February 22, 2019
Developing a successful strategy in the new world of digital, data and AI is not, as some would tell you, a separate endeavour, it’s now the most important and fundamental element of any modern business strategy.
What hasn't changed is that your strategy needs to be about hard choices: what products and services you offer and what you don’t, who your customers are and who they are not and how you go about efficiently delivering these to create sustainable economic value. The strategy development process should contain a diagnosis of what you do now and where you create value; how this might change or be disrupted in the future; some well thought out options to create new services, customers and business models; a series of initiatives stemming from this, and a commitment to change.
However, what has significantly changed versus conventional strategy development are four things: the speed and magnitude of change that technology brings; the potential rapid destruction of old business models and value chains; the significantly greater level of uncertainty, and the higher costs of failure.
Simply put, you need a robust strategy for the digital age, not a digital strategy...and the one thing this strategy cannot be is incremental.
We recommend a pragmatic seven-step approach to deliver on the above objectives: