As more businesses go online, the future is shifting towards a digitally driven economy.
For more than a year, the Covid-19 pandemic has accelerated technological change.
Business leaders will need to make decisive strategic decisions that can make or break a business in a rapidly changing digital environment.
They also have a huge responsibility on their shoulders to ensure that their businesses thrive in a space where digital technologies are essential to their brand.
In these digital spaces, they can capture new customers and also increase revenue growth.
Businesses have to adapt to the new way of doing things and create an online presence or perish.
“Kenya’s digital economy is booming. Covid-19 has accelerated growth since Kenyans, especially young people, have now recognized the potential to make a living on digital platforms, ”noted Dr Ehud Gachugu, Project Director, Ajira Digital and Employment Program in the part of the Kenya Private Sector Alliance.
Business explores digital trends that can shape the direction of your business by examining key areas such as e-commerce, logistics and internet penetration.
Businesses in the online marketplace are expected to generate revenues of 164 billion shillings ($ 2,342 million) by 2021.
And over the next four years, Kenya is expected to earn 254 billion shillings ($ 1,509 million) from e-commerce due to the adoption of the technology, ICT Cabinet Secretary Joe Mucheru recently said.
However, the sector continues to face challenges.
90% of ecommerce businesses fail within the first 120 days, according to an American think tank.
According to Platform Livelihoods, a digital experiences report, those with the digital skills to survive in the online marketplace are successful, but still struggle to measure ROI with online marketing. The nascent industry is still viewed with skepticism by many.
“Most salespeople use online selling to stay engaged and productive while seeking alternative employment, while others use it as additional income with the potential for expansion,” the report says.
During the pandemic, logistics and warehousing companies became some of the biggest ‘winners’.
As businesses move quickly online, those that leverage logistics networks to deliver goods and services to these businesses can only reap big rewards.
As a recently released report, dubbed the Livelihoods Platform, notes that delivering packages to Kenya has always been a risky, fragmented and frustrating process for customers. Delivery services from digital or app-based platforms including Sendy, Gobeba and Pick-up Mtaani have been developed to mitigate some of these risks, track drivers and ensure timely deliveries.
“The platforms function as aggregators, facilitating supply and demand by ensuring the availability of drivers, making them attractive to customers,” said the report which explores the quality of the digital experiences of young Kenyans in the logistics sectors. , electronic commerce, agriculture and creation.
The report notes, however, that much remains to be done to ensure “sustainable, dignified and fulfilling livelihoods for its drivers, especially with regard to social protection, benefits and legitimate policies for drivers”.