“Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate.”
From the printing press to the first industrial revolution’s steam engines and cotton spinning looms – Technology has always shaped and changed Industries. There is no doubt, however, that the complexity of these transformations, the impact they have cross-industry, and the pace at which they are occurring is truly unprecedented.
Digitalization is the cause of large-scale and sweeping transformations across multiple aspects of business, providing unparalleled opportunities for value creation and capture, as well as being a source of major risk. Digital is changing entire industry value chains as it transforms the nature of business.
Digital shifts pushes the existing enterprises model, and forcing them to reconsider their businesses, while giving rise to smaller, more nimble players who embrace the opportunities digitalization affords to challenge industry status quos.
Rethink your Business Model and, Its Functioning
To change at the pace of digital, players across the value chain will need to think about their structure, employee skills, hiring practices, and how they collect and analyze data to drive data-centric business models. They will need to consider their existing business relations and how to form new partnerships inside and outside the ecosystem. Finally, they must effectively engage and maintain trust with consumers and their rapidly shifting expectations.
Digitalization does not only raise serious questions about its economic impact, though, but also on the social and public implications it brings. Take the topic of employment and job displacement, for example. Rapid and continuous technology developments are transforming the skills required for most existing jobs, creating completely new types of roles, and also rendering obsolete entire sets of current job functions.
Skilled Education: Skilled Labor
This not only has significant implications on how today’s children have to be educated and trained, but also implies that the current workforce may have to question the longevity of their existing employment and how they can ensure they are earning a living in the mid-term, given the changing nature of the labor market and the jobs available.
At the end, digitalization is one of the most fundamental periods of transformation. It provides a unique opportunity for global leaders to shape our future as, the vision of Digital India programme is to transform India into a digitally empowered society and knowledge economy. At the same time, it also places a momentous responsibility on their shoulders to ensure these transformations will have a positive impact on business and society.