Digital transformation is a challenge many small and medium-sized business owners and entrepreneurs must tackle. An online presence is becoming a crucial part of business models, bringing better organizational and cultural opportunities. Here’s what digitalization is and how you can transform your business online.
Throughout history, the way of doing business has undergone many transformations. In Ancient civilization, business relied on bartering. Then coin and paper money was invented, followed by cheques, bank cards and other means of payment.
Nowadays, digital banking has become essential to financial transactions. Businesses manage payments and collections electronically, with contactless-enabled phones, watches and other devices, not to mention virtual cards and management or accounting apps.
Digital transformation has allowed small and medium-sized enterprises (“SMEs”) to reap higher returns in terms of productivity, sales and savings on operating costs. Digitalization is the first step for SMEs and entrepreneurs who want to get the most out of technology.
What is digitalization?
In business, digitalization (or “digitization”) is the process of making analogue-based operations digital. It’s what enables a company to make accounting entries on a computer instead of on the pages of an old-fashioned ledger. Digitalization makes information ready for review online, no matter the time or place.
Creating a website is often the first thing that comes to mind when digitalizing a business; but that's just the beginning. A digitalized company must do whatever it can to transform its business model, chain of production, management, costs and payments. Even though this requires planning and money, it will boost savings and productivity, while attracting the right customer profiles.
How to digitalize your business
Not all businesses are the same — and some may not be able to go fully digital. Digital transformation isn’t one-size-fits-all, either. It ultimately depends on the business model and the type of product or service. Here are some basic recommendations to succeed in the digital era.
Digitalizing your business isn’t just about scanning invoices or having an online catalogue. It's about managing more tasks more efficiently with technology. As the world evolves, so will the way of doing business. Digitalization could be a good idea so that your business won’t get left behind.