CMA Intermediate · Operations Management and Strategic Management · Digital Strategy
In strategic management, a firm's digital strategy is best described as:
A digital strategy is a plan that uses digital technologies and data to create customer value and competitive advantage. It is tied to overall business strategy and is not merely hardware purchase, an IT budget or social media advertising, which are narrow tactical activities.
- AA plan that uses digital technologies and data to create competitive advantage and value for customersCorrect
- BA plan to purchase the latest computer hardware for all departments
- CA separate IT department budget prepared once every few years
- DA scheme limited to running advertisements on social media
Explanation
Digital strategy is about using digital technologies and data to create value and competitive advantage, and it is aligned with business strategy. Buying hardware or running social media ads are only tools or tactics, not the strategy itself.
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