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How does digital transformation help blue ocean strategy?

If both blue ocean strategy and digital transformation strategy exist; the blue ocean strategy would be the top level strategy, while digital transformation would be a necessary component of achieving the blue ocean strategy. To fully answer this question, let’s first define Blue Ocean Strategy.

Blue Ocean Strategy is credited to W. Chan Kim in the book by the same title. The premise is that there are red oceans and blue oceans -- red oceans being highly contested markets where gaining market share is a battle to the death.

Blue oceans are wide open spaces with bountiful opportunity and smart companies find ways to define their own markets, not simply fight for existing ones. One example cited in the book is Barefoot Wines. The company chose to make wine easier and less pretentious, targeting drinkers who didn’t take their wine so seriously instead of fighting for highbrow sommelier approval.

Digital transformation can go hand-in-hand with blue ocean strategy to achieve spectacular results. Technically, digital transformation would be a component or a necessity of achieving a broader blue ocean strategy.


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Questions & Answers

How much does a digital strategy cost?
Here is a short answer: Digital strategy can be created internally or externally (with the help of outside partners). Internally, depending on how big your organization is and how transformative your strategy is, the costs could vary greatly.
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How do I improve my digital strategy?
The first step to improving your digital strategy is understanding what’s not working with your current digital strategy. Are you not hitting your new customer acquisition goals? Revenue by customer?
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How do I create, organize, and write a digital strategy?
Nearly every time, good execution outperforms good ideas. For the most effective execution, it's essential to have a strong underlying strategy. Try organizing an offsite multi-day retreat with a facilitator.
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How do I avoid digital strategy pitfalls?
Like any strategy, there are more ways to find pitfalls than success. The first step in planning is to clearly articulate the overall strategy in a way that is easy to understand at all levels of the organization. 
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Why is having a digital strategy important?
Digital strategy is important because there are few sectors technology won’t ultimately touch or transform. If your organization isn’t paying attention to digital strategy, you will fall behind and potentially reach a point where you are obsolete relative to competitors.
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What is Digital Transformation Strategy?
One of the interesting things about Digital Transformation is everyone seems to define it a little differently. The reality is that consultants sometimes label a new marketing plan a digital transformation strategy -- it’s not.
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What is Digital Strategy?
Digital strategy, digital marketing strategy, and digital transformation strategy are separate things that often overlap with each other. They are often confused for being the same.
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