The term “being digital” was made famous in the best selling book by Nicholas Negroponte back in 1995, then head of MIT’s Media Lab.  Negroponte forecasted that interactive, entertainment, and information technologies would converge opening up new opportunities.  Well, today we know that this forecast proved true.  The convergence of digital media enabled by low cost computing and high speed broadband are changing the world we live in, the lifestyle we enjoy and the economic opportunities available to us all.

One evidence of this important trend was visible at an event in London I attended this week, called Being Digital.  At the event, there was much discussion about how to succeed in the world of digital online media.  Many eager and enthusiastic start-up ventures were there along with venture capitalists and government policy makers.  Thank you to the CBI and the UKTI for supporting such an event where entrepreneurs and investors could meet up, mash up, and make business together.

The proliferation of Internet usage and low cost computing is both an opportunity and a threat.  The opportunity is linked to the scale available for new ventures to reach their customers.  Internet usage is already enjoyed by 75% of the population in North America and 60% in the European Union.  However, with just 25% of the world population using the Internet, there is tremendous growth potential still to come.  Today, almost anyone can use a computer to create a website and start doing business on the Internet to reach a mass audience globally.  Yet, how do you create competitive advantage in such a connected world?

At the event, there emerged several key themes for new ventures to succeed in being digital today.  One was to create scale quickly by focusing on a simple idea and making available an API, application program interface, to allow people to share and build on your concept very easily.  A second success concept was to build internet business models where your ‘ecosystem’ of buyers, suppliers and partners each have something to gain in sharing and promoting your idea.  It is not merely enough to have a novel idea or a cool website today, as this can be easily copied in our new digital world.  Competitive advantage comes by doing something unique, but also doing something better by allowing others to share, promote, and benefit from the concept.  That is being digital.