Posted by Marbenz Antonio on November 29, 2022
Making a digital strategy is overly prioritized by many firms as a commercial need. You don’t need a digital strategy, according to (Nieto-Rodriguez & Speculand, 2021). It’s important to understand the difference if you want to develop a plan for a developing digital economy. When offering your organization’s value proposition, strategy is the conscious decision to “perform activities differently or to execute various activities, better than market competitors” (Porter, 1996). The most important thing to realize is that strategy is all about “choice.”
Unfortunately, organizations frequently make poor decisions while planning to adapt to the current state of the digital infrastructure. They fail to take into account the possibility that by the time they finish the digital transition to the current environment, the technological environment would have completely changed. Therefore, technologically astute CEOs understand that technology is a moving target and start to modify their company and business model to fit the future infrastructure. A moving target must be led if you want to hit it, according to any quarterback, football player, or hockey player. Aim where the target will be rather than where it is now (Kane et al., 2020).
According to McGrath (2019), changes in the business environment, or “inflection points,” can either result in new, entrepreneurial opportunities (like those offered by Amazon and Netflix), or they can have disastrous effects (e.g. Blockbuster and Toys R Us). According to former Intel CEO Andy Grove, an inflection point is the “moment when the fundamentals of business are going to shift” (Nieto-Rodriguez & Speculand, 2021).
Only those executives who can “see around corners”—more specifically, recognize disruptive inflection moments before they occur—are in a position to succeed (McGrath, 2019). Change can either provide an opportunity to achieve new heights or signal the start of the end. For instance, the market leader in aerospace, Airbus, is testing hydrogen combustion technology to produce the first commercial aircraft with zero emissions by 2035. In contrast to its competitors, Airbus sees the change as an opportunity to “lead a changing target,” while for others, the inflection point may signal the beginning of the end with decreasing market share.
Our business and society are still being digitally disrupted at an unprecedented rate thanks to new technology. Organizations must create a future where they invest in the knowledge and creativity of their workforce if they want to survive. In the future, humans will have the power to fully utilize new technology to create platforms that support or facilitate the development of novel, cutting-edge goods, and services (Deloitte, 2017). Platforms serve as the structural basis on which businesses can provide customers with complementary technological products and services.
Amazon is a prime example of the new type of ambidextrous business that is always looking for the most creative business concepts. It focuses to meet the requirements of its customers even before they are aware that they have them, such as free shipping. Organizational ambidexterity is the capacity of an organization to manage its operations now while creating new methods to meet the shifting demands of tomorrow (Lerner & Zieris 2019).
Today, a strategy must include carefully coordinated decisions regarding the business model with the greatest potential for value creation, the competitive position that captures the greatest amount of value, and the implementation processes that continuously adapt to the changing technology while developing the capabilities needed to realize value over the long term (Collis, 2021). Because of this, according to Blain (2021), “the rapid pace of how we live and work today is driving incremental and radical change in business and is becoming the new normal.”
While some companies are able to keep up with this rapid change, many others are falling behind. Worldwide, the rate of change is catching companies off guard. It’s no longer a question of if and when to transform businesses in order to get ready for a digital future; it’s rather a matter of how quickly to convert (Blain, 2021).
“The pace of change has never been this quick, and it will never be this slow again,” once declared Canadian President Justin Trudeau. There is something great about technology, especially in a digital setting. It modifies every aspect!
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