Mahtab Uddin Ahmed, Telecom Expert & Chairman, DSFM Securities Ltd.
Last year, I had the opportunity of attending a workshop on IR 4.0, where the participants included some senior Government officials from multiple ministries and institutions. From their deliberation, I concluded that the key elements of IR 4.0 are factors like connecting through zoom/google meet, online approval of documents (nothi), and telecom connectivity. Listening to them took me back to 1993 when I joined Unilever, a time when all accounts & finance function personnel were provided with a Desktop for the first time. But to my bewilderment, no one tried to use the desktop and preferred to use the Printing Calculator instead. I got my answer when I heard a conversation between the Finance Director (FD) and the Business System Manager (BSM). The FD was challenging the BSM, saying what kind of computer you have brought which can’t even do the calculations properly! BSM was struggling to explain that the problem was more with the people and not with the computer. And you can imagine how the discussion was not going anywhere. A few weeks later, I got to witness a similar discussion between the two once again. But this time, the BSM proudly presented a book to the FD, declaring with a smile that it would surely help him learn about computers. I peered over his shoulder to check the title of the book, which to my amusement, was “Computer for Idiots”. The facial reaction of the FD leaves little for the imagination! After 29 years, sitting at the workshop, I wished I could present all the speakers a book titled “IR 4.0 for Idiots”!
Ever since I got into the consultancy business with a focus on Digital Transformation, my observation while meeting top officials/owners is that everyone acknowledges the need for digital transformation, but only a few have adequate knowledge of it. They understand what’s happening in the neighbouring or developing countries, but they are unable to connect the transformation with the business goal. Moreover, there is little clarity as to how to go about it. Some have already invested on various tools without really fixing the transformation goal or organization culture or resource upskill.
In general, digital transformation requires a customer-driven, digital-first approach to all aspects of a business operation, from its growth models to customer touchpoints to processes and operations. It uses automation, AI, Blockchain, hybrid cloud, analytical tools and other digital platforms to leverage data and intelligent workflows, faster and smarter decision-making and real-time response to market disruptions. Ultimately, it changes customer expectations and creates new growth opportunities. Except for a few multinationals, most organisations in the corporate sector in Bangladesh are still far from adapting to process automation with the view to create a paperless office and data-based performance culture. Many banks and prominent private business houses don’t even have that.
While global progressive companies have undertaken a digital transformation in response to competitive threats or market shifts, it has never been about one-time tasks. According to MIT Sloan Management Review, “Digital Transformation is better thought of as continual adaptation to a constantly changing environment.” The goal should be to build both a technical and a human capacity to evolve and respond in the best possible way to ever-changing consumer expectations, industry innovations, local events, market conditions etc. In my assessment, organisations in Bangladesh are waiting for a crisis or competitive pressure to wake up and drive transformation. It is important for leaders to understand that any transformation works better when in good shape and not in crisis. Hence, it is better to plan such a transformation well ahead of time.
No business should be comfortable about its business in today’s rapid pace of innovation. During the 80’s, the media was dominated by TV channels and printed newspapers. In the 90’s, it was the VCR and in the late, 90’s it was cable TV and, then DTH (Akash, TataSky) started gaining popularity globally. In the new millennium, OTT (Netflix, Disney etc.) threatened all the past technologies. While most TV Channels & DTH players could see the changes coming, some of them were in denial mode. Similarly, our traditional banking operations are soon going to be challenged by various Fintech operations if they are not ready for competitive threats.
Digital transformation is mainly tangible in four key areas – Business Model Transformation, Process Transformation, Domain Transformation and Cultural Transformation. The last one acts as the key enabler to the rest.
The key drivers of digital transformation include consumers’ changing behaviour or needs, connectivity, social media, IoT, cloud computing, AR/VR etc. and at the top, the analytic engine to assist management in decision-making. Traditional products and services are increasingly being converted into digital products. For example, hard currency is being converted into digital currency, banking & insurance products are being sold as digital products, games/toys are being converted to digital games etc.
Industry 4.0 technologies that are being used in digital transformation are positively affecting the productivity of a domestic economy. Economies that are actively engaging in such technologies show faster growth in the manufacturing and non-manufacturing value chain. More importantly, such boosts in productivity are associated with growth in employment. Early adaptation of it will take away the fear of losing jobs due to a high level of automation or digital adaptation.
In Bangladesh’s context, the lead should be taken by the private sector while the Government may provide the infrastructure support like connectivity, Hitech Parks, digitalisation of services etc. The private sector should be having a dedicated team to drive the digital agenda under the direct supervision of the leadership team. In most cases, the CEOs in Bangladesh are busy troubleshooting problems in hand and immediate target achievements as they understand any digital transformation would not generate any results overnight. Hence, the leader’s clarity on the purpose of digital transformation is extremely crucial.
Digital Transformation is an opportunity for business leaders to take their businesses to a new height. The sooner the leaders adapt to it with a proper understanding, the better our businesses will be able to reap its benefits to ensure sustainability; or else, we will be overrun by other companies or new innovations and lose the early bird advantage!
To sustain the growth driven by our private sector economy, there is no doubt that Bangladesh needs to shift to a digital economy. The process will be expedited if all the business units start the digital transformation with a specific focus on its industry and, at the same time, has the capability to keep pace with the constant changes in the digital space. Our collective knowledge of the need will ensure another decade of excellent growth record for Bangladesh.