development.
190
Part 2 Strategy and applications
Figure 5.4
A generic strategy process model
1
Strategic analysis
External
environment
Internal
resources
Monitoring, evaluation and r
esponse
2
Strategic objectives
• Vision
• Mission
• Objectives
3
Strategic definition
Option
generation
Option
selection
Option
evaluation
4
Strategic implementation
Planning
Control
Execution
Table 5.1
Continued
Jelassi and Enders (2008)
Digital business strategy
framework
Johnson and Scholes
(2006) Parallel corporate
strategy model
McDonald (1999)
Sequential marketing
strategy model
Smith (1999)
SOSTAC
®
Sequential
marketing strategy
model (see Chapter 8)
Strategy implementation
including internal organisation,
interaction with suppliers and
users or customers
Resource allocation and
monitoring (budget,
first‑ year implementation
plan)
Tactics
Actions
Control
M05_CHAF6542_06_SE_C05.indd 190
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Chapter 5 Digital business strategy
Prescriptive strategy
Strategic analysis,
strategic development
and strategy
implementation are linked
together sequentially.
Emergent strategy
Strategic analysis,
strategic development
and strategy
implementation are
interrelated and are
developed together.
Table 5.2
Summary of approaches used to support emergent strategy
Aspect of emergent strategy
Approaches used to support emergent digital strategy
Strategic analysis
• Staff in different parts of organisation encouraged to monitor introduction of new
approaches by competitors in‑sector or out‑of‑sector
• Third- party benchmarking service reporting monthly or quarterly on new functionality
introduced by competitors
• Ad hoc customer panel used to suggest or review new ideas for site features
• Quarterly longitudinal testing of usability to complete key tasks
• Subscription to audience panel data (comScore, Netratings, Hitwise) reviews changes
in popularity of online services
Common elements include:
1
Internal and external environment scanning or analysis is needed. Scanning occurs both
during strategy development and as a continuous process in order to respond to competi-
tors. Digital business requires a more continuous review of opportunities and threats as
new digital platforms are created and adopted by businesses and consumers.
2
A clear statement of vision and objectives is required. Clarity is required to communi-
cate the strategic intention to both employees and the marketplace since digital business
requires a major long- term transformation. Objectives are also vital to act as a check as to
whether implementation of strategy is on track.
3
Strategy development can be broken down into strategy option generation, evaluation and
selection.
4
After strategy development, enactment of the strategy occurs as strategy implementation.
5
Control is required to monitor operational and strategy effectiveness problems and adjust
the operations or strategy accordingly. With digital business, optimisation is possible
using digital analytics (as described in Chapter 12). This includes tracking of audience
behaviour using desktop and mobile services and qualitative feedback via social media.
Harnessing this insight is useful to refine the implementation, for example to gain ideas of
how to increase conversion rate to sale for e-commerce services.
Although the models suggest that these elements, are generally sequential, in reality they are
iterative and require reference back to previous stages.
Jelassi and Enders (2008) suggest that there are three key dimensions for defining an
e-commerce strategy:
1
Where will the organisation compete? (That is, which markets within the external
micro- environment.)
2
What type of value will it create? (Strategy options to generate value through increased
revenue or reduced costs.)
3
How should the organisation be designed to deliver value? (Includes internal structure and
resources and interfaces with external companies as discussed in Chapter 10.)
The arrows in Figure 5.4 highlight an important distinction in the way in which strategy process
models are applied. Referring to the work of Mintzberg and Quinn (1991), Lynch (2000) distin-
guishes between prescriptive and emergent strategy approaches. In the
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