Chronicle Editor
Judith Phiri, Business Reporter
AS digital technology continues to transform the business landscape, businesses have been urged to reshape their business models and strategies across various industries.
Digital technology encompasses electronic devices, software systems and resources that facilitate the creation, storage and management of data. One significant component of digital technology is information technology, which involves the use of computers for processing information and data.
In an interview, Computer Society of Zimbabwe (CSZ) Bulawayo Chapter chairman, Mr Percy Sibanda said digital technology’s impact has been so profound that it has ushered in the era of a digital economy.
“Digital technology has enabled businesses to undergo digital transformation, which involves the integration of digital tools, processes and technologies into all aspects of an organisation.
“This transformation enhances operational efficiency, agility, and customer-centricity, often leading to the development of new business models and we call upon more businesses to adopt this,” he said.
He said digital technology has ushered in data-driven decision making, which has seen the proliferation of data analytics tools and big data technologies which have allowed businesses to collect, analyse and leverage vast amounts of data.
Mr Sibanda said this has enabled businesses to make more informed and timely decisions, optimise operations and customise products and services.
“The rise of e-commerce and online marketplaces has disrupted traditional retail models. In order to remain sustainable and competitive businesses should increasingly adopt online sales channels, sometimes exclusively, to reach a global customer base. While this shift has necessitated changes in supply chain management, marketing strategies, and customer engagement.”
Mr Sibanda said digital technology has also popularised subscription-based business models across various sectors, including software, media (streaming services) and even manufacturing (subscription boxes).
He said these models provide recurring revenue streams and foster customer loyalty through continuous service delivery and with businesses making use of them for their growth and expansion.
Mr Sibanda said the other key aspects businesses could make use of were the Internet of Things (IoT) which has brought about the fourth industrial revolution (industry 4.0), where physical and digital worlds converge.
“Manufacturing processes are becoming more automated and efficient, leading to smart factories and supply chains that can respond dynamically to changing demands. Businesses now need to fuse advances in artificial intelligence (AI), robotics, the Internet of Things (IoT), Web3, blockchain, 3D printing, genetic engineering, quantum computing, and other technologies,” he added.
He said the digital era has brought about new challenges, including cybersecurity threats and businesses must invest in robust cybersecurity measures to protect their data, systems, and reputation.
Mr Sibanda said digital technology has become the cornerstone of modern business models and it has enabled organisations to innovate, create new revenue streams, and adapt to rapidly changing market dynamics.
However, it also brought about challenges, such as the need for continuous adaptation, cybersecurity concerns and potential disruptions to traditional industries.
“As businesses continue to evolve in this digital era, those that embrace technology strategically are more likely to thrive and remain competitive. In Africa in general and Zimbabwe in particular we need to be cognitive of the maturity of the technology landscape to properly position our business model. If the base technology infrastructure does not support it the model may fail if not properly taken into account,” he said.
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