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Driving Digital Strategy: A Guide to Reimagining Your Business
Digital transformation is no longer news--it's a necessity.
Despite the widespread threat of disruption, many large companies in traditional industries have succeeded at digitizing their businesses in truly transformative ways.
The New York Times, formerly a bastion of traditional media, has created a thriving digital product behind a carefully designed paywall. Best Buy has transformed its business in the face of Amazon's threat. John Deere has formed a data-analysis arm to complement its farm-equipment business. And Goldman Sachs and many others are using digital technologies to reimagine their businesses. In Driving Digital Strategy, Harvard Business School professor Sunil Gupta provides an actionable framework for following their lead.
For over a decade, Gupta has studied digital transformation at Fortune 500 companies. He knows what works and what doesn't. Merely dabbling in digital or launching a small independent unit, which many companies do, will not bring success. Instead you need to fundamentally change the core of your business and ensure that your digital strategy touches all aspects of your your business model, value chain, customer relationships, and company culture. Gupta covers each aspect in vivid detail while providing navigation tips and best practices along the way.
Filled with rich and illuminating case studies of companies at the forefront of digital transformation, Driving Digital Strategy is the comprehensive guide you need to take full advantage of the limitless opportunities the digital age provides.
Despite the widespread threat of disruption, many large companies in traditional industries have succeeded at digitizing their businesses in truly transformative ways.
The New York Times, formerly a bastion of traditional media, has created a thriving digital product behind a carefully designed paywall. Best Buy has transformed its business in the face of Amazon's threat. John Deere has formed a data-analysis arm to complement its farm-equipment business. And Goldman Sachs and many others are using digital technologies to reimagine their businesses. In Driving Digital Strategy, Harvard Business School professor Sunil Gupta provides an actionable framework for following their lead.
For over a decade, Gupta has studied digital transformation at Fortune 500 companies. He knows what works and what doesn't. Merely dabbling in digital or launching a small independent unit, which many companies do, will not bring success. Instead you need to fundamentally change the core of your business and ensure that your digital strategy touches all aspects of your your business model, value chain, customer relationships, and company culture. Gupta covers each aspect in vivid detail while providing navigation tips and best practices along the way.
Filled with rich and illuminating case studies of companies at the forefront of digital transformation, Driving Digital Strategy is the comprehensive guide you need to take full advantage of the limitless opportunities the digital age provides.
345 pages, Kindle Edition
First published August 14, 2018
297 people are currently reading
1603 people want to read
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Displaying 1 - 30 of 47 reviews
September 13, 2018
I went into this book with high hopes, as my company is current making a big shift to digital and I was looking for a toolkit to help smooth this transition. Here's what I found: The first half of the book seemed like a conglomeration of short articles from Forbes, never diving too deep, only providing a few paragraph case study on a topic. On several occasions, the author mentions topics like AI, machine learning, deep learning, and so on, but treats them only as buzz words. The book seems to be targeted toward those who do not keep up with current trends in business. It does not provide much useful information for successful navigating a digital strategy, only THAT one should make the transition. The exception to this statement is the small sections on acquiring and engaging customers which I thought were very well done. However, I still feel that both sections could have been a long feature in an online magazine which a person could have read for free. Do not expect an excellent HBR article like 'Diamonds in the Data Mine' or the like. If, however, you've been living under a rock, this is the book for you!
July 27, 2018
There were very few revelations in this book. The target audience seems to be executives who have not read a business article in ten years. There were some occasionally interesting anecdotes about projects that companies have done, but I spent most of the book checking how many pages were left.
June 21, 2018
A very good and helpful book that help to understand how successful design strategies worked and help you to understand how they could be applied.
Highly recommended.
Many thanks to Harvard Business Review Press and Netgalley for this ARC
Highly recommended.
Many thanks to Harvard Business Review Press and Netgalley for this ARC
January 2, 2020
Amazing book , important for marketers as well as business owners , managers , leaders and students
Read
January 25, 2022The book promises, on its second page, to device an "all encompassing digital strategy" for you, while shepherding your whole company through the process. Yes, your company. After all, you are the business leader for whom the book has been composed. And it aims to "digitize" you and your business in a little more than 200 pages.
Being a recommended textbook in the MBA program, it comprises the business models, industry environments, sales & distribution, research & development, manufacturing, promotions & advertising, customer management, marketing budgets, supply chain management, change management, organization design, human resource management across Adobe, Amazon, Apple, Best Buy, Coca-Cola, Disney, Ford, GE, Goldman Sachs, Google, HUL, John Deere, JP Morgan Chase, Mastercard, Netflix, The New York Times, P&G, Siemens, Target, Tesco, T-mobile, Uber, Walmart, The Weather Company and other well-known firms in about 200 pages.
Of course, it is based on primary and secondary research, referenced chapter-wise, accessing most of which would require a subscription to the Harvard Business Review. And it is well written as well. Much more than the other readings recommended through the program. At the very least, it is a wide survey of the latest trends in business across industries internationally. At most it is a primer on developing a digital strategy for your business. In that regard, it might come in handy when you do have a business to manage. The book however, speaks as if you were already a CEO. Or a C-suite executive, at the minimum.
Considerable attention is spent on not just the promise but also the perils of new technology: mobiles, internet, social media, big data; with plenty of qualitative research describing their effectiveness and pointing out the multitude of misconceptions regarding the same. But it also engages in a lot of fluff. For eg. when describing the marketing strategies, trying to futilely contain their caprices in a rational framework, hoping that they could be repeated by someone else at some other place and time. A mandatory mention must be of the boat analogy that sneaks up now and again. I'm just relieved that it wasn't overdrawn to the captain, the crew and the tempestuous seas.
If it were assumed that anything that might work, would work by chance, then we would have nothing to work with. It is far more fruitful to assume that there is a unique set of activities that are key to success in business. Because then, we might find something close, if not the holy grail itself. Therefore, this book does fill a gap that has been created by the rapid innovations in recent year.
Being a recommended textbook in the MBA program, it comprises the business models, industry environments, sales & distribution, research & development, manufacturing, promotions & advertising, customer management, marketing budgets, supply chain management, change management, organization design, human resource management across Adobe, Amazon, Apple, Best Buy, Coca-Cola, Disney, Ford, GE, Goldman Sachs, Google, HUL, John Deere, JP Morgan Chase, Mastercard, Netflix, The New York Times, P&G, Siemens, Target, Tesco, T-mobile, Uber, Walmart, The Weather Company and other well-known firms in about 200 pages.
Of course, it is based on primary and secondary research, referenced chapter-wise, accessing most of which would require a subscription to the Harvard Business Review. And it is well written as well. Much more than the other readings recommended through the program. At the very least, it is a wide survey of the latest trends in business across industries internationally. At most it is a primer on developing a digital strategy for your business. In that regard, it might come in handy when you do have a business to manage. The book however, speaks as if you were already a CEO. Or a C-suite executive, at the minimum.
Considerable attention is spent on not just the promise but also the perils of new technology: mobiles, internet, social media, big data; with plenty of qualitative research describing their effectiveness and pointing out the multitude of misconceptions regarding the same. But it also engages in a lot of fluff. For eg. when describing the marketing strategies, trying to futilely contain their caprices in a rational framework, hoping that they could be repeated by someone else at some other place and time. A mandatory mention must be of the boat analogy that sneaks up now and again. I'm just relieved that it wasn't overdrawn to the captain, the crew and the tempestuous seas.
If it were assumed that anything that might work, would work by chance, then we would have nothing to work with. It is far more fruitful to assume that there is a unique set of activities that are key to success in business. Because then, we might find something close, if not the holy grail itself. Therefore, this book does fill a gap that has been created by the rapid innovations in recent year.
February 4, 2019
The structure of the book is superb. It includes relevant examples showing that digital transformation is a change in mindset... a gradual process which cannot be done through offloading a unit to drive innovations. it requires changing the DNA. The change will not be overnight but will have long term results. Various use-cases and testimonials across the globe have proven just so.
March 18, 2021
Where Companies Go Wrong
To mitigate the effects of digital disruption while also exploring new opportunities, companies have typically followed some combination of these three strategies–creating small, independent units or startups within the larger organization; doing a series of digital experiments; and/or leveraging technology to cut costs and improve efficiency. However, in most cases, these initiatives have led to limited success.
Independent Digital Units
Almost every large company launches independent digital units or has outposts in Silicon Valley, with the hope that a handful of young entrepreneurs will spark innovation for the firm.
Creating an independent unit is like launching a speedboat to turn around a large ship. Often the speedboat takes off but does little to move the ship.
Experiment Approach
Companies tend to run experiments, which makes a lot of sense given the rapidly changing environment and uncertainty about the future. This journey often begins with a few tactical experiments, typically in marketing departments, where employees are quick to try new social media tools or new mobile platforms. As the excitement around digital spreads throughout the organization, new initiatives start emerging all over the company, leading to a proliferation.
Leveraging Technology
A third approach is to leverage technology to reduce costs and improve the efficiency of operations. For instance, banks close branches as consumers move to online and mobile banking. Retail stores reduce their real estate footprint and close marginal stores. Processes are digitized and streamlined to minimize overlap and increase efficiency. Many of the internal tasks are redesigned to allow customers to self-serve, thereby reducing labor costs.
“Companies should always try to improve efficiency and minimize cost. However, if you rely solely on this approach, you are implicitly assuming that technology will not fundamentally change your business. Effectively you are assuming that banks, for instance, will still operate as before and that fintech companies won’t have a major impact on their business. In many cases this may be a flawed assumption.”
Digital Strategy
In order to be successful, you can’t just create a separate digital unit, or run experiments, or use technology to improve efficiency. Instead, you must make digital strategy an integral part of your overall business strategy. That is, rather than treating digital strategy as a separate exercise, you must embed it into the operations and DNA of your organization, in a way that touches all aspects of your business.
Crafting a Strategic View: A Framework for Reinventing Business
The framework consists of four key components:
Reimagining your business
Reevaluating your value chain
Reconnecting with customers
Rebuilding your organization
Reimagine Your Business
Given the dramatic changes that digital has caused, you’ll need to sit back and reflect on the core essence of your business, examining three components: scope, business model, and ecosystem.
“When considering scope, you’ll need to ask yourself this fundamental question: “What business are we in?”
Competition in the digital age usually comes laterally, from new players, and redefining the scope of your business is essential to ensuring future success. This requires a careful balance of broadening the scope of your business while staying within your core competencies.
Reevaluate Your Value Chain
Digital technology can significantly improve the efficiency and effectiveness of various parts of your value chain, especially as new models of R&D and innovation have emerged. Companies such as GE, P&G, and Siemens have leveraged open innovation to redefine their R&D process.
Digital technology has also ushered in a new era of Industry 4.0. Innovations such as digital manufacturing, virtual and augmented reality, 3-D printing, and digital supply chains are improving operational excellence.
Reconnect with Your Customers
“Digital technology has changed the way consumers search for information and buy products, and technology is enabling firms to collect information about the entire consumer decision journey or path to purchase, which will open up new ways for you to acquire customers.
Long before a consumer buys a car, she searches for information on Google, which provides an opportunity for auto manufacturers to understand her preferences and influence her behavior. Sensors in washing machines will soon allow Whirlpool to understand consumers’ usage behavior and even provide valuable consumption data about laundry detergent to P&G. And as consumers increasingly rely on online reviews and friends’ advice, you can monitor social media to understand how those friends and reviewers might be converted into brand advocates.
Rebuild Your Organization
Managing the digital transition in a large organization is a nontrivial task. As you try to strengthen your core business and build for the future at the same time, you’ll face the challenge of running two organizations in parallel. As a result, revenues and profits often decline during the transition period before they go back up, which can shake the resolve of even the most confident CEO.
Amazon competes with Barnes & Noble, Best Buy, and Walmart.
As an online platform
Amazon competes with eBay. In cloud computing, it battles for market share with IBM, Google, and Microsoft.
In streaming services, it has Netflix and Hulu as formidable competitors. Amazon Studios puts the company up against Disney and NBC Universal Studios.
Its entry into mobile phones put it in the crosshairs of Apple, HTC, and Samsung. Its ad network made it Google’s rival.
Competition Is No Longer Defined by Traditional Industry Boundaries
It should be clear from the discussion so far that competition is no longer defined by traditional product or industry boundaries. The rapid development of technology is making data and software integral to almost all businesses, which is blurring industry boundaries faster than ever before.
Amazon surprised Google by becoming the dominant competitor in the search market.
Apple is hiring automobile engineers at a rate that is scaring the auto industry. Netflix and, more recently, streaming services by HBO and CBS are causing concern for Comcast and other cable players.
Platforms
A platform offers scale with low capital investment, but it comes with limited control that may lead to poor customer experience. Companies that rely heavily on their platform spend enormous amounts of time and effort managing customer experience.
As devices become embedded with sensors, their value is less in the hardware itself and more in the interconnectedness of that hardware. In the connected world, the battle is no longer fought among products. Instead, competitive advantage comes from building a platform that has an ecosystem around it. However, the journey from product to platform is not always easy or quick, and often a company’s business model evolves over time to reach this stage.
In order to collaborate and partner with many players, some of whom may even be their competitors. And this requires new skills and capabilities to manage and govern a platform.
The 200-20 Rule
According to the familiar 80-20 rule, 20 percent of the customers provide 80 percent of the revenue. However, research shows that if we focus on profitability instead of revenues, the rule would be 200-20, where 20 percent of the customers provide almost 200 percent of the profit!
In other words, a company’s profits would soar if it were to jettison the bottom 80 percent of its customers. Of course, some of these unprofitable customers may be important for other, strategic reasons, but this analysis forces management to articulate the reasons for retaining these unprofitable customers.
Often there is a tendency to get seduced by the latest technology or the new business model of a hot startup. While incumbents should always learn from others, they should stay true to their core DNA and leverage the assets they have.
Digital Transition
Digital transition involves managing existing business and building for the future at the same time. It is like changing the engine of a plane while in flight. The plane is going to go down first before it goes up again–and that is a scary and uncertain time, when everyone in the organization starts questioning the company’s strategy. Even though existing businesses may be under threat and in need of change, they are usually still profitable in the short run, and it is hard to give up all those profits for an uncertain future.
According to an IBM report, we create 2.5 quintillion bytes of data every day.
Data Analytics, Machine Learning, and Artificial Intelligence
According to an IBM report, we create 2.5 quintillion bytes of data every day. Put differently, 90 percent of the data in the world today has been created in the last two years. This data comes from consumer activities such as web browsing, social media posts, and mobile usage–and increasingly from sensors built into machines. Making sense of this vast amount of data has therefore become the key challenge.
Machines will not replace human judgment, but they will be major complementary assets to what we currently do to manage talent. The technology revolution is only going to accelerate in the future, and we better prepare and brace ourselves for it.
To mitigate the effects of digital disruption while also exploring new opportunities, companies have typically followed some combination of these three strategies–creating small, independent units or startups within the larger organization; doing a series of digital experiments; and/or leveraging technology to cut costs and improve efficiency. However, in most cases, these initiatives have led to limited success.
Independent Digital Units
Almost every large company launches independent digital units or has outposts in Silicon Valley, with the hope that a handful of young entrepreneurs will spark innovation for the firm.
Creating an independent unit is like launching a speedboat to turn around a large ship. Often the speedboat takes off but does little to move the ship.
Experiment Approach
Companies tend to run experiments, which makes a lot of sense given the rapidly changing environment and uncertainty about the future. This journey often begins with a few tactical experiments, typically in marketing departments, where employees are quick to try new social media tools or new mobile platforms. As the excitement around digital spreads throughout the organization, new initiatives start emerging all over the company, leading to a proliferation.
Leveraging Technology
A third approach is to leverage technology to reduce costs and improve the efficiency of operations. For instance, banks close branches as consumers move to online and mobile banking. Retail stores reduce their real estate footprint and close marginal stores. Processes are digitized and streamlined to minimize overlap and increase efficiency. Many of the internal tasks are redesigned to allow customers to self-serve, thereby reducing labor costs.
“Companies should always try to improve efficiency and minimize cost. However, if you rely solely on this approach, you are implicitly assuming that technology will not fundamentally change your business. Effectively you are assuming that banks, for instance, will still operate as before and that fintech companies won’t have a major impact on their business. In many cases this may be a flawed assumption.”
Digital Strategy
In order to be successful, you can’t just create a separate digital unit, or run experiments, or use technology to improve efficiency. Instead, you must make digital strategy an integral part of your overall business strategy. That is, rather than treating digital strategy as a separate exercise, you must embed it into the operations and DNA of your organization, in a way that touches all aspects of your business.
Crafting a Strategic View: A Framework for Reinventing Business
The framework consists of four key components:
Reimagining your business
Reevaluating your value chain
Reconnecting with customers
Rebuilding your organization
Reimagine Your Business
Given the dramatic changes that digital has caused, you’ll need to sit back and reflect on the core essence of your business, examining three components: scope, business model, and ecosystem.
“When considering scope, you’ll need to ask yourself this fundamental question: “What business are we in?”
Competition in the digital age usually comes laterally, from new players, and redefining the scope of your business is essential to ensuring future success. This requires a careful balance of broadening the scope of your business while staying within your core competencies.
Reevaluate Your Value Chain
Digital technology can significantly improve the efficiency and effectiveness of various parts of your value chain, especially as new models of R&D and innovation have emerged. Companies such as GE, P&G, and Siemens have leveraged open innovation to redefine their R&D process.
Digital technology has also ushered in a new era of Industry 4.0. Innovations such as digital manufacturing, virtual and augmented reality, 3-D printing, and digital supply chains are improving operational excellence.
Reconnect with Your Customers
“Digital technology has changed the way consumers search for information and buy products, and technology is enabling firms to collect information about the entire consumer decision journey or path to purchase, which will open up new ways for you to acquire customers.
Long before a consumer buys a car, she searches for information on Google, which provides an opportunity for auto manufacturers to understand her preferences and influence her behavior. Sensors in washing machines will soon allow Whirlpool to understand consumers’ usage behavior and even provide valuable consumption data about laundry detergent to P&G. And as consumers increasingly rely on online reviews and friends’ advice, you can monitor social media to understand how those friends and reviewers might be converted into brand advocates.
Rebuild Your Organization
Managing the digital transition in a large organization is a nontrivial task. As you try to strengthen your core business and build for the future at the same time, you’ll face the challenge of running two organizations in parallel. As a result, revenues and profits often decline during the transition period before they go back up, which can shake the resolve of even the most confident CEO.
Amazon competes with Barnes & Noble, Best Buy, and Walmart.
As an online platform
Amazon competes with eBay. In cloud computing, it battles for market share with IBM, Google, and Microsoft.
In streaming services, it has Netflix and Hulu as formidable competitors. Amazon Studios puts the company up against Disney and NBC Universal Studios.
Its entry into mobile phones put it in the crosshairs of Apple, HTC, and Samsung. Its ad network made it Google’s rival.
Competition Is No Longer Defined by Traditional Industry Boundaries
It should be clear from the discussion so far that competition is no longer defined by traditional product or industry boundaries. The rapid development of technology is making data and software integral to almost all businesses, which is blurring industry boundaries faster than ever before.
Amazon surprised Google by becoming the dominant competitor in the search market.
Apple is hiring automobile engineers at a rate that is scaring the auto industry. Netflix and, more recently, streaming services by HBO and CBS are causing concern for Comcast and other cable players.
Platforms
A platform offers scale with low capital investment, but it comes with limited control that may lead to poor customer experience. Companies that rely heavily on their platform spend enormous amounts of time and effort managing customer experience.
As devices become embedded with sensors, their value is less in the hardware itself and more in the interconnectedness of that hardware. In the connected world, the battle is no longer fought among products. Instead, competitive advantage comes from building a platform that has an ecosystem around it. However, the journey from product to platform is not always easy or quick, and often a company’s business model evolves over time to reach this stage.
In order to collaborate and partner with many players, some of whom may even be their competitors. And this requires new skills and capabilities to manage and govern a platform.
The 200-20 Rule
According to the familiar 80-20 rule, 20 percent of the customers provide 80 percent of the revenue. However, research shows that if we focus on profitability instead of revenues, the rule would be 200-20, where 20 percent of the customers provide almost 200 percent of the profit!
In other words, a company’s profits would soar if it were to jettison the bottom 80 percent of its customers. Of course, some of these unprofitable customers may be important for other, strategic reasons, but this analysis forces management to articulate the reasons for retaining these unprofitable customers.
Often there is a tendency to get seduced by the latest technology or the new business model of a hot startup. While incumbents should always learn from others, they should stay true to their core DNA and leverage the assets they have.
Digital Transition
Digital transition involves managing existing business and building for the future at the same time. It is like changing the engine of a plane while in flight. The plane is going to go down first before it goes up again–and that is a scary and uncertain time, when everyone in the organization starts questioning the company’s strategy. Even though existing businesses may be under threat and in need of change, they are usually still profitable in the short run, and it is hard to give up all those profits for an uncertain future.
According to an IBM report, we create 2.5 quintillion bytes of data every day.
Data Analytics, Machine Learning, and Artificial Intelligence
According to an IBM report, we create 2.5 quintillion bytes of data every day. Put differently, 90 percent of the data in the world today has been created in the last two years. This data comes from consumer activities such as web browsing, social media posts, and mobile usage–and increasingly from sensors built into machines. Making sense of this vast amount of data has therefore become the key challenge.
Machines will not replace human judgment, but they will be major complementary assets to what we currently do to manage talent. The technology revolution is only going to accelerate in the future, and we better prepare and brace ourselves for it.
January 13, 2019
Driving Digital Strategy, explains how companies are transitioning into the digital age, by analyzing the success and failures of other companies. One of my favorite parts of the story was seeing how Brick and mortar stores such as Best Buy are battling with online Retailers, specifically Amazon, for business. The Weather Company, which is now owned by IBM had a hard time gathering revenue when TV viewership started to decline. So their new CEO decide to create a platform, WeatherFX, that would allow business to predict sales with weather data. One interesting Discovery was that, at a certain dew point people rushed to buy bug spray, and apparently that is when mosquitoes' eggs hatch. Now that Retailers possess this data, they are able to maximize efficiency. I would recommend this book to anyone who likes technology and Business, it is a very interesting.
June 20, 2021
Aunque el libro Driving Digital Strategy no está mi lista de los 12 libros que leeré este 2021, quiero compartir algunas de sus ideas siendo que el profesor Sunil Gupta expone de manera clara y sencilla muchos principios clave de los negocios digitales.
Empecemos por decir que su autor deja claro una idea que quiero que te lleves y es que los líderes que logran transformar sus empresas no ven la estrategia digital separada de su estrategia general del negocio. Es por esto que esta obra ofrece un panorama amplio de los temas clave de una estrategia digital para el negocio, empezando por el modelo de negocios y pasando luego por aspectos de la cadena de valor, los clientes y la organización.
En la parte I, realiza un interesante análisis de los riesgos de enfocarse demasiado en los productos y servicios en lugar de considerar las necesidades de los clientes. Sí, los riesgos que hace más de cincuenta años advertía Teodoro Levvit en su célebre artículo “la miopía del marketing”, pero en el que aún muchas empresas siguen incurriendo. Con el desarrollo de las tecnologías digitales, muchas compañías se han ido moviendo de los productos a las plataformas y las fronteras tradicionales de los sectores suelen borrarse.
Tal como afirma el propio Gupta:
“En el mundo de hoy, las ventajas competitivas sostenibles provienen de ofrecer un sistema de productos complementarios y crear plataformas con potentes efectos de red que incrementan los costos de cambio de los consumidores”.
“El efecto network directo consiste en que…el valor de un producto (ejemplo: WhatsApp) se incrementa mientras más consumidores lo utilizan, sin ningún cambio en las funcionalidades o características del producto”.
“Debido a que las plataformas típicamente tienen un efecto de red fuerte que lleva a mercados del tipo: ‘ganador se lo lleva todo’ Es tentador escalar el negocio rápidamente en múltiples aplicaciones. Sin embargo, en las etapas iniciales es crítico desarrollar una experiencia del cliente poderosa enfocándose en un mercado pequeño para tener una prueba de concepto”
La parte II del libro, relacionada con la cadena de valor, abarca la innovación e investigación y desarrollo, la excelencia operacional y la estrategia omnicanal.
Cita el autor a ejecutivos de P&G quienes consideran que el mundo se mueve de I+D (investigación y desarrollo) a C+D (conecta y desarrolla). Esto nos lleva al concepto de la innovación abierta, de la cual P&G obtiene más del 35% de sus innovaciones. Los elevados costos de la I+D están llevando a las empresas a recurrir a marketplaces parea obtener sus ideas de las masas.
También describe Gupta la industria 4.0 y las principales tecnologías que afectan la producción de las empresas, entre ellas la impresión 3D, realidad aumentada y realidad virtual, entre otras.
En palabras del autor:
“La automatización estable y robusta, tal como la utilizan las empresas de automóviles, elimina defectos y acelera las operaciones. Pero tiene el costo de una flexibilidad limitada. En comparación, una fábrica digital ofrece todas las ventajas de la automatización en términos de velocidad y eficiencia, pero también permite flexibilidad y seguimiento”.
También en esta parte se establecen los retos que un mundo cada vez más online impone a los negocios tradicionales y cómo manejar ambos espacios simultáneamente mediante una estrategia omnicanal.
“¿Cómo se construye el canal online sin poner en peligro el negocio tradicional y, a menudo, el más rentable? La clave para gestionar esta transición es pensar en los diferentes canales como complementos, no como sustitutos. Cada canal es más adecuado para ciertos productos, para un segmento de clientes o para una determinada parte del proceso de toma de decisiones de un consumidor”.
La parte III está dedicada a los clientes, en este caso a cómo adquirirlos y a motivarlos. Definitivamente es mi parte favorita porque trata del marketing. Conceptos de los que hablo generalmente son analizados por el autor e ilustrados con ejemplos, como los momentos de la verdad y los micro-momentos, la personalización y el retargeting, entre otros.
El autor cuestiona aquellas activaciones basadas en los descuentos: “En una colaboración anterior con otros investigadores, demostré que si bien las promociones de precios tienen un impacto positivo en la participación de la marca a corto plazo, tienen un impacto negativo a largo plazo”.
Con relación a la motivación, me encanta como el autor propone que pasemos del storytelling al story making, refiriéndose a la necesidad de crear experiencias, más que contarlas.
Advierte Gupta…
“En la búsqueda de un mensaje más amplio y emocionalmente motivador, las marcas frecuentemente pierden conexión con sus valores medulares. Aún en el mundo digital cada marca debe representar algo”.
“La publicidad debe lograr dos objetivos: motivar y persuadir. En el entorno de los medios actuales, a menudo nos enfocamos en llamar la atención de los consumidores involucrándolos con contenido entretenido. Sin embargo, el objetivo final de la publicidad es impulsar el negocio”.
Finalmente, la parte IV del libro trata sobre la organización. Específicamente, Cómo gerenciar la transición hacia lo digital, el diseño de una organización orientada a la innovación y el desarrollo y la gerencia de habilidades y capacidades.
El autor deja clara la importancia del liderazgo en el proceso de transformación digital. En específico afirma…
“Crear una hoja de ruta para el futuro no significa que el CEO tenga todas las respuestas o sepa exactamente cómo se desarrollará el futuro. En su lugar, el objetivo es proporcionar una dirección amplia, reconociendo que el viaje nunca será lineal y que la empresa tendrá que evolucionar continuamente y dar forma a su estrategia dentro de las directrices generales de su visión”.
“La transición digital implica administrar negocios existentes y construir para el futuro al mismo tiempo. Es como cambiar el motor de un avión mientras se está en vuelo.”.
Este libro ofrece muchos ejemplos de compañías que han enfrentado el reto de la digitalización y distintas formas de abordarlo. También ofrece estadísticas y estudios que respaldan sus ideas. Es sin duda una guía de referencia para entender conceptos clave relacionados con el diseño de una estrategia digital, que hoy sin duda se refiere a la estrategia del negocio. Por estas razones no dudo en recomendarte esta obra del profesor Sunil Gupta.
Te invito a seguir acompañándome en estas lecturas para el 2021 y a comentarlas en Goodreads.
Empecemos por decir que su autor deja claro una idea que quiero que te lleves y es que los líderes que logran transformar sus empresas no ven la estrategia digital separada de su estrategia general del negocio. Es por esto que esta obra ofrece un panorama amplio de los temas clave de una estrategia digital para el negocio, empezando por el modelo de negocios y pasando luego por aspectos de la cadena de valor, los clientes y la organización.
En la parte I, realiza un interesante análisis de los riesgos de enfocarse demasiado en los productos y servicios en lugar de considerar las necesidades de los clientes. Sí, los riesgos que hace más de cincuenta años advertía Teodoro Levvit en su célebre artículo “la miopía del marketing”, pero en el que aún muchas empresas siguen incurriendo. Con el desarrollo de las tecnologías digitales, muchas compañías se han ido moviendo de los productos a las plataformas y las fronteras tradicionales de los sectores suelen borrarse.
Tal como afirma el propio Gupta:
“En el mundo de hoy, las ventajas competitivas sostenibles provienen de ofrecer un sistema de productos complementarios y crear plataformas con potentes efectos de red que incrementan los costos de cambio de los consumidores”.
“El efecto network directo consiste en que…el valor de un producto (ejemplo: WhatsApp) se incrementa mientras más consumidores lo utilizan, sin ningún cambio en las funcionalidades o características del producto”.
“Debido a que las plataformas típicamente tienen un efecto de red fuerte que lleva a mercados del tipo: ‘ganador se lo lleva todo’ Es tentador escalar el negocio rápidamente en múltiples aplicaciones. Sin embargo, en las etapas iniciales es crítico desarrollar una experiencia del cliente poderosa enfocándose en un mercado pequeño para tener una prueba de concepto”
La parte II del libro, relacionada con la cadena de valor, abarca la innovación e investigación y desarrollo, la excelencia operacional y la estrategia omnicanal.
Cita el autor a ejecutivos de P&G quienes consideran que el mundo se mueve de I+D (investigación y desarrollo) a C+D (conecta y desarrolla). Esto nos lleva al concepto de la innovación abierta, de la cual P&G obtiene más del 35% de sus innovaciones. Los elevados costos de la I+D están llevando a las empresas a recurrir a marketplaces parea obtener sus ideas de las masas.
También describe Gupta la industria 4.0 y las principales tecnologías que afectan la producción de las empresas, entre ellas la impresión 3D, realidad aumentada y realidad virtual, entre otras.
En palabras del autor:
“La automatización estable y robusta, tal como la utilizan las empresas de automóviles, elimina defectos y acelera las operaciones. Pero tiene el costo de una flexibilidad limitada. En comparación, una fábrica digital ofrece todas las ventajas de la automatización en términos de velocidad y eficiencia, pero también permite flexibilidad y seguimiento”.
También en esta parte se establecen los retos que un mundo cada vez más online impone a los negocios tradicionales y cómo manejar ambos espacios simultáneamente mediante una estrategia omnicanal.
“¿Cómo se construye el canal online sin poner en peligro el negocio tradicional y, a menudo, el más rentable? La clave para gestionar esta transición es pensar en los diferentes canales como complementos, no como sustitutos. Cada canal es más adecuado para ciertos productos, para un segmento de clientes o para una determinada parte del proceso de toma de decisiones de un consumidor”.
La parte III está dedicada a los clientes, en este caso a cómo adquirirlos y a motivarlos. Definitivamente es mi parte favorita porque trata del marketing. Conceptos de los que hablo generalmente son analizados por el autor e ilustrados con ejemplos, como los momentos de la verdad y los micro-momentos, la personalización y el retargeting, entre otros.
El autor cuestiona aquellas activaciones basadas en los descuentos: “En una colaboración anterior con otros investigadores, demostré que si bien las promociones de precios tienen un impacto positivo en la participación de la marca a corto plazo, tienen un impacto negativo a largo plazo”.
Con relación a la motivación, me encanta como el autor propone que pasemos del storytelling al story making, refiriéndose a la necesidad de crear experiencias, más que contarlas.
Advierte Gupta…
“En la búsqueda de un mensaje más amplio y emocionalmente motivador, las marcas frecuentemente pierden conexión con sus valores medulares. Aún en el mundo digital cada marca debe representar algo”.
“La publicidad debe lograr dos objetivos: motivar y persuadir. En el entorno de los medios actuales, a menudo nos enfocamos en llamar la atención de los consumidores involucrándolos con contenido entretenido. Sin embargo, el objetivo final de la publicidad es impulsar el negocio”.
Finalmente, la parte IV del libro trata sobre la organización. Específicamente, Cómo gerenciar la transición hacia lo digital, el diseño de una organización orientada a la innovación y el desarrollo y la gerencia de habilidades y capacidades.
El autor deja clara la importancia del liderazgo en el proceso de transformación digital. En específico afirma…
“Crear una hoja de ruta para el futuro no significa que el CEO tenga todas las respuestas o sepa exactamente cómo se desarrollará el futuro. En su lugar, el objetivo es proporcionar una dirección amplia, reconociendo que el viaje nunca será lineal y que la empresa tendrá que evolucionar continuamente y dar forma a su estrategia dentro de las directrices generales de su visión”.
“La transición digital implica administrar negocios existentes y construir para el futuro al mismo tiempo. Es como cambiar el motor de un avión mientras se está en vuelo.”.
Este libro ofrece muchos ejemplos de compañías que han enfrentado el reto de la digitalización y distintas formas de abordarlo. También ofrece estadísticas y estudios que respaldan sus ideas. Es sin duda una guía de referencia para entender conceptos clave relacionados con el diseño de una estrategia digital, que hoy sin duda se refiere a la estrategia del negocio. Por estas razones no dudo en recomendarte esta obra del profesor Sunil Gupta.
Te invito a seguir acompañándome en estas lecturas para el 2021 y a comentarlas en Goodreads.
September 8, 2018
I highly recommend this book to those looking to see how many companies around the world transform in this digital age. The book is full of wonderful insights about the problems these companies encounter and the steps they took in response to the demands to stay relevant today.
I would simply say that this book is a must read by executives.
I would simply say that this book is a must read by executives.
January 25, 2021
Book in a sentence: an ok introduction to the current state of digital transformation in enterprises, filled with lots of real-world big-company examples.
Lesson learned: The razor-blade strategy is a business model in which one item (razor) is sold at a low price in order to allow for another item (blade) to be sold more easily, with a much better gross margin.
Lesson learned: The razor-blade strategy is a business model in which one item (razor) is sold at a low price in order to allow for another item (blade) to be sold more easily, with a much better gross margin.
March 8, 2020
Some interesting points, but mostly a description of what others did without diving too deeply into why they did it and how they came up with this particular strategy. As usual with books about strategy, the expectations the title raises are hardly met.
January 31, 2020
My expectations from non-fictional books are very low. Especially when they come to Digital Marketing, most books have one theory or framework and they keep repeating it to cover the 200 pages of the publication. This was a very different experience. So while I have studied the concepts laid out in this book during my MBA classes, this book actually structured all those thoughts in a very systematic manner and covered lots of topics in the domain of Digital Marketing and Business Transformation Strategies. It provides very relevant examples of successes in the Digital Marketing scenario and deep dives into the reason for their successes. It even learns from the failures of various digital transformation exercises and provides a good context for why they failed. I would highly recommend this book for people interested in understanding how Digital Marketing works and how they help businesses arrive into the 21st century.
February 7, 2019
I found this book a helpful one. This book explains various things with relevant examples.
Convert Razor into Blade,Transition to Product-as-a-Service,A New Business Model should be outcome based,Improved Reliability and Reduced Cost,customer focused innovation etc.,
Why Does Open Innovation Work? 1.Diverse Approaches 2.Extreme Values 3.Better Customer Insight 4.self selection. many more things to mention here. Overall it was a very good book. This would be helpful for everyone. Those who want to be future entrepreneurs, those who wants to be successful managers, CEO's, Businessmen etc.
Proper diagrams,venn diagrams,bar charts,graphs and logic made it a very good book.
Convert Razor into Blade,Transition to Product-as-a-Service,A New Business Model should be outcome based,Improved Reliability and Reduced Cost,customer focused innovation etc.,
Why Does Open Innovation Work? 1.Diverse Approaches 2.Extreme Values 3.Better Customer Insight 4.self selection. many more things to mention here. Overall it was a very good book. This would be helpful for everyone. Those who want to be future entrepreneurs, those who wants to be successful managers, CEO's, Businessmen etc.
Proper diagrams,venn diagrams,bar charts,graphs and logic made it a very good book.
May 22, 2019
Absolutely one of the must-read books for any business students who want to learn from successful examples of digitalization! This book provides comprehensive guidelines, critical pillars and especially, paradigms of corporates which successfully implement digital applications in their R&D, marketing, logistics and even human management. This book is also suitable for young entrepreneurs who desire to envision what types of marketing strategies should be utilized for their newly-established businesses.
In brief, i think this book deserves a 9/10 for its tremendous benefits and eye-opening information.
In brief, i think this book deserves a 9/10 for its tremendous benefits and eye-opening information.
April 30, 2020
give me a view about business in Digital Evolution time.
- I really impress about chapter 1, I have to change my mind about business, about:
+ i shouldn't depend on the core business field. The trend is determine what the customer want and meet it for them.
+ Nowaday, Data and Customer is 2 valuable assets of the company.
+ The customer not only need products, but also need the solutions for their problem.
....
- I really impress about chapter 1, I have to change my mind about business, about:
+ i shouldn't depend on the core business field. The trend is determine what the customer want and meet it for them.
+ Nowaday, Data and Customer is 2 valuable assets of the company.
+ The customer not only need products, but also need the solutions for their problem.
....
November 29, 2020
It's mostly a compilation of case studies and articles about companies that have improved their operations and profitability by integrating digital tools and strategies into their work culture. Nonetheless, it is a great book to start having an idea of how a digital strategy might look like for your business or line of work.
July 15, 2023
For the most part neither insightful nor actionable - feels like a collection of random articles and case studies about lots of buzzwords (industry 4.0, 3D printing, AI, etc) loosely organised under a basic framework.
The only interesting part was on digital marketing, which is the author’s research area. Interesting comments about revenue attribution models, etc.
The only interesting part was on digital marketing, which is the author’s research area. Interesting comments about revenue attribution models, etc.
November 1, 2023
Generally relevant collection of anecdotes on the topic. Adobe, Amazon, GE, Goldman Sachs, Mastercard, the New York Times, John Deer and The Weather Company as primary examples. One of the conclusions that stands out to me the most is about the transformation of business model into platform format with further involvement of providers, consumers and even competitors into the chain.
November 26, 2018
Useful framework for understanding digital transformation
Longstanding principles of the world of business are becoming untenable due to digital disruption. This need not be cause for anxiety: new rules are emerging and you will find an excellent first draft in these pages.
Longstanding principles of the world of business are becoming untenable due to digital disruption. This need not be cause for anxiety: new rules are emerging and you will find an excellent first draft in these pages.
December 28, 2018
Great Overview About Digital Transformation Foundations, one of my favorite reads of the year.
Last part of the book could discuss more of Human Capital during the journeys of Digital Transformation.
Last part of the book could discuss more of Human Capital during the journeys of Digital Transformation.
September 22, 2019
I think this book is quite good. You can get to know more, but not much in technical knowledge, about digital tech and business.
What I really like personally is the author wrote and supported his ideas with several articles.
What I really like personally is the author wrote and supported his ideas with several articles.
December 12, 2021
Assortment of HBR articles with a misleading title. It has more sales/ marketing insights than digital strategy
+ Razor blade, ZMOT and other marketing/ Sales phenomenon
+ Easy to read
- I'm too tired of such short case study compilation books. Hurried up for publication without an agenda
+ Razor blade, ZMOT and other marketing/ Sales phenomenon
+ Easy to read
- I'm too tired of such short case study compilation books. Hurried up for publication without an agenda
September 22, 2023
I enjoyed the way the author organized the concepts in this book and framed the topics relating to digital transformation, but I do not think this book adds a tremendous amount of value to young professionals who have seen the way the world is transforming around us.
February 28, 2025
A brilliant book on the context of how digital technology is changing the business world and how managers / leader should go about dealing with this transformation. Worth a read. Audible experience was good too.
October 3, 2018
This book was a Best of the Best for the month of October 2018, as selected by Stevo's Book Reviews on the Internet. http://forums.delphiforums.com/stevo1...
October 16, 2018
I won this in a Goodreads giveaway.
Full of useful information. Recommend this to any business owner looking for digital strategies.
Full of useful information. Recommend this to any business owner looking for digital strategies.
January 30, 2019
Clear, logical reasoning of importance of companies driving their digital strategy in a time when AI, data, and analytics are changing the business dynamic. Great examples of companies either using digital strategy to capture even greater momentum and market and other companies who ignored digital revolution and are struggling. Your business NEEDS a well defined strategy. Cannot ignore and be profitable in this day and age.
April 30, 2019
Nothing revolutionary but lots of interesting examples
June 8, 2019
Very interesting and insightful. Worth reading.
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