Digital Signature electronically authenticates the author of any document. It encrypts documents with digital codes which is almost impossible to duplicate.
For example, a CEO can provide approval to any project through email with digital signature. Digital Signature ensures that the email is not altered in the way and the CEO cannot deny his approval.
Digital Signature Industry of Bangladesh
Digital Signatures are provided by Certifying Authorities (CA). As Bangladesh Economy is growing and getting digitized, need of digital security is also increasing. Here is the current situation.
Digital signature is controlled by Controller of Certifying Authorities(CCA) that was established in 2011. National Information & Communication Technology Policy- 2009 provides directions to introduce Digital Signature earlier. It is regulated by Information and Communication Technology (Amended) Act, 2006.
66% vs. 6:
A research revealed that internet adoption in business will be around 66% by 2020 in Bangladesh where as only 6 licensed firms are providing digital signature service here in Bangladesh. Those are listed below.
|Data Age Ltd.||2002|
|Computer Services Ltd.||1987|
|Bangla Phone Ltd.||2004|
|Dohataech New Media||1992|
Government dream to empower Bangladesh as “Digital Bangladesh”.
Prospect of Digital Signature in Bangladesh
Bangladesh is projected to be the 23rd largest economy in 2050 in terms of GDP PPP. Digitalization will be the major driving factor for such development.
- Everything is going Digital. So digital signature is needed to meet the demand
- Credibility is declining, everyone wants prove of Authenticity
- Traffic jam, political crisis etc. are driving video-conference based meeting and email based approval or documents signing
- Digital signature is treated as Access to global business path,being at home
- The importance of advanced digitalized way forward is creating a positive attitude among the fist growing business.
- Online/real time authentication and data integrity being highly influential to grow e-commerce faster.
Market Entry Strategy: Bangladesh Digital Signature Industry
Porter’s Five Forces Analysis and PEST analysis guide the market entry strategy of a company. Here is the key points of those two analyses.
PEST Analysis of Bangladesh Digital Signature
- Digitalization is a key demand to Govt.
- Political parties believe in digital advancement
- Both public & private business organization are transforming to digital
- Digital mechanism enhancing the business wheel
- Government support leads to grow sharply
- International acceptance of local experts enhance credibility
- People are willing to be digitalized
- Social life is highly influenced
- People are focusing on authenticity in their economic life being more fast
- Technology is advancing more rapidly
- More secured way to fastest customer service prevails
- New technologies enhancing the security and trustworthiness in delivering best services
Porter’s Five Forces Analysis of Bangladesh Digital Signature
Threat of Entrant:
- Lack of awareness
- Low Product differentiation
- Higher Capital requirement
- High Government Control
Power of Buyers:
- Credibility and authenticity in Demand
- Switching options are many
Threats of substitutes:
- Substitutes in many forms: Local agents, physical access etc.
- Substitute has better value: physical verification and authentication, low legal constrains etc.
Power of Suppliers:
- ISP providers, Internet agents, Affiliates & Govt. demands Quality at affordable cost
- Few pioneer organizations are holding reputation and market share globally
- Security is Key Different
In summary, there is high business scope in this industry of Bangladesh. The market players or any new entrant needs Structured organization, State of the art technology, Strong marketing team and most of all in-depth customer Support to be successful in Bangladesh Digital Signature Industry.
I will discuss on the Marketing Strategy of this industry in next article, stay tuned.
You can check my post on Digital Economy of Bangladesh.