Digital Transformation Challenges for Small and Midsize Businesses
The current thriving digital culture is changing everything rapidly and companies are trying to adapt as fast as they can to take advantage of the numerous benefits that come with digital transformation.
Small and medium sized businesses looking to implement digital technology however encounter a few transformation challenges on their journey and below are a couple of these challenges as presented by Melissa Burns of Digitalist Magazine and ideas on how to overcome them;
- Communication with employees
When planning to implement an ERP solution, one major mistake would be to not properly communicate your decision with your employees thus making employees think that they could lose their job as a result of the transformation. It is therefore important that proper communication among employees and management is maintained so issues such as resistance to ERP change are not experienced. If you’ve already decided on which technology you will implement, make sure you explain to your employees why the company chose this option and what it will provide for the business.
- Plan a cost-effective strategy
Planning your costs for digital transformation is very key. For this reason, not having control over your spending will basically lead to overspending your budget as costs go higher. It is therefore important to have a cost strategy because without one, the business will have to spend more money than planned and this will affect the company’s overall business results and the success of the implementation.
- Work with the right experts
Choosing a technology/implementation partner that doesn’t understand your needs and goals can lead to unexpected costs and severe damage to your business. Small and medium sized business may not have the luxury to choose the best partners hence researching is crucial to find a suitable partner company. A good partner should be able to recommend solutions that are within your company’s budget and which are compatible with your infrastructure. It is crucial that you ask your partner whether they have in the past worked with SMBs because such experience will be helpful when working with your company.
4. Collect vital data
Your company needs to collect key data that it needs to understand its customers, employees and partners in order to design products that will respond to their needs. Think about APIs and whether your business systems will need to communicate through them. Your business will need support if you want a successful implementation that allows you to move to another digital transformation project.
5. Build the right technology stack
Building your technology on a software-as-a-service (SaaS) model provides scalability and ensures security for your business thus making it harder for your competitors to compete with you. Ensure the stack you select enables flexibility thus allowing your employees to work from where they want in the way they want. This will significantly increase your team’s productivity, which leads to enormous benefits for your business.
Having a strategy is therefore key when you want to upgrade your business through digital transformation technologies. According to Melissa, as a business, you must invest your money, time and any other resource in use efficiently in a properly structured manner to gain the benefits of the digital technologies you are working on implementing as a business.
Article by Melissa Bun; Extracted from DigitalistMagazine digitalistmag.com