How Digital Ecosystems Have Redefined Corporate Landscapes
Digital ecosystems are a set of tools that software providers offer to businesses. These sets of tools can communicate with each other and can be accessed from a single interface. This lets users perform tasks fast and without having to switch platforms.
As digitalization continues to grow in the business world, digital ecosystems are quickly reshaping the way businesses work.
From capturing leads to closing deals, businesses that work with software providers have proven to have an edge over those that rely on traditional work processes. They have been seen as fast, reliable, and can give better services than companies that refuse to adopt technology.
In fact, companies that orchestrated digitally connected ecosystems were reported to have a revenue growth approximately 27% higher than the average for their industries. Their profit margins were also 20% above the average for their industries.
Redefining the US Health Industry
In the US, the adoption of digital health tech by companies like Pfizer, Moderna, and Johnson & Johnson resulted in the rapid discovery of drugs to combat new COVID-19 strains (using artificial intelligence). Moreover, the positive consumer response to digital ecosystems has led companies to adopt them fast.
In August 2020, telehealth adoption rates by American adults increased to 36% (from the pre-pandemic rate of 11%). This indicates the willingness of the consumer market to engage businesses through their online channels as these benefit them too.
Online channels such as telehealth are highly accessible and safe— unlike going to clinics or hospitals for a physical examination, especially when their illness doesn’t require serious medical attention.
There are also factors that fuel the adoption of digital ecosystems in the healthcare industry such as lower costs, accessibility for customers, and the renewed focus on positive patient outcomes.
Transforming the Consumer Goods Sector
Some companies make decisions based on estimates. Others on data. And those that lean towards the latter often see themselves in favorable positions.
One of these companies is The Honest Company, a consumer goods company that sells beauty and baby products. It’s a company founded by actress Jessica Alba and was valued at nearly $1 billion as of October 2017. And when it comes to company growth, to Alba, it’s all about data.
“I love facts and data,” Alba told People (magazine). “So whenever there’s a naysayer with a laundry list of why everything shouldn’t happen, I love asking questions. ‘Oh really? Why couldn’t this work?’ And then you collect all the data that you need to come in and hit them over the head with it.”
Data has been essential in pivoting companies for growth, especially when the market is unstable and consumer behavior is unpredictable.
What digital ecosystems do is allow businesses to streamline the collection of data about their customers. This lets them spot consumer trends and changes in purchasing habits.
When companies are vigilant enough, they can reshape their business model to take advantage of new opportunities, as well as mitigate the risks emerging from an evolving market.
Empowering startups and small businesses
Successful startups are usually from humble beginnings. With enough determination and luck, many have grown into becoming unicorns that they are today.
But some companies don’t just rely on themselves nor on the vicissitudes of the market. They rely on the old adage “the customer is always right,” that they always make sure to collect customer feedback whenever they can.
Style Theory, a Singapore-based fashion rental subscription platform, has now grown into a multimillion-dollar business because of a not-so-hidden secret— building a minimum viable product (MVP) first, testing, and iterating quickly in response to customer feedback.
The co-founders of Style Theory, Chris Halim and Raena Lim. Photo: CNBC
“The best way to launch anything is always do it simple with minimal scope, get it to market asap, then get customers’ feedback,” said co-founder Raena Lim.
“Based on customers’ feedback, you can then iterate and make it better. I think that’s a much better way to build something that customers will love,” she continued.
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