Impact of Digital Transformation on Small to Medium-Sized Enterprises
Digital transformation is a repeated term we listen to and read daily. But, still, many of us need to learn what digital transformation is, how it works, why it is necessary for businesses, especially Small and Medium Enterprises to invest in Digital Transformation Companies, and how they have boomed their business after transforming.
If we go by layman’s language, Digital transformation may be just a procedure to make your business available online. Still, it is an integrated strategy of fundamentally changing how you operate and deliver value to customers with the help of digital technology.
But don’t worry, this article will be your saviour because you will get every question answered regarding a direct relationship between digital transformation and Small and Medium Enterprises (SMEs).
So, let’s dive into the topic to understand digital transformation and its impact on Small and Medium Enterprises.
What is Digital Transformation?
“In Today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility; that’s it. Because nothing else is sustainable, everything else you create, somebody else will replicate.” — Jeff Bezos, Founder of Amazon.
This quote by Jeff Bezos summarizes the whole point of view behind the digital transformation that the generation in which we all are living is very dynamic. Nothing is sustainable; the only permanent thing is change.
Digital transformation is an organization’s adoption of digital technology to digitize non-digital products, services, or operations. Its implementation aims to increase value through innovation, invention, customer experience, or efficiency.
It adds value to the business and gives a unique customer experience to people who contact your business. So, as a business entity, one must know and understand the value that Digital transformation will bring.
Why does it matter/ Benefits?
With the increasing number of mobile users from 6.648 Billion and counting, Digital Transformation is the future, and with your business being transformed, it can be on every device.
But to give you a better view of the benefits of Digital transformation, we have gathered these benefits.
Increases Customer Satisfaction
Drives Data-Based Insights
Enables Future Digital Growth
Enables High-Quality User Experience
Higher Agility
Digital Transformation and Small Medium Enterprises
Even though big corporations are the major contributors to the world’s GDP, we shouldn’t overlook the role of SMEs. According to the World Bank, SMEs in developing countries create numerous job opportunities, which remain key to gradual economic development.
But, just like any other business organization, SMEs also face many challenges to help them survive in the market, and that’s why Digital Transformation plays a crucial role in leveling up the market status of SMEs.
One of the biggest challenges that SMEs faced was during the pandemic when even big companies suffered a hit. Still, it was more difficult for Small and Medium Enterprises to go through that as their archaic physical model failed to keep the business steady. Adding to that, the needs of the consumers were also under rapid transformation.
Starting from that point, Digital Transformation was the only solution needed to revive the economy. After SMEs transformed, it helped them get a broader perspective of their business and recognize any lags and interruptions occurring.
With digital transformation, SMEs can opt to go digital with the help of web development for brand introduction. They can also improve their management by having better access to information and appropriate communication to reach their customers significantly. Also, with a growing dependency on smartphones and other mobile devices, SMEs can rope in software firms to create applications with interacting user interfaces (UI) for better customer engagement and customer experience (CX). As physical documents tend to get damaged, SMEs can also opt for cloud services for better data management and security.
Impact on SMEs
Lucrative Growth — An essential part of any business is revenue; no business can achieve its goal if the ideal revenue is not generated. So, according to statistics, it is shown that SMEs who opted for Digital Transformation grew by 19%(online business) yearly, and (offline business) revenue grew by 10%, according to the KPMG report.
Expansion of Consumers — Just being an offline business restricts your growth to move globally, hindering your business opportunities. When an SME has been set up online or digitally transformed, it becomes easy for the small business to level up its game overseas.
Efficiency — A report by TechMahindra found that new digital technologies can reduce operational costs by 20–30 percent through improved capital and labour utilization. These statistics tell us that Digital transformation doesn’t just do the promotion of your business but also helps you to cut costs while saving money and giving you hassle-free operations.
Engagement — Digital transformation has laid many opportunities for SMEs to flourish their business by providing a deeper understanding of its customer. After that, it’s the job of Small and Medium Enterprises to predict and analyze their customer needs and to provide them with a solution at a cost-effective price.
How will Copper Mobile come to the rescue?
Copper Mobile is your go-to solution if you are also an SME and want to transform your business digitally to open the gates of new opportunities.
A USA-based and revamping Enterprises across verticals successfully with emerging Technology and innovative Solutions for 12+ years. With emerging technologies like AI/ML, IoT, Wearables, AR/VR/XR, Big Data, Blockchain, etc. Since 2010, we have created success stories with our competence across several verticals such as Supply Chain, Media & Entertainment, Financial Services, Energy, Electronics, E-commerce, Healthcare / Benefits Management, MRO (Maintenance-Repair-Overhaul/Operations), and Manufacturing, etc. now as Digital Transformers.
To know more about our services and how we can help at every step of your business, contact us or visit our website.
