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:

1. Stay close to users by investing in customer insight. Customer behavior is rapidly changing, demanding strong market intelligence and customer insight functions.
2. 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.
3. Make business models more robust to reflect consumer diversity. Focus and breadth are both needed.
4. 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.
5. 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.

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Image: Moto 360 Watch with Android – Credit Motorola