What is digital transformation and why does my small business need it?

What is digital transformation and why does my small business need it?

Digital transformation is an absolute must for any small-scale business, most notably to stay relevant and connect with a massive number of people. But, hold on a minute, what is digital transformation? Generally, when people talk about digital transformation, they refer to companies or organizations that traditionally used analog methods to function but have now moved to the digital world. A digital world gives businesses the advantage of storing data digitally, having digital interactions with customers, and becoming more scalable than ever before.

An Interesting Figure

What is digital transformation and why does my small business need it?

So, if we look at a company that hasn’t gone through digital transformation yet, they might have customer data spread out throughout the whole company and no central point for them to actually be able to look at them and act on it. However, a company using digital means can have all its data at its disposal and, therefore, function more systematically. Axel Springer, one of the biggest media agencies in Europe, is probably the biggest success story when it comes to digital transformations.

Axel Springer used to make most of their money from selling magazines and newspapers, which is quite a traditional approach. However, when the new CEO, Matthias Dopfner, came on board, he decided to revamp the company’s structure completely. By digitally transforming Axel Springer’s business model, he successfully brought about a 75% revenue increase by digital sales and so on. Digital transformation helped them know more about their customers, understand the types of services their customers want, and therefore use digital services to match the right people with the right advertisers and services.

Similarly, for any small-scale business, a digital presence is the need of the hour. Everyone is doing it, so why should you not?

Why Should You Consider Digital Transformation?

The SMB Group conducted a survey in 2017 titled ‘U.S. Small and Medium Business Digital Transformation Study.’ They concluded that “nearly half of small and medium businesses (SMBs) surveyed said they are currently planning to engage in activities that will help them adapt and transform their businesses for a digital future.” Moreover, out of the companies that participated in the survey, 75% agreed that digital tech had an immense impact on how they went about their businesses.

What is digital transformation and why does my small business need it?

That being said, let’s look at the benefits of digital transformation in brief:

  1. Digital transformation helps with accuracy.It is efficient and time-saving.Saves moneyEffective in creating an overall brand voice.It helps in reaching a large number of people.

There has been significant growth in many businesses because they decided to make an informed decision of going the digital route. To wrap it up, digital transformation may look overwhelming for small-scale industries, but it has unparalleled benefits when it comes to prioritizing, planning, and reaching a bigger audience.

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