The fundamentals of digital strategy

This article clarifies what digital strategy involves—and what it does not. You will understand how it differs from merely having an 'online presence', why the core elements of a digital strategy are more critical than ever, and how to begin developing one that aligns with your business objectives.

What is a digital strategy?

Already in 2001, I defined the purpose of a digital strategy as leveraging technology to improve a company’s performance, whether by creating new offerings or reimagining processes.

Today, in 2025, most people agree that a digital strategy isn’t just about websites, tools, and apps—it’s about deploying AI agents, integrating systems for full-funnel orchestration, and embedding sustainability into digital roadmaps.

The digital tools and capabilities have evolved, but the purpose of a digital strategy remains the same.

A digital strategy specifies your organisation's direction for developing and achieving competitive advantages through technology, along with the tactics to implement these changes.

Diverse perspectives on digital strategy

• Many decision-makers are still defining their digital strategy, each with their own ideas about its purpose and implementation. Some believe they have a solid digital strategy in place, while others may disagree.
  
  
• Generally, most companies have various concepts and perspectives on what constitutes a digital strategy.
  
  
• Marketing typically views a digital strategy as encompassing everything a company does when it goes online. IT often refers to cloud-related topics when discussing a digital strategy.
  
  
• Operations considers it data analytics. The R&D manager sees digital strategy as an online product. Financial as online revenue touchpoints. The legal department views online and digital strategies as problematic. And so it goes. 

What makes a digital strategy work?

Over the years, I've seen many companies treat digital strategy like a checklist of tools or standalone projects.

Thus, when someone tells me they’re "working on a digital strategy," I always ask:

• What business outcomes is it meant to achieve?
• Who owns it—and who’s responsible for delivering it?
• How does it connect marketing, sales, operations, and customer experience?
  

Often, the answers reveal the real picture.

A company might say they’re "investing in automation," but when we dig deeper, there's no clear business objective, no cross-functional plan, and no internal capability to deliver it.

For me, that’s not strategy—that’s wishful thinking with an IT budget.

To help frame the real conversation, I often sketch this simple loop—a model that shows how digital strategy works when it’s done right.

The challenges of digital transformation

Digital transformation is not always central to business strategies. Most decision-makers acknowledge that they are still only making gradual digital advancements rather than fully integrating digital practices across all aspects of their operations.

Most executives recognise that their companies must catch up with the digital world, and some ask me if it's too late. The realisation that digital transformation is essential is irrelevant unless it is considered a "top priority".

Still, many people also admit that their organisations are likely in denial about the necessity of transformation. As a result, many say their colleagues often mistakenly presume they are already actively working on the digital strategy.

Overcoming obstacles in digital integration

But online and digital initiatives have been ongoing for over two decades. Although we should have made everything available online and digitally by now, this transformation remains necessary. 

Take advantage of cloud computing

Recently, cloud computing has emerged as a vital component of the digital landscape. It offers many companies a way to automate and incorporate processes and capabilities that were previously unattainable.

Cloud computing can give you a jump start.

One advantage of the cloud is that cloud providers are integrating their wealth of knowledge and best practices regarding digital processes into their services, making them readily available and shareable among their customer base.

The cloud strongly connects to API offerings and distinct online functionalities that seamlessly integrate with processes and applications.

Harnessing data analytics for business growth

Another pivotal component within the digital landscape involves embracing data analytics and the potential to infuse analytical thinking into every facet of business decision-making.

Many companies are now acquiring the skills to extract valuable insights from their data. They are actively refining methods for processing this data using algorithms and rules, thereby enhancing the delivery of superior, more agile services.

Achieving these objectives often requires a shift in mindset, substantial reprioritisation efforts, and the cultivation of specific skill sets. Therefore, your executive leadership must consider both the nature and extent of their investments to attain digital momentum.

How to build a digital strategy that scales

I’ve seen it time and again: companies invest in tools, launch isolated initiatives, and call it a digital strategy. However, a digital strategy is not merely a tech stack; it serves as the foundation for your business’s growth. Here’s what matters in 2025:

1. Align strategy with capability
   Begin with an honest assessment: Do you have the necessary data, platforms, and internal alignment to support your goals?
   
   
2. Connect marketing, sales, and operations
   Your strategy must unify systems and teams. CRM, automation, and analytics drive value only when they work together toward measurable outcomes.
   
   
3. Enable people to deliver
   Digital transformation doesn’t succeed through software—it succeeds when your people know how to use it, question it, and improve it.
   
   

    

4. Experiment with AI in marketing and sales
   AI is not optional; it’s a new way to attract, convert, and serve customers. Your sales and marketing teams need to run small AI experiments. If you learn fast, you’ll lead.

Do you want to learn more?

You can download the PowerPoint presentation, which includes a classification of six types of digital strategies. The first three are primarily offensive, targeting new demands, supply, or business models. The last three are defensive by nature because they aim to improve the actions of the companies that use them slightly.

Want to know more? Through our digitalisation guide: what, why, when and how to use it, you'll find much more to read!

This is an updated version of an article originally published on February 11, 2020.