Everywhere you turn today someone is talking about the demonetization.of Rs 5 00 and Rs 1000 notes. Today demonetization has affected everyone in India whether you’re a struggling business owner, a frustrated sales manager, growing manufacturer, or thriving chartered accountant. Demonetization has created a gigantic difference in how you and your business are perceived, virtually overnight.
Most people including intellectuals in India believe this demonetization is good for Indian economy. Then why some people are opposing the demonetization? Because it is human nature to resist any “Change”.
“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Charles Darwin
Business models are run in an external environment so the external environment can impact your business model in many ways and demonetization is one of the important factors that will impact your business model. Before developing a strategy that equips you to successfully adapt your business model after demonetization, let’s scan and understand the impacts of the current demonetization –
Will this demonetization eliminate the corruption?
Will this demonetization help us to fight terrorism?
Will this demonetization flush out the black money from the economy?
Will real estate prices fall after this demonetization?
Only time will answer these questions, so instead I’ll focus on something I believe is going to happen.
Equity is expected to benefit in the longer term from this move.
Now we are moving towards a cashless economy.
Digital transactions are going to increase and banking system is going to boost.
Now demand of loans from bank and NBFCs is going to increase.
Use of technology is going to increase.
Now digitalization is going to be the key to remaining competitive in the market. It does not matter how smart are you now in business if you are not digitally smart. Now you need to digitalize your business because you are moving towards a less cash economy and a digital economy. Digitalization has become reality in the business and everyday life so after demonetization, you can’t ignore it anymore.
The demonetization has proved that digital evolution will be a major factor in your business evolution. So now the strategy is simple – you need to adapt your business model with digital technology advancement. The fully digitalized business model companies like Paytm, Mobikwik and Namaste Credit is already ahead in this game and getting immense benefit after the demonetization. Hence, the faster you digitalize the better your business model would be in a digital economy.
“Demonetization is just a ‘bump’ in the Indian economy”. Lalit Bhojwani
Is Your Organization Ready for Total Digitization?