The New Digital Edge: Rethinking Strategy for the Post-pandemic era- Troy Taylor
The post-pandemic era brings with it many changes, in the field of technology, and in how companies have changed their mode of operation. Technology has been playing an increasingly prevalent role in this digital age, and it is in organizations’ best interests to acknowledge that this change is here to stay. Investing in technology and shifting business models to incorporate tech into day-to-day operations enables businesses to outperform their competitors. I read a recent report by McKinsey on the new digital edge: rethinking strategy for the post-pandemic era, that seems relevant to conducting business in this new, fast-paced digital age.
The report guides companies looking to put technological changes at the fore of their agendas, to incorporate digital technology into their business strategy.
“After seeing how the pandemic had sped up the adoption of digital technologies by several years, we took a closer look at how companies are rethinking the role of digital technology in their overall business strategy and how to conduct business at the quickening pace that’s now needed to operate.”
“Our previous survey showed that across key areas of the business model, companies’ overall adoption of digital technologies had sped up by three to seven years in a span of months. The newest results show that this acceleration is also happening at the level of core business practices: what was considered best-in-class speed for most business practices in 2018 is now slower than average. And at companies with the strongest technology endowments, 2 respondents say they are operating at an even faster pace.”
The pandemic has drastically altered the pace of business, with companies investing in superior technology making huge strides. Along with the advancements, the pandemic has brought new vulnerabilities — mainly, future digital disruptions. Through multiple surveys, the consensus is that all sectors are increasingly vulnerable to these disruptions, with low investments being made in areas most prone to disruption.
“Looking towards 2023, most companies will need to build new digital businesses to stay economically viable”
While top performers still have room to improve, we see the highest-performing companies making bolder investments in technology and thereby in possession of stronger overall capabilities. These top-performers also have the advantage of being significantly ahead of their peers in almost all aspects of their digital investment, amping up the challenge for lagging companies. The top-performers are estimated as likely to have invested in new partnerships, talent, and R&D and to have utilized innovation in tandem with their decision-making. Long-term, they also plan to ‘double down on tech as a differentiator.’ The inclusion of tech-savvy leadership is another significant element in top-performing companies, there has been a shift in looking for tech-savvy employees even in roles that previously had very little to do with technology.
