What is “Digital Transformation” and how should SMEs adapt to the digital age?

 

What is “Digital Transformation” and how should SMEs adapt to the digital age?

    In the digital era where technology plays an important role in business operations. has changed rapidly Which creates a challenge for entrepreneurs, not least Digital Transformation hence the term is often mentioned. How should we as SME entrepreneurs adapt in the 4.0 era? This article has the answer.

What is Digital Transformation?

       Digital Transformation is the transformation of ideas and applying technology to business in the digital era. From laying foundations, goals, to running a business and delivering value to consumers. It is not only the operating sector that has to undergo major changes. But this includes the cultural change that organizations and personnel from all sectors. From the executives to the bottom-line employees must also be involved in adapting to this 4.0 era, to enhance the organization's ability to compete in this era of fierce competition.

 

What are the 3 ways to head towards Digital Transformation?

Changing the Customer Experience of Consumers

        When everything is driven by the word “ digital ”, so is the reach of consumers. It starts with developing the ability to analyze consumers. In addition to segmenting customers by area, age, education level, and income, it focuses on purchasing behavior, needs, interests, trends, promotions, and prices to formulate a CRM strategy to create satisfaction and incentives. Buy products according to individual preferences. Including the use of communication devices such as iPad, Tablet totabletsed to facilitate consumers such as presenting products in VDO format or making transactions via online systems, etc. Communication with consumers and Customer touchpoints is also important. important Nowadays, it is very noticeable that brands will have new online channels such as Facebook, Line, Twitter, Instagram, Application, and more for fast, fast service.

Change the way we do business

   While creating a satisfying experience for consumers in the digital age is the most visible thing. Adapting work processes to meet new technologies Build relationships with employees and create a performance management system It helps the company get many benefits. People can focus their work on creating strategy through innovation and creativity. More than the same operations and repetitive tasks, including building a working network and Knowledge sharing for personnel from various departments to exchange ideas at any time No matter where you sit in the office or work from anywhere in the world Moreover, systematic performance measurement Whether it's in production, it's good to help executives understand product insights, consumers, and needs. Making decisions based on real-time information it's not just speculation. which will help the system to work more efficiently and more responsive to the vision of the company

Changing business models in line with the digital age

        Businesses not only have to change the way they work in each sector. but must define a work plan within the company This includes transforming businesses into the digital era and Digital globalization. I must say that this is not a change. How technology is used But it is changing the way of doing business such as supermarkets like Big C starting to offer online ordering and home delivery or Garmin developing wristbands with GPS and able to track exercise results, etc. This change takes leadership, vision, and goals in what direction you want to lead your business.

Digital Transformation Business-critical SME do?

        the world has changed Today we live in an era where technology plays a very important role in our lives. can be observed from the changing behavior of consumers both shopping financial transactions Using public transportation, and more, thinking back to the past. If you want to buy something you will have to drive to the store or department store. walking shopping and pay by cash But nowadays, no matter where you are in the world, you can easily buy products. Just go to Google to search for the products you want. Then you will find that there are many products for you to choose from. online payment via credit card Then the product will arrive at the front of the house. or even financial transactions From before, if you want to transfer money to others Or request a document certifying financial status ( Statement) must go to the bank or through an ATMOnly but now it can be done easily. through applications such as K-Mobile Banking, etc. Therefore, if the business does not adapt to the times will be difficult to compete in the market if you don't change One day there will be competitors. or a new company that will take on a business role instead Moreover, product and personnel development is something that should not be overlooked and should be continued. Companies need to learn to use technology as part of their strategy.

Examples of businesses doing digital transformation successful

 American retail giant Wal-Mart has customized Software Stake, its custom platform. This includes a new search feature. And many applications, this new  E-Commerce platform is built to help retailers stay competitive. It also has launched the On ps platform Open source open for these programmers can test and switch between providers, Cloud, which is considered the Digital Transformation. big time ever  Walgreens - CVS's major drugstore competitor is no less. The organization and business processes have been modified as well. The company's mobile application has been completely redesigned. Customers can manage their medication schedule from Apple Watch, and there is also a feature that allows members to accumulate and redeem points when paying with Apple Pay.

 

Digital Transformation How do I start?

1. Redefining business processes – Digital Transformation Starting with the improvement of existing business processes, the change can be either the whole operating system or something that can be easily done, such as modifying the customer feedback channel, for example.

2. Identify key core technologies – There are now many technologies that can be applied to businesses. But that doesn't mean you have to use everything you have. So choose technology that will support your goals and business ideas. Adapting what is right for your business will make the results more efficient.

3. Build a good corporate culture to attract potential talent – implementing innovation and technology. Competent staff is required. and ready to bring ideas to real success

4. Define Roadmap – Digital Transformation Process All should be done step by step. You should test your hypothesis on a small scale. Before doing all Each step of the process should end with the identification of the Risk Mitigation Milestone, for example, the tasks that have been accomplished and demonstrated that the risks have been reduced. approval from management and confirmation with the operator is a good example

5. Set KPIs – A roadmap cannot be complete without goals. Therefore, you should set KPIs to assess the effectiveness of the program. and to use as a guide for future decisions Smart goal setting will guide you in the right course of action.

        Once you've completed all the steps, start all over again. to always adjust business strategies by market conditions You will need to constantly adjust your strategy. until we find the right technology and work process in this digital era.