Adaptation is at the base of survival. The biological rule of survival does not only apply to living organisms but all aspects of life.
This is why new and less experienced younger people are constantly replacing experienced workers. They got too comfortable with what they knew and never bothered updating their knowledge. Their refusal to adapt to the updates in their field made them obsolete.
The same thing happens to companies. Companies and brands fail to survive when they refuse to adapt to the ever-transforming industry.
A company becomes obsolete digitally when they fail to adapt their mode of operation by the development in the digital world.
A company becomes digitally obsolete when they fail to keep up with the wave of digital transformation.
There are many examples of companies who have had their shares on the market value go so low. Other more unfortunate companies have blinked out.
One of these companies is Blockbuster. Although Blockbuster successfully moved from VHS to DVD, they failed to move with the digital times rapidly.
When Netflix came to the market offering videos on your phone, the idea of a video rental went out the window. Blockbuster was unable to adapt to these changes and quickly went under.
The same thing happened to Motorola. From car radios to the first-ever mobile phone, Motorola was on a roll as they dominated the mobile phone market. However, when other brands like LG and iPhone came up with phones that could access the internet and send emails, they became obsolete.
What Happens to a Digitally Obsolete Company?
Companies become digitally obsolete when their employees are digitally obsolete. With employees who can't read the writing on the digital wall, there would be no digital transformation.
When a company becomes digitally obsolete, the first set of people that will be affected is the employees. It's either the company downsizes its staff just like Toys 'R' US did when Walmart came onto the scene, or they fold. Either way, the employees suffer the most. They either lose their jobs or accept lower pays.
The second team to be affected is the company itself. The first indication of digital obsolescence is the fall of their market value. Their stocks experience hits. An example is Blackberry that had a 95% reduction in stock value when Apple introduced its iPhones.
For a company to avoid being digitally obsolete, they have to adapt to the digital changes. This adaptation is called digital transformation.
When a company is digitally transforming, they start with their employees. It's put with the old and in with the new season. Older employees who aren't tech-savvy tend to receive their last paychecks and a goodbye. Newer employees who can help the company advance digitally are employed or promoted to bigger positions.
As an employee in any company that is digitally transforming, you need to be tech-savvy. Being tech conscious is the only way to save your job and remain relevant to the company. Here at DigElearn, we teach you the ropes and help guide you through the world of tech.
Attend our exclusive FREE webinar hosted by DigElearn Founder Allan Thomas Chiulli and learn how you can blow your competition out of the water in 2020.