A survey by PWC reveals that African business owners are optimistic that their revenues will grow in the next 12 months. Moreover, 81% of the continent’s business owners believe that digitization is relevant for the future. How can private business owners partake the digitization wave?
Bridging the skills gap
Africa posits a higher level of awareness on the essential eight technologies and a healthy optimism on the relevance of tech in the future. Still, local companies lack the right talent to embrace digital transformation. “36% of African private business leaders lack the right in-house talent for digital transformation” reads the survey.
The survey suggests that larger companies should consider collaborating with startups to satisfy their short term hiring needs. However, the study notes that only 48% of African businesses were willing to partner with startups to bridge the gap.
Driving digital transformation from the top
African businesses might be in a better position to benefit from digitization if the transformation starts at the top. Apart from trust, a critical factor when choosing external directors in Africa, digital nativity should play a crucial role in earning someone a ticket for a board position.
Similarly, company boards need to have a digital native in line of board succession. Such will promote the longevity of the company in a technology-driven continent. At the same time, board members should be well suited to address the next level of digital change, including emerging technologies such as AI and IoT.
Funding digitization
Small and medium businesses often face financial shortfalls that limit their capacity to invest in digitization. The deficiencies restrict their ability to innovate as 68% of companies depend on internal cash flows to fund digitization. Alternatively, African business leaders can consider options like private equity or venture capital to provide funding. Moreover, such ventures would not only offer cash but also supply management expertise to drive digitization.
In conclusion, as competition on price continues to pay fewer dividends, African businesses should leverage technology to drive growth. Business leaders have the opportunity to reap the benefits of digitization if they change their business models and strategic competitions to embrace the digital wave.
