Why Your Digital Future Depends On The Diversity Of Today’s Business Model

Before pandemic, many of us working for medium to large size companies felt like we were kind of on top of the world. Though experts have been talking to us about changing world order and inviting us to understand the common implications of globalization, digitalization and democratization, we felt what we had was just enough. Then, reality struck and especially those in Fortune 500 started losing shares, interests, employees in a blink of an eye while newcomers and inventors started gaining ground rapidly. According to Brian Chesky, CEO of AirBnB as an example, their business lost 80% of revenue generation over a course of eight weeks in a year while the total global video game market rose by 52% and the global robotics market seeing double digit growth for the first time in history.

To stay competitive, the companies are under pressure to significantly reduce labor costs while expanding consumer reach, yet there is very little focus on diversity beyond gender metrics and on human elements as part of embracing broader change dynamics.

To name a few examples… Historically in studying medicine, there were more women participating in clinical trials than men until the situation was reversed in the middle of last century. Probably due to endocrinology, scientist started wondering whether hormonal cycles may disrupt vast clinical studies and gradually started excluding women. Interestingly with covid-19 vaccinations, as an example, in Canada, UK and USA, it is reported that women had more side effects from the vaccinations than men. Similarly, when in 2014 Apple released its self-tracking health app with much flourish, it has completely overlooked the needs of women and had to take a whole year to correct course and update its applications’ functionalities. Another industry where there has been lack of inclusion is in consumer goods. Sale and resale platforms have been blooming over the years and today, it is expected the resale industry will make 27% of fashion market share by 2023; yet, once again, the solutions are vastly geared towards women.

This is all in changing now.

The effects of the pandemic – especially limitations on physical meetings and travel are spurring a search by enterprises for more authentic, cohesive, and interactive remote and hybrid work experiences. In a world, where trading platforms are discovering there is more to the consumer need such as selling financial data through subscriptions, working remotely on holiday is becoming common, many organizations are needing to rethink their business model and capitalize on finding new value differentiators. Majority of organizations are looking to reshape the work experience through more immersive forms of team collaboration, emergence of new digital platforms such as metaverse, offering AI-enabled services and connection, gamified technologies for learning and skills acquisition. Increased digitalization is influencing various business activities including companies’ business models by enabling various new forms of cooperation and connection. At the same time, the studies show that, whilst digitalization is generally considered to be important, the value proposition itself and also the diverse position in the value network determine the perceived available options for innovation by digitalization. Moreover, the organizational capacities and employee competences continue to be a future challenge.

So, what can organizations do?

Increase focus on the diversity of human aspect and capitalize on innovative experiences. While essential, a diverse workplace alone is not the full story. Below are some key questions CEOs and CHROs ought to be asking themselves:

– What are the intended and unintended consequences of digitalization on diversity in my industry, culture and public policy?

– How does a new, perhaps unpopular heterogeneous population use or can use the new private and public services we offer?

– How does digitalization change the conditions of our value when it comes to discovery, selection, participation, and the use of digital tools and services?

– How can availability of big data analysis shape our choices?

– How can a possible digital innovation in business models and distribution channels influence the quality of our culture and the diversity of the content being offered?

It is human nature that with authority, we become attached to power. It is normal to think we are in a position of leadership to drive answers top down. It is equally important to be reminded breaking into new categories require inclusion, to actively seek diversity of thoughts, experiences and voices.

Think internet, which wasn’t built by a few select bosses. It was rather built by 300,000 people, many of whom may have never met each other. Not to mention that very protocol/technology continue to work for the benefit of whole without a control from any centrally organising force. Yet, it is touching every industry, every individual while shaping the way our communities organize itself going forward.

As Václav Havel once said the habit of seeing ourselves as masters of the universe who can do whatever occurs to us is long gone. If we are serious about reinvention of experience, we must embrace the diversity of today’s models. “We must discover a new respect for what transcends us: for the universe, for the earth, for nature, for life, and for reality. Our respect for other people, for other nations and for other cultures, can only grow from a humble respect for the cosmic order and from an awareness that we are a part of it, that we share in it and that nothing of what we do is lost, but rather becomes part of the eternal memory of being, where it is judged.”