These days, the analog world that we used to live in is becoming increasingly digital. Traditional ways of doing things are migrating slowly but surely into a digital sphere.
Paper invoicing has moved online. Payments are now made over the Internet or with your smartphone rather than by paper cheque or cash. Fewer people are going to physical stores and most are switching to shopping on the web instead.
The digital world is not only transforming the society we live it, but it’s also transforming our economy. At one time, human interactions were the most important element of any business.
Think of Amazon, now one of the most successful and fastest growing businesses in history (30 per cent growth year on year since 2006) has virtually no human interactions with its customers or suppliers.
Have you ever spoken with anyone at Amazon? Do you know anyone that has?
Today, while human interactions are still important, the way in which we interact with machines is also clearly vital.
Machine/human interactions are causing changes in the way in which we work and live today.
This process of change is coined at the Digital Revolution. And, while it holds potential, it also poses challenges.
When it comes to overcoming those challenges, it is small and medium-sized enterprises that hold the key. They have the necessary agility to rethink processes and structures and to challenge the norms of business.
Breaking Down the Barriers of Business
Until recently, setting up a new business was problematic. Capital investment requirements were high. Competing with established businesses was difficult. Digital transformation has eliminated both of these issues.
Thanks to technology, small firms are able to compete against large and established organizations. Meanwhile, they don’t need to spend as much as a start-up investment.
As a result, SMEs are easier to set up than ever before and have the best possible chance of success.
New technologies offer SMEs a world of opportunity. By embracing the latest advances, small and mid-sized enterprises can move forward at a surprisingly fast pace.
In short, digital transformation services allow these smaller businesses to compete with bigger competitors in the marketplace.
The Benefits of Digital Transformation for SME's
All companies must be open to change if they’re to succeed, grow, and thrive. For SMEs, however, the benefits associated with adopting emerging technologies are enormous.
By going digital, SMEs can overcome the problems associated with low staffing numbers, pressured resources, and time and limited budgets.
Forty-six percent of decision-makers think that adopting technology allows small businesses to compete equally with larger corporations. Thirty-seven percent believe smaller businesses have an advantage over bigger competitors since they can benefit from digital innovations more quickly.
Digital transformation has made SMEs more accurate, efficient, productive, and cheaper to run.
The Benefits of Automation
Forty-two percent of medium-sized companies have acknowledged the benefits of automating time-consuming jobs. By using technology, such as AI, employees are able to focus on skilled revenue-earning tasks.
The companies can also reduce business operating costs. SMEs have also found that increased automation improves productivity and staff morale as staff members are freed from repetitive tasks.
The Advantages of The Paperless Office
When SMEs switch to a paperless office environment, they save in terms of both money and time. One study recently showed that companies in the United States are spending $8 billion every year on managing paper. By eliminating this factor from the budget, SMEs can make enormous savings. Digital data capture methods are also much more convenient.
They allow for speedier internal processes together with fewer errors in information gathering. As a result, SMEs can improve accuracy and efficiency. By adopting a mobile data solution, it’s also possible to improve collaboration and communication.
All this is excellent news for SMEs thanks to more streamlined processes. In fact, evidence has shown digital organizations are 50 percent more profitable. They also have a 19 percent higher value and generate up to 13 percent more revenue than industry peers.
The Power of AR
Experts have predicted the AR and VR (augmented and virtual reality) industries will be worth $547 billion by 2024. SMEs that embrace this technology are reaping vast rewards. There have been numerous recent examples of big-name brands using AR to their advantage.
For example, AECOM, a large-scale engineering company, is harnessing its potential worldwide by creating hologram engineering models. However, some start-ups are also recognizing the potential. Let’s take Porch, for example. This start-up in the home improvement industry has adopted an app that pairs computer vision with machine learning. The possibilities for SMEs are huge.
Digital transformation is vital for any business to stay competitive. This is especially the case for SMEs competing with major players within their industries. Businesses that delay the adoption of digital strategies and new technology will struggle to compete going forward. The British high street is a prime example.
Technological advancement projects are now cost effective, with rapid ROI opportunities in the UK for the SME due to highly attractive funding schemes, which are now available, when projects are developed using the correct relevant steps.
The iCentric Agency specialize in advising, developing and supporting digital transformation software solutions for aspiring businesses.
You can read more about us at www.icentricagency.com and more about our success stories at https://icentricagency.com/stories