Can small to medium-sized businesses define appropriate digital transformation best practices that save cost?
It is possible to build a digital transformation strategy that is realistic and considers the business goals of the organization?
How to digitally transform your business?
Well, maximum SMB owners are skeptical and doubt if digital transformation best practices can help them in minimizing the cost. However, experts at Clarion believe that it is a hefty yet worthy route that will maximize the impacts of your initiatives.
Today we are taking you on a ride that will unfold the top cost-saving digital transformation best practices for small to medium-sized businesses.
One thing we have noticed is that the idea of digital transformation differs for various business sizes.
For instance,
Large organizations believed ‘Digital Transformation is a core component of a well-defined strategy that is an ensured way to success’.
Whereas small to medium-sized businesses had a misconception that ‘Digital transformation is an intimidating undertaking for the small businesses on budget’.
Here the belief of large organizations will have our vote. Because early-stage starts up or fortune 500 companies, digital transformation, and best practices are the key to deliver rapidly and efficiently minimize excessive investments and save money on the total cost of ownership.
And whether you have just begun or aim to fine-tune your digital transformation, best practices can help you get high returns from your investment.
Why digital transformation best practices are important for SMBs?
Let’s settle on the fact that digital transformation is the only way forward to tackling modern business challenges. It is already witnessed that digitally powerful organizations have a better supply chain, marketing, and sales processes. This market is expected to reach $2.3 trillion by 2023.
A survey by the SMB group stated that the key drivers of digital transformation for SMBs are:
- Gain new customers
- Stay competitive
- Enhances productivity
- Saves cost
According to Deloitte, digitally mature small to medium-sized businesses have gained benefits like revenue growth, better customer satisfaction, employee engagement, better product quality, etc.
Also, 42% of organizations believe that digital transformation for SMBs can change the game for them. Hence, they are enhancing the performance of the digital laggards’ multi-fold.
Digital Transformation best-practices for SMBs on Budget
Digital transformation best practices can be effective yet simple. The implementation process can be simplified by choosing the best practices that will also increase the return on investment.
Here are four digital transformations best practices for SMBS,
1. Prioritize data and its accuracy
“Successful digital transformation requires data. Without it, there is no clear view of the customer, no recognition of new opportunity, and no positive control of the business,”
- Vice President, Adobe
One of the biggest challenges SMBs face is extracting valuable insights from data. Which if done in the right way can help the SMBs to understand their partner's needs, along with customer and vendor demands. And when one knows all of these, it gets easy for a business to take preventive steps to meet its ultimate goals without spending unnecessary costs.
Data accuracy by SMBs can be achieved by,
- Form a structure that eases communication and breaks down the silos between teams and departments.
- Empower and manage better the data by digitizing
- Analyze transactional, behavioral, and operational data to make informed decisions
2. Facilitate agility
Hands down, Agile is the only way to navigate through uncertainty. It is a powerful umbrella for various project management methodologies, techniques, and frameworks.
When we tell people that it is an ensured way to succeed in an uncertain environment. The first reaction is How?
Let us give you an example,
Traditional approaches like the waterfall model have a defined process where one phase needs to be completed before initiating the next phase. Everything from documents, specifications, wireframes, etc needs to be finished, reviewed, and approved.
This leads to bureaucracy and eliminates any scope of flexibility.
Agile on the other hand, is built on the principle that works in short iterations of 3-4 weeks. Each iteration involves analysis, defining, designing, testing, and launch your product with upgrades.
Agile gives you the scope to launch the latest functionalities, gather customer feedback, and improvise at every stage.
Benefits of Agile,
- Faster time to market
- Spot the risk at early stages
- Involve stakeholders
- Quick response to changes
- 60% higher revenue
3. Be prepared for potential ‘hidden costs’
Well, it is an irony but the most efficient way to achieve digital transformation within budget is by considering the possible hidden costs.
The digital transformation process might surprise you with additional areas that need accommodation in your budget.
Hence, to be ready, you can consider the following points,
- Does your data need migration from existing systems?
- Will you need to invest in compliance and security standards?
- How can you ensure team efficacy?
- How will you approach change management?
4. Seek out technology partner with SMB experience
Software projects need a large team with different expertise. Hence organizations need to invest a huge chunk of their budget in resources.
Can small businesses afford that? Unfortunately, it is neither feasible nor affordable.
But SMBs can take a detour and save all the unnecessary expenses by hiring a technology partner with SMB experience.
You can learn in detail how to seek out the technology partner with SMB experience in our detailed blog.
A dedicated technology partner analyzes your business, studies your needs, and then recommends solutions that are compatible with your existing IT infrastructure. These professionals will help you identify the areas that can build high ROI. In addition, they guide you on the right technologies too.
Bonus Tip:
All the above-mentioned digital transformation best practices are only worthy when you understand your position on the digital maturity scale. Find out yours from the following,
Skeptic
- These organizations are risk-averse
- Watch their competition thrive with Digital transformation best practices
Beginner
- Taking the small steps towards changes
- Analyzing and collecting the knowledge
Follower
- Precise strategy
- Agile
Advanced
- Top-grade Automations
- Low-cost base
- Greatly scalable
Leader
- Open to innovations
- Disruptive
So where do you stand?
No matter what stage you are on, Clarion will ensure to help you reach the highest level.
Conclusion:
Digital transformation for SMBs can look profuse. The right way to do it is by identifying priorities, starting small, taking incremental steps.
With a dedicated technology partner with SMB experience like Clarion Technologies, you will be able to appropriately scope and manage the budget most smoothly. This will help you to set up for success and receive the greatest benefits at each stage of your digital transformation journey.
