From mid-2020 onwards we have been hearing about ‘The New Normal’ which has been embraced by the entire world. It has impacted our thinking, lifestyle and behaviors which has direct impacted the market. It has stumped the businesses resulting in a high percentage of companies going out of business. What was working pre-pandemic is redundant in today’s business environment. Seeing all these changes compelled me to explore the ways to combat the new normal to bounce back.
During my research one of the key factors which immediately came up was the adoption of technology by the companies. Now they are looking for solutions to digitize their business processes to speed up their operations. It requires them to relook at their overall business strategy and align them with their digital initiative. While studying on the changed strategic approach in this digital era I came across interesting articles and reports. One of them is by McKinsey Global on “The new digital edge: Rethinking strategy for the post-pandemic era”. This Article highlights that companies with strong technical capabilities, talent, leadership and resources will bounce back quickly.
The survey highlighted that the earlier business models are redundant now. 64% business respondents believe that they must build their business on new digital processes to survive in the changed landscape. Now the companies are spending more on their digital and technology capabilities while cutting their expenses in other areas of business. They view technology to be their strategic differentiator compared to their competitors. Their technology identification focuses to integrate their people and processes resulting in improvement in productivity and profitability. The businesses are aligning their people skills, processes and technology to make their digital transformation journey successful. This requires the businesses to review their existing strategy and redesign their business strategy to tide over these tough times.
Till 2019 only 22% companies were thinking of strategic transformation of their businesses as they were:
- developing new products / services, looking for new markets and new business models,
- repositioning their core business or to reshape their legacy business,
- showcasing their profit improvement turnaround case study.
Few of the early adopters to digital transformation are Netflix, Adobe, Amazon, Tencent, Microsoft to name some.
However, in the post-pandemic era there is a major shift in adoption of digital business strategy. Today 89% businesses agree that digitization will impact their industry, though only 44% are ready to adopt the digital future as yet .This number will dramatically change in the days ahead. Now the businesses view digital business strategy to meet following benefits:
- Improvement in operation efficiency
- Reduction in time to market
- Better customer experience and employee engagement
- Increased transparency and versatility
- Cost savings and revenue improvement
- Improved competitive advantage
Today 27% of companies feel that digital transformation is required for survival. Few of the industries which have diversified themselves through digital platforms are grocery stores have converted themselves to fulfilment centers, hotels provide day rate to WFH employees, retail stores expand their digital orders, fitness companies moved to online workouts and commercial airlines offer cargo flights. This digital business transformation is expected to grow by 23% in the next 4-5 years and significantly change the way businesses operate and grow..
So, have you thought about Strategic Digital transformation for your business yet ?
10XG Ventures is a business consulting boutique firm which works with their clients to achieve growth in such turbulent times. They develop an integrated strategy mapped to the business goals. They work towards building a business model on best practices, guidelines and market insights. It includes metrics driven governance to track progress against business goals, improved monitoring systems, better decision-making dashboards, and low maintenance resource management solutions. Their primary focus is to make technology work for your business rather than aligning business functions to the technology. If you are looking to digitally transform your business operations and wish to know more about it them, you can reach 10XG Ventures at support@10xg.in
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