Why Digitalization Changes Entrepreneurship and the Business World?

By Tigran Ghalumyan

Profound changes in the economy and society through digital technologies – digitalization is a structural change process of a company and one of the most important management tasks of the coming years. Moreover, digitalization should be a top priority for businesses in 2020.

Change is the law of life and those who look only to the past or present are certain to miss the future.

John F. Kennedy
/35th U.S. President/

Introduction

Firstly, the recent decade has witnessed a major trans­formation in how entrepreneurship is practiced and taught. Specifically, digitalization is changing the traditional entrepreneurship models (Swaramarinda, 2018). However, it brings society new challenges related to reducing production and management costs using digital economy platforms, with a radical increase in the efficiency of companies, industries, educational institutions in order to withstand global technological, economic, and social challenges (Kenney & Zysman, 2015). 

According to a 2018 research, 70% of companies owners either have a digitalization strategy in place or are working on one. Moreover, IT digital transformation budgets grew from 2016 to 2017 for 53 percent of survey respondents (Tech Pro Research, 2018).

Benefits and Challenges of Digitalization For Entrepreneurs

In this paragraph, we will underline the top prospects and problems during the digitalization of the business process. Firstly, why digital transformation strategy fails? So, there are different reasons. For instance, there can be resistance from Employees as well as a lack of expertise to do digitization initiatives and a limited budget can cause big challenges for entrepreneurs (Jabil, 2017).

In addition, as for the benefits, there are huge and proven benefits of the digitalization of Entrepreneurship. By adopting and adapting to digital you can improve the efficiency and speed of the working process as well as you can have high customer sanctification and through this high profitability (Digital Marketing Insitute, 2020).

The Future of Work

When it comes to the influence of digitalization on the future of work it is not just about whether there will be jobs available for people or not. Digitalization is shifting the environment of work as well: from where we work, the content of work, to the routines of work, to the way in which we are managed at work. Technology is also changing the way in which employers are looking to organize their production systems and the ways in which employers and would-be workers are looking to connect and contract over jobs: this is increasingly taking place across digital platforms (Stuart, (n.d.)).

Conclusion

To sum up, digital entrepreneurs are being a step ahead of others and they will shape the world after the pandemic. Thus, we want the entrepreneurs in our society to adapt to new circumstances fast and make the life of the people easier. Whether it is to continue business operations or maintain access to essential needs, the digital economy will play an important role in all aspects of our lives. So, in this new reality, the business world should create new innovative solutions in order to make the life of the people easier and fulfill the technological gaps for future crises.

References

Swaramarinda, D. R. (2018). The usefulness of information and communication technology in entrepreneurship subjects. Journal of Entrepreneurship Education, 21(3), 1-10.

Kenney, M., & Zysman, J. (2015, June). Choosing a future in the platform economy: The implications and consequences of digital platforms. In Kauffman Foundation New Entrepreneurial Growth Conference (Vol. 156160).

Tech Pro Research. (2018). Digital transformation research report 2018: Strategy, returns on investment, and challenges. Tech Republic https://www.techrepublic.com/resource-library/whitepapers/digital-transformation-research-report-2018-strategy-returns-on-investment-and-challenges/

Jabil. (2017). Top 5 digital transformation challenges (and how to overcome them). Iotforall. https://www.iotforall.com/top-5-digital-transformation-challenges

Digital Marketing Insitute. (2020). What are the benefits of digital transformation? https://digitalmarketinginstitute.com/blog/what-are-the-benefits-of-digital-transformation

Stuart. (n.d.). Digitalization and the future of work. Leeds University Business School. https://network.business.leeds.ac.uk/digitalisation-and-the-future-of-work/

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