Entrepreneurship and survival in the digital age
The wave of digitization is hitting all companies and organizations, but not every company or organization is being hit equally hard. Sectors such as media, retail, financial services, and the creative industry have been feeling the disruptive power of technology for years. But even sectors that until recently were considered ‘less vulnerable’, or perhaps saw themselves as such, are on the verge of radical change.
Who will be the winners?
With the digital age in mind, three categories of companies can be distinguished:
- Companies whose core business is relatively lightly affected
Part of the traditional manufacturing industry will notice relatively little impact from digitization at the core of their product, such as manufacturers of basic materials or semi-finished products. They can largely ‘continue to do what they do best.’ However, these companies too can benefit from accelerated production processes, improved logistics, and smart data insights. The impact here is primarily on efficiency, not on existential disruption. The digital age will certainly not pass them by, but it will be somewhat further removed from their core product than is the case in the other two categories. - Companies within the digital industry itself
Social media companies, data centers, cybersecurity firms, cloud providers, and AI companies are already in the midst of the digital revolution. They are not only prepared, they are the ones shaping the revolution. Their success is not determined by adaptation, but by innovation and scaling up. They are often the driving force behind change, but they too must guard against disruption from within: see the rapid emergence of new AI platforms that can threaten established players in a matter of months. - The large in-betweencategory
This is where the real impact will be greatest. Consider, for example, retail, healthcare, transportation, financial services, media, education, and business services. Companies in these sectors are partly analog and partly digital in nature. Crucial questions for these companies are: how do you prepare for the future? How do you remain competitive? Should you be at the forefront, or is a second-mover strategy safer? To what extent will your business model change? The winners in this category will probably be those companies that not only apply digital technology but also integrate it into their core strategy. Timing, leadership, and cultural change will be decisive factors in this regard. In the coming period, certain components, processes, and people in this sector will be replaced by technological solutions.
The pace of digital transformation is unprecedented. Unlike previous changes (such as the slow but sure disappearance of the milkman from the streets), products, services, and companies are now overtaken or outplayed in no time. And there is another factor: the advance of technology is not without its downsides. In addition to the struggle for survival, ethical dilemmas and fundamental questions about power, inequality, and sustainability will arise. These issues go to the heart of what it means to be an ethical company. The choices made today will determine not only market share but also social legitimacy.
Ethical aspects
What (ethical) aspects do we need to consider in the digital age? A number of pressing issues arise:
- The investment gap is widening
Digitization requires significant investments. Those who have capital can automate, analyze, and scale up (and accumulate even more capital). Those who do not have capital will fall behind. An unbridgeable gap threatens to develop between companies and between countries or trading blocs. This could lead to a situation where certain companies become too big to fail or impossible to catch up with. The question is how we as a society should deal with the fact that a relatively small number of companies potentially have so much power over our data, information, and communication, while at the same time we are dependent on their services. - Sustainability is under pressure
Technology often seems ‘invisible’ and therefore quickly acquires a ‘green’ image, but this is not necessarily justified. Data centers consume energy, feeding GenAI requires enormous computing power, and the hardware industry has a relatively large ecological footprint. Does all this fit within a sustainability agenda? Can you even be a ‘green’ company if you depend on an AI infrastructure that emits tons of CO₂? - The speed and unpredictability of AI
The speed of technological development in AI rarely synchronizes with that of legislation and regulations. AI develops by the second; creating legislation and regulations takes years. Legislation therefore very often becomes an after-the-fact exercise. New applications, such as Generative AI, also raise new legal questions: who is liable when AI makes mistakes? AI makes mistakes of a different nature than humans. AI can ‘hallucinate,’ AI can use data out of context, and AI is difficult to correct. Moreover, an algorithm cannot easily be held accountable for morality, social values, or political choices. Is that what we want? Can we do anything about it? - Executive Responsibility
Executives must ensure that their organizations have sufficient technological expertise. At the same time, there is a significant shortage of people with in-depth knowledge of AI, ethics, cybersecurity, and corporate strategy. Companies will have to ensure they attract the necessary expertise, including at the boardroom level. Perhaps acquiring in-depth technological expertise should become part of the corporate governance code. - Disappearing Professions, Social and Personal Consequences
Automation threatens traditional professions in areas such as administration, logistics, customer service, and production. Will there be more unemployed people in future, or will work simply change its nature? Supply and demand will eventually have to realign. Digitization also has consequences for employees as individuals. Work, privacy, and accessibility are under pressure. The desire to be constantly connected will put pressure on the ‘right to be unavailable.’ The digital age also makes working from home easier. This will have an impact on things such as job satisfaction, creativity, and connectedness. And what about the knowledge gap between junior and senior employees? The new generations will undoubtedly excel in data analysis, prompt engineering, and cybersecurity, but how do we ensure the ‘craftsmanship’ or critical thinking needed to assess AI outcomes?
Some countries are restricting social media use for young people. Will they be the winners or losers in the end?
How do I survive the digital age? Six propositions
Doing business in the digital age requires answers to all the above questions. Not all of the answers are clear yet. We will continue to explore this in the coming period. But we can already put forward six digital propositions we believe are necessary for survival in the digital age:
- Keep up with developments
Developments cannot be denied. That does not mean you have to keep up with everything, but make sure you understand the opportunities and risks the developments entail. And that you employ people who can do that. Train your team, collaborate with educational institutions, and attract young talent. Young people not only bring digital skills, but also fresh ideas. Create space for their input and innovation. - Diversify your board
Ensure your board has digital expertise. If necessary, add experts with insight into AI, data, and digital trends. Diversity in background, age, and ways of thinking prevents blind spots and strengthens future-oriented leadership. - Stay ethically focused
Consider what technology does to privacy, autonomy, and inclusion. A well-functioning algorithm can reinforce social injustice, if attention is not paid. Ethical reflection is crucial for maintaining trust and delivering social value. - Invest in infrastructure
Without a solid digital foundation - such as cloud, cybersecurity, and sustainable IT - you are vulnerable. Robust infrastructure makes you agile, innovative, and secure. Think of it as the foundation of any digital strategy. - Be agile
Let go of rigid long-term plans for these themes. Work in short cycles, experiment, and adjust. Agile organizations think in terms of learning processes and build networks to innovate together. Flexibility is a prerequisite in the digital age. - Exclude no one
Digital progress must be inclusive. Bridge the gap between young and old, rich and starting out, techies and users. Accessible technology and collaboration ensure broad support and better solutions.
Utilize, understand, manage, and limit
The digital age offers unprecedented opportunities, but only for those who dare to transform. The digital age is not a storm that will blow over, but a fundamental shift in how we work, live, and do business. To be successful in this day and age, you must not only use technology but also understand, control, and limit it. The future belongs not to the strongest, but to the most adapted.
This essay was published in Management Scope 07 2025.