MIT Sloan and Capgemini stated that “90% of CEOs believe that the digital economy will impact the industry, but less than 15% are executing a digital strategy.”
There is no surprise that digital is the talk of the town these days. It’s all about technologies, digital data, Artificial Intelligence, Chatbot, Virtual Reality, Data Analytics and lot more. Plus, the benefit is that we regularly get an upgrade with time.
All the enterprise be it small, mid and large are turning its pace towards digitization. Even all the startups are looking forward to going digital too. However, there is a big challenge of choosing which way to follow? And it’s equally important to plan and strategize a digital transformation roadmap that evolves startups?
According to a recent study, outdated technologies are costing small business big money. It may be cost effective and comfort that tempts enterprises to continue using old tech without any hassle and pain. However, it cannot be neglected that the old technology not only wastes time losing productivity, but it also costs more in the long run.
Talking about the startups, it cannot be neglected that they are not lagging behind in covering up the path to digital transformation. IDG survey has proved that 55% of startups have already adopted digital transformation strategy, which is high in number when compared to traditional enterprises. There are only 38% of traditional enterprises who have made their way to digitization.
Almost in all the established organizations, the digital wind has embarked a change that has evolved the way organizations used to function. 89% of companies have already adopted or planning to adopt a digital-first business strategy. If the organization are to be bifurcated, then 95% of Service Industry, 93% of Financial Services, and 92% of Healthcare industry are at the forefront in winning the digital transformation race.
One of the best and outstanding models of an enterprise embracing digital startup culture is Walmart. Being a 56-year-old company, Walmart has acquired a mass of startup companies to boost its online presence and extend its brand building across the globe. In 2011, Walmart purchased social media platform and search engine company, Kosmix, and used it as the foundation for Walmart Labs, which today serves as their tech team, routinely unveiling innovative solutions aimed at improving operations and customer experience.
Even a startup that is planning to fix its presence has to understand the effectiveness and importance of digitization. Unless they are aware of the pros and cons of the transformation, it’s difficult for startups to make the decision of transformation. However, in order to stay competitive and developed in continuously evolving digitized markets, it is necessary for startups to keep pace with technological disruption happening every second. It becomes imperative for startups.
Today, every business, be it a startup or an enterprise, they need to be smartly and continuously embracing the opportunities of new online marketing channels. All the startups need to develop strategies that bring new and digitally evolved products to market, refreshing the value propositions of their offerings, and utilize cloud technologies to enable scaling and globalization at pace. And without a doubt, it is only with Digital Transformation that startups could continue to attain a new set of customers and increase the lifetime value of existing ones.
A well-known brand, HMV went through Digital Transformation. The changed time demanded transformation that would align with the needs of the customers and the revolutionary trend running in the market. HMV was continuing to base its business model around in-store customers buying expensive CDs and DVDs, whereas as expected, consumers demand had monumentally shifted in favor of digital downloads and online streaming.
This meant only one thing – that its doors were doomed and going to shut eventually. When HMV actually realized the importance and need of transformation and decided to reinvent itself; iTunes, Netflix and all the rest were already in the ascendancy, and HMV was no longer “Top Dog”.
In today’s digitally empowered, mobile-ready era, consumer demands and expectations may cause many problems to the startups which aren’t equipped to cater to modern needs and demands. Startups don’t want to genuflect to problems that manifest themselves through loss digitally equipped competitors, inefficient marketing, poor consumer insights, and an inability to scale. In such a scenario, it’s the support of digital transformation only that is going to equip the startups with synergies and help them evolve in the market.
Jagdish is the digital marketing strategist at Finoit Technologies, a reliable.Net and java development company. His responsibilities include promoting digital marketing initiatives at Finoit. He keeps researching on the new trends in the IT industry & help Finoit to be vocal about its capabilities as a successful java and .Net development company.