The definition and implementation of a digital business strategy
Santi, 2301907845
The definition and implementation of a digital business strategy
With the internet, social media becomes a lot of choices for sellers as platform online to market their products through theinternet. This opens up new business opportunities for entrepreneurs,by utilizing technology,the internet, and information that creates a new business model, namely digital business. Digital business is a business activity that uses electronic media as a tool that functions in productproduction and marketing activities. Digital business has a business model that is very close to electronic business, electronic commerce, and digital marketing. Digital business is also referred to as the combination and interconnection between digital stakeholders and businesses. Digitalization has essentially transformed the retail ecosystem of conventional stores and companies, from direct product sales to marketing through various social media, such as WhatsApp, Instagram, Facebook and Facebook. Others. There is also the emergence of various companies that trade e-business, namely Tokopedia, Shoppe, Gojek,and others. Digital technology today has a lot of positive influence on the economy through increased productivity, the creation of product innovation and extensive opportunities in creating new business units. Business provides the basis for an organization to create, deliver, and create value, and compete, experience growth and profitability.
Implementing digital business strategy
A digital business strategy is an organizational strategy that is formulated and executed by utilizing digital resources to create differential value. There are several things that need to be considered in planning a digital business strategy, namely:
- It meets the traditional view, thinking of IT strategy as a function within a company and recognizing the breadth of digital resources in other functional areas such as operations, purchasing, supply chain, and marketing.
- Melampaui systems and technologies, which may have narrowed the traditional view of IT strategies to recognize digital resources, thus being in line with the resource-based strategy view.
- Secara explicitly attributes digital business strategies to creating different business values, thereby increasing the performance implications of IT strategies beyond efficiency and productivity metrics into those that drive competitive advantage and strategic differentiation.
There are many strategies that can be applied to build and start a digital business including four things that can be used as a basis, namely 1) the scope of digital business strategy, (2) the scale of digital business strategy, (3) the speed of digital business strategy, and (4) the source of creation and capture of business value in digital business strategy.
To establish the scope of digital business strategy, it is necessary to know the scope of the company, by defining the product and business portfolio and activities carried out in direct control and ownership ofthe company. The company’s scope patterns and diversification logic have been shown to affect a company’s performance in implementing digital business strategies. Companiesoptimally use core competencies and key assets and resources to expand their product range and target market.
The scale of a digital business strategy serves to determine the lower unit cost of a product and help increase profitability. As infrastructure becomes increasingly digital, companies need to think about scale in both physical and digital terms. To identify at least four things that distinguish the scale of digital and qualitatively different business strategies.
Time plays an important role in strategy. In digital business that becomes an influence on the speed of business strategy strategy includes kecepatan peluncuran produk, speed pengambilan keputusan, speed orkestrasi r antai suplai, as well as the speed of pembentukan and adaptasi jaringan.
The source of creation and capture of value in digital business strategies is derived from the effective use in utilizing the value of information and multisisi business models, the capture of coordinated business models in networking, as well as the application of value through the control of the company’s digital architecture.
Reference
Aryan Prastya Nugraha Eka & Indri Murniawaty. (2018). Sharia Digital Business: Sustainable Business Strategy and Development. Journal of Islamic Economics Volume 6, Number 2, 241 – 252. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiJ-Mi59uHvAhUEXn0KHa9iANcQFjADegQIBRAD&url=http%3A%2F%2Fjournal.iainkudus.ac.id%2Findex.php%2Fequilibrium%2Farticle%2Fdownload%2F3623%2Fpdf&usg=AOvVaw1H3lxXY2X_rUe_KL4LaQLr. (accessed April 3, 2021)
Bharadwaj, A., Sawy, O. A. El, & Pavlou, P. A.(2013). Digital Business Strategy: Toward a Next Generation of Insights, MIS Quarterly Vol. 37 No. 2, pp. 471-482. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiFj_2njeLvAhVHU30KHZiTAksQFjAAegQIAxAD&url=https%3A%2F%2Fmisq.org%2Fmisq%2Fdownloads%2Fdownload%2Feditorial%2F581%2F&usg=AOvVaw1KdVZxGEFk8BaNIb3WVkXP. (accessed April 3, 2021)