Digital transformation is the process of how an organisation changes its core business and operating model to meet the new digital economy. It involves significant changes across all areas in the organization, from strategy to structure and technology.
The process is hard for any organization, but exponentially more difficult for small-to-medium enterprises (SMEs) that are less likely to have access to the same resources as large companies with a global reach.
The mass adoption of digital technologies has created a whole new ecosystem of services that help make doing business on the internet much simpler and easier than it used to be. These services can help transform your company’s processes and reduce costs while automating many procedures and streamlining operations.
What is the meaning of digital transformation?
The digital transformation process is a way for companies to change their core business and operating model in order to meet the new digital economy. It involves significant changes across all areas of the organization, from strategy to structure and technology. The process is hard for any company, but exponentially more difficult for small-to-medium enterprises that are less likely to have access to the same resources as large companies with a global reach.
What is an example of digital transformation?
A good example of digital transformation is Amazon. Amazon helped transform the retail industry by providing a convenient and efficient way for shoppers to find what they want online. This helped them take a huge bite out of the retail market, which is still struggling to adapt to e-commerce. The key points in this process are:
1) Digital transformation requires significant changes across all areas of an organization
2) The process is hard for any organization, but exponentially more difficult for SMEs with fewer resources
How Are Startups Helping the Digital Transformation Process of SMEs
Startups are helping SMEs overcome these challenges and provide services that support their business through innovative solutions that make barriers to entry cheaper. There are several examples, including Facebook itself that provide advanced targeting and optimizations that were previously only available to large organisations. As well, Google and Amazon (once startups) with their cloud services.
Every day smaller startups are able to give access to SMEs advanced tech solutions like CRMs, video editing, and marketing solutions. In Italy, a country famous for the large number of small-and-medium enterprises that are the vast majority of businesses, there is the startup Digitale.co that offers free tools and guides to navigate digital transformation is widely used by thousands of users in the country.
There are several examples in other countries like the US, France and Germany, and even smaller ones like Estonia where the whole government has gone through a process of digitization and its population of entrepreneurs has given birth to several unicorns like Pipedrive, Bolt, and Wise in just a few decades
What are the key elements of digital transformation?
The process of digital transformation involves a lot of moving parts, but there are some key elements that are common in most companies.
These include:
- Identifying your business goals
- Understanding your current digital capabilities
- Focusing on technology, such as web design and website building
- Utilizing cloud services like Amazon Web Services (AWS) to implement new ideas
- Working with other agencies and consultants
How do you implement a digital transformation strategy?
Digital transformation strategies vary widely depending on the industry and the needs of your business.
One thing that is certain, though, is that you need to invest in a plan and commit to making it happen.
There are many start-ups and software companies that you can work with to complete this digital transformation.
This includes strategic consulting firms, companies that develop software or hardware for your company, marketing agencies, development teams, or even freelancers willing to help you with short-term projects. In order for the process to be successful, you need to be open-minded about the possibilities of success.
You have the opportunity to take advantage of technology in ways you never thought were possible before.
In order for this process to be effective, though, you need to think ahead and plan accordingly before taking any final steps.
Make sure everything is accounted for; if there’s something left over at the end of your project, it could spell disaster.
