Finding Value

Digital strategy is not about building colourful websites or posting cute images on Facebook.

Digital strategy is about taking opportunities to better connect to markets and to build higher value:

  • The internet offers the opportunity to better understand the needs and wants of your customers:
    Procter & Gamble uses online communities to “presell” product ideas and to get feedback from the public – without spending millions on development, production and stock.
  • The web is a direct channel to markets – that let’s you circumvent traditional gatekeepers: New brands like Tesla use a direct-to-consumer approach on the Internet to save retailers’ margins.
  • The new digital technologies make it possible to provide new forms of value: Nest offers “intelligent” thermostats that receive data from the Internet – they know at what time electricity is cheap or when the weather will change – this way they reduce energy bills.
  • The internet makes it possible to build sustainable competitive advantages: It would be very hard today to attack a company like Facebook that once was created in a college dorm room. Better customer value, cost reductions, network effects and customer lock-in can create massive barriers to entry for competitors.

How can digital innovations be used to improve your value chain? To connect to customers – directly? To create higher-value offerings?

market & technology management consulting