As the dust beings to settle in the wake of the Covid-19 pandemic, many SMEs are facing the reality of uncertain market conditions, increasing economic instability, and a shifting business landscape.
For SMEs and startups of all shape and size ‘ especially those that are not digital-born, or that may not have the cash reserves and infrastructure of larger companies ‘ the ability to pivot, streamline and optimise as a means of reducing inefficiencies has never been so crucial. This is where digital transformation takes centre stage.
What exactly do we mean by digital transformation? In essence, digital transformation is the replacement of non-digital or manual businesses processes with digital processes. This is achieved by implementing specialist technologies that ‘digitalise’ operations, thereby optimising them and making them far more efficient. The result is that money is saved, risk is reduced, processes are streamlined and companies can work much smarter.
One real life example of an SME using automation technology is the case of the small village market synchronizing its pricing with large supermarket chains. When the supermarket removes a promotion or discount, the small market automatically offers those products at discounted prices, helping attract some of the larger chains’ customers.
Another area where digital transformation can streamline an SME’s operations is in relation to customer service. Robotic Process Automation (RPA) powered chatbots can transform how growing businesses engage with their customers by enabling customer service departments to automatically interpret customers’ voice or text input, thereby resolve issues far more quickly than humans have traditionally been able to.
There was a time when digital transformation was considered something of a luxury, or fad. Many companies also had misconceptions of what digital transformation is, fearing that robots were replacing humans and taking their jobs. Yes, digital transformation does mean some jobs become obsolete ‘ but this actually leads to more jobs, albeit of a different type, being created.
Given RPA cannot function or be configured without human intelligence, it has not yet been a source of unemployment. Rather, digital transformation methods such as RPA ensure the human staff are freed up to work on the more enjoyable tasks, or ones where human decision making and intervention is required ‘ whilst the automated technology undertakes the repetitive, mundane jobs. The technology is there to enhance, not to replace. This means a happier, better skilled and more fulfilled workforce ‘ not the redundancies many workers originally feared!
Increasingly, businesses are realising that digital transformation is a fundamental component in not just their growth strategy, but their survival strategy ‘ a realisation that has hit home in the wake of the pandemic. The reality is that those that don’t invest in digital transformation won’t just be at a competitive disadvantage; they may struggle to survive at all. SMEs operating along purely analogue lines in a digital world will quickly see themselves overtaken by the competition.
For those SMEs that are yet to embrace digital transformation, implementing a digital transformation programme may seem like a daunting task – but it needn’t be.
The first step is to understand exactly what kind of technologies and digital solutions are best tailored to your requirements. Digital transformation is not an end point to be reached, but a constantly evolving process. Over time, as a company scales, its requirements ‘ and the technologies available ‘ will change. It is an organic process, and the technological landscape always shifting. This is why it is important to see digital transformation not just as a finite set of technologies, but as a mindset and a culture, and one that everyone in the business needs to embrace.
It is also vital that at least one individual ‘ be it a CEO or CTO ‘ is understanding of the different digital transformation technologies out there. If you are a micro business or even a one-man band, that can be you! There are many excellent, accessible resources available for first-time digital transformers, which can help guide anyone unfamiliar onto the right path.
Being at the forefront of transformational technologies will ensure your SME is better future-proofed against both market instability and the competition, and will make your venture more attractive to a new generation of clients and investors. That is why now is the time for SMEs to be investing in their digital future.
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