[vc_row 0=””][vc_column][vc_column_text 0=””]In Part 1, we discussed the effects of digital technology and society on information, communication, and mass media. It is important because we are at the forefront of more innovations in Digitech like the internet, big data, digital media, social networks, and the like.
All these innovations create a global culture where on-demand sharing of trends is possible, affecting even business and the economy.
Let us look at the effects of digital technology on society, this time in business and the economy.
7 Effects of Digitech on Business and Economy:
1. Digitech and the Sharing Economy
Sharing economies make people’s lives more productive. Traditional businesses benefit from technologies like peer-to-peer communication and data-sharing. Uber, for starters, lets car owners earn money instead of traveling half-empty.
Airbnb lets homeowners earn extra income on an empty space or other properties. The Internet helps entrepreneurs to reach into new markets and improve the ROI of their business.
E-commerce is one of the Internet’s most innovative services because it minimizes barriers like time, distance, and resources so the world can function as if it was in one big place.
For this reason, online shopping and transactions are trendy and preferred by many. It is safer and more convenient for purchasing goods and services from any place in the world. It allows consumers access to the best of the best products and services regardless of their location.
Even payment options are more flexible now. Bitcoin payments are currently possible, eliminating the need for third-party cash transactions that charge expensive transfer costs.
Business people can also operate their businesses without the need for extensively run brick-and-mortar stores or even storage facilities. It gives micro-enterprises and small and medium-sized enterprises a fair playing field and provides them with the opportunity to compete with big companies.
Companies like Amazon and eBay are flourishing because if these new systems in the sharing economy. These companies capitalize on the reduced overhead and income costs by outsourcing labor and “retail space.” It is why they can bring the prices of goods down for their customers.
The downside is that cybercriminals have relentlessly attacked the e-commerce industry in stealing and targeting e-commerce customers and sellers.
Another drawback is that some companies with physical stores cannot adapt to these new systems, struggling to deliver e-commerce alternatives, therefore losing business or at least ROI.
3. Investment in SaaS Technologies
We see business owners investing in new technologies and automating their operations to keep up with developments in e-commerce and fintech.
Companies will rely more and more upon Software as a Service or SaaS-powered services and tools. SaaS is an online software delivery model with a third-party vendor managing and supplying users with cloud services over the Internet.
3. Digitech Revolutionizing the Way We Work
Digitech innovations continue to change the way we work and do business. By 2030, renewable energy practices, electric cars, and improved energy quality for existing and future buildings will draw 24 million new jobs created worldwide.
But by 2030, automation will cause nearly 800 million people to lose their jobs. Employees need to develop new skills in demand, even amid massive automation in business and the economy.
Changes to educational approaches must be in place, with emphasis on STEM subjects or modern-day entrepreneurship. It is not to say that other areas of study will be obsolete. But educational institutions must do an extensive assessment of what courses will continue to give their future graduates an edge.
The need for soft skills training will also increase to build resilience in emerging workers. The workforce needs to be flexible to change, able to re-skill if required, and up-skill continuously throughout their careers.
4. Communication with Customers
Technology affects the potential of an organization to engage consumers. In today’s economy, consumers expect and demand that businesses communicate with them quickly and effectively.
Knowing the latest Digitech innovations in communications, consumers will find it odd if a company cannot answer their queries within minutes. If a company’s response rate is low, it turns off consumers and causes them to conduct their business elsewhere.
It is why companies need to be updated with the latest digital technology trends in information and communication, just like in Part 1 of this series.
When you provide different ways for consumers to get to you quickly, it improves your business reputation and increases your authority as a brand in your target market.
5. Efficiency of Operations via Digitech
Businesses must continue improving operations and delivery of goods or services to their consumers.
In this ever-evolving market, the competition is stiff among industries and businesses. And this competition is regardless of company or business size. Digitech’s innovations minimize the gap between small and big businesses.
If you know how to work your brand’s digital marketing or search engine optimization (SEO) in the digital space, you can make your product or service easily searchable. Knowing how to optimize social media marketing also gives brands an edge, regardless if they are new to the business or not.
So, where can you set companies apart? It is in the quality of products they produce and the level of excellence in their operations.
Again, even a small company can compete with more prominent companies if they operate smartly.
For example, a Micro-SaaS company in the new normal focusing on a tiny target within their niche can compete with big SaaS companies targeting that entire market. They can provide top-level goods and services because they are well able to meet the demands of a smaller niche.
Since micro SaaS companies typically prioritize profits over growth, streamlining operations will bid them well. If they capitalize on how far they can use digital technology to limit overhead costs and business risks, they can grow in ROI quickly. Expansion, by that time, will also be more manageable.
6. Increased Payment Options
One way for micro-business and SME’s to outrank big competitors is by providing quick shipping options to consumers. Going back to our Micro SaaS example, fast shipping options enable micro SaaS companies to transport goods within a localized target and beat heavy-weight competitors targeting broader demographics.
Customers and consumers would quickly go for local suppliers and businesses because of convenience, accessibility, and increased accountability.
Digital technology also helps businesses manage cash flow requirements and preserve valuable resources like time, physical space, and the workforce.
Inventory technology in warehouses allows businesses to understand better managing a product’s storage and handling costs. Another example of Digitech streamlining businesses is when managers save time and resources by having meetings instead of physical locations.
For instance, automated retail is something that the retail industry was already aiming towards even before the pandemic.
Production and automation of touchless supply chains wherever possible are already happening through digital technologies like AI (artificial intelligence), Machine Learning, and the IoT (Internet of Things).
Automation is the norm, and it can help businesses speed up order fulfillment and delivery. With digital technology, consumers can now trace their orders upon purchase to the time it gets delivered to their doorstep. It produces greater customer trust and satisfaction when your business can provide what they need accurately and quickly.
Most companies are threatened with safety, theft, and vandalism in the modern era. The right software can secure financial data and other sensitive information relating to a brand’s competitive edge.
For instance, businesses need to ensure that the competition does not copy any of its next projects via a data breach.
Other crucial financial records and transactions must also be safeguarded, such as payroll. Get robust cloud-based tools such as MYOB AccountRight Plus. Handle your business management responsibilities with this highly advanced digital software with easy-to-use features. For instance, manage inventory and track payroll efficiently, especially among distributed teams in this pandemic. You can get MYOB at the cheapest price here at Softvire, home to MYOB’s cloud-based solutions that your business needs.
Conclusion: Business and Economy Adapting to the New Normal
The pandemic proved the importance of digital technology innovations even more. Businesses were quick to adapt to the sudden change, moving most of their operations online.
Sadly, not all businesses are equipped with modern digital tools, workforce, and know-how to quickly recover from sudden closures or decreased business.
We are heading towards a new normal economy. Ready or not, businesses need to adapt if they want to survive, even thrive in this new season of doing business.
The pandemic indeed fast-tracked the economy’s thrust towards touchless solutions. So, businesses need to assess their operations and identify where they can integrate Digitech innovations to improve the business. Employees also need to stay abreast of these changes, retraining to re-skill if needed, to help bring the business into a new realm of operations in the new normal.
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