Lecture “Creating value in the digital economy”
On Thursday, May 27, at the Metropol Hotel, an exclusive lecture was held by Mr. Branislav Vujović, the founder of New Frontier Group, on the topic of “Creating value in the digital economy.”
Why is the reason that only companies that adapt their business models to the digital economy will remain relevant for their and new clients, as well as why it is necessary to understand the reasons and ways to adapt existing business models to the emerging trend of the digital revolution, were some of the topics discussed.
Mr. Vujović, through an interactive lecture, introduced the present participants to the development path of digital transformation, which today has become a mandatory part of every business, regardless of sector or industry. It is shown why proper data management is of key importance for business growth. At the lecture, it was emphasized that even over 70% of digital transformations do not bring the expected results, while only 5% of them succeed in achieving more than expected. The reasons for such outcomes are explained by the fact that most business models do not base their operations on values, but only on the desire for profit.
New technologies lead to the democratization of innovation, because in the digital age proactive young people have the opportunity to invent something new, which was previously reserved exclusively for global giants with large R&D budgets.
The consequence of improperly managed business is closely related to the change in the lifespan of the business entities themselves, whose lifespan has been decreasing over the years. Today, the average existence of a certain business is estimated at less than 20 years with a tendency of further decline in the periods ahead. As he stated further, it is precisely the inability to adapt to new trends that can lead to a decline in business and, therefore, financial results.
The bright spot in this market match are innovations that should be based on the uniqueness and value they provide. The product does not necessarily have to be unique, but it needs to be delivered to the target market in a unique way. Business automation, artificial intelligence, improved software, block chain, smart use of mobile technology are tools that should be implemented in modern business. For example, China ended last year with a total GDP of 15,000 billion dollars, while the transfer of funds through mobile applications in that country amounted to 36,000 billion dollars in just one year.
The digital age contributes to the automation of business, which is also explained by the assessment of the value of company assets, which today are in a reverse relationship compared to the earlier period, where 90% of intangible and 10% of tangible assets make up the value of a certain business. Here we talk about patents, brand and other forms of intellectual property. Due to all of the above, only those who take into account what the market imposes on time will manage to maintain their business beyond “20 years”, which is the average today.
