- Digital switchover: Successful businesses do not just use digital, they become digital.
- African youth face a gloomy future if not empowered through systems riding on digital economy
- There is a need for increased political will for Africa to tap into power of digital shift in accelerating growth
The concept “digital transformation” has gained popularity in the business sector, but what does it actually mean? Successful companies embrace digital technology and transform into it.
Artificial Intelligence (AI) is no longer a weird sci-fi movie but a real game change for companies and entire countries. “Today, all digital transformations are AI transformations, too” so if your company is talking about digital transformation, it should also be talking AI.
It should be noted that digital transformation is not just buying a few new computers or installing a program so persons in a company can communicate, share information, and exchange data, etc, No. Digital transformation requires a whole change of philosophy and company ethos.
What digital transformation entails
Digital transformation means rewiring how an organization operates with the single goal of building a competitive advantage over the competition. Digital transformation should make a company more efficient and their services improve customer at all touch points.
As Kate Smaje and Rodney Zemmel put it in their popular article: Digital transformation on the CEO agenda; “Digital transformation is critical for organizations to not only compete but survive.”
At this point in time and more so in the near future, it is either you go digital or you go extinct. Going digital is no longer optional or a luxury, it is a necessity. It is also not a short-term phase that will be replaced, on the contrary, digital transformation represents the very roots of the future.
“That’s because technology is not only becoming further integrated with the business but also constantly evolving,” comments
That being the case, digital transformation is not just for companies but for governments as well. In countries where governments are investing in digital transformation, public services are flawless, cost-effective, and easy to access, use, and monitor.
Thanks to digital transformation, governments can better monitor resources, increase revenue collection, and stamp out corruption.
It should also be noted that, given the growing importance of AI in various aspects of business, most all digital transformations are or should also be an AI transformation. Just to give you a glimpse, AI is increasingly becoming the leader in generating business insights that guide everyday business decisions. So where is Africa in this future of digital transformation and AI?
Also Read: Artificial Intelligence boost to Africa’s infrastructural development
Africa’s slow digital transformation
Once again Africa is seemingly in trouble, left behind by technology and thus left behind in development. By the way, when we say left behind in development we mean, poor social welfare, low household incomes, and poor living conditions.
“At the current, incremental pace of economic and social advancement, too many of Africa’s expanding youth population will be denied the opportunity to live up to their potential,” reads a World Banl comment in a piece discussing the Bank’s “Digital Economy Initiative for Africa (DE4A).”
According to the World Bank tech experts, it is digital transformation that can save Africa’s youth from the almost sure doom that their parents suffered.
Going digital offers African youth a chance to disrupt the cycle of poverty. Through digital transformation, Africa can unlock new trajectories of development.
As the World Bank puts it, Africa’s digital transformation can ‘offer new pathways for rapid economic growth, innovation, job creation and access to services which would have been unimaginable only a decade ago.’
However, the reality on the ground is that there is a growing digital divide and increased cyber risks in Africa. This applies to businesses and governments alike, Africa is been left behind again.
For example, access to the internet remains unbalanced across the continent. Whereas internet services have penetrated the remotest parts of Africa, however, the cost of data simply remains unaffordable for the common African household.
Are governments to blame?
Without internet, and I mean, reliable and affordable internet, African youth do not get the online time they need to learn and adopt significant skills. Most African youth only have enough data for short bouts of social media chatting and sharing.
Then there is the matter of funding for digital transformation. The World Bank points out that; “Digital startups struggle to attract funding and traditional businesses are only slowly adopting digital technologies and platforms to boost productivity and sales.”
So digitized start-ups are not getting the funding to deploy their digital solutions and the existing businesses are moving too slowly in making the needed digital transformation.
Combine the two aspects and what you have is a continent lagging behind in a world that is moving at light speed. It is not only businesses that are lagging behind, it is entire governments.
“Few African governments are investing strategically and systematically in developing digital infrastructure, services, skills, and entrepreneurship,” reads the report in part.
African businesses must utilize digitally-centered business models to be able to grow. It is these digital centers that will connect them with millions of customers across the world and very cost-effective rates.
Further, digital experts advise that African governments need to adopt more effective means of delivering services and interacting with citizens, the answer is digital transformation.
Rigid economies risk isolation
“Africa has the opportunity to harness the digital economy as a driver of growth and innovation, but if it fails to bridge the digital divide its economies risk isolation and stagnation,” warns the World Bank.
It is no longer a matter of speculation, if African youth are to become tomorrow’s innovators, entrepreneurs, and leaders, they need to be empowered with the digital skills and access to technology essential to survive in this digitized global economy.
African governments must prioritize digitizing their own systems and methodologies of operations. The governments of Africa must also adopt digital platforms as the key communication points with citizens. Finally, African leaders must have the political will to invest the needed sums for African youth to access affordable internet and technology if the continent is to enjoy a meaningful and timely digital transformation.
As the World Bank asserts, “…African governments should prioritize policies and investments that increase internet coverage, foster productive internet use, and enhance skills, jobs, and earnings.”
Also Read: How Africa’s economy will transform this decade