1. Services & Consulting for
Digital Leadership
Digital Strategy –
what is it and why is it needed?"
Munich, 7th of October 2014 authored by Alexander Schmid!
!© Copyright 2014 Digital Leadership GmbH!
Digital Leadership © Copyright 2012 - 2014 Digital Leadership GmbH! Slide 1!

2. Business strategy - how does digital strategy fit in?"
Michael Porter"
! Define a unique and valuable market position!
! Making tradeoffs between what to do and what not to do#
! Creating "fit" by aligning company activities to with one another
to support the chosen strategy#
Dr. Vladimir Kvint"
! A system of finding, formulating, and developing a doctrine that
will ensure long-term success if followed faithfully#
Richard Rummelt"
! A strategy is a set of different ideas that include a plan to achieve
this goals#
! A good strategy maximizes your competitive advantage by limiting
your rivals opportunities and maximizing your resources#
Corporate
Strategy"
Business Strategy"
Functional Strategy"
Theoretically a separate digital strategy should not be necessary
as the business strategy should include everything – including digital. !
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 2!

3. But reality looks differently…"
Music industry# Record retailers# Book stores#
DVD rentals# Print industry# Banks#
Publishers#
Retailers#
Photo industry#
These industries
were already
heavily disrupted
by digitalization.
Many others will
follow.#
The threads and opportunities of digitalization are generally
recognized too late and actions are not taken resolute enough.!
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 3!

4. Why does this happen repeatedly (1/2)?*"
Computer chip memory doubles every 12-18 months at no rise in cost to the consumer.!
Says networks become more valuable as more people join them.!
Law of Disruption: !
Technology changes exponentially, but social, economic and legal systems
change incrementally and struggle to keep up.!
IT!
Moore’s Law: !
Metcalfe’s Law: !
*Source: “The laws of disruption” by Larry Downes!
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 4!

5. Why does this happen repeatedly (2/2)?"
Corporate
Strategy"
2"
Business Strategy"
Functional Strategy"
"
"
"
Product! Marketing! Sales! HR! ...! IT!
Offline#
IT# Online#
Online#
Offline#
3"
Offline#
Offline#
IT# IT#
Online#
Offline#
IT# Online#
Online# IT#
1"
Today the “online strategy” is typically
viewed as part of the functional strategy.
Online strategy deals with optimal use of
web/mobile channels. This leads to!
1. a none integrated strategy across
functional silos and in consequence
also inhomogeneous user experience!
2. no or too little and too slow changes
to the business model!
3. a loss of impact due to friction
between business, online and IT being
too much separated!
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 5!

6. !
To fix this a digital strategy
is essential"
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 6!

7. Definition of a digital strategy"
A digital strategy defines how a company
uses digital technology to maximize its business results.
It includes (1) a clearly expressed direction and (2) a
verified plan how to achieve this goal."
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 7!

8. A digital strategy has to address the following"
1. Redefine / adapt the business model to match new / emerging market realities"
2. Integrate the internal capabilities to maximize usage of resources"
3. Unify and optimize the external interfaces to customers and partners for a seamless
and optimal experience"
4. Bridge the gap between Business, User Experience and Technology"
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 8!

9. 1. Redefine the business model to match the new market realities"
Corporate
Strategy"
Business Strategy"
Digital Strategy"
Functional Strategy"
! It is not sufficient to stay on functional
strategy level, as the business model won’t
be adapted to emerging market realities.#
! It is not sufficient on the business strategy
level because digital strategy needs to be
close to execution to achieve the required
speed.#
! To constantly adapt the business model the
digital strategy is mediating between the
functional strategy and the business
strategy.#
! It can’t be parallel to the other strategies as
is has to become integral to all thinking,
doing and needs the “teeth” from being part
of the business.#
#
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 9!

10. 2. Integrate the internal capabilities to maximize usage of resources"
! Get a unified singular view on data
(customer, status, financials, etc.)#
! Enable advanced data analysis and build
capabilities to act on these (new services,
products, quality of services, …)#
! Improve user experience through different
silos by thinking and working along
customer journeys#
! Reduce costs through improved processes#
Product / Services"
Marketing"
Sales"
HR" Finance"
Procurement" Shared Services"
Service"
Product / Services"
Marketing"
Sales"
HR" Finance"
Procurement" Shared Services"
Service"
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 10!

11. 3. Unify and optimized the external interfaces to customers and
partners for a seamless and optimal experience"
! Based on the unified data view build a
consistent external interface and customer
experience throughout channels and across
all use cases#
! Improve the User Experience with new
services and tools enabled by integrating
data sources, digital technologies and cross-silo
use cases#
! Through a unified (digital) communication
strategy leverage new media faster and
more effectively (e.g. social) #
Marketing"
Product / Services"
HR"
Procurement"
Sales"
Shared Services"
Marketing"
Product / Services"
HR"
Procurement"
Sales"
Shared Services"
Customers#
Partners#
Suppliers#
Customers#
Partners#
Suppliers#
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 11!

12. 4. Bridge the gap between business, user experience and technology"
! Integrate the business, the user and the
technology view deeper to recognize trends
earlier, act faster and identify opportunities
thinking from the combined views#
! Transform each unit and the general
organization to be ready to handle the
expectations for digitalized companies#
! Bridge the gap between strategy and
execution #
Business /
Functional -
Strategy"
User
Experience"
Technology /
IT"
Digital
Strategy"
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 12!

13. Digital strategy is a necessary step in the evolvement of digital
capabilities and maturity"
Corporate
Strategy"
Business Strategy"
Functional Strategy"
"
"
"
Level 1: Unable"
! No online channels or only
online offerings for single
functional parts (public web
site, shop,…)#
#
Corporate
Strategy"
Business Strategy"
Functional Strategy"
"
"
"
Product! Marketing! Sales! HR! ...! IT!
O
ffli
IT# ne# O
O
nli
ne#
O
ffli
O
ffli
O
ffli
O IT# ne#
nli
ne#
O
ffli
IT# ne# O
IT# ne# O
nli
ne#
nli
ne#
nli
ne#
IT# ne#
Level 2: Present"
! Separate online strategies
for different but many
functional parts of the
company#
! Business model is not
adapted to digital
opportunities and threads#
Corporate
Strategy"
Business Strategy"
Digital Strategy"
Functional Strategy"
Level 3: Managed"
! A digital strategy integrates
business, online and IT
strategies#
! Business model integrates
digital opportunities and
threads#
Corporate
Strategy"
Business Strategy"
Functional Strategy"
"
"
"
Level 4: Integrated"
! Digital is an integral part of
the business model#
! Business model is constantly
adapting and incorporating
opportunities coming from
digital#
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 13!

14. Best practices to create a digital strategy and start transformation"
1. Establish a clear owner responsible for the success of the digital strategy"
! Many companies call this role a Chief Digital Officer (CDO)#
! The CDO should report to the CEO and has his backing#
! The CDO needs to have real business goals and enough budget to
develop a digital strategy #
! The CDO needs to act, manage and negotiate across all silos#
! The CDO needs to own the transformation process#
#
2. Develop the digital strategy in a systematic process"
! Use a well structured cross disciplines process to develop the
digital strategy#
! The digital strategy should be business driven and user centric#
! It incorporates all business needs from the different parts of
your company and should be developed jointly with the
respective business owners#
3. Implement sustaining change"
! Implementing a digital strategy should not be a one of project but the
start of a sustaining change in your company. Therefore:#
! Change the organizational structure as needed (in the long term org
structure defines solutions and therefore customer experience)#
! Kick off a cultural shift. Digital Business is very much about
mindset and culture.#
! Understand that it is the beginning as the world has changed
and won’t return to the old status ever!#
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 14!

15. !
About Digital Leadership"
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 15!

16. Services & Consulting for
Digital Leadership
The leader in digital strategy!
! End-2-End Digital Strategy Consulting #
! Business result driven & User Centric #
! Multidisciplinary by design#
People Services
Digital Leadership
HR is a business function!
! We are the only firm that puts HR where it
needs to be: right at the core of the business#
! Supporting firms with freelancers, temps,
interims-management and permanent
employees#
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 16!

17. About Digital Leadership Services and consulting!
! We have been founded to support clients at the very beginning because
17#
Strategy# Concepts#
User Experience# Requirements #
Digital Leadership Strategy Framework#
Our offering!
! Multichannel E-Commerce, Internet, Intranet and
E-Business Applications#
! Strategy development & business model design #
! Product definition & management#
! User experience, brand & digital communication#
What makes us unique!
! We are the only company that offers a holistic approach to
digital strategy: the Digital Leadership Strategy Framework!
! We support you end to end from strategy to go-Live and
including all relevant disciplines#
! With a single point of focus, we can provide an expert team
bridging all disciplines with a wealth of expertise in their
respective fields#
Our mission!
! Focus on digital strategy projects – particularly on relaunches in the
Financial Services industry#
results fade with erring objectives and incorrect scoping#
! Our focus is on strategy definition, UX, requirements collection and
correct scoping #
Digital Leadership © Copyright 2012 - 2014 Digital Leadership GmbH! Slide 17!

18. We make you successful by leveraging our unique
Digital Leadership Strategy Framework™"
!
Business#
User Experience# !
Services & Consulting for
Digital Leadership
The Digital Leadership Strategy Landscape Description: Summary of key artefacts, jointly summarizing
the cornerstone of a digital strategy that are to be created
during a relaunch and to be maintained by governance.
Project: The Digital Strategy Framework
Subject: The Digital Strategy Landscape
Version: 3.2 (Jan 2014)
Author & Copyright: Digital Leadership GmbH
CONTEXT DRIVERS
Customer Needs Business objectives Operational Context Business Context Project definition Financials
Segmentation
User Needs
The Digital Leadership Strategy Landscape Services & Consulting for
Use Cases &
User Journey
Business Strategy
Stakeholder
objectives
Quantified
Benefits
PRODUCT
Business Model
Business
Objectives
Project: The Digital Strategy Framework
Subject: The Digital Strategy Landscape
Governance Model
Organisational
Capabilities
Existing
Operational Model
Sourcing Strategy
Description: Summary of key artefacts, jointly summarizing
the cornerstone of a digital strategy that are to be created
during a relaunch and to be maintained by governance.
Version: 3.2 (Jan 2014)
Author & Copyright: Digital Leadership GmbH
CONTEXT DRIVERS
Scope Content Information Architecture Perception Technology Channels & Ecosystem Digital Marketing
Modules &
Templates
Multi-Device
Concept
Navigation
Concept
Personalization
Concept
Internationaliza-tion
Concept
Structure Migra-tion
Approach
Content Strategy
Content Model
Content Migration
Approach
Scope Landscape
Functional Scope
Non Functional
Scope
Requirements
Backlog
GOVERNANCE OPERATIONS
Partner Map
Current
IT Landscape
Field of
Competition
Market trends
Current Product
Performance
Vision
Project Motivation
Statement
Measureable
Business Results
Pricing Model
Business Case
Defined Funding
Defined
Maintenance Costs
Defined Develop-ment
Costs
Defined
Operating Costs
Expected Sales
Community
Approach
Service Design
Supporting
Products
Channel Strategy
Target devices
Positioning
Integrated
MarComs Strategy
Target Architecture
Target
Technologies
Target Platform
Integration
Architecture
User Experience
Interaction Design
Media
Presentation
Brand
Design
Styleguide
Governance Product Development Measurement & Optimization Platform Operations
Governance
structure
Change plan
Communication &
trainings plan
Organisational
structure
Roadmap Project plan
QA approach Internal capability
building
Software Develop-ment
Approach
Risk Management
KPI Framework Performance
Measurement
Continous improv.
Approach
Multivariant
Testing
Promotional
Contents
Promotional Media
Analytics Operations SLAs IT Operating
Model
Business Processes
& Workflows
Digital Leadership
PRODUCT
GOVERNANCE OPERATIONS
Brand#
Technology#
! Our focus is a multidisciplinary approach to
strategy definition, UX, requirements definition,
correct scoping and prioritization!
! Our own unique Digital Leadership Strategy
Framework minimizes delivery risk "
! The framework has matured over years
in outstanding projects and inputs from
various industry leaders !
! The framework offers unique breadth
covering all relevant factors from business
aspects, customer experience, brand and
marketing to technology, project management,
operations and governance!
! The framework offers 100 out of the box
deliverables and templates, processes and best
practices to increase efficiency and quality
!
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 18!

19. We’ll take you to the top."
Stefan F. Dieffenbacher!
Executive MBA, PMP, CPM, Scrum Master!
Managing Director!
Digital Leadership GmbH!
Landsberger Straße 217!
D-80687 München!
mobile:!
office:!
e-mail:!
Internet:!
+49 (0)176 / 638 020 11!
+49 (0)89 / 748 600 32!
sd@digital-leadership.net!
www.digital-leadership.net!
!
Alexander Schmid!
Dipl.-Inform. (FH)!
Partner!
Digital Leadership GmbH!
Landsberger Straße 217!
D-80687 München!
mobile:!
office:!
e-mail:!
Internet:!
+49 152 / 215 65 847 !
+49 (0)89 / 748 600 32!
as@digital-leadership.net!
www.digital-leadership.net!
!
We’d like to get to know you
and answer your questions. !
For more information on our framework and to discuss
your challenges, please get in touch with us for a free
initial consultation! We deliver business value!!
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 19!

20. Thank You ! !
Digital Leadership © Copyright 2014 Digital Leadership GmbH! Slide 20!