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3 Reasons Why Your Business Might Collapse in 3 Years

3 Reasons Why Your Business Might Collapse in 3 Years

“The average age of a company listed on the S&P 500 has fallen from almost 60 years old in the 1950s to less than 20 years currently.”

Digital transformation is a life vest in turbulent water. And what’s the turbulence? Change. Consumer Demands. Competitors. Why is it that successful companies are young? And what is killing off companies at an unseen rate?

Technology (or Lack Of)

Everything changes. We can accept that. For fifty years, the letter was the essential form of communication. Nowadays, we email. What does this mean for your business?

We are in a constant cycle of the current becoming outdated. Those that ignore the shifting tides get left behind. In this way time is merciless. Just as with our species, the rules of evolution apply to business. Otherwise, like the horse and cart, the telegram and the tape, you are not relevant. Take this. You must stay relevant. Otherwise consumers will disconnect. Need some examples?

  • Blockbuster – the popular video hiring store went out of business in 2010. Why? They couldn’t compete with online streamers Netflix and Lovefilm. They did not utilise user information. Their prices remained high when others went low.
  • Toys R Us – this iconic toy store went out of business in 2018, stating that ‘the warehouses were too big and expensive to operate in the current market’.
  • Kodak – this US camera store once boasted 2/3rd of global market share. However, the rise of digital cameras and smart phones meant that the company declared bankruptcy in 2012.
  • Clintons – the street card retailers could not compete with online retailers Moonpig and Funky Pigeon.
  • Woolworths – the convenient store could not survive the digital revolution, falling behind other retailers.

What have they all got in common? They didn’t embrace the digital revolution. So, here are 3 reasons your business could get left behind.

Diverse people emotion shoot for digitalisation

Connectivity

It’s impossible to overestimate the importance of connectivity. Everything from your network to your emails, phone lines, card machines rely on a secure and efficient connection. A lack of investment in connectivity means your business is not utilising Cloud-based services. Your business may collapse because:

  • You have limited or no ability to gather information. This is vital for watching the trends and being alerted to the faults of connection.
  • You are reliant on multiple suppliers with differing contract and renewal terms instead of a single-access router.
  • You invested in industrial IT instead of innovative. Your business is not set up for change.
  • You failed to offer customers easy-to-access, high performance connectivity across your physical estate. This means they will go elsewhere.

The solution? A managed service provider, for example Timico, offer connectivity solutions that are secure and dynamic to change. Once you realise how much of your business is supported by connectivity, it’s imperative you adopt a solution to stay ahead of the game. Book a free roadmap here.

Data

Successful data is a journey of digital transformation from premise to Cloud. You’d heard the phrase ‘data is the new oil’ but didn’t heed the warning. Loss of data, depending on severity, can mean loss of company. Now, you threaten administration because:

  • You have inadequate and untested disaster recovery capabilities
  • Your ability to scale is slow and constrained by ageing and complex technology
  • Decommissioning is slow and costly
  • You fail to keep pace with user behaviours
  • You operate an ageing infrastructure – insecure and low-performance

The solution?

Investing in outsourced data management. This can come from a data service provider, with capabilities from colocation to full integration to Cloud. Get data right now and you’ll be better prepared for future challenges.

Work Place

Longevity, and better yet, competitive longevity – requires a complete digital overhaul. Ignoring this and remaining analogue will limit any ambitious business. Why? See the list of failed business above. Digitalisation is no longer optional. Mistakes include:

  • Your SharePoint and Exchange servers are on-premise.
  • Hardware and software siloed across offices
  • Single Channel communications and voice

The solution?

Kitting your business with the necessary tools to compete. You need to unify your comms, host your voice and move towards an outsourced solution. Once your applications are digital, you have the foundation to survive and succeed. You can book a free roadmap for work place transformation here.

Conclusion

Importantly, with everything, you are willing to transform. This is the key. It’s no coincidence that Fortune 500 is dominated by tech companies. You can’t predict the future, but you can equip yourself to deal with any challenge. Use digital transformation as an opportunity, not an obstacle.