the top and the big losers at the bottom extreme in the competitive environment. The first mover or the super fast follower becoming winners and receiving reward of digital strategy. The new realities are still unsettled.
The industry players who believe that being digital provides competition within the industry, will struggle very much. Because being digital opens the whole world as global village in which every industry is going to have significant impact over others. People need to understand various influential factors and the nature and magnitude of competitions as organization is no more closed system.
These are few reasons that cause ineffective implementation of digital strategy. Companies can overcome this by setting clear vision of digital strategy, understanding different variables in digital competitive environment, adaptive to the changes and being proactive in the approach.