The rule of business has dramatically changed. In every industry, business models and processes are being transformed by the spread of new digital technologies. Digital transformation is the incorporation of computer-based technologies into an organization’s products, processes, strategies, and models in order to better engage and serve their workforce and customers and thus improve their ability to compete. Digital Transformation has become a big challenge for SMEs, meaning the readaptation of business strategies in order to innovate themselves to satisfy new markets demands. According to OECD, only 60% of SMEs took up new digital technologies during the COVID-19 crisis.
Among others, digitalization reduces transaction costs, and communication between staff, suppliers, and customers. In addition, digitalization adds value to customers, improves efficiency, boosts innovation, and most important finds new opportunities to generate income.
What are the advantages of digitizing processes?
Improve operational efficiency:
Digitalization can improve processes by providing new methods and opportunities for the business. New digital tools for design, project management, and sales combined with access to customer data will enable companies to create or reinvent products and services with specific customer needs, making the process infinitely more efficient.
Improve customer satisfaction:
Digital technologies force us to think differently about how we understand and create value for the customer, nowadays customers are the key influencer in every business. With the correct use of technology, SMEs can reach more customers. In research made by DELOITTE in the USA, more than 40% of all SMEs report customer growth and attribute some of that growth to the use of digital tools.
Reduce operational costs:
It can help small and medium-sized enterprises (SMEs) integrate into global markets, through reductions in costs associated with transport and border operations and it significantly enhances the scope to trade services. In particular, in a research made by DELOITTE in the USA more than 20% of the SMBs that use digital tools report reducing operating cost as one of the top three benefits from using digital tools, and, on average, they attribute one-fifth of this reduction to the use of these tools.
Innovation is recognized as the economic growth driver of the future, with a wide range of new technologies acting as an accelerator. Today, many impactful innovations are being created by a new generation of businesses that have no physical offices, they operate entirely digital. These companies are taking advantage of technology to create more sophisticated products and services, changing the competitiveness landscape
DELOITTE identified four stages in the Digital Journey of SMEs. Take a look inside your organization, recognize which stage you are, prioritize the needs of your own business and start your digitalization journey!