What it takes to succeed in the Digital Economy
Transitioning to the Digital Economy
“Digital” is the new Digital Economy!
“Digital” has just been an appendage to business as usual. This has changed because “Digital” has now not just become part of the economy, it is the economy. Why is that? The Digital Economy has no borders. Thus, it has opportunities for disruption and displacement.
While some companies fail, others thrive
There are many companies that were not able to adapt to the new pace of this economy. Kodak, Blockbusters, Sears, and Blackberry are some of those firms, which were unable to adapt. However, other companies discover the opportunities and thrive in a new and modern environment. According to MIT Sloan research, companies that adapt to the digital economy are 26% more profitable than their industry peers. The same also applies to firms in Digital Arabia.
How are those rising firms reinventing themselves in the Digital Economy?
To understand why these companies can adapt to the new digital world, we therefore need to have a closer look at customer expectations, product enhancements, collaborative innovations, and organizational forms.
Customer expectations – seeking for the proactive experience
Nowadays, customers are searching for companies, which can provide them with a proactive experience. An example is a virtual technician that records vehicle data before, during, and after a fault occurs. The company then sends the data to the car manufacturer for analysis of the fault. In return, the technicians provide the driver immediate feedback. This is exactly the kind of experience that a modern customer expects in the global digital economy.
Product improvements – integrating related products and services into sophisticated industry solutions
Companies have been harnessing the power of platforms. The goal is to connect buyers and sellers. Best examples are Etsy, eBay, Airbnb, Uber. The app “Uber” is resulting in a new on-demand economy, which is redefining the nature of work.
Collaborative innovations – innovation as a critical factor to become more competitive
Collaboration is indispensable for innovation. This does not apply only within the company’s own boundaries. Moreover, the collaboration becomes highly important beyond the companies. Companies, which want to become highly competitive, need to collaborate with customers, partners, startups, and universities. Those companies therefore build ecosystems such as Amazon, PayPal, Apple, and Microsoft, which partner with providers of complementary products and services.
Organizational leadership – rethinking structures and the company culture
The hierarchic organization will not work in the global and fast-changing digital economy. At the same time, decision-making is increasingly based on data, and not on the opinions of senior executives. Those companies hire data scientists to improve the organizational learning. They also integrate artificial intelligence robotics and other advanced technologies.
Digital technologies have the potential to transform business practices and societies. They are essential to the innovation-driven global economies. However, technological revolutions are very disruptive to economies and societies. The biggest challenge is to create effective organizations for the digital economy. Companies that could adopt are already leading the way worldwide and even in the Middle East.
At Zenoctus, we offer services that provide a competitive edge to those companies, which want to succeed in the Digital Economy.