Digital disruption

There are two different schools of thought in Pakistan vis-à-vis digital disruption. One school of thought deems Pakistan as one of the countries, which is rapidly catching up with the rest of the world, however, the contrary viewpoint suggests that Pakistan is still lagging far behind in terms of adopting the technological revolution prevailing globally.

There is no denying that Pakistanis are deemed young, educated and to a great extent English speaking nation. However, the trust deficit has put Pakistanis on the back foot when it comes to adopting technology for everyday life. Someone rightly described it saying when it comes to adopting technology, majority of Pakistanis go one step forward and two steps backward. This might not hold true in myriads of cases since technology is creeping into more or less in everything in Pakistan. There are plenty of home-based e-commerce organizations in almost every country of the world and so is the case in Pakistan. The sheer difference is that e-commerce organizations have won the trust of the local people tremendously whereas the organizations in Pakistan are still reeling. This gives credence to the fact that e-commerce organizations even in crippling economies are generating more sales relative to Pakistan such as Egypt generates over $5 billion and Iran over $18 billion.

One needs to know why Pakistan is still lagging in this regard even with a sizeable population having robust purchasing power. Is it the culture or the only entertainment in Pakistan to dine out and shop with family and friends? Is it the localization of the content on websites, which is an enormous obstacle for millions of Pakistanis who are not well-acquainted with English as a foreign language? It is still an enigma. This leaves the online businesses with downsides.

It is widely believed throughout the world that the organizations which adopt technology and align with the ever-changing technological disruptions could survive in the next decade and the rest would be history, no matter how big or small they are. One could see the fate of the erstwhile giant named Kodak, which has been belittled by virtue of technological gadgets. Kodak’s missed opportunities in digital photography led to its descent. Are the Pakistani blue chip organizations geared up for the forthcoming technological revolutions to stave off the descent? Have they got persuasive strategies to convince its clientele about the impact of the external environment?

The dismal outcome of the online business in Pakistan is widely attributed to poor response regarding return policy after the purchase, delivery time and price accuracy. This all is related to credibility. A common citizen believes that you don’t get what you see on the website. On top of that the employees who deliver products at the threshold of the buyer expect incentives in addition to the amount paid to the organization.

Though the Pakistanis enjoy the services of e-commerce organizations such as food delivery, ride-hailing, e-ticketing, digital financial services, grocery including staples, teaching as well training etc., the general trust deficit in e-commerce is rampant. There are ample complaints regarding ride-hailing organizations by the disgruntled customers. There is demand by lots of clients to beef up digital financial services. Millions of Pakistanis still are not willing to use digital financial services by virtue of the fear of insecurity. Though the trend to use online banking is catching up, it is still a long way to go. In order to purchase grocery including staples, individuals believe in going to brick and mortar shops. In order to purchase home appliances, millions of Pakistanis don’t like shopping online for the fear for wrong product delivery. Online teaching and training are getting popularity among the teenagers and corporate professionals for the sake of convenience including barely a few million experience online shopping. Financial services offered by cellular companies have brought about certain credibility due to which a good number of Pakistanis have opted for these services believing that the transaction would not go awry.

It is a fact that digital technology is reshaping the world rapidly, however, this type of reshaping still has to get off the ground in Pakistan for which monumental efforts are required.