The internet and technologies have brought a vast change in the way of work we were habituated in previous days. Internet is such a system that has opened up many different doors of possibilities to us. We all, to some extent, are part of digital revolution.
Due to COVID-19 pandemic people have started understanding better of the results of digital revolution. Though we have already started enjoying the tastes of digital deluge but to understand better the way it is growing, let me bring you an example here. The Fortune 500 companies took 20 years to climb up to a valuation of one billion dollar market where the digital native companies like Uber, WhatsApp, Snapchat took only four years to make a billion dollar market in these days. And this was only possible due to digital revolution. So the digital immigrant companies, that took birth during pre-digital era, now need to think like the digital native companies. Only then a sustainable and continuous development is possible in the businesses. And a change in the mind-set of the businessmen is needed for that. A businessman should always consider using the technologies on the basis of the necessities of the consumers.
The word digital is being used in many different terms in present days like, digitization, digitalization and digital transformation. Basically, there is a logical sequence in these three terms- from digitization to digitalization and from digitalization to digital transformation. Then the question arises- What this Digital Transformation is? To understand it better we might bring two quotations here.
Digitization means transforming the analogue or physical information into digital format. One simple example of this kind is bringing a printed newspaper to the consumers through a website or digital app. So the second format is digitalization. This is all about making the business models digitally enabled and upgraded through using digital technologies. Such as, a digital newspaper can create spaces for advertisement display. Moreover it can generate bigger user base in innovative approaches, view wise, click wise, space wise and augmented reality wise.
Now let's discuss on digital transformation. It is an effort of change through combined digitalization that spreads through operating models among all aspects of business like man, machine and matrix. Bringing effective results for the companies is the main motto of this effort. If the company use analytics data as digital first, increase subscription on the basis of better understanding of the users demand and attract the advertisers through providing different digital services, it will be able to make more profit.
Amid this corona crisis period, a thorough change has taken place in all aspects from national culture to business pattern and consumers' behaviour. This digital transformation is now necessary, so that we can make ourselves fit in amid a changed scenario.
Let us talk about the virtual meetings, which we could hardly think about in previous days. If we could think even, we hardly considered or practiced. But now it is highly necessary to adapt with the change and practice it. With this we will be able to fit ourselves in amid the catastrophic situation we are passing through. And in this situation, we need to analyze the consumer behaviour and design time befitting services and products for them. Through this, a business organization can maintain sustainable progress in uneven situations as well.
As I believe, we can also bring the small traders in our country in the process of digital transformation. Almost all of them are now using a smart phone. Let us take a grocery shop as an example. Due to pandemic or may be due to other reasons, people visit the shops less now a days. If we can provide an app where all the groceries in the locality are included, user can select and order any necessary product and the nearest shopkeeper will accept the order and deliver it to the consumers' home taking a delivery charge. And for the payment, the customer can also use a mobile financial service so that the price can easily be transferred to the digital wallet of the shopkeeper. From the dashboard of this app the shopkeeper will be able to know the details of the consumers as well. Through this both the businessmen and the consumers get benefitted.
Not only for the small traders, is this digital transformation needed for all the established business institutions as well. We can bring you the example of Walmart. They have set AI supported cameras in their retailer shops that help them to collecting different types of information. Through analyzing the information they can work out ideas on the consumers' behaviours, choices and demands. Not only mapping of consumers' behaviours, through this, Walmart can also analyze the selling pattern of its products to take further strategies, and can do automated inventory management. If Walmart failed to make sure this digital transformation, they must remained lagging behind. And for all these due reasons digital transformation is needed. There will have no alternative of this in future days. So to secure our business we need consider digital transformation and adaptation now.
Safaat Ali Choyon, Senior Business Development Manager,
ACCA Bangladesh
