Digitalization and its affect on traditional Business Model
The inception of ‘World Wide Web’ has altered the traditional landscape of companies. It has forced entrepreneurs to reconsider their business models. It has changed the way firms act in business markets in terms of what they sell and how they sell it. Since then everything has gone global. From shopping to travel, looking for a property to a doctor’s consultation, folks prefer to do all of this with just a few clicks.
Digitalization is challenging traditional business rules. It is creating new ways to create and capture value, as well as revenue. The right combination of digital technology, information and physical assets can grant a digital edge that may constitute a competitive advantage.
Digitalization is not only about social media, platforms, websites etc. It is the “integration of digital technologies into everyday life by the digitalization of everything”. It includes any activity, process made possible by digital technology. This explains its considerable influence on all aspects of our lives; the way we work, the way we live and the way we consume.
The relevance of digitalization can be deduced from the fact that they provide more engaging and personalized experience to the customers which further help in boosting your overall turn out and efficacy. It blurs the boundaries and definition of industries as now a consumer can obtain any specific commodity directly from its actual native place which is known for that particular commodity within numbered days.
The digitalization lowers the barriers to enter the market for any business type. It modifies the Key Success Factors. It also influences customers’ expectations and behavior. It enlarges the sources of expertise available. It shortens time horizons and modifies the relevant pillars that one has to think about while creating a strategy for promoting one’s business. It increases the speed of the evolution of business models.
In short, it is reshaping the structure of competition, the conduct of business, and as a result, the performance across every sector and industry. The apt example of it can be seen in the education sector as learning has become more measurable, developable, and goal-oriented. Simultaneously, changes to work paradigms are making it (i.e. work) more virtual, spontaneous and hyper-connected. Decisions on when, how and where individuals learn can no longer be constrained to a specific time or place. In this pandemic had it been working in a traditional way education would have come to a halt but thanks to technology, even in this crisis the sailing of boat remained quite smooth.
In conclusion, the bottom line is that if an entrepreneur wants to be successful now and in the foreseeable future, he needs to invest in a kind of “cultural radar” by keeping abreast of evolving technology and platforms along with investing in digital talent that can understand the customer journey and interpret relevant data to form informative insights. Those brands that can adopt and adapt will surge ahead of their competitors. This new landscape has actually forced businesses to be innovative using new ways to reach out and engage with their customers in order to stand out among their competitors.
Now is the time to take your call and do the needful to revamp your business and survive this time of crisis like a pro.
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Author: Ayushi Saxena
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