DIGITAL BUSINESS INTELLIGENCE

DR. LUCA LEZZERINI

POLIS UNIVERSITY
WORKSHOP

DIGITAL
BUSINESS

INTELLIGENC
E WORKSHOP
 PRESENTATION

DIGITAL BUSINESS
INTRODUCTION AND BUSINESS MODELS
 digital change

MAIN For MCS Students ->

OBJECTIVE OF THE understand how to exploit
their digital competencies to
COURSE develop business, both as
For MBA Students -> become entrepreneurs and employees
aware of the next disruptive
technologies and manage

• YOU MAY THINK THAT CREATING A DIGITAL

STRATEGY FOR YOUR BUSINESS REQUIRES
YOU TO PREDICT OR AT LEAST HAVE A
VISION OF THE FUTURE.
• IN OUR FAST-PACED WORLD OF DIGITAL
ADVANCEMENT, BEING PREPARED FOR
 DIGITAL DISRUPTION—AS WELL AS BEING ABLE TO
TRANSFORM A BUSINESS DIGITALLY—HAS BECOME
MORE CHALLENGING THAN EVER.

• THE DIGITAL BUSINESS TRANSFORMATIONS WE ARE

EXPERIENCING TODAY ARE NOT GOING TO
VANISH. INDEED, THEY WILL ACCELERATE, AS THE
IMPACT OF NEW DIGITAL INNOVATIONS ON
BUSINESS OPERATIONS IS EXPONENTIAL.
OLD VISION OF DBIZ

• FOR THE LAST DECADE, COMPANIES HAVE

THOUGHT OF DIGITAL STRATEGY AS A FUNCTION
OF RECOGNIZING UPCOMING TRENDS EARLY
AND BEING THE FIRST TO MARKET A NEW
TECHNOLOGY OR DIGITAL CHANNEL.
• OVER THIS PERIOD, BUZZWORDS LIKE SOCIAL
 MEDIA, MOBILE FIRST, THE CLOUD, BIG DATA,
AND THE INTERNET OF THINGS BECAME PART OF
THE LEXICON.

OLD VISION OF DBIZ/2

• INTHE PAST, COMPANIES FOCUSED ON CREATING NEW

DIGITAL CHANNELS AND CATCHING UP WITH INDUSTRY
ADVANCEMENTS RATHER THAN STRATEGICALLY PLANNING
THEIR DIGITAL FUTURES.

• LARGER COMPANIES HEAVILY RELIED ON THE BIG SOFTWARE

HOUSES TO PROVIDE THEM WITH SOLUTIONS AND SERVICES
TO RUN THEIR BUSINESSES. THIS SOFTWARE WAS THEN
 ADAPTED AS MUCH AS POSSIBLE TO EACH BUSINESS’S NEEDS.

MODERN VISION OF DBIZ

• TODAY, COMPANIES HAVE REALIZED

THAT HAVING A DIGITAL STRATEGY
MEANS MORE THAN JUST WAITING FOR
A NEW
TECHNICAL OPPORTUNITY TO ARRIVE
OR PREDICTING THE FUTURE.
• IN REALITY, IT IS ABOUT CONTINUOUSLY
IMPROVING YOUR BUSINESS IN ORDER
TO STAY AHEAD OF THE CURVE.
MODERN VISION OF DBIZ/2

• TODAY, NEW PLAYERS ARE ENTERING THE MARKET AND

CREATING BETTER SOFTWARE THAT IS VERY INDUSTRY
SPECIFIC AND TAILORED TO JUST A FEW USES.

• COMPANIES CAN NO LONGER RELY ON ONE-SIZE-FITS-ALL

SOLUTIONS AND NEED TO LEARN HOW TO BECOME TRUE
DIGITAL PLAYERS IN ORDER TO BE COMPETITIVE.

• ALL INDUSTRIES EXPERIENCE DIGITAL DISRUPTION, AND THIS

WORKSHOP IS ABOUT PREPARING YOUR BUSINESS FOR THE
CHANGES TO COME.

DIGITAL STRATEGY AND THE

WORKSHOP

• THE TERM DIGITAL STRATEGY IS OFTEN CONFUSED WITH DIGITAL

MARKETING.
 • COMPANIES SPENT MILLIONS ON DIGITAL MARKETING AND
INFORMATION TECHNOLOGY (IT), BUT INVESTMENTS TO
STREAMLINE THEIR DIGITAL OFFERINGS AND IMPROVE THE
PERFORMANCE OF ALL RUNNING SYSTEMS LACKED ATTENTION.

• HOWEVER, ONE THING IS CERTAIN: THE FOCUS AREAS WILL

CHANGE IN THE COMING YEARS. THIS WORKSHOP OFFERS IDEAS,
TOOLS, AND BEST PRACTICES TO HELP YOU SUCCESSFULLY
NAVIGATE THIS CHANGE.

THE QUESTION

• TECHNOLOGY NEWS TODAY FEATURES HEADLINES ANNOUNCING A VARIETY OF PROMISING FUTURE DEVELOPMENTS: •
BIG DATA WILL BE ABLE TO PREDICT CUSTOMER BEHAVIOR.
• CHIEF MARKETING OFFICERS WILL SPEND MORE MONEY ON IT THAN CHIEF INFORMATION OFFICERS. •
THE CROWD WILL OWN OUR COMPANIES IN THE FUTURE.
• DIGITAL CURRENCIES WILL TAKE THE WORLD BY STORM.
• PIZZA WILL BE DELIVERED BY DRONES.
• WHILE ALL THESE TOPICS SOUND EXCITING, THE KEY QUESTION IS HOW RELEVANT THEY WILL BE FOR YOUR BUSINESS.
• THE REALITY IS THAT A LARGE PORTION OF COMPANIES WORLDWIDE CANNOT YET ANSWER THIS QUESTION, NOR DO THEY
HAVE THE BANDWIDTH TO GET INVOLVED IN THIS AREA. MOST COMPANIES ARE IN THIS SITUATION BECAUSE THEY
• ARE DOING GREAT AND HAVE NO NEED TO WORRY ABOUT ANYTHING;
• ARE NOT YET INVOLVED WITH ANY OF THESE TECHNOLOGIES; OR *
• ARE BUSY FIXING AND UPDATING THEIR CURRENT DIGITAL OFFERINGS AND CANNOT TAKE ON ANYTHING NEW
(I.E., THEY ARE IN A STATE OF DIGITAL DISTRESS).

MP3
A CASE STUDY

MP3: THE IMPACT AND THE

REACTION
• WHO WOULD HAVE THOUGHT THAT THE MP3 WOULD
DISRUPT THE MUSIC INDUSTRY?
• “… WE LOOKED AT THE ARTICLE FOR FIVE MINUTES AND
KNEW THE MP3 WAS GOING TO BE A HUGE SHIFT FOR THE
MUSIC INDUSTRY…”

• “… OF COURSE, IT’S NOT THAT WE JUST STOOD THERE

WATCHING THE WORLD GO BY […] THE COMPANY SET UP
ONLINE STORES WHERE PEOPLE COULD BUY CDS AND
MERCHANDISE. […] LISTEN TO THIRTY-SECOND PREVIEWS OF
EACH SONG [… ] IMPROVED THE MERCHANDISE OFFERING
TO CREATE COMPLEMENTARY PRODUCTS, REPLACED
PRINTED MARKETING MATERIAL WITH ONLINE PROPERTIES,
AND SO FORTH”.

MP3: WHAT WAS WRONG

• “[BUT] NOTHING WE DID ACTUALLY INVOLVED DEALING WITH THE
TECHNOLOGY THAT CAUSED THE DISRUPTION IN THE FIRST PLACE. WE JUST
TRIED TO MAKE THE OLD OFFERING WORK BETTER IN ORDER FOR IT TO
SURVIVE, AND MOST OF THE ACTIONS WE TOOK WERE REACTIVE RATHER
 THAN PROACTIVE.

• IF WE HAD BEEN PROACTIVE, WE MIGHT HAVE OPENED UP OUR STORE TO

OTHER MERCHANTS. WE COULD HAVE CREATED A DECENTRALIZED SALES
ENGINE FOR THE DYING PHYSICAL-RECORD-STORE INDUSTRY.

• PERHAPS WE SHOULD HAVE OPENED APPLICATION PROGRAMMING

INTERFACES (APIS) FOR OUR THIRTY-SECOND SONG LIBRARY OR STARTED
INVESTIGATING HOW WE COULD SELL MUSIC DIGITALLY ALTOGETHER.

• WE DIDN’T DO ANY OF THESE THINGS BECAUSE WE WERE BUSY

CATCHING UP AND WERE AS INEXPERIENCED IN DIGITAL
TRANSFORMATION AS ANY OTHER COMPANY BACK IN THE NINETIES.”

MP3: LESSONS LEARNED • CURRENT TECHNOLOGIES ONLY GO

AWAY IF THEY GET REPLACED BY NEWER ONES. • IF YOUR BUSINESS DEPENDS ON SUCH A TECHNOLOGY, YOU ARE AT
RISK.
• FOR EXAMPLE, IF YOU WERE A TYPEWRITER MANUFACTURER IN THE 1980S, THEN YOU HAD BETTER
HAVE STARTED PRODUCING KEYBOARDS FOR IBM.

• WHEN AN ENTIRE INDUSTRY IS DISRUPTED, AS IN THE EXAMPLE OF THE MUSIC INDUSTRY, EVENTUALLY IT
 NEEDS TO FIGURE OUT WHAT IS HAPPENING AND HOW TO COUNTER THE CHANGE. THEN IT NEEDS TO
ADJUST ALL SYSTEMS TO SUPPORT THE TRANSFORMATION. BIG, ENTRENCHED SYSTEMS AND NETWORKS
ARE HARD TO CHANGE. BUT WAIT: THE FACT THAT ENTIRE INDUSTRIES ARE TRYING TO COUNTER
DIGITAL DISRUPTION IS WHERE THE REAL OPPORTUNITY FOR YOUR BUSINESS COMES FROM, BECAUSE
NOT ALL COMPANIES WILL MOVE AT THE SAME SPEED OR THE SAME PACE.

• THERE ARE ALWAYS SOME OUTLIERS THAT PROGRESS A LITTLE FASTER, AND THESE ARE THE ONES THAT
COME OUT AS THE WINNERS AT THE END OF EACH CYCLE.

HOW WILL THE FUTURE BE?

• IT’S NOT ABOUT PREDICTING ANYTHING BUT RATHER UNDERSTANDING THE
PATTERN OF INDUSTRIES DISRUPTING THEMSELVES ALL THE TIME, OVER AND OVER
AGAIN.

• THE REAL QUESTION IS WHEN THE NEXT ERUPTION OF DIGITAL CHANGE WILL
OCCUR.
• IT HAS HAPPENED AND WILL HAPPEN AGAIN. LET’S TAKE A LOOK AT SOME
OTHER EXAMPLES:

• DID THE PRINTING INDUSTRY THINK THAT ONLINE PUBLISHING WOULD

SHAKE UP ITS BUSINESS MODEL WHEN IT FIRST BECAME POPULAR?
• DID THE TAXI INDUSTRY CARE ABOUT UBER WHEN THE COMPANY FIRST
LAUNCHED IN 2009? (IT SURELY DOES NOW!)

• DID YOU THINK YEARS AGO THAT AN INTERNET SEARCH COMPANY WOULD
DOMINATE THE ONLINE ADVERTISING WORLD—AND BUILD SELF DRIVING
CARS ON TOP OF THAT?

• DIDA COMPANY LIKE HYATT THINK THAT A WEBSITE LIKE AIRBNB WOULD
DISRUPT ITS INDUSTRY AND HAVE A HIGHER VALUATION IN JUST UNDER A
DECADE?

• DID GOVERNMENTS AND BANKS WORRY ABOUT CRYPTOCURRENCIES

FIVE YEARS AGO? (THEY PROBABLY DIDN’T EVEN KNOW WHAT THEY
WERE.)
DIGITAL STRATEGY
WHAT IS AND HOW TO DEFINE IT
 Really, digital strategy refers to the strategy a
company would apply to all of its digital
initiatives.
DIGITAL
STRATEGY VS ONLINE This includes the entire process: collecting all required
information, planning, identifying risks and

MARKETING opportunities, maintaining your digital strategy, and

creating substrategies such as your digital-marketing
The term digital strategy is often used strategy.
interchangeably with online-marketing
This effectively means that your digital strategy sits on
strategy. top of everything, including substrategies such as your
mobile strategy, web strategy,
customer-relationship-management (CRM) strategy,
However, the former should focus on the entirety and so forth.
of digital assets used within your organization.
DIGITAL STRATEGY VS ONLINE
MARKETING/2
• THE BEST WAY TO DEFINE A DIGITAL STRATEGY IS AS A THOROUGH
 EVALUATION OF ALL YOUR DIGITAL ASSETS AND THE CREATION OF A PLAN
TO CONTINUOUSLY IMPROVE THEM SO THAT THEY POSITIVELY CONTRIBUTE
TO YOUR BUSINESS OBJECTIVES.

• IT’S NOT ABOUT PREDICTING THE FUTURE AS MUCH AS IT IS ABOUT

KNOWING THE PRESENT STATE OF THE DIGITAL SOLUTIONS WITHIN YOUR
ORGANIZATION.

• OFTEN THERE IS MISPERCEPTION THAT YOU NEED TO BE A DIGITAL EXPERT

TO CREATE ONE IN THE FIRST PLACE.

• OBVIOUSLY, SOME DIGITAL KNOWLEDGE IS REQUIRED. HOWEVER, YOU

DO NOT NEED TO BE AN INDUSTRY EXPERT TO HAVE A VISION OF WHAT IS
GOING TO HAPPEN IN THE FUTURE.

• WHAT YOU REALLY NEED IS A GOOD SET OF PLANNING TOOLS AND

GUIDELINES THAT STREAMLINE DIGITAL ASSETS ACROSS THE
ORGANIZATION.
FAMOUS WORDS TIME

DIGITAL
STRATEGY VS ONLINE
MARKETING/3
• MOST COMPANIES DON’T HAVE THE TIME OR
THE RESOURCES TO STUDY THE DIGITAL MARKET
ON A MONTHLY BASIS.
• DIGITAL INNOVATION DOESN’T EVEN HAPPEN
THIS WAY. • COMPANIES ARE NOT PRONE TO
BEING OVERRUN BY A NEW DIGITAL INNOVATION
OR A COMPETITOR JUST BECAUSE THEY DIDN’T
PREDICT SOMETHING NEW THAT IS ABOUT TO HIT
THE MARKET.
• THEY ARE OVERRUN BECAUSE THEY INNOVATE
TOO SLOWLY.
• YOUR DIGITAL STRATEGY AND THE SIMPLE FACT
THAT YOU ARE CREATING ONE WILL, HOWEVER,
HELP YOU TO IDENTIFY SUCH RISKS AT AN EARLY
STAGE.
• BY EVALUATING YOUR CURRENT SITUATION,
YOU WILL FIND THE GAPS WITHIN YOUR DIGITAL
OFFERING AND THE AREAS IN WHICH YOUR
COMPETITORS ARE STRONGER, AND
EVENTUALLY, YOU WILL SPOT THE OPPORTUNITIES.
 WHY DO WE NEED A DIGITAL
STRATEGY?

• YOUR DIGITAL STRATEGY WILL HELP YOUR

ORGANIZATION TO CONSOLIDATE AND ALIGN ALL
DIGITAL EFFORTS WITH COMMON BUSINESS OBJECTIVES.

• WHETHER YOU ARE AN IT COMPANY, A BANK, A

MAINTENANCE COMPANY, A LOGISTICS COMPANY,
OR YOU OPERATE IN AGRICULTURE, THERE WILL BE
DIGITAL TOOLS TO IMPROVE YOUR BOTTOM LINE BY
INCREASING PRODUCTIVITY, RUNNING YOUR SYSTEMS,
AND MARKETING YOUR SERVICES.
WHY DO WE NEED A DIGITAL
STRATEGY?/2
• EVERYTHING YOU DO IN YOUR ORGANIZATION IS THEREFORE
CONNECTED TO YOUR DIGITAL STRATEGY.

• THIS IS ALSO THE REASON WHY YOUR STRATEGY WILL HAVE TO BE

ALIGNED WITH YOUR BUSINESS GOALS.

• ANY INVESTMENT YOU MAKE AS A BUSINESS WILL HAVE TO GET

YOU SOME SORT OF RETURN.

• IN ORDER TO OBTAIN THIS RETURN ON INVESTMENT, YOU NEED TO

MAKE SURE THAT AT THE END OF EACH SYSTEM OR INITIATIVE YOU
ROLL OUT, THERE IS A MEASURABLE RATIONALE TO SEE IF IT IS A
SUCCESS OR NOT.

• AS A RESULT, YOU WILL ALSO START OPTIMIZING YOUR DIGITAL

TOOLS TO CREATE ONE COHERENT SYSTEM TO IMPROVE YOUR
RESULTS.
FAMOUS WORDS TIME
WHY DO WE NEED A DIGITAL
STRATEGY?/3

• IN SETTING UP YOUR DIGITAL STRATEGY, YOU WILL EVALUATE

ALL OF THE COMPONENTS THAT MAKE UP YOUR ENTIRE
 DIGITAL ECOSYSTEM.
• FROM YOUR WEBSITE TO YOUR CUSTOMER-RELATIONSHIP
MANAGEMENT SYSTEM, FROM YOUR ENTERPRISE-RESOURCE
MANAGEMENT SYSTEM TO YOUR ONLINE-MARKETING
CAMPAIGNS, EVERYTHING NEEDS TO BE INCLUDED IN YOUR
STRATEGY.
• MANY COMPANIES STILL THINK IN SILOS AND DON’T SEE THE
NEED TO EXCHANGE DATA BETWEEN DEPARTMENTS. • THIS
CAN LEAD TO A LOT OF MISSED OPPORTUNITIES.
Your digital strategy will help you define
your future goals, and eventually new
opportunities or risks will surface and
become visible.
Some of these opportunities, however,
may also require a good
understanding of what kind of digital
innovation is taking place in your
Most of these will come to light industry.
naturally, as you will look at your
business from all angles during the initial
audit of your systems.
 CD manufacturers, but also the printers creating
the CD covers, Walkman and other
portable-music-player companies, hi-fi-stereo
producers, record shops, the record labels, and
so forth.

WHY DO WE NEED
A
But that wasn’t the end of all threats.

DIGITAL
STRATEGY?/4
For example, the MP3 did not reach the masses
until the entire ecosystem around it developed.
WHY DO WE NEED
A
DIGITAL
STRATEGY?/5
This included such apparatuses as portable
players, software players, and CD rippers.

This means that the MP3 did not disrupt only the
WHY DO WE NEED A DIGITAL
STRATEGY?/6

THE MUSIC INDUSTRY LOST EVEN MORE CONTROL TO COMPANIES LIKE

APPLE, MICROSOFT, GOOGLE, AND AMAZON, WHICH NOW
DOMINATE THE MUSIC-DISTRIBUTION MARKET THROUGH SERVICES LIKE
ITUNES, MICROSOFT GROOVE, GOOGLE PLAY MUSIC, AND
AMAZON MUSIC.
EVEN SPOTIFY OR PANDORA, WHO HAVE BEEN IN THE MUSIC
STREAMING BUSINESS FOR MUCH LONGER THAN MOST OF THE
AFOREMENTIONED SERVICES, ARE NOW BATTLING WITH NEW PLAYERS
SUCH AS TIDAL ABOUT MARKET SHARE.

THERE IS A FINE LINE BETWEEN DISRUPTION AND COMPETITIVENESS.

TECHNOLOGICALLY LED DISRUPTIONS ARE SIGNIFICANT SHIFTS THAT
CAN LAST FOR DECADES, AND COMPANIES NEED TO REACT TO THEM.
WHY DO WE NEED A DIGITAL
STRATEGY?/7

NOW, ONE MAY ARGUE THAT THE DISRUPTION THESE SERVICES CAUSE
IS NOT NECESSARILY DIRECTLY LINKABLE TO THE INVENTION OF THE
MP3.
IF THIS WAS THE CASE, WE COULD GO BACK AND SAY THAT THE
INVENTION OF THE COMPUTER—OR EVEN ELECTRICITY ITSELF—
MESSED UP THE MUSIC INDUSTRY.

THIS IS A VERY IMPORTANT POINT: A NUMBER OF SEQUENTIAL

INNOVATIONS CAUSE ALL DISRUPTION WE EXPERIENCE. THAT’S WHY
IN ORDER TO COUNTER DIGITAL DISRUPTION, WE NEED TO LEARN
HOW TO INNOVATE OURSELVES.
 WÜRT
HA CASE

STUDY

WÜRTH/1
• WÜRTH, A GERMAN COMPANY KNOWN FOR BEING A LEADING
GLOBAL WHOLESALER OF SCREWS, AMONG OTHER THINGS, HAS
A VERY CLEVER SALES STRATEGY: PLACING BRANDED SHELVES IN
COMPANIES THAT NEED SCREWS AND OTHER HARDWARE PARTS TO
DO THEIR DAY-TO-DAY BUSINESS.

• WÜRTH PLACES THESE SHELVES IN GARAGES, FACTORIES, AND

LOGISTIC COMPANIES FREE OF CHARGE.
• EACH MONTH (OR SOONER, DEPENDING ON PAST CONSUMPTION), A
SALES REP COMES TO INSPECT THE SHELF AND REPLENISH THE STOCK.

• COMPANIES ARE WILLING TO PAY HIGHER FEES JUST TO AVOID

HAVING TO WORRY ABOUT ORDERING NEW PARTS AND
REPLENISHING THEIR STOCK.

• THIS STRATEGY ENABLES WÜRTH TO BUILD DATA ABOUT WHO

CONSUMES WHICH PRODUCTS AND HOW OFTEN AND TO APPLY THE
INFORMATION TO STREAMLINE ITS OWN PRODUCTION LINES.

THIS MASSIVE ADVANTAGE TECHNICALLY PUTS

THE COMPANY IN CONTROL OF THE
INVENTORY OF ITS CUSTOMERS’ PARTS.
WHY DO WE NEED A DIGITAL
STRATEGY?/8
• THIS TYPE OF INTELLIGENCE CAN BE APPLIED TO MANY BUSINESSES.
• IF YOU OWN A HAIR SALON, YOU CAN SEND REMINDERS TO CUSTOMERS TO
SCHEDULE APPOINTMENTS FOR TRIMS OR OFFER THEM A DISCOUNT IF THEY ARE
OVERDUE FOR A VISIT.

• IF YOU OPERATE A GARAGE, YOU CAN ALERT YOUR CLIENTS ABOUT THEIR NEXT OIL
CHANGE OR REPLACING THEIR TIRES.
• IF YOU ARE IN THE AIR CONDITIONING BUSINESS, YOU CAN OFFER INSPECTIONS
AND MAINTENANCE TO YOUR PATRONS AT THE RIGHT TIME.

• ALL OF THIS CAN BE DONE MANUALLY USING HUMANS AND A SHEET OF PAPER.
• BUT AS YOUR BUSINESS GROWS, THIS WILL BECOME HARDER AND YOU WILL END UP
USING TECHNOLOGY TO CRUNCH THE DATA.

• IF YOU ALREADY HAVE THE TECHNOLOGY IN PLACE, YOUR DIGITAL STRATEGY WILL
HELP YOU USE IT TO ITS FULL ADVANTAGE TO SEIZE OPPORTUNITIES AND MITIGATE
RISKS.
FAMOUS WORDS TIME

WHY DO WE NEED A DIGITAL

STRATEGY?/9
• IT IS IMPORTANT TO KEEP IN MIND THAT IN THE END, THE PURPOSE OF YOUR DIGITAL
 STRATEGY IS TO POSITIVELY IMPACT YOUR BOTTOM LINE EITHER BY SAVING YOU
MONEY OR BY INCREASING YOUR VALUE AND GENERATING MORE SALES.

• WE NEED TO SET UP THE RIGHT KEY-PERFORMANCE INDICATORS (KPIS), WHICH

WILL ENABLE YOU TO MEASURE AND EVALUATE YOUR DIGITAL STRATEGY.

• AFTER ALL, WITHOUT HAVING ESTABLISHED A CLEAR WAY OF MEASURING

SUCCESS, YOU RUN THE RISK OF WASTING TIME AND RESOURCES ON INITIATIVES
THAT ARE NOT REALLY HELPING YOUR BUSINESS MOVE FORWARD.

• DIGITAL-MARKETING SPECIALISTS OVER THE YEARS HAVE USED THE

MEASURABILITY OF DIGITAL SOLUTIONS AS ONE OF THE MAIN SELLING POINTS
WHEN PITCHING THEIR SERVICES AND CONVINCING CUSTOMERS TO CHANGE
FROM OFFLINE TO ONLINE ADVERTISING.

• THIS IS TRUE: DIGITAL MEDIA CAN BE MEASURED LIKE NOTHING ELSE. MOST
COMPANIES, HOWEVER, STRUGGLE TO MAKE SENSE OF THEIR ACTUAL DATA.

AND WHAT HAPPENS IF YOU

DON’T HAVE A DIGITAL
STRATEGY?
• THERE SHOULD BE NO MORE DOUBT THAT WITHOUT A CLEAR
DIGITAL STRATEGY, YOUR BOTTOM LINE WILL SUFFER THROUGH
EITHER EFFICIENCY DEFICITS OR DECREASED COMPETITIVENESS IN
 YOUR MARKET.
• IN SHORT, BY DEFINING YOUR DIGITAL STRATEGY YOU WILL
MANAGE YOUR OPPORTUNITIES AND RISKS EFFECTIVELY AND
PREPARE YOUR COMPANY FOR DIGITAL DISRUPTION.
• SETTING UP A WELL-DEFINED STRATEGY WILL HELP YOUR
ORGANIZATION TO MAKE THE RIGHT DECISIONS AND AVOID
WASTING MONEY ON RANDOM SOLUTIONS OR TRIAL-AND-ERROR
IMPLEMENTATIONS.

• EVENTUALLY, ONCE YOU PERFECT YOUR DIGITAL OFFERING, YOU

WILL START INNOVATING.
FAMOUS WORDS TIME

AND WHAT HAPPENS IF YOU

DON’T HAVE A DIGITAL
STRATEGY?/2
• WHILE THIS SOUNDS PRETTY STRAIGHTFORWARD AT FIRST, THE REAL COMPLEXITY OF
DIGITAL MEDIA IN THE CURRENT AGE COMES FROM THE WAY DIGITAL TOOLS ARE
ENTRENCHED INTO ALL DEPARTMENTS OF AN ORGANIZATION.

• FROM MARKETING TO HUMAN RESOURCES (HR) TO SALES TO PRODUCTION, YOU WILL

FIND DIGITAL TOOLS EVERYWHERE.

• WITHOUT SETTING A CLEAR DIGITAL STRATEGY, YOU HAVE NO CHANCE TO CONSOLIDATE

OR OPTIMIZE YOUR ACTIVITIES.

• IF EVERY DEPARTMENT IS RUNNING ITS OWN INDEPENDENT PROGRAM OVER TIME, YOU
WILL END UP IN A MESS OF DIGITAL WASTE.

• IN SOME COMPANIES, TWO DEPARTMENTS COMMISSIONED TWO AGENCIES TO BUILD THE

SAME WEBSITE, OR ONE DEPARTMENT REBUILDS A TOOL THAT ALREADY EXISTED, JUST
BECAUSE THERE WAS NO CONSOLIDATION OF EFFORTS ACROSS THE ORGANIZATION.

• IF THERE IS NO CENTRAL BODY GOVERNING YOUR DIGITAL ASSETS, YOUR COMPANY IS AT

RISK OF LOSING ALL KNOWLEDGE WITH THE DEPARTURE OF KEY PERSONNEL.
FAMOUS WORDS TIME
DIGITAL STRATEGY
COMPONENTS

THREE COMPONENTS:
 • DEFINE CHALLENGES
• CREATE GUIDELINES
• ROLL OUT IN ACHIEVABLE STEPS
DEFINE CHALLENGES AND
OBJECTIVES
THE FIRST STEP IS TO DEFINE THE CHALLENGES AND OBJECTIVES YOU HAVE AS AN
ORGANIZATION.

THESE ARE NOT ONLY DIGITAL BUT ALSO INCLUDE OVERALL ISSUES YOUR BUSINESS
MAY FACE.

• DO YOU NEED MORE SALES, TO INCREASE YOUR BRAND AWARENESS, TO

ENHANCE YOUR CUSTOMER SUPPORT?

• ARE YOUR COMPETITORS STEALING YOUR CUSTOMERS?

YOUR STRATEGY SHOULD ADDRESS ALL OF THESE CHALLENGES.
THE SAME GOES FOR YOUR OBJECTIVES:
• WHERE DO YOU WANT THE COMPANY TO GO?
 • DO YOU WANT TO TRANSFORM DIGITALLY, BECOME MORE CUSTOMER-CENTRIC,
AND EXPAND TO NEW MARKETS?

• YOUR DIGITAL STRATEGY MUST CONSIDER ALL OF THESE OBJECTIVES.

CREATE GUIDELINES

THE NEXT STEP IS TO CREATE GUIDELINES AND SUBSTRATEGIES

FOR EACH OF YOUR OBJECTIVES.

• HOW DO YOU PLAN TO INCREASE YOUR BRAND

AWARENESS? • HOW WILL YOU INCREASE SALES?
YOUR GUIDELINES, MEASUREMENT PLANS, SCOPE, AND ROAD
MAPS WILL EXPLAIN IN DETAIL HOW YOU WILL EXECUTE YOUR
STRATEGY AND MAINTAIN IT, AND HOW YOU WILL ITERATE AND
MEASURE PROGRESS TO ACHIEVE CONTINUOUS
 IMPROVEMENT.

ROLL OUT IN ACHIEVABLE STEPS

• FINALLY, IT’S TIME TO EXECUTE YOUR STRATEGY IN ACHIEVABLE STEPS.
• THE WORST THING THAT CAN HAPPEN IS TO SPEND TWO YEARS
WORKING ON A PLAN AND THEN REALIZE THAT IT WAS WRONG, THE
INDUSTRY MOVED IN ANOTHER DIRECTION, OR THE WHOLE THING
WAS DELAYED.

• ITERATION IS KEY: GETTING DATA, LEARNING, AND IMPROVING IS THE

ONLY WAY TO SUCCEED. THEREFORE, PROJECTS SHOULD BE ROLLED
OUT IN CHUNKS SO YOU CAN TEST WHAT YOU ARE DOING WHILE YOU
MOVE FORWARD OVERALL.
 PDCA CYCLE (DEMING CYCLE)
WHAT A DIGITAL STRATEGIST IS NOT
• AT THIS STAGE, IT SHOULD BE CLEAR THAT A DIGITAL STRATEGIST
IS MORE THAN JUST THE GEEK WHO KNOWS TECHNOLOGY.
• THIS ROLE REQUIRES UNDERSTANDING A BUSINESS INSIDE AND OUT. • IT REQUIRES
UNDERSTANDING THE CHALLENGES, SEEING THE BIGGER PICTURE, AND BEING ABLE TO
GET ENTIRE DEPARTMENTS TO FOLLOW YOUR LEAD TO DIGITAL EXCELLENCE.

• THESE DAYS THIS IS A CHALLENGING BUT EXCITING JOB FOR MOST ORGANIZATIONS,
AND IT BRINGS WITH IT A LOT OF OPPORTUNITIES TO GROW YOUR BUSINESS.

WHO IS INVOLVED IN DIGITAL

STRATEGY?
 • YOUR DIGITAL STRATEGY CONCERNS YOUR ENTIRE
ORGANIZATION.

• THEREFORE, YOUR MARKETING, SALES, IT, BUSINESS, AND HR

DEPARTMENTS PLAY A VITAL ROLE IN ITS SUCCESS.

• ONLY WITH THEIR SUPPORT AND INPUT WILL YOUR ORGANIZATION

BE ABLE TO PRACTICE DIGITAL EXCELLENCE.

• THIS WILL REQUIRE A LOT OF LOBBYING AND GETTING PEOPLE ON

BOARD.

EXAMPLE 1: CORPORATE WEB SITE

REWRITING FROM SCRATCH THE CORPORATE WEB SITE EVERY TWO YEARS DOES NOT
ONLY IMPROVE THE AESTHETICS OF THE SITE BUT ALSO:
• DESTROYS SEARCH ENGINE RANKINGS
• CREATE A NEW STRUCTURE BASED ON SUBJECTIVE IDEAS THAN ON REAL DATA •
 LOSE ANALYTICAL DATA
• LOSE BACKLINKS FROM OTHER SITES
• AND MORE …
LESSON LEARNED: DO NOT RE-CREATE BUT CONTINUOUSLY IMPROVE

VISION, STRATEGY AND

TACTICS STRATEGY DRIVES TACTICS
NOT VISION
CLASS ASSIGNMENT 1
SPORTSWEAR AND EQUIPMENT
COMPANY
• A 30-YEARS OLD US SPORTSWEAR AND
EQUIPMENT COMPANY WANTS TO DEFINE ITS
DIGITAL STRATEGY
• CURRENT STATE: SELLS IN US ONLY, ONLY
SPORTSWEAR AND SPORT EQUIPMENT, STRONG
COMPETITION ON FOOTWEAR, HIGH-RISK OF
LOSING MARKET SHARE ON ALL SECTORS
• DEFINE: THE VISION, THE STRATEGY, SOME TACTICS
AND RELATED OBJECTIVES
 CA1 SOLUTION
• UNDER ARMOUR IS A SPORTSWEAR AND EQUIPMENT COMPANY
FOUNDED IN 1996, KNOWN FOR INNOVATIVE ATHLETIC APPAREL. THEY
BEGAN AS A PROVIDER OF WHOLESALE APPAREL AND ARE
TRANSFORMING INTO A DIGITAL BUSINESS THAT USES DATA TO ASSIST
CUSTOMERS IN ACHIEVING THEIR FITNESS GOALS.

• THE CHALLENGES
• AS A RESULT OF THE RAPID DIGITAL TRANSFORMATION PROCESS, BOTH
CUSTOMER AND MARKET DEMANDS WERE IN A CONSTANT STATE OF
FLUX. MOREOVER, THE FOOTWEAR INDUSTRY WAS EXTREMELY
COMPETITIVE, AND UNDER ARMOUR FACED A HIGH RISK OF LOSING
MARKET SHARE TO WELL KNOWN COMPETITORS SUCH AS NIKE,
ADDIDAS, AND PUMA. THEREFORE, THE BUSINESS WAS URGED TO
FIND A WAY TO DIFFERENTIATE ITSELF WHILE MAINTAINING CUSTOMER
ENGAGEMENT.
CA1 SOLUTION/2
• THE DIGITAL TRANSFORMATION APPROACH
• UNDER ARMOUR’S DIGITAL TRANSFORMATION WAS FUELED BY
A COMPREHENSIVE OMNICHANNEL SYSTEM MODERNIZATION.
THE BRAND SUCCESSFULLY TRANSITIONED FROM A DOMESTIC
WHOLESALE APPAREL COMPANY TO A GLOBAL RETAIL
COMPANY WITH MULTIPLE CHANNELS, ADOPTING AN AGILE
DEVELOPMENT MODEL, WITH THE ASSISTANCE OF THE ERP
SYSTEM AND, LATER, ERP SAP HANA.

• THE DIGITAL STRATEGY OF UNDER ARMOUR WAS ALSO

CUSTOMER-CENTRIC, POSITIONING THE CUSTOMER AT THE
CENTER OF EVERYTHING THE COMPANY DID. AS THEY
ESTABLISHED A DATA-DRIVEN FITNESS STRATEGY, THE
COMPANY DEMONSTRATED ITS ASPIRATION TO BECOME
MUCH MORE THAN AN ATHLETIC APPAREL COMPANY.
CA1 SOLUTION/3

• UNDER ARMOUR SPENT $715 MILLION TO ACQUIRE

TECHNOLOGY-BASED FITNESS COMPANIES SUCH AS
MAPMYFITNESS, MYFITNESSPAL, AND EUROPEAN FITNESS APP
ENDOMONDO. THESE COMPANIES SUPPLIED UNDER ARMOUR
WITH THE NECESSARY TECHNOLOGY AND A LARGE CUSTOMER
DATABASE IN ORDER TO GET THEIR FITNESS APP UP AND
RUNNING.

• TO BETTER SUPPORT CUSTOMERS IN ACHIEVING THEIR FITNESS

GOALS, UNDER ARMOUR COMBINED THEIR PHYSICAL AND
DIGITAL PRODUCTS TO INTRODUCE A NEW TOOL NAMED
ARMOURBOX. CUSTOMERS COULD GO ONLINE AND SHARE
THEIR TRAINING SCHEDULE, THEIR FAVORITE SHOE STYLE, AND
THEIR FITNESS GOALS. UNDER ARMOUR USED ADVANCED
ANALYTICS TO SEND CUSTOMERS NEW SHOES OR APPAREL ON A
SUBSCRIPTION BASIS, THEREBY OFFERING THEM A MORE
SIGNIFICANT VALUE OVER THEIR LIFETIME.
CA1 SOLUTION/3

THE RESULTS
• ALONG WITH DIGITAL TRANSFORMATION, UNDER ARMOUR HAS
CREATED A DIGITAL BRAND WITH A STRONG CUSTOMER FOCUS,
AGILITY, AND CHANGE CULTURE. THEY ARE THE LEADING
SPORTSWEAR BRAND IN DELIVERING A SEAMLESS CUSTOMER
EXPERIENCE.

• UNDER ARMOUR IS NOW A MULTINATIONAL BRAND WITH A

VALUATION OF $5.683 BILLION IN 2021, MAKING THIS BRAND
LISTED AMONG THE SUCCESSFUL DIGITAL TRANSFORMATION CASE
STUDIES.
 STRATEGY CREATION
CREATE AN EFFECTIVE DIGITAL STRATEGY
BOOK REFERENCE
• RAUSER, ALEXANDER.
• DIGITAL STRATEGY: A GUIDE TO DIGITAL BUSINESS TRANSFORMATION
(ENGLISH EDITION)
• CHAPTER 2 “STRATEGY CREATION”
STEPS TO CREATE THE STRATEGY

• STAKEHOLDERS INTERVIEW (INTERNAL AND EXTERNAL

QUESTIONS, ADDITIONAL SUGGESTIONS, ASSETS SHEET)
• TOP MANAGEMENT (BUSINESS OBJECTIVES, CURRENT
INITIATIVES)

• DEPARTMENT HEADS (DETAILS, SYSTEMS, MEASURES, …) •

 END USERS

• DEFINE THE ASSET INVENTORY

ASSET
INVENTORY
SAMPLE
STEPS TO CREATE THE STRATEGY/2
• GATHER BUSINESS OBJECTIVES
• CREATE A BO MAP
STEPS TO CREATE THE STRATEGY/3
 • DEFINE KPIS FOR EACH OBJECTIVE
• AUDIT THE ASSETS
• SWOT ANALYSIS
• CREATE THE ASSET MAP
ASSET MAP
• THIS IS A VISUAL REPRESENTATION OF
YOUR DIGITAL ECOSYSTEM AND SHOWS
HOW EVERYTHING WORKS TOGETHER.

• YOU CAN USE ANY DRAWING TOOL OR

EVEN MIND-MAPPING SOFTWARE TO PUT
YOUR ASSETS ON A MAP.

• THE MAP SHOULD INCLUDE THE NAME

 OF THE ASSET, THE OWNER, AND THE
CONNECTION TO OTHER ASSETS.
STEPS TO CREATE THE STRATEGY/4

PLANNING OF NEW ASSETS

• HOW TO IDENTIFY THEM
• 1.THE BUSINESS OBJECTIVES THAT WE HAVE NOT
YET BEEN ABLE TO MAP TO AN EXISTING ASSET •
2.THE OPPORTUNITIES WE DISCOVERED DURING
THE AUDIT OF OUR ASSETS THAT MAY REQUIRE
ADDITIONAL SYSTEMS OR MODIFICATIONS

• INTERNAL NEEDS
• EXTERNAL NEEDS
STEPS TO CREATE THE
STRATEGY/5 IDENTIFY RISKS
• INDUSTRY DISRUPTORS AND THEIR BUSINESS PLANS
• DISCOVER COMPETITIVE ADVANTAGE OVER
COMPETITORS
• THEIR CUSTOMER EXPERIENCE
• THEIR FEATURES AND GENERAL OFFERING
• MEASURE AND BENCHMARK THEIR SYSTEMS PERFORMANCE •
REVIEW MARKETING STRATEGIES
• IDENTIFY AREAS OF ONLINE ACTIVITY
• DEALING WITH TECHNOLOGY INNOVATIONS

STEPS TO CREATE THE STRATEGY/6

PRIORITIZATION AND INTEGRATION OF YOUR DIGITAL ASSETS
• PRIORITY
• QUICK WINS
• BIGGEST IMPACT ON YOUR BUSINESS
• COST OR DIFFICULTY TO IMPLEMENT
• HOW TO INTEGRATE OTHER STRATEGIES
• BUDGETING
• ROI CALCULATION FOR ASSETS
• COST REDUCTION
• TIME IS MONEY
BUDGETING

• CREATION COSTS •
 OPERATION COSTS •
MAINTENANCE COSTS •
UPGRADE COSTS •
MARKETING COSTS •
DISMISSION COSTS

ROI CALCULATION FOR ASSETS

������ = ������ ∙�� − ��

 ��

ROI IS RETURN ON INVESTMENT (%)

R IS RETURN, I.E. HOW MUCH MONEY RETURNS AFTER INVESTMENT (INCOME) I
IS INVESTMENT, I.E. HOW MUCH MONEY HAS BEEN PAID FOR THE INVESTMENT

BUSINESS
OBJECTIVES
ASSETS MAP
CLASS ASSIGNMENT 2
QTU DIGITAL STRATEGY
CREATION
• ABOUT 20 YEARS OF ACTIVITY
• OBJECTIVES:
• INCREASE AVERAGE SHOP SALES BY 15% IN TWO
YEARS,

• REDUCE INFRASTRUCTURE COSTS BY 10% IN THREE

YEARS,

• ENHANCE SECURITY (DEFINE A METRIC AND A

VALUE IN TIME),

• INCREASE AVERAGE NUMBER OF VISITORS BY 20%

AND REDUCE THEIR STANDARD DEVIATION (I.E.
MORE CROWDED EVERY DAY) BY 20% IN TWO
YEARS
 STRATEGY IMPLEMENTATION
MAKING IT REAL
BOOK REFERENCE
• RAUSER, ALEXANDER.
• DIGITAL STRATEGY: A GUIDE TO DIGITAL BUSINESS TRANSFORMATION
(ENGLISH EDITION)
• CHAPTER 3 “STRATEGY IMPLEMENTATION”