From Steven Covey, we learn that values govern people’s behavior, but principles determine consequences. He encourages leaders to utilize the key principle in management for digital business development. Leaders are advised to adopt THRIVE and draw six digital business transformations principles to equip themselves for the digital economy. THRIVE is an acronym which means: T-Transformation, H-Holistic, R-Response, I-Innovation, V-value, and E- enterprise.
According to Steven Covey, leaders must be in a position to adopt these six principles if they need to survive in the face of innovations.
Digital Economy Challenge
In recent years, the digital economy has seen a lot of development and is the most critical engine of innovation, competition, and growth. The new era has completely changed our social life from the way we socialize, work, learn, shop, and even communicate. Every sector is re-shaping its traditional industries and value chain with business models which never existed before. It should be realized that the digitization of the economy could be the most critical transformation of the century.
The digital economy provides huge opportunities for entrepreneurs, small, medium, and large companies. One major drawback of these business setups is that they do not take full advantage of the digital economy. In fact, the European Commission has said only 2% of European enterprises are taking advantage of the new digital opportunities. This is alarming since we understand that the full adoption of digital technology is what will make businesses thrive in the digital economy. The commission stressed that companies that will not enhance digital technology would be excluded from the global market.
No Barriers to Entry
There are no limitations to entry for innovation. The hardware, software, and operating systems, which were once limited, are now readily available and affordable to all companies. Even a sole entrepreneur can access technology, which was not available some years back. The only thriving obstacle towards companies adopting digital technology is the lack of capacities from leadership.
Any company that has the right leadership mindset and capabilities can now transform, innovate, and digitize its products and services.