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Strategies to Build Digital Capabilities



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Philip Kotler - Marketing 5.0 (1)

Strategies to Build Digital Capabilities
The challenge for businesses in the Origin and Organic quadrants is
to build capabilities that address the needs of digital customers. The
companies need to invest in digital infrastructure—hardware,
software, and IT systems—that will be the foundation to deliver
digital customer experience. Ultimately, they must build
organization capabilities, which include digital expertise, skills, and
agile culture.
#1 Invest in Digital Infrastructure
Companies need to start their digital investment by building
customer data infrastructure. Digitalization unlocks many new
tactics, such as one-to-one personalization and predictive marketing.
But the foundation for those tactics is the rapid and dynamic
understanding of customers. Thus, companies need technologies to
manage and analyze big data in real time.
Companies must also transform their business processes.
Digitalization is not merely automation of current operations.
Companies often have to reengineer the entire business to fit with
the new digital reality. Moreover, digital immigrant companies have
amassed physical assets that need to be digitalized. With the Internet
of Things that connects those assets digitally, the value of the assets


can go up. Companies can utilize smart buildings or smart fleets to
deliver a real omnichannel experience.

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