The Philippines is recovering from a severe economic recession that occurred last year. Domestic activity, community mobility, industry output, and most lately bank lending activities all show clear signs of recovery. The ongoing pandemic danger and the constricting policy landscape are obstacles to progress, nevertheless.
Protecting long-term fiscal sustainability, utilizing the private sector in the recovery, and minimizing the pandemic’s negative economic effects are the main policy problems.
Digitalization is also a hot topic for lawmakers, social partners, and businesspeople. Similar to the development of the steam engine, the introduction of assembly line production, or the globalization of business, we anticipate that the advent of digitalization will have a profound and long-lasting impact on society.
Digitalization is commonly portrayed in the media as an IT or high-tech issue. In actuality, digitalization is not a recent craze or trend in IT. It’s a development that presents business owners with several chances as well as difficulties.
Digitalization impacts all industries and business sizes
The time sectors were first impacted by the digital shift (telecommunications, information technology, media, and entertainment). Particularly the publishing firms have experienced significant market share losses, and only a select few have been able to create a genuine digital strategy for their business.
In the meanwhile, all business sectors are now being impacted by the digital revolution. No industry is safe, as evidenced by a current example from the subject of system gastronomy.
By fusing fast food, sustainability, and digitalization, the Eatsa company is able to eat market share away from bigger businesses like McDonald’s or Subway.
Utilize the chances that digitalization offers to reduce the hazards.
Entrepreneurs who address digitalization pursue the following two strategic goals:
- They seek to take advantage of business opportunities to create new markets, attract clients, and create goods and services.
- They seek to reduce any risks brought on by disruptive new technologies, new business strategies, and fresh rivals in the online marketplace.
Philippine businesses are highly good at taking advantage of entrepreneurial opportunities by taking little moves, or evolving rather than revolutionizing. This effective evolutionary strategy also works with digitalization.
As a result, the first automobiles with networked telematics services have already been successfully installed in the automotive sector, which is significant for the Philippines.
Disruptive competition results from digitalization
In the domain of digital there are:
- Competitors that are frequently new to the industry, either as dynamically growing start-ups or established businesses who were formerly active in completely unrelated markets
- Competitors with access to substantial financial resources, including equity-based companies like Apple, Google, and Microsoft as well as venture capital firms like Uber and Zalando
- Competitors who fully adopt a digital business model save the costs associated with traditional business models, such as maintaining a current sales structure, by doing so.
The digital transformation is an entrepreneurial challenge
Entrepreneurs first comprehend the core workings of digitalization before creating their own plan. They must address several fundamental concerns of entrepreneurship during this process, including:
- What impact does the transition have on the composition and boundaries of our industry?
- What factors influence the development of the value chain and the related competitive activities?
- What new strategic choices must businesses make if they want to gain a competitive edge?
- What effects does the new product type have on organizations, and what problems does it raise?
Understanding digital business models is essential for answering the question of how industries and value chains will change.
In the past, software and data were used to create products and services, which were then primarily monitored, analyzed, and managed. With the full collection and use of data during the usage of the product and up until the end of the product lifecycle, digital models now have more requirements. All resources in the value chain are equipped with sensors that gather and analyze data for this process.
With the help of the networked data, new business models, like use and pay instead of pay and use, are totally automated and knowledge is generated.
The following issue is one that very successful businesses must deal with. They must oversee effective everyday operations that are expanding while also finding the creativity and drive to create digital business models and handle the changes brought on by these models.
|TRADITIONAL ORGANIZATIONS||DIGITAL ORGANIZATION|
|Resources and processes||Targets||Customer Experience|
|Cost/piece||Control Variables||Customer Basis and Motivation|
|Waterfall, V model||Procedure Models||Agile, Creative|
|Top-down on basis of planning and approvals||Responsibility||Bottom-up through continuous learning and improvement.|
|A lot in-house, a few main suppliers, long-term partnerships.||Sourcing||Networks, partnerships, spontaneous short-term co-operation.|
|Long-term (months and years)||Time Scale||Short-term (days and weeks),
“24 hr/48 hr/72 hr”
With training programs, seed money, and investment programs, reputable corporate and public sector organizations can make a substantial contribution to the promotion of digital entrepreneurship. We must continue to assist them as business leaders and promote chances for brand-new entrepreneurial challenges.
Innovation in technology combined with passion and ability can actually make our planet and people’s lives better!