A new report has revealed how the Covid-19 pandemic served as a launchpad for digital innovation, with an increased uptake in e-commerce from online retail and click-and-collect to video streaming.
The inaugural edition of the BCX Digital Innovation Report 2022, which outlines current trends and the status of digital innovation in South Africa at both a micro and macro level, shows that South Africa significantly increased its adoption of digital technologies over the past 18 months.
The pandemic presented South Africa – and much of the developing world – with increased challenges that were seemingly insurmountable; however, a positive aspect of Covid-19 has been the impetus it created for digital innovation, which was never experienced before in modern history, says BCX CEO Jonas Bogoshi.
“From the way we work and the way we buy groceries, to the way we receive healthcare and carry out our jobs, the necessity for less physical contact has opened a gateway for digital innovation from which we will benefit for decades to come.”
It provided opportunities that must be seized if the economy is to be rebuilt and remain competitive within a technologically driven global market.
“The reality of the Covid-19 pandemic is that we are all trying to solve problems never experienced before,” he adds.
“At first it was for survival and business continuity, and later, for some, it led to considerations for the future. It is without a doubt that digital technologies and digital innovation will play a big part of that future.”
While digital innovation and transformation have been priorities for South African organisations for a number of years, the Covid-19 pandemic has escalated the importance of digital innovation for survival.
The report cites a study indicating 79% of organisations in South Africa had fast-tracked digital transformation programmes by the end of 2020.
It also shows the significant impact digital innovation has had on the retail sector.
In 2019, South Africa’s online retail space, or e-commerce industry, was still in its infancy, accounting for only 1.40% of total retail spend. In 2021, South Africa saw a 50% to 70% growth in e-commerce.
With the Covid-19-linked nationwide lockdowns and restrictions to the movement of consumers, it pushed the pace of change into hyperdrive.
“Retailers needed to reform their business models to attract customers without the enticements of shopping malls. Similar insights are presented on critical sectors of our economy, such as banking, healthcare and insurance, besides others,” Bogoshi explains, noting that the report includes ten case studies of local companies depicting their journey to success with digital innovation.
“We are at a critical period of our economy – most countries are still reeling from the fourth wave of Covid-19 and are focused on their future sustainability.”
He further notes that the world’s larger economies are accelerating digital innovation.
“We are playing catch-up and must act if we are to compete,” he recommends.
The report highlights the opportunities that the current circumstances presented for the large-scale transformation of South Africa through digital innovation.
“It should be an inclusive journey, ultimately leading to benefits for all, while limiting the negative impacts of rapid changes we will most likely continue to experience for years to come,” Bogoshi concludes.