Digital Darwinism: why companies must step up to digital transformation to survive
We witness a mass extinction. Only the ones who adapt to their environment will survive. No, we are not talking about birds on the Galapagos Islands – we are talking about companies everywhere! The laws of nature equally apply to the business world: digitalization rapidly changes technology and society and forces companies to adapt fast enough – or die. Corresponding to Darwin’s principle of natural selection, we call this phenomenon Digital Darwinism.
Digital Darwinism is a threat for the “business as usual”. In fact, only 71 companies remain today from the original 1955 Fortune 500 list. The one thing that the failed companies have in common: a missing or miscarried digital strategy. No threat, you say, as most modern companies already went digital? So far so good, but the crux of the matter is the very fast pace of digital change: it is not some innovation now and then that companies need to react to. It is digital disruption that completely revolutionizes business models and consumer expectations – and it won’t end. It is possible because technology is now approachable by anyone with an idea to do something different or better. This constant innovation leads to disruption: everything can change and everything is changing.
Digital transformation is your lifeboat
But how can your company keep up with digital disruption? The answer seems clear: Digital Transformation. This is the only way for a company to adapt to the new conditions and to stay flexible for future changes. Digital transformation is all about the customer experience but it requires focused changes both externally, that is customer related, and internally, that is processes, technology, collaboration and mindset inside the company. It’s true, the journey of Digital Transformation is not an easy one, but it is so much more worth it! We are already seeing companies with greater digital capabilities that were able to convert sales at a rate 2.5 times greater than companies with a lower digital level did.
Startups and companies – the perfect symbiosis to survive Digital Darwinism
Companies must realize that Digital Darwinism is happening now and they are in danger to be outpaced by their competitors. Face the natural selection in which companies must either possess and invest in specific traits to enable adaption or die out. A great way to get the fresh spirit of the new digitalized world right into your house is the collaboration with innovative startups! Digital startups might already provide the solutions you just need to stay competitive and be sustainable. So why not partner up with the next generation? Here is how you can benefit equally from this collaboration.