With recurring diseases, political unrest, and depressed consumption, 2022 appears to contain very little good news. However, crises are also turning points. In the post-pandemic age, have you considered the following inquiries:
- How does your organization respond to the current challenges in the post-covid period?
- How does your organization learn and emerge stronger?
- How does your organization implement the revolution?
We are sure your answer will not be without the concept of “digital transformation.”
“The revolution is connectivity and speed. The winners will connect digital, social, and mobile with storytelling, story sharing, and the idea.”Kevin Roberts, former CEO, Saatchi & Saatchi Worldwide
The moment has come to evaluate your next digital transformation step. Despite the fact that many firms have already adopted the road of digital transformation, others still struggle with the notion. Gartner reports that, while 87% of top company leaders consider digitization a priority, only approximately 40% of organizations have scaled their digital activities.
Why Is It Essential for Mid-Size Businesses?
Compared to large organizations, medium-sized businesses typically face issues such as limited scale, inadequate risk resilience, insufficient own capital, and social financing challenges.
On the one hand, maximizing the precise measurement and control capabilities of digital technology may aid in minimizing waste and optimizing operations, hence lowering business expenses.
On the other hand, it may help businesses deal with the issues raised by their small scale and achieve flexible responses through flexible production and CRM systems in the face of an ever-changing business and production environment.
Moreover, digital transformation provides mid-size businesses with more external digital resources, enabling them to obtain more assistance and experience in collaborative research, supply chain, and business value, thereby enhancing their core competitiveness.
Digitalization Challenges for Middle-Size Companies
The road to digital transformation has not been easy. According to the European Commission, medium-sized businesses face the following challenges:
- Lack of Required Skills: For midsize businesses, managing data and integrating the business system are tough tasks. In the process of digital transformation, they must make available digital resources such as platform interfaces, data, and computing power, designed for areas such as communications, computing, data analytics, and services, which are complex and not particularly accommodating to medium-sized businesses.
- Financing Problems: `Because digital transformation requires some amount of time before it can be effective, the input-output ratio in the short term is not usually very high. Combined with the impact of the epidemic and other factors, medium-sized companies are more prone to cash flow shortages. Therefore, many enterprises still consider that the digitalization costs are much greater than the advantages that are first recognized.
- Data Security: As cybercrime increases, criminals are continuously finding new targets within businesses, which has severe repercussions. Companies often have to face identity theft, extortion, and disclosure of trade secrets during the digitization process.
Digitalization Transformation in 4PS Companies
We incorporate the 4p model to give you a better understanding of the enterprise applications of digital transformation.
- Product: digitalization benefits product development with consumer data and provides users with temporary access to resources that might be crowdsourced.
Example customer co-creation: design crowdsourcing
Example sharing economy: the rating system
- Price: digitalization offers flexible pricing strategies which can be sticky for consumers due to network effects.
Example: freemium model, which is about offering a set of basic features for free but charging a price for a set of premium features, like Spotify.
- Promotion: digital tools are used for interacting with consumers, distributing content, and generating word-of-mouth.
Examples: influencer marketing and user-generated content
- Place: digital tools have transformed the distribution channels through location, purchase, and physical experience.
Examples: Livestream eCommerce, which mimics the in-store shopping experience by showing product information combined with consumer preference, is highly interactive and playful with gamification.
Referring to your current business situation, at which stage are you in digital transformation?
- Exploration stage
- Practice stage
- Application stage
Regardless of the stage of your business, you should not wait for all the information to become evident before making a decision. And we are here to help. At Business Basecamp, we have the right tools and accountability partners to help you ensure your business is healthy and thrives now and in the future.
If you want to know more about digitalisation disruption transformation in middle-size businesses, book some time with us to tell us about your aspirations and find out how we can help you realise your goals: https://lnkd.in/duCXQ3Z
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