Every company wants one, hardly any have one and those that do have one don’t tell anyone: a real strategy that makes companies fit for the challenges of digital transformation. The many different definitions of what constitutes a digital strategy, how detailed it should be and what questions it needs to answer are certainly one reason for this. For some companies, “digital strategy” means nothing more than thinking about the use of their social media channels, while others try to develop and implement entire new business models.
What does digital strategy mean?
We already know that the term “digital strategy” can mean something different for every company. So let’s start by creating a definition that applies to this blog post.
At first glance, the example of the digital factory – self-controlling production – seems particularly extreme. But it is certainly conceivable to digitize and automate all processes in a manufacturing company. However, this raises the question of whether it makes sense, which should always be based on a cost-benefit analysis. In the best case scenario, the questions about the depth of digitalization and worthwhile investments are already answered in the digital strategy.
Which areas should a digital strategy focus on?
- Organization of internal processes
- Customer communication and loyalty measures
- Digital expansion of existing products
- New, digital business models
Why is it so difficult to develop a really good digital strategy?
Many companies find it difficult to set up a digital strategy. The main reason for this is that new technologies are constantly being developed. Maintaining an overview and constantly considering whether and how these technologies make sense for the company costs valuable time. In addition, especially in larger companies, the structures on the process and system side have grown so far historically that it is hardly possible to understand the overall structure of processes and the necessary systems and tools.
This is because solutions are often procured bypassing internal IT. In order to build a truly successful digital strategy, many experts need to be brought together and find a joint solution, whereby each area naturally represents different interests, which often stands in the way of a joint solution.
8 tips for building a digital strategy
1. formulate goals, not solutions
By formulating overarching goals, you create the necessary mental flexibility for yourself.
Example from marketing: “We need to do more advertising” (solution approach).
It would be better to define the following target: “We need 20 % more orders within the next 6 months” (target setting).
Advertising is only one possible solution to achieve the defined goal. Other solutions can be defined and implemented based on this objective.
2. create the necessary framework conditions
The framework conditions for successful digitalization in companies include the technical requirements, such as the IT infrastructure and security mechanisms, as well as awareness and enthusiasm for digital solutions so that employees really want to break new ground.
3. analyze your inventory processes
Take a look at your existing processes and identify where the potential is particularly high. Where is a lot of time spent on manual work or system maintenance? In which areas are there high error rates that require time-consuming and costly rework? Key figures and employee surveys help to identify weak points and develop new solutions.
4. make data available
Data is the basis of all digitalization. Ensure that all relevant information is quickly available. This allows it to be linked and evaluated in order to carry out extensive process optimizations.
5. define the optimal solution
Think freely of existing processes or system boundaries. This freedom of thought produces better solutions than simply trying to optimize existing processes.
6. find the way to your optimal solution
Analyze different ways to achieve your goal. Information processing and networking play a decisive role here. Optimize workflows and processes in a targeted manner.
7. stay flexible
Your company will change during the implementation of your strategy. Be prepared for this and develop digital business models that are flexibly adaptable.
8. start small with the implementation
Even if your strategy shows great potential, start with small projects. Learn from your first experiences and use them for further tasks. With a flexible, scalable digitalization solution, you can create the basis for intelligent and automated systems.
Implementation of the strategy in practice
No matter how good a strategy is, the result will never be satisfactory without the right tool. Due to the challenges that companies have to overcome today, special digitalization tools have been developed. These offer enormous advantages in terms of speed, usability and maintainability of the applications created. Low-code is the key to success here.
