However, for many small and medium-sized business (SMB) owners, even the mere thought of it is daunting.
They don't really know what it is or how it can help their business.
So, to discuss the importance of digital transformation for SMBs, we decided to catch up with Laurie McCabe, Co-Founder and Partner at SMB Group. She firmly believes that digital transformation is the key to SMBs being more competitive in the market and better positioned for long-term growth. See what else she had to say below.
48 percent of SMBs plan to transform their businesses for a digital future, yet many don’t understand what “digital transformation for business” really is. How does it define itself at SMB Group?
Even though many SMBs are unsure of what digital transformation is, our research tells us that they are embracing a digital future. We define “digital transformation” as how businesses use digital technologies to create new or modify existing processes, practices, models, culture and customer experiences to meet changing business and market dynamics.
Simply put, it's about identifying how you need to adapt your audit directors auditors email lists business to drive customer loyalty while maintaining a competitive advantage in the digital age.
Haven't companies moved to digital for years?
Many companies have traditionally viewed technology as nothing more than a way to support what they are already doing, with the goal of doing it faster.
However, when it comes to digital transformation, companies are taking a step back and questioning whether they are actually doing the right thing in the first place.
Can you change your processes to enable better decision making, game-changing efficiencies, or a better, more personalized customer experience?
These are the questions that are repeatedly asked. The reality is that the world around us has changed rapidly.
Small businesses can no longer continue doing what they have done for the past 20 years and still achieve the same results. “Business as usual” is a thing of the past; if you are not the “disruptor,” you may be disrupted.
What are the signs that a company needs a digital transformation?
There are a number of red flags. You might not be getting the same amount of referrals or repeat business that you did in the past. Your once tried and true promotions can no longer generate strong leads. These are just a couple of examples, out of many, that could mean your business needs a rapid digital transformation. In fact, it’s usually situations like these that make you realise you don’t have great visibility into your own business data or, worse, you’ve lost touch with what your customers want and need. Many SMBs rely on a suite of applications that don’t necessarily talk to each other. This usually results in not having a decent handle on business trends, issues and opportunities.
What should small business owners think about when tackling their own digital transformations?
Every business should do an internal assessment to identify gaps, issues, and potential threats. What is your biggest problem? What is the key to your business’ survival? I am a big proponent of working with skilled consultants, partners, and (technical) vendors to chart the best paths to success. Working with an expert who has experience helping companies in the same situation can get your business moving in the right direction much more quickly and efficiently. It will also help you avoid some of those “rookie” mistakes when doing it on your own.
A common misconception among SMBs is that it is too expensive to get expert help. The truth is that there are some great low-cost resources out there. For example, many technology companies will gladly offer SMBs some advice without charging. How should SMBs approach technology-based decisions or investments when beginning a digital transformation effort?
We have cost-effective programs to help you get started with your digital transformation, such as Business Intelligence, the start of business data, Ramping Rapid Marketing and Rapid Rapid Sales . Check them out.
Collaboration is key. Don't make decisions in a vacuum. If you have 10 employees, every single one of them will be affected by the changes you make in some way. Make sure you share your suggestions and ask for their input early on so they're on board. The more involvement you get, the better the overall result will be in the end.
What are some common mistakes for SMEs approaching their own digital transformation?
Too often I've seen companies invest in different technologies that don't integrate well. While it may not seem like a problem at first, it can be difficult to change things later when you find out that certain technologies just can't work together.
SMBs need to stay focused on one thing: implementing the capabilities they need today in a way that can scale with them as they grow.
Today there are thousands of vendors creating ecosystems and platforms, designed specifically for SMBs, that make it much easier for them to add new capabilities in a highly customizable way.
For any business to be successful, information across the enterprise must be able to flow through different processes and workflows seamlessly.
Not only will this give you a clearer, more consistent view of your overall business, it will also simplify and streamline your operations so you can be more effective in everything you do.
