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How Family Businesses are Vulnerable to Digital Disruptions

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22nd March 2019
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How Family Businesses are Vulnerable to Digital Disruptions
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A survey by PwC indicates that digital disruption poses a threat to 35 percent of family business as compared to 30 percent across the globe.

According to the report, 67 percent of the enterprises have highly invested in improving their digital capabilities as many are aware of the significant threats posed.

“These discrepancies between Kenya and global respondents shows that Kenya’s family businesses feel more vulnerable, overall than their global counterparts but they are investing in digital capabilities — perhaps helping them to feel more confident about the changes ahead,” reads part of the report.

According to the report, digitization, cybersecurity, and growth of AI and robotics are some of the significant challenges facing the businesses hence the need for an upgrade.

In their report, they cited the importance of companies having a great thought of strategy on their digital transformation projects adding that having the right governance structure will highly minimize implementation risk.

“If not well planned, digital transformation projects can tend to be complex and high risk.” Read the report.

Currently, companies have been waking up to the disruptive reality of artificial intelligence (AI), the Internet of Things, digital fabrication (3D printing) and robotics.

“Companies are deploying chatbots to provide a more responsive customer service experience. Others are adopting robotics process automation to automate manual repetitive and rule-based tasks to increase productivity, and others see AI as providing an opportunity to predict their customers’ specific needs better.”

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