You take pride in your small business. You are willing to do whatever it takes to help your business succeed. Something you may not realize is that you have to be able to grow and evolve just like your business. In other words, as much as your business needs to grow and adapt, so do management and the employees.
On the other hand, you may face dilemmas when trying to keep up with the digital age. New technology can be expensive, and you may not know where you can cut some corners to save a little extra cash.
Less dining out and more eating at home can potentially save a lot of money each month. Looking into usage-based car insurance discounts can also bring your premium down and save you money for other things, like new business technology.
How can you accommodate digital transformation within your business structure?
Before you can understand how you can accommodate this into your business, you have to have a working knowledge of what digital transformation is.
What is digital transformation?
Before you can use a set definition for digital transformation, you first have to decide what the word digital means for your business. Every company sees digital in a different way. No matter how you interpret your need for digital transformation, it is imperative for every business from small to enterprise.
We live in a digital age, and businesses from small to large must optimize digital or electronic tools as well. Digital technology includes anything from small-scale software programs to high-tech artificial intelligence. Sometimes it is stressful for small-business owners to find what technology is most important to their vision.
First Rule of Digital Transformation
The first rule for digitally transforming your business is to incorporate digital technology into all areas of your business. This may mean that you have to add in new forms of technology that increase business efficiency, new business structures that rely on the cloud, or even optimize the usage of artificial intelligence.
Don’t be scared of the changes. Choose digital programs and products that can help you meet your business needs. Even though a lot of digital changes within a business structure are often not planned, it is often for survival as the business world makes constant changes.
Digital technology is quickly changing as new discoveries and inventions are found and created, and therefore your business must also change to keep up. If you refuse to use digital tools to help increase efficiency, you run the risk of your business having to shut down.
However, sometimes it can be seen as being too risky for small businesses to willingly choose to take on a digital transformation. Technology can be expensive and there is no certainty of success with it. Making a digital transformation can be beneficial, although risky, and it comes with no guarantee.
Second Rule of Digital Transformation
Digital transformation changes the way you operate your small business. It also changes how you deliver value to your customers. Think about a snake shedding its old skin. It does this because it is growing. Shedding your old technology can be much like this.
As you shed your old and outdated technologies, you make room for the newer and more efficient business structure.
The point of evolving is to increase the efficiency within your business. One way of doing this is by implementing technology solutions wherever possible.
More money gets spent trying to fix outdated systems than simply replacing them. Once you reach a point of no return with your legacy systems, the time has come for a complete upgrade. This may seem expensive initially but will actually end up saving you money in the long term.
Technology is the platform for the agility of your entire business operation. The more agile your business, the more flexibility you have in how you enable your workers. Your workers are the drive in your business, and when you give them the best tools available, your business succeeds.
Third Rule of Digital Transformation
Digital transformation can be an uncomfortable process, so the third rule of making this change is to stay focused on the new goals. As the owner of a small business, you must lead the way in having a new mindset that places digital processes as a top priority for your company.
Focusing on your goal in digital transformation is vital. If you forget what the point is, it will be easy for your employees to misunderstand or forget the goal as well.
One of the main goals of digital transformation is to help your business give your customers the best experience possible. They will be happy with the way they interact with your company, and therefore, they will be more likely to continue giving you their money and attention.
Creating products that are innovative, efficient, and exciting is an outcome of a digital transformation that easily draws in customers. Everyone likes to find new and shiny things that help their lives be easier. Typically, the happier the customer is with your company overall, the more successful your digital transformation was.
Measuring the Success of Digital Transformation
Since the term “digital transformation” has a variety of meanings, you must have specific ways to measure your success. Customer satisfaction is an easy way to determine if you’ve done a digital transformation well, especially if your customer base is made up of the younger generations.
Another easy way to determine the success of your digital transformation is to take a look at your profit and loss ratio. Initially, it may seem like the digital transformation was a loss, but carefully look at projections in several different areas to see if you will come out making more money and being more efficient than before the undertaking.
Perhaps the simplest way to measure your success is to review the goals that you made prior to the digital transformation. Did you meet those goals? Can those goals be met quickly after the technology is implemented? If the answer to those types of questions is no, you may need to do some more work on the process.
The Advantage of a Digital Transformation
Every business, small or large, must consider implementing new digital tools and technology in order to survive in today’s world. Digital transformations are taking place almost daily, which makes it necessary to use digital processes in all areas of business.
Don’t wait on making a digital transformation. It may be intimidating at first, but you will be thankful when your small business is thriving because of your willingness to take a risk and make a change.