Why is knowing your digital score important?
Businesses are being constantly told that they need to transform. Being in the digital economy is essential for all types of business.
So why don’t businesses have a digital strategy?
Mostly they don’t have the time or know where to start! They also lack confidence in their internal skills and the quality of the advice received.
Effectively applying technology to business requires the ability to measure results. How does a business know that they have improved competitiveness? What is being and effective business?
With business conditions and technology changing rapidly. Most businesses understand they need to use a digital strategy.
“You are who Google says you are;
88% of consumers research before they buy, consulting an average of 10.4 sources.” The Zero Moment of Truth Macro Study April 2011 Consumer Insights, Micro-Moments.
So, did you know that almost 50% of the business, operating for 10 years or more, don’t use online or digital tools! This was highlighted in a recent Suncorp and Courier Mail survey. Having a Digital Strategy is essential to your business.
Now everything you do online affects your business. While you may think that being found in the first few pages of a digital search are not necessary, it is part of your value proposition. You owe it to your staff, partners, and friends to build a competitive business.
What does a digital strategy let you do for your business?
A digital strategy does not start with a website upgrade or an Adwords campaign. SEO is not where your strategy starts!
The building blocks are;
- Establish a vision and planning program
- Manage Operation efficiency
- Improve Sales and Marketing
- Develop Digital Capabilities
While the ZMOT information has been refined in detail since 2011. Researchers have developed more details analysis of customer actions. Effective Digital Marketing requires the understanding of all aspects of your business.
Small business organizations have become increasingly concerned. Surveys by these show business need support. Chambers of Commerce and government agencies are reinforcing these concerns.
Recently the Queensland Government sponsored a Digital Scorecard tool. It has been released to local businesses. Many business process analysis tools available. These include; Digital Assessment from Software AG, and Digital Quotient from McKinsey & Co. The Information Technology Competitive quotient (ITCq) was by the Business Software Alliance. Several service providers use this quotient in their programs.
How can these scoring systems be used to improve the competitiveness of business?
Typically, these scoring systems measure the competitiveness over 3 or 4 business areas. Both the McKinsey’s “Digital Quotient” (DQ) and Queensland’s “Digital Scorecard” (DSqld) use 4. These are;
- Operation Efficiency (DSqld), Organisation Practices (DQ)
- Vision and Planning (DSqld), Capabilities and Data (DQ)
- Sales and Marketing (DSqld), Opportunity advantage (DQ)
- Digital Capabilities (DSqld), Digital Strategy (DQ)
Both the DQ and DSqld scoring systems present similar frameworks. The DSqld program is now accessible nationally through the Australia Government Dept. Innovation Information and Science. The DSqld tool can be accessed at www.business.qld.gov.au/digitalscorecard. This services is limited to Queensland based business. To be part of a more inclusive program register for a Digital Needs Assessment.
By mapping to the Business Model Canvas, we can make sure that the Digital Scorecard improve your business. It is done through highlighting the objectives of the business. The business model canvas is a tool to help to understand the business operation. It has a 9-element framework that shows how to achieve a competitive and effective operation. Using the canvas to put in place a digital strategy is shown in improved DSqld score results in the 4 areas.
“What gets measured improves”, Pearson’s Law 2011!
The Digital Score card presents 22 Questions. The results of the report are made available for the 4 areas shown by industry and locality.
Details of how to create business models using the canvas building blocks can be found at Strategyzer AG, http://www.stragyzer.com.
How to affect your Digital Scorecard results
Firstly, understand the business model building blocks for your business. Using your business assessment score create a program for digital innovation. Then prioritize the program activities.
These should be done in small incremental steps. Remember small changes can have big results.
Regular measurement of your digital performance score measures the improvement. It will show you the return on investment of the changes. This should be undertaken every 3 or 4 months.
Steps for a Competitive and Effective business operation.
1. Create a business model using the 9 building blocks
2. Establish a base measurement of your digital program
3. Describe a set of program steps to improve digital readiness
4. Order the program steps to maximize results
5. Compare before and after digital program results
Repeat process each after 3 or 4 months and the review digital score. Then update the 9 blocks of your business model. Set the next quarters program steps to maintain progress and value.