Food Systems Innovations Ep 27: Are Our Food Enterprises Ready for the Digital Age?

When you reflect on how technology is shaping sectors, the food system stands out as one undergoing a notable digital revolution. When you are starting a business, automating processes is one niche that you have to explore and invest in to be assured of making tangible steps in meeting consumer needs. While digitalization is here with us, you may find yourself in a position where you are unable to make good use of it or still adamant about using it. Tech makes it convenient to access services, and products and on the flip coin, learn new skills, and trends in the market enabling you to adjust accordingly in the services, products and support you offer to consumers. Perhaps it is worth noting that each day you adopt technology you are likely to properly manage the resources at your disposal. The big question is, how ready are you to embrace digitalization?

The Digital Maturity Assessment (DMA) 2023 Report in Kenya paints a picture of how digital preparedness, strategic entrepreneurship assistance, and green business practices are propelling the food sector toward improved resilience and environmental sustainability. Although when you are in the food sector you face present-day obstacles, it is increasingly anticipated that you are likely to achieve economic development and performance through the use of new technologies and sustainable practices. This article provides you with key highlights on the landscape of digitalization and areas you can embrace to contribute to institutional and environmental resilience.

Food System Digital Readiness and Strategy

Being digitally ready also involves a strategic instigation of digital tools that cater to all functional layers in the world.  Food businesses are waking up to the promise that digital transformation holds for reducing product waste and spoilage through clear information sharing in efficient supply networks as well as creating avenues for reaching new markets.

According to the DMA, you can be among the many food-based businesses in Kenya that have been integrating digital solutions like Remote Business Collaboration platforms, e-marketing and even data management systems. According to the survey, more than 70% of enterprises are using social media and online ads for digital marketing, and nearly about 76% have integrated connectivity tools such as intranet, internet access and VPNs to improve internal communications or data sharing​. These tools help you streamline your operations, handle your supply chain without much hassle and effectively reach out to customers. Internal communication is sometimes overlooked but it helps you and your team to be on the same page when speaking to the external community and minimizes ambiguity.

In addition, the assessment identified gaps in a data infrastructure that meant many organizations did not have secure connectivity or reliable ways of managing data. Specifically, just 15% of companies have strong security and privacy protocols that are necessary to protect sensitive data as well as ensure business continuity​. Digital readiness is, therefore, a prerequisite given that you may experience the perishable nature of time-critical situations where information is exchanged in the food sector, which is necessary to maintain a sustainability and/or competitive edge.

To narrow these gaps, a firm must adopt a holistic digital strategy that involves investments in the necessary digital infrastructure and human capital for example, training your employees on how to effectively utilize such tools.  This is in establishing relationships with technology vendors, local, and state agencies and other stakeholders to understand how each contributes to your operations directly or indirectly as well as the policy environment. It is important to ensure that you have a workforce with digital acumen skilled in using technology to drive economic development and environmental protection.

How Digital Innovation Helps Entrepreneurs

For entrepreneurs, it is important to be in touch with Entrepreneur Support Organisations (ESOs) which are critical for facilitating innovation and growth in the Kenyan food system. This owing to the fact learning improves consistency and decision-making in the competitive entrepreneurship sphere. For instance, Incubators, accelerators, innovation hubs and co-working spaces offer necessary resources and networks that sustain startup ecosystems and small businesses in an increasingly competitive environment.

The report further illustrates that ESOs scale up as leaders in digital and sustainable growth for Kenya's food sector. For instance, numerous ESOs are utilizing electronic instruments to facilitate their services. This includes 89% of them using remote business collaboration tools, while over three-quarters make use of e-marketing and website management systems to expand their reach and impact you as a beneficiary. This digital move has allowed reach to a wider range of clients, including rural entrepreneurs who otherwise may not have access.

In addition, through a concentration on green innovation, startups promote environmental sustainability by reducing carbon emissions by utilizing renewable energy to minimize waste. This shows that startups, especially food entrepreneurs, can also benefit from Mentorship, and Financial Guidance platforms to scale these businesses by accessing funding and technical support fundamental to driving innovation that makes traditional knowledge with modern digital solutions.

Embracing Green Business Practices

Sustainability is becoming a top consideration for the modern food system. According to the DMA, many Kenyan food businesses are progressively adopting green practices, owing to regulatory requirements as well as rising consumer demand for environmentally friendly products. However, the shift to sustainability requires a defined strategy and sufficient support.

Energy efficiency, waste management, sustainable supply chains, and employee involvement are four key areas that, in the food sector, you need to put in place to make great progress. 65% of firms have implemented Environmental, Sustainability and Governance (ESG) policies to guide green activities, suggesting a rising commitment to sustainability. As a business, investing in renewable energy sources, such as solar electricity, can reduce reliance on non-renewable resources and lower long-term operational costs.

Furthermore, technology has taken a deep dive into improving the environment, with waste management advanced courtesy of recycling practices and e-waste monitoring. In light of the DMA report, over 43% of enterprises use digital technologies to track waste management, which helps identify areas where waste can be minimized and resources more efficiently utilized.

Additionally, many businesses are using digital platforms for better inventory management and adopting eco-friendly packaging materials. 42% of companies providing education and training on green practices, such as reducing energy consumption and utilizing digital tools to support sustainable goals​. Talking of aligning towards a greener future and scaling your food innovation or business, in Community Virtual Hub, a product of FSPN Africa, you will be able to experience learning virtually, interact with learning materials as well and have one-on-one engagement with the instructors.

The Way Forward: A Digital and Green Transformation

For Kenya's food system, gaining digital readiness, enabling entrepreneurs, and utilizing green practices are more than just industry developments; they are essential components of a vibrant, sustainable future. Food enterprises can boost their competitiveness, and satisfy the demands of increasingly discerning consumers while contributing to global sustainability goals by embracing digital tools and cultivating an innovative culture.

Looking ahead, joining the food business, you ought to continue making investments in digital infrastructure, equip personnel, and develop partnerships to support both digital and green changes. Entrepreneurial Support Organizations will play an important part in this journey, providing the essential assistance, resources, and networks to help your firm manage the challenges of today's digital world while remaining dedicated to sustainable practices. The task in your court is also to seek opportunities available for you through these organizations and they also strive to be part of your growth journey.

The DMA results recommend several possibilities for action:

• Prioritize investments in digital infrastructure, including secure internet connectivity, data management tools, and platforms for real-time decision-making and collaboration.
• Enhance Workforce Skills: Encourage ongoing learning through digital literacy programs, online tutorials, and internal training to ensure employees are proficient with digital tools.
• Enable Entrepreneurial Ecosystems: ESOs can connect food firms with technology providers, financial institutions, and other stakeholders, driving innovation.
• Implement Green Business Practices: Utilize digital tools to track carbon footprints, optimize resource use and reduce waste.

Focusing on these crucial areas allows Kenya's food system to position itself as a leader in digital innovation and long-term viability providing food security, economic growth, and environmental protection for future generations. As digital tools become more accessible and green practices gain traction, you will be better equipped to meet the challenges of user-friendly digital tools as you contribute to the future of the food industry you foster a sustainable, inclusive economy that benefits all.

Reference: Digital Maturity Assessment of Enterprises, Kenya,2023

For more information, contact: info@fspnafrica.org