The evolution of Digital Strategy – Structure

How is digital strategy structure supposed to be?

A digital strategy: what is it?

A Digital Strategy – Structure an organization’s priority initiatives for future investment in digital technology to make a business more competitive by digitalization of its processes and review of its business model. It has a broad scope, covering how digital technology can support business goals across the business. Technology analyst Gartner (2024) highlights this in their definition of digitalization where they emphasize a focus on improving business model rather than process. However, for me, digital strategy should consider both digitalization of both business processes and business model innovation.

Although ‘digital strategy’ usually focuses on technology, it’s important that it covers practical implementation issues of managing data and resources to manage the change when introducing technology. That’s why digital strategy often involves reviewing digital transformation strategies.

The seven digital marketing dimensions to take into account in your digital strategy

As part of defining the scope of opportunity when using a strategic approach to digital marketing, it’s helpful to think about which digital audience interactions we need to understand and manage through marketing communications. Digital marketing today is about managing many more types of audience interaction than simply a company website or email marketing. It involves harnessing all of these other ‘7Ds of managing digital marketing interactions’, which are shown in the visual below

The marketing activities that relate to the 7Ds that should be reviewed as part of a strategic approach, that are explained in more detail in our article defining what is digital marketing  are:

• Digital objectives.
• Digital audiences. 
• electronic gadgets.
• Digital platforms. 
• digital content.
• Digital data. 
• technology in digital form.

What are digital strategy’s objectives?

The overall goal of a digital strategy is to improve an organization’s business effectiveness. It should be aimed at both increasing efficiency AND effectiveness.

Although a digital strategy may be used as shorthand for ‘digital marketing strategy’, a full digital strategy or digital transformation strategy should define how to improve different business functions including:

• Promotion—including online promotion—
• Sales by means of aiding digitally assisted or E-commerce sales
• development of new products
• Product production
• management of the supply chain, encompassing procurement
• Further functionalities of operational business management

How to develop an online plan, Digital Strategy: Structure

The steps involved in developing a digital strategy are comparable to those involved in developing other kinds of strategies; they include situation analysis, performance evaluation, strategy creation, and strategy implementation.

• Possibility: A review of the current state of digital maturity, including an audit of the efficiency of media, data, and digital technology, as well as the creation of a vision and objectives to establish goals and build a business case
• Strategy: Evaluates available options and determines which digital projects should be prioritized.
• Action: A series of 90-day plans that outline how the strategy will be put into practice.

In their article the five rules of digital strategy, the Boston Consulting Group recommendations fit within this OSA process; they are:

1. Evaluate Digital’s Strategic Impact. They say: “Good digital strategy starts with a rich understanding of the competitive environment and how it’s likely to change”.
2. Elevate Your Digital Ambition. This highlights the need to energize the organisation to achieve digital transformation.
3. Put Large Bets. They recommend focusing on two or three of the most valuable use cases to give greater clarity and deliver the best results. They suggest that it’s important to manage priority initiatives as a portfolio and roll out the ones with short-term impact first.
4. Develop Fresh Strategic Muscles. This references the need to develop digital talent and skills within an organization and apply digital within existing strategy processes.
5. Actively Manage Change. This suggests the benefit of developing a digital transformation programme.

The entire procedure is illustrated in this graphic:

Illustrations of Digital Strategy: Structure tactics

The way Adobe switched from its physical design software to its online cloud service Creative Cloud is a great illustration of a company executing a digital strategy through digitalization. This involved both a review of its business model and improving process efficiency, for example through updates to billing and software.

Governments around the country are also implementing digital strategies to push companies to innovate by implementing digital technology and undertaking digital transformation initiatives. See, for example, the UK’s digital strategy.

In their article, BCG gives these examples of setting an audacious vision for digital strategy:

• Starbucks adopted digital technology to boost its same-store sales, which were falling behind. They found new ways for customers to order and pay for their coffee by developing a mobile payment app and rolling out digital loyalty programs. Mobile sales increased twice as fast as in-store sales.
• The car manufacturer Renault set and achieved the goal to drive a 25% increase in EBIT with its digital strategy. It introduced 15 pilot digital initiatives across all functions—from marketing through production—to understand where digital could give the greatest lift.

It focuses less on process digitalization and more on changes to business models that are made possible through digitalization.

Understanding Your Digital Strategy Goals

Setting clear goals is essential for assessing your current position and planning your future. It helps clarify how digital marketing, or your digital strategy, can assist in reaching these goals. To visualize success for your organization, you must define your market, understand your role within it, and identify the digital tools and techniques that will drive your marketing success.

A strong digital strategy is vital for several key reasons:

1. Discover Your Business: A digital strategy framework helps you connect with your target audience and deliver excellent customer experiences, adding value for both customers and your brand.

2. Provide Direction: Traditional strategies often focus on which technologies to invest in. In contrast, digital strategies emphasize transforming activities and processes to improve client services.

3. Capture Opportunities: A successful digital transformation lays the groundwork for future growth. It allows you to adapt to changes in markets, services, and customer needs. Your digital strategy should be forward-thinking to anticipate new opportunities.

4. Reach Your Audience: Audience targeting uses data to segment potential customers by demographics and interests, ensuring you connect with the right people on the right devices at the right moments.

5. Differentiate Your Brand: Stand out from the competition! Brand differentiation gives clients clear reasons to choose your services. Focus on unique benefits rather than competing solely on price.

6. Measure ROI: Tracking the return on investment (ROI) for your marketing efforts is crucial. ROI assessment helps identify what works and what can be improved so you can run successful campaigns and grow your business.

The Digital Transformation and Strategy Framework

A digital strategy framework acts as a blueprint for integrating digital solutions into your existing processes. Here are the key components:

1. Set Clear Targets: Avoid jumping into digital marketing without understanding your goals. Start by defining your business objectives, setting relevant goals, and outlining desired outcomes.

2. Gain Management Support: Cultural buy-in is vital for effective digital transformation. Leadership engagement is crucial, as strong buy-in typically leads to more successful digital strategies.

3. Start with Quick Wins: Major changes can be overwhelming, so start with achievable goals, such as updating your website or launching a digital marketing initiative to generate new leads.

Consider the Russian nesting doll analogy to visualize digital transformation:

• The largest outer doll represents digital transformation, including new tools and strategies used across the organization.
• The medium doll represents your digital strategy, outlining the rollout of that transformation.
• The innermost doll is your digital marketing strategy, detailing specific marketing tactics.

Components of a Digital Strategy

To create an effective digital strategy, consider these fundamental questions:

1. Who are your buyers?
2. What challenges do they face, and what is their journey?
3. How will you position your brand and craft your messaging?
4. How will you build and maintain customer relationships over time?
5. What infrastructure do you need? For example, ensure your website effectively captures leads and that you have a marketing automation system in place.

Your digital strategy should seamlessly integrate these elements to achieve your overall goals.

The Role of Benchmarking

Benchmarking is a practical method for establishing baselines, identifying best practices, spotting improvement opportunities, and maintaining a competitive edge. It’s helpful to think of it this way:

• Benchmarks indicate the “what.”
• Benchmarking refers to the “how.”

Unlike competitor analysis, which focuses primarily on performance, benchmarking emphasizes best practices tailored to your customers’ needs.

There are three categories of benchmarking:

1. Internal Benchmarking: Uses established best practices within your organization.
2. Competitive Benchmarking: Assesses your position in relation to competitors.
3. Strategic Benchmarking: Takes a long-term look at your company’s direction compared to competitors’ future strategies.

For many professional services organizations, benchmarking is a straightforward way to measure your current position against your goals.

How JTM Digital Solutions Can Help

At JTM Digital Solutions, we assist businesses of all sizes in reviewing their digital strategy and developing a comprehensive digital transformation plan focused on digital marketing. Let us support you on your digital journey!