Why Is ‘Going Digital’ So Important For SME’s?
SMEs need to rethink their business models in order to overcome the current crisis and similar future situations.
Digitalisation transforms the way businesses bring together customers, data and processes. Small businesses that embrace digitalisation can expect to see average revenue gains of 26%, according to a recent study by Microsoft.
SMEs need to redesign their business with a focus on how to leverage mobile connectivity, data analytics, cloud computing and incorporate these tools in their business model. The digital transformation of SMEs must be integrated into all areas of the business in order to deliver value to customers and to ensure business continuity.
Digitalising could open an SME owner’s eyes to new revenue streams and improvements to current products, based on direct feedback from customers. These insights could secure a business’ longevity as it enables you to meet changing customer expectations. By staying attuned to your customer’s needs, you can increase customer satisfaction with service improvements. When it comes to transforming products and services it might be something as simple as using accounting software to automatically generate an invoice.
Increased Value and Productivity
Digitalisation and digital tools have proven they can benefit SMEs. A 2019 economic survey of Singapore’s first quarter found that firms who are adopting digital tools increased their value by 25% and their productivity by 16% on average.
When faced with changes, SMEs should embrace digital technologies and promote digitalisation. They should also learn from successful companies in M-commerce, IoT, NextGen innovation and other new business models and seek opportunities to increase their own added value in the wave of digitalisation. SMEs should also overcome the lack of resources, lack of experience in the implementation of new technologies which will allow them to become successful and reach a wider market.
Digitalisation is a unique journey for every business. For businesses that have not taken the first step, it is never too late to start. It is a continuous process of challenging the current statues as technologies keep evolving and in order for SMEs to survive, they need to incorporate this process to grow and thrive.
Take the first step on the digitisation of your processes today with LeanBPI. Speak to john for an initial consultation!