Strategy& How Digital Leaders Outperform Their Peers

One of the big global technology stories this year is the expanding divide between the digital haves and have-nots. 

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As the World Economic Forum’s new Global Information Technology Report 2015 highlights, the full benefits of technology are only available in countries that have embraced digital technology for the vast majority of their citizens. There’s a similar digital dichotomy playing out in the corporate world too. 

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The companies that are viewed as digital leaders are outperforming their peers in terms of growth, profits, and market valuation. It’s increasingly clear that digital has become core to driving growth and transformation. You no longer have a choice. To lead in your industry you must be a leader in digital. And if you don’t lead, you lose.

If everyone can appreciate the transformational power of digital, why do some companies get it right while others get it so terribly wrong? Why do so many companies cling to an outmoded technology or fumble with outdated processes and products, while others capitalize on the opportunities of the digital era? It’s usually not because of one major event or one big decision. Eighty percent of corporate value destruction comes from bad strategy decisions. The trick is to improve your hit rate so that time after time you make the right strategic choices to drive both technology-enabled growth and business model transformation. We studied some of the world’s most successful companies and uncovered five critical ways to get it right.

1. In digital, as in everything, stay true to who you are.

2. Build capabilities, not IT functionality. 

3. Cut costs and invest in reimagination. 

4. Put your culture to work to drive your differentiation. 

5. Shape the future by putting your customer at the center. 

Combine these five principles with a bold digital vision, a bias for action, and a strong point of view on where technology is heading — and you will be ready to capture the lead in your industry. And, along with growth, the best proof will be when your customers share, tweet, and post about your digital success.

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