Over the past two decades, companies have dramatically shifted money and resources towards innovative technology and developing infrastructure in the digital domain. While many businesses believe a website and social media presence is enough to compete in the current digital economy. A recent study of 1,500 small and medium-sized enterprises released by the Business Development Bank of Canada (BDC) proved that the most successful companies continuously invest in the digital space.
The BDC analysis ranked companies according to their digital maturity and growth. The report illustrated a stark difference between languishing and thriving companies. A third of the companies showed declining or stagnated performance in 2021. On the other hand, only 4% of the companies are considered technologically advanced and flourishing. The progressive tech-focused businesses have developed digital business plans and digital ecosystems that include modern websites that optimize efficiency and software and processes to analyze data to ensure they provide digital customers with the value they seek. Even though the technology investment gap seems unbelievable, more and more Canadian companies have allocated resources to technological investments since 2018.
The BDC study presented a clear picture of what types of companies have embraced the digital revolution and which businesses have avoided it. Retail, culture, and information technology are the most digitally apt, while the wholesale trade, transportation, construction, and service industry are currently digitally challenged. BDC chief economist Pierre Cléroux denounced the widespread belief that the digital transition is only profitable for specific types of businesses. He believes the COVID-19 pandemic proved that consumers previously adverse to shopping online changed their ways. Consumer data confirms his belief because the consumer e-commerce activity tripled across Canada during the pandemic
The BDC data provides a straightforward narrative and justification for why Canadian entrepreneurs should get on the digital train. Unfortunately, many businesses remain reluctant to board because of the financial investment and the time it takes the rethink how they do business in an unfamiliar environment. However, companies that do not give significant consideration may miss a critical opportunity to prepare their business for the future. Fortunately, technological advances in software, platforms, and artificial intelligence have made digital change affordable, painless, and profitable. The correct technical consultant can help a company determine a digital strategy to help a business evolve and thrive in the digital economy.
The BDC study illustrates that a significant digital divide separates the businesses in Canada. Organizations that implement digital strategies adapt better to change, grow faster, and have multiple channels to provide their products and services. However, only one company in twenty has spent the time and money to digitize their organization. The digital domain will evolve more quickly as time passes. The companies that persistently invest time and resources to develop with the changes will continue to thrive, while the companies unwilling to get on the digital train will, unfortunately, be left behind.
Please contact Tansley to learn how we can help optimize your company’s digital infrastructure so your business can thrive in the digital domain.
