With new technologies transforming markets and consumers’ behaviours at a rapid pace, digital darwinism implies that businesses have two choices – evolve or die. Companies that fail to adapt will be out of luck and their consumers will look elsewhere.
Darwin’s Theory of Natural Selection posits that only those organisms with traits that make them more likely to survive and reproduce will pass on their genetics to the next generation. It also states that those organisms with less favourable genes will be swept aside, allowing others to secure dominant market positions and eventually influence the world’s geopolitical order.
In the decades that followed the publication of The Origin of Species, this similarity between biological and economic competition was frequently used to defend laissez-faire capitalism. While the consequences of competitive marketplaces may be unpleasant, it was argued that, like the economy of nature, they efficiently sort out the fit from the unfit and thus are defensible scientifically.
While the survival of a business is ultimately dependent on its ability to adapt to technological changes, leaders must be open to implementing innovations and trends that will help them remain competitive. As per Deloitte’s latest report, 42% of executives believe that developing leaders is extremely important to their company’s success. Having true-skilled digital leaders who can keep pace with new innovations and trends is essential for a successful digital transformation. The best way to do this is by fostering an environment that encourages innovation and iteration.