The digital giants dominate the so-called new digital economy and it is expected that, in a short time, they will also control the economy in general.
Technology has become a fundamental pillar for companies, which have been forced to adapt to a demanding digitization process to continue in the market. However, this evolution represents a challenge in each business, standing out for its complexity and high competitiveness.
In this way, more and more companies are turning to the figure of a specialist in this field, making MBAs in digital business an essential tool for professionals in the sector.
This Article’s Intention Is Largely To Manage The Digital Company And Its Uses.
What Exactly Is A Digital Business?
Although the definitions are varied, in its most basic concept, digital businesses are those that use technology to operate and grow.
Amazon or Netflix, and others that adapt to changes, such as Starbucks, which offers products on its online menu that are not found in its physical outlets, or supermarkets that have stations automatic payment where customers can buy without needing third party attention.
Bearing this in mind, three stages of digitization are recognized in which companies can be found. The most basic state is characterized by the change of some processes of the company’s operation, for example, eliminating physical formats and working only digitally.
The second stage would be located to the companies that make broader transitions and that have a direct impact on their clients. The most common is to add an online shopping channel or automatic chat for customer service.
And the last one is the total digital transformation of the company, being an added value. We have examples of e-commerce businesses, recreation media, and a long list of new companies that have already emerged in the digital field
Why Use A Digital Business Model?
The confinement due to the pandemic led to an increase in online purchases, from small items to larger personal property. Regarding the restoration, with the temporary closure of the establishments, they had to adapt, including themselves in platforms such as Glove, and Uber Feasts that permit purchasing, composing and delivering through their distributors and everything completely online.
Companies that use the information provided by digital platforms can better segment their target through specific advertising on the Internet.
It also lets you sweeten your creations or assistance, taking into account not only the direct comments of previous clients but also the behavior of users when entering your website, and when interacting with their social networks, among others.
The Present And Future Of Business Is Business Digitization
The covid pandemic inspired an atypical growth and innovation in the business field, moreover, during this time a large number of fully digital businesses emerged, but also traditional companies adapted and took advantage of the advantages offered by technology to modernize their processes and operations.
This situation explains that currently 9 out of 10 small and medium-sized companies in Ecuador prioritize technological development, as one of their main investment items, according to the study ‘Impact of covid-19 on SMEs: digital acceleration and change of paradigm’, carried out by the multinational Microsoft.
Espinoza mentions that this shift was possible, thanks to factors such as the high level of internet access that reaches 81% of the residents in Ecuador, according to Internet World Stats information. “This further context has provided a way to benefits such as electronic commerce, telemedicine, and virtual instruction,” he clarifies.
Digital Business, A Sector With Great Projection
The rise of business digitalization has also meant a great need for digital leaders, who have the vision to drive the digital transformation of traditional companies or have the initiative to create ventures with a digital DNA. For this reason, EDES-UTPL has developed a master’s degree focused on digital business, which is projected to become a platform to generate strategies and disruptive changes in the business ecosystem in the country. Learn more at 7 Important Lessons for Entrepreneurs And Other Business Leaders In 2022
Business Digitization, An Inescapable Future
The digitization of business is important to meet with a guarantee of success in a new scenario that has arisen in the face of the health crisis.
The processes of digital transformation have accelerated in the face of the emergence of a new reality marked by measures such as telework, sociable space, or mobility limitations.
The analysis Digitalization and SMEs”, just prepared by Andalucía Impregned with the collaboration of the EOI Foundation, provides illuminating data by concluding that entrepreneurs and self-employed are optimistic about this challenge with the only option of joining an irremediable process.
Entrepreneurs, Optimistic About The Digitization Of Business
The business world is immersed in a process of reinvention to adapt to the structural changes that have broken through across the board.
To take the real pulse of this situation, 1,234 entrepreneurs, freelancers, and SMEs participated in a survey on digitization in a business carried out by Andalucía Impregned dependent on the Ministry of Employment, Training, and Self-Employment.
The first conclusions leave a concrete fact: 79% of those surveyed think that digitization will positively affect their business and the sector, 10% believe that it will not affect it, 3% believe that it will be negative and 7% say they are not clear about it.
Prepared For Business Digitization
Before the beginning of what can be considered a new stage in the development of an SME, 80% consider that their businesses are prepared, although half recognize that they must improve their preparation.
At this point, 22% confirm that they have a digital transformation plan and are implementing it; 12% have the plan but do not advance; another 22% do not have a digital transformation plan but they assure that they will define it in the short term; 30% do not have and, finally, 14% indicate that the size of the business does not justify the need.
Digital Relationship With The Client
In this matter, only 33% admit to having an updated website and 15% their online store, which translates into a weakness in a capacity that seriously limits their digital interaction with customers.
The most developed digital channels are email (75%), WhatsApp (73%), and Facebook (42%) while the sales and customer service channels are WhatsApp (65%), email (60%), and trap (42%). As for buy-in digital advertising, the cake is shared by Facebook (30%), Instagram (19%), and SEM (11%).
Analyzing the percentage of sales through the Internet, 44% state they accomplish not deal online, less than 10 percent of sales are 27%, those who sell between 10 and 30 percent amount to 10%, better than 20 percent of online deals 12% and those who only sell online stand at 6%. Online sales data is only relevant for the last three, which add up to 28%. The most common means of payment for eCommerce are transfers (64.6%), credit cards (44.6%), and Lizum (43.1%).
The Future Of Business Is Adaptive
It is true that the pandemic accelerated digital transformation processes but within a context that companies existed already embracing. From tape conferencing or digital banking solutions, how we work, consume, or spend our free time has rapidly transformed.
Level Of Digital Knowledge
The first lever to improve to promote the digitization of the collective’s activity is training in digital knowledge and skills. When asked by specialty, 78% admit to having low or medium digital knowledge and 66% admit to not having training. For 87% learning is considered necessary, being for 42% an urgent matter.
As for the most used digital disciplines, social networks (21%), digital marketing (9%) and eCommerce (8%) stand out.
Aid For Business Digitization
The respondents take the floor about the aid that they consider to be a priority for the digitization of businesses.
65% prioritize economic aid for technological investment; secondly, they believe that training is preferable 58%; 52% consider economic aid important to invest in digital marketing; 32% indicate help to have an external specialist in digital marketing; 27% for an external specialist in digital business and 19% see the hiring of digital specialists as essential.