Companies are increasingly investing in new digital strategies and business models. Currently, businesses are mixing classic strategies that jumped the company with new technologies. Consequently, they can build winning strategies. McKinsey presented a road map showing how to do it. So, let’s take a look:

Boost differentiation with technology and digital

Today, technology is used to innovate products, services and business models.

Differentiating your company with technology can mean making many changes. But, on the one hand, it can mean creating new digital platforms within the confines of traditional legacy corporations. On the other hand, it can also mean building interconnected services that meet several needs of the target audience. For example, Allianz was successful with Allianz Direct, as it created a single digital platform across multiple European markets.

Drive online efficiency from inputs and outputs

The second point is related to productivity. Technology is significantly increasing the rate of productivity in companies. For example, remote working and the massive migration to digital channels has made interactions cheaper.

In addition, automation is becoming increasingly prevalent in both B2B and B2C businesses with the acquisition of software that performs repetitive tasks. As a result, productivity is not only about reducing costs but also about producing more items.

Invest smartly

It is essential to analyse which technologies you should invest in. According to McKinsey, during COVID-19 the importance of being clear about where and how to invest was stressed. Depending on how businesses want to differentiate themselves from the competition, they will have to choose one technology.

For example, hyperscale platforms were one of the biggest differentiators in technology. Therefore, companies like Zoom and Square that implemented it managed to grow fast. However, not all businesses can invest in the same platforms. It is consequently vital to know where to invest to stand out from the competition.

Redistribute resources speedily

McKinsey has shown that companies that move more than 50% of their capital expenditure into their businesses over ten years create 50% more value than counterparts that move resources at a slower pace. Companies with implemented technologies advance fastly. It is essential to analyse the present better than your competitors and respond dynamically.

During COVID-19, companies presented working solutions for extensive work, such as remote working or migration to the cloud.

Link all your first-party data sources

According to Google, companies that link their first-party data generate 1.5x revenue from single ad placement, communication or outreach. Before developing a large amount of data, it is essential first to build a sustainable foundation. For example, you can invest in a tagging infrastructure to ensure that you can accurately measure the campaign performance. Also, ensure your company is prepared with the tools and permissions to collect first-party data whenever there are direct interactions with your consumers. However, you must respect users’ consent. This will establish trust with them. Therefore, your platform should adopt consent management to help you collect it.