Lameen Witter | Do You Know Why Digital Strategies Fail?

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Do You Know Why Digital Strategies Fail?
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• Nowadays, many companies plan and execute digital
  strategies to compete in a competitive
  environment, but fail. And the reason is
  ignorance of digital evolution and its potential
  impact on the company revenues or indeed
  survival. In recent years, digital strategies
  took a major change and if you are not willing to
  adapt to those changes, you may lose the game.
  According to expert Lameen Witter, before you
  frame digital strategies, it is very important to
  understand why most digital strategies fail.

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Vague Definition

• Digital strategy is misinterpreted by most
  companies. Some associate it with a few digital
  projects or marketing. Digital is actually a free
  ability to connect multiple devices, people and
  services universally. Soon with IOT, it would
  bring more surprises and innovation. However, due
  to the misinterpreting the definition of digital,
  it will be difficult for a company to link the
  strategy to their core business.

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Misinterpret The Economic Of Digital

• Digital is abolishing 'economic rent' which is
  revenue in excess of the cost of capital.
  Unbundling profitable services are allowing
  customers to buy only the things they are willing
  to buy. They have unlimited choice and
  information. Hyper-scale is minimal expenses to
  almost zero. For instance, to include a store it
  costs Wal-Mart millions. While Jack Ma of Alibaba
  can do likewise with one server. Therefore the
  main organizations can rule the market and take a
  lot of the benefits.

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Assumption That threats will come only from new
players

• If you think that the real threat comes from the
  new entrants and, you might be wrong. Often the
  real challenge comes when a smart dominant
  industry player is aiming to self-cannibalize and
  disrupt the current situation. According to
  experts, incumbents moving forward with
  confidence can achieve significant share and push
  an industry to the peak.

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Overlooking Ecosystem Platforms

• Traditional strategies that ignore the ecosystem
  platform are likely to face many challenges.
  Ecosystem platform allows digital players to
  compete and lead in the industry and sector
  borders. Amazon has reached to new heights from
  selling books to selling almost everything.
  Similarly, the tech giants like Alibaba has
  created platform ecosystems that are allowing
  them to grow into financial sectors and many
  other sectors. No doubt, these platform plays can
  evolve the dynamic of the whole business sector
  in a short period of time.

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Lost The Duality Of Digital

• According to many leading organizations, the
  digital revolution is all about searching for
  something new. While searching for or working on
  a new business model, they overlook the need to
  digitize their current business. Disruption is
  irregular, and ignoring the existing business is
  not something most will choose. The pressure of
  digital means that businesses will need to adapt
  and repeat to achieve success.

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Final Words

• According to Lameen Witter, these are the reasons
  why most digital strategies fail. Therefore, it
  is advisable to consider these pitfalls before
  framing your digital strategies. After all, who
  doesnt want a win-win situation in the
  competitive world?

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