- In addition to digitisation, digital transformation also helps small and medium-sized enterprises adapt to changing times by making them more efficient and competitive.
- The benefits that digital transformation brings to SMEs do not mean that there are no challenges.
Digitisation brings a number of benefits to SMEs, such as easier and faster access to information, savings in materials, freeing up physical space and greater security against possible mishaps.
A step beyond digitisation is digital transformation, which, although similar concepts, are not the same; in fact, the former could be defined as a preliminary step to undertaking the latter.
Let’s look at the relevance of digital transformation for this business segment.
The importance of digital transformation for small and medium-sized enterprises
Before continuing with the analysis of the relationship between SMEs and digital transformation, we could answer the question of what small and medium-sized enterprises are: these are businesses with fewer than 250 employees, with different types depending on size: micro-enterprises, small enterprises and medium-sized enterprises.
The relevance of digital transformation is such that some even consider it vital to their very survival.
Whether or not this statement is exaggerated, the truth is that it is of enormous importance since, as we have already mentioned, it is not just a matter of adopting new technologies, but also involves a profound change in areas as varied as the management of SMEs themselves, customer relations and the ability to access real-time information for decision-making.
This importance stems from the fact that, thanks to the evolution of new technologies that comes hand in hand with digital transformation, SMEs can increase their level of competitiveness vis-à-vis large companies by providing them with better dissemination tools, a higher level of service personalisation and a boost to innovation that runs parallel to these issues.
Likewise, the possibility of having real-time information, as mentioned above, helps them to adapt more quickly to changes, improving their understanding of customers and thus increasing customer satisfaction.
Advantages of digital transformation for SMEs
In addition to this improvement in customers’ perception of companies, there are a number of other benefits to this transformative process.
One of these is increased competitiveness, which is a clear differentiator from competitors who have not undergone digital transformation.
Similarly, the automation and optimisation of different processes can lead to a reduction in operating costs, with the resulting competitive advantage that this can bring.
We have also mentioned another characteristic, which is the necessary drive for innovation in services and products in order to achieve differentiating features over those of the competition.
On the other hand, and linked to the absence of physical barriers in the digital world, this transformation process can also be accompanied by greater scalability. Thanks to these features, the possibility of expanding into new markets can occur without the need for large investments in infrastructure.
Challenges of digital transformation in SMEs
However, these digital transformation processes in SMEs are, by their very nature, not straightforward.
In addition to a change in organisational culture, training in digital skills is also essential to adapt the workforce to these new processes.
Another challenge facing digital transformation in small and medium-sized enterprises is overcoming resistance to change, without which it cannot happen.
This process involves not only implementing new technologies in the company’s processes, but also a strategic change that affects the entire organisation.
Thus, we could summarise digital transformation in SMEs as a competitive and strategic necessity for all those who want not only to stand out in terms of relevance or efficiency, but sometimes simply to survive.
