Most companies fail to realize that there is more to ‘Digitalization’ or ‘Digital Transformation’ than developing a product or service on the digital platform. Managing the endless amount of paper work along with a number of other company affairs is part of every business. But it is often a hectic and tedious process and as a result, the efficiency of a company gets affected. Small to Medium Enterprises (SMEs) often do not have enough in-house expertise to handle all of it and thus, it gets burdensome for companies to handle this kind of work by only few skilled employees.
In order to achieve greater operational efficiency, companies have to step into digital transformation and manage the tasks in a better fashion. Digital Transformation, here, refers to the process of shifting the entire business and its activities to the digital platforms and connecting people and machines together, thereby minimizing the gap between people and technology. Digital transformation is the process of adoption of digital technology for fulfilment of business processes. It could be bringing in new devices to connect people working remotely, creating mobile applications to facilitate better flow of internal communication and adopting the paperless policy by making use of digital solutions.
In order to survive in the competitive era, businesses have to ensure that they have a digital presence and effectively make use of the digital technology. Businesses today, irrespective of their size, are making sure that they use digital technology and fully equip the available technology for efficient functioning as well as cost reduction. Though digitalization is happening on a large scale, many SMEs today are still sceptical about taking it up. This may happen due to lack of right knowledge, fear of risks, expenses incurred on new technologies and so on.
However, there is a sea of opportunities out there in the digital world open to SMEs. It helps them compete with larger organizations as technology is very much flexible and scalable. This is highly beneficial to SMEs and their presence in the digital world can open the door for plenty of opportunities.
Another highly impressive and advantageous factor for SMEs on the digital platform is that they can adopt technology that makes tasks automated for them. With the help of Artificial Intelligence and Machine Learning, tasks that require great skills can now be easily automated and this in turn saves a lot of their costs. Also employees in SMEs do not have to work on low level work or repetitive kind of work which brings down their morale. When employees are satisfied with their work, chances are they will invest their energy and skill into the betterment of the organization over the long run.
By going paperless, SMEs can benefit by way of fewer errors and thus faster and more efficient operations are made. With digital technology, data can be entered quickly and more effectively and can be shared with the rest of the employees in the business as well. This helps in improving the quality of work and also improved communication between departments in a business. And not to mention, it saves a huge amount of time.
SMEs wanting to compete with larger organizations are quick to adopt digital transformation and they certainly grow faster than the rest. Businesses that still use traditional methodologies and techniques for their growth and development may have a hard time establishing their name and competing with larger businesses.