Introduction
#SMEs who formerly operated using a "physical" approach are increasingly experimenting with "digital" ways. Google Sheets are currently used by a Kirana store to keep track of inventory and manage receivables. A producer of plastic molds has digitalized his product brochures and employs Zoom to communicate with his clients. #SMEs have adjusted to the circumstances in one way or another, but they now need to approach digital transformation with a longer time horizon.
But most #SMEs are confused about where to start. how to start? Please keep reading if you are a business owner and these questions are on your mind.
5 Challenges of Digital Transformation for SMEs and How They Can Solve Them to Plan Future Growth
FOMO (Fear of missing out)
Your business does not necessarily need to go #digital just because the world is doing so. It’s a good idea to ask very specific questions. What are the chances that your product or service can be delivered digitally? How digitally savvy are your customers when using or purchasing your products online? What's more, are consumers prepared to pay for the added value that digital offers? It is worthwhile to wait if the response to any or all of these questions is "no."
Go Big or Nothing at all
Going big is a mistake. Digital transformation is an experimental exercise. One needs to try out several small things before solidifying and adopting a specific strategy. Experiment with several digital ideas, launch and collect data, and then subsequently figure out the best ones to keep and invest.
Where to start?
Not knowing where to start is a common problem. Despite the fact that business owners are completely convinced of the value of digital, there is no set structure that can instruct them on where and how to begin. Three common phases of maturity for a #digitalstrategy are as follows:
Stage 1 is where companies just sense digital as an opportunity. One can take small steps. e.g., invest in Facebook or LinkedIn advertising with a concurrent reduction in traditional advertising or make your sales support and customer connect digitally.
Stage 2 is where companies use digital to connect stakeholders in the value chain, e.g., automating a raw material ordering system to increase efficiency and reduce wastage.
Stage 3 is where companies are able to truly use digital to create new business models or new products/services. e.g., a subscription service or an e-commerce platform.
#SMEs must map their current stage in this maturity ladder and define the specific activities/resources needed for experimentation.
Start Small But Think Big
Two places are good places to start: 1) Simply boost your online visibility. For instance, do you even have a website, or how nice is it? Is the website functional enough to allow for company transactions and simple customer interaction? 2) How much money do you spend on advertising and marketing? Is it possible to enhance your current budget in digital advertising and measure whether it is delivering ROI?
Who will do digital?
Most digital initiatives fail due to the human factor rather than technology. Controlling the process is the worst sin that small business owners commit. This will only lead to disaster. Train at least two of your employees who can adapt to the new technologies you implemented already. They could act as your traveling companions. Include them in the decision-making process and give them the authority to make choices based on information and feedback from the customers.
Conclusion
For #SMEs, digital transformation is challenging. It is only possible if you are open to ideas, have the flexibility to think small and try new things, concentrate on data-related performance and ROI, and give your workers autonomy. If done correctly, it has the potential to lift your SME much above the competition.
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