CASE-2

Title
The Digital revolution: Challenges, Opportunities & Responsibilities for Family
Business.

Introduction
Despite being everywhere, disturbingly, most family businesses are watching the digital
phenomenon passively. But if they dont change this attitude and actively embrace
digitalization soon family-owned companies are unlikely to have a business in a few years
time, let alone one to pass on to the next generation.
Family businesses can also look at the success stories among their counterparts when it
comes to adapting to the digital revolution. In Germany there are a couple of great
examples. The machine tool group Trumpf is a good case in point. The family-led firm is
currently digitizing its entire production process and has recently launched its own system
software for manufacturing. Also, Otto, a third generation mail-order company founded in
1950, which today is the second biggest online retailer in the world after Amazon. The
agricultural machinery manufacturer Claas was also quick to use digital technologies to keep
it at the forefront of a very competitive and traditional industry.

ProblemsThe rapid uptake of digital technologies hugely impacts on how we communicate, relate,
learn, work, and spend our leisure time. Digital media literacy is the ability to access,
understand and participate or create content using digital media. This ability is becoming
integral to effective participation in the digital economy and Australian society. Those who
do not adapt may fall victim to the digital divide and be excluded. The digital revolution
has positive and negative effects, which are both explored in this timely book. On the
positive side, people are increasingly being connected across distances with the greatest of
ease and innovation via mobile phones, online social networking, blogging, gaming and elearning. On the negative side are a range of social impacts internet addiction,
cyberbullying, inappropriate exposure to pornography, privacy risks, and cybercrime.

ConclusionFamily businesses can also play to their strengths when it comes to digitalization, as my own
research shows. They have the ability to move quickly when adapting to new ideas and
innovation. Thats because they are usually less bureaucratic than their non-family
counterparts. They can also run with new ideas longer than non-family businesses, because
they are less concerned about instant success and can take much more of a long-term
approach to innovation.

Designing platforms to meet consumer needs

Discovering tools and data sources that mitigate risks unique to digital account opening
Presenting offers to digital prospects in new channels
Increasing conversion rates based on when & where offers are communicated
Overcoming industry constraints

Safeguarding the family legacy & Protecting privacy in the digital age
We live under surveillance. In our homes. In our offices. In our public spaces. With the
widespread deployment of GPS devices, digital networks and global satellites, our digital
footprints are tracked and recorded to a degree we never anticipated and cant completely
understand.
Its time to reassess the balance between privacy and security
It is time to reassess the balance between privacy and security in our laws and our culture
and give the public a powerful new legal tool to protect personal data, especially with
respect to the communication devices and digital networks that we have come to rely upon.

Societal impact of digital revolution

New technologies and their combinations which create more and faster innovations
are the key enablers of the Digital Revolution.

Wage depression, underemployment and wealth concentration are exacerbated, and

in part driven by, the Digital Revolution

Digital services will be the accelerators of large scale movements and one of its key
success factors.

Large scale, effective movements will organize as digital ecosystems as the network
effect of connecting millions at the same time increases their impact and the time for a
movement to be effective will be significantly shortened

The digital people's reporter and its power to report anything, from anywhere at
anytime has created global transparency - nothing stays hidden for long!

Digital Movements will collapse, quickly, after their massive, transformative purpose
has been fulfilled

The Digital Revolution will not only give rise to peaceful innovations and changes but
also to violent ones.

The Digital Revolution will bring about a new, highly effective kind of army: a truly
digital, ecosystem driven army
Deepening digitalization and globalization has induced an ongoing societal transformation
that may ultimately prove to be as significant as the original industrial revolution. Even as
the ICT industry is being restructured, global competition is being transformed. Previously
dominant firmsincluding telecommunications carriers, equipment providers, and powerful
legacy software firmsare under assault from the move to cloud computing, in the network
center, and mobile computing, on the network periphery. This transformation of the
computing and communication infrastructure has been occurring simultaneously with the
spread of ever more complicated and sophisticated global value chains.

A Publicprivate
partnership (PPP or 3P) is
a commercial
legal
relationship
defined
by
the
Government
of India as
"a partnership between a public sector entity (the sponsoring authority)
and a private sector entity where fifty-one percent or more of equity is
with the private entity."
Challenges in PPP in India

Regulatory environment: There is no independent PPP regulator in India currently.

In order to attract more domestic and international private funding of infrastructure, a more
robust regulatory environment, with an independent regulator, is essential.

Lack of information: The PPP program lacks a comprehensive database regarding

the projects/studies to be awarded under PPP. An online data base, consisting of all the
project documents including feasibility reports, concession agreements and status of various
clearances and land acquisitions will be helpful to all bidders.

Project development: The project development activities such as, detailed

feasibility study, land acquisition, environmental/forest clearances etc., are not given
adequate importance by the concessioning authorities. The absence of adequate project
development by authorities leads to reduced interest by the private sector, mispricing and
many times delays at the time of execution.

Lack of institutional capacity: The limited institutional capacity to undertake large

and complex projects at various Central ministries and especially at state and local bodies
level, hinder the translation of targets into projects.

Financing availability: The private sector is dependent upon commercial banks to

raise debt for the PPP projects. With commercial banks reaching the sectoral exposure limits,
and large Indian Infrastructure companies being highly leveraged, funding the PPP projects is
getting difficult.