Four Pillars of Successful Digital Model
It became obvious that companies have to come through digital transformation if they want to succeed in the new fast-changing world. Companies know it, too, but sometimes they fail to reinvent themselves, as digitalization certainly is not an easy matter.
McKinsey, a management consulting firm, determined four elements of digital strategy that stand out in the most successful digital companies.
Increased agility of strategy
Perhaps the most important element of all, adaptability of the digital model makes a great difference: the quicker business creates, executes and adjusts its strategy, the greater is economic advantage. At least, that’s what comes from the study where McKinsey compared the frequency with which companies followed 11 operational practices of digital strategy. Respondents in the top revenue companies carried out each one more frequently than their peers.
Investments in digital
The most successful companies are taking advantage of new software ecosystems and innovation their operating models basing of those ecosystems. New digital platforms allowed to create new marketplace, share and analyze data of the unseen scale. Additionally, new ecosystems are providing the best understanding of customers’ needs.
Increased usage of M&A
Merge & Acquisitions is another stand-out element for top performers. As such, they’re investing more in different types of M&A activities. It’s not just about better financial capabilities to do so: top companies are spending more than twice as much on M&A as a share of annual revenue, comparing to less successful companies.
Investment in digital talent
While ecosystems and digital technologies are very important, people are still the important source of success. Even more – qualified digital talents are even more important. The ability to find them – and to use them at the right place at the right time – is the final element that distinguish top performing companies from others. Again, it’s not always about rough resources to attract employees, but about better allocation of digital talents across the organization. This allows to set up the best alignment between resources and strategies.
1 – https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/a-winning-operating-model-for-digital-strategy