The digital space has grown to become a reflection of real life, with goods, products, and services migrating to the online world. The economy isn’t an exception, and the concept of the digital economy includes online transactions and interactions between businesses, individuals, and devices.
In Canada, sectors like telecom, cybersecurity, and IT have been leading the way, and the digital economy is set to grow above USD 180 billion by 2029. Such a scenario poses challenges and opportunities: while new ways of doing business emerge, those who lag behind technological evolution are doomed to fail. Here’s what the digital world has to offer to Northern Ontario businesses.
The Current Situation
Northern Ontario is a fertile place for the digital economy, but it must overcome a few challenges to reach its full potential.
| Region | Coverage (per household) | Connection Speed |
| Ontario | 92.9% | 50/100 Mbps |
| Northern Ontario | 73% | 50/100 Mbps |
| Small Communities | 50% | 50/100 Mbps |
It goes without saying that wide accessibility to fast internet is a basic requirement for digital businesses to thrive. Without this coverage, local online businesses will likely struggle, also keeping away big companies like Hub88, which could bring more jobs and economic growth to the region.
The Ontario government seems to be working hard to overcome this situation. It has a very ambitious goal for this year: provide access to 50/100 Mbps internet to every household in the region. Likewise, the federal government is working to provide nationwide fast internet.
It’s clear by now that connectivity brings economic growth, creating new markets and jobs, from local delivery services to hi-tech igaming aggregator platforms, but not only so.
Digital technologies are linked to increased productivity and efficiency, making companies more competitive. It also opens new markets, as these companies can more easily reach consumers in isolated and rural areas. That’s why the Ontario government is focusing on the digital economy in the Northern region, and it already has an action plan in place.
The action plan (Policy 2.2.2) also includes investments in advanced manufacturing, agriculture, and health sciences, among other fields. The government expects to foster and keep competitive and innovative entrepreneurs in the region and attract other companies to move there.
Stepping Into the Future
The modernization of Ontario’s economy is essential for small businesses, and it’s indeed impossible if they’re left behind. After all, small businesses account for 98% of Canadian businesses, employing over 10 million people. So, the economic growth, not only in the region but nationwide, depends on competitive and modernized small businesses.
Here are some of the main benefits.
Data Collection and Management
Small companies no longer need to play by ear while developing their strategies. There are plenty of AI tools that can collect and analyze vast amounts of data from clients. Harvesting this information allows companies to develop better buying journeys, greatly enhancing user experience and satisfaction. It also impacts staff engagement and, more importantly, gives valuable market insights that can lead to much better business decisions.
Resource Management
Resource management can be a big issue for small companies. Knowing where to allocate it and how to track its use is very challenging for managers, but digital technologies can make it a breeze. In fact, digital tools can reduce waste significantly, streamline workflows and point to market opportunities that could go unnoticed by the human eye. Efficient resource management is the key to making companies of any size much more competitive and allowing their expansion.
Increased Customer Satisfaction
Customer satisfaction is the primary goal of any business. Tools backed by artificial intelligence and machine learning can create individualized experiences for each customer according to their needs and aspirations. It makes it much easier for companies to communicate with their clientele, turning their feedback into actionable market strategies and making them feel heard. As a result, they come back for more, often bringing friends and relatives with them.
More Efficient Operating Models
Big companies have long relied on cutting-edge software to create and improve their operating models. Small and medium-sized companies can reap similar benefits by investing in such solutions. With the help of such tools, managers can emulate different scenarios for each model and see how they’ll play out, allowing for great improvement in daily operations.
Increased Return on (ROI)
Big changes involve high costs, but the digitization of the working environment should be seen as an investment and not a cost. If done wisely, digital transformation can boost revenue and return on investment, which means the transformation pays off in the long run. There isn’t a one-size-fits-all recipe for that, and each company must understand their needs and priorities.
Supply Chain Management
Disruptions in the supply chain can have disastrous effects on businesses. Once again, digital tools can save the day in handling delivery, dispatches, and inventory logistics, preventing nasty surprises that can even interrupt production. Unlike marketing strategies, supply chain management works backstage, ensuring product and service stability.
Security
Small and medium-sized businesses are juicy targets for cybercriminals, as they usually lack the level of security found in big companies. Nearly 50% of cyber attacks on corporations target those with less than 1,000 employees, while ransomware attacks have targeted 82% of such companies.
FAQ
What is the coverage of fast internet in Northern Ontario?
Only 73% of households in the region have access to fast internet compared to the 92.9% coverage in the rest of the province. The situation can be even worse in smaller communities, where this rate drops as low as 50%.
How digital transformation can impact business strategies?
They help managers find inefficient processes that need enhancement, weeding out redundancies. It results in more agile businesses that can quickly adapt to sudden market changes.
Why is cybersecurity crucial for small businesses?
According to recent statistics, not even the smallest companies, with 100 employees or fewer, are free: they have been targeted by 37% of ransomware attacks. In this context, a robust cybersecurity system should be a top priority for such companies since this kind of attack can be fatal for them. Luckily, cybersecurity solutions have become more affordable for them, thanks to the democratization of digital technologies.
