We’ve been told that 2014 will be the year of wearable technology or the year of the Internet of Things (IoT). Regardless of whose Kool-Aid you’re drinking, there is no denying that digital is the oxygen of our day. McKinsey & Company’s recent report on digital disruption is important, therefore, to develop a winning digital strategy that will appropriately harness the latest online and mobile technology. McKinsey notes that we must first understand six digital shifts:
1. Device Shift
2. Communications Shift
3. Content Shift
4. Social Shift
5. Video Shift
6. Retail Shift
Understanding these shifts sets the backdrop for effective digital planning. For example, a failure to understand the role of mobile and tablets in personal computing will leave your plan shallow and deficient. So how do we formulate a winning plan? McKinsey offers 5 considerations:
- Stay close to users by investing in customer insight. Customer behavior is rapidly changing, demanding strong market intelligence and customer insight functions.
- Build a competitive edge with deep analytic skills. As segments get smaller and more distinct, the need to use data to optimize product development and marketing will only grow.
- Make business models more robust to reflect consumer diversity. Focus and breadth are both needed.
- Ensure investments are clearly aligned with consumer shifts. Executives need to clearly communicate the “what” and the “why” of strategy and operations and tie this to current opportunities.
- Reward superb execution skills. A potential downside of big data and analytics is that the analysis goes on too long and the market opportunity evaporates or is seized by a competitor.
Read the full article here.
Image: Moto 360 Watch with Android – Credit Motorola
