The Role of a Digital Leader

Digital Marketing - Study Notes:

Defining digital leadership

Digital transformation is creating severe disruption for several reasons.

• The pace of conducting business has escalated dramatically. This has led to ambiguity and volatility in strategic decision-making.
• The strategic tools and techniques used to advance business strategies are no longer sustainable within the realm of digital uncertainty.

Digital leadership is the implementation and strategic use of an organization’s digital capabilities, tools, and assets to achieve its business goals. This is essential in order to maintain an agile and competitive stance within a rapidly evolving digital, technological, and media landscape.

Digital leaders are expected to drive an organization forward through varying levels of digital transformation. This is in addition to the ongoing management and optimization of existing digital operations.

Digital leaders can achieve this by:

• Harnessing the use of current digital technologies, tools, and skills within an organization.
• Identifying gaps in the digital skills profile of team members, and implementing new technology, functions, and processes.
• Streamlining existing operations and capitalizing on new and emerging technologies.

All this enables an organization to achieve its business objectives successfully.

Changing nature of competition

Previously, business strategy was predicated on static competitive advantage derived from superior scale and position. It was operationalized through annual planning cycles and reviewing what industry competitors were doing. This was appropriate as the business environment was relatively stable and predictable.

Now, the rapid development of new operational and communication technologies has created a shift in the nature of competition. Organizations are finding it increasingly difficult to maintain a transient competitive advantage without the adoption of digital leadership, and an understanding of the drivers for change.

Achieving KPIs

As with all strategic planning and executions, it is essential to set key performance indicators (KPIs) to chart the route to success. Digital leaders can do this by ensuring their strategy is grounded in valuable metrics.

These metrics should demonstrate how an organization can become more responsive to customers’ needs. They also need to create milestones that aim to develop and deliver optimal products and services. This can be achieved by using innovative digital operations that respond well in an ever-changing complex world.

The role of a digital leader

Traditionally, strategies were focused on maximizing value from resources, assets, and products. In a digital context, value is now being derived from developing ecosystems and co-created digital networks.

The definition of industry boundaries has also completely changed. Previously, competition looked similar to what you offered as a business. Now, threats of competition are coming from outside the normal industry boundaries. For example, Nokia never predicted the arrival of iPhone and Android, as Apple and Google both came from outside the mobile phone industry.

The changing nature of strategy setting is clear. Rather than striving for one stable sustainable advantage, as a long-term approach, companies need to aim for a portfolio of short-term advantages, achieved through constant innovation and digital leadership. The endgame has shifted – constant fluidity rather than stability is the key to success.

Digital leadership skills

Typically, someone who is responsible for digital leadership in a marketing role is proactive about the use of any digital technologies. These technologies can be used to create new, or modify existing, processes. They also promote a new culture, and customer experiences to meet changing business and market requirements.

A digital leader possesses several key skills and attributes that make them successful in this role. They can:

• Scan the horizon for new opportunities or impacts.
• Set a transformative vision for a team or the wider organization.
• Recruit and retain top talent who can carry the vision forward.
• Influence executives and stakeholders.
• Define processes for digital excellence.
• Develop and deliver sustainable programs.
• Cultivate a culture of learning.
• Track the impact of digital strategies on the wider business.
• Optimize and continually improve digital strategies.

Business areas impacted by digital leadership

What aspects of an organization do you need to focus on as a digital leader? Some common areas that are impacted by digital leadership include:

• Marketing, media, and communications (both internal and external)
• IT, data, and corporate governance
• Business operations and finance
• HR and company culture

Each of these business areas can be streamlined and improved by introducing a digital-centric approach. To do this, a digital leader must possess a clear vision and a high level of digital literacy. This enables them to efficiently use the digital assets and capabilities available to them to achieve their business goals.

Building a vision

Understanding current processes

When building a vision for your digital strategy, it is best to start by familiarizing yourself with the current business processes.

• This includes internal processes, such as considering how teams operate together.
• It also includes external factors such as audience engagement via digital marketing channels, or customer interfacing and support channels.

Once you have a clear view of how the business is currently operating, you should then consider the digital tools and tactics that can affect these areas.

Create a vision

The next step is to create a vision that outlines how the implementation of new digital technology can improve business performance. This vision will become the foundation of your digital leadership strategy.

Develop actions

Once your vision is finalized, you can develop your plan and actions around it. Bear in mind, however, that your metrics and KPIs associated with the plan can guide you and ensure that you’re making impactful decisions. They help you to measure whether you are on track.

Get stakeholder buy-in

The ultimate goal is that you are using digital leadership to streamline operational processes and grow the business effectively. The question you’ll need to answer for your own organization is how you can create a vision of digital excellence to get stakeholder buy-in that leads both them and the organization through the process of achieving your vision.