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Article - McKinsey Quarterly
Why digital strategies fail
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The economic essentials of digital strategy
Article - McKinsey Quarterly
Using people analytics to drive business performance: A case study
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Article - McKinsey Quarterly
The economic essentials of digital strategy
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To get your head around the new economics of the digital age, look to degrees of change in supply and demand—and the disruptions that result.
The essentials
The need to revisit old certainties is truer than ever as digital contravenes traditional economics in three primary ways:
Three shifts
Article - McKinsey Quarterly
Why digital strategies fail
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The irascible baseball manager Earl Weaver once said, “It’s what you learn after you know it all that counts.”
After you know
A quick briefing in five—
or a fifty-minute deeper dive
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Want to better understand what digital is doing to your business? Look to the underlying economics.
Digital’s hard truths
In this edition:
Sparking creativity in teams:
An executive’s guide
Article – McKinsey Quarterly
Drives
Rewards
Destroys
Many of us learned a set of core economic principles years ago and saw [their] power early and often in our careers. This built intuition—which often clashes with the new economic realities of
digital competition.”
“
Bughin, Catlin, Hirt, and Willmott
Digital destroys economic rent—creating more value for customers than companies.
Digital destroys ...
Digital drives winner-takes-all economics—leading to big winners and losers at the top and bottom, respectively,
of a steep power curve.
Digital drives ...
Digital rewards first movers and some superfast followers—the fleetest companies enjoy more than double the three-year revenue growth rate of companies playing it safe.
Digital rewards ...
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Why digital strategies fail
Article - McKinsey Quarterly
Modest change
in the nature of supply and demand
Supply
Demand
Extreme change
in the nature of supply and demand
5
6
4
2
3
1
5
6
•
Change supply-side cost structure by automating, virtualizing, or disintermediating
4. Reimagine business systems
4
•
Uncover latent supply
•
Make capacity available in smaller increments
2. Unconstrain supply
2
•
Find new—cheaper and easier—ways
to connect supply and demand
3. Make new markets
3
Address unmet demand by unbundling or tailoring
Make it easy and make it now
•
•
1. Undistort demand
1
•
Enrich the product or service with information, social content, or connectivity
•
Do more of the customers’ work for them
5. Create new value propositions
•
Face new competitors and/or opportunities by leveraging customer relationships
or information
•
Create or fight network effects
6. Hyperscale platforms
—