Dual Digital Strategy: A Leader’s Non-Negotiable Responsibility

It is imperative to understand the present in order to anticipate the future. In emerging markets, over 70% of young consumers now choose fintechs as their first option for financial services (McKinsey, 2023). Among those under 45, loyalty to traditional banks has fallen to just 32% (Accenture, 2024). Customers no longer compare only interest rates — they compare experiences. Some 58% of customers would switch banks for a better digital experience (Capgemini World Retail Banking Report, 2024). In the Digital Age, attracting and retaining both customers and talent has become as challenging as ever.

Against this backdrop of rapid technological evolution and shifting consumer habits, two terms have dominated boardroom agendas and specialized media: digital business and digital transformation. Although often used interchangeably, they are not the same — and confusing them can lead to flawed strategic decisions, misallocated investments, and, at worst, render your entire business model irrelevant.

The New Dual Digital Agenda: Transform the Present and Build the Future

• Digital Transformation optimizes what you are today.

• Digital Business explores and builds what you have not yet become.

1. Digital Transformation.

Objective: Redesign current processes to strengthen the core.
Approach: The DTU (Direct-to-Users) model focuses on incremental improvements to known operations. Its greatest adversary is the comfort of legacy processes that still “work.”

Team Composition:

• Cross-functional, interdisciplinary teams with deep experience in existing processes and the current business.

• Collaboration with experts in emerging technologies to ensure seamless integration.

Key Metrics:

• Percentage of processes digitized (automation and migration to digital).

• NPS/CSAT scores for internal or external customers.

• Operational cost savings.

• ROI on IT projects.

• Speed of adoption for new tools.

Outcome: A culture of continuous improvement, greater efficiency, and a robust digital foundation for current offerings.

2. Digital Business.

Objective: Create a new, distinct revenue model.
Approach: The DTC (Direct-to-Consumer) model demands independence from the legacy core yet maintains an integrated strategic vision. The most common mistake is launching digital ventures under the rules of the legacy business.

Team Composition:

• Autonomous, startup‐like teams operating outside the core’s rhythm.

• 100% digital profiles with agile methodologies, capable of rapid iteration around a Minimum Viable Product (MVP).

• Teams must measure real‐world outcomes and only scale when hypotheses are validated.

Key Metrics:

• CAC (Customer Acquisition Cost).

• LTV (Customer Lifetime Value).

• Retention rate.

• Growth in active users (DAU/MAU).

• Percentage of total revenue derived from digital businesses.

• Engagement and conversion metrics (CTR, click-to-purchase rate, ARPU, among others).

Outcome: A scalable, disruptive revenue stream that complements, and eventually enhances, the heritage business.

Examples of Traditional Companies Excelling in Digital Transformation

These organizations have deeply adapted their processes, culture, and operating models via digital technologies, without altering their original core business.

1. BBVA (Banking – Spain)
   Result: Recognized as one of the world’s most digitalized banks.
   Success Factors:

   • CEO Commitment: Francisco González personally championed the digital vision from 2006 onward.

   • Organizational Transformation: Shifted to agile “cells” and established “digital factories.”

   • Sustained Technological Investment: Developed proprietary platforms, migrated to the cloud, and emphasized advanced analytics.

   • Digital Culture and Internal Talent: Over 50% of customers now manage their banking entirely online; continuous internal upskilling programs reinforce digital capabilities.

2. Schneider Electric (Energy and Infrastructure – France)
   Result: Transitioned from an industrial manufacturer to a leader in digital solutions for energy efficiency.
   Success Factors:

   • Business Model Shift: Evolved from selling hardware to offering data-driven services.

   • “Digital-First” Mindset: Global reorganization to scale digital initiatives quickly.

Examples of Traditional Companies Successfully Creating New Digital Businesses

These organizations have not only transformed internally but also launched separate digital ventures that generate disruptive new revenue streams.

1. Disney – Disney+ (Media & Entertainment – USA)
   Result: Garnered over 100 million new subscribers in less than two years.
   Success Factors:

   • Separate Operating Model: Structured independently from traditional TV and theatrical businesses.

   • Rapid DTC Adoption: Embraced a direct-to-consumer approach.

   • Leveraging Intellectual Property: Utilized flagship content from Marvel, Star Wars, and Pixar.

   • Technological Investment and Strategic Alliances: Acquired BAMTech to secure streaming capabilities.

2. Walmart – Walmart Connect & Walmart+ (Retail – USA)
   Result: Established a digital advertising unit generating billions in revenue.
   Success Factors:

   • Data Leverage: Utilized insights from 150 million customers to segment advertising effectively.

   • Proprietary Technology Platform: Built an in-house retail media network.

   • Strategic Organizational Separation: Created an autonomous structure within the corporate group.

   • Attracting Top Digital Talent: Innovative, data-driven professionals gravitate toward organizations with a clear, agile vision.

Dual Digital Strategy: The Business Leader’s Imperative

• Digital Transformation: Optimize what you already are, reinforcing operational foundations.

• Digital Business: Explore and build what you have not yet become, either on those foundations or from scratch.

1. Transform Without Differentiation: A company that focuses solely on transformation may survive, but it won’t lead.

2. Innovate Without Foundation: A company that only innovates risks chaos and a lack of coherence.

3. Balance Both with Precision: The enterprise that executes both strategies with strategic rigor will lead the market.

Ignoring digital business today is not a neutral choice. It is a strategy that guarantees growth obsolescence. Likewise, neglecting digital transformation is a strategy for operational irrelevance. While these two imperatives are distinct, their interplay depends on how closely the new digital venture links to the existing core. Where integration is high, any delay in digital transformation will stall or even kill the emerging digital business.

In the financial sector, where trust and broad data access are structural advantages, failing to develop digital businesses not only underutilizes critical assets but also exposes the firm to an irreversible loss of market relevance. Simultaneously, digital transformation remains a fundamental requirement for operational efficiency and scalable growth.

Achieving this equilibrium is the defining challenge for business leaders committed to the sustainability of their organizations in the 21st century.

Because the future is not inherited, it is built.