11/29/2021
What are Digital Businesses?
Organizations worldwide—from a wide range of industries—are adapting their strategies, business management models, and processes to prepare for the next steps into the new digital era and the world of digital business. Products and services once sold in physical environments now circulate in increasingly complex and interconnected technological ecosystems.
Cultural shifts and technological advances—the pillars of digital transformation—have created a scenario where companies are compelled to pursue paths toward the digital realm. The potential of the internet and related technologies—such as 5G, data analytics, cloud computing, mobile-first systems, IoT (Internet of Things), and artificial intelligence (AI)—signal a future of even more significant transformations.
This is the (more than challenging) backdrop in which companies will leap from the physical world into Digital Business:
==“For digital-native companies, there are no barriers when it comes to innovation: digital culture is part of their DNA,” says Marcello Bosio, Head of Digital Solutions at Insi.==
== “This familiarity with technology and experimentation makes new products and services much faster to develop and launch. Organizations with a Digital Mindset are unquestionably more competitive in their Digital Business strategies,” he adds.==
Defining digital transformation in favor of digital business
New business models view technology as a powerful modern tool. It enables organizations to gather a significant volume of data from markets and sectors where the most important commercial transactions take place.
In a broad digital transformation context, technology becomes more than relevant: through data analysis, it enables the design of innovation and production scenarios that directly impact the customer experience with a manufacturer or service provider.
Talking about digital transformation naturally ties into digital business, as more organizations seek to stand out in the highly competitive commercial landscape. Having a presence in the digital environment is no longer just a necessity—it’s imperative.
More than simply implementing new technologies in the corporate environment, digital transformation is a paradigm shift in how organizations relate to suppliers, employees, and customers. According to corporate transformation specialists, the leap to digital business depends on the technological strategies companies establish in the short, medium, and long term.
Digital technologies for online business
When selecting and implementing standardized software packages—such as Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), or Supply Chain Management (SCM)—one of the most critical decisions is whether these solutions will be deployed on-premise or in the cloud (as SaaS—Software as a Service).
A key consideration is the Total Cost of Ownership (TCO)—the total investment cost in computing systems over the company’s life cycle. These costs include:
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Acquisition: hardware and software purchases.
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Operations: networks and servers.
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Technical support: assistance, maintenance, and user training.
They can be broken down into:
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Direct costs: typically over half of total costs, covering administration and technical support.
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Indirect costs: related to end users and system operations—such as training and system availability—and may vary based on the quality of user support.
Defining the Digital Mindset for business
The concept of mindset, originating in cognitive psychology, is now embedded in modern organizational theory. In psychology, mindset is the activation of cognitive systems in response to tasks in various human activity environments—it determines how individuals act and react to incoming information or requests, acting as an initial “filter.”
In companies, mindset is discussed in terms of organizational change and its impact on all business processes. Through its effects on corporate behavior, organizational mindset can (re)shape the entire institutional culture.
When business strategies and cultural change initiatives are grounded in digital principles, companies naturally adopt the Digital Mindset.
Developing a mindset for digital entrepreneurship
Today, “digital” is not just about technology—it’s also about people. Operating in the digital business environment requires a mindset far removed from traditional in-person business models. Becoming more digital is critical to success in any market or sector. New technologies are transforming the way organizations operate.
To succeed in virtual environments, companies must pay special attention to their communication channels with suppliers and customers. More than ever, they must remain alert to avoid being overtaken by competitors or new, more digital products and services. The solution lies in developing technological tools that integrate digital creation and development with new, responsive business models.
Trends shaping digital business
Companies should consider five key trends shaping the digital business landscape:
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Mobile computing: development of micro- and nanoprocessors and their corresponding software/apps that leverage increasingly powerful processing capabilities.
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Cloud computing: solutions that interact with legacy on-premise platforms (in hybrid form) or applications developed natively for the cloud, such as IaaS (Infrastructure as a Service), PaaS (Platform as a Service), SaaS (Software as a Service), and BPaaS (Business Process as a Service).
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Social media: with a focus on customer communication and data refinement from social platforms for building B2B connections.
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Industrial IoT: the number of mobile devices is expected to reach 7.26 billion by 2023. Industrial IoT will further increase workflow automation and directly impact global production capacity.
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Big Data: data-driven insights are crucial for shaping new strategies aimed at digital business growth.
Data-driven digital business
Data-driven companies can prioritize opportunities emerging from digital markets. In deep cultural and technological transformation processes, leaders and employees must address key questions:
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Are executives and leaders adopting a data-driven mindset?
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Is company data secure and accessible to employees?
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Are employees trained to interpret and use data to drive growth?
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How can data be managed to avoid system overload?
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Do all organizational levels agree on the importance of a digital culture for growth and sustainability?
By answering these questions, a company can design strategies that drive digital business growth—aligning management with technology in the digital economy.
Your company in digital business
To remain competitive in a world where customer experience and high productivity are basic requirements, companies in virtually all industries must adopt digital innovation practices across their products and services. Naturally, these new ways of executing business processes must undergo transformation.
Organizations gain agility by abandoning outdated business development practices.
Insi has multidisciplinary teams and specialized technology professionals ready to take your organization to the next level in digital business.
➡️ Learn more about Insi’s Digital Business solutions for your company.
Contact our Digital Business experts! We are specialists in Digital Business for your success!