How Can Small Businesses Benefit From Digital Transformation?

Technology

Digital transformation has wedged nearly every body and business on Earth. For tiny and mid-size corporations, digital transformation has brought inconceivable chance to become a lot of nimble, expand, and switch the tables on abundant larger competitors. Once everything is digitized and tracked, businesses will work directly with suppliers and customers whereas gaining a lot of management over their business.

How small corporations are adapting to a digital marketplace

To understand how the digital economy is impacting corporations with fewer than 1,000 workers, SAP commissioned IDC to conduct a study.

“Thriving within the Digital Economy: How small enterprises are adapting to digital transformation.”

The research takes a rare, thorough look at how small businesses are participating in digital transformation.

In developing the study, we were particularly interested in whether these businesses are using technology as a competitive advantage over larger companies. Here’s what we learned:

  • 49.3% of decision makers believe that technology levels the playing field for small businesses versus larger corporations
  • 40.8% cite their size as an advantage over larger companies that are less able take advantage of digital innovation in a timely way

How is digital transformation going to make a difference for small businesses?

IDC study suggests that there is a clear connection between digital transformation and revenue growth. Fast-growing small firms with 10%+ annual revenue growth were significantly more likely to indicate major progress towards transformation than slower growing firms.

Take the company Living Proof, for example. This rising star in the hair-care market went from managing its business with individual spread sheets to digitizing everything including finance, human resources, supply chain, and production. Not only did this move make it easier to run the business, but it also maximized the level of growth the company achieved. Living Proof has expanded its product portfolio by 230% and enhanced revenue by 330% as well. With that kind of growth, you would think the company would have to augment its workforce significantly. Because its processes are so simple and insightful, Living Proof only needed to hire 30 additional people.

Is your business thriving in the digital economy?

It’s laborious to ignore the potential of digital transformation. Every day, we have a tendency to hear stories of how small business achieves “overnight success” by disrupting a complete business. Uber, Skype, Spotify, WhatsApp, Netflix, and Airbnb – how did they are doing it? It’s all starts with the digital transformation of the whole business model.

Are firms’ technology expectations strategic enough?

In all my years of operating with companies round the globe, we normally hear council chamber executives raise the way to improve competitive advantage:

  • “Which changes can lower operational costs?”
  • “How will we have a tendency to increase revenue?”
  • “What innovations will boost productivity therefore we are able to reach and serve a lot of customers?”

Although everyone’s intentions are sensible, clear, and precise, these queries and lots of a lot of offer executives an awfully slim read of their technology investment.

Imagine that you just are running a provision company. For this business, the main focus is on the quantity of trucks out there as a result of an even bigger fleet means that a lot of revenue that pays dividends over the long run. Something not associated with that specific figure or to the value of maintaining fleet operations is never thought-about. Therefore, this firm could miss out on opportunities to cut back prices in alternative practical areas, serve customers in a very new approach, or become a lot of competitive within the digital economy.

The same is the case for each small company. The money and resource constraints that they face daily don’t permit them to speculate fully technology suites – of that solely tiny low proportion of the whole practicality is employed. Instead, companies tend to speculate in targeted solutions that address specific functions and wishes. Get in touch with a digital agency in Dubai to transform your business digitally.

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