Companies don't need a digital strategy. They need a strategy for the digital era. It’s not enough to predict the next big technology trend or run various digitization initiatives. CEOs need to embrace digital opportunities across all dimensions of their business to realize their companies' digital full potential.
The structure of your digital organization has a lot to do with your ability to withstand a strong competitive force. You can build a stand-alone digital unit, nurture it along for a few years and when it’s big enough, and ready enough, merge it into the legacy business. Or, in some cases, the legacy business will merge into the digital business.
The companies most prepared to address digitization have combined their digital and corporate strategies into one business strategy. The least prepared companies are twice as likely to have separated their digital and corporate strategies. Roughly half of all companies address digital in parallel, with some minor overlaps or fully independent of their core strategy. This essentially means they haven’t yet fully embraced the digital opportunity.
To deliver—or supercharge—value, digital strategy needs to be embedded in your corporate and business strategies. The process to tap into your digital full potential doesn't have to be perfect. You simply want to establish a frame of reference for the characteristics of your business, determine the role(s) you want to play, and identify and prepare for the challenges and opportunities you will face.