Netflix is an example of a business that took risks to go digital — and the transition wasn’t easy. The company had a successful business mailing its customers DVDs, but chose to leap into the future with digital video streaming. Setting up streaming video was expensive, and when the company created a dual business model and raised prices, it lost 800,000 customers and got a ton of negative publicity.³

But the forward-looking strategy paid off. Today, Netflix is valued higher than CBS and Viacom.⁴

So how do you go about creating and executing a successful digital strategy? Take a holistic view of your organization and consider consulting with a partner.

First, create a vision based on factors that are disrupting your market, an Altimeter Group study⁵ suggests. Do a digital SWOT analysis to zero in on what you need to change in an increasingly digital environment. Then, show your company you are serious and put an executive or a board member in charge of this effort. Make sure there is accountability at the top, and create a digital transformation team that works with IT to examine data and set priorities.

And, of course, follow through. Top-notch digital companies do deep data analysis that extends beyond normal IT capabilities. You may want to consider hiring a data scientist if it’s in your budget (and if you can find one). A lack of data analysis skills is the biggest barrier to companies’ use of big data, a Harvard Business Review study found.³