Spike in digital sales ≠ Validation of digital capabilities
Since the mid-2020, we have witnessed a spike in digital sales for businesses across the board. Many business leaders took that as a validation of their digital capabilities. This may be true to some extent, but a lot of businesses are now realising that was not the case.
In reality, people were forced to flock to digital channels due to pandemic restrictions on mobility. With the restrictions easing and people’s acceptance of the reality (co-existing with COVID), they are going back to the non-digital ways or hybrid way of doing things.
Businesses that were cognizant of this reality and paid attention to strengthening their digital capabilities, along with rethinking their business strategies have been able to effectively manage the transition — with minimal impact on their revenues.
The key learning here is that it is critical to introspect the reason for the success of a business vertical or the entire business as such. This becomes more critical if you are running a small business or a startup. We all have witnessed individuals taking too much credit for the success that is followed by the downfall of their business.
Some questions to ponder on:
- Which are the critical variables at play from your organisation capabilities perspective? eg: a key team member who is responsible for the traction.
- Who are the new entrants in your space? How are they doing vis-a-vis your capabilities?
- Are you witnessing a shrink in your margins?
- Are you riding the wave/trend? eg: the rise of Design Thinking in the past few years or the dot-com boom of the past.
Are there any more questions that you can think of? Join the discussion here.
~ Sajid
If you have liked this post, do show your appreciation by liking it 👏 and sharing it ✉️ with your network.
