Being part of the digital revolution means adapting business models to new environments. Many businesses are still struggling when it comes to online engagement, and the benefits are too clear to ignore. The growth of online commerce means older business models must adapt for a digital environment – those which aren’t able to convert their businesses will fall behind. But more importantly, digital business models are extracting more value from their workforce.
Why is it important?
Traditional business structures are breaking down. Those businesses with digitally-capable workforces are thriving, and are able to extract more value. For instance, in a comparison between those businesses in bricks and mortar, and those businesses with tech and digitally-enabled business models, employees are able to provide $300,000 more revenue on average.
This is especially important considering pure bricks-and-mortar players are forced to transition to an online environment. Maintaining margins during that shift requires careful planning – and significant investment in staff.
Case in point: Using technology to boost connectivity and conversion
Being able to turn business models around isn’t easy, but many traditional businesses are attempting this and are making significant strides. In Australia, major retailers have spent considerable amounts of time and money in boosting their online presence. Various other retailers from a variety of sectors such as Country Road have also spent millions in boosting their technological capabilities – not just in creating websites, but enabling their staff to work with digital tools and infrastructure to extract value. For instance, in Country Road staff are now being instructed to serve customers with iPads, instead of standing at a service desk. This enables the customer to connect more directly with the consumer, and increases the likelihood of a sale.
What you need to know
- The digital revolution means businesses must consider how they can make themselves digitally savvy. This could require substantial investment or an entire re-working of traditional business plans
- Extracting value from these models means having to train staff in new and exciting ways – but there are considerable productivity benefits in doing so.