Drivers of Customer Digitization

The past year, the impact of Technology on many of our lives has been immense. The pandemic has created urgencies for partnerships around the government, health officials, businesses and technology providers. Most of us realize that the world will never return to a pre-Covid state; the degrees of change might differ, but the ball is set rolling and imagining flying cars and robot managed spaces is becoming easier! And imagining a rural farmer manage his farm with his phone too! The pandemic necessitated...

• Tracking and Social Distancing : Governments / health officials had to dig in with innovations to boost the economy; consider https://connectatchangi.sg/
• Online Education : Has set up disruption and exposed the digital divide amongst students; more efficient models are needed
• WFH stretched companies and employees to adopt new constructs; possibly with big impacts to business travel and office spaces
• Non Site engagements led Businesses to reinvent for Remote Engagement
• Gaming and Celebrations with video connections
• Deliveries and Ecommerce has become integral to our lives

For all the pain caused by the drop in economic growth rates, I wonder about the gains in productivity/efficiencies that will accrue due to the step jump in technology awareness and adoption. They will show up over the next decade. Technology is certainly helping us tide over these times but many amongst us also realize the shortcomings of what was on offer. Fortunately this is leading to huge energies on digital plays...

• Earning loyalty from customers with non site engagements is much tougher; leading to big plays in Customer Experience especially with Mobile. Delivering Mobile Experiences is tough and have disappointing install rates but Hey, the start has been made
• Ecommerce & Delivery businesses were led to adopt varied engagement models with much success; NTUC, the largest retailer in Singapore has seen spikes with a multi-channel one-consumer view with their Mobile App - online ordering, in store shopping and deliver to home on one App
• Most Companies are Rethinking Business & Customer Digitization with Cloud
• Industries like Hospitality need to re-invent their inventories and Business Models
• How does one deliver health and education digitally in India, where smartphone penetration is less than 50%; many models are being trialed

It is fair to say that Digitization and Platform plays are on the cusp of transformationally re-ordering societies and consumers. It is ironically also a time when deep inquiries surround the role of technology and its impact. There is no denying that the right models need to be found; models that are inclusive and scalable across ecosystems. Technology can make a difference to a child with no computer/smartphone; can create health solutions future-proofing us from pandemics; can provide basic ecosystems for the struggling farmer for a better return. What indeed is the speediest and most cost effective way to meaningfully deliver basic services like health, education, entertainment and banking? And one wonders if India is best positioned to take the lead here. I think yes, it is...

• National Digital Platforms have readied the backbone : Over the past decade, platforms like Identity with Aadhar, Payments with UPI (an open , interoperable stack that has allowed digital payments to grow rapidly) and now NDHM for Health
• The competitive landscape in India has forced innovation and differentiated plays; and most of all speed to market; today no fewer than 4 to 5 Retail platforms; 4 Health platforms and umpteen Educational platforms are being conceived. Deals are being struck across digital ecosystems aggregating and owning larger bits of the consumer
• Impactful rural businesses - inclusive agriculture plays, microfinance and distribution have been designed over decades; novel technology plays are riding on them today
• Mobile Adoption rates are high, like similar economies(Indonesia, Brazil,..)
• Smartphones: Today the numbers are around ~500M and with a < $50 phone on the works by summer, this could reach ~750M by the year end. Couple this with access to ridiculously cheap data, Digitization could meaningfully reach the most disadvantaged

India has the advantage of learnings from other countries/ecosystems on the impact/role of technology; which can help guardrail policies and strategies. India also has the technology knowledge base and skill sets to deliver. The market structure in India both in terms of Consumer and Distribution Ecosystems is one of the most complex; and therein lies the challenge and I daresay, the opportunity. As many startups are increasingly proving; this complexity and uniqueness can be India’s advantage. You design for India and you are really designing for a large part of the global population who live in similar ecosystems. And the times when the rural farmer (Indian Context) will be able to imagine flying cars are not far!! Such is the promise of a re-ordered society with Consumer Digitization.