Digitalization is a buzz word in the business industry today, and many companies are in a rush to adopt it. As the market becomes overly competitive, businesses are under pressure to perform as fast as possible. Yet, it’s essential to understand that each venture transforms at a different pace and produces different results.
In this case, the technological revolution should be focused on advancing functional processes, boosting business models, and improving customer experience. The management of any company should work together as a team for a successful digital revolution.
Small and medium-sized enterprises can quickly achieve this since the owners are usually the managers, and the team is small. Business digitalization doesn’t mean the formation of a new business. Instead, it implies the refurbishing of an existing business to leverage current assets in new approaches. How can digitalization help small and medium companies to grow? Let’s find out.
Leveraging Digitalization to Optimize the Growth of SMEs
Digitized SMEs can expand consumer sections more rapidly than offline businesses in various ways, as we shall see below.
1. Increased Revenue
The most critical goal of any venture is revenue. Higher business growth translates to increased revenue, and businesses that have implemented digital systems usually achieve high revenue. According to past studies, small and medium enterprises that embraced technology were more profitable. The study further demonstrated that the profits of these businesses grew by 19% annually, while revenue growth for offline companies was 10%. These statistics are a clear indication that digital transformation has boosted revenue for SMEs.
2. Improved Customer Engagement
Data analytics and business intelligence have established opportunities for small and medium enterprises. Businesses can now understand customers better, and this helps them make informed decisions. Further, they can use customer intuition and intelligence to evaluate and predict their needs. This facilitates the development of products that meet customer demands. Also, it guarantees excellent delivery of suitable products at the right time and reasonable prices.
3. Elevated Operational Competence
Recent reports show that new digital technologies can cut down operational costs by between 20% and 30%. This can be achieved through enhanced labor application and increased capital. The digital revolution enables SMEs to reduce general expenditure by advancing marketing and operational costs. IT guided smart techniques and tools have improved the operational efficiency of SMEs today. These include Digital Integrated Production Planning, Information and Communication Technology, Supply Chain Solutions, Shop Floor Control, and Cloud-based ERP.
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Running a small and medium enterprise amid the growing competition can be challenging. If you’re an SME entrepreneur, Export Portal gives you a platform to discuss trade matters in real-time. Apart from interacting with other small and medium enterprise entrepreneurs, you’ll connect with a team of experts. They will help you tackle your questions professionally and recommend practical strategies to help your business succeed.