Understanding Business Strategy

Formulation, Types, and Benefits BG BUSINESS VII

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hy is digital transformation important? Previously, Most organisations we were looking find themselves at the

Tavonga Muchuchuti asking why they should spend millions prospects of using a digital toolkit to

of Pula or dollars investing in these digital trans

W create a transformation journey for

formations hy and is digital all these transformation new phenomenons important? that your are coming business. Most up in organisations the We industry. looked find themselves at the dif

In order asking to fully why understand they should the spend importance millions ferent elements of how the toolkit can

of Pula digital or transformation dollars investing as in an these exercise digital that transthe be used and optimized, and then went formations organisation needs all these to take, new it’s phenomenons very necessary that to are on look coming to at the look progression up in at the how industry. of technology. exactly your And this busiis

best In explained order to fully by three understand fundamental the importance laws, which ness can use digital transformation to of are: digital the Moore’s transformation Law, the as Butters’ an exercise Law as that well the as

become more profitable and to improve organisation the Kryder’s Law. needs to take, it’s very necessary to look your at customer the progression service. of technology. And this is best explained FIRSTLY, MOORE’S by three LAW fundamental SHOWS US laws, THAT which In this column, we’re going to look

PROCESSING POWER DOUBLES EVERY NINE are: the Moore’s Law, the Butters’ Law as well as at every single one of these building

MONTHS. SECONDLY, the Kryder’s Law.

Butters’ Law shows us that communication blocks, starting with the very first speed doubles every 18 months. And thirdly,

FIRSTLY, MOORE’S LAW SHOWS US THAT one, Kryder’s business Law

PROCESSING POWER shows strategy. DOUBLES us that storage How EVERY NINE capacity do you, doubles every MONTHS. 16 months. SECONDLY, With all this, we realise as an organization, create a business

something; Butters’ Law a phenomenon shows us that that communication shows that the strategy that not only ensures that speed rate of doubles technological every 18 growth months. is exponential. And thirdly, This you’re means Kryder’s the a Law increases thriving shows between us business that the storage different digitally? capacity data

points are every greater 16 months. with how passing With do all time. you this, But we leverage realise on the doubles Furthermore, something; other hand, a we phenomenon as human beings that are shows conditioned that the

digital technologies to place your busirate to think of technological in a linear way. growth This is would exponential. mean we’re This means ness conditioned ahead? the increases to move Those between from are three the the to different six questions to nine data to points are greater with passing time. But on the other hand, we as human beings are conditioned to think in a linear way. This would mean we’re conditioned to move from three to six to nine to

and try many different types of strate

Between life and death

gies. And then when you find one that BG BUSINESS VII

works, you maximize on it, and then draw back after some time and continu

Between of business life is and digital death

ously seek out new strategies because of that we’re going to be answering today. two main things; the malleability of the the level of uncertainty in that market.

In doing that, it’s worth it, to first market, and the uncertainty within it. The third one, at the bottom right understanding how business strategy And therefore, looking at this comcorner, is what we call the visionary

of transformation business is digital

is formulated. As a business, how do bination, a four- point grid is created. strategy. The vision strategy means you create a strategy? In business class, The four- point grid allows us to be that there’s a lot of malleability in that what I was taught was to use a classical able to determine the kind of strategic market. You could be able to shape

transformation

perspective to determine your business direction your business must follow to it in whatever form you want to as strategy. Firstly, you look at the external leverage that specific market. an organization, and the uncertainty

12. This is explained directly within our biology. deployed worldwide to close this gap. According to the Harvard Business Review,

For business example, a baby environment is not going to just and wake create up a In the next Starting part, we’ll with be looking the at very some first of these elements digital transformation within the is the environment act of leveraging is low. What

one PESTLE morning and Analysis. start running After 100 that, metres. you go on different of technologies the grid, you that have look been at a used low in malleabilthe on data technologies this means to increase is that operational as an organization, efThe baby’s going to start off by wiggling across recent past. Thereafter, we will look at some of ficiency, to improve customer experience and to

to create a Porter’s Five Force model to ity and low uncertainty market. That’s you’re required to create new solutions

12. the This floor, is and explained then they directly will crawl, within and our then biology. they deployed the technologies worldwide that to are close being this used gap. right now as find According new good to opportunities. the Harvard To Business illustrate Review, this, we

For will understand example, try to walk a baby and fall the is not multiple internal going times to just environment. before wake they up we In speak the exactly next in advanced part, we’ll where be economies. looking our at classical Lastly, some of we these will strategy digital will look transformation at a out local of incumbent. the is ordinary, the act of leveraging and you’re able to

one can Afterwards, actually morning be and able start to jog, you running let alone do 100 run. a metres. comparative Therefore, different look into starts technologies some of off, the whereby technologies that have been because that used we’re in still the you on candata technologies get away to increase with this operational within efthe market. since The businesses baby’s going are to run start by off human by wiggling beings, across this recent experimenting past. Thereafter, with our we various will look clients. at some of ficiency, to CASE improve STUDY: customer BOTSWANA experience POST and to

analysis, and then you look at your not necessarily shape the market any

the means floor, that and businesses then they grow will at crawl, a linear and rate, then whilst they the technologies that are being used right now as find Until new 2012, good And

opportunities. Botswana that’s Post the To was visionary illustrate just a this, postal stance. we will technology resources try to walk grows and and at fall an multiple exponential capabilities times rate. before as they a busiwe speak DIGITAL further, in TRANSFORMATION advanced in economies. terms ( MEANING, of Lastly, malleability, CASE we will will company. and look at This a local In

meant incumbent. the that top they right took corner, mail from you’ve got can Consequently, actually ness. Finally, be able STUDY & IMPACT) point A to point B across their large network of

this to jog, you creates let look alone a big for run. gap how Therefore, between you can look into the some uncertainty of the technologies to the that we’re market still is not the shaping strategy, which is probsince where businesses technology are is run at as by well human as where beings, business this experimenting As we may be with aware, our various digital transformation clients. is branches. CASE However, STUDY: the BOTSWANA advent of POST email, social

be able to leverage those to maximize the means is at, at that given businesses points in grow time. at This a linear is exactly rate, whilst what key too to bridging much, the all gap you between can technologicontrol is how

media Until and 2012, other ably Botswana digital one of technologies Post the was most just meant a difficult postal that types of technology creates your room business. grows for disruption. at an exponential But unfortunately, rate. the cal DIGITAL advancement big TRANSFORMATION you and can business get as ( MEANING, a development. company CASE In in order company. their core This business environments meant would that become they and took depleted organizations mail from over can be Consequently, Disruption amount of this uncertainty creates discussing this, we STUDY realised & IMPACT) that because of the expoint time if A they to point did not B across transform. their large network of

basically means a that big and gap a new malleability between player to use economies of scale to ensure that

where can be technology able to come is to at an as industry well as where where business previous ponential As we may nature be aware, of the growth digital transformation technology, and is in. This is because the biggest issue is

branches. However, the advent of email, social

that have come into the global market the is incumbents at, at given were points thriving in time. and This able is to exactly completely what key linear you to nature bridging maximise of the people gap your between behind business technologibusinesses, growth. Therefore, that their you organisation have high embarked uncertainty on a

media and other digital technologies meant that within

there’s a significant gap business two, that leads you development. to look incumbents again In on their digital the core transformation business the market,

creates change over room the the status for last disruption. quo. 20- So, as 30 a result, years it’s important has made cal it advancement Number and would journey become as that well depleted was as aimed high over at: malleability.

that Disruption organisations basically that come means in that must a new ensure player that discussing getting disrupted. this, we realised that because of the extime 1) if increasing they did not the operational transform. efficiency of their

very difficult to use these approaches left side, you look at low malleability,

can they be actively able to close come the to gap an industry between where technology previous adponential And so, nature what of is the digital growth transformation? of technology, And and So, because of the volatile nature of a

current core business;

and as a result, businesses need to the what linear can high nature I as uncertainty. an of organisation the people behind do These to businesses, be are able to business 2) improving kind their of customer industry, experience there’s in a the lot

incumbents vancement were well thriving as their and business able to development. completely Therefore, their organisation embarked on a of call for

change This have way, the they status a more can quo. be So, dynamic able as a to result, close way it’s the important of gap looking for explore a environments, and significant harness gap the that various leads whereby advantages to incumbents you that it cannot digital services transformation they collaboration with the different players

there’s were providing, journey and that was aimed at: that potential organisations entrants who that might come in come must in ensure and disrupt that getting promises disrupted. to give? This article will serve as a guide 1) 3) increasing going on to the find operational new, exciting efficiency opportunities. of their

at strategy and this dynamic way starts make many changes in terms of mal

they their actively status quo. close It the also gap increases between their technology capability adto And show so, and what illustrate is digital what transformation? digital transformation And from the industry for you to be able

current core business; off with what we call the strategic palwhat is, and can then leability I as we’ll an go organisation and on to use shaping an do to be the able industry, to TRANSITIONING to

vancement and capacity as to well be as able their to business continue development. to grow. 2) improving their maximize customer on experience that spectrum. in the And

TO CLOUD BASED

This Now let, way, that developed they we can understand be able by to the BCG close importance the consultants, gap for of explore example however, and harness of a local the uncertainty incumbent various advantages that is has through that been it services the Firstly, they Botswana therefore, were providing, Post started it’s and important off by bringing that within

potential data transformation entrants who in might closing come the in gap and between disrupt promises able to use to give? digital This transformation article will serve to transform as a guide their 3) going infrastructure on to find and new, moving exciting it opportunities. completely to

one of our good friends here at Xavier roof to the loop, and therefore as an

their business status advancement quo. It also increases as well their as technology capability to their show organisation. and illustrate what digital transformation cloud. This meant that, ecosystems that they were able are to leveraged to ensure

Africa. They basically say the strategy is, TRANSITIONING TO CLOUD BASED

and advancement; capacity to it’s be necessary able to continue for us to look grow. at the and then organization, we’ll go on to use you an need to take an maximum viability of the business.

different Now of a that business types we of understand technologies should the be importance that dependent are being of on example adaptive of a local DESCRIPTION: strategy, incumbent whereby that has been you dabble Firstly, Botswana Ultimately, Post started looking off by To bringing page at VIII this strategic

data transformation in closing the gap between able to use digital transformation to transform their infrastructure and moving it completely to business advancement as well as technology their organisation. cloud. This meant that they were able to advancement; it’s necessary for us to look at the different types of technologies that are being palette, as an organization, where do you see yourself? How exactly does your market look?

It’s worth noting that once you understand the nature of the market that you’re playing and working within, you will be able to understand how digital approach will work in this. As per usual, we will go in and look at some of the examples from some of our favorite clients over the years, as well as some case studies that have been used over the years in order to demonstrate and show how digital transformation can be used to leverage the markets. Once you understand where you stand in the strategic palette, it’s often easier for you as an organization to determine how technologies can be able to help. For example, if you are an organization in the classical strategy, and that environment has low malleability and low uncertainty, this basically means that you can be able to get away with using digital technologies to grow as big as possible.

I’ll give an example of one of the companies that are really inspired by an organization called the Mars Corporation. This company produces chocolates that we have in the different shops. Chocolates such as Mars, Bar One etc. They are in a market whereby