Monday, March 19, 2007

Crafting Your 5x5 Strategy in the Digital Media Ecosystem

Digital technology is empowering businesses to the point of increasingly seamless interplay among previously distinct content, service and device markets. Thus, companies operating in the Media, Telecommunications and Publishing (MTP) sectors must embrace digital technologies by having an effective business strategy which both achieves cost reductions through new efficiencies and revenue growth with new service offerings.

When it comes to understanding digital technology many consumers struggle.  It is difficult to grasp the idea that we live more and more in digital ecosystem – a wired society.  Digital ecosystems transcend the traditional strictly defined collaborative environments we have been used to.  No longer are we working from an entirely centralized system.  Instead, digital environments are designed to be more open, flexible, and demand-driven or personalized, as well as interactive.

Companies also face challenges with the digital ecosystem that inhibit their strategic planning.  For example, what do Budweiser, Ford and Microsoft all have in common?  For starters – they are all media companies that require a media strategy as part of their business strategy. 

How are they ALL media companies?

The answer is that technology empowers and helps companies communicate with consumers, bringing them closer together.  However, while some companies (large and small) understand this concept and execute it, others are left outside the ecosystem and fail to achieve the success they are capable of reaching.

Five Reasons to Have a Digital Strategy

The key to crafting a successful digital strategy for your business is to first recognize the five reasons your company should have a digital strategy in the first place.  Though the five reasons may be slightly different from company to company, you need to consider a digital strategy when:

1. Growth is constrained with a single platform play in today’s market.
2. Customers demand more seamless service.
3. Competition is present.
4. Brand equity, leverage your franchise, and grow your market share.
5. Diversify and grow your revenue streams.

In our modern and evolving digital age, single platforms and often centralized platforms constrain growth.  Digital solutions, such as the advances made in digital and mobile technology (who has not seen Apple’s new I-Phone and not been impressed?), allow users to pull content and information, as well as services from a wide variety of sources.  Consumers today are demanding more and more personalized service – content that is tailored around a specific set of criteria based on a person’s interests or needs.  The digital divide only widens when competition is present and you are not employing a digital strategy.  Over time, your company will lose brand identity and market share, while revenues will begin to decline.

Why?

Communication is critical to success.  Since consumers can change their own destinies, every successful business stays in tune with the changing needs within the marketplace by maximizing their digital strategy.  Those companies operating without a digital strategy cannot diversify or stay fluid or flexible enough to remain competitive.

Five Elements of Your Digital Strategy

Developing a successful digital strategy means you need to map this into your overall corporate strategy.  In order to accomplish this you need to have a plan that accurately assesses your company’s resources – not just in terms of financial and technological, but also in terms of human capital.  This is a critical moment, because facts are crucial – and an overly optimistic or harsh assessment could lead you to decisions that adversely impact your organization for years to come.

Five Elements of Your Digital Strategy