Embracing Digital Transformation For SMEs
Digital transformation is the integration of digital technology in companies through organisational and operational changes, and is important for any business to stay relevant today — especially so for small enterprises. Currently, digital transformation is impacting the way firms enter and compete in the already competitive industry.
The COVID-19 pandemic has pushed companies towards digital transformation, changing business strategies forever. Thus, to stay relevant and competitive, many businesses, especially in the relocation industry, have pivoted towards online channels in attempt to adapt and evolve.
As the market is constantly changing, in response to technology evolutions, digital transformation initiatives can offer a range of opportunities for small and medium-sized enterprises (SMEs) to improve in performance, innovation, and productivity.
Characteristics of SMEs
SMEs are independent firms with limited employees, as compared to MNCs. All SMEs share similar characteristics in terms of industry and local markets. These enterprises focus on a small number of products and services, allowing them to establish strong relationships with business partners.
Why Should SMEs Embrace Digital Transformation?
While it may be daunting and complex to incorporate digital technology into SMEs, it is essential in the long run — implementing the technology correctly can result in a multitude of benefits, such as the following:
Businesses generally incur high costs due to human errors, as additional time and effort will be spent on rectifying the error or in terms of monetary compensation to the client due to unsatisfactory delivery or delayed delivery. Digital transformation reduces such errors by up to 90%.
Additionally, processes within personnel management can be automated with digital technology. Right from recruitment to training, in-house promotions, HR management – the company can save significantly on its overheads on people.
In fact, Small businesses that embrace digitalisation can expect to see average revenue gains of 26%, and save an average of 22% in costs, according to a study by the Association of Small & Medium Enterprises (ASME) and Microsoft Singapore.
Improvement in Productivity
In this era of digital transformation, more and more companies are utilising technologies to improve work productivity. Digitising processes can reduce time in the execution of manual processes, eliminate or substitute total or partial tasks within those processes and incorporate new functionalities that add value to the existing process.
Reduce Reliance on Manual Labour
With automation, more tasks and processes can be programmed and will be able to run as per normal, without the need for supervision by employees.
As many digital tools are accessible to all businesses, digital transformation actually helps to enhance competitiveness, thereby establishing a level playing field between companies.
It is increasingly prevalent that digitalisation has permeated almost, if not all, aspects of our economy and lives. That’s why boosting digital economies can not only help economic growth, but overall advancement of companies.
Some areas of digital transformation include:
- Business processes
- Business activities (such as HR)
- Organisational culture
How can SMEs leverage on digital transformation?
Leveraging on digital technologies can help create new value and services for stakeholders, while helping to innovate and acquire capabilities that will help enterprises adapt to changing circumstances.
Understanding what practical steps your company can take is important. First, you will need to find out certain areas in the company which present opportunity for digital transformation. When embracing digital transformation, consider customer experience, business models and operational processes. Digitalisation can transform operations, allowing companies to spend less time on tech and more time on other tasks.
As customers hold the key to success in companies, this can be a valuable focus point when considering embracing and leveraging on technical transformation initiatives. Have a deeper understanding of your customers’ behaviour and preferences. This allows your brand to personalise engagements while enhancing their experience with you.
For example, Stoll Group, a company offering design solutions in various areas, had implemented an internal reference work in the form of a wiki to bring better stability and process dynamics. This wiki page improved the quality of various projects, as all employees had access to the same information, allowing them to have everything they need at any time. On top of benefiting its employees, leveraging on digital transformation had also resulted in an increase in customer satisfaction.
Improve User Experience
Leveraging on digital transformation can help your business achieve better services quickly and efficiently. Businesses increasingly demand more and better IT services and networking capability — this usually goes beyond just the usability of applications and includes experience working with IT and tools.
Increase Effectiveness of Employees
Digital technology can play a large role in helping employees be more productive and effective in achieving their primary roles in the office. Providing a valuable opportunity for core functions of your enterprise, digital technology will help you move away from manual processes and towards automating key areas like payroll. This will enable leaders to focus on other, more important business opportunities.
Make Decisions Efficiently
Leveraging on digital technology, such as AI-based technology can help your SME take advantage of big data. Big data promises to aggregate information from multiple sources. Advanced AI capabilities will help enterprises to sift through data, converting them to valuable insights at a more efficient rate — helping your enterprise stay ahead of the curve.
As digital transformation has resulted in the shifting of cultures — to one that is nimble and agile, this requires a different way of working. Digital transformation can be incorporated into SMEs to help enterprises adapt to this shifting of culture both within and outside of work.
An example is the digitalisation of doorbells, such as Ring. Adding a camera and WiFi to its doorbells have transformed the way we think about this device. Adapting and improving on current practices can help your workplace improve on efficiency and convenience.
Take Advantage of Cloud-based Applications
Many are discovering that manual business processes are no longer effective, resulting in experiencing high volume workloads. Furthermore, sticking to manual processes also lead to higher costs, putting these enterprises at a disadvantage.
Thus, opting to use cloud-based applications and software can provide SMEs with flexibility and scalability, reducing excessive workload and increasing productivity. This can help employees and clients stay updated, wherever there is internet connection.
How Moovaz Can Help
At Moovaz, we believe although incorporating digital transformation into an SME may be daunting, it is essential to help you stay relevant in the competitive market. By embracing it, you will be able to reap rewards similar to those of larger enterprises. When SMEs embrace, understand and adapt to these key trends, these enterprises will be able to accelerate growth and create value in the organisation.
Digital transformation is not a “one-off” project — SMEs will need to constantly reflect on its business model, processes and interactions, adapting to different situations.
Moovas instantly connects you to millions of customers searching for trustworthy relocation services. Partner with us today for a new way to grow your SME and start embracing digital transformations as a priority, partner with Moovaz today!