STRATEGY SELECTION FOR DIGITAL COMPANIES WITH AHP-VIKOR TECHNIQUES

One of the most significant trends in the past decades is digitalization. Digitalization aims to improve operational efficiency, create new customer experience and generate new revenue streams while keeping pace with the changing conditions. Digitalization has a major impact on the way companies conduct their business and affects strategy development of companies. Therefore, the aim of this paper is to introduce a practical model for companies to help developing their digitalization strategy by providing an analytical approach. Since the strategy selection is a crucial decision, companies attach great importance to this issue. There is a number of factors to be taken into account while choosing the right digitalization strategy. Therefore, in this paper, Multi-Criteria Decision Making (MCDM) approach is introduced. Analytic Hierarchy Process (AHP) method is applied to find the success factors’ weight and the VIKOR (which stands for ‘VlseKriterijumska Optimizacija I Kompromisno Resenje,’ meaning multi-criteria optimization and compromise solution) method is applied to select the right strategy. In order to prove the robustness of the method, the proposed methodology is applied to a company and the results of the study is given. The success factors and strategy models are developed based on structured review of industry reports and academic papers. After analysis of the digitalization strategies, four strategy models based on Deloitte’s report are presented. The strategy models are indicated as: the tactical model, the centralization model, the champion model and the business as usual model. Finally, the future perspectives of the study are presented