You’ll find online a lot of articles about why digital strategies fail. If there is a major criticism to be levelled at the discipline of digital strategy, it’s that it often seems not to work.
The reasons for this are many and varied. The concept of ‘digital strategy’ is a broad one, and failure rates vary across the many sectors which camp under the ‘digital’ umbrella. For example, if you believe reports, up to 70% of IT strategies fail.
So, it’s valid to ask the question, ‘Why?’. If 70% of IT strategies fail, that’s a massive business cost, as these are not strategies that are typically failing fast, or failing cheap.
But rather than examine, yet again, the causes of failure, I’d like to talk about the symptoms of success. What do you need to do to ensure your digital strategy will be one of the success stories?
Sadly, there’s no one-size-fits-all answer. Every good strategy should be unique to the problems, challenges and culture of the business it’s designed to help.
There are, however, key principles you can follow that will make your chances of success that much greater. In our next two posts, we will highlight a number of these, helping to ensure your next digital strategy doesn’t become another failed statistic.
1. Drive it from the top
The #1 reason most digital strategies fail is a lack of advocacy from senior leaders within a business. The cause of this failure can be anything from not understanding the value of digital, to not understanding digital full stop, to a fear of doing things differently. Digital evangelists, both internal and external, can push all they like; but if the leaders don’t lead, in all likelihood, the strategy is going nowhere. This goes back to making it part of the business strategy – if the exec team has it in their plan, it’s far more likely to be given priority.
2. Make the ‘digital strategy’ part of the business strategy
I’ve written about this previously, but your digital strategy should not only be tied to the goals of the business, it should be fundamentally integrated into the business strategy. In fact, your business strategy should be digital-first.
We live in a digital world, and if the business strategy doesn’t reflect this reality, then the impact of a standalone digital strategy will be limited at best, particularly in larger businesses. An analysis of companies with highly effective digital strategies showed that 90 percent of top performers have fully integrated digital initiatives into their strategic-planning process.
3. No more silos
The flipside of the previous point – digital doesn’t exist in a vacuum in the real world, so why would it exist in a vacuum within a business? A silo-ed approach to digital leads to multiple BUs with multiple competing digital strategies, usually not aligned with the broader organisational strategy. This plays havoc with resource, capability, efficiency, consistency and the customer experience.
How can IT invest strategically in the right capability if each BU is competing for resource with the other? How can marketing effectively measure its digital activity if it doesn’t understand how it’s affecting business goals? How can the contact centre avoid channel clash if it doesn’t talk to marketing?
Delivering good digital requires – buzzword alert! – ‘cross-functional collaboration’. Going back to our first point (see how these are all connected?), leadership is crucial to bringing groups together and breaking down long-established walls or conventions. Establish a Digital Steering Group to provide strategic guidance or a Centre of Excellence to provide leadership and best practice governance on digital initiatives. Establish visibility on digital across the business and make the right conversations happen.
4. Know thy customer
You hear a lot of talk about customer experience and with good reason – 86% of customers will pay more for a good experience. The bad news is your customer doesn’t just compare the experience you offer with your competitors, they compare it to every other business they transact with. Performing poorly in that comparison can hurt your brand, your revenue and your customer loyalty.
‘Human-centred design’, ‘customer first’, ‘customer centric’ – however you want to call it, the customer should be the focal point of your strategy. Investing in research to understand exactly what customers need, at key points in time, is one of the best investments a business can make. It’s not about your business becoming a mind-reader – it’s about understanding ‘moments of intent’, and knowing where points along the journey you should concentrate your efforts to add real value.
We’re only scratching the surface here, but there’s more to come. Stay tuned for Pt.2 soon…