STRATEGY CONSULTING GROUP

 
 
              SCG

DIGITAL ECONOMY & GLOBALIZATION

Digital Economy consists of four specific technology developments are driving a tectonic shift in the digital ecosystem: 

  • Mobile. Widespread penetration and evolution of feature-rich, smart mobile devices
  • Social. Ubiquitous social networking and user-generated content
  • Cloud. On-demand, real-time access to supercomputer power and unlimited storage
  • Internet of Things. Convergence between the real and the virtual worlds

 

These technologies are changing the relationships between consumers and companies. Consumers have more power to gather and process information, connect, and voice opinions. And companies can leverage vast new sources of consumer information that lets them engage customers in a microtargeted way.

 

To win in the digital economy, companies must recognize that the time to act is now—and that the stakes are high. Executives must be willing to explore new approaches and learn by experimentation, while focusing on crucial questions:

  • Do we have a dynamic digital strategy that generates value and considers new business models?

  • Do we have deep insight into how our customers are using new digital tools?

  • Do we have a partnership strategy with the key technology players to enable us to respond?

  • Does our marketing strategy take advantage of new technologies to enhance our traditional campaigns?

  • Are we fully utilizing online and mobile channels as part of our go-to-market strategy?

  • Do we have the right talent and organization to execute our digital strategy? 

  • Is our IT adaptable enough to support new business models and change?

 

SCG has extensive experience working on digital economy strategies with companies across all industries and regions. Through our deep topical proficiency and a wealth of cross-functional knowledge, SCG can separate facts from hype and help clients succeed in a challenging competitive landscape.

 

Our digital economy tool kit focuses on the specific areas that are critical to success in this new environment:

  • Digital strategy. Using our expertise in adaptive strategy and business model innovation, we help clients adopt a long-term perspective on digital transformation while ensuring that their efforts remain undiluted and targeted.

  • Digital customer insight. We work with clients to focus on smart segmentation and "digital listening" to effectively aim their messages and strategies.

  • Digital ecosystem. We assist clients in understanding the competitive landscape, find partners that can help them succeed, and incorporate the use of "stacks"— modular, layered, industrial designs topped by a peering community.

  • Digital product portfolio. We help clients leverage their intellectual property advantage and drive advocacy-led innovation.

  • Digital marketing. The nature of the digital economy makes marketing essential. We bring extensive expertise in strategy, metrics, organization, advocacy, and pricing.

  • Digital channels. Our experience in developing e-commerce, m-commerce, and multichannel integration strategies is an invaluable asset for companies.

  • Digital-ready organization and capabilities. Beyond developing the strategy, we help clients define their digital organization structure, implement change management plans, and adapt recruiting and training methods.

  • Digital technology operations. We make use of our extensive functional knowledge base to help companies with data integrity, analytics, and customer relationship management.

 

 

Globalization multinational companies have entered rapidly developing economies (RDEs) to achieve cost advantages and expand their customer base—mainly targeting customers at the top of the wealth pyramid. They have not, however, extracted the full value of their investments.

 

Today, multinationals find themselves increasingly challenged by RDE-based companies entering the global scene and vying for leadership. And some of the challengers are likely to emerge stronger post-economic-crisis, benefiting from their home market growth, low-cost advantage, and opportunistic acquisitions. 

 

Despite their slowdown, the RDEs will remain an important growth engine for many multinationals.  But companies will need to contend with a new set of growth and competitive dynamics as the RDEs respond to the crisis. At the same time, leveraging the RDEs for cost savings has become more complex in the new global environment.

In this environment, senior executives of leading companies face some important questions:

  • How do we get to the next level of profitable growth in RDEs and make the transformation to become a globally advantaged company?

  • Do we have an up-to-date understanding of the growth opportunities here? Are we prepared to respond and win in the new operating landscape?

  • Are we capturing the opportunities these markets offer for cost reduction? Have we developed a network of advantaged positions?

  • Are we adapting our business models and strategies to “challenger-proof” our business?  Are we sufficiently engaging the challengers as partners and customers?

  • How well are we orchestrating and coordinating activities across our global positions?

  • Do we have the right global talent pool to support our global ambitions?

 

The challenges and risks are tremendous. But the opportunities are limitless in the new era of global competition.


SCG’s Global Advantage practice helps clients achieve global competitive advantage by capturing opportunities arising in and from the RDEs. We support both industry leaders from developed countries and fast-growing companies from the RDEs on a wide range of issues:

  • Capturing growth organically and through partnerships, mergers, and acquisitions

  • Leveraging the advantages of RDEs on a global scale, in areas such as R&D, sourcing, production, and business-process offshoring

  • Engaging with the emerging strong players from the RDEs

  • Orchestrating a global transformation and enabling the organization for global success

 

Collaborating closely with SCG’s industry and functional experts, we regularly conduct research on topics that are priorities for business leaders around the world.