Lameen Witter | Do You Know Why Digital Strategies Fail

Do You Know Why
Digital Strategies Fail?

Nowadays, many companies plan and execute digital
strategies to compete in a competitive environment, but
fail. And the reason is ignorance of digital evolution and its
potential impact on the company revenues or indeed
survival. In recent years, digital strategies took a major
change and if you are not willing to adapt to those changes,
you may lose the game. According to expert Lameen Witter,
before you frame digital strategies, it is very important to
understand why most digital strategies fail.

Vague Definition
Digital strategy is misinterpreted by most companies. Some associate it with a
few digital projects or marketing. Digital is actually a free ability to connect
multiple devices, people and services universally. Soon with IOT, it would bring
more surprises and innovation. However, due to the misinterpreting the
definition of digital, it will be difficult for a company to link the strategy to
their core business.

Misinterpret The Economic Of Digital
Digital is abolishing 'economic rent' which is
revenue in excess of the cost of capital.
Unbundling profitable services are allowing
customers to buy only the things they are
willing to buy. They have unlimited choice
and information. Hyper-scale is minimal
expenses to almost zero. For instance, to
include a store it costs Wal-Mart millions.
While Jack Ma of Alibaba can do likewise
with one server. Therefore the main
organizations can rule the market and take a
lot of the benefits.

Assumption That threats will come
only from new players
If you think that the real
threat comes from the new
entrants and, you might be
wrong. Often the real
challenge comes when a
smart dominant industry
player is aiming to selfcannibalize
and disrupt the
current situation. According
to experts, incumbents
moving forward with
confidence can achieve
significant share and push an
industry to the peak.

Overlooking Ecosystem Platforms
Traditional strategies that ignore the ecosystem platform are likely to face many challenges. Ecosystem
platform allows digital players to compete and lead in the industry and sector borders. Amazon has
reached to new heights from selling books to selling almost everything. Similarly, the tech giants like
Alibaba has created platform ecosystems that are allowing them to grow into financial sectors and many
other sectors. No doubt, these platform plays can evolve the dynamic of the whole business sector in a
short period of time.

Lost The Duality Of Digital
According to many leading organizations, the digital revolution is all about
searching for something new. While searching for or working on a new business
model, they overlook the need to digitize their current business. Disruption is
irregular, and ignoring the existing business is not something most will choose.
The pressure of digital means that businesses will need to adapt and repeat to
achieve success.

Final Words
According to Lameen Witter, these are the reasons why
most digital strategies fail. Therefore, it is advisable to
consider these pitfalls before framing your digital
strategies. After all, who doesn’t want a win-win
situation in the competitive world?