03 March 2020
Evolution ensures that a species survives the changing conditions in the world. Similarly, digital evolution ensures that a business can navigate all technological changes happening across the globe.
Digital Transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements.
Continuous innovation and development help improve business results. Digital business transformation can remove incompetencies and even result in more avenues for growth. It presents golden opportunities to add value to the organisation, even though it is often viewed as a disruption.
There are a number of factors that lead to digital transformations such as changes in consumer behaviour, market conditions, evolving economy, regulatory laws, competition, etc.
Digitisation will lead to an increase in production in mature markets, as it reduces operation costs and enables companies to rely less on labour arbitrage. However, companies in Africa and other developing regions, mostly don’t get beyond a medium level of supply chain integration and are often lacking high automation and connectivity in their manufacturing operations. Consequently, they cannot derive the same benefits and have to seek others.
Digital technology in Africa, has the potential to drive innovation, economic growth and job creation in many key sectors of the economy such as health, energy, transport, agriculture, education and facilitating access to basic social services. Further, digitisation allows for greater interconnection of African markets with one another and with the rest of the world.
Africa is grasping the technological revolution with both hands. Hundreds of millions of venture capital dollars are flowing into the region which remains the fastest growing mobile phone market in the world. Financial technology is enhancing both market and financial access on the continent, particularly in marginalised areas neglected by traditional financial institutions.
The global digital economy market is set to grow from $11.5 trillion in 2016 to over $23 trillion by 2025. African entrepreneurs can use this opportunity to boost economic growth and industrialisation, alleviate poverty and improve lives, whilst developing profitable businesses.