Digital Transformation And Digitization Processes For SMEs

Digital Transformation

The digital transformation for companies and, with greater emphasis, for SMEs, is a challenge that, sooner or later, must be addressed if the survival of a company is to be guaranteed .

The pandemic has accelerated the process of digital transformation in many cases. However, there is still work to be done.

The world is changing towards a completely digital model and we have clearly experienced it with the pandemic; therefore, it is not that digital transformation is necessary, it is mandatory.

Transition From Digitization To Digital Transformation

Digitization is a first phase, in the short term, which then gives rise to a deeper digital transformation and this is where SMEs should be, doing what they have been doing in some way, but with digital tools and services.

As for digital transformation, it is something deeper. It is a complete reinvention of the business models of companies and all their processes.

Important Aspects

There are 3 aspects that should be pointed out that are very important and where SMEs should place greater emphasis:

Electronic Commerce

The total volume of sales through electronic commerce is 9% in Spain compared to 11% of the European average. It has been seen that the customer is digital, that they buy more online and companies that do not sell digitally are going to have a lot of problems keeping up.

Cloud

The cloud is a service that SMEs have not yet fully discovered and incorporated into their companies and it is fundamental because it represents an increase in productivity, a very significant reduction in costs and improves agility and the types of response in all their processes, and , improve the customer experience.

Use Of Big Data

The use of data is fundamental and SMEs, in this sense, believe that they do not generate data that could result in a subsequent benefit, but this is not the case. All the data that they can obtain from their point of contact with the client on the web, social networks, etc. and all that they can obtain from their suppliers, well managed, offer information that is essential to gain competitiveness, improve services and customer service.

Currently, many SMEs are concerned about the digital transformation process , but it is estimated that less than 25% have a digital plan in place.

Until January 2020 there was no need to implement a digital transformation plan, however, everything has happened quickly and many companies are seeing that they have to carry out this process immediately.

Advantages Of Digital Transformation

The advantages of undertaking the digital transformation process are:

  • stay in the market
  • Have business.
  • Keep the company alive.

The first thing for SMEs is to start with a digitization process , to digitize basic processes such as communication with the client, invoicing or supplier management , which will offer many advantages and will save them a lot of time in administrative management.

Leaders must have leadership among their virtues: they must have the vision and carry out this necessary and fundamental cultural change for digital transformation . They must gain agility, take risks, innovate, they must observe the market and listen to the employees, who are the ones who execute these digital transformation processes and, ultimately, this feedback is data that will give us information to adjust or change certain actions.

Measure short, but think long term. You have to see what results the actions are giving, but you don’t have to be changing every so often, because if not, the results never come.

Also Read: Automation Is Changing The World Of Work

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