Discussion on Companies Developing Digital Capabilities for Harnessing Emerging Innovation Opportunities

Running head: DIGITAL STRATEGY
Discussion on Companies Developing Digital Capabilities for Harnessing Emerging Innovation
Opportunities
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DIGITAL STRATEGY
1. Introduction
A digital strategy can be stated to as a form of significant strategic management and a proper
business response to the digital question that is being addresses as the part of an entire business
strategy (Setia et al. 2013). This digital strategy is being characterized by an application of newer
technologies to the existing business activities. The following essay focuses on a brief discussion on
the broad topic that organizations are developing various digital capabilities to effectively harness the
emerging innovation opportunities. The organizations often get several significant advantages after
being more marketing as well as customer focused (Hirt & Willmott 2014). The most noteworthy and
important examples of customer focused and marketing efforts are web sites, search engine
optimization, electronic commerce, mobile, advertising and social media. This essay will be providing
a critical analysis on the process that organizations utilize to develop digital capabilities for
harnessing emerging innovation opportunities.
2. Discussion
2.1 Digital Capabilities
Digital capability is referred to a term that is used for describing the major skills and
opportunities, which an organization require while thriving the current world (Karimi & Walter 2015).
The capabilities of the individuals are being considered until which the infrastructure and culture of
the organization is enabling and motivating digital practices. Digital capabilities can be eventually
developed or built by defining six elements in an organization for organizational members and these
six elements are as follows:
i) ICT Infrastructure: The first and the foremost element for digital capability is ICT
infrastructure. It refers to the information and communication technology systems and infrastructure
like networks, firmware, hardware and software for providing effective and efficient competitive
advantages to the organization (Nambisan et al. 2017). The major components of the information
technology are being provided by this particular element of digital capability. IT services are being
developed, tested, delivered, monitored, controlled and even supported.
ii) Information, Media and Data Literacies: The second important and significant core
element of digital capability is the information, media and data literacy. These above mentioned
literacies would be extremely important for the organizational members so that they get knowledge
about digital information, digital media and digital data (Weill & Woerner 2015). This will be
increasing the organizational productivity to a higher level and thus organization would be gaining
major competitive advantages.
iii) Digital Creation, Innovation and Problem Solving: This is yet another important and
significant element of digital capability. The organizational members should be able to digitally

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DIGITAL STRATEGY
create, innovate and even solve the problems effectively and efficiently (Nylén & Holmström 2015).
This type of creativity can easily enhance the organizational effectiveness to a high level and they
would be able to harness innovation eventually.
iv) Digital Communications, Collaborations and Partnership: The fourth significant and
core element of digital capability is digital communications, collaborations and partnerships (Tan et
al. 2015). The respective organization should be able to communicate as well as collaborate with the
other organizations and even form partnerships so that it becomes easier for them to understand the
current market situations and customer demands.
v) Digital Learning as well as Development: The organizational members should be able to
acquire digital learning for successfully developing digital capability in an organization (Lyytinen,
Yoo & Boland Jr 2016). Innovation and creativity are majorly harnessed in this process and the
organization is upgraded to an advanced level majorly.
vi) Digital Identity and Well Being: The sixth or the final core element of digital capability is
digital identity and wellbeing. Hence, the information is being used by a computer system to represent
an external agent. The organizational members would be able to learn about their protection of digital
identities.
Figure 1: Digital Capability Framework
(Source: Daub & Wiesinger 2015)
2.2 Importance of Digital Capabilities in Companies
Digital capabilities are extremely important and significant for each and every company as
they are responsible for eradicating the complexities of digital innovation effectively and efficiently
(Bharadwaj et al. 2013). There are some of the core and noteworthy reasons that state that digital