Digitization And Innovation Of Business

Recently, we have attended many interesting trainings, presentations, and conferences. We want to share with you the most interesting things we have taken away from them and what we consider beneficial for you as well.

High Growth And Productivity

The average economic growth in the world was 2.1% last year. With 3.5% growth, many countries achieved a better result

Many countries have a positive position mainly in low unemployment and long working hours. However, the negative is low labor productivity.

If employees want to have higher salaries, the only option is to increase the productivity of their work. This can be achieved in several ways: streamlining processes and digitizing them, increasing employee performance through the right motivation, and encouraging value creation. Many times it is enough not to reduce the appetite for work of colleagues and subordinates, to leave room for innovation, as well as to praise and express appreciation for good work.

Productivity factors must be implemented already in the educational system, in the digitization of the whole society. This is done by creating efficient processes and promoting the possibility of innovation.

Will Robots Replace Us?

The survey found that 52% of human activities can be replaced by people-free technologies in the coming years. It is the biggest risk and at the same time a challenge for the near future. In developed countries, the cost of human labor is higher and it pays more for companies to invest in digitization than in developing countries.

In the Czech Republic, for example, 1.5 million people will be at risk of digitization within 10 years. The level of middle generation digital knowledge needs to be raised. It is most endangered by digitization.

In the 35 countries that are in the OECD, up to 40% of people are employed in small companies, which is a very high number and a significant strength of the economy.

The State And Its Position In Digitization

In the Czech Republic, up to 40% of people are employed in state administration. At the same time, the digitization of state administration is very problematic. Up to 800 services/processes offered by the state have been defined and each needs to be digitized as soon as possible. Many overlap and could be connected with others. Bureaucracy is often a brake on economic growth.

It is very important that the digitalization of society makes sense in the first place, and then we can save costs and focus on efficiency. This is related to tenders, where the choice of innovation and digital solutions oriented towards the lowest price is counterproductive. The state is motivated not to make a mistake and not to find the best solutions.

The state has a monopoly on violence (police, army, prosecutor’s office, courts) and always earns its taxes. The high risk of business and innovation is regulation by the state. Companies are responding to this by saying that the mobility of companies within the business has become a trend. Companies have no problem moving to another state for better conditions, or at least to use services and employees in other states. For example, the company’s headquarters are in Dublin and the virtual secretaries are in Warsaw.

Digitization is unstoppable and is riding a wave of new innovations. Today, they move the world, and in recent years, a large number of professions have emerged that were not 10 years ago. This trend will continue and we must be prepared for it.

Also Read: Tips On How To Implement Your Business Idea