The digital economy is fast changing the way organizations operate. The digital realm is here to stay and businesses that don’t embrace it, risk becoming obsolete like many organizations in the past that refused to change.
Half of the world’s population is online, with over 50% of them accessing the web primarily through mobile devices. This rise is consumer connectivity has made it crucial for businesses to think about their performance in the digital economy.
The digital economy is a reflection of how the internet has transformed how we do business today. Shifts and disruptions in the market have forced businesses to examine their own processes and approach to ensure survival. One example is within the retail industry and the move from ‘brick-and-mortar’ to ‘click-and-buy’ consumer behaviours, which has had a profound impact.
Some retailers have responded to this change positively and subsequently flourished, others have had to close stores to minimise costs as more and more people prefer online shopping.
Here are five easy steps to see whether your company will prosper in the digital economy
Focus on digital transformation
Companies that are lagging behind have a less focused agenda for digital transformation than digital leaders. These companies’ objectives tend to be disjointed and disorganised, but mainly focused on refreshing existing technology and cutting costs where possible.
However, digital leaders put emphasis on digital transformation and allocate resources to engaging customers more effectively. As well as building out their ecosystem using digital technology.
Include new markets
Leaders who have a digital-first mentality try to remain steadfast from interferences by new entrants and start-ups. Such leaders centre their business around new and adjacent markets and are poised to avoid disruption.
The development of new products and customer experience are their prime concern. Those whose focus is on efficiency, increasing revenue and minimising costs from existing products are hindered.
Lead from the top
CEOs are in charge of implementing and driving the digital transformation program. The success of such transformation must come from the higher management level. In contrast, companies who lag behind often delegate the digital transformation program to lower management, treating it like any other technology problem. Unfortunately it isn’t merely a technological problem and so should be prioritised by the C-suite, as it will be the basis for the business in the future.
Ultilise dynamic approach
Digital transformation is itself on the verge of major changes and the term will have a different definition for businesses at different stages of their journey. The leaders who are at the forefront today will be much more aggressive in the next three years because of the constantly changing industry.
They will spend significantly more on user and customer experience, structuring their ecosystem to make internal systems reaching their customers, partners and suppliers more coherent. This will have the effect of transforming how they develop value chains to be more digital and connected, and garner them a competitive advantage.
Fast growing companies and digital transformation are built on the foundations of open thinking. The majority of companies have embraced open standards, open APIs and open source. Having such an approach is crucial to broadening and deepening digital connections between customers and partners, and improving the way they conduct business.