Why digital strategies fail

Pitfall 1: Fuzzy definitions

Pitfall 2: Misunderstanding the economics of digital

Digital is destroying economic rent

Digital is driving winner-takes-all economics

Digital rewards first movers and some superfast followers

Pitfall 3: Overlooking ecosystems

Industries will soon be ecosystems

How ecosystems enable improbable combinations of attributes

Pitfall 4: Overindexing on the ‘usual suspects’

Digitizing incumbents are very dangerous

The B2B opportunity

Pitfall 5: Missing the duality of digital

  • Bold aspiration. The first-mover and winner-takes-all dynamics we described earlier demand big investments in where to play and often major changes to business models. Our latest research shows that the boldest companies, those we call digital reinventors, play well beyond the margins. They invest at much higher levels in technology, are more likely to make digitally related acquisitions, and are much more aggressive at investing in business-model innovation. This inspired boldness also turns out to be a big performance differentiator.
  • Highly adaptive. Opportunities to move boldly often arise as a result of changing circumstances and require a willingness to pivot. The watchwords are failing fast and often and innovating even faster — in other words, learning from mistakes. Together they allow a nuanced sensing of market direction, rapid reaction, and a more unified approach to implementation. Adaptive players flesh out initial ideas through pilots. Minimum viable products trump overly polished, theoretical business cases. Many companies, however, have trouble freeing themselves from the mind-sets that take root in operational silos. This hinders risk taking and makes bold action difficult. It also diminishes the vital contextual awareness needed to gauge how close a market is to a competitive break point and what the disruption will mean to core businesses.

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Entrepreneuring | curious thinker | technology advisor | photographer at stories by AMG | CTO of paradigm IT |

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Aashish Mathew George

Aashish Mathew George

Entrepreneuring | curious thinker | technology advisor | photographer at stories by AMG | CTO of paradigm IT |

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