Why Embrace Diverse Digital Innovation?

Perhaps Richard H. Ranger, the American electrical engineer and inventor that managed to send the first wireless image back in 1924, would struggle to envisage a world dominated by technology as we see it today. While it’s hard to pinpoint the exact birthdate of the Information Age due to numerous innovations in different areas of technology sprouting concurrently, one thing is clear: rudimentary styles of digital innovation paved the way for the current landscape.

How We Got Here

After paying homage to Ada Lovelace, who was the first person to recognize that Charles Babbage’s Analytical Engine had algorithmic capabilities beyond mere calculus, digital innovation has been dominated by a noticeably homogenous demographic of the population, which has meant that for the most part, any of these digital innovations throughout history have tended to attract users of a similar elk.

The US, Soviet Union, and British Empire claiming superpower status, racial segregation in the US until 1964, and a woman’s place being in the kitchen until magazines decided they could do it all may go some way to explaining the geographical, racial, and gender homogeneity in digital innovation. Still, it doesn’t justify the status quo of yesteryear, and less so today. 

Every single inhabitant on Earth can benefit from using technology in some shape or form, so opening the gates and explicitly encouraging demographically diverse innovation is crucial for creating a more equitable and inclusive technological paradigm that can address the needs, desires, and challenges of all people, regardless of their background or circumstances.

The Online Gold Mine

The Digital 2022 Global Overview Report delves into a palatial collection of user statistics, one of which is that 4.9 billion people are active Internet users. It goes without saying that the market and community opportunities in this number are immense and present a significant potential for businesses and organizations to connect with diverse and engaged audiences in the following ways:

1 — Transforming Operations 

Automation can help organizations spend less time, and therefore money, on certain tasks and allow for data-driven decisions. According to Slingshot, Coca-Cola uses data to influence the brand’s decisions regarding all decisions in sourcing, distribution, sales, production, and more. The same article shows that data-driven companies are 23 times more likely to top their competitors. 

2 — Enhancing the Customer Experience

First, it was websites. Then it was Apps. Turning on your desktop to make an online purchase creates a degree of friction that dissipates when you can click on the App that saves your card details and allows you to check out without even having to get out of bed to find your wallet, let alone wait for your computer to boot.

3 — Staying Ahead of Competitors

With the onset of digital payments and the convenience of same- or next-day delivery, brick-and-mortar companies (and those whose implementation of digital processes is sub-par) run the risk of being overtaken by those who do opt for flawless digital innovation in their operations.

4 — Identifying New Opportunities

Hawk-eyed organizations scouting for new opportunities are more likely to find them if they embrace digital innovation. Tech-savvy leaders such as those at Escapology Columbia (an escape room) managed to evade the devastating effects of the pandemic that devoured countless organizations. They too saw an 82% drop in revenue in the first week of the pandemic. But by reacting quickly to the circumstances and migrating their business online to take advantage of digital opportunities, 2021 was one of their most lucrative years.

5 — Product and Service Development

Rapid prototyping (think 3D models), customer feedback (online surveys), targeted ads, and data-driven design are some of the more obvious ways organizations can improve their offerings. The tools are out there. It’s about leveraging them.

6 — Entering New Markets

Millennials are the generation that boasts the highest percentage of online shoppers at 85%, according to Zippia. Organizations that are hesitant to create a credible online presence risk limiting their market potential because 81% of shoppers research a purchasing decision online before taking the leap.

The Challenges

Innovation of any kind can be disruptive and met with cynicism. Not least is digital innovation, which also poses challenges, such as the need for organizations to constantly adapt and evolve to keep up with changing market conditions and customer demands. This is especially poignant in the current digital climate, where the fastest-growing technology before blockchain was the internet, which grew at around 66% year-on-year. Blockchain is moving at 113% year-on-year, highlighting the agility needed by founders and users to stay up-to-date.

Data breaches and cyberattacks are other issues that organizations must be prepared to mitigate. The cost of cybercrime in 2021 was US$6 trillion. Aside from the financial implications, protecting privacy is of primordial importance holistically. “White hats,” or ethical hackers, can identify vulnerabilities in systems and create “patches” that improve the security, so it’s a good idea to install the latest version of your Apps and other software.

In line with diversity and inclusion, the digital divide can deepen if we fail to innovate from a diversity standpoint. The critical importance of ensuring everyone has access to the digital tools and infrastructure they need to participate fully in the digital economy and society is apparent more now than ever. Paradoxically, the very opportunity to close the wealth divide offered by cryptocurrencies saw an uptick in the number of African Americans investing in crypto. Now, with its decline, they are the group most sorely affected. This article explores some of the possible reasons for this.

The Verdict

Overall, digital innovation drives growth and competitiveness for organizations today, with its snowball effects that are difficult to stop as decentralization takes center stage. By investing in new technologies and talent, organizations can reap the benefits and stay relevant in a constantly evolving business environment. 

Organizations must consider the potential drawbacks, such as badly-executed cybersecurity and a lack of diversity in the creation of new tools, but embracing digital innovation can provide a competitive edge and unlock new opportunities for growth and success. With the increasing demand for digital solutions and the rapid pace of technological advancements, organizations that fail to innovate risk falling behind and losing their market position. 

By staying at the forefront of digital innovation, companies can meet their customers' ever-changing needs and, what is more, drive innovation in their respective industries. Digital innovation is the stem cell of all innovation in 2023.