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However, authors of articles tend to agree that the digital strategy of a company needs to become the essence of its corporate strategy. The relationship between digital strategy and corporate strategy is still under debate. It also suggests solutions to avoid being vulnerable. A framework inspired by McKinsey & Company provides a good start to assess the sources of disruption. The development of a digital strategy implicates the understanding of the transformation and disruption faced. Indeed, the more digitalized companies in the U.S lead in terms of products, services, business model innovation, and revenue growth. Failing to implement it will undermine the competitiveness of a firm.
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Such a strategy consists in a combination of digital technology, information and physical resources that allows raising human performance. Today, any company needs to exploit the potential of this technology by developing a digital strategy. A truly digital company incorporates digital principles into its strategy, business model, operations and culture. The real threat from the use of digitalization emanates from companies able to enhance their performance by combining digital technology and physical resources. However, a large number of companies underestimate the considerable influence of this technology. The right combination of digital technology, information and physical assets can grant a digital edge that may constitute a competitive advantage. It provides new ways to create and capture value, as well as revenue. It is disrupting traditional business rules.
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It enhances the alteration of customers’ expectation and behavior.It blurs the boundaries and definition of industries.Indeed, it drives multiple changes including, among others, the followings: All organizations will be dramatically affected by digital technologies.ĭigitalization is altering the traditional competitive landscape of companies. Furthermore, it is not only impacting companies, which businesses are based on technologies, it affects or will affect any firm, any sector, any type of job, any function in companies. The raising firms’ interest in digitalization is explained by its daily presence and its significant impact on revenue, margin, productivity, and innovation.