Role of Digital Strategy Office in Business Model Transformation
Companies across industry segments are gradually embracing “digital innovation.” The growth of digital products, technologies, and platforms has launched a new phase of competition in the market. Industry predictions for the next decade are no longer indicative or relevant due to the pace and nature of changes.
Although companies have recognized the need to be digital, the question of who will drive and participate in digital transformation remains.
Read on to learn the transformation journey of an organization to embrace digital innovation to achieve its strategic objectives.
The digital landscape at most organizations consists of an unstructured collaboration between different units and these units usually work in silos.
The digital landscape consists of decentralized business units which define localized digital asset creation and management requirements. The IT unit enables each Business Unit separately with an external digital partner ecosystem. While the Business Unit leads digital Asset Management policy and implementation.
More often than not, however, the collaboration is not structured between the following three units of an organization
- Business Unit
- Digital Partners
Moreover, units working in silos results in challenges to the organizations such as :
- Limitations in defining, understanding, and enabling a user’s journey using web 3.0 and digital technologies
- Lost opportunities for achieving cost savings through synergies between different platforms.
- Underutilized capability to deliver in an agile way preventing IT to become the driver of digital
- Inefficient stacks as a result of disparate technologies by incongruent vendor ecosystems
The existing business approach and the limitations of the existing model for most of the organizations had difficulties in achieving the business objective.
Approaching the issue
In today’s digital world, growth and innovation are tough to accomplish without strong collaboration between business and IT and there is a need to establish a robust engagement model to achieve the desired organizational objectives.
This can be achieved by setting up a digital strategy office for a structured collaboration between different units.
Digital Strategy office will achieve the objective of easy access to information and engagement which can be achieved through personalized user journeys by:
- Creation of diverse experiences through innovation in organization and visualization.
- Personalization of timing, visibility, and form of content to stage of a user’s journey and their purposes.
- Enabling learning of impact evaluation methods by constructing relevant engagements.
A partnership through the formation of a Digital Strategy office will enable a structured collaboration between IT, Business Units, and external Digital Partners - leading to fulfilling of the strategic objectives
The digital transformation office with defined Objectives & Strategy, Vision & Mission through Digital Competency, Centralized Digital Stack, User Journeys, Technology Implementation will lead to the fulfillment of business objectives of the organization
The Objective of the Digital Transformation Office is to redefine the core value proposition of the user by adding value through every user interaction, and thus change the operating model to augment existing workflow without redefining the bottom line proposition.
This will be achieved through:
- Enhancing existing value proposition with digital experience throughout the user journey
- Formulating a Digital Strategy and roadmap
- Implementing Digital technologies through an ecosystem of partners
- Personalized Engagement
- Learning from acquired information
- Integrating new digital means into the operating model
The approach of transformation of business model to create a Digital strategy office will lead to better coordination between the verticals of Business, IT and Digital partners leading to :
- High degree of agility in development and implementation of digital strategy
- New simplified processes and an organizational structure that is lean, agile, and user-focused
- Comprehensive digital transformation via disruption of inefficient processes