All changes in the world economy cause the emergence of the digital economy. Prospecting the vast opportunity, many businesses compete to enter this field.
At least four changes have to be taken into account by a corporation before diving into the digital economy. Those are the cultural & social changes among the world citizens on a macro scale, changes in the competitive landscape in the industry because of the rise of start-ups and digital applications, changes of conventional business to digital business in terms of the corporation, and also the needs of development for new skill sets on each individual.
“New competencies, such as analytical thinking & innovation, complex problem solving, and stress-tolerant, and also technical competencies like technology design and programming, are highly needed in this digital era,” said Professor Reza Ashari Nasution in the Professor Scientific Oration of ITB on Saturday (19/10/2022) at ITB west hall.
Professor Reza brought digital readiness as his main topic for the speech. He believed that the implication of various changes in almost every aspect ends with a new term called “Digital Disruption”. Companies cannot absolutely respond to this in such an ordinary way. This Alumni of the University of Twente connected the digital disruption and the organization’s responses by introducing the Resource Dependence Theory, explaining that an organization must be affected by its surroundings.
“Companies must do the digital transformation holistically. Moreover, digital transformation is not merely a matter of using digital technology, but also about the adoption of the digital thinking mindset in an organization that later on will shape the company in determining their competing strategy,” said Prof Reza explaining the digital transformation.
After understanding the principle of digital transformation and all needs to keep surviving, companies can decide on the digital business strategy by thinking about five things, which are digital value proposition, digital business model, digital capability, digital business architecture, digital ecosystem design, and digital transformation. All of them focus on how a company can contribute and be the solution in this digital era.
Professor Reza, who is focused on Business Strategy & Marketing group expertise in SBM ITB, also told a surprising fact that 66% – 84% of digital transformations failed due to the lack of Digital Readiness. Even so, he and his team will not be silent on this. In the next few months, Professor Reza already has a plan for testing the model of Action Readiness in the field of digital, analyzing the dynamics of the digital business ecosystem, and also learning how a company configures all of its resources in a business strategy.
