University Management Report: Analyzing Digital Strategy Failures

This report provides a comprehensive analysis of the article "Why digital strategies fail" by Bughin, Catlin, Hirt, and Willmott, aiming to offer a clear understanding of the subject matter. The report delves into the authors' explanation of how digital advancements have reshaped industrial relations and standards, while also highlighting five key areas that businesses need to address. The report meticulously examines the core argument that many digital strategies falter due to their inability to align with traditional strategies and ideologies. The report identifies several reasons for these failures, including misinterpretations of the concept of 'digital', misunderstandings of digital economics, and the tendency of businesses to focus solely on internal needs. The report also touches upon the issues of focusing on strategies implemented by existing business enterprises and a failure to understand the duality offered by digital enterprises. Finally, the report provides recommendations for businesses, emphasizing the importance of comprehending the multifaceted aspects of digital integration and the need for a deep understanding of digital strategies to ensure future success. The report concludes by reinforcing the importance of comprehending and utilizing digital strategies for future betterment.

Running head: MANAGEMENT
Management
Name of the Student-
Name of the University-
Author Note-

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Introduction
Aiming to generate a fair and comprehensive view of the relevance of the article by
Bughin, Tanguy, Hirt, and Willmott, the following paragraphs will generate a concrete summary
of the article. By exploring the detailed aspects, the following paragraphs will endeavor to
provide relevant recommendations.
Discussion
A closer look at the article will reveal that the authors have endeavored to explain the
manner in which the aspect of digital has changed the various industrial relations, standards
(Bughin et al. 2018). In addition to this, the authors have endeavored to enlist the five arenas that
need to be addressed by the business organizations. Following an elaborate yet concise manner,
the article serves to elaborate upon the effects of the digital age on the various functions. The
chief points that are traced in the article points towards the various nuances of digital strategies.
The chief point expressed by the article is that most of the digital strategies related to industrial
relations are failing because the new and innovative digital strategies fail to match to the
traditional and prevalent strategies and ideologies.
In order to elaborate upon this central idea, the authors have delved deeper to state the
reasons for the failure of the digital strategies. The article discusses about the aspect that the idea
of ‘digital’ is often misinterpreted by the authorities of business organizations. This leads to the
adoption of improper strategies related to various business enterprises. Secondly, it is also
mentioned that many business organization misunderstand the digital aspects related to the
economics (Bughin et al. 2018). Many organizations believe that with the gradual development
of the ‘digital’, the various economic areas such as economic rent have been destroyed. Further,

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organizations also believe that digital creates monopoly and rewards the pro-active. In addition
to this, the article also elaborates upon the third shortcoming that refers to the manner in which
the business organizations solely formulate strategies based on the needs and aspects of the
company. In order to develop and implement the digital strategies, the authors mention that the
economic system should be treated as a concrete whole. The article also mentions about the fact
that the digital strategies are failing due to the prevalent temperament of the business
organization who chiefly focus on the digital strategies implemented by the existing business
enterprises. Lastly, the article also focusses on the relevant idea that most of the enterprises fail
to understand the duality offered by the digital enterprises (Bughin et al. 2018). The business
enterprises need to cultivate upon the existing digital ideas and develop new innovative ideas
related to the digital enterprises related to business.
Recommendations
 It is recommended that the business enterprises should comprehend the various aspects
related to the inculcation of ‘digital’ in the various avenues.
 It is recommended that the aspect of ‘digital’ should be properly understood by the
innumerable business enterprises to reap the proper benefits.
Conclusion
After analyzing the above-discussed ideas, it can be concluded that the aspect of ‘digital’
needs to be comprehended in a proper manner. It can also be concluded that the business
enterprises need to understand the aspects of digital strategies for future betterment.

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References
Bughin, J., Catlin, T., Hirt, M. and Willmott, P., 2018. Why digital strategies fail. McKinsey
Quarterly, January, 2.