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A digital strategy is your plan for introducing and using digital technology to meet your business goals. A clear digital strategy can help you make sure that your digital presence is current, future-proof and achieves your intended goals. A digital strategy can help you:
Your digital strategy will cover:
Planning your digital strategyWhen planning your digital strategy, it's important to:
Your digital strategy should remain a part of your business plan and align with your overall business strategy and objectives. Steps to develop your digital strategy
Your technological skillsetConsider your technology ability before implementing a self-run digital strategy. If you feel your skillset is not advanced enough for the technology you will be implementing, you can choose to outsource the tasks or hire someone to join your team. Access low-cost advice from Australian Small Business Advisory Services (ASBAS) Digital Solutions to grow your digital capability. View one of our free business webinars. Key components of a digital strategyA digital strategy has 9 key components. You may not need all components for your business type or industry, or to implement them all immediately. Each part focuses on a different digital area. Review the components below to assess your current digital footprint and implement a digital strategy tailored to your current and future needs. Review your completed strategy regularly, as your business needs will change over time. Expand all Your online presence refers to how and where the community and other businesses see your business online. Your online presence includes:
When developing your strategy, consider:
2. Digital marketing and advertising Digital marketing and advertising is the promotion of your business using various online marketing channels and tools. Digital marketing drives your customers to the digital platforms where you conduct business. You need to identify what platforms your customers are using and how they are influenced to buy products and services to plan effective marketing and advertising. Common channels and tools include:
Read more about digital marketing and advertising. When developing your strategy, consider:
Selling online allows your customers to purchase your products and services anytime and anywhere from any device connected to the internet. It is essential to consider how your business could sell its products and services online. When developing your strategy, consider:
Read more about selling your products and services. 4. Digital communications Digital communication is about giving customers ways to engage with your business through the channels they prefer. You should aim to make it as simple as possible for customers to find your information, services or products. Create a digital communication strategy to ensure your customer service standards are consistent across all the digital channels you use. You could interact with your customers through:
Read more about digital communications. Cyber security protects your business, staff and virtual assets from unwanted online behaviour and attacks. Your virtual assets are the data and information stored on computers and file servers that can be accessed through the internet. Make sure your staff are informed about cyber security risks when working online. Develop procedures and training for your staff to help protect your business from cyber attacks. You can protect your online assets by:
Read more about cyber security. Being active in a digital economy enables your business to develop supplier relationships in the global market. Your business can profit from sourcing suppliers online and this will be more straightforward if your business has strong digital capabilities. When developing your strategy, consider how you will:
Read more about buying your stock online. 7. Digital solutions for efficiency There are various solutions that you can use to make sure that the digital components of your business will be more effective. Research the different digital tools that you could use, for example:
Assess all the tasks you complete within your business and consider if they could be done more efficiently using digital technology. You should regularly identify emerging and new digital options. The Australian Small Business Advisory Services can provide tailored advice for your small business to help you adopt digital tools to save you time and money. The 'cloud' is a term used to describe a network of remote global servers connected via the internet. These remote servers store and protect your data on their premises, with multiple back-ups, instead of you keeping it on your local computer hard drive. Cloud computing allows you to have an increased level of security over your data and access it anytime from any internet-connected device. Your costs are also reduced due to no longer needing to invest in new infrastructure, training staff or licensing software. When developing your strategy, consider:
Learn more about cloud computing. 9. Digital roles, skills and suppliers Consider the digital roles and skills required within your business to achieve the goals of your digital strategy. Assess if these roles and skills will be:
Complete a skills audit for all the digital components of your business. A digital skills audit involves assessing all digital tasks and technology within your business so you can identify the roles and skills you will need. Once you have identified your digital tasks, you can identify the related skills requirements; this information will define the roles required. You will then need to decide if these roles will be internal or external. If you decide to hire staff to complete digital roles within your business, or use existing staff, you will need to provide training. When training staff to take on digital roles, you can:
Your staff must be aware of the legislative and regulatory requirements for their digital role. Read more about hiring your digital team. Creating your digital strategyYour digital strategy will include your business goals, digital audit results and your digital action plan noting your digital activities. When building your digital strategy, you will need to work through 3 phases:
Phase 1: Complete your digital health checkAction item: Assess your digital readiness. Assess your business against similar businesses in your industry to understand which tasks are most important. Your business may not need to be digitally advanced in all areas, but you should aim to match or surpass your competitors. Phase 2: Outline your digital business goalsYour digital business goals summarise your reasons for improving your digital capability. These goals are the digital achievements you would like to achieve. They're different to your general goals for your business. Outlining the goals and actionable steps you can take will help you understand which goals to work on first and how you will achieve them. Follow these steps to outline your digital goals.
Add all the actions from step 2 to your digital action plan (phase 3). Ideas for digital goals include:
Example business goalsYou may need to scroll across to see all columns 1. Digital business goal2. Action to take3. Key component area4. Priority codeCreate a work-from-home opportunity for staffPurchase mobile devices (laptops)Remote workplaceAInvest in an online storage system for accessing documentsCloud computingAFind an application for staff to communicate in real time from homeDigital workplaceBImplement work-from-home policies for staff and devicesOnline securityCReduce office space with real estateRemote workplaceDNote: Complete tasks starting at Priority A through to Priority D. Phase 3: Develop a digital action planA digital action plan collates all information into a list of tasks to complete. Action plan instructions
Example digital action plan
Remember to include your digital activities in your business plan. Your digital strategy should adapt and change with the market and with emerging technology—in the same way as your business plan. Regularly review and update your plan to keep up with your business's performance and goal achievement. Which business objective were competitors seeking when they rushed to provide ATMs?The correct answer to the given question is option C) Survival. In the given question, the competitors are trying to imitate the new initiative of providing ATMs started by the Citibank in New York. Hence, they are trying to make sure that they do not become obsolete and they continue to survive in the industry.
Which of the following distinguishes information systems from information technology?The difference between information systems and information technology is that information system incorporates the technology, people, and processes involved with information. Information technology is the design and implementation of information, or data, within the information system.
Which of the following are responsible for developing and operating the information systems?CIO. The CIO, or chief information officer, is the head of the information-systems function. This person aligns the plans and operations of the information systems with the strategic goals of the organization.
Which of the following is not strategic business objectives of information systems?The six important business purpose of the information system are; operational excellence, survival, new products and services, improved decision making, customer and supplier intimacy and competitive advantage. The option D. Improved employee morale is not the strategic objective of an information system.
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Information technology has enabled businesses to compete in which of the following ways
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