From Data To Profit

CHAPTER 6A Data-Driven Definition of Strategy

The purpose of this chapter is to define business strategy with data and models as part of the process. Transformation is now continuous, which forces traditional strategy planning to adapt. Business culture must adapt to support the new paradigm. The foundation is there, and we need frameworks to develop the rest.

I promised to talk about systems and models too. This definition of strategy is a model that will explain the rules of the competitive marketplace or system. From there, the frameworks that come after will help your firm optimize for these rules and its desired outcomes.

Technology cannot be an external part of the strategy calculation or the core driver either. A new definition of strategy will help businesses to integrate technology into strategy. Like any other, it becomes a core pillar and needs its own strategy. Marketing, supply chains, and talent all have strategies, so developing one for technology is long overdue.

Technology is further reaching than most strategies. Data, analytics, and advanced models are cross-functional impact creators. Those products can be leveraged by HR, marketing, finance, and every other business unit. Customer-facing products can leverage technology to deliver significant value.

Technology can add value to every part of the business and operating models. It redefines strategy, but more than that, it redefines the business. In this chapter, I'll define strategy for the modern competitive ...