Digital Transformation - Changing Business Models
Covid-19 spurred companies throughout the world to reevaluate their business model. The need to leverage digital tools and technologies accelerated and became increasingly important to both sustain and grow one’s client base. Ignoring the digital transformation today could mean falling behind your competitors if they are fully embracing it. Since the Covid-19 pandemic hit the world, where physical interactions were restricted and the world put in lockdown, digital communication became the preeminent channel by which to communicate. However digital transformation is no longer just about technology adoption for businesses but has become a need for everyone. It is enhancing, empowering and enabling businesses, and their employees, to engage with their customers at any hour of the day. The shift to digitalization has created a whole new experience for both consumers and businesses and imbued a sense of urgency vis-a-vis technological adoption and application in the marketplace.
A new report by MNP, titled, “Capturing the Change Wave: How Canadian Businesses are Transforming,” stated that there is a huge wave of transformation which is on the verge of hitting almost all Canadian businesses and industries with digital transformation as their foremost strategy. 86% of the Canadian businesses are experiencing or anticipate the transformation in the coming year. Around 83% accept that there is at least one technology advancement that is currently underway in their organization. In addition to that, a large majority plan to increase investment in technology innovations over the next year.
One in every five business owners say that they have increased their investments in digital transformation as a strategic initiative. 54% of the organizations response to the current crisis is “shifting messaging to emphasize digital fulfilment, digital products and digital services”. Around 60% of the large sized businesses have observed that they are using new techniques and transformation which they would like to continue to include in their business models once the business environment improves.
A few companies that Kaeros is watching, has worked with in the past or believes are doing cool things in the technology space globally include:
Kanary, a new Vancouver-based tech start-up that has created a fraud detection tool that analyzes a business’s cloud-based accounting software for indications of fraud and then notifies users to take action.
Eyedo, based in Tel Aviv, Israel, is a field operation management solution company who’s technology allows users to automate routine field operations, thereby improving efficiency, reduce employee downtime and reduce costs, in the retail, hospital and transportation sectors.
Plurilock, based in Vancouver, B.C., has created software that uses biometric technology and machine learning to identify stolen user credentials automatically across a business’s IT systems, by “understanding the imperceptible patterns that mark the intended user’s keyboard, pointer, daily commute, and other movements”.
Symend, a Calgary-based company that has developed a unique engagement platform to better engage, treat, and retain customers using behavioural science, artificial intelligence, and machine learning. By using these techniques, the company is able to provide its clients a deep understanding of what consumers are looking for in their products and brands, and then using those learnings to optimize and personalize client interactions.
Synctera, based in San Francisco, CA, claims to be “one part marketplace, one part technology platform”, bringing together banks and FinTechs whose products, clients and services fit best. The company helps FinTechs identify bank partners for its products, while also working with banks to onboard FinTech partners by managing operations, compliance and risk.
Yet while many business have embraced the use of technology, there is also a good percentage of business owners struggling to keep up with this change, facing some form of barrier that restricts their ability to transform as required. Notable barriers faced by Canadian founders and owners include lack of budget (42%), not enough time and staff (32%) and lack of skills/expertise (27%). “When it comes to data there will be a growing divide between the haves and the have-nots. The haves will have a clear competitive advantage. It’s imperative for Canadian businesses to leverage these technologies so they can compete. The problem is that many organizations do not have the technical skills, processes or the capacity necessary,” says Scott Greenlay, National Director, Technology Solutions at MNP.
“Being able to adapt in a world where technological breakthroughs are happening at an unprecedented pace is critical to success for Canadian businesses. Technologies are increasing efficiency, cutting costs and improving competitiveness for companies willing and ready to adopt them,” says Trent Bester, Senior Vice President, Consulting at MNP.
Today, every industry and company faces the pressure to transform in order to survive. However, we believe technological advancement and digital transformations is one of the biggest external forces facing Canadian businesses today as it impacts all facets of the organization. For those early technology adopters, kudos to you! For those considering greater technological adoption and investment, there is no time like the present!
Stay safe and well.
Trevor Palmquist
Founder & Managing Director