How to Adapt Your Business For the New Digital Economy

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September 3, 2021 Business

As the world increasingly relies on the digital sphere for everything from financial transactions to socializing, it has never been so important for you to adapt your business to cope with the growing digital economy.

Of course, before you can make any kind of commercial decisions, you will need to understand how the digital economy is evolving and what it means for your specific industry and business model.

Put simply, almost every element of a company is now online – from advertising products and services online, selling those items, to storing sensitive data, communicating with employees and collaborating on projects. This is the current reality for the majority of businesses, and is only set to grow in the coming years.

For example, the rise of non-fungible tokens (or NFTs for short) has the potential to transform the business models of many industries – from record labels to book shops – and would certainly impact almost all businesses, both positively and negatively. This is because NFTs and crypto-currencies put power in the hands of individual creators, producers and consumers, rather than commercial institutions.

Understanding how the digital economy will evolve is crucial to the future health and prosperity of your company. If you can spot emerging trends early enough, you will be able to adapt your business model and even profit off of it.

Furthermore, as the digital economy continues to grow and businesses become increasingly reliant on the internet, other considerations like cyber security and employment strategies will inevitably crop up. It is key to the success of you and your company that you bear these aspects in mind going forward.

This is how to adapt your business for the new digital economy:

You will need to keep your data protected at all times

One of the most crucial factors to understand when it comes to adapting to the digital economy is cyber security. Keeping your sensitive data and code safe is of paramount importance, but it has never been easier to fall victim to cyber scams and phishing.

This is why you should consider using a code security firm like Spectral, which can help keep your data safe at all times, especially if you rely on cloud computing for work projects and data storage.

Of course, there are other, more basic ways in which you can keep yourself protected from cyber attacks. Ignorance is certainly not bliss when it comes to online scams, so educate yourself and your colleagues on how to stay safe online and which scams can harm your company.

Ensure you have a strong tech team at your disposal

It might sound obvious, but as your business starts to become increasingly invested in the digital economy, you will want to have a strong tech team at your disposal, in order to make the most of the opportunities that come your way, and adapt your business model if necessary.

For example, if you are used to dealing with customers in person through an office or showroom, but quickly need to shift over to an app-based service, you do not want to waste time, money and your reputation trying to source a talented tech team whom you can rely on.

As with anything in business, the most successful brands are those who spot potential obstacles in advance and actually turn them into advantages, rather than hurdles. Build a strong tech department (if appropriate), and you will be able to thrive in the new digital economy far more easily.

Take time to understand how you can use the digital economy

Following on from the previous point, change can mean oblivion for certain business models, but it also breeds opportunity. As consumers migrate online, many reliable enterprises have either gone bankrupt or rued the rise of the internet – not least shopping malls.

There is no point shaking your fist at the sky, though, because there is every chance that you can find a new digital edge. There are countless new industries springing up everyday, with the chance for a single brand to dominate – if it satisfies demands for a new product or service that was previously unthinkable.

Throughout history, there have been numerous examples of individuals and brands that have the vision to adapt to changing circumstances, and make it work for them. This is the mindset that you should adopt for yourself as the digital economy continues to grow.

Tech is changing the employment landscape

Another consideration relating to the digital economy is how it is changing employment. It is no secret that freelancing is on the rise, and as millennials and now Gen Z join the workforce, the idea of dedicating an entire career to one company or industry seems anathema to a generation savvy to the unlimited opportunities presented by online platforms.

This means that more and more people are starting their own businesses, working from home or becoming digital nomads. You should bear this in mind when it comes to your enterprise. Rather than seek out whole teams of full time staff, you could seek talented freelancers instead.

Sticking with the idea of discovering opportunities within obstacles, there are many benefits to this approach. Freelancers will cost you less money than full time employees, cause you fewer headaches and potentially do a better job if they are experts in particular fields.

You could even adapt your company to make it enticing to freelancers and individuals who thrive on freedom and a constantly changing work environment. This will make it easier for you to attract talented staff and boost your brand’s reputation.

If you can adapt to these changes, you can leapfrog your competitors

The rise of the digital economy will likely act as a reset on many industries, which will send alarm bells ringing in the offices of established brands, but will offer a fantastic opportunity for smaller businesses to make up ground in previously monopolized marketplaces.

As the economy becomes increasingly reliant on online communities, social tokens, NFTs and, potentially, cryptocurrencies to buy and sell products, many businesses will find new ways of appealing to customers and transforming their services.

It is a golden opportunity to leapfrog your competitors and steal a march on new technological innovations going forward.