New digital ecosystems are emerging in many traditional industries. This can be a threat to your business. Or a real opportunity.
Growing your business digitally is important.
We are the right people to guide you as we see the big picture in digital. Almost instant, low-cost, and everywhere ability to connect people and devices anywhere.
By 2025, 20 billion devices will be connected, nearly three times the world population.
Consumer demand is quickly changing. Your business can change and gain with this market or lose.
In this context, a threat is any potential harm or danger that could be inflicted on a person, business, or organization—whether through direct action or more subtle, implied circumstances. The threat noun covers a wide range of risks, and there is more than one type of threat, including cyber, competitive, and reputational threats.
What worked before may not work tomorrow
Many of us learned years ago what works. Core economic principles guided us to success and up to now continue to generate results. But the world is changing.
Digital is destroying traditional commercial thinking
Digital is confounding the best-laid plans to capture surplus. Essentially, it creates more value for customers than for business.
This is unpleasant news for businesses wanting to convert digital forces into economic advantage. Have a look at your industry.
Is digital starting to unbundle profitable product and service offerings, allowing customers to buy only what they need?
Is digital starting to impact your retail distribution? This is the universal by-product of online choice and price transparency.
Is it a problem of scale? If digital offerings can be reproduced almost freely and instantly, this shifts the advantage to businesses who understand how to drive marginal costs down and so have a price advantage.
Do your metrics show you are doing ok? Metrics can mislead: a company that tracks and maintains its performance relative to its usual competitors seems to be keeping pace, even as overall economic performance deteriorates. We may not like the fact that consumers now get the same free services that they once received from travel agents anytime, anyplace, and at no cost. We may shake our heads at the idea of taking advice from the “crowd” rather than experts.
Customers here were the biggest winners. The businesses that captured the value that was left were often from a completely different sector to past players. And that’s where we come in. We help you to learn quickly how to compete in the digital world, create value for customers, and make profits in a changed market. Just as animals rely on instinctual behaviors to respond to threats for survival, businesses must also develop strategic responses rooted in their core strengths.
Digital is driving changed economic value
Look at Amazon or iPhone (the iPhone regularly captures over 90 percent of smartphone industry profits.) Unless you are already a market leader, if your strategic goal is to maintain share relative to competitors you will be in trouble.
You can’t assume market share will remain stable, that profitable niches will remain defendable, and that it’s possible to maintain market share by outgrowing traditional rivals rather than facing the digital models that are winning share. Understanding the intent and intention behind a competitor’s move or a digital threat is crucial for crafting an effective response.
Are you worried about being a ‘Digital first mover?’
In the past, a rational strategic response was to observe for a little while, letting others incur the costs of experimentation and then copy and follow. This approach represented a bet on the company’s ability to “outexecute” competitors. Today, it is first movers and very fast followers that gain a huge advantage over their competitors. And that’s we can help you!
Why you can’t do this by yourself.
Traditional approaches such as tracking rivals’ performance and using that knowledge to fine-tune direction or value chains are increasingly misleading.
Digital operations who move across industry and sector borders are destroying traditional models with familiar lines of sight. Grocery stores, for example, now need to aim their strategies toward the moves of Amazon’s platform, not just the chain down the street.
New performance companies have the scale to reach a nearly limitless customer base, use artificial intelligence and other tools to give great levels of service, and benefit from often frictionless supply lines. Improbable business models become a reality. Look at Facebook and Uber.
Are you looking at the right competitors?
We find many companies worry about the existing digital natives, and their disruptive business models certainly merits concern. Your existing competitors are most likely also digitizing and planning to shake up competitive dynamics.
What are the potential dangers?
Incumbents can disrupt the market. They can also lose market share in the process. The real risk though is becoming a slow mover in a fast-changing market. We are talking of both B2C and B2B markets. Companies that fail to adapt can become victims of digital disruption.
Digitizing B2B players have been lowering costs and improving both the reach and quality of their offerings. Robotic process automation (RPA) has digitised 50 to 80 percent of back-office operations in some industries. Should the opportunities associated with these changes be an opportunity or a threat for your industry? We can help you decide. Sometimes, the violence of digital competition—such as hostile takeovers or cyber attacks—can be as disruptive as any physical threat.
What is going to work?
You don’t need to walk away from your existing business model.
A common response to digital threats is: “If my market is being threatened, I need to create something completely new.” Understandably, that becomes the driver for strategy. Yet for most companies, the pace of disruption is uneven, and they can’t just walk away from existing businesses. They need to digitize their current businesses and innovate new models. Businesses must be prepared for what might happen if a digital threat materializes.
Our approach is to break down your company problems into manageable chunks. The answer is not an initiative like “taking our business to the cloud” or “leveraging the Internet of Things”. Digital transformation pushes businesses to innovate or adapt to survive in the new landscape.
We help you face the realities of digital competition. The mental strain and insecurities caused by digital threats can weigh heavily on business leaders and employees, making it essential to address both technical and emotional challenges.
If you are here: “I need to develop a strategy to grow market share and turnover, and I need to get there quickly by creating value to customers. I want to redefine my role in a changed ecosystem and develop new value propositions. I want significant improvement in my existing business.” Like a child learning to understand and respond to danger, businesses must also learn to navigate digital threats and adapt their strategies accordingly. Good intentions and ethical behavior are key to building trust and long-term success in digital business practices. When a threat arises, it is important to reply in a timely and strategic manner to minimize risk and seize opportunities.
Call us. We can help you.
Introduction: The Digital Dilemma
In today’s fast-evolving digital landscape, the line between opportunity and threat is often blurred. The internet has become a space where various types of threats can emerge, from competitive threats posed by rival businesses to dangers like cyber attacks and online harassment. In this context, a threat is any potential harm or danger that could be inflicted on a person, business, or organization—whether through direct action or more subtle, implied circumstances. For example, a competitor’s strong online presence can become a menace to your market share, forcing you to reassess your strategy. Understanding the nature of these threats is essential for taking action to protect your interests and ensure your business continues to thrive. By recognizing the warning signs and responding appropriately, you can turn a potentially threatening situation into an opportunity for growth and innovation.
Understanding Digital Transformation
Digital transformation is more than just adopting new technology—it’s about fundamentally changing how your business operates and delivers value to customers. While this shift can lead to greater efficiency and a better customer experience, it also introduces new threats that can cause harm or embarrassment. For instance, a data breach can inflict significant damage on your reputation and customer trust. In the context of digital transformation, threats can be both implied, such as hidden vulnerabilities in your software, and explicit, like a direct cyber attack on your website. Protecting your business means understanding these risks and taking proactive steps to address them. For example, implementing strong cybersecurity measures can help safeguard sensitive information and prevent potential threats from becoming costly problems. By learning from the experiences of others and staying alert to the changing digital environment, you can minimize harm and make the most of the opportunities digital transformation offers.
Identifying Digital Threats
Recognizing digital threats is a crucial part of protecting your business and personal well-being. Threats in the digital world can take many forms, including malware, phishing scams, and even online intimidation. These threats can cause physical, emotional, or financial harm, and often act as a force that pushes individuals and organizations to take action. For example, a phishing attack can compromise sensitive data, leading to financial loss and reputational damage. To protect against such threats, it’s important to regularly assess your systems for vulnerabilities and take decisive action to address any issues. This might involve conducting security audits, training staff to recognize suspicious activity, or updating your security protocols. By staying vigilant and proactive, you can reduce the risk of harm and ensure your business is prepared to respond to any digital threat that may arise.
Spotting Digital Opportunities
While the digital world is full of threats, it also offers a wealth of opportunities for those who know where to look. Spotting these opportunities requires a keen understanding of the digital landscape and the ability to see how technology can be used to deliver value. For example, a business might use digital marketing to reach new audiences or leverage data analytics to improve decision-making. In this context, a threat can sometimes be transformed into an opportunity—such as using a competitor’s strong online presence as motivation to enhance your own digital strategy. By identifying areas where technology can improve efficiency, reduce costs, or increase revenue, you can protect your business from potential threats and deliver better outcomes for your customers. The key is to remain adaptable and open to change, turning challenges into chances for growth.
Assessing the Impact of Digital on Your Business
Evaluating how digital transformation affects your business is essential for long-term success. The impact of digital can be profound, altering everything from daily operations to the broader competitive landscape. To navigate this environment, businesses must assess both the risks and rewards associated with digital change. For example, conducting a thorough risk assessment can help identify potential threats and areas of harm, allowing you to take action to protect your assets and reputation. At the same time, developing a comprehensive digital strategy enables you to deliver value to your customers and join forces with partners to address shared challenges. In this context, a threat can serve as a catalyst for positive change, prompting businesses to innovate and collaborate in order to protect themselves and their customers. By understanding the risks and taking proactive steps, you can reduce the danger of loss and position your business for continued growth and success.