Strategic decision making in Digital Economy Assignment

STRATEGIC
DICISION
MAKING IN
DIGITAL
ECONOMY

INTRODUCTION
 Digital economy refers to process of a business to
response quickly to the customer demand. By using
digital technology the business owners are able to
show real time response to their customer demand.
The efficiency and speed of the digital economy
leads the business to enhance their customer
experience. In order to improve the digital economy
strategic decision-making is necessary for every
organization.
 Digitization influences the organization to transform
their strategic decision-making to achieve
competitive advantages in the global market.

ISSUES OF STRATEGIC DECISION-
MAKING IN DIGITAL ECONOMY
Strategic decision-making
in the digital economy
includes different issues.
The major issues are:
 Understand the changing
behaviour of the
customers
 Differentiate the business
 Maximize the customer
influence
 IT implication issues
Strategic
decision-
making
issues in
digital
economy
Understan
d
customer
changing
behaviour
IT
implic
ation
Differen
tiate
the
busines
s
Maximize
customer
influence

UNDERSTAND CHANGING
CUSTOMER BEHAVIOUR
 Changing customer behaviour is a big
challenge for the global business
organization.
 Today’s many organizations use the
mobile apps to connect their customers
(Nummela et al., 2014). Therefore,
customers are using these apps rapidly.

CONTD…
 Hence, the consumers and the business
customers want to connect with the
business at different times in a single
day by using various types of electronic
devices.
 As a result, it is often difficult for the
business owners to update the
information quickly as they have to
access more data.

CASE EXAMPLE
 In the context of Woolworths it has been
found that they have faced challenges to
understand the changing behaviour of the
customers through digitalization.
 In order to deal with this challenge
Woolworths is leveraging unique data
assets to gain competitive advantages and
these data assets are not present in other
competitors.

MAXIMISE THE CUSTOMER INFLUENCE
 It is important for the
business owners to
focus on brand
ambassador to social
sharing by involving the
customers.
 This will boost their
business.

CONTD..
 This is a big issue of strategic
decision making in digital economy.
 They need to bring innovation in their
information sharing, which will
influence the consumers (Kane et al.,
2015).

CASE EXAMPLE
 In the context of Wesfarmers it has
been seen that due the digital
disconnect in customer engagement
this organization face challenges in
strategic decision-making.
 Interruption in the digitalization process
hampers the establishment of customer
relationship through digital channel.
 This also hampers the strategic
decision-making.

IT IMPLICATION
 Poor infrastructure of
the IT is another major
drawback of strategic
decision-making in
digital economy.

CONTD..
 However, establishment of the user
interaction through a mobile app is
not effective to deliver the right users
experience it should be incorporated
in the core business process.

CASE EXAMPLE
 Newland has faced challenges while to
communicate with the customers through
their digital channels as the IT
infrastructure was not good.
 The digital maturity of the organization was
not good and there is issue in accessing
their key channels such as social, website
and mobile apps.

VISUAL AIDS
 Rapid growing data repositories bring
challenges for an organization.
 Visualization is includes small data,
which often creates confusing display.
 As a result, the decision-maker face
issues to understand the severely
restricted situation.

CREATIVITY
 Creativity is the best part
of strategic decision-
making in digital
economy.
 However, various issues
of strategic decision-
making can be reduced
by using creative
thinking.

REFERENCE
 Cmo.com.au. (2018). Woolworths details 3-year strategy to
become customer centric. Retrieved 29 April 2018, from
https://www.cmo.com.au/article/574302/woolworths-
details-3-year-strategy-become-customer-centric/
 Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley,
N. (2015). Strategy, not technology, drives digital
transformation. MIT Sloan Management Review and
Deloitte University Press, 14.
 Nummela, N., Saarenketo, S., Jokela, P., & Loane, S. (2014).
Strategic decision-making of a born global: a comparative
study from three small open economies. Management
International Review, 54(4), 527-550.
 Ntegrity.com.au. (2018). Starting right: Assessing
Newland’s digital confidence . Retrieved 29 April 2018,
from https://ntegrity.com.au/case-studies/newland/