The importance of Digital Innovation for Entrepreneurs
Entrepreneurs must adopt the concept of digital innovation if they want to keep up with the present-day industry’s cut-throat competition.
Digital innovation is a perpetual process that’ll lead to an increase in the business’s net profit. It is the implementation of the latest technologies for achieving maximum productivity while minimizing operational costs.
With newer technologies coming to fore every day, let’s explore some good reasons why adopting digital innovation is key to a successful entrepreneurship.
1. Technology is a good servant, but a bad master
As an entrepreneur, it is crucial for you to understand that technology is a highly volatile concept. It is prone to change and accordingly changes the way the market functions. Your inefficiency in keeping up with latest technological advancements can disrupt your company’s future.
For example, Atari, the manufacturer of the most loved and successful video game consoles in the 1970s eventually lost out to its competitors in the early 90s due to its inefficiency in updating their video game quality and better user experience.
2. Men Don’t Matter Much, Technology Does
A labor-intensive workforce is a thing of the past, and besides, manual labor is expensive due to its lengthy operational hours and high production costs. Unless you feel you’re living in the pre-industrial revolution era, opt for business ideas that are technologically innovative.
The Just In Time Production System made famous by the Japanese automobile giant, Toyota, is a great example to learn from. They accommodated automation through conveyer belts in their production process and efficiently saved out on production and labor costs, all the while bridging the giant gap between market demand and supply.
3. Digital Creativity is Inevitable
As an entrepreneur, if you’re left out in the race to adapt to the newest digital revolution, your tech-savvy counterparts will take you out.
From being considered as a status symbol to the ultimate tech failure, Compaq has seen it all. Once regarded as the strongest contenders in the PC world, Compaq’s reluctance to accommodate innovation in accordance to market-friendly newer technologies and adherence to developing proprietary components led to its untimely demise.
Once the finance is in place, move on to selection from myriad locations like Kochi, Mumbai, Goa, Chennai and Lakshwadeep to select from.
4. A Social-Media Junkie Consumer Base
The means of advertising has seen a paradigm shift. As opposed to the pre-digital era where consumers discovered products through old-school traditional media, the modern day consumer is tech savvy and Internet driven. To secure and reach out to your target base, it is imperative to pop up on their digital screens across multiple social media platforms.
For example, cosmetics giants like L'Oréal and EstéeLauderhave championed the digital advertising makeover. Instead of getting featuredheavily in fashion magazines, these brands targeted their new-age audience through online advertising campaigns.
5. The ‘Know It All’ Consumers Vs. Cut-throat Competition
In the post-digital era, prospective consumers are well aware of their buying options. They know exactly what they want and will not shy away from shedding their brand loyalty for a product or service that is better, has more utility and is easily available.
Entrepreneurs everywhere can learn from Vijay Shekhar Sharma, the Founder of Paytm. The secret behind Paytm’s success does not lie in offering an Internet wallet but in a 24*7 customer care service that addresses customer grievances. Quick redressal of complaints over twitter and Facebook too helped gain the brand the premium it has over its competitors like mobiKwik today.
6. Service At The Click of a button
The new-age fast-paced consumer is a bit impatient and dislikes waiting for their turn. If you want to exploit the maximum potential of your target market, then digital innovation is an indispensible tool for you.
For example, online grocery store, BigBasket, is giving tough competition to supermarkets everywhere with its state-of-the art technological application of fast-paced online shopping and smooth digitalization of its processes.
Digital Innovation, although indispensible for business creation, expansion and success, involves adequate investments throughout its business cycle. Since most SMEs do not have the leverage of huge cash balances at their disposal, financial aids in the form of Term Loans, Working Capital Loans & other Business Expansion Loans from banks and NBFCs can be sought out once they prove their mettle in the market.
Digital innovation doesn’t solely imply automation of a brand’s processes; it is a better understanding of one’s product, the current market trends, and your consumers’ needs.
Budding entrepreneurs should learn from digitally creative companies to avoid disrupting their business ideas, staying relevant to the new age audience, tackling its competitors and securing a successful future.