Digital technology is moving forward faster than the world can possibly keep up. If your business hasn't adopted any digital strategies for your operations and marketing, you're probably already behind the curve. However, simply grabbing the latest technology and running with it isn't a good option, either.
There is virtually an infinite number of possible digital strategies out there, and choosing the right one is as important as it is difficult. Picking the wrong strategy can cost you thousands of dollars and even more in market positioning. Learn about implementing effective digital strategies, which ones work, which ones don't, why it happens and how you can pick the best for your business.
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Six Major Digital Strategies
There are six major types of digital strategies that are adopted by businesses all over the world. Some work very well and others, not so much. For the most part, it really depends on your individual business and how you adopt a strategy as opposed to what strategy you adopt. The six strategies are platform play, marginal supply strategies, digital enabling, customized rebundling, digital distribution and cost efficiency.
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Platform Play Strategies
Platform play means redefining the value chain of an industry to allow suppliers and customers to more directly interact with you and benefit from your network. Choosing the right platform can dramatically alter the distribution of value across a chain.
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Marginal Supply Strategies
Digital technology can, if properly used, allow you to tap into new sources of supply at a low cost. Often, this is used in conjunction with platform play, but not always. For example, retailers like Ikea and H&M are now allowing an option for their customers to resell online to one another.
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Digital Enabling
Over 55% of companies out there are looking at ways to digitally enable formerly analog products to meet a new demand in the marketplace. One example is P&G's recent Bluetooth-enabled toothbrush with digital guidance. This strategy only works if you can come up with a smart and unforeseen gap in the market that digital enabling can fill.
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Customized Rebundling
Digital technology can allow a company to rebundle goods and services to better meet the needs of clients. For example, newspaper organizations now allow digital subscriptions so that their content is available on smartphones, tablets and computers.
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Digital Distribution
This is a strategy that just about every firm should be using, simply to keep up with the modern marketplace. Digital distribution allows access to your products and services online. If you're not doing digital distribution in some regard, start doing it now.
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Cost Efficiency
The right digital strategies can greatly improve cost efficiency. Usually, this occurs through implementing cost scaling or automation of operations. Such approaches, however, often appear as survival tactics rather than an effort to get ahead.
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Determining the Right Strategy
Choosing the right strategy depends on your individual business. The most successful companies will employ an offensive strategy to transform their digital operations. They will be less focused on cost efficiency, and more focused on developing new products and expanding their customer base.
If you're looking to adapt and transform your company for the new age, be sure that the strategy you adopt actually transforms your operations and isn't simply focused on cost-cutting.