It is estimated that by 2020 more than 50 billion device will be connected in some shape or form, so can businesses really afford not to move into a digital world? It’s a question that was addressed recently at Telkom’s annual CxO debate in Johannesburg where a panel of experts were on hand to assess the value an online presence can have for any business.
“The world has changed,” said Telkom COO Brian Armstrong. “The way we live, consume and interact with technology has changed. Technology is in everything and everything is technology-driven. Technology is pervasive, and this change has been instigated by social, economic and human behaviour changes.”
With most businesses moving towards a digital strategy, there is still a danger to those who do not make the switch. Andre Wills, analyst for Africa Analysis is of the option that if businesses don’t embrace the digital age, they will simply disappear.
“If we don’t digitise and follow that technology path, we will be left behind the rest of the world. No business is immune to the digital impact. The past decade is already littered with businesses who have fallen by the wayside, victim to the change that the digital age has created,” he said.
To combat the possible threat of falling behind, Willis explained that the only way in which businesses can remain relevant, is to form a digital strategy.
“The digital strategy will transform the business such that it remains relevant to the customer of the future. In doing so, the business will be sustained into the future,” he said.
Richard Hurst, Senior analyst for Enterprise at Ovum, explained that not only are businesses busy making the switch over, they are often in a better position to do that now than ever before as the infrastructure has changed a lot over the last couple of years.
“South African enterprises are in a better position than ever before. Enterprises have access to the latest hardware and software, often closely following their counterparts in more developed parts of the world,” he said.
He added that service providers continue to invest in infrastructure to cater for the anticipated surge in data and traffic, with a focus on wireless and fibre platform, data centres and support resources.
What’s also clear from the experts on the panel, is the fact that a lot of businesses and consumer behaviour is shifting towards a mobile-driven world.
“E-commerce and e-retailing is South Africa will be primarily mobile-driven, with the most likely manifestations of digitalisation being increased uptake in mobile wallet and mobile transaction services,” Hurst said.
Wills added that businesses will have to migrate their revenue streams by listening to customers and giving them what they want. He explained that people will then shift to a different product where they perceive the most value for money.
At the end of the panel discussion, the audience was asked if their business was planning to increase or decrease their ICT spend, and 66 per cent siad that they were. Only a small percentage, about 20 per cent, responded that they have no intention to spend any more money on ICT, or will be outright decreasing their spend.
It is clear from the discussions that moving to a digital platform has become increasingly important for many businesses in South Africa, and doing so sooner rather than later is the best option.
