This is a reblog that was written in December 2015 on another site, as I feel it is necessary to reiterate and re-emphasize its importance in the context of today’s economic environment. Trinidad and Tobago is perilously close to an OPEC entity, Venezuela, who are experiencing severe problems as a result of archaic economic systems. Trinidad and Tobago desperately needs to change course as economic prosperity is not dependent on energy.
Against this gloomy backdrop of recessionary trends for oil dependent economies, such as Trinidad and Tobago, companies operating in this low growth, low oil price environment, urgently need to engage in the strategic for both survival and sustainability. Diversification is a real option, but as new opportunities driven by technology arise we are at an inflection point.The good news : there is great potential, prosperity and profitability in this the age of Digitization as anyone can do it given the proper guidance.
The Digital Revolution
Digital startups grew exponentially, established organizations achieved tremendous gains in operational efficiency, and increased their customer engagement sustaining growth and development. Facebook, Twitter, Instagram have all engaged in disruptive innovation in the true sense of the theory,from tiny beginnings to global transformers. Citi Bank realized high returns from digitally engaging customers,Uber has radically changed the service industry and Codelco,a Chilean mining company has achieved tremendous operational efficiency and Asian Paints, one of the largest coating paints company the East has also achieved a sustainable competitive advantage.Household names as Nike and Ceasars are also digital masters. Small business and entrepreneurs can effectively leverage digital strategies and compete effectively in all levels given a cogent well thought out strategy.
The highly regarded McKinsey Global Institute in its report “Digital America: A Tale of Haves and Have Nots, December 2015, states “digitization is changing the dynamics in many industries…companies in manufacturing, energy and other heavy industries are working in digitizing their physical assets. There is an opportunity to reinvent every process with a fresh focus on the customer”. Looking at three major areas : The Internet of Things, online talent platforms, and big data analytics, the report further states that digitization could add up to 2.2 trillion to annual GDP in the US by 2025.
For your company, your core competencies can be decisively enhanced through digitization as Citi Bank and others have demonstrated. Produce new opportunities as customers demand new services.
Surviving the economic setbacks of recession and other shocks is strategic and digitization offer this opportunity. Sound judgement and direction is needed for the transition . The Augmented Consulting Group will provide the strategic response for successfully navigating this pathway.