📺 Stream EntrepreneurTV for Free 📺

Reshaping Your Business to Meet the Digital Age Don't let forced digital progress due to COVID-19 distract you from long-term goals. Make changes now to bring your business into the digital age.

By Priya Merchant

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Change comes with the territory in business. Fail to adapt, and your company can quickly shutter. However, the pace of change in the digital age has become exponential and is disrupting even large, successful companies that might seem secure. In fact, more than half of Fortune 500 companies have gone bankrupt, been acquired, or shuttered due to digital disruption — and researchers predict that 75 percent of S&P companies will be replaced by 2027. COVID-19 has only accelerated shifts. Reshaping your business to accommodate the new virtual realities overtaking the globe will be necessary to endure throughout this ongoing progression.

Reshaping Your Business to Meet the Digital Age

Nigel Vaz, author and CEO of global digital business transformation company Publicis Sapient, talked with me about how companies are reinventing themselves to stay open. He noted three industries where changes are especially dramatic:

  • Car-buying. When the public health crisis paralyzed the industry, car dealers had little choice but to embrace the disruptive changes they'd been resisting for decades. Digital Automotive marketplace, TrueCar, rolled out a buy-from-home feature that allowed car shoppers to complete their entire auto transaction without any in-person contact at a dealership. Something that dealerships thought would never become standard — people configuring car features online and happily getting vehicles delivered — quickly shot up in popularity. "The companies were seeing, initially, percentages of 15-20 percent," Vaz asserts. "And now it's well over 30-40 percent of cars."

  • Grocery shopping. Thanks to the pandemic, more grocery shoppers are using downloaded apps, are trying new services (e.g., curbside pickup or delivery), and explore the conveniences associated with online shopping. According to Bain & Company, these changes have bumped up online grocery spending from 3-4 percent to 10-15 percent.

    "[Some people] may go to the grocery store, but then they're going to buy it on their mobile device because they don't have to carry it back home," says Vaz. "And now they've got a list. And the list is showing them very clearly all the stuff they bought last week. It's extremely convenient. If they want to wander around the store physically, the app will navigate them across the store and show them where everything is. But they may still want to avoid heavily trafficked places or standing in line and might opt for the curbside pickup."

  • Banking. Because visiting bank branches through the pandemic has been problematic, these financial institutions saw a double-digit rise in first-time online accounts, mobile deposits, and overall usage of online and mobile banking, according to polling research by J.D. Power and Ondot Systems, Inc. Wells Fargo, for example, increased both the ATM withdrawal limits and the value of checks that could be lodged via mobile devices.

"There were a lot of people who thought that older people would never bank online," Vaz claims. "However, COVID-19 branch closures and call center backlogs pushed many of the senior / other people to a digital threshold they'd never crossed before. Banks have been forced to rethink what to offer in physical locations. Post-pandemic, banks are reconsidering their branch strategy in light of changing consumer behaviors."

Related: Overcoming Challenges On The Road To Digital Transformation

How to Reinvent Your Company in an Increasingly Digital World

With such clear instances of how technology is changing the face of companies worldwide, business leaders are acknowledging they need to begin doing things differently to stay relevant and competitive. And, although every business has its own goals and circumstances, the following three adaptation strategies are universally applicable, regardless of business size or industry:

1. Make room for the new normal.

"Leaders have to get past what can be the hardest choices we make every day to move towards what will drive our future success," points out Vaz. "Often this means letting go of things that made us successful in the past, to make room for new skills, relationships, ways of working and opportunities."

Related: Why Digital Adoption Deserves Center Stage

2. Learn from digital natives.

Digital natives are companies like Amazon that were conceived and designed from the beginning to operate within a virtual or technology-driven space. They have built-in "digital DNA" as a result. These companies are capable of incredible innovation and adaptation.

Established companies that are not digital natives can still do well against those that are. But if they want to transform, they must develop their own digital DNA. A key component of digital DNA is organizational agility, which powers employees and creates a pervasive mindset of experimenting, learning, and adapting.

Agility can get better if you anticipate instead of waiting and reacting, focus on core, influential projects, and leverage the individual skills of workers to achieve the best total value. Acknowledge both stability and dynamic capabilities in regards to your people (e.g., resources, culture), processes, and structure.

3. Build capabilities for the future of business in the digital age.

"Digital transformation is very simply something that is an ongoing, continual evolution of your business capabilities," says Vaz. "And the way to think about it is, you're in constant beta. Businesses will need a set of capabilities to identify and realize value through digital. While the strategy might help find opportunity areas and markets, when combined with product, experience, engineering, and data, it will allow companies to go from identifying to rapid prototyping / bring to market."

The Time to Create Your Digital Transformation Plan Is Now

Companies will not be in a position to respond to the speed, scale, and significance of the change that's happening unless they first acknowledge that those shifts are taking place. So, while you do not necessarily have to abandon everything you're doing, don't stick your head in the sand, either. Be proactive and initiate your own digital transformation plan because only businesses that implement well-designed digital strategies will escape extinction.

Related: Digital Transformation Is Essential in the New Normal. Is Your Company Ready to Start It?

Priya Merchant

Digital Transformation Leader at Genpact

Priya Merchant is a digital transformation and innovation expert with nearly two decades of experience in financial services and insurance with top global organizations across the U.S., U.K., Canada, India and Latam.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

Most People Have No Business Starting a Business. Here's What to Consider Before You Become an Entrepreneur

You need to find the right business opportunity at the right time and take the right steps to beat the odds.

Leadership

AI vs. Humanity — Why Humans Will Always Win in Content Creation

With the proliferation and integration of AI across organizations and business units, PR and marketing professionals may be tempted to lean into this new technology more than recommended.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Growing a Business

Who You Hire Matters — Here's How to Form a Team That's Built to Last

Among the many challenges related to managing a small business, hiring a quality team of employees is one of the most important. Check out this list of tips and best practices to find the best people for your business.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Management

7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.